ocr gcse business studies a293/01/cs production, finance and the external business environment...
TRANSCRIPT
![Page 1: OCR GCSE BUSINESS STUDIES A293/01/CS Production, Finance and the External Business Environment PRE-RELEASE CASE STUDY](https://reader036.vdocuments.site/reader036/viewer/2022081604/58727d0d1a28abc7068b58b1/html5/thumbnails/1.jpg)
OCR GCSE BUSINESS STUDIES A293/01/CS
Production, Finance and the External Business Environment PRE-RELEASE CASE STUDY
![Page 2: OCR GCSE BUSINESS STUDIES A293/01/CS Production, Finance and the External Business Environment PRE-RELEASE CASE STUDY](https://reader036.vdocuments.site/reader036/viewer/2022081604/58727d0d1a28abc7068b58b1/html5/thumbnails/2.jpg)
Section 1Introduction
![Page 3: OCR GCSE BUSINESS STUDIES A293/01/CS Production, Finance and the External Business Environment PRE-RELEASE CASE STUDY](https://reader036.vdocuments.site/reader036/viewer/2022081604/58727d0d1a28abc7068b58b1/html5/thumbnails/3.jpg)
Complete the section 1 worksheet while watching the presentation
![Page 4: OCR GCSE BUSINESS STUDIES A293/01/CS Production, Finance and the External Business Environment PRE-RELEASE CASE STUDY](https://reader036.vdocuments.site/reader036/viewer/2022081604/58727d0d1a28abc7068b58b1/html5/thumbnails/4.jpg)
Lesson objectives• To be able to understand the context of the BMF Ltd business
and the festival that it organises ever year• To be able to discuss the difference between social costs and
benefits• To be able to state criticisms of the festival• To be able to evaluate exchange rate fluctuations and the effect
on EU visitors to the festival
![Page 5: OCR GCSE BUSINESS STUDIES A293/01/CS Production, Finance and the External Business Environment PRE-RELEASE CASE STUDY](https://reader036.vdocuments.site/reader036/viewer/2022081604/58727d0d1a28abc7068b58b1/html5/thumbnails/5.jpg)
Starter• Have you ever been to a festival?
![Page 6: OCR GCSE BUSINESS STUDIES A293/01/CS Production, Finance and the External Business Environment PRE-RELEASE CASE STUDY](https://reader036.vdocuments.site/reader036/viewer/2022081604/58727d0d1a28abc7068b58b1/html5/thumbnails/6.jpg)
BOWTON MOUNTAIN FESTIVAL
![Page 7: OCR GCSE BUSINESS STUDIES A293/01/CS Production, Finance and the External Business Environment PRE-RELEASE CASE STUDY](https://reader036.vdocuments.site/reader036/viewer/2022081604/58727d0d1a28abc7068b58b1/html5/thumbnails/7.jpg)
Bowton mountain festival
• The Bowton Mountain Festival (referred to as ‘The Festival’) takes place in August each year in the town of Bowton.
• The Festival is organised by Bowton Mountain Festival Limited (BMF Ltd).
![Page 8: OCR GCSE BUSINESS STUDIES A293/01/CS Production, Finance and the External Business Environment PRE-RELEASE CASE STUDY](https://reader036.vdocuments.site/reader036/viewer/2022081604/58727d0d1a28abc7068b58b1/html5/thumbnails/8.jpg)
Fill out this part of your worksheet with the next 4 slides
![Page 9: OCR GCSE BUSINESS STUDIES A293/01/CS Production, Finance and the External Business Environment PRE-RELEASE CASE STUDY](https://reader036.vdocuments.site/reader036/viewer/2022081604/58727d0d1a28abc7068b58b1/html5/thumbnails/9.jpg)
Where is Bowton?
• Bowton is in the county of Moorshire.
• The county has long been associated with outdoor pursuit activities; its mountains, moorlands, lakes and rivers being a playground for climbers and walkers and for sailing and canoeing enthusiasts.
![Page 10: OCR GCSE BUSINESS STUDIES A293/01/CS Production, Finance and the External Business Environment PRE-RELEASE CASE STUDY](https://reader036.vdocuments.site/reader036/viewer/2022081604/58727d0d1a28abc7068b58b1/html5/thumbnails/10.jpg)
What happens at the festival?
• The Festival weekend lasts three days, from Friday morning until the closing concert on Sunday evening.
• There are lectures, exhibitions, concerts and parties, films, guided walks, fell running and mountain bike races during the festival weekend.
What do you think fell running
is?
![Page 11: OCR GCSE BUSINESS STUDIES A293/01/CS Production, Finance and the External Business Environment PRE-RELEASE CASE STUDY](https://reader036.vdocuments.site/reader036/viewer/2022081604/58727d0d1a28abc7068b58b1/html5/thumbnails/11.jpg)
Fell running
• The term “fell” is a northern expression for a hill or mountain.
• Shepherds needed to be able to cover such terrain quickly, in all weathers without becoming lost.
• In the 1800’s organised events such as the Grasmere Games began to take place where locals would race up and down such hills and thus the sport of Fell Running was born.
![Page 12: OCR GCSE BUSINESS STUDIES A293/01/CS Production, Finance and the External Business Environment PRE-RELEASE CASE STUDY](https://reader036.vdocuments.site/reader036/viewer/2022081604/58727d0d1a28abc7068b58b1/html5/thumbnails/12.jpg)
Mountain bike races
• Mountain Bike racing is a competitive sport that takes places up and down hills rather than on tarmac or a cycle track
![Page 13: OCR GCSE BUSINESS STUDIES A293/01/CS Production, Finance and the External Business Environment PRE-RELEASE CASE STUDY](https://reader036.vdocuments.site/reader036/viewer/2022081604/58727d0d1a28abc7068b58b1/html5/thumbnails/13.jpg)
SOCIAL COSTS AND BENEFITS OF THE FESTIVAL
![Page 14: OCR GCSE BUSINESS STUDIES A293/01/CS Production, Finance and the External Business Environment PRE-RELEASE CASE STUDY](https://reader036.vdocuments.site/reader036/viewer/2022081604/58727d0d1a28abc7068b58b1/html5/thumbnails/14.jpg)
Criticisms of the festival
• Last year there was criticism in the town about the number of people who were drunk and badly behaved on the streets after the nightly parties.
![Page 15: OCR GCSE BUSINESS STUDIES A293/01/CS Production, Finance and the External Business Environment PRE-RELEASE CASE STUDY](https://reader036.vdocuments.site/reader036/viewer/2022081604/58727d0d1a28abc7068b58b1/html5/thumbnails/15.jpg)
Social costs vs social benefitsof The Festival
• Social costs • Social benefits
![Page 16: OCR GCSE BUSINESS STUDIES A293/01/CS Production, Finance and the External Business Environment PRE-RELEASE CASE STUDY](https://reader036.vdocuments.site/reader036/viewer/2022081604/58727d0d1a28abc7068b58b1/html5/thumbnails/16.jpg)
Social costs vs social benefitsof The Festival
• Social costs– Cost of policing Bowton during the
festival– All the noise of the festival parties
that the locals might hear– All the increased traffic in the area– Rubbish left behind after the
festival is over
• Social benefits– More jobs in the local area will be
available during the festival– Local hotels will experience
increased visitor numbers and so may need to stake on more staff
– Multiplier effect of the festival for other local businesses such as shops, pubs, restaurants and petrol stations with the increased traffic
![Page 17: OCR GCSE BUSINESS STUDIES A293/01/CS Production, Finance and the External Business Environment PRE-RELEASE CASE STUDY](https://reader036.vdocuments.site/reader036/viewer/2022081604/58727d0d1a28abc7068b58b1/html5/thumbnails/17.jpg)
THE FESTIVAL VISITOR INFORMATION
![Page 18: OCR GCSE BUSINESS STUDIES A293/01/CS Production, Finance and the External Business Environment PRE-RELEASE CASE STUDY](https://reader036.vdocuments.site/reader036/viewer/2022081604/58727d0d1a28abc7068b58b1/html5/thumbnails/18.jpg)
![Page 19: OCR GCSE BUSINESS STUDIES A293/01/CS Production, Finance and the External Business Environment PRE-RELEASE CASE STUDY](https://reader036.vdocuments.site/reader036/viewer/2022081604/58727d0d1a28abc7068b58b1/html5/thumbnails/19.jpg)
Fill in this part of your worksheet when you have made your calculations
![Page 20: OCR GCSE BUSINESS STUDIES A293/01/CS Production, Finance and the External Business Environment PRE-RELEASE CASE STUDY](https://reader036.vdocuments.site/reader036/viewer/2022081604/58727d0d1a28abc7068b58b1/html5/thumbnails/20.jpg)
EU customers
• In 2016, over 10,000 people attended The Festival. • 20% of the visitors
came from other European countries. 1. Calculate how many
festival goers were from other European
countries
![Page 21: OCR GCSE BUSINESS STUDIES A293/01/CS Production, Finance and the External Business Environment PRE-RELEASE CASE STUDY](https://reader036.vdocuments.site/reader036/viewer/2022081604/58727d0d1a28abc7068b58b1/html5/thumbnails/21.jpg)
1) If 20% of the 10,000 visitors came from the EU then there were 2,000 people
![Page 22: OCR GCSE BUSINESS STUDIES A293/01/CS Production, Finance and the External Business Environment PRE-RELEASE CASE STUDY](https://reader036.vdocuments.site/reader036/viewer/2022081604/58727d0d1a28abc7068b58b1/html5/thumbnails/22.jpg)
Young people
• In 2016, over 10,000 people attended The Festival. • 60% of the people
attending The Festival were under 30 years of age
2) Calculate how many festival goers
were under 30 years of age
![Page 23: OCR GCSE BUSINESS STUDIES A293/01/CS Production, Finance and the External Business Environment PRE-RELEASE CASE STUDY](https://reader036.vdocuments.site/reader036/viewer/2022081604/58727d0d1a28abc7068b58b1/html5/thumbnails/23.jpg)
2) If 60% of the 10,000 visitors were under 30 then this is 6,000 people
![Page 24: OCR GCSE BUSINESS STUDIES A293/01/CS Production, Finance and the External Business Environment PRE-RELEASE CASE STUDY](https://reader036.vdocuments.site/reader036/viewer/2022081604/58727d0d1a28abc7068b58b1/html5/thumbnails/24.jpg)
Festival goer income
• In 2016, over 10,000 people attended The Festival. • 70% of all festival goers
had incomes above the EU average. 2) Calculate how
many festival goers were under 30 years of
age
![Page 25: OCR GCSE BUSINESS STUDIES A293/01/CS Production, Finance and the External Business Environment PRE-RELEASE CASE STUDY](https://reader036.vdocuments.site/reader036/viewer/2022081604/58727d0d1a28abc7068b58b1/html5/thumbnails/25.jpg)
3) If 70% of the 10,000 visitors had an income above the EU average then this is 7,000 visitors
![Page 26: OCR GCSE BUSINESS STUDIES A293/01/CS Production, Finance and the External Business Environment PRE-RELEASE CASE STUDY](https://reader036.vdocuments.site/reader036/viewer/2022081604/58727d0d1a28abc7068b58b1/html5/thumbnails/26.jpg)
THE FESTIVAL AND EXCHANGE RATES
![Page 27: OCR GCSE BUSINESS STUDIES A293/01/CS Production, Finance and the External Business Environment PRE-RELEASE CASE STUDY](https://reader036.vdocuments.site/reader036/viewer/2022081604/58727d0d1a28abc7068b58b1/html5/thumbnails/27.jpg)
Definition of exchange rates
• An exchange rate is the price of one currency in terms of another
• If you have to go to Spain on holiday – you will need to exchange your £££££ for €€€€
• £1 = €1.18*• The better the exchange rate – the more money you will have
to spend on holiday
![Page 28: OCR GCSE BUSINESS STUDIES A293/01/CS Production, Finance and the External Business Environment PRE-RELEASE CASE STUDY](https://reader036.vdocuments.site/reader036/viewer/2022081604/58727d0d1a28abc7068b58b1/html5/thumbnails/28.jpg)
Exchange rates from the case study
The number of visitors from some European Union (EU) countries is influenced to an extent by changes in the exchange rate of the pound sterling (£) against the euro (€).
What impact will exchange rate
fluctuations have on The Festival?
![Page 29: OCR GCSE BUSINESS STUDIES A293/01/CS Production, Finance and the External Business Environment PRE-RELEASE CASE STUDY](https://reader036.vdocuments.site/reader036/viewer/2022081604/58727d0d1a28abc7068b58b1/html5/thumbnails/29.jpg)
2) Exchange rates may impact The Festival in two ways:a) If the pound increases against the Eurob) If the pound decreases against the Euro
(See next two slides)
![Page 30: OCR GCSE BUSINESS STUDIES A293/01/CS Production, Finance and the External Business Environment PRE-RELEASE CASE STUDY](https://reader036.vdocuments.site/reader036/viewer/2022081604/58727d0d1a28abc7068b58b1/html5/thumbnails/30.jpg)
a) Pound increases against the euro
• A strong pound will mean it will be more expensive for EU citizens to come to the UK because their money will not buy as much
• BMF has 2,000 visitors each year from the EU to the Festival, this number may decrease if the pound is strong or increases against the Euro
• This may also mean that BMF’s revenue and profits decrease
![Page 31: OCR GCSE BUSINESS STUDIES A293/01/CS Production, Finance and the External Business Environment PRE-RELEASE CASE STUDY](https://reader036.vdocuments.site/reader036/viewer/2022081604/58727d0d1a28abc7068b58b1/html5/thumbnails/31.jpg)
b) Pound decreases against the euro
• A falling pound will mean it will be cheaper for EU citizens to come to the UK because their money will buy more
• BMF has 2,000 visitors each year from the EU to the Festival, this number may increase if the pound is weak or falls against the Euro
• This may also mean that BMF’s revenue and profits increase
![Page 32: OCR GCSE BUSINESS STUDIES A293/01/CS Production, Finance and the External Business Environment PRE-RELEASE CASE STUDY](https://reader036.vdocuments.site/reader036/viewer/2022081604/58727d0d1a28abc7068b58b1/html5/thumbnails/32.jpg)
FESTIVAL AND THE ENVIRONMENT
![Page 33: OCR GCSE BUSINESS STUDIES A293/01/CS Production, Finance and the External Business Environment PRE-RELEASE CASE STUDY](https://reader036.vdocuments.site/reader036/viewer/2022081604/58727d0d1a28abc7068b58b1/html5/thumbnails/33.jpg)
Festival theme
• The theme of The Festival this year is ‘Enjoying but protecting the environment and its people.’
• The protection of the environment is one of the core values of BMF Ltd and it has taken every opportunity in previous festivals to highlight the importance of this.
![Page 34: OCR GCSE BUSINESS STUDIES A293/01/CS Production, Finance and the External Business Environment PRE-RELEASE CASE STUDY](https://reader036.vdocuments.site/reader036/viewer/2022081604/58727d0d1a28abc7068b58b1/html5/thumbnails/34.jpg)
What kinds of environmental problems might BMF have with The Festival?
• Green policy of Glastonbury see that on a website HERE
• Cleaning up after the V festival video HERE
• Video of traffic chaos HERE
![Page 35: OCR GCSE BUSINESS STUDIES A293/01/CS Production, Finance and the External Business Environment PRE-RELEASE CASE STUDY](https://reader036.vdocuments.site/reader036/viewer/2022081604/58727d0d1a28abc7068b58b1/html5/thumbnails/35.jpg)
Complete the following part of your worksheet using the next 4 slides
![Page 36: OCR GCSE BUSINESS STUDIES A293/01/CS Production, Finance and the External Business Environment PRE-RELEASE CASE STUDY](https://reader036.vdocuments.site/reader036/viewer/2022081604/58727d0d1a28abc7068b58b1/html5/thumbnails/36.jpg)
How can BMF Ltd solve the traffic problems?
• 10,000 visitors to The Festival means lots of cars coming into Bowton
• What do you think BMF Ltd should do?
![Page 37: OCR GCSE BUSINESS STUDIES A293/01/CS Production, Finance and the External Business Environment PRE-RELEASE CASE STUDY](https://reader036.vdocuments.site/reader036/viewer/2022081604/58727d0d1a28abc7068b58b1/html5/thumbnails/37.jpg)
• 10,000 visitors will cause a huge amount of litter and waste over The Festival weekend
• What can BMF Ltd do?
How can BMF solve the litter problems?
![Page 38: OCR GCSE BUSINESS STUDIES A293/01/CS Production, Finance and the External Business Environment PRE-RELEASE CASE STUDY](https://reader036.vdocuments.site/reader036/viewer/2022081604/58727d0d1a28abc7068b58b1/html5/thumbnails/38.jpg)
• The festival has a closing concert on Sunday evening.
• There has been problems in previous years with people who were drunk and badly behaved on the streets after the nightly parties.
• What can BMF Ltd do?
How can BMF solve the noise pollution problem?
![Page 39: OCR GCSE BUSINESS STUDIES A293/01/CS Production, Finance and the External Business Environment PRE-RELEASE CASE STUDY](https://reader036.vdocuments.site/reader036/viewer/2022081604/58727d0d1a28abc7068b58b1/html5/thumbnails/39.jpg)
• The theme of The Festival this year is ‘Enjoying but protecting the environment and its people.’
• The protection of the environment is one of the core values of BMF Ltd and it has taken every opportunity in previous festivals to highlight the importance of this.
• What can BMF Ltd do?
How can BMF Ltd protect the environment?
![Page 40: OCR GCSE BUSINESS STUDIES A293/01/CS Production, Finance and the External Business Environment PRE-RELEASE CASE STUDY](https://reader036.vdocuments.site/reader036/viewer/2022081604/58727d0d1a28abc7068b58b1/html5/thumbnails/40.jpg)
SPIRIT OF ADVENTURE
![Page 41: OCR GCSE BUSINESS STUDIES A293/01/CS Production, Finance and the External Business Environment PRE-RELEASE CASE STUDY](https://reader036.vdocuments.site/reader036/viewer/2022081604/58727d0d1a28abc7068b58b1/html5/thumbnails/41.jpg)
What is the Spirit of Adventure?
• Spirit of Adventure is an independent shop in Bowton.
• It sells a range of expensive outdoor pursuits gear – clothing and specialist equipment such as climbing ropes and canoes.
![Page 42: OCR GCSE BUSINESS STUDIES A293/01/CS Production, Finance and the External Business Environment PRE-RELEASE CASE STUDY](https://reader036.vdocuments.site/reader036/viewer/2022081604/58727d0d1a28abc7068b58b1/html5/thumbnails/42.jpg)
Outdoor pursuits• The Spirit of Adventure is
the only retailer of outdoor pursuits gear in the town.
What kind of market is this?
![Page 43: OCR GCSE BUSINESS STUDIES A293/01/CS Production, Finance and the External Business Environment PRE-RELEASE CASE STUDY](https://reader036.vdocuments.site/reader036/viewer/2022081604/58727d0d1a28abc7068b58b1/html5/thumbnails/43.jpg)
1. Where does the mountain festival take place every year?2. What’s the name of the company that organises the festival
each year?3. What is the theme of the festival?4. What is the name of the outdoor pursuits business in
Bowton?5. What criticisms have there been of the festival?6. What might influence the number of EU visitors to the
festival?
![Page 44: OCR GCSE BUSINESS STUDIES A293/01/CS Production, Finance and the External Business Environment PRE-RELEASE CASE STUDY](https://reader036.vdocuments.site/reader036/viewer/2022081604/58727d0d1a28abc7068b58b1/html5/thumbnails/44.jpg)
1) Bowton2) BMF ltd3) Enjoying but protecting the environment and its people4) Spirit of Adventure5) Badly behaved drunks in the town after festival parties6) Exchange rates
![Page 45: OCR GCSE BUSINESS STUDIES A293/01/CS Production, Finance and the External Business Environment PRE-RELEASE CASE STUDY](https://reader036.vdocuments.site/reader036/viewer/2022081604/58727d0d1a28abc7068b58b1/html5/thumbnails/45.jpg)
Glossary• Outdoor pursuits; This is any leisure activities carried out
outside, for example canoeing or mountain climbing• Moorlands; Open land which is not developed in any way• Fell running; Sport of running up and down mountains or hills• Core values; Guiding principles that are at the centre of what a
business believes in, for example taking care of the community • Exchange rates; One currency valued in terms of another, for
example how many euros to the pound
![Page 46: OCR GCSE BUSINESS STUDIES A293/01/CS Production, Finance and the External Business Environment PRE-RELEASE CASE STUDY](https://reader036.vdocuments.site/reader036/viewer/2022081604/58727d0d1a28abc7068b58b1/html5/thumbnails/46.jpg)
Resources written by Sarah Hilton for revisionstation.co.uk