OCR GCSE Business (J204) · Business 2: Operations, finance and influences on business
Mini-Lesson
Operations, finance and influences on business
This mini-lesson covers OCR Business 2 — Operations, finance and influences on business: operations (production, quality, stock), finance (break-even, cash flow, profit, margins) and external influences (economy, ethics, globalisation).
Work through each screen, answer the questions as you go (some are wordy, some are calculations) and collect ⭐ stars. Press Start when you're ready.
Operations
Production & quality
Operations turn inputs into outputs efficiently.
- Production methods: job (one-off), batch (groups), flow (continuous line).
- Quality: control (inspect at the end) vs assurance (build in throughout).
- Stock: just-in-time (JIT) cuts storage cost but risks running out.
Productivity = output ÷ number of workers. Higher productivity lowers unit costs.
Quick check
Which production method?
?A tailor makes a single bespoke suit to a customer's exact measurements. Which production method is this?
Calculate
Your turn — productivity
1A team of 6 workers produces 3,600 units a week. Calculate labour productivity (output per worker).
units
Hint: labour productivity = output ÷ workers = 3,600 ÷ 6.
Sort it
Fixed cost, variable cost, or revenue?
Tap an item, then the group it belongs to.
Finance — break-even
Costs, profit & break-even
Key finance formulae:
total costs = fixed costs + variable costs
profit = total revenue − total costs
break-even (units) = fixed costs ÷ (price − variable cost per unit)contribution per unit = price − variable cost per unit
Calculate
Your turn — break-even
2A product sells for £25, has a variable cost of £10 per unit, and fixed costs are £9,000. Calculate the break-even output.
units
Hint: break-even = fixed costs ÷ (price − variable cost) = 9,000 ÷ (25 − 10).
Calculate
Your turn — profit
3A firm has total revenue of £120,000 and total costs of £95,000. Calculate its profit.
£
Hint: profit = total revenue − total costs = 120,000 − 95,000.
Finance — cash flow & margins
Cash flow & profit margins
Cash flow is money in and out over time — a firm can be profitable yet short of cash.
net cash flow = cash inflows − cash outflowsclosing balance = opening balance + net cash flow
gross profit margin = (gross profit ÷ revenue) × 100
net profit margin = (net profit ÷ revenue) × 100
Calculate
Your turn — closing balance
4A business opens the month with £3,000. Inflows are £12,000 and outflows are £10,000. Calculate the closing cash balance.
£
Hint: net cash flow = 12,000 − 10,000 = 2,000; closing = 3,000 + 2,000.
Calculate
Your turn — gross profit margin
5A shop has revenue of £80,000 and gross profit of £32,000. Calculate the gross profit margin.
%
Hint: gross profit margin = (gross profit ÷ revenue) × 100 = (32,000 ÷ 80,000) × 100.
Match it
Match the term to its formula/meaning
Tap a statement on the left, then the correct term on the right.
External influences
External influences on business
Outside forces a business cannot control:
- The economy: interest rates, unemployment, inflation, consumer income.
- Ethics & environment: fair trade, cutting pollution — trade-offs with cost.
- Globalisation: imports, exports, multinationals, exchange rates, tariffs.
- Legislation: consumer, employment and health & safety law.
Exchange rate (SPICED): a Strong Pound makes Imports Cheaper and Exports Dearer.
Quick check
Effect of higher interest rates
?Interest rates rise sharply. What is the most likely effect on consumer spending and on firms with loans?
Quick check
Strong pound effect
?The pound strengthens. What happens to the cost of goods a UK firm imports from abroad?
Recap
The big ideas to know
Operations: job/batch/flow, quality control vs assurance, JIT; productivity = output ÷ workers
Break-even (units) = fixed costs ÷ (price − variable cost); profit = revenue − total costs
Cash flow: net flow = inflows − outflows; closing = opening + net flow
Margins: gross & net profit margin = (profit ÷ revenue) × 100
Influences: economy, ethics/environment, globalisation (SPICED), legislation
You've covered OCR Business 2 — Operations, finance and influences on business. Press Finish to see your score.
🏆
Mini-lesson complete!
⭐⭐⭐
You've worked through Operations, finance and influences on business for OCR GCSE Business. 🎉
Your stars: 0 / 0
Next: test yourself in the Evaluate stage Confidence Quiz, then lock it in with Verify.
📣 Smashed it? Share your score
Challenge a mate to beat your stars, or show a parent how you got on.
→ Back to all subjects