Task One - research shows that more than half of new businesses failing within the first five years. Investigate three reasons why new businesses fail and what the most important measure a business could take to guarantee success
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Additional reading:
http://www.telegraph.co.uk/finance/businessclub/11174584/Half-of-UK-start-ups-fail-within-five-years.html http://www.forbes.com/sites/ericwagner/2013/09/12/five-reasons-8-out-of-10-businesses-fail/ |
More than half of new businesses don’t survive beyond five years, with the UK tax system, a lack of bank lending and the cost of running a business cited as the top reasons for failure.
Survival rates are lower than before the financial crisis, research by the British commercial insurer RSA suggests. The construction sector has been the hardest hit, with the chance of survival for five years down to just 44pc, as Government cuts hold off many projects. In the health sector the chance of start-ups surviving beyond five years is 56pc. “The UK is a great place to start a business, but survival rates are low. The recession has had an unsteadying effect on small and medium enterprises (SMEs) and we need to work hard to rebuild their confidence,” said David Swigciski, SME trading director at RSA. Once their businesses are up and running, owners are also struggling to plan for the long term. Some 61pc of the 160 business owners surveyed said they lack confidence in their ability to achieve three years’ consecutive growth. Source: Telegraph.co.uk |
Task Two - "Britains ad spend to hit £20bn per year" - Guardian. Taking this into consideration, design a marketing campaign for Yaya Milkshakes (Brentwood High Street)
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Advertising spend in the UK will reach £20bn a year by 2015, as brands continue to ramp up promotions on digital formats and traditional media companies show signs of recovering from the combined impact of recession and the rise of the internet.
The World Cup in Brazil this summer will help television, which took £4.6bn last year,report a 6.6% rise this year, according to data published by the Advertising Association and the World Advertising Research Centre. National newspaper advertising, which fell nearly 5% last year, is expected to stabilise this year and turn positive in 2015, with a near 2% increase. Magazines will continue to lose income this year, but turn positive in 2015. In digital, mobile advertising is beginning to dominate. Smartphones and tablets are expected to account for one quarter of search engine advertising this year, rising to a third next year. Of the £6.3bn spent each year on UK internet advertising, £1bn is claimed by mobile. Source: The Guardian Additional reading: http://www.theguardian.com/media/2014/apr/28/britain-advertising-spend-20bn-2015 http://www.smallbusinesscomputing.com/slideshows/10-inexpensive-ways-to-advertise-your-small-business.html |
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Task Three - create revision cards on the financial terms and calculations
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Make sure the following has been included (both the key terms and the formula where applicable):
Price Sales Revenue Costs Profit |
Total Cost
Cash Flow Forecast Net Cash Flow Overdraft Bank Loan Mortgage Grants |
Task Four - investigate the motivation methods in a local, private business
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Motivation techniques are important for any business to ensure happy and efficient employees, but depending on the size of the business, these techniques can vary significantly. Your task is to research the motivational techniques at a local business and analyse the strengths and weaknesses of each technique. Compare these techniques to a large company such as Google.
REMEMBER: Money is not the only motivating factor! Additional reading: http://www.bbc.co.uk/schools/gcsebitesize/business/people/motivationrev1.shtml http://www.bbc.co.uk/news/business-23640900 |
Task Five - “Every dissatisfied customer tells 13 people and every satisfied customer tells two” – marketingdonut.co.uk
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Sales techniques and customer service have developed within businesses over the last few decades. Select two different organisations (Apple and Tesco are recommended) and explain the customer service techniques they both use. Remember to compare the advantages and disadvantages of the customer service methods used and evaluate which business provides the most successfully customer service methods/techniques. Use statistics and evidence to support your investigation.
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