Task 9- Cultural policy

What is the DCMS and what do they do?

The DCMS (Department for Digital, Culture, Media and Sport) is a department in the UK government that protects and promotes Britain's cultural and artistic heritage, and helps with growth in businesses and communities. It is responsible for government policy in the following areas:

• The arts
• Broadcasting
• Internet and international ICT policy
• Telecommunications and broadband
• Civil society
• Charities
• Creative industries
• Historic environment
• Architecture and design
• Cultural property and heritage
• Digital economy
• Entertainment licensing
• Gambling and racing
• Press freedom and regulation
• Libraries
• Museums and galleries
• The National Lottery
• Tourism
• Sport
• Olympic legacy

What are some of their more recent announcements?

Some of their most recent articles are:

18/11/21- UK backs digital revolution of public services at international summit

17/11/21- Government funds new tech in the fight against online child abuse

29/10/21- Better broadband for 500,000 rural homes in UK gigabit revolution

21/10/21- The country invited to a major celebration of creativity across the UK in 2022

14/10/21- 1,000 schools connected to top-of-the-class full fibre broadband

11/10/21- Government's Covid-19 charity support fund delivers hope to 6.5 million people across country

5/10/21- UK Government supports UK film and TV on global stage

Websites used:

https://www.gov.uk/government/organisations/department-for-digital-culture-media-sport/about

https://en.wikipedia.org/wiki/Department_for_Digital,_Culture,_Media_and_Sport

https://www.gov.uk/search/news-and-communications?organisations%5B%5D=department-for-digital-culture-media-sport&page=2&parent=department-for-digital-culture-media-sport

Task 8- Other considerations for business

Finance- what sources of funding exist within the creative industries?

One method of funding is through public investment, which can be acquired from many organisations such as:

• Arts Council England
• Creative England
• Arts Impact Fund
• BFI (British Film Institute)
• Innovate UK

These organisations will provide sufficient funds for those within the creative sector, though many provide this funding for very specific sector in the industry. For example, the BFI mainly provides funds for filming and media productions. 

Other creative businesses may fund themselves using personal resources, profits from an existing enterprise, a government grant, a bank loan or private investors.

Insurance- what types of insurance exist for the creative industries?

A highly important kind of insurance to have is Professional Indemnity Insurance (PI) which protects business owners, freelancers and the self-employed if clients were to claim their service was inadequate and possibly sue them. It will protect you if:

• You make any mistakes or the client claims that they've experienced financial loss as a result of your work
• You break the terms of a contractual agreement
• You become part of a dispute over intellectual property

A PI policy will cover defence costs if any of these situations were to arise. 

Another kind of insurance is Employers Liability Insurance (EL), which you are legally required to have if you take on staff, regardless of their permanent, part-time or freelance. This kind of insurance provides you with the cover needed if an employee were to injure themselves at work, as well as help pay for legal representation if a claim was brought against you.

Public Liability Insurance (PL) provides cover if either you or one of your employees causes injury or property damage to a third party. 

Business Equipment Insurance is especially important for creative industries as some form of expensive technologies and important pieces of equipment are often needed (e.g. filming equipment). This type of insurance will keep your equipment protected in case of loss, breakage or theft.

Tax Enquiry & Legal Expenses Insurance provides cover for representation costs if a HMRC (tax collection) investigation so you don't have to pay upfront yourself. It also covers:

• Employment disputes
• Legal defence
• Contract disputes
• Debt recovery
• Personal injury
• Property protection
• Tax protection
• Identity theft protection
• Statutory licence appeal
• Jury service and court attendance

Directors and Officers Liability insurance (D&O) helps with business founders of limited companies if they personally face legal action, fines or prison sentences. The legal representation is covered if the policy cover is triggered. 

Working from home- what are the considerations?

When working from home, employees may be able to claim tax relief for additional household costs such as gas and electricity, metred water and business phone calls, but only if they must work at home and it isn't a choice. Also, they can only claim it for the part that is relevant to their work. 

There are also specific requirements that also must be considered such as:

• Being contactable at certain times
• Working at certain hours
• Being more formally supervised
• Keeping a record of time keeping

These are put in place to to ensure people don't exceed the average working time limit and to ensure they're still doing a good amount of work. 

Home workers are also eligible to be supplied with equipment such as laptops and telephones, though it must be insured under the employee's own insurance. Employers also must ensure that home workers have sufficient work spaces at home with good health and safety standards.

Business rates- what are they?

Business rates are taxes paid on non-domestic properties such as shops, offices, pubs, warehouses, factories and holiday rental homes/guest houses. They are designed to help fund services in a local authority. They are calculated using a property's 'rateable value', which is a property's estimated value on the open market. 

Geography, transport and accessibility- does it matter where a company/organisation is based? Does distance matter?

Where a company/organisation is based is very important because there are many geographical factors that affect a business such as:

• Location: this can affect accessibility as it will be much easier for a consumers to access a business if it's in an urban area, such as a city or town, than if it were in a rural area. The more convenient it is to access a business, the more consumers will be interested in purchasing its products/services
• Population: if there is a larger population where a business is based, then the number of potential customers is higher 
• Other businesses: businesses need to consider what competition they may have within their area. If they're based somewhere with a lot of businesses with similar products/services, then they're less likely to be successful

Websites used:

https://cic-media.s3.eu-west-2.amazonaws.com/media/322389/creative-industries-routes-to-finance.pdf

https://www.caunceohara.co.uk/important-insurance-for-creative-media/

https://www.hiscox.co.uk/business-insurance/professional-indemnity-insurance/faq/what-is-professional-indemnity-insurance

https://www.gov.uk/tax-relief-for-employees/working-at-home

https://www.questcover.com/resource-centre/hr-guides/attendance-management/working-at-home/

https://www.great-yarmouth.gov.uk/business-rates

https://www.gov.uk/introduction-to-business-rates

https://www.simplybusiness.co.uk/knowledge/articles/2021/03/business-rates-guide-for-small-businesses/

https://prezi.com/nadknxxgyrhg/geographical-influences-upon-a-business/?frame=c1b3cadc0d892ea10d98a72f0a03d2262104b375

Task 7- Regulatory frameworks

What is a regulatory body and what is a regulatory framework?

A regulatory body is a government agency created to oversee specific industries and practices, managing their systems according specific sets of rules and trends. They're set up to strengthen safety and standards, protecting the public from unethical business conduct. 

Some of the duties of regulatory bodies consist of:

• Serving and protecting the public interest
• Establishing, monitoring and enforcing standards of practice to enhance the quality of practice
• Administering the affairs of the regulatory body and exercising its powers under the PGA (Professional Governance Act)

A regulatory framework outlines the measures businesses should be aware of when establishing their enterprises and during their operations. They are necessary regulations that cover rules, laws and codes of conduct. They're put in place to guide businesses towards behaviours they should be displaying, monitoring their actions to ensure they're adhering to the requirements and regulations set in place.

What is Ofcom, what does it do and what framework does it produce and follow?

Ofcom (Office of Communications) is the regulator for communication services such as TV, radio, mobiles and postal services. It is an independent organisation and is funded by the companies that it regulates. It has many functions, which includes providing a range of companies with quality TV and radio programmes that appeal to diverse audiences and protects viewers/listeners from harmful or offensive material. Any questionable content can be reported to them through their website and call centre, and they register all complaints from people and businesses.

Ofcom uses a framework called 'The Broadcasting Code'. It provides guidance and practices for broadcasters to follow so their content will be suitable for showing and appropriate for their target age range. It is highlighted that the context in which material appears is key for determining whether or not it's allowed, and it's the broadcasters responsibility to ensure they're complying with all sections of the Code. There are many sections within it, including: Protecting the under-eighteens, Harm and offence, Religion, Fairness and Privacy. As suggested by the first section, Ofcom are very intent on guarding the young people from potentially damaging material, with the rest dictating what is and isn't allowed to be broadcasted.

What is the ASA, what does it do and what framework does it produce and follow?

The ASA (Advertising Standards Authority) is an independent advertising regulator. They respond to concerns and complaints from consumers and businesses, banning ads that are misleading, harmful, offensive or irresponsible. Its sister organisation CAP (Committee of Advertising Practice) is responsible for writing the Advertising Codes.

'The Advertising Codes' are the frameworks the ASA follow, with two codes having been created for the different types of advertisements: the CAP Code (Code of Non-broadcast Advertising and Direct & Promotional Marketing) and the BCAP Code (Code of Broadcast Advertising). Non-broadcast advertising is marketing communications other than TV or radio adverts, such as websites, social media accounts, leaflets and catalogues. Like many regulatory frameworks, both Codes are split into multiple sections. The CAP Code consists of sections such as: Compliance, Harm and offence, Children, Environmental claims, Weight control and slimming, Gambling and Alcohol. The BCAP Code, on the other hand, applies to all adverts. There are many of the same sections with additional ones such as: Charities, Premium-rate telephone services, Introduction and dating services, and Scheduling. Every rule in every section must be adhered to in order for an advertisement to be published, in relation to the relevant Code.

What is the IPSO, what does it do and what framework does it produce and follow?

The IPSO (Independent Press Standards Organisation) is an independent regulator for newspapers and magazines, funded by the RFC (Regulatory Funding Company). They investigate complaints made about both printed and online material, and will make newspapers or magazines edit their work if they do not comply with the Editor's Code.

'The Editor's Code of Practice' is the framework IPSO follows. Every newspaper and magazine they regulate agree to follow the rules detailed in the Code, with the responsibility placed on the editors and publishers. There are 16 clauses, some of which include: Accuracy, Harassment, Children, Reporting of Crime, Discrimination and Confidential sources. Though the Code must be adhered to, IPSO also allows freedom of expression with certain subjects (e.g. politics), as long as it follows the set rules so complaints can't be made about IPSO restricting human rights. 

What is the BBFC, what does it do and what framework does it produce and follow?

The BBFC (British Board of Film Classification) is an independent and self-financing organisation that provides ratings for films, TV shows and online videos so there's guidance for what content is appropriate for certain age groups. They aim to protect the public, especially children, from potentially harmful content and encourage people, primarily parents, to make informed viewing choices.  

The BBFC's framework is their 'Classification Guidelines', which they follow when deciding on ratings. They have both general and specific classification considerations that they follow. In general terms, the BBFC looks at context, theme, tone and impact. These are particularly important when they are conflicted between two age ratings for a works. In specific terms, they consider aspects such as the danger of behaviour, discrimination, drugs, language and violence contained in a video. Following these guidelines, a video can then be given an age rating ranging from a U to an R18.

What is PEGI, what does it do and what framework does it produce and follow?

PEGI (Pan European Game Information) provides age classifications for video games ranging from a 3 to an 18, as well as providing content descriptors so people are aware of what unsuitable content is in a game (e.g. bad language, drugs, in-game purchases). Their main target audience is parents so they can make informed decisions regarding what games they should purchase their children. 

Recently the method used to regulate games has changed as more games have become available to download online, so physical copies no longer need to be purchased. Both the older and newer methods involve publishers having to fill out questionnaires about a game's content, but the process is now much faster as they now receive immediate age ratings instead of having to go through multiple processes.

PEGI's regulatory framework is called 'The PEGI Code of Conduct'. All publishers using the PEGI system are contractually obligated to follow the rules within the Code. It is separated into 15 articles, covering important aspects such as Conditions for Online Gameplay Environments, and Advertising and Promotion. 

What is the Creative Industries Council and what is their involvement with regulation?

The CIC (Creative Industries Council) is a forum of government, creative businesses and other creative organisations. It focuses on barriers that may affect the growth of the creative industries such as access to finance, skills, regulation and intellectual property. 

It is suggested that the CIC see regulation as an obstacle that's preventing the growth of the creative industries, perhaps because of the restrictions it puts on what these companies can and cannot create. 

Websites used: 

https://www.mytutor.co.uk/answers/8979/GCSE/Media-Studies/What-is-the-definition-and-an-example-of-a-regulatory-body/

https://en.wikipedia.org/wiki/Regulatory_agency

https://en.wikipedia.org/wiki/Regulation

https://professionalgovernancebc.ca/duties-of-regulatory-bodies/

https://www.mitcentre.com/blog/the-business-regulatory-framework/

https://www.ofcom.org.uk/

https://www.asa.org.uk/

https://www.ipso.co.uk/

https://www.bbfc.co.uk/

https://pegi.info/

https://www.thecreativeindustries.co.uk/

Presentation skills

Task 6- The creative economy

What 'industries' make up the creative industries?

There are many sub-sectors under the term creative industries:

• Advertising
  
• Architecture
• Crafts
• Design (product, graphic, fashion)
• Film, TV, video, radio and photography
• IT, software and computer services
• Publishing
• Museums, galleries and libraries
• Music, performing and visual arts
• Animation and VFX
• Video games
• Heritage

How many people are employed in the UK?

There's an estimated 2,040,000 jobs in the UK's creative industries, developing new jobs faster than other sectors, with a total number of 3.2m jobs UK jobs in the wider creative economy, which counts creative occupations in other sectors. 

Number of jobs in each creative sector:

• Advertising and marketing: 195,000
• Architecture: 111,000
• Crafts: 9,000
• Design and designer fashion: 163,000
• Film, TV, video, radio and photography: 245,000
• IT, software and computer services: 733,000
• Publishing: 199,000
• Museums, galleries and libraries: 89,000
• Music, performing and visual arts: 296,000

In 2018, jobs in the creative industries grew by 1.6% compared to the UK-employment increase of 0.8%.

In 2016, the creative industries accounted for 284,400 businesses, just over one in eight of all UK businesses, which is around 11.8%. 

How much do the creative industries generate each year?

In 2016 (based on a report by the Arts Council England for the Centre for Economic and Business Research), the arts and culture industry was responsible for contributing £10.8bn in Gross Value Added (economic metric that measures a company's contribution to an economy/producer/sector/region). 

In 2018, the creative industries contributed more than £111bn to the UK economy, which was a 7.4% increase on the previous year compared to a 1.4% increase for the UK economy. This is greater than the automotive, aerospace, life sciences and oil and gas industries combined. The advertising and marketing sectors were the two key drivers of growth. 

What is the growth of the creative industries (comparatively)?

Growth in enterprises is typically measured in either turnover (sales) and headcount (number of individuals on a firm's payroll). 

In terms of turnover, the creative industries are growing five times faster than the UK economy due to the ever increasing amount of money they are contributing. They are the fastest growing sector in the UK economy.

The turnover growth in creative enterprises is likely attributed to:

• Focusing on brand and profile
• Building a larger client/customer base
• Developing products and/or services
• Collaborating/partnering with other business organisations
• Focusing on sales and marketing

In terms of headcount, jobs in the creative industries have grown at three times the UK average. From 2011 to 2017, the number of jobs increased by 28.6%. 

Websites used:

https://www.davidparrish.com/creative-industries-definitions/

https://www.thecreativeindustries.co.uk/facts-figures/uk-creative-overview-facts-and-figures-employment-figures

https://www.thecreativeindustries.co.uk/facts-figures/industries-arts-culture-arts-culture-facts-and-figures-the-economic-contribution-of-the-arts

https://www.investopedia.com/terms/g/gross-value-added.asp

https://www.gov.uk/government/news/uks-creative-industries-contributes-almost-13-million-to-the-uk-economy-every-hour

https://www.creativeindustriesfederation.com/statistics

https://www.creativeindustriesfederation.com/sites/default/files/2018-12/Creative%20Industries%20Federation%20-%20Growing%20the%20UK's%20Creative%20Industries.pdf

Task 4- The brand

What is a mission statement?

A mission statement is 'a formal summary of the aims and values of a company, organization, or individual'. They are usually very short and concise, condensed into a sentence or small paragraph, and used to help employees keep focused and motivated with a clear goal in mind. It explains what the company does, how it does it and why it does it, which interests prospective investors who may be interested in a company if their missions align with each others. 

Example:

Royal Shakespeare Company's mission statement:

• To inspire and captivate audiences and transform lives through amazing experiences of Shakespeare's plays and of great theatre
• Relevant, resonant and accessible, made in Stratford-upon-Avon, shared across the UK and around the world

What is brand positioning?

Brand positioning is the "act of designing the company’s offering and image to occupy a distinctive place in the mind of the target market”, describing how the company differs from its competitors. A brand positioning strategy is used make consumers perceive a company in a specific way, increasing consumer loyalty and their willingness to purchase a company's products or services. 

To create successful positioning, three things need to be analysed: what the consumers want, what the company's and brand's capabilities are, and how each competitor is positioning their brand. A positioning statement is then created, which typically is a three word summary of the company's brand identity. 

There are many types of brand positioning strategies. For example:

• Customer service positioning strategy (highlights friendly customer service/strong support systems, which can help justify higher price points)
• Convenience-based positioning strategy (highlights why a product/service is more convenient based on factors such as location, ease-of-use, accessibility, etc.)
• Price-based positioning strategy (highlights the affordability of a product/service)
• Quality-based positioning strategy (highlights the quality of a product/service based on factors such as craftsmanship, materials and sustainable practices)
• Differentiation strategy (highlights a product's/service's uniqueness and innovative qualities)
• Social media positioning strategy (highlights what platforms/channels the business is most and least active on)

Example:

Spotify vs Apple Music

Spotify uses a price-based positioning strategy because it offers a free plan, as well as a fairly affordable premium plan. 

Apple Music, on the other hand, uses a quality-based positioning strategy with a 60-million song catalogue, videos and on-screen lyrics. 

What, in business, is meant by values and drivers?

Values are at the core of every business. They're what a business stand for, their principles, their philosophy. They can the principles a business owner personally has, the beliefs and attitudes all staff have in common or the organisation's standards of behaviour. A clear set of values will be agreed upon all management and employees and they will always be adhered to and prioritised by the business. 

Example:

Enchantment Theatre Company's values:

• Originality
• Imagination
• Transformation
• Community

Drivers are the key inputs and activities that drive the operational and financial results of a business. They impact all financial aspects of a business such as revenues, expenses and capital costs. Businesses should always identify their drivers because this will determine their strategies and goals, and the order of their importance.

Common business drivers are: 

• Salespeople
• Number of stores/locations
• Website traffic
• Commissions, fees, and other selling expenses
• Number and price of products solved
• Production rate for manufacturing
• Energy and electricity costs
• Salaries and wages per employee
• Commodity prices (e.g. oil, copper, rubber)

Once the most important driver has been identified, the business' results need to be monitored in order to make strategic decisions which will improve performance in the future. The key drivers will need to be reported on using charts, graphs and tables in an understandable fashion to help executives visualise what's happening in their business. 

How can an individual, business or organisation market themselves?

The best B2C (business-to-consumer) marketing strategies are:

• Social networks and viral marketing: uploading shareable content on social networks such as videos, images and text posts
• Paid media advertising: paying for an advertisement to be displayed elsewhere such as on social media, websites, in shops, etc.
• Internet marketing: any kind of marketing that uses the internet and online technologies (e.g. websites, email, social media)
• Email marketing: an automated process that targets specific prospects and customers with the goal of influencing their purchasing decisions
• Direct selling: marketing and selling products/services directly to consumers, building face-to-face relationships between sales agents and consumers by visiting their homes
• Point-of-purchase (POP) marketing: targeting consumers that are already engaged with the business through product displays, on-package coupons, shelf talkers, etc to sway purchasing decisions
• Co-branding marketing: where two brands join together to promote and sell a single product/service
• Affinity marketing: a partnership between a supplier and an organisation that gathers those with the same interests (e.g. a coffee shop selling goods from a local bakery)
• Cause marketing: a co-operative effort between a for-profit and non-profit organisation to promote and benefit from social and other charitable causes
• Conversational marketing: interactions via a chatbot or live chat, providing self-service and answering their questions immediately 
• Earned media/PR: publicity that's created through efforts other than paid advertising, and is always unsolicited and gained organically (e.g. social media testimonial, word-of-mouth, television or radio mention, article)
• Storytelling: creating a 'tale' of who the company is, what it does, how it solves problems, what it values and how it engages and contributes to the community

In business, what is a blueprint and how would this relate to customers and marketing?

A business blueprint is a strategic plan that tells those in charge how to strategically execute business, covering aspects such as the productivity requirements, necessary jobs, milestones, targets and expected outcomes. It's a composition of documents, including the life plan, organisation chart, position contracts, job prototypes and business plan. 

• Life plan: the foundation of the blueprint that details the most important things the business owner wants the business to say to the world, setting milestones for how they can ensure the message and impact is left behind
• Organisation chart: covers what positions the business needs to operate at peak performance (e.g. sales manager, customer service, marketing specialist, etc)
• Position contracts: details what tasks each position is responsible for, the quality standards, the expected outcomes, who they'll report to, and how the position fits into the company's mission and vision
• Job prototypes: a documentation of how tasks are done to act as a training manual for new hires. This also stabilises consistent processes as the quality standards will be equal regardless as all employees will receive the same training
• Business plan: the outcomes and goals the business owner will use to identify whether the business systems are working 

Having a blueprint increases the chances of a business securing a loan, securing investment capital and growing their business. 

There are also marketing blueprints which involve designing a vision for the company's future, defining how the brand will be built upon, creating a map to reach the set goals and inspiring the team to make the most of every marketing opportunity. This will help the business to create a brand identity whilst keeping the customers in mind, visualising the company through their lens to improve overall brand perception, increase sales and customer satisfaction levels, and provide synergies to drive up company profitability. 

Websites used:

https://www.investopedia.com/terms/m/missionstatement.asp

https://www.rsc.org.uk/about-us/policies/our-plan-2018-2022

https://www.thebrandingjournal.com/2016/11/brand-positioning-definition/

https://blog.hubspot.com/sales/brand-positioning-strategy

https://www.business.qld.gov.au/starting-business/planning/business-planning/values

https://enchantmenttheatre.org/about/mission-vision-values/

https://corporatefinanceinstitute.com/resources/knowledge/modeling/business-drivers/

https://marketbusinessnews.com/financial-glossary/business-driver/

https://www.weidert.com/blog/top-10-most-effective-marketing-strategies

https://howtoentrepreneur.com/what-is-a-business-blueprint

https://m.economictimes.com/small-biz/marketing-branding/marketing/the-need-to-have-a-marketing-blueprint/articleshow/49177739.cms

Task 3- Business plans and models

What is a business plan?

A business plan is a very important document setting out a business's future objectives and strategies for achieving them. It is written in immense detail and usually includes an executive summary, products and services, marketing strategy and analysis, financial planning, and a budget.

• Executive summary: outline of the company, including its mission statement and information about the company's leadership, employees, operations and location
• Products and services: outline of the products and services offered, including information such as pricing, product lifespan, benefits to consumers and production and manufacturing processes
• Market analysis: outline of who the competition is, how it factors in the industry, its strengths and weaknesses, and expected consumer demand
• Marketing strategy: outlines how the company will attract and keep its customer base, how it intends to reach the consumer and marketing and advertising campaigns, including what media they will exist on
• Financial planning: includes financial statements, planning sheets, targets and estimates, and potential investors
• Budget: includes costs related to staffing, development, manufacturing, marketing and other expenses

They typically fall into two categories: traditional or learn startup. Traditional business plans are the most common with more detail. They tend to be longer and require more work to be put in. Learn startup plans use an abbreviated structure so the key elements are highlighted. 

What is a business model?

A business model is a plan for the successful operation of a business, identifying sources of revenue, the intended customer base, products, and details of financing. They are the foundation of a company, detailing the company's plan to profit. 

A key component of a business model is the value proposition, which will usually include the following elements:

• A description of the ideal customer
• The customer value (added benefits the products or services bring)
• The value chain position (what needs to be done to get the product/service from the business to the end consumer)
• The revenue sources and cost drivers (show all activities costs)
• The competitive advantage (show state when consumer perceives the product/service as better than the competition)

Examples of business models:

• The business model of production- relates to company sales of the products/services produced
• Advertising- focuses on creating content that people want and displaying it to them. It is split into 3 segments: CPM (cost per thousand), CPC (cost per click) and CPA (cost per action)
• Multilevel marketing- based on commission/distribution, as it involves businesses recommending others' products and taking a cut from every sale they generate
• Razor and blades- focuses on products that need to be replaced often
• Affiliate- relates to the advertising model but is mainly used online, using links that are embedded in content forms that act as advertising visuals
• Franchise- involves companies selling the rights to their business models in exchange for some percentage of the revenues 
• Subscription- company receives revenue from its subscribers at regular intervals 
• Freemium- two versions of the product/service are offered: a free version with limited features to entice consumers and a paid version with more features that are often more useful  
• Accessories- one product is offered for free or at a very cheap price and generates profit on the sale of accessories for it

What is meant by the term 'sustainable business model'?

A sustainable business model "describes, analyses, manages, and communicates a company's sustainable value proposition to all its stakeholders; how it creates and delivers this value; and how it captures economic value while maintaining or regenerating natural, social, and economic capital beyond its organisational boundaries". They describe how an organisation runs and and provides the expected outcomes for any suggested sustainable practices (specific things a business does that increases sustainability e.g. recycling). 

Companies that use sustainable business models are more likely to succeed because they will be able to identify risks in the supply and value chain, then combat them to ensure prosperity. It also creates a positive brand image, thus making consumers more likely to engage with a business, especially those who are more environmentally aware.

Websites used:

https://www.investopedia.com/terms/b/business-plan.asp

https://tms-outsource.com/blog/posts/business-model-vs-business-plan/

https://www.investopedia.com/terms/b/businessmodel.asp

https://www.thebusinessplanshop.com/blog/en/entry/business_model_vs_business_plan

https://www.investopedia.com/terms/b/businessmodel.asp

https://strive2thrive.earth/sustainable-business-models/

Task 2- Types of businesses in the UK

Sole traders

A sole trader is 'a person who is the exclusive owner of a business, entitled to keep all profits after tax has been paid but liable for all losses', though can have employees. They are self-employed with the business having no legal identity separate to its owner. There are many financial responsibilities as they have to keep records of the business' sales and expenses and send a 'Self Assessment tax return' every year. The sole trader also raises all of their own funds as there are no shareholders.

Advantages:

• Full control of the business 
• Changes can be made quickly and easily
• Can be closer with customers
• Fast and simple to start business
• Low setup costs

Disadvantages

• Personally responsible for any debts or liabilities
• Often perceived as 'less professional'
• Limited finances
• No partners to work with 
• Difficult to keep a work-life balance

Example: Freelancers (e.g. designers, artists, photographers, media consultants)

Limited companies

A limited company is a business which is 'legally separate from its owners (typically shareholders) and managers (formally called directors)'. All of the finances are separate from the business owner's personal finances. 

They can be limited by shares or limited by guarantee. Limited by shares companies are businesses that make a profit, which they can keep after paying tax, and have shareholders involved. Limited by guarantee companies, on the other hand, usually aren't for profit as the money is invested back into the company. There are also guarantors and a 'guaranteed amount', meaning there's an agreed amount of shares the business owners pay to the guarantors. 

Advantages

• Limited liability
• Gives an appearance of credibility and prestige
• Often can provide greater tax efficiency
• Can easily change ownership of the business

Disadvantages

• Additional reporting and filing requirements
• Potentially higher legal, accountancy and other administrative costs
• Information about the company is available to the public

There are numerous different types of limited companies:

• Public limited company (PLC)
• Private company limited by shares (LTD)
• Private company limited by guarantee

A public limited company (PLC) is owned by its shareholder/s and run by its directors, who technically could be any members of the public. It is the only kind of company that can offer its shares to the public to raise funds for commercial use. The ability to raise funds from the public is a driving reason that many choose to create a PLC.

Examples: Burberry, BT, Tesco

A private company limited by shares (LTD) cannot be owned by any members of the public and is instead owned by a non-government organisation (NGO), with the sale of company shares being handled privately. They are one of the most common types of companies as it combines the potential to share in profits with a clear restriction on personal financial liability, meaning shareholders' personal assets wouldn't be at risk if the company faced financial difficulties.

Examples: Iceland, Wilko

A private company limited by guarantee is a structure often used by non-profit organisations without shareholders, such as charities and community projects. Any surplus income is typically re-invested back into the company or is used for promotional purposes, instead of distributing the profits amongst the members. Typically a group of guarantors agree to contribute a sum of money to help start up the company.

Example: PGA European Tour, Oxfam

Contrasting with limited companies are unlimited companies (Unltd) which have no formal restrictions on the sum of money the shareholders have to pay if the company were to go into 'formal liquidation' (closure of a limited company where its assets are sold and distributed). 

Example: C. Hoare & Co, The Equitable Life Assurance Society

Partnerships

Partnerships are businesses owned by two or more people. A contract called a 'deed of partnership' is drawn up, detailing what type of partnership it is, how much capital (wealth) each party contributes and how profits and losses will be shared. A partner doesn't have to be a person; for example, a limited company can be counted as a 'legal person' and act as a partner. 

Both partners will work in pursuit of the business purpose for which the partnership was created, contributing capital, skills and time, often in different areas of the business. 

Advantages

• Fewer legal obligations
• Easy to start
• Shared responsibility between partners
• Collaborative decision-making
• More privacy
• Easy access to profits

Disadvantages

• No independent legal status
• Unlimited liability (partners are personally liable for debts/losses)
• Perceived lack of prestige
• Potential differences and conflict
• Profits must be shared
• Limited access to capital

Example: Pret A Manger, Whatsapp, Carphone Warehouse

There is a type of business known as a limited liability partnership (LLP) but they aren't legally recognised as partnerships in the UK. For a business to be an LLP, some or all of the partners have to have limited liabilities, meaning they are only responsible for their own misconducts.

Social enterprises

Social enterprises are businesses, often independent, that have a social mission, such as giving back to the community, the environment or encouraging positive social change. They reinvest their profits back into the business or donate them to charitable causes, putting the interests of people and the planet before shareholder gain. Unlike charities, they need to make a surplus or earnings to keep up as they don't rely completely on donations. They exist in nearly every sector from consumer goods to healthcare to creative agencies. They also create jobs and and opportunities for the more marginalised groups of people, providing them with training and employment opportunities. 

Advantages

• Have a positive impact on society
• Option to get financial help from the government or private investors
• Draw more attention from the people and the media
• Benefit the economy by creating new jobs

Disadvantages

• Competition with enterprises that have the same social mission
• Strict rules and regulations
• Must constantly monitor the market to appeal to customers and address new social matters

Examples: The Big Issue, the Eden Project, TranSanta, TOMS

Charities

A charity is a business with 'charitable' aims such as preventing poverty or advancing the arts, culture, heritage or science. They cannot make any profit as all of the money they raise must go towards achieving their aim, meaning they can't have owners or shareholders benefiting from it. They must be established exclusively for public benefit, which means their work must have a positive effect that outweighs any negative side effects or consequences, and it must benefit members of the public in some way (specific target audience depends on their aim). 

Advantages

• Don't have to pay income/corporation tax, capital gains tax or stamp duty
• Pay 20% maximum of normal business rates on the buildings they use
• Special VAT treatment 
• Easier to raise funds compared to other non-charitable bodies

Disadvantages

• Strict rules that apply to trade
• Trustees receive no financial benefits (e.g. salaries, services)
• Rely on volunteers working for them
• Have to be conscious of charitable and personal interests conflicting
• Limits to the extent of political and campaigning events a charity can take on

Examples: Theatre Support Fund, The Actors' Benevolent Fund

Unincorporated associations

An unincorporated association is an organisation set up by two or more people for non-profit reasons with an agreed upon purpose (e.g. voluntary groups, societies, clubs). They don't need to be registered and don't cost anything to set up, though individual members are personally responsible for any debts or contractual obligations. They are governed by their own rules with no legal obligation to have a written governing document or constitution.

Advantages

• Little/no set up costs
• Cheap and easy to run
• No formal registration requirements
• No detailed procedures to follow in meetings
• Less intimidating structure for those who've never run a business before

Disadvantages

• No separate legal personality
• Management committee are likely to be personally liable for debts
• May be seen as 'less professional' by potential funders
• Little/no financial gain

Examples: drama clubs, art clubs, volunteer groups

Websites used:

https://www.informdirect.co.uk/business-management/what-is-a-sole-trader/

https://www.gov.uk/set-up-sole-trader

https://www.informdirect.co.uk/business-management/sole-trader-advantages-for-business/

https://www.informdirect.co.uk/business-management/disadvantages-of-a-sole-trader-business/

https://sjdaccountancy.com/resources/becoming-contractor/sole-trader/#:~:text=Some%20popular%20sole%20trader%20examples,delivery%20drivers%2C%20tutors%20and%20nannies)

https://www.informdirect.co.uk/company-formation/what-is-a-limited-company/

https://www.gov.uk/limited-company-formation

https://www.informdirect.co.uk/company-formation/public-limited-company-what-is-it/

https://www.companyaddress.co.uk/post/38

https://www.informdirect.co.uk/business-management/company-limited-by-guarantee-what-is-it/

https://theartsdevelopmentcompany.org.uk/resources/what-is-the-best-business-model-for-my-social-enterprise/

https://www.informdirect.co.uk/business-management/general-partnership-uk-what-is-it/

https://www.socialenterprise.org.uk/what-is-it-all-about/

https://www.socialenterprisemark.org.uk/what-is-social-enterprise/

https://honestproscons.com/social-enterprise-advantages-and-disadvantages/

https://howcharitieswork.com/about-charities/what-is-a-charity/

https://hlca.co.uk/resources/advantages-and-disadvantages-of-being-a-charity/

https://www.gov.uk/unincorporated-associations

https://www.netlawman.co.uk/ia/unincorporated-associations

https://scvo.scot/support/setting-up-a-charity/decide-on-structure/voluntary-or-unincorporated-association

https://www.bbc.co.uk/bitesize/guides/zdc6mfr/revision/1

Task 1- Business analysis tools

SWOT and PESTEL analyses- what are they and how can they be used?

[See SWOT and PESTEL analyses posts]

PESTEL analysis- what current factors are impacting businesses and ventures in the UK?

• Political factors: tax (e.g. raising/lowering corporation tax, which impacts profits), laws (e.g. changes in the National Minimum Wage, which impacts profits and employment rights), political stability (e.g. Brexit, which will impact trading)
• Economic factors: economic growth (more jobs created and more tax to be paid), interest rates (affects how much money businesses borrow/invest), unemployment (determines employee's wages), inflation (affects cost of goods), exchange rates (impacts how much can be sold to/bought from abroad)
• Social factors: demographics (changes in the population e.g. birth rate, life expectancy), lifestyles (e.g. people prioritising health, more vegetarians/vegans), tastes and trends
• Technological factors: ICT (need to keep software and hardware up to date), research and development (developments in technology e.g. 3D printing, smartphones, new apps), automation (replacing employees with machines e.g. self-scan checkouts), e-commerce (more firms going online, which increases customers and lowers the costs of production)
• Environmental factors: climate change (e.g. increasing heat, more extreme weather conditions, more awareness concerning carbon emissions), weather (e.g. seasonal impacts, natural disasters), recycling (customers want to buy from companies who are more environmentally aware), pollution (need to aware of their carbon emissions and environmental impact)
• Legal factors: health & safety laws, licenses and permits, equal opportunities. consumer rights and laws, product safety, trade regulation and restrictions

What does/might Brexit mean for the creative industries?

Brexit has already started to have an impact on the creative industries. For example, musicians and other cultural professionals have a loss of movement between other countries, which affects touring and important travel which is necessary for some creative sectors (e.g. filming on location for media productions). This also makes transporting goods such as musical instruments props more difficult with 27 different systems put in place. It also costs hundreds for a temporary visa to stay elsewhere in the EU, meaning it isn't financially viable for many creative workers to travel. Also, it is more difficult for EU workers to come to the UK, and they make up 6.7% of the UK's creative industries workforce. The lack of travel will mean a loss of diversity in these sectors, which is already a huge issue in the UK. This means that more 'home grown' talent will be needed, meaning there needs to be more encouragement for young people to pursue creative careers and support provided to help them. 

Brexit will also impact the funding provided for many creative projects in the UK with a loss of access to many European funding organisations that greatly supported the arts and culture sectors. For example, between 2014-2020, the UK received €68 million in direct funding from Creative Europe. Now the UK will have a reduced relationship with this organisation, likely leading to less funding being available. 

Cultural policy- what is currently happening in the UK?

Cultural policy is 'the government actions, laws and programs that regulate, protect, encourage and financially (or otherwise) support activities related to the arts and creative sectors'. They put in place processes, legal classifications, regulations, legislations and institutions that promote cultural diversity and creative expression in of art forms/activities. 

The creative industries took a large hit due to the COVID-19 pandemic, especially during the lockdown periods. The government had to provide a lot of support to help the arts recover as many jobs and a lot of money was lost. An emergency furlough scheme was put in place to reduce the number of workers being made redundant but that has since ended, meaning the number of job losses increased again. Venues have been able to open but with social distancing measures put in place. This has reduced how many people are able to visit them, so it isn't financially viable for many of these places to stay open. Some smaller creative businesses even had to permanently close down due to financial issues.

SWOT- conduct a personal SWOT analysis

[See SWOT analyses post]

Websites used:

https://www.mindtools.com/pages/article/newTMC_05.htm

https://www.liveplan.com/blog/what-is-a-swot-analysis-and-how-to-do-it-right-with-examples/

https://www.bbc.co.uk/bitesize/guides/zgfrpbk/revision/1

https://ukandeu.ac.uk/brexit-impacts-on-the-arts-and-culture/

https://www.thisishome.co.uk/brexit-and-the-creative-industries/

https://en.wikipedia.org/wiki/Cultural_policy

https://www.culturalpolicies.net/covid-19/country-reports/uk/

My vision, mission and value statements

Vision statement: To transform theatre into a welcoming and inclusive industry for all.

Mission statement: To create original theatrical productions which are highly accessible, with diverse casting and crew members so everybody feels represented both on and off stage. 

Important values

• Diversity (definitely non-negotiable)
• Accessibility (definitely non-negotiable)
• Originality (will strive for-more difficult to achieve)
• Impact (more aspirational)
• Inspiration
• Collaboration

• These values must be shared by both the cast and staff involved in every production
• My business will only work with those who agree with importance of these values and incorporate them into their propositions- willing to negotiate and collaborate effectively
• Behaviours: need to be able to negotiate with others, work well in a team, treat everybody appropriately and respectfully, understand the differing needs of others, willing to try new things/put themselves out there, take feedback and apply it to their work
• Work with those who present interesting, original ideas that adhere with the core values and are willing to develop them alongside the team 
• Aspired impact: to inspire people to create whatever they desire, to encourage them to continue working on ideas they may not have faith in, to leave audiences with an important message/something to think about after watching our productions, to make everybody feel represented and understood, allow everybody to enjoy theatre 

Examples of a value statement

 The Old Globe

• Transformation: Theatre cultivates imagination and empathy, enriching our humanity and connecting us to each other by bringing us entertaining experiences, new ideas, and a wide range of stories told from many perspectives.
• Inclusion: The communities of San Diego, in their diversity and their commonality, are welcome and reflected at the Globe. Access for all to our stages and programs expands when we engage audiences in many ways and in many places.
• Excellence: Our dedication to creating exceptional work demands a high standard of achievement in everything we do, on and off the stage.
• Stability: Our priority every day is to steward a vital, nurturing, and financially secure institution that will thrive for generations.
• Impact: Our prominence nationally and locally brings with it a responsibility to listen, collaborate, and act with integrity in order to serve.

The Limelight Theatre

• Accessible – convenient (local), with good parking facilities and disabled- friendly
• Inclusive – for all people, groups and ages
• Affordable – reasonably priced membership, and an affordable night out.

Enchantment Theatre Company

• Originality
• Imagination
• Transformation
• Community

'Back To The Future' Foley task