Investigating The Business Environment

16 Jun Investigating The Business Environment

Scenario

You have decided that you would like to start a business. You need to secure funding for your business idea in order to launch it, so you have organised a presentation for a group of potential investors. If they think that you have identified a business opportunity they would like to invest in, they will invite you to present your business plan at a later date.

You will research local businesses to understand the local business market and to see whether there is a gap in the market that your new business could fill. In order to do this, you will need to consider both current trends and the current business environment, and their impact on businesses.

You will need to produce a presentation summarising the local business environment and a leaflet assessing the factors that could affect the success of your start-up idea. Remember that you need to keep a list of your sources of information.

Task 1

Factors and trends affecting business

The potential investors want to know how the business environment and current trends are likely to affect your start-up business’s chances of success. You will need to research and collect information on the local and national factors which affect the business environment.

Your presentation should include information on the likely effect of the following factors on a start-up business:

local factors (e.g. competitors)
national factors (e.g. political factors).

You will need to include a section in the leaflet which explains how changes in the current business environment may impact on a start-up business.

Your leaflet should inform your audience about current trends and how they affect start-up businesses. Research and comment on your sources of information for each of the following:

social trends
technology trends
ethical trends
environmental trends.

Use examples of each trend to explain how these will impact on your start-up business.

To support your argument, you need to demonstrate how these trends have affected another start-up business. Select a business from your area that is comparable to your business idea in terms of sector and size. Then select two trends from the list above and compare their impact on the existing start-up business you have selected. To do this, you will need to identify the similarities and the differences between the impacts of these trends on the existing start-up business . This can be presented in table format.

The investors want to know whether your business idea is likely to succeed. Summarise your leaflet with an assessment of the current risks, opportunities and trends in the business environment that will affect your business idea. You should say how these factors in the business environment will affect your business. You will need to back this up with evidence from your research and show that you have used trustworthy and relevant sources of information.

Evidence you must produce for this task

Leaflet
Presentation slides
Handouts

Criteria covered by this task:

To achieve the criteria you must show that you are able to:

Unit

Criterion Reference

Outline how the business environment can impact on a start-up business.

1

2A.P1

Explain how current trends will impact on a start-up business.

1

2A.P2

Explain how changes in the current business environment are likely to impact on a start-up business.

1

2A.M1

Compare how two trends have impacted on a start-up business.

1

2A.M2

Assess the current risks, opportunities and trends in the business environment for a start-up business.

1

2A.D1

Sources of information

Textbooks

Bentley, P., Carysforth, C., Chandler-Corris, L., Glencross, K. and Nield, M. (2013), BTEC First Business Student Book, Harlow: Pearson,
978-1-44690-136-6.

Websites

www.entrepreneursforum.net

The North East Entrepreneurs’ Forum: case studies and resources focusing on entrepreneurs in the north-east.

www.data.gov.uk

The government’s open data site.

Newspapers and journals

Thurrock Gazette (Various weeks)

If you have not achieved the Level 2 criteria, your work will be assessed to determine if the following Level 1 criteria have been met.

To achieve the criteria you must show that you are able to:

Unit

Criterion reference

Identify factors of the business environment that can impact on a start-up business.

1

1A.1

Identify current trends that may impact on a start-up business.

1

1A.2