20Course Name: Business (January 2017) Summative Assessment: 1

Read the case study below and complete an analysis using the
questions that follow as subheadings.

WORD COUNT: 1500 words.

Case Study:

Experienced interior designers Jason and Amelia decide to go into business

together. Although neither of the two friends have ever worked in a business
before, they decide that the time is right for them to start a business.

They enter into a partnership, with each of them investing £2,500 into the
business. Based in London, their "product" is a home-makeover service,
modelled on the popular daytime television programmes where ordinary
households are transformed through small building work and decoration.

Revenues:

Jason and Amelia expect to get two projects per month for the first 6 months
of trading; each project will generate £5,000 of sales. Customers will be
expected to pay 25% of the price as a deposit with the balance on
completion. Each project is expected to last one month.

The main costs associated with the start-up are:

Equipment - £2,500 (month 1) and £2,500 (in month 4), a total investment of
£5,000
Marketing - £500 per month
Legal and accounting costs - £1,250 (month 1 only)
Project materials – £1,500 per project. It is assumed that suppliers will allow
Jason and Amelia 30 days to pay for these costs
Sub-contracted labour (other tradesmen) - £4,000 per month. These will be
paid in the month incurred.
Sophie & Jack will pay themselves a salary of £1,000 each per month whilst
the business is established.
Other sundry costs of £500 per month have been assumed.

You are required to complete an analysis of the above case study

using the following questions as SUBHEADINGS:
 1. Prepare a 6 month cash-flow forecast for the business – you may estimate if
any numbers are missing, but you must highlight/show your estimates.

2.
a. Explain why it might be important for Jason and Amelia to produce a
cash flow forecast.
b. Based on the forecast you have created in question 1, give Jason and
Amelia some advice about what they should do to improve it.

3. Jason and Amelia have set aside £500 per month for marketing. Using your
knowledge of the marketing mix (4Ps) give them advice on marketing their
business.

4. Jason has met a local businessman who has offered him a large consignment
of paint at a 50% discount, however the paint does not comply with building
regulations and is not allowed to be used in homes.
a. Do you think Jason should take this offer? Explain your answer.
b. Discuss other ethical issues that might affect the business.

5. Explain any other problems that you think they may have and whether you
believe that their business idea can be a success. Do you have any other
advice for them about their approach to starting a new business?

Reading list:

Clarke, P. et al., 2009. Business and Management, Oxford: Oxford University Press

Hall, D. et al., 2010. Business Studies, 4th ed. Essex: Pearson Education

Learning outcomes assessed

a) Demonstrate an understanding of the multi-disciplinary nature of

business, displaying knowledge of entrepreneurial and commercial
thinking

b) Explain business organisation and structures

c) Demonstrate knowledge and understanding of operational and

strategic problems facing business enterprise and apply creative and
innovative skills to understanding business concepts

d) Analyse and evaluate the ethical issues relevant to the business world

g) Discuss and reflect on issues related to marketing activities

 i) Demonstrate understanding of graphical and tabular information

k) Analyse and synthesise key concepts to demonstrate effective

academic writing skills, demonstrating ability to persuade and influence
in your interactions

Deadline:

Submission Dates and Times

You must submit your work on Turnitin.
Hand in your Assessment Submission
Monday 11th June 2018 by 12:00pm (noon)
Form to the ISC post box situated outside
the office.

Penalties will be applied to any work submitted late. No submissions may be

made after 24 hours – work will not be accepted or marked.

Attention –Please note:

You must do all of the following:
 Download and print Assessment Submission Form which must be submitted as a print
copy to the ISC post box. This form is available on Moodle and at the back of the
Business Module handbook.

 On the front sheet of your Case Study write ‘BUSINESS STUDIES SUMMATIVE ASSESSMENT
1: CASE STUDY’. Also on this front sheet, include your candidate number and the word
count (the word count should not exceed 10% above or below the required number
of words for this assignment).

 Write your candidate number on the top right corner of each page of your report.

 You must submit your report to Turnitin through Moodle. On successful submission to
Turnitin, you will receive a receipt number which must be entered on the Assessment
Submission Form which you will submit to the ISC post box.

 Make sure all quotes, summaries and paraphrases are correctly referenced as
explained in the RHI Harvard Referencing Guide. In addition, make sure a full
alphabetical bibliography is included at the end of your report, detailing all texts cited
in the body of the report. The Bibliography must follow the format laid out in the RHI
Harvard Referencing Guide.

 Avoid using Wikipedia and some other commercial websites as sources as they may
not be acceptable as evidence in your writing. If you have any doubts about what
sources are viewed as non-academic, please check with your tutor.

 Word process your work in Arial or Times Roman in size 12 font and use double-spacing.

 Make it clear where paragraphs begin and end by leaving an extra space between
paragraphs.

 Ensure that your word processor uses UK spelling and adheres to UK grammar rules