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AS Applied Business. Mr. Wales. Unit 3 - Marketing. If these deadlines are not met a detention will be organised. If handing in work late is a regular occurrence your parents will be contacted. If the final unit deadlines are not met your place on the course will be jeopardised.
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AS Applied Business • Mr. Wales
If these deadlines are not met a detention will be organised. If handing in work late is a regular occurrence your parents will be contacted. If the final unit deadlines are not met your place on the course will be jeopardised. The date for unit 1’s examination will be set later in the year but is usually mid-May. We then use the last half term to begin A2
What is Marketing? “the management process involved in identifying, anticipating and satisfying consumer requirements profitably” • Products are more successful if they fulfil consumer needs. • Marketing should ensure consumer needs are met. • Marketing is a continuous process, it is ongoing, it doesn’t stop. Section A: Requires you to choose a business and analyse the market where it is placed. Section B: Then you have to conduct market research and discover what the needs of your consumers are. Section C: Using your research you devise a marketing mix/ strategy. Section D: Justify an evaluate your marketing strategy.
Business Ownership Business Ownership can be categorised by the following: • Businesses with unlimited liability • Businesses with limited liability • Other forms of business organisation
Businesses with Unlimited Liability • Unlimited liability means that the finances of the business are treated as inseparable from the finances of the business owner. • If the business owes £1,000,000, the owner owes £1,000,000 and can be forced by court to pay for it themselves. This means selling their own private houses and cars etc. • There are two types: Sole Trader, Partnership.
Sole Trader • An individual who owns and operates their own business. • There may be employees but there is only one owner who benefits financially from the business. • Despite the financial dangers involved, sole traders are the most common form of ownership adopted by UK businesses. • Builders, plumbers and many independent shopkeepers will be sole traders. • Disadvantages include little finance available, long hours of work (including difficulty of taking a holiday), difficulties of running a business with ill health.
Partnerships • Similar to sole trader but with more owners. Between 2 and about 52 • There are advantages and disadvantages of a partnership owned business. Draw up a table of list what you think they are
Businesses with limited liability • Limited liability means that the legal duty to pay debts run up by the business stay with the business. • The debt is not the owners personally. • If the company owes £1,000,000 that the company cannot pay. The courts can order the business to sell all of its assets and if that is not enough the business will then be closed. • The owner will have no personal liability for those debts.
Businesses with limited liability • Limited liability companies have to go through a legal process to become a company – process of ‘incorporation’. • 2 types of limited company: Private limited and Public limited.
Private Limited Companies • Still relatively small companies. • Owned by shareholders but the shares are not listed on the stock market. • Shares are sold with the permission of the directors. • ‘Ltd’ appears after the company’s name.
Public Limited Companies • When a private limited company expands past a share capital of £50,000 it can convert to a ‘Plc’. • This means the company will be ‘floated’ on the stock market, which allows any member of the general public to buy shares. • This gives the company access to much more money to then further invest in the company.
Other forms of Business Organisation • Co-operatives – These can be owned by the staff of the business e.g. John Lewis/ Waitrose • Not-for-profit Organisation – These include charities
Business Ownership Business Ownership can be categorised by the following: • Businesses with unlimited liability • Businesses with limited liability • Other forms of business organisation
Businesses with Unlimited Liability • Unlimited liability means that the finances of the business are treated as inseparable from the finances of the business owner. • If the business owes £1,000,000, the owner owes £1,000,000 and can be forced by court to pay for it themselves. This means selling their own private houses and cars etc. • There are two types: Sole Trader, Partnership.
Sole Trader • An individual who owns and operates their own business. • There may be employees but there is only one owner who benefits financially from the business. • Despite the financial dangers involved, sole traders are the most common form of ownership adopted by UK businesses. • Builders, plumbers and many independent shopkeepers will be sole traders. • Disadvantages include little finance available, long hours of work (including difficulty of taking a holiday), difficulties of running a business with ill health.
Partnerships • Similar to sole trader but with more owners. Between 2 and about 52. • There are advantages and disadvantages of a partnership owned business. Draw up a table of list what you think they are.
Businesses with limited liability • Limited liability means that the legal duty to pay debts run up by the business stay with the business. • The debt is not the owners personally. • If the company owes £1,000,000 that the company cannot pay. The courts can order the business to sell all of its assets and if that is not enough the business will then be closed. • The owner will have no personal liability for those debts.
Businesses with limited liability • Limited liability companies have to go through a legal process to become a company – process of ‘incorporation’. • 2 types of limited company: Private limited and Public limited.
Private Limited Companies • Still relatively small companies. • Owned by shareholders but the shares are not listed on the stock market. • Shares are sold with the permission of the directors. • ‘Ltd’ appears after the company’s name.
Public Limited Companies • When a private limited company expands past a share capital of £50,000 it can convert to a ‘Plc’. • This means the company will be ‘floated’ on the stock market, which allows any member of the general public to buy shares. • This gives the company access to much more money to then further invest in the company.
Other forms of Business Organisation • Co-operatives – These can be owned by the staff of the business e.g. John Lewis/ Waitrose. • Not-for-profit Organisation – These include charities.
Read the case study regarding Arcadia Group Limited. • The situation regarding Philip Green’s ownership of the organisation will give you a clearer understanding that business ownership isn’t as simple as the previous slides suggest. Questions to answer and then discuss at end of lesson: • Explain the reasons for Philip Green wanting to keep his businesses as private limited companies as opposed to floating on the stock market. • Examine the costs and benefits of having a diverse range of brands on the high street. • What value can a firm place on its ‘brand’? • How important is a brand to the success of a business such as those involved in high street fashion?
