GCSE Business
Name:
1.2 Showing Business Enterprise
This topic considers the skills needed to be enterprising. How does creative thinking develop a competitive
advantage for a business? What questions do entrepreneurs ask? How can new business ideas come about
and how can they be successfully taken forward? How will planning, thinking ahead and making
connections help a business to be successful?
Learning outcomes for this unit:
1. Be able to explain what is enterprise
2. Develop skills in thinking creatively using techniques such as lateral thinking
3. Be able to identify and describe the questions that entrepreneurs ask
4. Understand the roles of invention and innovation in generating new business ideas
5. Understand and be able to explain the concept of taking a calculated risk
6. Be able to discuss other important enterprise skills
What you should know....
1. Enterprise is an ability to look at something new, in different ways and try to make it happen.
2. Risk goes with enterprise because a business idea could succeed or fail.
3. Calculated risk involves using numbers to help decide if the business is likely to succeed. There is
more chance if the ‘balance’ is in favour.
4. Mistakes could be the result of taking a risk. Mistakes need to be seen as an opportunity to learn, so
that the risk in future ventures can be reduced.
5. Initiative is a willingness to make it happen, not sitting back and waiting for it to happen.
6. Drive and determination are personal strengths that entrepreneurs need to ensure their idea
succeeds.
7. Creativity is a mind process that involves thinking of what opportunities might exist.
8. Lateral thinking is a way of looking at something in many different ways, positive and negative. It
may give a new look to an idea.
9. Questioning is a vital part of every stage of a business. Examples include Why? Why not? And
What if?
10. Opportunity is the chance to exploit a gap in the market. It could be created, or it could happen by
accident or luck.
11. Planning is essential. Planning is needed to see if a ‘great’ idea will actually work in practice.
12. Mind mapping is a way of writing down thinking. This could be related to the product or it could be
personal strengths and weaknesses. It is an open-ended analysis.
13. Connections involve carrying out analysis to see where various parts come together.
14. Invention is creating and making the new product or service.
15. Innovation is getting the invention to the right market successfully.
16. Patents, trademarks and copyright are legal ways to protect the invention from being used by other
people without permission. They help create a USP.
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What is Enterprise?
1. Draw a diagram below which summarises the 3 key enterprise skills
2. Using your class notes, write an answer for each of the questions below, remember to give an example
where appropriate.
What does Enterprise mean? (3)
What is an Entrepreneur? (3)
Explain two qualities that an Entrepreneur should have? (6)
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3. Learn these key words and their definition this week
(write the definition into the revision checklist at the back of the pack)
Entrepreneur, Enterprises, Enterprise, Risk, Goods, Services, Drive and
determination
Qualities of an Entrepreneur: Poster Task
4. Make a poster (A4) to display in the Business Studies classroom.
Design it in colour – the best will be printed and put up.
The poster should be titled: ‘the qualities of an entrepreneur’. It should contain:
-
An explanation of what an entrepreneur is, and the qualities needed to be
entrepreneurial
A case study of a famous (or not-so-famous...you choose) entrepreneur
An explanation of the qualities of this entrepreneur that you think have helped him
/ her to be successful
Your name
Go to the website for the TV show ‘Dragon’s Den’.
http://www.bbc.co.uk/programmes/b006vq92)
and / or www.startups.co.uk (click on the tab ‘entrepreneurs’ at the top right)
- Read or watch a few case studies about real-life entrepreneurs.
- You might also want to do some internet research on one or two other famous
entrepreneurs such as Karren Brady, Anita Roddick, Will King and the two men who set up
Innocent smoothies.
Teacher Feedback – Week 1 Tasks
Strength
Improve
Think about
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GCSE Business
Thinking Creatively
Having new
/ unique
ideas
Asking why
not?
Asking what
if?
Creativity
Asking
why?
Creating
competitive
advantage
Trying
things out
1. Complete the following questions on thinking creatively :-
Question
My
answer
Correct
answer
1
2
3
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2. Now try this: Thinking hats muddle
Ms Rust and Ms Glegg have muddled up the purpose of each thinking hat – sort
them out for them and assign the correct purpose to the correct hat.
Thinking hat
Draw an arrow to the correct Purpose of the thinking hat
purpose
The facts
Emotions and gut feelings
Problems and difficulties
Positive aspects
Creative thinking
“Thinking about thinking”
3. Learn these key words and their definition this week
(write the definition into the revision checklist at the back of the pack)
Competitive advantage, Deliberate creativity, Lateral thinking, Blue skies thinking,
Creative thinking, 6 thinking hats
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4. A colleague has come up with an idea for a “fizzy chocolate drink”
aimed at teenagers. Assess their idea using the 6 hats technique
Thinking hat
Assessment of the Chocolate fizzy drink concept
Teacher Feedback – Week 2 Tasks
S
I
T
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Invention and innovation – generating new business ideas
1. Learn these key words and their definition this week
(write the definition into the revision checklist at the back of the pack)
Invention, Innovation, Patent, Copyright, Trademark
http://www.youtube.com/watch?v=cz4NyqCmQs8
2. Use the URL above to watch the clip about the
inventor of the Dyson vacuum cleaner and/or use this
and internet research to answer the following
questions:
1. What is the name of the inventor of Dyson vacuum cleaners?
2.
When James Dyson was inventing a new bag for the vacuum cleaner, what did he look at for
inspiration?
He looked at
3.
How many prototypes (working model) did James build before he got the technology perfect?
PROTECTING IDEAS
1. What did James make sure he did once he had perfected the cyclone technology?
2. How does this type of protection help the Dyson Company?
It means his competitors cannot...
3. What could happen if the Dyson Company does not protect their ideas?
4. How many years does a patent last for? ______________________
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5. What do Dyson designers have to do to prove their ideas are their own work?
INNOVATION:
1. Why does the designer say that it’s important for Dyson to constantly innovate?
2. Where did James Dyson have to travel to, to get a buyer for his new vacuum cleaner?
MARKETS/ RESEARCH
1. What two things does the female Dyson employee say you have to consider (think of) when designing
for each market? ( Hint – lives and houses)
2.
a.
________________________________________________
b.
________________________________________________
What type of vacuum cleaner do Japanese consumers like? Why?
3. What type of vacuum cleaner do American consumers like? Why?
Extension Questions
1. Cost is a major consideration in the design of new technology. Why do Dyson engineers spend time
trying to get everything right during the prototype stage?
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2. In what ways does Dyson think of the environment when they are designing their products?
3. It is often said that failure is the key to success in innovation? Explain why this may be?
Teacher Feedback – Week 3 Tasks
S
I
T
Taking a calculated risk
1. Complete the sentences below:
_______________________________ is the probability of a negative event occurring.
______________________________ are the disadvantages of a course of action, including what
can go wrong.
_____________________________ are the advantages of a course of action including what can
go right.
2. Learn these key words and their definition this week
(write the definition into the revision checklist at the back of the pack)
Downsides, Upsides, Calculated risk, Mindmap
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3.
Question 1: Explain two possible upsides to Nicky’s possible new business (6)
Question 2: Explain two possible downsides to Nicky’s possible new business (6)
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Extension – complete Question 3&4 of the Over to You Case study, write your answers below:
Question 3: Why should Nicky apply the principle of calculated risk to her business
proposition (3)
Question 4: What are the most important things that Nicky now needs to do if she is
serious about setting up a business making can openers? Justify your answer (6)
Thinking point
Why do businesses started by people who have already worked in
industry have a better chance of survival than businesses started by
people with no knowledge? (When thinking consider the concept of
calculated risk)
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REFLECTION ON PROGRESS
Now that you’ve had your feedback from weeks 1-4 of topic 2, complete the table
below:
The areas of my learning in Business that I feel confident in are:
The areas of my learning where I don’t feel confident are:
I would like the following help to support my learning:
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Preparing for your Assessment Week
Using the revision checklist which follows to prepare for assessment week
Key terms
Definition
Entrepreneur
Enterprises
Enterprise
Risk
Goods
Services
Drive and
determination
Competitive
advantage
Deliberate creativity
Lateral thinking
Blue skies thinking
Thinking creatively /
creative thinking
Six thinking hats
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Invention
Innovation
Patent
Copyright
Trademark
Downside
Upside
Calculated risk
Mindmap
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Make sure you know:
1.
2.
Four
characteristics of
being enterprising
3.
4.
A good is...
The difference
between a good
and a service
A service is...
1.
Two techniques
for creative
thinking
2.
1.
Three questions 2.
that entrepreneurs
ask
3.
Invention is...
The difference
between invention Innovation is...
and innovation
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1.
Three ways to
protect a business
idea (and a
definition of each)
2.
3.
1.
Examples of what
a calculated risk
might look like on
paper
2.
3.
1.
2.
Four enterprise
skills
3.
4.
1.
Three benefits of 2.
using mindmaps in
planning
3.
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Test your understanding:
Factor
What?
Why?
How?
Enterprise
Thinking
creatively
Competitive
advantage
Lateral thinking
Deliberate
creativity
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Factor
What?
Why?
How?
Invention
Innovation
Patent
Copyright
Calculated risk
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GCSE Business
Chapter 7: What is enterprise?
1
What is meant by the term ‘entrepreneur’?
2
What is meant by the term ‘enterprise’?
3
What is the difference between goods and services?
4
List four examples of goods and four examples of services.
5
Explain why newspapers are a good but newspaper delivery is a service.
6
What is meant by the term ‘initiative’?
7
Wasim set up a DVD and games console rental service after he noticed there was no shop within 10 miles of the town in
which he lives that provided this service. Why did he show initiative?
8
What is meant by ‘taking a risk’?
9
State three risks that might be involved in setting up a car valeting business.
10 Explain two reasons why setting up as a window cleaner may be wiser for a first time entrepreneur than buying and selling
houses.
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Chapter 8: Thinking creatively
1
What is meant by the term ‘deliberate creativity’?
2
What is meant by the term ‘lateral thinking’?
3
Natalie found that leaflets advertising her pottery business did not bring in much business so she contacted local cafes to
suggest that she could provide them with free bowls, cups and plates if they would tell people about her business. Why might
this be an example of lateral thinking?
4
What is a meant by the term ‘blue skies thinking’?
5
List five features that might be written down when using blue skies thinking about a new style of jeans.
6
List the Six Thinking Hats.
7
Colm wants to set up a children’s party business in a seaside town where there are lots of older people. How could black hat
thinking help him?
8
What is meant by the term ‘competitive advantage’?
9
State four ways in which a restaurant business could have a competitive advantage over a competitor.
10 State two features of a village shop that might give it a competitive advantage over a national supermarket located on an
out of town trading estate.
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Chapter 8: Thinking creatively
1
What is meant by the term ‘deliberate creativity’?
2
What is meant by the term ‘lateral thinking’?
3
Natalie found that leaflets advertising her pottery business did not bring in much business so she contacted local cafes to
suggest that she could provide them with free bowls, cups and plates if they would tell people about her business. Why might
this be an example of lateral thinking?
4
What is a meant by the term ‘blue skies thinking’?
5
List five features that might be written down when using blue skies thinking about a new style of jeans.
6
List the Six Thinking Hats.
7
Colm wants to set up a children’s party business in a seaside town where there are lots of older people. How could black hat
thinking help him?
8
What is meant by the term ‘competitive advantage’?
9
State four ways in which a restaurant business could have a competitive advantage over a competitor.
10 State two features of a village shop that might give it a competitive advantage over a national supermarket located on an
out of town trading estate.
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Chapter 9: Questions to be asked
Ivor Khestikov has completed his engineering degree and has decided to set up his own business.
1
State one reason why he might not want to consider setting up as a butcher.
2
State one reason why he might want to open up his own amusement arcade.
3
State four resources he would need when operating an amusement arcade.
4
State one location that would be a good place to set up an amusement arcade.
5
State three ways in which he could attract customers to his business.
6
When might be the best time for him to open his business? Explain your answer.
7
List four ‘what-if’ questions that Ivor could ask.
8
State two reasons why Ivor could be successful.
9
State two reasons why Ivor’s business might fail.
10 Explain two ways in which Ivor could minimise his risks.
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Chapter 10: Invention and innovation
1
What is meant by the term ‘invention’?
2
What is meant by the term ‘innovation’?
3
What is the difference between a patent and a copyright?
4
An insurance company uses a song in its television advertisement without permission from the writers of the song. Is this a
breach of copyright, patent or trademark?
5
Are the McDonald’s two yellow arches an example of copyright, patent or trademark?
6
When Apple launched the iPod what might it have taken out to protect the technology behind it - copyright, patent or
trademark?
7
State one reason why some inventions might not become innovations.
8
State two reasons how inventions might occur.
9
Explain why the invention of a battery that lasted forever is unlikely to be innovated.
10 State three reasons why an inventor of a new computer operating system might choose to let someone else carry out the
innovation.
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Chapter 11: Taking a calculated risk
1
What is meant by the term ‘probability’?
2
What is meant by the term ‘calculated risk’?
3
What is meant by the term ‘downsides’ to a business?
4
What is meant by the term ‘upsides’ to a business?
5
State two downsides of setting up a business renting out luxury cars.
6
State two upsides of teachers setting up a ‘revision school’.
7
‘A business has a 10% chance of success.’ What does this mean?
8
State one reason why existing entrepreneurs tend to be more successful in setting up new businesses than first-time
entrepreneurs.
9
Explain why a business plan might help an entrepreneur who faces risks when setting up a new business.
10 Sherrie Damon is thinking of setting up a ladies’ store selling leather coats and handbags. Her research shows that she has an
80% chance of success. Do you think that should she go ahead?
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Chapter 12: Important enterprise skills
1
Entrepreneurs are often said to be driven. What is meant by the term ‘driven’ in business?
2
What is a mindmap?
3
‘There was a good opportunity for a new business.’ What is meant by the phrase ‘good opportunity’?
4
In a village people always had to go out to cafes and restaurants to eat. What might be one business opportunity?
5
State three examples of business opportunities in the area in which you live.
6
State one advantage to a business of effective planning.
7
‘Peter ordered more cards for his gift shop just before Christmas.’ Why is this an example of an entrepreneur planning ahead?
8
State three ideas that you might include on a mindmap of how you study.
9
State four ideas that might appear on a mindmap for a new toy product.
10 State two ways in which an entrepreneur who felt that they were weak at keeping their accounts could solve this problem.
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Revision Notes
Chapter 7: What is enterprise?
 Risk
is the chance of failure or loss. It is something that business
faces at all times and is something that every entrepreneur has to
consider when starting a new business. One of the characteristics
of entrepreneurs is that they are willing to take risks.
 Minimising
risk can be done by taking steps to plan carefully, do
plenty of research, be objective, cover problems and once set
up, by offering more than one product so if one fails another is
successful.
 Entrepreneurs
need a positive outlook, the willingness to look at
new ideas and look at how they can work – to dwell on solutions
rather than problems.
 Entrepreneurs
have good instincts – inner feelings that something
will work. This makes the risk worth taking.
 Entrepreneurs
show initiative – the determination to make things
happen rather than sitting back and doing nothing or allowing
things to take their course.
 Goods
are physical products made by businesses and used by
consumers.
Chapter 8: Thinking creatively
 Creative
thinking is a consideration that there is a better way, or a
new or different use, for something.
 Deliberate
creativity is the intentional creation of new ideas
through recognised and accepted techniques.
 Lateral
thinking is ‘thinking out of the box’, thinking around the
problem, not necessarily in sequence.
 Methods
of lateral thinking include blues skies thinking and the
use of six thinking hats.
 Blue
skies thinking is open-ended thinking, not structured, but
random ideas to bring out as many thoughts as possible. It can
lead to a solution or a new idea.
 Six
Thinking Hats examine six different ways to look at a problem.
 Competitive
advantage can be gained as a result of creative
thinking. It allows a business to get an edge on others, for
example a better way of producing a product, a better customer
service or developing a unique selling point for a product. To be
an advantage it has to be both distinctive and defensible.
 Services
are non-physical products provided by businesses and
used by the consumers.
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Chapter 9: Questions to be asked
Certain questions must be asked and answered before starting up.
Types of questions might include:
 Why
do I want to set up in business?
 Why
do I want to make a change?
 Why
not, what’s stopping me, am I scared, is it something
real?
 What
do I want from the new business, what will it give me
that I don’t have now?
 How
will I do it, do I get facts and figures together to see if it
will work?
 Where
 When
will I locate, will I get help?
is a good time to start?
 What
if I cannot get any customers, I get ill, the competition
starts up and undercuts me?
 Why
has this type of business not been set up around here
before?
 Why
not make a change and do something different?
Chapter 10: Invention and innovation
 Innovation
is bringing a new idea to the market – to take an idea and make
it commercially viable.
 Commercially
viable means that it can be produced at a cost that will
enable the business to charge customers a price they are prepared to pay
which will allow the business to make a profit.
 New
ideas can come about in different ways.
Through people’s hobbies, e.g. games.
Through a desire to try and improve an existing product, e.g. Dyson.
Through specific research to try to solve a problem or issue, e.g. the
development of new medicinal drugs.
By accident, e.g. Post-it notes.
 Research
& development helps develop new inventions by continuous
improvement
 There
is always a risk with innovation, things can go wrong, e.g. good idea
but not practical. The business may lose money it has invested into the idea
if it does not become commercially viable.
 Protection
of inventions can be made through:
Patents – given for products or production processes.
Copyright – gives the right to produce, control and copy ideas or artistic
works like books, paintings, music and so on, solely to the individual or
company that originally generated the idea. Must acknowledge if used.
Trademark – given to the name of a product or a business.
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Chapter 11: Taking a calculated risk
Risk relates to the loss or damage that can be incurred in setting
up a business. Risk is part of any new business. Risk can be
reduced e.g. by research.
 Risk
analysis involves looking at pros and cons to get a ‘balance’.
 Viability
is the outcome of risk analysis. It helps with the decision
about whether to go ahead or not.
 Calculated
risk involves putting a numerical value (or probability)
on the risk. Figures on the rewards or costs help make a
comparison with the risks.
 The
risk –reward ratio involves balancing the risks against the
possible rewards to help make a decision about whether to go
ahead.
 Downsides
are what can go wrong, e.g. not enough customers,
bad press, possible cash losses and unlimited liability (sole trader).
 Upsides
are what can go right in a business – gaining customers,
building loyalty and generating profits.
 Cost/benefit
analysis is another name for risk analysis. If the value
of the benefits is greater than the value of the costs, then it can
be worth proceeding.
Chapter 12: Important enterprise skills
 Enterprise
skills include planning, thinking ahead, seeing
opportunities and showing drive and determination.
 Seeing
opportunities involve being aware of what might work,
and comparing opportunities and deciding which one to pursue
or which has the lowest risk
 Effective
planning involves looking ahead to see potential
problems in the future to try and take account of these problems
before they arise such as , the need for cash from the first day
and maintaining/using competitive advantage.
 Thinking
ahead involves anticipating potential problems and
opportunities in the future.
 Drive
and determination involves remaining focused in periods of
setback, retaining belief, thinking positively and making crucial
business decisions before it’s too late.
 Making
connections involves the use of mindmaps, overviews,
linked ideas and blue skies thinking,
A
mindmap is a diagram that is used to record words and ideas
connected to a central word or idea. It can be used to analyse a
person or a business.
 When
mistakes are made people must learn from these so they
are not made again.
 Experienced
people who have already worked in the industry
have a better chance of survival because they can learn from
their mistakes.
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