BTEC

Unit 21: Business Enterprise Personal Business

Skills.

Supervised By :
Eng. NOOR OBADA
Prepared by :
Ahmad Zuhair AlKarmi
 TASK 1
Retailer :Someone who sells goods to a consumer.

*Types of Retail Outlets:

Independent Retailers
• One shop: usually owned by a sole trader
• Offer a personal service, convenient location,
longer opening hours

Retail Chain Stores

• Organisation with more than 10 branches
• Speciality shops (eg furniture, clothing, books)
• Some are variety chain stores (eg M&S)
• Relatively low prices, fast-moving lines,
centralised buying

Non-Profit Retailers
• Charity shops
• Profit goes to the charity

Market Trader
• Relatively low prices – consumers are attracted
because of the bargains
• Brighouse market – every Tuesday and Saturday
Supermarkets
• Large companies with large number of branches
• Sell food and non-food products
• Now sell insurance, loans, mobile phones etc

Supermarkets
• Large companies with large number of branches
• Sell food and non-food products
• Now sell insurance, loans, mobile phones etc.
 Example of a summary of an
independent trader: Czerwick’s
• Independent trader in the grocery sector –
food and drink. Family owned business,
independent trader
• One shop located in Brighouse on Commercial
Street, but they sell their products all over
the world – through mail order
• Three floors – basement with a large wine
cellar; small “mezzanine” area with beers and
lager from around the world. Ground floor
has spirits and mainly various types of cheese.
• Outside display area in front of the shop
fascia

Display shelves on the right

• Serving area on left – freshly made sandwiches and
cheeses/deli counter
• Appropriate retail channel because:
1. They keep all the profit made
2. They offer specialist food and drink to a “niche” market
3. Good location in the town centre – attracts lunchtime
customers
4. Can sell world wide through mail order and the internet
– increases profit.
 TASK 2
The Supply Chain

Retailers buy goods from suppliers and then

sell them to consumers.
Retailers charge higher prices for the goods
they sell than they pay for the goods when
they buy from the manufacturers. This is called the :“mark-up”.
Clothing retailers usually charge consumers
TWICE the price than they paid for theme

Stage 1: Growing the Raw Materials

Depending where they are located, farmers will grow

the crops which flourish the best in that climate
• Crops must be harvested and then transported to a
factory where they are processed Examples:
Corn is harvested and used to produce cereals and
cooking oil
Fruit is harvested and used to produce jelly and jams
Wheat is harvested and used to make
*How Growers Support Retailers:
Growers are essential to retailers
• Without growers, retailers would
not have any food to sell to
consumers
• Growers help the supermarket to
ensure that food is available all
year round
Stage 2: Manufacturing and Processing the Products:

These businesses change the raw materials

into a finished product
• They must order all the necessary raw
materials to make the produce
Examples
• Baked beans: beans, sauce, tin, paper
packaging
• Hovis bread: flour, water, yeast, plastic
packaging
 Raw Materials Needed for a
Tin of Heinz Baked Beans

Stage 2: How
Manufacturers Support
Retailers:

Manufacturers are essential to

retailers – they produce and package
goods which look attractive to
consumers
• Without manufacturers, retailers
would not be able to display the
products attractively
 Stage 3: Delivery to a Wholesaler
or RDC (Regional Distribution Centre)

Wholesalers buy from manufacturers, store

the products in large warehouses and then
sell to retailers
• Wholesalers “break bulk” – they receive
large orders, then open the packaging and
split it into smaller packages
• Some businesses (eg Sainsburys and Tesco)
have their own warehouses. These are called
“Regional Distribution Centres”.

How Wholesalers
and RDCs Support Retailers
Retailers can order all their goods
from one wholesaler – this saves time
• Retailers can order in bulk and
receive discounts from the wholesaler
Stage 4: Delivery to Retailers
Stage 5: Retailers display
goods on shelves
M1

• Czerwicks is an independent retailer and a

family owned business. On the other hand,
Boots is a chain store and a public limited
company.

• Czerwicks is an independent retailer,

whereas Boots is a chain store.
D1
Channel:
• Independent Retailer
• Market Retailer
• Chain Store
• Supermarket
• Non-profit Retailer
Supermarkets
• Very large retail units; usually public
limited companies
• 2 supermarkets in 1963, 400 in 1980,
over 8,000 in 2011
• Low prices, minimum service, huge car
parking, cut-price petrol
• Food and non-food goods – often over
25,000 different products
• Self service, high sales volume
• Size: 25,000-50,000 sq ft
 Benefits of being a Supermarket
• Locate outside of town centres – land is
cheaper (insert a map showing the location of
the store compared to the town centre)
• Large retail units – can sell a very wide range of
goods (show examples)
• Wide range of goods and services – potential
for huge sales (give figures for your
supermarket)
• Can purchase stock in bulk and receive
discounts (economies of scale) – customers
then benefit from lower prices – improves
customer loyalty and repeat business

Disadvantages of being a Supermarket

• Disliked by smaller retailers – can find it
difficult to gain planning permission (explain an
example)
• Very high business costs (premises; wages;
purchase of stock; delivery costs)
• Must keep all shelves stocked at all times –
logistics very important – must have excellent
stock control systems to ensure they do not
run out of stock
• Some products are perishable – must plan
carefully how much to order and display in store