NATIONAL QUALIFICATIONS CURRICULUM SUPPORT

Business Management
Business Information and ICT
Student Notes

[INTERME IATE !"

MORALIT$ IN T%E MO ERN &ORL ' %IN UISM (INT #)%* RMPS+

, Learning and Tea-.ing S-ot/and #001

T.e S-ottis. Qua/ifi-ations Aut.orit2 regu/ar/2 re3ie4s t.e arrangements for Nationa/ Qua/ifi-ations5 Users of a// NQ su66ort materia/s* 4.et.er 6u7/is.ed 72 LT S-ot/and or ot.ers* are reminded t.at it is t.eir res6onsi7i/it2 to -.e-8 t.at t.e su66ort materia/s -orres6ond to t.e re9uirements of t.e -urrent arrangements5

Acknowledgements Learning and Tea-.ing S-ot/and gratefu//2 a-8no4/edge t.is -ontri7ution to t.e Nationa/ Qua/ifi-ations su66ort 6rogramme for Business Management5 , Learning and Tea-.ing S-ot/and #00: T.is resour-e ma2 7e re6rodu-ed in 4.o/e or in 6art for edu-ationa/ 6ur6oses 72 edu-ationa/ esta7/is.ments in S-ot/and 6ro3ided t.at no 6rofit a--rues at an2 stage5

Contents
Introduction Outcome 1 Sour-es of information T26es of information Uses of information Users of information Outcome 2 Uses of ICT Benefits and -osts of ICT Business soft4are ;

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BUSINESS INFORMATION AN ICT (INTERME IATE !* BUSINESS MANA?EMENT+

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INTRODUCTION

Introduction
T.is 6a-8 -ontains student notes to su66ort t.e /earning and tea-.ing 6ro-ess for 6art of Business Management (Int !+5 It -o3ers materia/ from Out-omes ! and # of t.e Business Information and ICT (Int !+ unit of t.e -ourse* 4.i-. re/ate to t.e fo//o4ing areas@ Business Information Sour-es of information T26es of information Uses of information in 7usiness Users of information and Information and Communication Technolog !ICT" Uses of ICT Benefits and -osts of ICT Business soft4are A#out this $ack T.e 6a-8 -onsists of student notes 4.i-. are intended as a A-ore teBtC for students and 6ro3ide t.e 7asi- materia/ for t.ese as6e-ts of Business Management at Intermediate !5 Students 4.o .a3e assimi/ated t.is materia/ s.ou/d .a3e t.e re9uisite 8no4/edge to ena7/e t.em to a-.ie3e a satisfa-tor2 /e3e/ of 6erforman-e in t.is area of t.e -ourse5 %o4e3er* de6ending on t.e -a6a7i/ities of a 6arti-u/ar grou6* tea-.ers and /e-turers ma2 4is. to 6ro3ide additiona/ materia/ to .e/6 students a-.ie3e as .ig. a mar8 as 6ossi7/e5 In genera/* t.e student notes .a3e 7een organised in a 4a2 t.at mat-.es t.e order of t.e -ourse -ontent as set out in t.e Arrangements for Business Management (Int !+5 T.is -oin-ides 4it. ot.er materia/ for t.e -ourse su-. as t.e Course P/anner and t.e Student A-ti3ities for Intermediate !5

BUSINESS INFORMATION AN ICT (INTERME IATE !* BUSINESS MANA?EMENT+ , Learning and Tea-.ing S-ot/and #00:

INTRODUCTION

Using this $ack T.e student notes -an 7e used in a num7er of 4a2s* de6ending on tea-.er)/e-turer 6referen-e5 T.e2 -an 7e gi3en out as .andouts 4.i-. students ma2 read in -/ass or as .ome4or85 T.is ma2 7e at t.e 7eginning of a to6i- or to -onso/idate /earning on-e a to6i- .as 7een -om6/eted5 T.e notes are -om6/ementar2 to t.e student a-ti3ities for Business Management at Intermediate ! and -ou/d 7e used in -onDun-tion 4it. t.em5 T.is 6a-8 is designed to stand a/one 7ut is a/so -om6/ementar2 to t.e student notes at Intermediate # /e3e/5 In t.is -ase* t.e re/e3ant se-tion is Business Information and ICT5 As far as 6ossi7/e* gi3en t.e differen-e in t.e -ourse -ontent 7et4een t.e t4o /e3e/s* t.e format of t.is 6a-8 mat-.es t.e /a2out of t.e 6a-8 at Intermediate # /e3e/5 T.is s.ou/d .e/6 tea-.ers and /e-turers 4.o are re9uired to dea/ 4it. a 7iE/e3e/ grou6 and students 4.o mo3e from one /e3e/ to anot.er5 In using t.e 6a-8* students s.ou/d 7e en-ouraged to re/ate t.e materia/ to an2 8no4/edge t.e2 ma2 .a3e of 7usiness and to de3e/o6ments in t.e /o-a/ and nationa/ 7usiness en3ironment5 T.is -an .e/6 to i//ustrate and eBem6/if2 t.e materia/ in t.e student notes as 4e// as 8ee6ing it -urrent and u6 to date5

BUSINESS INFORMATION AN ICT (INTERME IATE !* BUSINESS MANA?EMENT+

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OUTCO%& 1

Outcome 1' Business information and ICT

In order for 7usinesses to o6erate effi-ient/2 and ma8e good de-isions* t.e2 re/2 on good information to .e/6 t.em5 %ere are t4o im6ortant definitions@ Data' T.is is a -o//e-tion of fa-ts or 9uantities t.at .as 7een 6ut toget.er in some 4a25 T.is is data t.at .as 7een 6ro-essed into a 4a2 to assist 6eo6/e 4.en ma8ing de-isions and 6/anning for t.e future5

Information'

(ources of information
Information -omes from four different sour-es5 T.ese are@ Internal information T.is is information t.at -omes from an organisationCs o4n re-ords5 T.is -ou/d 7e its finan-ia/ re-ords* -ustomer re-ords* sa/es figures* et-5 &)ternal information T.is is information t.at -omes from outside an organisation5 It -ou/d 7e a ne4s6a6er arti-/e* go3ernment re6ort or information o7tained from mar8et resear-.5

BUSINESS INFORMATION AN ICT (INTERME IATE !* BUSINESS MANA?EMENT+ , Learning and Tea-.ing S-ot/and #00:

OUTCO%& 1

*rimar information T.is is firstE.and information 4.i-. a 7usiness .as gat.ered for its o4n use* 72 inter3ie4ing 6eo6/e or .anding out 9uestionnaires5 (econdar information T.is information is gat.ered from 6u7/is.ed sour-es + su-. as 7oo8s* magaGines* ne4s6a6ers and t.e internet5

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BUSINESS INFORMATION AN ICT (INTERME IATE !* BUSINESS MANA?EMENT+

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T $es of information
Information -an 7e 6resented in a 3ariet2 of different 4a2s5 Some are s.o4n 7e/o4@ ,ritten T.is ma2 7e 6resented in t.e form of a /etter* re6ort* eEmai/* memo or a noti-e5 Benefits of written information are : $ou -an refer 7a-8 to it5 $ou -an 8ee6 it as a re-ord5 Oral T.is is information t.at is -ommuni-ated 72 3oi-e ' from te/e6.one -a//s* meetings* 6resentations* -on3ersations and dis-ussions5 Benefits of oral information are: $ou get an instant res6onse5 $ou -an .a3e a t4oE4a2 -on3ersation5 *ictorial T.is is information in t.e form of 6i-tures or 6.otogra6.s5 Benefits of pictorial information are : It is eas2 to remem7er5 It is eas2 to em6.asise a 6oint using a 6i-ture or 6.otogra6.5 AOne 6i-ture is 4ort. a t.ousand 4ords5C -ra$hical T.is is information in t.e form of gra6.s or -.arts (6ie -.arts* /ine gra6.s* 7ar gra6.s+5 Benefits of graphical information are : It is a good 4a2 to dis6/a2 -om6/i-ated information5 $ou -an em6.asise -ertain 6oints and ma8e -om6arisons easi/25 Numerical T.is is information t.at is dis6/a2ed in num7er form5 Benefits numerical information are : It a//o4s an organisation to ma8e finan-ia/ fore-asts5 $ou -an 6erform -a/-u/ations 72 using a s6reads.eet 6rogram5

BUSINESS INFORMATION AN ICT (INTERME IATE !* BUSINESS MANA?EMENT+ , Learning and Tea-.ing S-ot/and #00:

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Uses of information in #usiness

Information is usefu/ to an organisation* 7e-ause it 4i// 7e a7/e to -om6are t.e a-tua/ 6erforman-e of t.e organisation against 4.at 4as 7udgeted for5 T.e organisation -an use re-ords of 6re3ious 2ears to ma8e -om6arisons5 It -an a/so use re6orts from mar8et resear-. -om6anies to /oo8 at -.anges in t.e mar8et5 Organisations must a/so 8ee6 re-ords of t.e staff t.at 4or8 for t.em as t.e2 .a3e a /ega/ dut2 to -a/-u/ate in-ome taB and 7enefits -on-erning t.eir staff5 %easuring costs and e)$enditure An organisation uses information to -om6are its 6erforman-e against 4.at it 7udgeted for5 B2 /oo8ing at its finan-ia/ re-ords* an organisation -an see if its -osts are more t.an its eB6enditure5 If t.is is t.e -ase* t.en it must ta8e some form of a-tion to remed2 t.e situation5 From its finan-ia/ re-ords it -an a/so see .o4 4e// its sa/es are doing and .o4 mu-. 6rofit or /oss t.e 7usiness is ma8ing on 6arti-u/ar items5 Information on an organisationCs sa/es -an 7e used to ma8e -om6arisons 4it. 6re3ious 2earsC sa/es5 (taff records A// organisations must 8ee6 re-ords of t.e staff t.at t.e2 em6/o25 T.ese re-ords 4i// -ontain some of t.e fo//o4ing 6arti-u/ars@ 4.en ea-. 6erson Doined t.e organisation 6arti-u/ars of name* address* 9ua/ifi-ations* et-5 t.e de6artment in 4.i-. t.e2 are em6/o2ed and t.eir Do7 tit/e t.e num7er of da2s t.e2 .a3e 7een a7sent due to i//ness t.eir .o/ida2 entit/ement t.e training -ourses 4.i-. t.e2 .a3e ta8en 6art in5

Decision making Managers .a3e to ma8e im6ortant de-isions5 In order to ma8e t.e rig.t de-ision* information must 7e as a--urate as 6ossi7/e so t.at -orre-t de-isions are made 4.en t.e information is used5

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Users of information
&e a// use information for one t.ing or anot.er5 For t.e 7est de-isions to 7e made* information .as to 7e u6 to date and a--urate5 In 7usiness* t.e undernoted 6eo6/e ma2 use information for t.e fo//o4ing 6ur6oses5 %anagers' t.e2 4i// use information to ma8e informed de-isions5 T.is ma2 7e gat.ered from man2 different sour-es de6ending on t.e t26e of de-ision re9uiring to 7e made5 Owners' T.e2 ma2 use information from ot.er simi/ar 7usinesses5 For eBam6/e* t.e2 ma2 -.e-8 on t.e 6rodu-ts 4.i-. ot.er firms are offering in order to ensure t.at t.eir 6rodu-t is as good5 T.e2 -an gain t.is information from t.e internet or ot.er sour-es5 Creditors are 6eo6/e t.at an organisation o4es mone2 to5 Creditors use information su-. as a firmCs finan-ia/ a--ounts to see 4.et.er t.e2 are in a .ea/t.2 6osition5 T.is a//o4s -reditors to de-ide 4.et.er or not to offer -redit to an organisation5 Creditors ma2 re9uest 6a2ment in ad3an-e for goods if t.e2 fee/ t.at t.e organisation is not 3er2 re/ia7/e5 &m$lo ees use information to find out t.ings a7out t.e organisation5 T.e2 ma2 -onsu/t t.e organisationCs .and7oo8 or -.e-8 ne4s/etters or noti-e 7oards for information5 T.e2 ma2 a/so -onsu/t 6ast re-ords if t.e2 are as8ed to -.e-8 information for a s6e-ifi6ur6ose5 Citi.ens use information to -.e-8 t.ings out5 T.e2 ma2 use 6ri-e /ists to -.e-8 on 6ri-es t.at different organisations -.arge for -ertain goods5 T.e2 ma2 use ne4s6a6ers* magaGines* trade Dourna/s* -ata/ogues and t.e internet to find out information on a 4ide range of fa-tors5

BUSINESS INFORMATION AN ICT (INTERME IATE !* BUSINESS MANA?EMENT+ , Learning and Tea-.ing S-ot/and #00:

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OUTCO%& 2

Outcome 2' Information and Communications Technolog !ICT"

ICT is t.e term used to des-ri7e a// t.e different te-.no/ogies t.at eBist5 T.ese te-.no/ogies are used 72 organisations 7e-ause t.e2 6ro3ide su-. a /ot of usefu/ information 7ot. 9ui-8/2 and effi-ient/25 Listed 7e/o4 are t.e most -ommon te-.no/ogies used ' Internet T.is a//o4s organisations to .a3e a--ess to a 4ide range of information5 It a/so a//o4s t.em to ad3ertise and se// t.eir 6rodu-ts 4or/d4ide5 Man2 organisations design t.eir o4n 4e7sites to attra-t -ustomers5 &/mail Users .a3e t.eir o4n mai/7oB and -an -.e-8 t.eir mai/ and send messages to ot.er -om6uter mai/7oBes5 EEmai/ 6ro3ides instant -ommuni-ation and a user -an send t.e same message to a num7er of different 6eo6/e5 0ideoconferencing T.is a//o4s 6eo6/e in different to4ns and -ountries to .o/d meetings 4it.out .a3ing to tra3e/ /ong distan-es5 A -om6uter /in8 is set u6 7et4een t.e different /o-ations5 Hideo-onferen-ing sa3es 6eo6/e tra3e//ing /ong distan-es and a/so sa3es on a--ommodation -osts5 &*O( EPOS stands for E/e-troni- Point of Sa/e and is used 72 most stores 4.en -ustomers ma8e 6ur-.ases5 Instead of using a-tua/ mone2 for goods* -ustomers 6resent t.eir 7an8 -ards to t.e store5 T.is sa3es t.e -ustomer from -arr2ing /arge amounts of mone2 and it a/so means t.at t.e retai/er re-ei3es 6a2ment for 6ur-.ases 9ui-8/25

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OUTCO%& 2

Benefits and costs of ICT

T.e main -osts and 7enefits of ICT are s.o4n in t.e fo//o4ing ta7/e Benefits of ICT Produ-ti3it2 -an 7e in-reased5 In-reased s6eed of 4or8 Im6ro3es a--ura-2 as -om6uters tend to ma8e fe4er mista8es t.an .umans5 Communi-ation is 9ui-8er5 Sa3es /a7our -osts as fe4er 4or8ers ma2 7e re9uired5 Costs of ICT Initia/ -ost of insta//ing t.e e9ui6ment5 Cost of training staff to use ICT5 Some staff ma2 fee/ t.eir Do7s are t.reatened 7e-ause ma-.ines no4 do t.e 4or85 If e9ui6ment 7rea8s do4n t.is -an resu/t in 4or8 .a3ing to 7e sto66ed unti/ it is fiBed5 Ma2 redu-e staff moti3ation5 T.is -an .a66en if staff fee/ t.at ICT .as e/iminated 6ersona/ -onta-t5

BUSINESS INFORMATION AN ICT (INTERME IATE !* BUSINESS MANA?EMENT+ , Learning and Tea-.ing S-ot/and #00:

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OUTCO%& 2

Business software
&ord 6ro-essing* s6reads.eets* data7ases and 6resentation 6a-8ages are t.e most -ommon/2 used soft4are in 7usinesses5 T.e ta7/e 7e/o4 des-ri7es t.em and t.eir 8e2 features5 (oftware $ackage ,ord Descri$tion 1e features Formatting -ommands a//o4 2ou to de/ete teBt* mo3e and -o62 teBt* under/ine* em7o/den* s6e//E-.e-8* and sear-. and re6/a-e5 It a/so .as a mai/E merge fa-i/it2 t.at a//o4s information from a data7ase to 7e merged into a 4ordE6ro-essing do-ument5 T.e2 6erform -a/-u/ations su-. as adding* mu/ti6/2ing* di3iding* a3eraging* et-5 T.e2 a/so a//o4 2ou to ma8e fore-asts 72 6erforming A4.atE ifC s-enarios5 T.e2 -an a/so 6rodu-e -.arts and gra6.s of -a/-u/ations5 T.ese are a7/e to sear-. for s6e-ifiinformation5 T.e2 sort re-ords into order (numeri-a/* date or a/6.a7eti-a/+5 T.e2 -an 6rodu-e re6orts5 T.e2 -an 6erform -a/-u/ations 4it.in re-ords su-. as 4or8ing out t.e 7a/an-e of sto-8 at a s6e-ifi- time5 T.e -om6uter -an 7e /in8ed to an o3er.ead 6roDe-tor 4.ere information is dis6/a2ed on s-reen and s.o4n to a 4ide audien-e5 T.e use of sound -an a/so 7e used to en.an-e t.e 6resentation5

T.is a//o4s 2ou to $roces -reate /etters* memos* sing re6orts* minutes of meetings* et-5

($readsheets

T.ese are e/e-troni4or8s.eets t.at a//o4 2ou to ma8e -a/-u/ations5

Data#ases

T.ese are e/e-tronifi/ing s2stems 4.i-. -an 7e used to store re-ords of staff* -ustomers* su66/iers* et-5

*resentation $acka ges

&e// dis6/a2ed 6resentations su-. as 6i-toria/* numeri-a/ and gra6.i-a/ information -an 7e s.o4n using Po4erPoint5 Presentation 6a-8ages are usefu/ for staff training 6ur6oses5

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BUSINESS INFORMATION AN ICT (INTERME IATE !* BUSINESS MANA?EMENT+

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