Document 6488643

Economics: Performance Assessment
Idaho Department of Education
Assessment Guide for the Instructor
The High School Entrepreneur:
Researching and Writing
A Small Business Plan
“If land, labor, and capital are the essential ingredients for creating all goods and
services, who pulls these resources together? The answer is entrepreneurs.
Entrepreneurs are ambitious leaders who decide how to combine land, labor,
and capital resources to create new goods and services. They are the
individuals who take risks to develop original ideas, start businesses, create new
industries, and fuel economic growth.”
Economics: Principles in Action, Prentice Hall, 2001
ID Economics Performance Assessment
Economics Performance Assessment correlated to Idaho State Standards
Instructional Block
Standard/Content
Knowledge and Skills
Project Number/Title in
Performance Assessment
Block 1, 2, 3
489.01.a: Use analytical skills for
reasoning, research, and reporting,
including interpretation of maps,
charts, graphs, timelines and works of
art.
Block 1, 2, 3
489.01.b: Evaluate and interpret
points-of-view using primary and
secondary sources.
510.01.b: Know ways in which the
interactions of all buyers and sellers
influence prices.
510.01.d: Identify the incentives that
determine what is produced and
distributed in a competitive
marketing system.
512.01.a: Explain the impact of
culture, values, and belief systems on
economic systems.
513.01.a: Know the characteristics of
various types of business structures.
512.01.b: Explain and illustrate
environmental and geographical
impacts on economic policies and
decisions made by federal, state,
regional, and local officials.
512.01.c: Describe and illustrate the
impact of governmental policies and
decisions on economic systems.
513.01.b: Identify the business
characteristics of an entrepreneur.
510.01.c: Define credit and debt and
explain their effects.
514.01.a: Examine and apply the
elements of responsible personal
financial management.
Project 2: Industry Trend
Project 3: Selecting a Product or Service
Project 4: Market Research Studies
Project 14: Start Up Costs
Project 15: Fixed/Variable Costs
Project 18: Break Even Analysis
Project 1: Interview
Project 4: Market Research Studies
Block 1
Block 2
Block 3
514.01.b: Identify and evaluate
sources and examples of consumers’
responsibilities and rights.
Project 8: Compare/Contrast Marketing Chart
Project 9: Marketing Plan
Project 2: Industry Trend
Project 3: Selecting a Product or Service
Project 9: Marketing Plan
Project 2: Industry Trend
Project 11: Type of Business Organization
Project 9: Marketing Plan
Project 6: Trademark Registration
Project 1: Interview
Project 12: Management Skills
Project 16: Personal Assets/Collateral
Project 17: Business Loan Application
Project 14: Start Up Costs
Project 15: Fixed/Variable Costs
Project 16: Personal Assets/Collateral
Project 17: Business Loan Application
Project 18: Break Even Analysis
Project 19: 3 Year Projection
Project 20: Strategic Plan
Project 13: Personnel Strategies
ID Economics Performance Assessment
Assessment
Each of the student projects should be scored independently, providing the
opportunity for formative assessment and feedback while the student is developing
his/her business plan. Projects identified in bold print constitute the major pieces
of the final business plan.
Page
List of Student Projects
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
21.
22.
23.
Interview
Industry Trend
Selecting a Product or Service
Market Research Studies
Selecting a Name
Trademark Registration
Executive Summary
Compare/Contrast Marketing Chart
Marketing Plan
Advertising
Type of Business Organization
Management Skills
Personnel Strategies
Start Up Costs
Fixed/Variable Costs
Personal Assets/Collateral
Business Loan Application
Break Even Analysis
3 Year Projection
Strategic Plan
Title Page and Table of Contents
Final Summary
Assemble Your Final Products
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7
7
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12
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13
19
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Having assessed the individual pieces throughout the semester, the final business plan
portfolio should be scored holistically according to the following rubric:
Information-Based Topic: The High School Entrepreneur
4
The student has a complete and detailed understanding of the information
important to the topic.
3
The student has a complete understanding of the information important to the
topic but not in great detail.
2
The student has an incomplete understanding of the topic and/or
misconceptions about some of the information. However, the student
maintains a basic understanding of the topic.
1
The student’s understanding of the topic is so incomplete or has so many
misconceptions that the student cannot be said to understand the topic.
0
No judgment can be made.
ID Economics Performance Assessment
Marketing Category
Ice Dreams
Joe’s Redhots
Demand for frozen ice products;
better quality than sno-cones;
high quality desert for moderate
price; caters to health-conscious
consumer with no fat/ no
cholesterol/ low calorie product.
Demand for a fast, convenient,
healthy, reasonably priced lunch,
snack or breakfast.
Target Market
1. What needs are sought by your
customers that your product
satisfies?
2. Describe your potential
customer in detail (use those that
apply): age, sex, income level,
education, geographic location,
occupational area, leisure
interests, buying habits and
personal goals.
3. Under what circumstances
does your customer buy your
product?
4. What is the expected size of
your target market?
5. Of that target market, what is
the expected volume of actual
paying customers?
Adults and children in low to
middle income households of all
ethnic backgrounds. Special
catering to Hispanic culture.
Warm weather; interest in healthy
alternative frozen product; need
for reasonable prices and desire
for high quality ice and syrups.
Total population of El Centro,
CA (children, teens, adults) and
travelers who arrive via major
highways.
No figures discussed in detail:
perhaps > 50% since no other
exact competitors for shave ice
exist in El Centro.
Upscale business people in
downtown Chicago.
Breakfast or lunch eaters seeking
quick, inexpensive, higher quality
food.
All business workers within a 6
block radius of the food cart(s).
1000 sales per week (Exec.
Summary figures).
ID Economics Performance Assessment
Marketing Category
Ice Dreams
Joe’s Redhots
1. Who are your major
competitors?
Snow Shack; Garcia’s Food
Market; Wal-Mart.
Other portable food vendors/fast
food restaurants in downtown
Chicago.
2. Why are they successful?
Reasonable prices; convenience
to shoppers; single caterer to snocone market.
Pricing; location; low overhead
for cart vendors.
Ice cream, frozen yogurt; snocones.
Fast food restaurants, sit down
restaurants, food carts, bag
lunches from home.
Competition
3. What substitutes exist for your
product?
4. What impact do these
substitutes have on your sales?
5. What distinctive differences
separate you from your
competitors?
6. Why should customers leave
your competitors to choose your
product?
Little to none – premium ice
cream/frozen yogurt segment
losing market share and frozen
ice gaining share; prices of shave
ice are competitive.
It is the only shave ice business in
the area; better quality syrups;
tender texture of ice (like real
snow).
Better quality product for the
same price.
Decrease sales.
High quality/healthy products;
better service; cleanliness; free
samples; specials; varied food
selections; better locations; fun
and promotional personality;
environmental concern.
Healthier product; prompt,
courteous service; concern for the
environment.
ID Economics Performance Assessment
Marketing Category
Ice Dreams
Joe’s Redhots
El Centro, CA on Highway 86.
Outside/inside businesses in
downtown Chicago.
Location Analysis
1. Where will your business be
located?
2. How will this location
enhance the sale of your product?
Accessible to major E/W and N/S
highways; Highway 86 averages
48,300 vehicles per day (Exec.
Summary info); neighborhood
matches target population.
3. What strategic advantages do
you have in this location?
High traffic area; complementary
neighborhood businesses.
4. Is there opportunity for
expansion? How?
Yes – into other Imperial County
communities. Future portable ice
shaver hopes to service events
on-site.
5. What are the neighboring
businesses? Do they complement
or detract from yours?
Directly convenient to business
workers; one of their first food
sightings at mealtimes.
Protected from new competition
due to lease contracts with office
buildings.
Yes – more carts downtown.
Restaurants, motels, city pool,
recreation center, gas station,
donut shop, churches, housing
developments. These
complement shave ice sales.
Business offices complement –
supply the consumers.
New drive-through building to be
built or purchased.
New carts to be purchased
(potential for 24 new contracts) at
$20,000 each.
Other vendors detract as
competitors.
6. Are building renovations
needed? At what cost?
7. Is the neighborhood stable?
Deteriorating? Changing? How?
Not discussed in detail – seems
stable.
8. Are there zoning
classifications for your business?
Not applicable.
Not discussed in detail – city
growth/activity expected to
remain stable.
Space lease contracts and option
program protection for carts.
ID Economics Performance Assessment
9. Describe customer access.
Via major highways – near
neighborhoods/businesses/school.
Convenient – indoor/outdoor
access. Carts directly on business
office property.
Marketing Category
Ice Dreams
Joe’s Redhots
Unit cost = $0.16
Unit food cost not given.
Selling Prices = $1.00, $1.25,
$1.50
Selling Prices = $2.00/hot dog;
other products not given.
Comparable.
Slightly higher.
Shave ice is a better quality
product for moderate prices.
Premium quality food; concern
for environment; freshest
products; hygienic services.
Price Determination
1. What will be the unit cost(s)
of your product?
2. How does your price compare
with your competitors?
3. Why will customers pay your
price?
4. What image will be projected
at this price?
5. What special advantages do
your customers get that is
included in this price?
It is an affordable frozen ice
product with better taste/quality
than other frozen treats.
Some special coupons for nearby
businesses; higher quality syrup.
“Satisfy yourself for $2.00 – You
deserve it!”
Healthier, high quality,
environmentally conscious
product; courteous service; often
offering bonus specials with
meals (e.g. free salad, coupons).
ID Economics Performance Assessment
Marketing Category
Ice Dreams
Joe’s Redhots
ID Economics Performance Assessment
Marketing Approach
1. Where (or from whom) do
your customers seek information
about purchasing your product?
2. Which media and promotions
(e.g. newspaper, TV, radio, fliers,
samples, etc.) are most suitable
for your advertising?
3. How will your image be
clearly and consistently conveyed
to potential buyers?
4. How will you evaluate the
effectiveness of each advertising
and promotional effort?
5. Will a sales staff be used?
How? How will they be
evaluated?
Fliers, newspapers, neighborhood
promotions, word of mouth.
Fliers, word of mouth, cart
signage and street presence.
Fliers and newspaper
advertisements for 1st 3 months.
Local newspapers, fliers, free
samples, cart signage/messages.
Highest quality shave ice in
Imperial County.
Free samples, coupons, bonus
days throughout year, cart
message reading “Satisfy
Yourself for $2.00 – You deserve
it!”
Not discussed – probable
evaluation based on whether or
not advertising helps meet/exceed
sales goals.
Not discussed – expected
sales/marketing done by existing
staff (those who also sell the
product).
Not discussed – probable
evaluation based on whether or
not advertising helps meet/exceed
sales goals.
Not discussed – expected
sales/marketing done by existing
staff (those who also sell the
product).
ID Economics Performance Assessment
ID Economics Performance Assessment