AQA AS Business (BUSS1) Opportunities for Evaluation

In the list below I have highlighted a series of topic areas in BUSS1 which provide good opportunities for students to build effective evaluation into their answers. Students should remember that, in all cases, the evaluation must be made in the context of the case study business, not simply generic.

Enterprise and entrepreneurs
Do the potential rewards outweigh the risks of the proposed business?
Does the entrepreneur have the personal characteristics and/or experience to succeed?
If you were an investor or bank, would you provide finance to this person / idea?

Generating and protecting business ideas
Is franchising an option? A lower risk opportunity or alternative?
Does the business idea need protection? If so, has this been done effectively?

Adding value
How distinctive is the idea and transformation process being used?
Does the added value provide a source of competitive advantage for the start-up?
Is efficient use being used of inputs (materials, labour, capital)

Market research
Has sufficient research been carried out to inform the business planning process?
Is the research reliable - what type & when?
Has the research been used appropriately?

Business planning
How seriously has the business planning process been - sufficient time and attention?
Has the business plan been tested and reviewed by someone with sufficient experience?
What advice has been taken / support received? Appropriate?

Understanding markets
Is the target market suitable for the start up? Existing competition? Size? Growth?
Has market research helped understanding of customer needs & wants in the target market?
Does the start-up understand the factors that are likely to affect demand?

Legal structure
Has the start-up taken advantage of opportunity for limited liability protection?
Is the chosen business structure appropriate for the start-up?
Could an alternative structure from the one chosen benefit the business?

Employing people
Has the start-up done all it can to minimise staff costs?
How flexible are the employment options chosen by the start-up?
Relative merits of decisions to employ permanent v temporary staff
Has appropriate use been made of consultants and advisers? Were they needed?

Business location
Was homeworking an option? If so, was it chosen?
How suitable was the choice of location if it needed to be close to customers, suppliers?
What evidence is there that the chosen location benefited or damaged the business?

Sources of finance
Was sufficient finance raised? Not too much, but not too little?
Has the choice of finance affected the amount of control entrepreneur has over the business?
Are chosen sources suitable for short and long-term needs?

Costs, revenues & profits
Was market research used effectively in estimating revenues and costs?
Effectiveness of the process for identifying likely costs?
What is the balance between fixed and variable costs? Appropriate?

Breakeven analysis
Has the entrepreneur calculated the breakeven output?
What steps have been taken to minimise fixed costs?
What evidence does the likely breakeven point provide about business viability?

Cash flow forecasting
Has a realistic cash flow forecast been prepared as part of the business plan?
What are the most likely factors which will cause cash flow problems for the business?
Are the chosen sources of finance capable of handling a cash flow problem?

Budgets
Has a suitable budgeting process been completed?
Is the business in control of its costs?

Assessing start-ups
What are the key objectives of the entrepreneur?
What are the main risks that the business will fail?
What evidence is there that the business will prove to be viable?
How effective was the start-up business planning process?