Business

Part 1 

Complete the definitions for the following words followed by an example. Ensure the definition fits the content of the course. 

Part 2: Reading and Analysis 

Read the article below. 

How Netflix Changed the Entertainment Industry 

Netflix was founded in 1997 as a DVD rental company. Customers ordered DVDs online, which were delivered through the post. At the time, many consumers rented films from physical stores such as Blockbuster. 

As internet speeds improved and consumer habits changed, Netflix recognised an opportunity to move into online streaming. In 2007, the company launched its streaming service, allowing customers to watch films and television programmes instantly. This removed the need to visit stores and provided consumers with greater convenience. 

Netflix later invested billions of dollars in producing its own content, including popular shows such as Stranger Things, The Crown and Wednesday. Producing exclusive programmes allowed Netflix to differentiate itself from competitors and attract millions of subscribers around the world. 

However, this strategy has involved significant risks. Creating original content is expensive, and competition from businesses such as Disney+, Amazon Prime Video and Apple TV+ has increased. Consumers are also becoming more selective about which subscriptions they are willing to pay for because of rising living costs. 

Despite these challenges, Netflix has continued to adapt by introducing advertising-supported subscriptions, cracking down on password sharing and investing in international productions. These decisions have helped the business maintain growth in a highly competitive market. 

Many analysts argue that Netflix’s willingness to innovate and respond to changes in customer needs has been one of the main reasons for its success. However, maintaining this success will require the business to continue adapting to changing market conditions and increasing competition. 

Questions 

1. Identify two ways Netflix has changed since it was founded. 

2. Explain how innovation has helped Netflix achieve a competitive advantage. 

(Aim for 3-4 linked strands of reasoning.) 

3. Explain one reason why Netflix faces increasing competition. 

4. To what extent do you agree that innovation has been the main reason for Netflix’s success? 

In your answer, consider: 

• Why innovation may have contributed to success. 

• Other factors that may have been important. 

• Whether innovation will guarantee future success. 

(Aim for one well-developed paragraph that consider both sides of the argument and a supported judgement.) 

BBC Radio 4: The Bottom Line
Choose one episode that sounds interesting to you. This podcast includes discussions with business leaders, entrepreneurs and industry experts. Relevant episode topics include entrepreneurship, product innovation, supermarkets, trainer brands, oil, leadership and competition. 

As you listen, make notes on: 

• What business is being discussed? 

• What problem or opportunity does the business face? 

• What decisions have managers had to make? 

• Which stakeholders are affected? 

• What could the business do next? 

Business news article 

Choose one recent article from the BBC Business News section about a business you recognize. This could be a business such as Apple, Tesco, Netflix, Amazon, Nike, McDonald’s, Greggs, Shein, Primark, Ryanair, Coca-Cola or a local business. 

As you read, think about the bullet points below and summarise in your own words: 

• Why is this business in the news? 

• Is the issue linked to marketing, finance, operations, human resources or external influences – how? 

• How might the issue affect customers, employees, owners, suppliers or competitors – how? 

Business case study research 

Choose one business to research. This can be a large business, such as Nike, Apple, Tesco, Netflix or McDonald’s, or a smaller local business that you know well. 

Produce a one to two-page written report with the following sections. 

1. Business overview 

Include: 

• The name of the business 

• What the business sells 

• Whether it mainly sells products, services, or both 

• Whether it operates locally, nationally or globally 

• Who its main customers are 

2. Marketing analysis 

Explain how the business uses marketing to attract customers. 

You could comment on: 

• The products or services it offers 

• Its pricing strategy 

• Where or how customers can buy from it 

• How it promotes itself 

• How it tries to stand out from competitors 

Try to use at least three of these key terms: 

• target market 

• market segment 

• branding 

• product differentiation 

• competitive advantage 

• customer loyalty 

• market share 

3. Stakeholders 

Identify at least four stakeholders of the business. 

For each stakeholder, explain how they are affected by the business. 

For example: 

• Customers may be affected by prices, quality and customer service. 

• Employees may be affected by pay, working conditions and job security. 

• Owners or shareholders may be affected by profit and business growth. 

• Suppliers may be affected by the number of orders the business places. 

• The local community may be affected by jobs, traffic, pollution or investment. 

4. Finance and business performance 

Find out whether the business appears to be financially successful. 

You could look for: 

• sales revenue 

• profit 

• number of stores 

• number of customers 

• growth in online sales 

• market share 

• expansion into new countries 

• recent problems or falling sales 

• Ring binders 

• Dividers (not compulsory but they will help with organisation) 

• Paper – you are not provided with paper in the sixth form 

• Also bring work from the last 2 weeks with you to every lesson 

Expectations: 

• Read around the subject 

• Textbooks 

• Business articles 

• Listen to podcasts 

• BBC radio 5 live 

• Meet deadlines 

• Work to the best of your ability 

• Seek help if you are unsure  

• Make revision resources as you learn – getting revision ready form day one. 

Email address wharton.l@allsaints.notts.sch.uk  

Kempin.h@allsaints.notts.sch.uk  

For the best chance of a quick reply, please do this before the summer break. Emails during the summer break will get replies but may take longer. 

Bring this completed task to your first lesson. We will use your answers to discuss what makes businesses successful and how businesses respond to change.