1 12 February 2022 Board Door TEACHERS DESK

1 12 February 2022 Board Door TEACHERS DESK Nice Aditya Shuyeb Yassir Brijesh Trish Ria Nasir Edmond Anthony Imran Radu Jahangir Samuel Rahat Yugesh Bonnie Simran Asil Mulki Balween Harry Mason Jack Rabbab Shamar Maruf Charlotte Lidia Joe Adding value

12 February 2022 GCSE Business Unit 1 – Topic 1 Spotting a business opportunity 2 Adding value

3 12 February 2022 Start of lesson drills 1. 2. 3. 4. 5. 6. Planner on the desk Pen/stationary available Exercise book open on the desk Date copied from the presentation 1. 1. 4 Adding Value Ready to learn Adding value

4 12 February 2022 Expectations Be in the right place, at the right time doing the right thing: Be respectful of others and allow them to learn Complete all homework tasks set and come to me if you have any problems completing it Respect all school equipment Bring the correct equipment (pens, books etc. ) to our class Act as respectable young adults like business individuals Adding value

5 12 February 2022 Learning objective To understand the need to add value to products/services Adding value

6 12 February 2022 How much would you be willing to pay for the following? Adding value

7 12 February 2022 How much would you be willing to pay for the following? Adding value

8 12 February 2022 How much would you be willing to pay for the following? Adding value

9 12 February 2022 Added Value This is the difference between the price of a product/service and the costs involved in making it. E. g. Customers pay £ 55 for an ICE watch. However it may only cost ICE £ 30 per watch to buy the plastic and metal to produce it, to cover bills, to pay employees and to advertise the watch. How much value has been added in this case? Adding value

10 12 February 2022 Your turn If it costs Evian £ 0. 25 per unit to produce and market a 500 ml bottle of water. What is the value added if they recommend a retail price of £ 0. 70? If you need to, write down your working out Adding value

11 12 February 2022 Example: Havaianas Flip Flops Scenario: Havaianas have sold 1000 pairs of flips to their online customers. Sales (1000 units sold at £ 20 each) Costs: • Raw Materials at £ 7. 50 per unit • Labour at £ 5 per unit • Other production costs at £ 2. 50 per unit Total Cost = £__? ____ 1. Added Value = Sales price per unit - Total Cost per unit ______= _______ - ______ 2. Total added value = Total sales – total costs ______= _______ - ______ Adding value

12 12 February 2022 How can a business add value? Offering Convenience and Speed Improving product design and/or product quality Improving a service Through Branding Developing a strong USP Improving packaging “A recent study on food spend in the UK reveals we spend an annual £ 30 bn on takeaways and fast food”. http: //www. theguardian. com/lifeandst yle/wordofmouth/2014/apr/01/uktakeaways-healthier-fast-foodindustry Adding value

13 12 February 2022 Adding value by convenience Adding value

14 Think On your own 12 February 2022 Pair Share Talk to your neighbour Tell the class How could you add value to one of the following items? 1. Wood 2. Beef 3. Cocoa Think about: 1. Offering convenience and speed 2. Improving product design and/or product quality 3. Improving a service 4. Through Branding 5. Developing a strong USP 6. Improving packaging Market Competition

15 12 February 2022 Adding Value to a white t-shirt by Improving product design 1. Glue the t-shirt image into your books 2. Add value to this plain white t-shirt (add logo illustrations/colour/change design if necessary) Explain the finished product you have created 3. EXTENSION: When finished state the recommended retail price (RRP) for the finished product. Give two reasons why you think Adding value customers will pay this price.