CAMBRIDGE INTERNATIONAL

AS LEVEL BUSINESS

Introduction

Iroda Komilova
September 9th, 2024
Office Hours

TBC in IB 217

or via email appointment

Email address: ikomilova@wiut.uz
AGENDA:

1. Ice breaking

2. Ground Rules

3. Introduction to Business (9609) AS & A level

4. AS level Exams (paper 1 & paper 2)

5. Unit 1, Chapter 1 - ENTERPRISE

Fact 1: I do speak 5 languages.

Fact 2: I have more than 5 thousand followers on my Instagram account

Fact 3: I love traveling. I’ve been in 21 countries so far.

✔ Be on time

✔ Be active and ask questions

✔ Respect your peers/tutors

✔ Be prepared for the sessions

✔ Drinks – OK, food – NO

✔ NO Social Networks, NO online games

BUSINESS (9609) AS & A LEVEL BOOKS
AS Level Business Topics (19 topics)

Unit 1: Business and its Environment (5 chapters).

Unit 2: Human Resource Management (3 chapters).

Unit 3: Marketing (4 chapters).

Unit 4: Operations Management (3 chapters).

Unit 5: Finance and Accounting (4 chapters).

AS level Exams (paper 1 & paper 2)
CAMBRIDGE INTERNATIONAL
AS LEVEL BUSINESS

Chapter 1: Enterprise

Iroda Komilova
September 9 - 14 th, 2024
WHAT DO BUSINESSES DO?
BUSINESS ACTIVITIES
• Identify the needs of customers
(customer needs change as well as business environment).
• Purchase necessary resources (for production process)
• Produce goods and services (adding value to resources)
• Deliver goods and services to customers
• Make profit
FACTORS OF PRODUCTION

The resources needed by business to produce goods/services:

FACTORS OF PRODUCTION: LAND

Includes land, and all the renewable and non-

renewable resources of nature, such as coal,
crude oil, and timber.
FACTORS OF PRODUCTION: CAPITAL GOODS

The physical goods used by industry to aid in the production of

other goods/services, such as machines and commercial
vehicles (not just finance).
FACTORS OF PRODUCTION: LABOUR

Manual and skilled labour make up the workforce of the

business.
FACTORS OF PRODUCTION: ENTERPRISE

Initiative and coordination provided by risk-taking

individuals called entrepreneurs.

Enterprise provides the managing, decision-making and

coordination roles.
THE RESOURCES THAT BUSINESSES NEED
SUMMARY OF PART 1:
PURPOSE OF BUSINESS ACTIVITY

A business is an organization that uses resources to

meet the needs of customers by providing a product or
service that they demand.
CUSTOMER vs CONSUMER

An individual or An individual who

organization that purchases purchases goods/services
goods or services from a for personal use
business
Consumer Goods vs Consumer Services

Consumer Goods: the physical and

tangible goods sold to consumers that are
not intended for resale. These include
durable consumer goods, such as cars and
washing machines, and non-durable
consumer goods, such as food, drinks and
sweets, that can be used only once.

Consumer Services: the non-tangible

products sold to consumers that are not
intended for resale. There include hotel
accommodation, insurance services and
train journeys.
CREATING VALUE
CREATING VALUE BY BUILDING A HOUSE
ADDING VALUE vs ADDED VALUE

Adding Value is increasing the difference between the cost

of bought-in inputs (materials) and the selling price of the
finished goods.

Added Value is the difference between cost of purchasing

bought-in inputs (materials) and the selling price of the
finished goods.

IT IS NOT A PROFIT !
CREATING VALUE - EXAMPLES
Jewellery shop
▪ well-designed shop-window
▪ attractive shop fittings
▪ well-dressed shop assistants
▪ beautiful boxes for jewellery

Sweet manufacturer
▪ advertising of the brand
▪ attractive packaging
▪ selling through confectionery shops
PRACTICAL ACTIVITY
Explain how the following businesses could create added
value to the goods they buy in:

a. Hotel
b. Car dealer
c. Clothing manufacturer
d. Fast food restaurant
OPPORTUNITY COST

OR

The next most desired option that is given up.

OPPORTUNITY COST
DYNAMIC BUSINESS ENVIRONMENT
DYNAMIC BUSINESS ENVIRONMENT

The dynamic business environment is a major cause of

change within businesses.

Decision-making by entrepreneurs is often focused on

responding to change.
WHY DO SOME BUSINESSES SUCCEED
AND OTHERS FAIL?
Success Factors Failure factors
Good understanding of customer needs Poor record keeping

Efficient management of operations Lack of cash

(keeps costs under control)
Flexible decision making to adapt to new Poor management
situations skills

Appropriate and sufficient sources of

finance
Local, National and International Businesses
► Local Businesses operate in small, well-defined parts of a country. Owners typically
do not aim to expand so do not make attempts to attract customers across the whole
country.
Examples: single-brand shops
► National Businesses have branches or operations across a country. They make no
attempt to establish operations in other countries or to sell internationally.
Examples: Korzinka, Safia.
► International Businesses sell products in more than one country (through agents or
online selling).
► Multinational Businesses: a business organizational that has its headquarters in
one country, but with operating branches, factories and assembly plants in other
countries.
Examples: Starbucks, Adidas, IBM, Samsung, BMW, Nike, Nestle, Walmart.
PRACTICAL EXERCISE

Identify:

2 Local businesses

2 National businesses

2 Multinational businesses

How each business may be affected by

the changes in the dynamic business
environment?
WHO IS AN ENTREPRENEUR?
ENTREPRENEUR
An individual who has the idea for a new business, starts it up
and carries most of the risks but benefits from the rewards.

✔ Identifies a need for a new product/process/service

✔ Organizes limited resources
✔ Creates a business opportunity
WHO IS AN INTRAPRENEUR?
INTRAPRENEUR

A business employee who takes direct responsibility

for turning an idea into a profitable new product or
business venture.
BENEFITS OF INTRAPRENEURSHIP

• Injecting creativity and innovation into the business.

• Developing new ways of doing business.

• Driving innovation and change within the business.

• Creating a competitive advantage.

• Encouraging original thinkers and innovators to stay in

the business.
 ENTREPRENEUR INTRAPRENEUR
Main Activity Starting up a new Developing an innovative
business product or project within an
existing business

Risk Taken by the Taken by the business

entrepreneur

Rewards To the entrepreneur To the business

CASE STUDY: Levi Roots

https://www.youtube.com/watch?v=Odx8NV6dX0Q
PRACTICAL ACTIVITY
1. Research an entrepreneur of your choice
2. Create an entrepreneur factsheet on chosen entrepreneur and
their business activities:

▪ What is the name of the entrepreneur?

▪ What business/businesses are they famous for starting?
▪ How did they start their business? Were they successful on
their first try? Have they been involved in more than one
business? Write a short background explaining their career.
▪ Have they been involved in other activities that could be good
for an economy/society?
▪ Have they faced any challenges/barriers to entrepreneurship?
What impacts did this have on them and the business?
KEY CONCEPT LINK

A new business idea might have the best available land and
labour and be well financed, but without the enthusiasm and
creativity of an entrepreneur or intrapreneur, it will almost
certainly fail.

New business ventures started by entrepreneurs or

intrapreneurs can be based either on innovative product idea
or on a new way of offering a service.
QUALITIES OF SUCCESSFUL
entrepreneurs/intrapreneurs:
Innovation. Able to identify and fill a gap in the market, attract customers in
innovative ways and promote their business as being different from others in the
market.
Commitment and self-motivation. Energy, focus, the willingness to work hard,
to be keen and to have the ambition to succeed are all essential qualities of a
successful entrepreneur.
Multi-skilled.
Leadership skills
Self-confidence and ability to bounce back – many business start-ups fail, yet
this would not discourage a true entrepreneur who would have such belief in
themselves and their business idea that they would be able to bounce back from
any setback.
Risk-taking. Often the risk they take is by investing their own savings in the new
business.
BARRIERS TO ENTREPRENEURSHIP

• Lack of a business opportunity. Identifying successful

business opportunities is one of the most important stages
in becoming an effective entrepreneur.
• Obtaining sufficient capital (finance).
• Cost of good locations.
• Competition.
• Lack of a customer base.
BUSINESS IN ACTION
Google takes intrapreneurship more seriously than most
businesses. Its ‘20% time’ encourages software engineers and other
specialist employees to interact and spend 20% of their work time
on project that interests them. Google claims that the following
products would not have been created without this intrapreneurship:
GMAIL, GOOGLE NEWS, ADSENSE and GOOGLE NOW.
'20% time’ works at Google because employees can be creative
without the usual organizational and management controls. None of
the new ideas have to be cleared with a senior manager. Good
ideas spread fast and collaboration is encouraged.

Would ‘20% time’ be effective in all businesses?

SUMMARY OF PART 2:
BENEFITS OF ENTREPRENEURSHIP
1. Employment Creation
2. Economic Growth
3. Business Survival and Growth
4. Innovation and Technological Change
5. Exports
6. Personal Development of useful skills which lead to self-actualization
and sense of real personal achievement.
7. Increased Social Cohesion. By creating jobs and career opportunities
and by setting a good example for others to follow, entrepreneurship
can help to achieve social cohesion.
 If you had to write a plan to start a
new business, what information would
you need to include?
BUSINESS PLAN

A written document that describes a business, its

objectives, its strategies, the market it is in and its
financial forecasts.
MAIN ELEMENTS OF BUSINESS PLAN:

1. Executive Summary – an overview of the new business and

its strategies.

2. Description of the business opportunity – details of the

entrepreneur’s skills and experience; nature of the product; the
target market at which the product is aimed

3. Marketing and Sales Strategy – details of why the

entrepreneur thinks customers will buy the product and how
the business will sell to them.
MAIN ELEMENTS OF BUSINESS PLAN:

4. Management team and personnel – details of the

entrepreneur’s skills and experience and the people they intend to
recruit.

5. Operations – premises to be used, production facilities, IT

system.

6. Financial forecasts – the future projections of sales, profit and

cash flow for at least one year ahead.
 BENEFITS OF A BUSINESS PLAN:
✔ Helps to obtain money from investors for start-up.

✔ Helps to identify strengths and potential weaknesses of business

proposal.

✔ Gives the owners a clear plan of action.

✔ Increases the chances of success for a business.

LIMITATIONS OF A BUSINESS PLAN

✔ Time-consuming

✔ Not flexible
CASE STUDY: Wesley’s laundry
CASE STUDY: Create a business plan

a. What the business idea is (what are you going to sell)?

b. Who is the target market (who do you hope to sell to)?
c. How are they going to add value to what you are
selling?
d. What barriers might there be to the success of their
new business idea? (what are the risks from the
external environment?)
CASE STUDY: Enterprise Terminology
Key Terms
• Customer vs Consumer
• Adding Value vs Added Value
• Branding
• Opportunity Cost
• Capital Goods
• Multinational Business
• Factors of Production
• Entrepreneur vs Intrapreneur
• Consumer Goods
• Consumer Services
• Capital Goods
• Business Plan
✔ write down two things you have learnt in the lesson
✔ join another learner to discuss his/her lists
✔ create a list of four key learning points
 Self-Evaluation Checklist:
You should be able to: Needs Almost Ready to
more work there move on
Understand that business activity uses resources
to satisfy customers’ needs
Understand that businesses aim to add value to
the resources they buy in
Understand that entrepreneurship is about taking
risks to set up new businesses
Analyse the character of successful
entrepreneurs and intrapreneurs
Analyse the benefits to an economy from
entrepreneurship
Understand the challenges and barriers faced by
entrepreneurs, including a dynamic business
environment
Analyse the main elements, benefits and
limitations of business plan.
References

► Stimpson, P. and Farquharson, A. (2023) Business for Cambridge International

AS and A Level Coursebook, Chapter 1.
► Lectures 1,2,3 slides of Shakhnoza Asadova (2022).
► The Prince’s Trust Business Plan Pack
https://assets.ctfassets.net/qq0roodynp09/2HBoHCv6yu11paF6qXzZsd/c443a
a7120411a76622f342970b23306/BUSINESS_PLAN_2015.pdf
► Business in a Box https://app.business-in-a-box.com/doc/agriculture-
services-business-plan-3-D11926