Think Business
Programme 1: Enterprises and Structures

Aims

'Think Business' consists of five TV programmes. Each programme comprises a number of short case studies describing the activities of a wide range of real-life successful Scottish organisations including a range of different forms of business from the small-scale sole trader to larger limited companies. A Scottish charity and a workers' co-operative are also represented.

The five programmes use the real case studies to focus on particular areas of interest. These areas are described in each programme's title.

Programme 1 Enterprises and Structures: uses case studies of five organisations to focus on the different forms of business organisation.

The programme aims to introduce learners to:

• what businesses do;
• the role of the entrepreneur in running a business.

Learning Outcomes

Learners will:

• understand the purpose of business in society;
• understand the different types of business organization;
• know that different types of business organisation have different objectives;
• understand the role of the entrepreneur in running and developing a business;
• know that help / advice is available for new aspiring entrepreneurs;
• identify and select relevant information from the programmes to support course work.

The programmes will be useful to support learning in Standard Grade Business Management, Intermediate 1, 2 and Higher Grade Business Management. Similar GCSE and AS /A level courses in England and Wales and Ireland could also use the programmes to enhance learning.

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Outline

Five short case studies of Scottish businesses illustrate the different types of business organisation including, in order, a sole trader, partnership, a not-for-profit charity and two limited companies, one operating nationally and one in the global market. Three of the organisations shown provide services and one produces goods and all started from an idea that the entrepreneurs were able to convert into a successful business.

0.00–5.02: in Case Study 1, Get Started, Duncan Campbell, a sole trader and the owner of DC7 Vending, describes his business and explains why he chose the sole trader form of organization. He also refers to the help he received in establishing the organization.

5.02–8.38: in Case Study 2 Find a Partner, Diane Paterson, a partner in Ecosse Cars, an organisation that customizes cars, describes the service offered and the sources of help that were received at start-up.

8.38–12.16: in Case Study 3, Not Just for Profit, Agnes Malone, Chief Executive of the Child Hospice Association Scotland illustrates the role of the charity and explains that charities have to use the same business skills as for-profit organisations.

12.16–14.55: in Case Study 4, Think Location, Kris Keegan, a director of the record company Level 7, explains how he started out using the internet to sell specialist records before expanding the business and moving into retail premises.

14.55–18.35: in Case Study 5 Get the Right Idea, the work of the company, Vis Entertainment Ltd, is described by Chris Van Der Kuyl, its chief executive. Providing computer games to fast-changing international markets depends on the skill and talent of employees in devising new and innovative products.

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Curriculum Relevance

Scotland

Standard Grade Business Management

Area of Study 1 What is Business?

1.1 What do Businesses Do?
1.2 Why do Businesses Exist?
1.3 How are Businesses Organised?

Area of Study 2 How do Businesses Develop and Perform?

2.1 How do Businesses Start?
2.2 How do Businesses Grow?
2.3 What is a Successful Business?

Intermediate 1 Business Management

Business in Society

Learning Outcome 1 Describe the nature and importance of Business Activity in Contemporary Society

Intermediate 2 Business Management

Business Enterprise

Learning Outcome 1 Explain the role of Business Enterprise in Contemporary Society

Higher Grade Business Management

Business Enterprise

Learning Outcome 1 Analyse Business Enterprise in Contemporary Society

England and Wales

GCSE Double Award in Applied Business: Investigating Business

A/AS Business Studies: Objectives and the Business Environment

Northern Ireland

GCSE Double Award in Applied Business: Investigating Business

A/AS Business Studies: Objectives and the Business Environment

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Background Information

Satisfaction of consumer wants

The satisfaction of human wants and needs is achieved by business organisations using economic resources – labour, equipment, raw materials and enterprise skills – to produce the goods and services that the consumers want. Consumers express their needs and wants by demanding (buying) certain goods and services and organisations respond by providing (supplying) these goods and services.

Role of the Entrepreneur

It is the role of the entrepreneur to identify consumer needs and wants and then set up a business that will provide the goods and services demanded by consumers. The reward to the entrepreneur will be income that is earned by the business – profit. Other organizations also exist to produce goods and services for the benefit of society and are known as Not-for-Profit organizations, eg charities (See Programme 1, Case Study 3), worker co-operatives (see Programme 5, Case Study 2).

Types of Business Organisations

Entrepreneurs will choose the type of business organisation that they wish to establish. This is the legal form of business and could be sole trader, partnership, limited company or Not-for-Profit organization, eg charity. The decision about the form to select depends on a number of factors including the degree of control the entrepreneur wishes to retain, the amount of capital that is required and the legal costs involved in setting up each type. Local authorities and national government also establish organisations to deliver public services to the population, eg education, health, defence, etc.

The nature of entrepreneurial work

An entrepreneur's working day is a busy and frantic one. As a sole trader the entrepreneur will have to make all the key decisions and often undertake many, if not all, the activities of the organisation. Partnerships are able to share the work among the owners (partners) and companies often have a number of directors who can share the workload. Entrepreneurs are usually driven by a desire to succeed, have a high level of self-confidence and commitment to their organisation and also derive a great deal of satisfaction from the enterprise that they run.

Help available to start up a business

In setting up a business there is help available from a number of different organisations. Local Authorities and National Government have agencies – enterprise companies / agencies / trusts / departments – that offer help, advice and financial support to the new and aspiring entrepreneur and organisations like the Prince's Scottish Youth Business Trust offer a great deal of practical help and financial support to young entrepreneurs wishing to develop a business idea.

Structure of organisations

The structure of business organisations can be simple in the case of the sole trade and more complex if the organisation is a large global company (multi-national). In all organisations a degree of specialisation will take place where people are assigned different jobs (roles) to undertake and so the structure of the organisation is built up. The structure becomes more complicated as the business grows and more jobs / functions have to be undertaken.

Growth of organisations

The growth of business organisations takes place when the sale of the goods and services produced increases in response to consumer demand. This often results in the organizations increasing their productive capability by taking on more staff and / or increasing their equipment. Sales will only increase if the customers are satisfied with the product / service that is being offered. It is essential that the entrepreneur is in constant touch with customers to assess their satisfaction with the goods / services provided and to identity changes that need to be made or new customer needs that the organisation can satisfy with a new / modified product or service. (See also Programme 5 Planning for Growth)

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Activities

NOTE:

Two types of activities / tasks suggested for learners have been laid out below.

• Activities / tasks based on information given in the case studies and requiring the learners to view the case studies.
• Other activities / tasks that can be done without viewing the case studies.

Also

• The activities / tasks available at Standard Grade and Intermediate 1 are often similar. Learners can use the activities / tasks at lower levels for reinforcement.

Activities and Tasks based on the Case Studies

Standard Grade Business Management

Case Studies 1, 2 and 3 (DC7 Vending, Ecosse Cars, CHAS)

1. Why do you think Duncan Campbell of DC7 Vending chose to set up as a Sole Trader?
2. State the main differences between the Sole Trader (DC7 Vending) and the Partnership (Ecosse Cars).
3. How are the aims of the Charity (CHAS) different from the aims of the other organizations?

All Case Studies

4. Identify the goods and services being provided by the different organizations.
5. List the range of jobs / activities that you saw each of the entrepreneurs doing or heard them describing.
6. What kind of skills do you think each of the presenters in the case studies needs to be effective in managing their organization?

Intermediate 1 Business Management

Case Studies 1, 2 and 3 (DC7 Vending, Ecosse Cars, CHAS)

1. Why do you think Duncan Campbell of DC7 Vending chose to set up as a Sole Trader?
2. State the main differences between the Sole Trader (DC7 Vending) and the Partnership (Ecosse Cars).
3. How are the aims of the Charity (CHAS) different from the aims of the other organizations?

All Case Studies

4. Identify the goods and services being provided by the different organizations.
5. List the range of jobs / activities that you saw each of the entrepreneurs doing or heard them describing.
6. Select evidence to suggest that any of the businesses have grown.

Intermediate 2 Business Management

All Case Studies

1. Select evidence to suggest that any of the businesses have grown.
2. Explain the factor(s) that might have caused the businesses to grow.

Higher Grade Business Management

1. Identify at least two potential external opportunities and threats for each of the businesses.
2. Describe two advantages and two problems an organization might face when it decides to sell goods / services overseas.

Other activities

Standard Grade Business Management

1. Draw a three-column table showing: in the first column a list of goods and services purchased by you in the last two days; in the second column state the name of the organization from which you purchased the goods and services; and in the third column suggest the type of organization from which you purchased them. Check this with your teacher.
2. Undertake a survey of your local shopping centre / area. List the names of the organizations in the centre / area and state the type of organization. State what you think the aims of each organization might be. Check this with your teacher.

Intermediate 1 Business Management

1. In a small group, construct four short questions to be included in a questionnaire to be used to interview the entrepreneur of a small organization in your area. You want to get details about their reasons for setting up in business and the jobs they carry out in the organization. Either conduct the interview personally, or send the questionnaire by post. Check your questions with your teacher.

Intermediate 2 Business Management

1. Find the addresses of the agencies that provide help to new businesses in your area. In small groups or as a class, write to one of them and ask them to send you information about the kind of help they provide. When you receive the information, summarize the main types of help and present these to the class.

Higher Grade Business Management

1. Select two businesses in your area and identify the good(s) or service(s) they produce. Draw up a list of what you think might be any (i) threats from the external business environment that they might face now and in the future and (ii) any opportunities in the business environment they could exploit to their benefit. Comment on how this information might or might not affect the future direction / purpose of the businesses.

Suggested Solutions

1. Often in the area of Business Management there is no one correct answer but a number of plausible solutions may exist. The solutions offered here are simply suggestions; teachers and learners may well be able to identify other plausible alternatives.
2. A number of activities involve learners in investigating local businesses, etc. In such cases, no suggested solutions can be offered.

Activities and Tasks based on the Case Studies

Standard Grade Business Management

Case Studies 1, 2 and 3 (DC7 Vending, Ecosse Cars, CHAS)

1. Because it is SIMPLE / EASY / INEXPENSIVE to set up as a Sole Trader.
2. Main differences:
   
   DC7 Vending
   No premises
   No employees
   One person making the decisions.
   
   Ecosse Cars
   Premises
   Employees
   Shared decision-making.
   
   
3. The aims of CHAS are to provide a service in personal care and to make surpluses where possible. Also there is an implied aim to expand the organization, eg the new Balloch facility. All the other organizations have Profit as their aim and also expansion.

All Case Studies

4. Goods / services provided: vending services, customising car services, respite care services, supplying records, producing computer games.
5. Jobs / activities undertaken: buying stock, attending meetings, delivering stock, managing staff, taking decisions, meeting customers, looking for new business, thinking ahead, etc.
6. Skills required: technical, organizing, planning, human / inter-personal, IT, caring, staffing, marketing, financial, etc.

Intermediate 1 Business Management

Case Studies 1, 2 and 3 (DC7 Vending, Ecosse Cars, CHAS)

1. Because it is SIMPLE / EASY / INEXPENSIVE to set up as a Sole Trader.
2. Main differences:
   
   DC7 Vending
   No premises
   No employees
   One person making the decisions.
   
   Ecosse Cars
   Premises
   Employees
   Shared decision-making.
   
   
3. The aims of CHAS are to provide a service in personal care and to make surpluses where possible. Also there is an implied aim to expand the organization, eg the new Balloch facility. All the other organizations have Profit as their aim and also expansion.

All Case Studies

4. Goods / services provided: vending services, customising car services, respite care services, suppyling records, producing computer games.
5. Jobs / activities undertaken: buying stock, attending meetings, delivering stock, managing staff, taking decisions, meeting customers, looking for new business, thinking ahead, etc.
6. Evidence of business growth:
   
   DC7 Vending
   Increase in Machines (2-40)
   More sites served.
   
   Ecosse Cars
   Increase in employees (up to 13).
   
   CHAS
   New site proposed at Balloch.
   
   Level 1 Records
   New shop opened.
   
   Vis
   New markets (US/W Europe)
   Growing profits.

Intermediate 2 Business Management

1. Evidence of business growth:
   
   DC7 Vending
   Increase in Machines (2-40)
   More sites served.
   
   Ecosse Cars
   Increase in employees (up to 13).
   
   CHAS
   New site proposed at Balloch.
   
   Level 1 Records
   New shop opened.
   
   Vis
   New markets (US/W Europe)
   Growing profits.
   
   
2. Factors that might have caused growth:
   
   DC7 Vending
   Trend towards drinking more water.
   
   Ecosse Cars
   Rising disposable income.
   
   CHAS=
   
   Growing demand for respite care.
   
   Level 1 Records
   Growing demand for specialist records.
   
   Vis Entertainment
   Growing demand for new computer games.

Higher Grade Business Management

Other Activities:

Standard Grade Business Management

1 and 2 No solution offered.

Intermediate 1 Business Management

1 No solution offered.

Intermediate 2 Business Management

1 No solution offered.

Higher Grade Business Management

1 No solution offered.

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Links

The websites of the various companies featured in the programmes offer some useful information about the workings of the companies.

This web page contains links to other websites that are not under the control of and are not maintained by Channel 4 Television. Channel 4 Television is not responsible for the content of these sites and does not necessarily endorse the material on them.

www.psybt.org.uk – Prince's Scottish Youth Business Trust
www.bized.ac.uk – offers a wide range of business education information
www.bbc.co.uk/schools/gcsebitesize/business
www.chas.org.uk
www.visentertainment.com
www.ecosse-peugeot.co.uk
www.levelonerecords.com

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© 4 Ventures 2004