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AQA GCSE · Question 02.3 · Business in the real world

Jameel would have three months to make the 100 toys for the local toy shop.\n\nRecommend whether Jameel should create a business plan before making a decision about accepting the order. Give reasons for your recommendation.

How to approach this question

1. **Start with a clear recommendation:** "Jameel should..." or "Jameel should not...". 2. **Develop your first point:** Explain a reason FOR creating a business plan. Use evidence from Item A (e.g., "time consuming to make", "uncertain whether to create a business plan"). Explain the impact of this on Jameel. 3. **Develop your second point:** Explain another reason FOR creating a business plan (e.g., to set objectives, to secure finance). Link it to the case study. 4. **Develop a counter-argument:** Explain a reason AGAINST creating a business plan (e.g., it takes time, he needs to start "immediately"). 5. **Conclude:** Weigh up the points you have made and justify your final recommendation. Which side of the argument is stronger and why?

Full Answer

A business plan is a formal document outlining a business's goals, and the strategies for achieving them. \n\n**Arguments for creating a plan:**\n* **Reduces Risk:** It forces Jameel to analyse costs, forecast sales, and assess the profitability of the order. This helps him avoid taking on a loss-making project.\n* **Secures Finance:** If he needs a loan for materials, a bank will require a business plan.\n* **Provides Direction:** It sets clear objectives and a plan of action, helping him to manage his time and resources effectively over the three months.\n* **Identifies Problems:** The process might highlight potential issues, such as not having enough time or the right tools.\n\n**Arguments against creating a plan:**\n* **Time-Consuming:** Jameel needs to start production "immediately". Writing a plan takes time he may not have.\n* **Inflexibility:** A rigid plan might be unhelpful for a new, small-scale venture where things can change quickly.\n* **Uncertainty:** The toy shop will only pay for what sells, making revenue forecasts difficult and potentially inaccurate.\n\nA good answer will weigh these points, use the context from Item A, and make a justified final judgement.

Common mistakes

✗ Not making a clear recommendation (e.g., "he could do it or he could not").\n✗ Just listing points about business plans without applying them to Jameel's specific situation (e.g., the time pressure, the trial order).\n✗ Not providing a balanced argument that considers the other side.

Practice the full AQA GCSE Business Paper 1

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