16 18 Students Guide

16_18_Students_Guide 22/3/05 6:41 pm Page 2
Student
Guide
16-18
Contents
A Acas and effective workplaces 6

B Boston Matrix 7
C Communication 8
D Development of a new product 9
E Entrepreneur 10
F Functions of an organisation 11
G Good customer service 12
H Hierarchy of needs 13
I Igor Ansoff’s Matrix 14
J Juggle 15
K Keep up to date 16
L Levels of response 17
M Managing quality 18
N Nestlé: developing a strategy 19
O Organisational culture 20
P Positioning 21
Q Qualitative 22
R Responsible production – sustainability 23
S Stakeholders 24
T Total Quality Management 25
U Unions 26
V Vision statement 27
W www.tt100.biz 28
X Xternal influences 29
Y You 30
Z ZZZZZZZzzzzz 31
For more information log on to

2
www.tt100.biz/students
Listings
Visit www.tt100.biz for Case Studies on these topics from the following organisations.
Aims and objectives Effective workplaces
Aims, objectives and values Enterprising managers
Ansoff’s matrix Ethical supply chain
Corporate Social Responsibility Ethics
Customer service Factors of Production
Developing new fuels Inclusion

3
Listings
Liability Ownership
Market research PESTLE/SLEPT analysis
Meeting changing needs Product portfolio
Meeting customers’ needs Quality
Mutuals Re-branding
New product development Recruitment and selection
Organisational structures Recruitment, selection and training

4
Listings
Recruitment, selection and training Sustainability
Re-positioning The sales function
Roles of departments Total quality management
Segmentation and customer needs Training
Stakeholders Training for growth
Support for business Unions

5
A Acas and effective workplaces
Acas aims to improve organisations and working life through better employment
relations. It achieves this by providing up-to-date information, independent advice
and high quality training. Acas works with employers and employees to solve
problems and improve performance.
Top Fact
Only 10% of Acas’ time is spent resolving disputes, the remainder is spent on
training and producing advice and information on developing a better workplace.

6
www.tt100.biz/acas
Boston Matrix
B
The Boston Matrix relates closely to product life cycles and identifies four classes of
products in an organisation’s portfolio. BIC manages its portfolio to meet
consumers’ needs. For a more detailed explanation of the different classes log on to
our website.
Market Share
High Low
Stars Problem children
successful products newly-launched products
at the growth stage Cristal Pocket Scents
Comfort Twin Lady
High
Market Growth
Cash Cows Dogs
mature products products in decline
generating significant returns Tough Beard
Cristal Ball
Low
For more detail on the Boston Matrix log on to

7
www.tt100.biz/bic
C Communication
The process where information is

exchanged between two parties
(sender and receiver). There are a
Postal Service
range of communications methods
available. Clear communication helps
to reduce the cost of tax collection,
Online
Face-to-face
which leaves additional money meetings
Communications
available for other government

Communication
spending projects – e.g. on schools. methods
The tax collection authorities must Telephone Television

communicate with businesses and
with their accountants, who handle
their tax affairs.
Exam Tip Radio Ambient
Barriers to communication is a frequent topic in examinations.
To read this Case Study log on to

8
www.tt100.biz/inland_revenue
Development of
a new product D
The process of bringing a new product to
the market is normally based on research
and development to meet the needs of
customers. Properly conducted market
research will identify the kinds of new,
improved products that consumers would
switch to if they become available. That
involves asking the right questions of the
right people, and interpreting their answers
thoroughly. In the past, manufacturers
produced products and then tried to sell them to consumers. Successful organisations
now find out what consumers want and then produce this product for them.
Gillette recognised that different segments of the market are seeking different product
benefits. So, over the years, it has sought to develop several product categories ranging
from popular disposable razors to comprehensive shaving systems. In the UK an
increasing number of men have switched from disposable razors to shaving systems;
this fuels the market demand for handles and replaceable blades.
Shaving market share breakdown
1989 Shaving systems Disposable razors

43% 57%
Shaving systems Disposable razors

2003 72% 28%
To see real product development in action log on to

9
www.tt100.biz/gillette
E Enterprising
managers
Entrepreneur – A person who spots opportunities for change in order to earn a reward
or profit. Philip Green’s style is probably best described as being firmly
entrepreneurial. He sees opportunities and is willing to take risks but only after he
has examined relevant data carefully. Green says of himself: "I am brave but I take
a view. It is an educated view. I am careful; I am not reckless." He constantly seeks
out new ideas and better ways of doing things. He also encourages others to use their
initiative and is renowned for his energy and for his attention to detail. He focuses
on every aspect of retailing from what stores actually stock to how the products are
laid out and displayed.
When selecting potential employees, Arcadia – one of Philip’s companies - is

looking for people who can demonstrate the following competencies or skills:
• working with people

• putting the customer first
• maximising own impact
• inspiring performance
• driving the business
• making the right choices.
These competencies are all enterprise related. They refer to individuals’ ability to
satisfy customers and move the business forward.
Exam Tip
You will come across enterprise and entrepreneurship when you look at business
start up. It also comes through in examination Case Studies when a business is
looking to expand. Make sure you can link the characteristics of entrepreneurship
with management styles to pick up analysis marks.

10
www.tt100.biz/arcadia
Functions of
an organisation F
Organisations are made up of different areas or functions. In order for the
organisation to operate efficiently the functions need to be able to work together to
achieve the organisation’s overall aims and objectives. The work of Kraft’s Sales
department or division is, therefore, crucial to the success of the business. The four
Ps of the Marketing Mix are important in discovering what consumers want:
Product - What types of products are consumers looking for?

Price - What price are they willing to pay?
Place - Where do they want to buy these products?
Promotion - What types of advertising and promotional activity will attract them?
The Marketing Mix comes to life within the Sales function.
Marketing Sales
Analyse customer Confirm whether these
needs to generate ideas are likely to sell
new product ideas
Feedback customer
requirements to
Marketing
Top Fact
Kraft Foods Inc. is the world’s second

largest food and beverage company
with revenues (total value of sales) in
2004 of over £18 billion.
To find out more about the functions of an organisation check out

11
www.tt100.biz/kraft
G Good customer service
Good customer service is

Building Hire
based on understanding and
meeting the needs of your A potential customer contacts Portakabin
customers. It is a vital part of
Quality Management. Here is
an example of a process to
Portakabin discusses the project with the
deliver good customer service customer and determines the precise
from Portakabin. requirements e.g. internal layout, furniture,
air-conditioning
Customer service can be the
key to developing a strategic
advantage in markets with Portakabin quotes a specification
and price within 24 hours
little product differentiation.
Portakabin and the customer finalise

the contract details
Portakabin delivers on the agreed date

and to agreed budget
Portakabin contacts customer to check

they are happy and deals with any difficulties
within 24 hours
Portakabin provides ongoing customer

support throughout the building hire.
For more detail on good customer service log on to

12
www.tt100.biz/portakabin
Hierarchy of needs
H
Abraham Maslow believed
needs can be organised in a Maslow’s
hierarchy. He argued that Hierarchy
of Needs Self
meeting these needs would
Actualisation
motivate people. The needs Pursue Inner Talent
build on one another, so you Creativity • Fulfilment
can’t move to the next level
until the needs of the level
below have been satisfied. Self Esteem
Achievement • Mastery
Recognition • Respect
When an employer like Polestar
Belonging - Love
demonstrates how much it Friends • Family • Spouse • Lover
values its employees through its
training programme, career Safety
Security • Stability • Freedom from fear
structure and opportunities,
these highly trained individuals Physiological
become increasingly motivated Food • Water • Shelter • Warmth
whilst meeting the market need.
Top Fact
Did you know the UK printing market is worth £14 billion a year!
To read this Case Study and more on Polestar go online to

13
www.tt100.biz/polestar
I Igor Ansoff’s Matrix
The business analyst Igor Ansoff outlined some important strategies for business
growth. He identified four key approaches to growing a business. Beiersdorf’s
development illustrates all four.
Ansoff ’s product/market expansion grid
Current products New products
Current Markets i. Market penetration ii. New product development
New Markets iii. Market development iv. Diversification
i Market Penetration: increasing market share for a firm’s products in its existing
markets. Several approaches help to achieve this, including product improvement;
updating and building/improving existing products.
ii New product development: developing new products for existing markets
iii Market development: finding and developing new markets for current product
lines. This option is most suitable when existing products require only minor
modifications to be suitable for new, overseas markets. It also helps if the product
life cycle is similar in the different markets that the business serves. This will not
always be the case.
iv Diversification: developing new product markets outside the existing business. A
firm will pursue this strategy (plan) when new markets are highly attractive. To
do so, it may switch resources from some of its existing markets that it believes
to be in permanent decline.
Exam Tip
Ansoff’s Matrix appears regularly on examinations. Check the website for exam
updates.
For more detail on Ansoff’s Matrix log on to

14
www.tt100.biz/beiersdorf
Juggle J
Juggle your time between work and play - carefully. Many students neglect their
studies to get an extra few hours’ paid work in. Think of the long term, do you want
to be doing that part-time job forever? In any case logging onto the website will save
you time by taking you to the exact topic you need. It will give you guidance and
up-to-date information in a format that is easy to take in and learn from. It also
allows you to test yourself to make sure you are prepared for that exam or even just to
show that you understood what you covered in class that day – check out the quizzes.
Remember you will only get out what you put in – so put in www.tt100.biz and start
making learning business studies easier.

15
K Keep
Keep up-to-date with all business studies development by logging onto the website.
There’s advice on examinations with practice questions and answers as well as
advice and support packs on pre-issued Case Studies.
The Case Studies come in a variety of formats to suit your needs.
You can have an exact 2000 word copy of what you see in the binder.
A summarised A4 version with all the important facts and theory.
Or, if you prefer an easier-to-read Case Study, there is a Brief Case. This is still A4
but with shorter sentences and less technical words.
Log on and have a look for yourself – pick the Case Study and topic that suits your
needs.
As you come up to an examination the Brief Case studies and shorter Case Studies
make excellent revision guides.
STUDENT GUIDES
Check out our student guides with hints
on levels of response, preparing for
exams, an A-Z of help including topic
summaries, definitions and much more.

16
Levels of response
L
If you can understand what an examiner is looking for in a paper, and appreciate
where the mark allocations are, it can make a major difference to your result.
Level 1 – Identify points (define)
Level 2 – Explains points (in context)
Level 3 – Points are analysed (case for; case against)
Level 4 – Points are evaluated (make a judgement).
Case Study material on real businesses is excellent for analysis. You can download
the studies in a variety of formats. Look for the links through the search facility on
the website to the area or topic you are studying at school. It couldn’t be easier.

17
M Managing quality
The British Standards Institution (BSI) provides a range of products and services that
assist in assuring high quality. The most successful modern companies manage to
identify their customers’ needs and create the processes that enable the business to
deliver them.
Customers
Give the customers Find out what

what they need the customers
need
Business
processes
The most important aspect of BSI’s

work is helping organizations to
develop customer focused management
systems which meet the ISO 9001
standard. This involves setting up
systems to ensure that processes are
customer focused. It also requires a
company to continually improve its
quality management system. From
2004, companies wishing to be
registered for the certificate must
conform to the latest version of the
standard – ISO 9001:2000 Quality
Management Systems Requirements.
For further explanation of managing quality check out

18
www.tt100.biz/bsi
Nestlé: developing
a strategy N
A strategy is the means by which an
organisation achieves particular 1867
ends. An agreed strategy answers the
question ‘By what means are we Henri Nestlé develops
going to achieve our objective?’ For an infant food
example, some of Nestlé’s recent
market research confirms that Ongoing development of
increasing numbers of consumers nutritious products
want to buy food products that
complement their healthy living
Market research becomes the heart
patterns. of new product development
Nestlé’s development of a strategy to

Combined with science and technology
promote Wellness is an evolution of in a research based company
the company’s original commitment
to nutrition and health.
2001
The Chief Executive emphasises
The Chief Executive emphasises
Nestlé’s move to becoming a Nutrition, Nestlé’s move to becoming a
Health and Wellness company Nutrition, Health and Wellness company
Exam Tip
Examiners are always looking for

students to apply analysis to their
work (there are more marks
available if you do this.) Log on to
see how Nestlé evaluates its
strategy.
To read this case study and more on Nestlé go online to

19
www.tt100.biz/nestle
O Organisational culture
Culture refers to an organisation’s key characteristics. It includes the shared beliefs

and the written and unwritten policies and procedures that determine the ways in
which the organisation and its people behave, in order to solve business problems
and meet business objectives.
It is possible to gain a feel for the culture of an organisation by looking around and
talking to people who work for it. At the heart of Travis Perkins’ culture is the
assertion that quality of service is paramount.
Culture can be a tricky topic area for students to understand.
To see how organisational culture works check out

20
www.tt100.biz/travis_perkins
Positioning
P
Positioning identifies
where an organisation High quality/performance
or product fits within Castrol’s
the market. It allows an position
analysis of competitors
Low-tech High-tech
to be carried out. The
map is drawn out by
selecting key variables
that differentiate brands Low quality/performance
within a market.
To this day Castrol’s name is synonymous (associated) with premium quality, high
performance and leading edge technology in lubrication. (see positioning map above).
Testing Times
What does a market map allow a firm to do?

Check your answer at www.tt100.biz/students
For more detail on positioning log on to

21
www.tt100.biz/castrol
Q Qualitative
Qualitative market research looks in detail at what motivates consumers’ attitudes

and habits. It involves working with relatively small focus groups to discover their
views about products or services.
For Philips, these were made up of consumers and professionals (trade and opinion
leaders, e.g. hospital surgeons who use its scanning equipment). Using qualitative
research makes it possible to find out a lot of detailed information e.g. current
perceptions of the company and its products, the types of new products and the
image that consumers would like to see Philips develop. The research helped Philips
develop its new positioning ‘Sense and Simplicity’.
Testing Times
What do you understand by the term ‘Quantitative research’?

For further explanation of research go onto

22
www.tt100.biz/philips
Responsible production -
sustainability R
A business that operates responsibly is
one that is committed to helping meet
the needs of society today, while
respecting the needs of future
generations. To be truly sustainable,
the chocolate industry’s supply chain
initiatives focus on 3 key areas:
Helping cocoa growers to be better

informed creates:
• economic benefits - better returns for growers and chocolate manufacturers

• environmental benefits - encouragement of bio-diversity because cocoa growing
does not involve plantation-type agriculture, and helps
the proliferation of species
• social benefits - valued, traditional ways of life are sustained but in a
way that fosters better economic returns for the cocoa
farmers, their families and communities.
Top Fact
Worldwide, farmers grow around three

million tonnes of cocoa beans each
year. Of these, about 700,000 tonnes
go to the USA. UK manufacturers
import about 215,000 tonnes.
To read this Case Study and more on BCCCA log on to

23
www.tt100.biz/bccca
S Stakeholders
A stakeholder is any
individual or group that Stakeholders’ viewpoints
is affected in some way
Shareholders
by a company’s activities. (a healthy return on
investment; effective
risk management)
Governments
Not all stakeholders have Employees
(tax revenues,
(jobs, training,
sustainable development
the same priorities. rising living standards)
process)
Employees interested in Examples
of Anglo
pay and working American’s
Communities stakeholders Non-governmental
(jobs; opportunities and their organisations
conditions may take a for social and human interests (partnership in
development) development work)
different stance from that
of shareholders interested
Future
in profits and dividends generations Customers/
(sensitive use of Suppliers
or customers interested scarce resources) (fair dealing)
both in good quality and

low prices. Different
governments will take varying views on how far they should benefit from a
company’s presence in their country, and in what ways.
Testing Times
What potential conflict could you see occurring between shareholders and customers?
For more details on stakeholders log on to

24
www.tt100.biz/anglo_american
Total Quality Management

T
Total Quality Management (TQM) is a strategy for achieving continuous
improvements in all areas of an organisation’s operation. Corus pays particular
attention to the testing of its products because of its focus on quality. It adopts a Total
Quality Management approach that aims to ‘get it right first time’. By insisting on
thorough testing at every stage it ensures that a product fulfils its requirements when
it is launched.
When working on Assure, for example, Corus tested three different anti-bacterial
additives from three different solution providers before making the final choice.
Testing Times
How can a TQM approach reduce costs?

To learn more about Assure visit

25
www.tt100.biz/corus
U Unions
A union is an organisation that represents and aims to protect the interests and rights
of its members. Its work is broad-based. For example, UNISON looks to promote:
• Health and safety at work. For example, employers must conduct a special risk
assessment for 16 and 17 year old workers, whose inexperience puts them at
greater risk.
• Equality. Many unions look to ensure that men and women doing the same work
are paid the same rate. On average women earn less than men.
• A healthy balance between work and leisure known as work-life balance. This
involves unions in campaigning, for example, on legal limits on working hours,
holiday entitlements, maternity and paternity leave, and pensions.
Four reasons for joining a union
In a unionised workplace:
• Average earnings are around 8% higher.
• The average trade union member receives 29 days annual holiday compared with
23 days for non-unionised workers.
• Unionised workplaces have health and safety officers to ensure employers keep
workers safe.
• Workplaces with union recognition are 20% more likely to benefit from an equal
opportunities policy.
For further explanation of unions check out

26
www.tt100.biz/unison
Vision statement
V
A Vision statement outlines where the business wants to be in the future. It is
normally followed by a mission statement, then aims and objectives. Michelin’s
mission is ‘to make a sustainable contribution to progress in the mobility of people
and goods by constantly enhancing freedom of movement, safety, efficiency and
pleasure when on the move.’
The company intends to achieve this goal through the following means:
• constant improvement of its products’ technical performance and its tyre-related
services’ quality
• alongside its core activities, development of new technologies or range of
products to support sustainable mobility
• ongoing active role both in public debate on future modes of transport and in
researching relevant ways for transition towards sustainable mobility
• delivering appropriate messages to its customers, enabling them to adopt sound
purchasing behaviours and positive attitudes towards road safety and
environmental issues.
Vision statements are sometimes referred to as road maps for an organisation.
Michelin images: Copyright DPPI/Michelin
To read this Case Study and more on Michelin log on to

27
www.tt100.biz/michelin
W www.tt100.biz
www.tt100.biz – for all your Business Studies information
Differentiated to suit all needs and abilities and available online, Case Studies are
available at three levels:
• full 2000 word versions as those in the binder
• summarised - 500 word - versions
• Brief Cases - 500 word versions - with shorter sentences and less technical words.
Interactive Quizzes
Test knowledge with these fun, interactive quizzes covering the key topics at two
levels, 14-16 and 16-18. Use them with the Case Studies or on their own as revision
- it’s up to you.
Text Book Theory

Save yourself time by checking out the theory whilst you’re on the site.
Company Information
Another time-saving feature, this section has links to specific pages relevant to
curriculum topics.
Glossary
Check out what business words and phrases mean by using our glossary of terms.

28
X-ternal influences
X
This looks at any factor
outside the business or Diagram to show elements of PESTLE analysis
Nature of Risk
organisation that can
impact and affects its P Political
operations. Businesses that E Economic
are keen to track changes
taking place in their S Social
business environment may T Technological

use a PESTLE analysis. L Legal
PESTLE is an analytical tool
that can help organisations to
E Environmental
create a strategy for risk

management. It does this by classifying risks into different categories.
Log on to tt100.biz for a full description of these factors and how they impact on
Lloyds.
Top Tip
Reference: wherever possible, for higher level response answers, cross reference
your suggestions with theory to support your responses.
To find out more about external influences go to

29
www.tt100.biz/lloyds
Y You
You should probably be doing some revision for your examinations. Most students
have a problem with completing the examination in the time given. As a general rule
you should work on a mark a minute. Ensure you practice this; anyone can find an
hour and a half to go over a past paper each week.
Just reading theory and business books will help to a point, but seeing how it really
works will stick in your memory much better. The Times 100 Case Studies are
written and designed to help you see how theory works in the real business world.
Start making your own revision guides up. Pick out the parts from the Case Studies
which interest and stimulate you. Mind-mapping topics is a really good way to
remember key areas. Look at the following - you can develop this as far as you need
to. A Case Study like Arcadia will help you.
Autocratic
Democratic
Characteristics
Management Theory
Styles
Paternalistic
Type of
organisation

30
ZZZZZZZZZzzzzzzzzz
Z
Make sure you get plenty of rest before your exams. This means don’t leave the
revision too late and try and cram it all in the night before. Research shows that little
and often means you learn and remember more.
Make sure you plan your time. Draw up a revision timetable which also build in time
for when you are not studying. Exercise and fresh air are equally important and keep
your body in shape as The Times 100 will keep your mind in shape.
Starting revision early will ensure you don’t put yourself under excessive pressure and
will allow you to identify topic areas that you are weak on or find difficult to understand.
By identifying and tackling them early on you won’t be worrying about them and don’t
forget you can always ask your teacher for advice and guidance.
Don’t forget simple things such as keeping yourself hydrated can make a massive
difference. So drink plenty of water!
www.tt100.biz

31
Something new
for Edition 10
At the bottom of our web pages you will
find a magnifying glass.
Behind some of the magnifying glasses there is a

hidden letter. Collect the letters and re-arrange them
to spell a well-known business studies term.
Once you have registered your answer on our

competition page, you will be asked a simple question,
connected to the term.
This will ensure your entry into our

competition prize draw, where one lucky
winner will receive vouchers for the High
Street store of their choice.
Go to www.tt100.biz and start searching today.
Good luck!

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16_18_Students_Guide 22/3/05 6:41 pm Page 2

A Acas and effective workplaces 6

For more information log on to

Aims, objectives and values Enterprising managers

Ansoff’s matrix Ethical supply chain

Corporate Social Responsibility Ethics

Customer service Factors of Production

Developing new fuels Inclusion

For more information log on to

Market research PESTLE/SLEPT analysis

Meeting changing needs Product portfolio

Meeting customers’ needs Quality

New product development Recruitment and selection

Organisational structures Recruitment, selection and training

For more information log on to

Recruitment, selection and training Sustainability

Re-positioning The sales function

Roles of departments Total quality management

Segmentation and customer needs Training

Stakeholders Training for growth

Support for business Unions

For more information log on to

A Acas and effective workplaces

For more information log on to

For more detail on the Boston Matrix log on to

The process where information is

available for other government

The tax collection authorities must Telephone Television

Exam Tip Radio Ambient

Barriers to communication is a frequent topic in examinations.

To read this Case Study log on to

Shaving market share breakdown

1989 Shaving systems Disposable razors

Shaving systems Disposable razors

To see real product development in action log on to

When selecting potential employees, Arcadia – one of Philip’s companies - is

• working with people

For more information log on to

Product - What types of products are consumers looking for?

The Marketing Mix comes to life within the Sales function.

Kraft Foods Inc. is the world’s second

To find out more about the functions of an organisation check out

G Good customer service

Good customer service is

Portakabin and the customer finalise

Portakabin delivers on the agreed date

Portakabin contacts customer to check

Portakabin provides ongoing customer

For more detail on good customer service log on to

To read this Case Study and more on Polestar go online to

I Igor Ansoff’s Matrix

Ansoff ’s product/market expansion grid

Current products New products

Current Markets i. Market penetration ii. New product development

New Markets iii. Market development iv. Diversification

For more detail on Ansoff’s Matrix log on to

For more information log on to

The Case Studies come in a variety of formats to suit your needs.

A summarised A4 version with all the important facts and theory.

For more information log on to

Level 1 – Identify points (define)

Level 2 – Explains points (in context)

Level 3 – Points are analysed (case for; case against)

Level 4 – Points are evaluated (make a judgement).