Transcript Showing Enterprise GCSE Business 1.2

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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 brought to
the market? Why do calculated risks have
to be taken? How will planning, thinking
ahead and making connections helps
business to be successfully?
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What is enterprise?,
Thinking creatively,
What questions do entrepreneurs ask?
Invention and innovation - generating new
business ideas.
Taking a calculated risk,
Other important enterprise skills
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Appreciate that enterprise involves taking
risks, showing initiative, determination and a
willingness to undertake new ventures
Understand the difference between providing
goods or a service
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Entrepreneur – a person who owns and runs their
business and takes risks.
Enterprises – another word for business
Enterprise – a willingness by an individual or
business to take risks, show initiative and
undertake new ventures.
Risk – the chance of damage or loss occurring as
a result of making a business decision.
Venture - Start-up entity developed with the
intent of profiting financially. A business venture
may also be considered a small business.
http://www.businessdictionary.com/definition/businessventure.html#ixzz266Vp308T
Risk taking
Enterprise
Willingness
to undertake
new ventures
Skills
Showing
Initiative
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http://tutor2u.net/blog/index.php/businessstudies/comments/revision-presentationenterprise-skills
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Being enterprising has an element of risk.
There are so many things that can go wrong
when setting up a business. For example,
damage to yourself, factors that may affect
profit or other factors which may mean you
do not make the profit you expect.
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Being Enterprising involves showing initiative.
Initiative means making the first move and
making things happen.
Thinking for yourself!
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A willingness to undertake a new venture is
part of being enterprising, it may be risky!
A new venture may be a new business, a new
product or service.
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BBC Bitesize
http://www.bbc.co.uk/schools/gcsebitesize/b
usiness/aims/publicsectorrev1.shtml
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Over 70% of all the economic activity in the UK
is classified as service. This includes health
care, rubbish collection, shops, banks, fast
food restaurants and tourism.
A service is providing something for the
customer, eg food, haircut, or healthcare.
A good is providing something for the
consumer/customer that they can touch, feel
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Homework sheet – overtoyou Enterprise
Unit 8
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Understand that having creative ideas is a key
aspect to setting up a new business and
developing competitive advantage.
Appreciate that sometimes new business
ideas come about through lateral thinking.
Understand the role of deliberate creativity in
developing new business ideas.
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Thinking Creatively – creative thinking –
coming up with new and unique ideas,
Competitive advantage – and advantage so
the business can out perform competitors,
Deliberate creativity – the intentional creation
of new ideas through accepted techniques
Lateral thinking – thinking differently to
generate new ideas,
Blue skies thinking/6 thinking hats –
techniques of creative thinking.
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Many new businesses are not based on
creative thinking, they bare based on a ‘Me
Too’ approach – like franchises.
Thinking creatively means coming up with an
idea that is unique and did not exist before.
Developing a unique idea can give a business
a competitive advantage. Having competitive
advantage means that the business is better
in at least one way than any other business
with which it is in direct competition.
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Have a better product than the other
business,
Have a better method of production which
results in lower costs or better quality,
Give better customer service,
Come up with a product or service that is
unique,
Use some technology or technique that makes
you product unique.
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Deliberate Creativity – using a range of
techniques to stimulate thinking, by going
through different thought processes new
ideas emerge.
Lateral thinking – thinking of ideas that
people would not come up with during their
normal day, creating new unexpected ideas,
these include
1. Blue skies thinking
2. 6 thinking hats
http://www.debonoforschools.com/asp/six_hats.asp
Classroom Activity – Deliberate Creativity
Most breakthroughs such as the iPod come from careful analysis of a product/service available currently, then
thinking, how could it be different? On September 1st 2008 Edexcel (exam board) decided to remove all waste
paper bins from its 8-storey building. An employee had pressed for a new approach: bin the bins and instead
have recycling stations on every floor: for paper, cardboard, plastics and confidential material. That’s pretty
creative.
In this activity, your task is to think about bags of Maltesers. Then brainstorm its exact features, down to the
last possible detail (at this stage, just describe the features; identifying strengths and weaknesses can come
later). For example a packet of Maltesers:
•Comes in a small plastic bag
•Bag is flimsy, so you can see and feel the shape of the sweets
•Bag is red, with pictures of the contents
•A malteser is an airy honeycombey, melty, malty ball, covered in chocolate
•All the contents are covered in the same chocolate (white or milk)
•There are about 18 Maltesers in a small pack
•A small pack weighs 37gm
•Each Malteser is big enough to hold and eat individually, in one go
•The chocolate covering the Malteser is very milky and sweet
•Maltesers also come in larger plastic bags and also in larger boxes
Tasks
1. What other points do you think you could add to this list about Maltesers?
2. Decide on one of the points that you think gives real scope for an improved
product, e.g. ‘Big enough to hold and eat individually in one go’
3. In silence, each person in the group should come up with at least 4 ways to
do this differently, e.g. mini-Maltesers, the size of Smarties
4. Then the group should pool ideas, eventually agreeing on the single best idea
for creating a successful new chocolate product.
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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Overtou Thinking creatively
Section 9
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Rachel Owens has worked as a sales manager
for the past 10 years for a car hire company.
Her salary is reasonable but Rachel finds the
work boring. For the past 6 months she has
been thinking of setting up hew own business
making traditional sweets, biscuits and cakes.
What questions should she ask herself as she
explores and researches this change in her
working life?
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Appreciate the important questions to ask
when coming up with new business ideas
such as ‘Why?’, ‘Why not?’ and ‘What if?’.
Understanding the concept of looking beyond
the obvious, asking ‘What if?’ and judging the
value of the outcomes
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It is vitally important that future
entrepreneurs ask themselves questions.
Questions allow them to sort out issues and
explore alternatives, It helps them to see
what should stay the same and what should
change. Questions like ‘Why?’ ‘What if?’ and
‘Why not?’ are very important.
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One important question is ‘WHY?’
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Why make the change?
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Case study – in the case study the question
why make the change should be asked. The
answer is that ‘Rachel want to make the
change because she want a new challenge and
is bored with her current job.
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‘Why not’? – questions challenge the reason
not to do something.
Case study – why should Rachel NOT set up
her own business? Are there businesses that
would be better suited?
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What questions are important in setting up
and running a business. What do you want to
do? What do you want to make.
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Where will I... Make the product
What will the location be?
What type of product will I make?
How?
Where?
When?
Who for?
How will I...?
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The decision then has to be made about
whether to go ahead or not? Read on for the
case study results.
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.
 10Explain two ways in which Ivor could minimise his risks.
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Why do we ask questions before we just start
up a business?
Home work
◦ Overtou questions to be asked