HND Brochure

BTEC
Edexcel Level 4
BTEC Higher Nationals in Business
Issue 2
September 2004
Guidance and units

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London Qualifications is one of the leading examining and awarding bodies in the UK and
throughout the world. It incorporates all the qualifications previously awarded under the
Edexcel and BTEC brand. We provide a wide range of qualifications including general
(academic), vocational, occupational and specific programmes for employers.
Through a network of UK and overseas offices, our centres receive the support they need to
help them deliver their education and training programmes to learners.
For further information please call Customer Services on 0870 240 9800, or visit our website at
www.edexcel.org.uk

References to third-party material made in this specification are made in good faith. London
Qualifications does not endorse, approve or accept responsibility for the content of materials,
which may be subject to change, or any opinions expressed therein. (Material may include
textbooks, journals, magazines and other publications and websites.)

Authorised by J im Dobson
Prepared by Susan Hoxley
Publications Code B014393
All the material in this publication is copyright
London Qualifications Limited 2004

EDEXCEL LEVEL 4 BTEC HIGHER NATIONALS
IN BUSINESS

BTEC Higher National Certificate in Business
BTEC Higher National Certificate in Business (Finance)
BTEC Higher National Certificate in Business (Management)
BTEC Higher National Certificate in Business (Marketing)
BTEC Higher National Certificate in Business (Human Resource
Management)
BTEC Higher National Certificate in Business (Law)
BTEC Higher National Certificate in Business (E-Business
Strategies)
BTEC Higher National Certificate in Business (Information
Technology)

BTEC Higher National Diploma in Business
BTEC Higher National Diploma in Business (Finance)
BTEC Higher National Diploma in Business (Management)
BTEC Higher National Diploma in Business (Marketing)
BTEC Higher National Diploma in Business (Human Resource
Management)
BTEC Higher National Diploma in Business (Law)
BTEC Higher National Diploma in Business (E-Business Strategies)
BTEC Higher National Diploma in Business (Information
Technology)

Contents

Qualification titles covered by this specification 1
Edexcel qualifications in the National Qualifications
Framework 2
Introduction 3
Structure of the qualification 3
BTEC Higher National Certificate 3
BTEC Higher National Diploma 3
Key features 35
Aims of the qualification 35
Professional body recognition 36
National Occupational Standards 36
Qualification Requirement 36
Higher-level skills 37
BTEC Higher National Certificate 37
BTEC Higher National Diploma 38
Teaching, learning and assessment 38
Unit format 38
Learning and assessment 40
Grading Higher National units 40
Grade descriptors 42
Achieving a pass on a BTEC Higher National qualification 44
Accreditation of Prior Learning (APL) 44
Quality assurance 44
Centre and programme approval 44
Monitoring centres internal quality systems 45
Independent assessment 45
Supporting consistency and appropriateness of centre assessor decisions 45
Independence in confirmation of certificated outcomes 46
Programme design and delivery 46
Mode of delivery 46
Resources 47
Delivery approach 47
Meeting local needs 48
Locally-devised specialist units 48
Limitations on variations from standard specifications 48
Access and recruitment 48
Restrictions on learner entry 49
Learners with particular requirements 49
The wider curriculum 49
Spiritual, moral, ethical, social and cultural issues 50
Environmental issues 50
European developments 50
Health and safety issues 50
Equal opportunities issues 50
Useful publications 50
Professional body contact details 51
How to obtain National Occupational Standards 51
Professional development and training 52
Further information 52
Core units 53
Unit 1: Marketing 55
Unit 2: Managing Financial Resources and Decisions 61
Unit 3: Organisations and Behaviour 67
Unit 4: Business Environment 73
Unit 5: Common Law I 79
Unit 6: Business Decision Making 85
Unit 7: Business Strategy 91
Unit 8: Research Project 97
Specialist units 103

Finance 105
Unit 9: Management Accounting: Costing and Budgeting 107
Unit 10: Financial Reporting 113
Unit 11: Financial Systems and Auditing 119
Unit 12: Taxation 123
Management 127
Unit 13: Managing Professional Development 129
Unit 14: Working with and Leading People 133
Unit 15: Managing Activities to Achieve Results 139
Unit 16: Managing Communications, Knowledge and Information 145
Marketing 151
Unit 17: Marketing Intelligence 153
Unit 18: Advertising and Promotion 159
Unit 19: Marketing Planning 165
Unit 20: Sales Planning and Operations 171
Human Resource Management 177
Unit 21: Human Resources Management 179
Unit 22: Managing Human Resources 185
Unit 23: Human Resources Development 191
Unit 24: Employee Relations 197
Law 203
Unit 25: English Legal System 205
Unit 26: Business Law 211
Unit 27: Common Law II 217
Unit 28: European Law 223
E-Business Strategies 229
Unit 29: Introduction to the Internet and E-Business 231
Unit 30: Internet Marketing 237
Unit 31: E-Business Operations 245
Unit 32: E-Business Planning and Implementation 251
Information Technology 257
Unit 33: Information Systems 259
Unit 34: Networking Concepts 263
Unit 35: Multimedia Design and Authoring 267
Unit 36: Website Design 273
Unit 37: Networking Technology 279
Unit 38: MS Office Solution Development 285
Unit 39: Systems Analysis 293
Further specialist units 297
Unit 40: Purchasing 299
Unit 41: Purchasing Development 307
Unit 42: Quality Management 313
Unit 43: Small Business Enterprise 321
Unit 44: Operations Management 327
Unit 45: European Business 333
Unit 46: Employment Law 337
Unit 47: Company Law 343
Unit 48: Administrative Practices and Procedures 349
Unit 49: Financial Services 355
Unit 50: Insurance 359
Unit 51: Investment 359
Unit 52: Industry Experience 359
Unit 53: Contemporary Issues in Marketing Management 359
Unit 54: Computer Platforms 359
Unit 55: Human Computer Interface 359
Unit 56: Project Management 359
Unit 57: Administrative Services 359
Unit 58: Business Psychology 359
Unit 59: Business Ethics 359
Unit 60: Environmental Management 359
Unit 61: Facilities Operations 359
Unit 62: Property Law 359

Annex A 359
Qualification codes 359
QCA codes 359
Edexcel codes 359
QCA and Edexcel codes 359
Annex B 359
Qualification Requirement 359
Annex C 359
Wider curriculum mapping 359
Annex D 359
Mapping with NVQs 359

B014393 Guidance and units Edexcel Level 4 BTEC Higher Nationals in Business
Issue 2 September 2004
1
Qualification titles covered by this specification
Edexcel Level 4 BTEC Higher National Certificate in Business
Edexcel Level 4 BTEC Higher National Certificate in Business (Finance)
Edexcel Level 4 BTEC Higher National Certificate in Business (Management)
Edexcel Level 4 BTEC Higher National Certificate in Business (Marketing)
Edexcel Level 4 BTEC Higher National Certificate in Business (Human Resource
Management)
Edexcel Level 4 BTEC Higher National Certificate in Business (Law)
Edexcel Level 4 BTEC Higher National Certificate in Business (E-Business Strategies)
Edexcel Level 4 BTEC Higher National Certificate in Business (Information Technology)

Edexcel Level 4 BTEC Higher National Diploma in Business
Edexcel Level 4 BTEC Higher National Diploma in Business (Finance)
Edexcel Level 4 BTEC Higher National Diploma in Business (Management)
Edexcel Level 4 BTEC Higher National Diploma in Business (Marketing)
Edexcel Level 4 BTEC Higher National Diploma in Business (Human Resource
Management)
Edexcel Level 4 BTEC Higher National Diploma in Business (Law)
Edexcel Level 4 BTEC Higher National Diploma in Business (E-Business Strategies)
Edexcel Level 4 BTEC Higher National Diploma in Business (Information Technology)

These qualifications have been accredited to the National Qualifications Framework (NQF). The
NQF (QANs) for these qualifications are listed in Annex A.
These qualification titles are as they will appear on the learners certificate. Learners need to be
made aware of this when they are recruited by the centre and registered with Edexcel. Providing
this happens, centres are able to describe the programme of study leading to the award of the
qualification in different ways to suit the medium and the target audience.

2

Edexcel qualifications in the National Qualifications Framework

NQF level

BTEC Professional Award, Certificate,
Diploma

Key skills level 5

NVQ level 5
BTEC Higher National Diploma
BTEC Higher National Certificate

BTEC Professional Award, Certificate,
Diploma

Key skills level 4

NVQ level 4
BTEC National Diploma
BTEC National Certificate
BTEC National Award

BTEC Diploma in Foundation Studies (Art
and Design)

BTEC Award, Certificate, Diploma

Key skills level 3

GCE A Level
GCE AS Level
VCE
AEA

NVQ level 3

BTEC First Diploma


Level 2 Certificate in
Adult Numeracy
Adult Literacy
Key skills level 2 GCSE (A*C)
GCSE (Double Awards) (A* A*CC)
GCSE (Short Courses) (A*C)
Intermediate GNVQ
NVQ level 2
BTEC Introductory Certificate
BTEC Introductory Diploma

Adult Numeracy
Level 1 Certificate
in Adult Literacy

Key skills level 1
GCSE (DG)
GCSE (Double Awards) (DDGG)
GCSE (Short Courses) (DG)
Foundation GNVQ

NVQ level 1
Entry Level Certificate in Skills for Working
Life
Entry Level Certificate in Personal Skills
Entry Level Certificate
in Adult Numeracy
Entry Level Certificate
in Adult Literacy

Entry Level Certificates

3
Introduction
This document contains the units and associated guidance for the National Qualifications
Framework (NQF) Edexcel Level 4 BTEC Higher Nationals in Business. Each unit sets out the
required outcomes and content and includes advice regarding appropriate delivery and
assessment strategies. The guidance contains further details of the teaching, learning,
assessment and quality assurance of these qualifications. It includes advice about Edexcels
policy regarding access to its qualifications, the design of programmes of study and delivery
modes.
Structure of the qualification
The BTEC Higher National Certificate in Business is a 10-unit qualification of which five units
are mandatory core units.
The BTEC Higher National Certificate programme must contain a minimum of five units
designated at H2 level.
The BTEC Higher National Diploma in Business is a 16-unit qualification of which eight units
are mandatory core units.
The BTEC Higher National Diploma programme must contain a minimum of eight units
designated at H2 level.

4
BTEC Higher National Certificate in Business
(Must consist of a minimum of five H2 units.)
Unit Core units all five units must be taken
Unit level
H1 or H2
1 Marketing
H1
2 Managing Financial Resources and Decisions
H1
3 Organisations and Behaviour
H1
4 Business Environment
H1
8 Research Project
H2
Specialist units five specialist units must be taken
5 Common Law I
H1
6 Business Decision Making
H2
7 Business Strategy
H2
9 Management Accounting: Costing and Budgeting
H1
10 Financial Reporting
H2
11 Financial Systems and Auditing
H2
12 Taxation
H2
13 Managing Professional Development
H2
14 Working with and Leading People
H2
15 Managing Activities to Achieve Results
H2
16 Managing Communications, Knowledge and Information
H1
17 Marketing Intelligence
H1
18 Advertising and Promotion
H2
19 Marketing Planning
H2
20 Sales Planning and Operations
H2
21 Human Resources Management
H1
22 Managing Human Resources
H2
23 Human Resources Development
H2
24 Employee Relations
H2
25 English Legal System
H1
26 Business Law
H2
27 Common Law II
H2
28 European Law
H2
29 Introduction to the Internet and E-Business
H1
30 Internet Marketing
H2
31 E-Business Operations
H2
32 E-Business Planning and Implementation
H2

5

Unit Specialist units five specialist units must be taken (continued)
Unit level
H1 or H2
33 Information Systems
H2
34 Networking Concepts
H1
35 Multimedia Design and Authoring
H1
36 Website Design
H1
37 Networking Technology
H2
38 MS Office Solution Development
H2
39 Systems Analysis
H2
40 Purchasing
H1
41 Purchasing Development
H2
42 Quality Management
H2
43 Small Business Enterprise
H2
44 Operations Management
H2
45 European Business
H2
46 Employment Law
H2
47 Company Law
H2
48 Administrative Practices and Procedures
H1
49 Financial Services
H2
50 Insurance
H2
51 Investment
H2
52 Industry Experience
H2
53 Contemporary Issues in Marketing Management
H2
54 Computer Platforms
H1
55 Human Computer Interface
H1
56 Project Management
H2
57 Administrative Services
H2
58 Business Psychology
H2
59 Business Ethics
H2
60 Environmental Management
H2
61 Facilities Operations
H1
62 Property Law
H2

6
BTEC Higher National Certificate in Business (Finance)
Unit level
H1 or H2
1 Marketing
H1
H1
H1
H1
8 Research Project
H2
Compulsory specialist units all four units must be taken
H1
H2
H2
12 Taxation
H2
Specialist units one unit must be taken
5 Common Law I
H1
H2
7 Business Strategy
H2
H2
H2
H2
H1
H1
H2
H2
H2
H1
H2
H2
H2
H1
26 Business Law
H2
27 Common Law II
H2
28 European Law
H2
H1
H2
H2

7

Unit Specialist units one unit must be taken (continued)
Unit level
H1 or H2
H2
H2
H1
H1
36 Website Design
H1
H2
H2
39 Systems Analysis
H2
40 Purchasing
H1
H2
H2
H2
H2
H2
46 Employment Law
H2
47 Company Law
H2
H1
H2
50 Insurance
H2
51 Investment
H2
H2
H2
H1
H1
H2
H2
H2
59 Business Ethics
H2
H2
H1
62 Property Law
H2

8
BTEC Higher National Certificate in Business (Management)
Unit level
H1 or H2
1 Marketing
H1
H1
H1
H1
8 Research Project
H2
H2
H2
H2
H1
5 Common Law I
H1
H2
7 Business Strategy
H2
H1
H2
H2
12 Taxation
H2
H1
H2
H2
H2
H1
H2
H2
H2
H1
26 Business Law
H2
27 Common Law II
H2
28 European Law
H2
H1
H2
H2

9

Unit level
H1 or H2
H2
H2
H1
H1
36 Website Design
H1
H2
H2
39 Systems Analysis
H2
40 Purchasing
H1
H2
H2
H2
H2
H2
46 Employment Law
H2
47 Company Law
H2
H1
H2
50 Insurance
H2
51 Investment
H2
H2
H2
H1
H1
H2
H2
H2
59 Business Ethics
H2
H2
H1
62 Property Law
H2

10
BTEC Higher National Certificate in Business (Marketing)
Unit level
H1 or H2
1 Marketing
H1
H1
H1
H1
8 Research Project
H2
Compulsory specialist units four units must be taken
H1
H2
H2
H2
5 Common Law I
H1
H2
7 Business Strategy
H2
H1
H2
H2
12 Taxation
H2
H2
H2
H2
H1
H1
H2
H2
H2
H1
26 Business Law
H2
27 Common Law II
H2
28 European Law
H2
H1
H2
H2

11

Unit level
H1 or H2
H2
H2
H1
H1
36 Website Design
H1
H2
H2
39 Systems Analysis
H2
40 Purchasing
H1
H2
H2
H2
H2
H2
46 Employment Law
H2
47 Company Law
H2
H1
H2
50 Insurance
H2
51 Investment
H2
H2
H2
H1
H1
H2
H2
H2
59 Business Ethics
H2
H2
H1
62 Property Law
H2

12
BTEC Higher National Certificate in Business (Human Resources Management)
Unit level
H1 or H2
1 Marketing
H1
H1
H1
H1
8 Research Project
H2
H1
H2
H2
H2
5 Common Law I
H1
H2
7 Business Strategy
H2
H1
H2
H2
12 Taxation
H2
H2
H2
H2
H1
H1
H2
H2
H2
H1
26 Business Law
H2
27 Common Law II
H2
28 European Law
H2
H1
H2
H2

13

Unit level
H1 or H2
H2
H2
H1
H1
36 Website Design
H1
H2
H2
39 Systems Analysis
H2
40 Purchasing
H1
H2
H2
H2
H2
H2
46 Employment Law
H2
47 Company Law
H2
H1
H2
50 Insurance
H2
51 Investment
H2
H2
H2
H1
H1
H2
H2
H2
59 Business Ethics
H2
H2
H1
62 Property Law
H2

14
BTEC Higher National Certificate in Business (Law)
Unit level
H1 or H2
1 Marketing
H1
H1
H1
H1
8 Research Project
H2
H1
26 Business Law
H2
27 Common Law II
H2
28 European Law
H2
5 Common Law I
H1
H2
7 Business Strategy
H2
H1
H2
H2
12 Taxation
H2
H2
H2
H2
H1
H1
H2
H2
H2
H1
H2
H2
H2
H1
H2
H2

15

Unit level
H1 or H2
H2
H2
H1
H1
36 Website Design
H1
H2
H2
39 Systems Analysis
H2
40 Purchasing
H1
H2
H2
H2
H2
H2
46 Employment Law
H2
47 Company Law
H2
H1
H2
50 Insurance
H2
51 Investment
H2
H2
H2
H1
H1
H2
H2
H2
59 Business Ethics
H2
H2
H1
62 Property Law
H2

16
BTEC Higher National Certificate in Business (E-Business Strategies)
Unit level
H1 or H2
1 Marketing
H1
H1
H1
H1
8 Research Project
H2
H1
H2
H2
H2
5 Common Law I
H1
H2
7 Business Strategy
H2
H1
H2
H2
12 Taxation
H2
H2
H2
H2
H1
H1
H2
H2
H2
H1
H2
H2
H2
H1
26 Business Law
H2
27 Common Law II
H2

17

Unit level
H1 or H2
28 European Law
H2
H2
H1
H1
36 Website Design
H1
H2
H2
39 Systems Analysis
H2
40 Purchasing
H1
H2
H2
H2
H2
H2
46 Employment Law
H2
47 Company Law
H2
H1
H2
50 Insurance
H2
51 Investment
H2
H2
H2
H1
H1
H2
H2
H2
59 Business Ethics
H2
H2
H1
62 Property Law
H2

18
BTEC Higher National Certificate in Business (Information Technology)
Unit level
H1 or H2
1 Marketing
H1
H1
H1
H1
8 Research Project
H2
Specialist units five units must be taken
H2
H1
H1
36 Website Design
H1
H2
H2
39 Systems Analysis
H2
H2

19
BTEC Higher National Diploma in Business
(Must consist of a minimum of eight H2 units.)
Unit Core units all eight units must be taken
Unit level
H1 or H2
1 Marketing
H1
H1
H1
H1
5 Common Law I
H1
H2
7 Business Strategy
H2
8 Research Project
H2
Specialist units eight specialist units must be taken
H1
H2
H2
12 Taxation
H2
H2
H2
H2
H1
H1
H2
H2
H2
H1
H2
H2
H2
H1
26 Business Law
H2
27 Common Law II
H2
28 European Law
H2
H1
H2
H2
H2
20

Unit Specialist units eight specialist units must be taken (continued)
Unit level
H1 or H2
H2
H1
H1
36 Website Design
H1
H2
H2
39 Systems Analysis
H2
40 Purchasing
H1
H2
H2
H2
H2
H2
46 Employment Law
H2
47 Company Law
H2
H1
H2
50 Insurance
H2
51 Investment
H2
H2
H2
H1
H1
H2
H2
H2
59 Business Ethics
H2
H2
H1
62 Property Law
H2

21
BTEC Higher National Diploma in Business (Finance)
Unit level
H1 or H2
1 Marketing
H1
H1
H1
H1
5 Common Law I
H1
H2
7 Business Strategy
H2
8 Research Project
H2
H1
H2
H2
12 Taxation
H2
Specialist units four units must be taken
H2
H2
H2
H1
H1
H2
H2
H2
H1
H2
H2
H2
H1
26 Business Law
H2
27 Common Law II
H2
28 European Law
H2
H1
H2
H2
22

Unit Specialist units four units must be taken (continued)
Unit level
H1 or H2
H2
H1
H1
H1
36 Website Design
H1
H2
H2
39 Systems Analysis
H2
40 Purchasing
H1
H2
H2
H2
H2
H2
46 Employment Law
H2
47 Company Law
H1
H2
H2
50 Insurance
H2
51 Investment
H2
H2
H2
H1
H1
H2
H2
H2
59 Business Ethics
H2
H2
H1
62 Property Law
H2

23
BTEC Higher National Diploma in Business (Management)
Unit level
H1 or H2
1 Marketing
H1
H1
H1
H1
5 Common Law I
H1
H2
7 Business Strategy
H2
8 Research Project
H2
H2
H2
H2
H1
H1
H2
H2
12 Taxation
H2
H1
H2
H2
H2
H1
H2
H2
H2
H1
26 Business Law
H2
27 Common Law II
H2
28 European Law
H2
H1
H2
H2
24

Unit level
H1 or H2
H2
H2
H1
H1
36 Website Design
H1
H2
H2
39 Systems Analysis
H2
40 Purchasing
H1
H2
H2
H2
H2
H2
46 Employment Law
H2
47 Company Law
H2
H1
H2
50 Insurance
H2
51 Investment
H2
H2
H2
H1
H1
H2
H2
H2
59 Business Ethics
H2
H2
H1
62 Property Law
H2

25
BTEC Higher National Diploma in Business (Marketing)
Unit level
H1 or H2
1 Marketing
H1
H1
H1
H1
5 Common Law I
H1
H2
7 Business Strategy
H2
8 Research Project
H2
H1
H2
H2
H2
H1
H2
H2
12 Taxation
H2
H2
H2
H2
H1
H1
H2
H2
H2
H1
26 Business Law
H2
27 Common Law II
H2
28 European Law
H2
H1
H2
H2
26

Unit level
H1 or H2
H2
H2
H1
H1
36 Website Design
H1
H2
H2
39 Systems Analysis
H2
40 Purchasing
H1
H2
H2
H2
H2
H2
46 Employment Law
H2
47 Company Law
H2
H1
H2
50 Insurance
H2
51 Investment
H2
H2
H2
H1
H1
H2
H2
H2
59 Business Ethics
H2
H2
H1
62 Property Law
H2

27
BTEC Higher National Diploma in Business (Human Resources Management)
Unit level
H1 or H2
1 Marketing
H1
H1
H1
H1
5 Common Law I
H1
H2
7 Business Strategy
H2
8 Research Project
H2
H1
H2
H2
H2
Specialist units four specialist units must be taken
H1
H2
H2
12 Taxation
H2
H2
H2
H2
H1
H1
H2
H2
H2
H1
26 Business Law
H2
27 Common Law II
H2
28 European Law
H2
H1
H2
H2
28

Unit Specialist units four specialist units must be taken (continued)
Unit level
H1 or H2
H2
H2
H1
H1
36 Website Design
H1
H2
H2
39 Systems Analysis
H2
40 Purchasing
H1
H2
H2
H2
H2
H2
46 Employment Law
H2
47 Company Law
H2
H1
H2
50 Insurance
H2
51 Investment
H2
H2
H2
H1
H1
H2
H2
H2
59 Business Ethics
H2
H2
H1
62 Property Law
H2

29
BTEC Higher National Diploma in Business (Law)
Unit level
H1 or H2
1 Marketing
H1
H1
H1
H1
5 Common Law I
H1
H2
7 Business Strategy
H2
8 Research Project
H2
H1
26 Business Law
H2
27 Common Law II
H2
28 European Law
H2
H1
H2
H2
12 Taxation
H2
H2
H2
H2
H1
H1
H2
H2
H2
H1
H2
H2
H2
H1
H2
H2
30

Unit level
H1 or H2
H2
H2
H1
H1
36 Website Design
H1
H2
H2
39 Systems Analysis
H2
40 Purchasing
H1
H2
H2
H2
H2
H2
46 Employment Law
H2
47 Company Law
H2
H1
H2
50 Insurance
H2
51 Investment
H2
H2
H2
H1
H1
H2
H2
H2
59 Business Ethics
H2
H2
H1
62 Property Law
H2

31
BTEC Higher National Diploma in Business (E-Business Strategies)
Unit level
H1 or H2
1 Marketing
H1
H1
H1
H1
5 Common Law I
H1
H2
7 Business Strategy
H2
8 Research Project
H2
H1
H2
H2
H2
H1
H2
H2
12 Taxation
H2
H2
H2
H2
H1
H1
H2
H2
H2
H1
H2
H2
H2
H1
26 Business Law
H2
27 Common Law II
H2
32

Unit level
H1 or H2
28 European Law
H2
H2
H1
H1
36 Website Design
H1
H2
H2
39 Systems Analysis
H2
40 Purchasing
H1
H2
H2
H2
H2
H2
46 Employment Law
H2
47 Company Law
H2
H1
H2
50 Insurance
H2
51 Investment
H2
H2
H2
H1
H1
H2
H2
H2
59 Business Ethics
H2
H2
H1
62 Property Law
H2

33
BTEC Higher National Diploma in Business (Information Technology)
Unit level
H1 or H2
1 Marketing
H1
H1
H1
H1
5 Common Law I
H1
H2
7 Business Strategy
H2
8 Research Project
H2
Compulsory specialist units four units must be taken
H2
H1
H1
36 Website Design
H1
H1
H2
H2
12 Taxation
H2
H2
H2
H2
H1
H1
H2
H2
H2
H1
H2
H2
H2
H1
26 Business Law
H2
27 Common Law II
H2
34

Unit level
H1 or H2
28 European Law
H2
H1
H2
H2
H2
H2
H2
39 Systems Analysis
H2
40 Purchasing
H1
H2
H2
H2
H2
H2
46 Employment Law
H2
47 Company Law
H2
H1
H2
50 Insurance
H2
51 Investment
H2
H2
H2
H1
H1
H2
H2
H2
59 Business Ethics
H2
H2
H1
62 Property Law
H2

35
Key features
BTEC Higher Nationals are designed to provide a specialist vocational programme, linked to
professional body requirements and National Occupational Standards where appropriate, with a
strong work related emphasis. The qualifications provide a thorough grounding in the key
concepts and practical skills required in their sector and their national recognition by employers
allows progression direct into employment. BTEC Higher Nationals offer a strong emphasis on
practical skills development alongside the development of requisite knowledge and
understanding in their sector. Learners are attracted to this strong vocational programme of
study that meets their individual progression needs whether this is into employment or to further
study on degree or professional courses.
A key progression path for BTEC Higher National Certificate and Diploma learners is to the
second or third year of a degree or honours degree programme, depending on the match of the
BTEC Higher National units to the degree programme in question.
The BTEC Higher Nationals in Business have been developed to focus on:
providing education and training for a range of careers in business such as administration,
personnel, marketing, finance, law, purchasing and management
providing a general qualification which allows flexibility of study to meet local or specialist
needs
providing specialist options which meet the needs of the major functions in business and
allow specialisation with career progression and professional recognition in mind
providing opportunities which underpin some of the knowledge and understanding required
for the relevant NVQ level 4 units in Accounting, Management, Personnel, Administration
and Procurement
providing opportunities for learners to focus on the development of higher-level skills in a
business context
providing opportunities for learners to develop a range of skills and techniques and
attributes essential for successful performance in working life
providing opportunities for individuals in employment to achieve a nationally recognised
level 4 vocationally specific qualification
providing opportunities for learners to gain a nationally recognised vocationally specific
qualification to enter employment in business or progress to higher education vocational
qualifications such as a full-time degree in business or a related area.
Aims of the qualification
This qualification meets the needs of the above rationale by:
equipping individuals with knowledge, understanding and skills for success in a range of
administrative and management positions in business
providing specialist routes of study which relate to individual professions within the
business world in which learners are working or intend to seek employment
enabling progression to an undergraduate degree or further professional qualification in
business or a related area
supporting individuals employed or entering employment in the business field
developing the individuals ability in the business field through effective use and
combination of the knowledge and skills gained in different parts of the programme
36
developing a range of skills and techniques, personal qualities and attributes essential for
successful performance in working life and thereby enable learners to make an immediate
contribution to employment
providing flexibility, knowledge, skills and motivation as a basis for future studies and
career development in business.
Professional body recognition
Higher National qualifications in Business, especially the endorsed title routes, have been
developed with career progression and professional recognition in mind. The following
professional bodies recognise the Higher Nationals in Business.
Association of Accounting Technicians
Association of Chartered Certified Accountants
Association of International Accountants
Chartered Institute of Bankers
Chartered Institute of Management
Chartered Institute of Management Accountants
Chartered Institute of Marketing
Chartered Institute of Public Finance Accountants
Chartered Institute of Purchasing and Supply
Chartered Insurance Institute
Institute of Chartered Secretaries and Administrators
Institute of Financial Accountants
Institute of Legal Executives
Institute of Personnel and Development
Varying degrees of exemption from professional body examinations are available, details are
available from individual professional bodies.
Further details of professional body recognition and exemptions for BTEC Higher Nationals are
given in the publication BTEC Professional Recognition which is available on Edexcels
website (www.edexcel.org.uk).
National Occupational Standards
There is the opportunity for programmes in business to provide some of the underpinning
knowledge, understanding and skills for level 4 NVQs in Management, Accounting, Personnel,
Administration and Procurement see Annex D, Mapping with NVQs, on page 447.
Qualification Requirement
Edexcel has published Qualification Requirements as part of the revision of BTEC Higher
Nationals. Qualification Requirements set out the aims and rationale of the qualifications and
provide the framework of curriculum content. They also identify the higher-level skills
associated with the qualifications and any recognition by relevant professional bodies. The
Qualification Requirement for BTEC Higher Nationals in Business is given in Annex B.

37
Edexcel standard specifications titles are developed from the Qualification Requirements.
Licensed centres comply with Qualification Requirements when developing BTEC Higher
Nationals under these standard titles.
Qualification Requirements provide consistent standards within the same vocational area and
clearly identify the skills and knowledge that can be expected of any holder of an identical
BTEC Higher National. This will allow higher-education institutions, employers and
professional bodies to confidently provide progression opportunities to successful learners.
Higher-level skills
Learners studying BTEC Higher Nationals in Business will be expected to develop the
following skills during the programme of study:
cognitive skills of critical thinking, analysis and synthesis
effective problem solving and decision making using appropriate quantitative and
qualitative skills including identifying, formulating and solving business problems
effective communication, oral and in writing, using a range of media widely used in
business eg the preparation and presentation of business reports
numeric and quantitative skills including data analysis, interpretation and extrapolation; the
use of models of business problems and phenomena
effective use of communication and information technology for business applications
effective self-management in terms of time, planning and behaviour, motivation, self-
starting, individual initiative and enterprise
developing an appropriate learning style
self-awareness, openness and sensitivity to diversity in terms of people, cultures, business
and management issues
effective performance within a team environment including leadership, team-building,
influencing and project-management skills
interpersonal skills of effective listening, negotiating, persuading and presentation
abilities to conduct research into business and management issues.
The 10-unit BTEC Higher National Certificate in Business provides a specialist work-related
programme of study that covers the key knowledge, understanding and practical skills required
in the sector. It also offers specialist emphasis through the choice of specialist units.
The qualification offers endorsed title routes in Finance, Management, Marketing, Human
Resource Management, Law, E-Business Strategies and Information Technology. In addition,
there is a large number of specialist units which offer scope for developing specialist knowledge
and skills in areas such as administration, purchasing, financial services or project management.
Each endorsed title route consists of four units and study of all four units in a route will add that
endorsement to the title of the qualification gained. This is useful for learners already employed
in a specific business field, who are looking to continue and progress in that business field and
gain professional recognition.
Alternatively, a learner may prefer to undertake a range of specialist units, to gain a broader
business base.
38
BTEC Higher National Certificates provide a nationally recognised qualification that offers
career progression for those already in employment. The qualifications are mode free but they
are primarily undertaken by part-time learners studying over two years. In some sectors there
are opportunities for those wishing to complete an intensive programme of study in a shorter
period of time.
The qualification offers learners access to suitable business-related work situations and the
opportunity to achieve units in administration, accounting, personnel, procurement and
management with links to NVQ qualifications.
The BTEC Higher National Certificate in Business mainly offers a progression route for
learners who are employed in the business sector.
BTEC Higher National Diplomas provide greater depth and specialisation than BTEC Higher
National Certificate qualifications. These qualifications are mode free but are predominately
followed by full-time learners and allow progression into or within employment in the sector,
either directly on the achievement of the award or following further study to degree level.
The BTEC Higher National Diploma in Business mainly offers a progression route for learners
who are studying a business programme.
The BTEC Higher National Diploma in Business provides suitable work experience so that
learners can apply their knowledge and practical skills in the workplace during their study.
The qualification prepares learners for employment in the sector and is suitable for those who
have already decided that they wish to enter this area of work. Some adult learners may wish to
make the commitment required by this qualification in order to enter a specialist area of
employment in the sector or progress into higher education. Other learners may want to extend
the specialism that they followed on the BTEC Higher National Certificate programme.
Progression from this qualification may well be into or within employment in the sector where
learners may work towards professional membership or study for professional body
examinations.
Teaching, learning and assessment
The assessment of BTEC Higher National qualifications is criterion-referenced and centres are
required to assess learners evidence against published learning outcomes and assessment
criteria. All units will be individually graded as pass, merit or distinction. To achieve a
pass grade for a unit learners must meet the assessment criteria set out in the specifications. This
gives transparency to the assessment process and provides for the establishment of national
standards for each qualification.
The units in BTEC Higher National qualifications all have a standard format which is designed
to provide clear guidance on the requirements of the qualification for learners, assessors and
those responsible for monitoring national standards.
Unit format
Each unit is set out in the following way.
Unit title, learning hours and NQF level
The unit title is accredited by QCA and this form of words will appear on the learners
Notification of Performance. In BTEC Higher National qualifications each unit consists of
60 guided learning hours. The level refers to the level in the NVQ.

39
Each unit is assigned a notional level indicator of H1 or H2, indicating the relative intellectual
demand, complexity and depth of study, and learner autonomy.
At H1 level the emphasis is on the application of knowledge, skills and understanding, use of
conventions in the field of study, use of analytical skills and selection and organisation of
information.
At H2 level the emphasis is on application and evaluation of contrasting ideas, principles,
theories and practices, greater specialisation in the field of study, and an increasing
independence in systematic enquiry and analysis.
Description of unit
A brief description of the overall purpose of the unit is given, together with the key areas of
study associated with the unit.
Summary of learning outcomes
The outcomes of the unit identify what each learner must do in order to pass it. Learners must
achieve all the outcomes in order to pass the unit.
Content
This section picks up highlighted words from the outcomes and amplifies the content coverage
required when addressing the outcomes. The content section will often provide lists of topics.
Please note all aspects of the listed topics should be covered, except those that begin with eg,
where items listed are merely indicative.
Outcomes and assessment criteria
Each unit contains statements of the evidence that each learner should produce in order to
receive a pass.
Guidance
This section is not prescriptive but provides additional guidance and amplification related to the
unit to support teachers/deliverers and assessors. Its subsections are given below. Only those
subsections which apply to the unit will appear.
Delivery offers guidance about possible approaches to delivery. The guidance is based
on the more usual delivery modes and is not intended to rule out alternative approaches.
Assessment provides advice about the nature and type of evidence that learners are likely
to need to produce. This subsection should be read in conjunction with the assessment
criteria and the generic grade descriptors.
Links sets out the links between units. Provides opportunities for integration of learning,
delivery and assessment. Any links to the National Occupational Standards will be
highlighted here.
Resources identifies the specialist resources likely to be needed to allow learners to
generate the evidence required by each unit. The centre will be asked to ensure that this
resource requirement is in place when it seeks approval from Edexcel to offer the
qualification.
Support materials identifies, where appropriate, textbooks, videos, magazines, journals,
publications and websites that may support the delivery of the unit.
40
Learning and assessment
The purpose of assessment is to ensure that effective learning of the content of each unit has
taken place. Evidence of this learning, or the application of the learning etc, is required for each
unit. The assessment of the evidence relates directly to the assessment criteria for each unit,
supported by the generic grade descriptors.
The process of assessment can aid effective learning by seeking and interpreting evidence to
decide the stage that learners have reached in their learning, what further learning needs to take
place and how best to do this. Therefore, the process of assessment should be part of the
effective planning of teaching and learning by providing opportunities for both the learner and
assessor to obtain information about progress towards learning goals. The assessor and learner
must be actively engaged in promoting a common understanding of the assessment criteria and
the grade descriptors (what it is they are trying to achieve and how well they achieve it) for
further learning to take place. Therefore, learners need constructive feedback and guidance
about how to improve, capitalising on strengths, with clear and constructive comments about
weaknesses and how these might be addressed.
Assessment instruments are constructed by centres. Assessment instruments should collectively
ensure coverage of all assessment criteria within each unit and should provide opportunities for
the evidencing of all the grade descriptors. It is advised that assessment criteria and
contextualised grade descriptors are clearly indicated on each assessment instrument to provide
a focus for learners (for transparency and to ensure that feedback is specific to the criteria) and
to assist with internal standardisation processes. Tasks/activities should enable learners to
produce evidence that relates directly to the assessment criteria and grade descriptors.
When centres are designing assessment instruments, they need to ensure that the instruments are
valid, reliable and fit for purpose, building on the application of the assessment criteria. Centres
are encouraged to place emphasis on practical application of the assessment criteria, providing a
realistic scenario for learners to adopt, making maximum use of work-related practical
experience and reflecting typical practice in the sector concerned. The creation of assessment
instruments that are fit for purpose is vital to achievement and their importance cannot be over-
emphasised.
Grading Higher National units
The assessment of BTEC Higher National qualifications will be at unit level and there will be
no overall grade for either the Certificate or the Diploma. Learners are able to access the
qualification in a unitised approach if this is appropriate.
The assessment will be made against the published learning outcomes and assessment and
grading criteria which centres are expected to make available to learners. Recognition of
achievement at merit and distinction level will be based on the application of the generic grade
descriptors to the evidence presented. These grade descriptors will require a qualitative
improvement rather than a quantitative increase in the evidence presented.
In order to ensure transparency of assessment, centres are expected to ensure that all assessment
briefs clearly set out the tasks required, the learning outcomes to be met and the assessment
criteria and grade descriptors that will be applied. Centres will need to ensure that there is a
clear audit trail for both internal verification and to satisfy the needs of the Edexcel external
examiner.
Each unit will be graded as a pass, merit or distinction. A pass is awarded for the achievement
of all outcomes against the specified assessment criteria. Merit and distinction grades are
awarded for higher-level achievement.

41
In order to demonstrate achievement, learners typically undertake assessment activities that
include a series of tasks or assignments, reflecting typical practice in the sector concerned. In
order to judge the level of achievement, assessment criteria are used for the pass grade and
grade descriptors for the merit and distinction grades.
Achievement of a pass grade
A pass grade is achieved by meeting all the requirements defined in the assessment criteria for
each individual unit.
Achievement of a merit or distinction grade
All the assessment criteria and merit grade descriptors need to be completed within a unit to
achieve a merit grade.
All the assessment criteria, merit and distinction grade descriptors must be completed within a
unit to achieve a distinction grade.
The generic merit and distinction grade descriptors listed on pages 4243 are for grading the
total evidence produced for each unit and describe the learners performance over and above
that for a pass grade. The evidence produced needs to be qualitative and of a
substantial/significant nature in the context of the sector.
The merit and distinction grade descriptors can be achieved in a flexible way to reflect the
nature of the sector concerned, eg in a sequential or holistic mode.
Each of the generic merit and distinction grade descriptors can be amplified by use of indicative
characteristics. These give a guide to the expected learner performance and support the generic
grade descriptors. The indicative characteristics should reflect the nature of a unit and the
context of the sector programme.
The indicative characteristics shown in the table below that amplify each of the generic grade
descriptors are not exhaustive. Consequently, centres should select from the list or may
construct other appropriate indicative characteristics for their sector programme for the merit
and distinction grade descriptors for each unit. The descriptors should be contextualised and
incorporated into the design of assessment activities. It is important to note that each assessment
activity does not need to incorporate all the merit and/or distinction grade descriptors.
Contextualising the generic grade descriptors
The generic merit and distinction grade descriptors need to be viewed as a qualitative extension
of the assessment criteria within each individual unit. The grade descriptors should be
contextualised to meet the needs of the unit and be incorporated into the design of the
assessment activities.
In all cases for merit and distinction grades the relevant contextualised grade descriptors (and
possibly the indicative characteristics) must be made explicit to learners and all those involved
in the assessment and internal verification process.

42
Grade descriptors
A pass grade is achieved by meeting all the requirements defined in the pass assessment criteria for each unit.
Merit descriptors Indicative characteristics Distinction descriptors Indicative characteristics
In order to achieve a merit the learner
must:
The learners evidence shows: In order to achieve a distinction the learner
must:
The learners evidence shows:
identify and apply strategies to find
appropriate solutions
relevant theories and techniques have
been applied
effective judgements have been made
complex problems with more than one
variable have been explored
an effective approach to study and
research has been used
use critical reflection to evaluate
own work and justify valid
conclusions
synthesis has been used to generate
and justify valid conclusions
the validity of results has been
judged
self criticism of approach has taken
place
evaluation has taken place using
defined criteria
realistic improvements have been
proposed against defined
characteristics for success
select/design and apply appropriate
methods/techniques
a range of methods and techniques have
been applied
a range of sources of information used
the selection of methods and
techniques/sources justified
the design of methods/techniques
justified
complex information/data have been
synthesised and processed
appropriate learning
methods/techniques applied
take responsibility for managing
and organising activities
autonomy/independence
demonstrated
substantial activities/projects or
investigations have been planned,
managed and organised
joint/activities of others have been
managed
the unforeseen has been
accommodated
the importance of interdependence
has been recognised

43

Grade descriptors

Merit descriptors Indicative characteristics Distinction descriptors Indicative characteristics
In order to achieve a merit the learner
must:
The learners evidence shows: In order to achieve a distinction the learner
must:
The learners evidence shows:
present and communicate
appropriate findings
appropriate structure and approach has
been used
logical and coherent arguments have
been presented
technical language accurately used
a range of methods of presentation has
been used
appropriate media used
familiar and unfamiliar contexts have
been used
it is appropriate for familiar and
unfamiliar audiences

demonstrate convergent, lateral and
creative thinking
ideas generated and decisions taken
self evaluation has taken place
convergent and lateral thinking have
been applied
problems have been solved
capacity for innovation and creative
thought has been used
receptiveness to new ideas have
been demonstrated
unfamiliar contexts have been
applied

44
Achieving a pass on a BTEC Higher National qualification
The grades awarded for each unit will form the main factor in determining whether a learner has
achieved a pass overall. If the full qualification is achieved, certification for BTEC Higher
Nationals will show the details of performance in each individual unit.
Accreditation of Prior Learning (APL)
Edexcel encourages centres to recognise learners previous achievements and experience
through the Accreditation of Prior Learning. Learners may have evidence that has been
generated during previous study, in their previous or current employment or whilst undertaking
voluntary work that relates to one or more of the units in the qualification. Assessors should
assess this evidence against the Higher National standards in the specifications in the normal
way. As with all evidence, assessors should be satisfied about the authenticity and currency of
the material when considering whether or not the outcomes of the unit have been met.
Full guidance about Edexcels policy on APL is provided on our website (www.edexcel.org.uk).
Quality assurance
Quality assurance of Edexcel Level 4 BTEC Higher Nationals
The quality assurance system for BTEC Higher National programmes, as higher-level
vocational qualification at level 4 on the National Qualifications Framework, will comprise
three main components.
1 Approval process
A control measure to confirm that individual centres, (and programme teams), are appropriately
resourced and competent to deliver a BTEC level 4 programme of study.
2 Monitoring of centres
A method of monitoring centres internal quality systems to ensure ongoing fulfilment of initial
requirements and, where appropriate, enhancement of those requirements to accommodate new
qualifications.
3 Independent assessment
A measure that provides independence within the assessment process, such that the certificated
outcomes for each learner are not reliant upon determinations by individuals or groups with a
vested interest in the outcome. This measure should be consistent and reliable over time, and
should not create unnecessary barriers.
Centre and programme approval
Centres intending to offer BTEC Higher National qualifications will be required to demonstrate
that they have all the resources necessary to deliver individual programmes to the specification
requirements. They will also demonstrate that they have in place policies and procedures for
recruitment of learners that are fair, clear and explicit, and that recruitment with integrity is
evident.

45
Centres may submit to Edexcel scrutiny of their provision. Alternatively, centres may present
evidence of their working within the context of a recognised code of practice, such as that of the
Quality Assurance Agency for Higher Education, or body of similar standing and having a
review regime, for the purpose of confirming the application of the relevant code. Edexcel
reserves the right to confirm independently that these processes are operating to our satisfaction.
Monitoring centres internal quality systems
Centres will be required to demonstrate ongoing fulfilment of approval criteria over time and
across all programme areas. This will include consistent application of policies affecting learner
registrations and learner appeals, and the effectiveness of internal verification or standardisation
processes.
Centres may submit to Edexcel scrutiny of their provision. Alternatively, centres may present
evidence of their working within the context of a recognised code of practice, such as that of the
Quality Assurance Agency for Higher Education, or body of similar standing and having a
review regime, for the purpose of confirming the application of the relevant code. Edexcel
reserves the right to confirm independently that these processes are operating to our satisfaction.
Independent assessment
Supporting consistency and appropriateness of centre assessor decisions
For all BTEC Higher Nationals, accredited at level 4 on the NQF, Edexcel will appoint
appropriately qualified subject-specific external examiners to each programme in each centre.
The selection, appointment and training process; and the role, powers and responsibilities will
be defined by Edexcel in a formal manner, so that external examiners and centres are fully
aware of the scope of this role. Their function will be to objectively evaluate the assessment
process and standards of learner attainment, by independently reviewing, in the first year of a
programme, a representative sample of learner work (including the centre-devised assignments
upon which the samples are based) selected by the external examiner, from across a programme
(guidance on criteria will be provided by Edexcel in the formal definition of role, powers and
responsibilities of external examiners).
Visiting external examiners must be afforded reasonable access to the assessed parts of any
programme, including evidence of a learners performance on placement, where this is an
assessed part of the programme. A primary purpose of this evaluation is to verify that standards
are appropriate for the award, its elements, and to assist institutions in the comparison of
academic standards across similar awards nationally. The external examiner will also report on
the extent to which the institutions processes for assessment, are sound and have been fairly
conducted.
In the event of a disparity between the judgement made by centre assessors and those of the
Edexcel external examiner, this will be formally reported to Edexcel and to the centre. Such an
instance will require a centre to agree corrective action with Edexcel
46
Independence in confirmation of certificated outcomes
In the final year of a programme the Edexcel-appointed external examiner will re-visit the
centre to independently assess learner work and to evaluate centre assessor decisions on the
final outcomes of learners work. This evaluation may focus upon external examiner-selected
work in units that present the most appropriate evidence for this exercise. The external examiner
will review the work of all learners, not previously included in the representative sample in the
first year, and make judgements separately from internal examiners. Resolution of internal and
external assessments will normally be confirmed at the centres final programme review board.
The external examiner will endorse the outcomes of assessment before certification is
authorised. In the event of an external examiner being unable to provide such endorsement for a
programme, Edexcel will agree appropriate corrective action with the centre.
The Edexcel-appointed external examiner will be required to prepare, at agreed times, a written
report that provides comments and judgements on the assessment process and the standards of
learner attainment. The report will provide the mechanism whereby an external examiner
independently verifies candidate ability, endorses the validity of the outcomes of assessment
processes, and certification is released for a cohort.
The structure and substantive content of the report will be determined by Edexcel and will
follow a standardised format. The report will address the standards of learner performance, the
quality of assessment decisions in relation to national standards as embodied within the
qualification specifications and other relevant documents, and the extent to which the processes
for assessment, examination and grading are sound and have been fairly conducted.
The report will be a confidential document between Edexcel, its appointed External Examiner(s)
and the centre. It will provide centres with feedback on the examining process and the
judgements that determine external examiners decisions on endorsement, or otherwise, of
learner outcomes. The recommendations, contained within the report, will contribute to the
ongoing monitoring of the centre by Edexcel.
Programme design and delivery
The qualifications consist of core units (which are mandatory) and specialist units. The
specialist units will be mostly optional and are designed to provide a specific focus to the
qualification. Required combinations of specialist units are clearly set out in relation to each
qualification in the defined qualification structures provided in this document.
In BTEC Higher National qualifications each unit consists of 60 guided learning hours. The
definition of guided learning hours is a notional measure of the substance of a qualification. It
includes an estimate of time that might be allocated to direct teaching, instruction and
assessment, together with other structured learning time such as directed assignments or
supported individual study. It excludes learner-initiated private study. Centres are advised to
consider this definition when planning the programme of study associated with this
specification.
Mode of delivery
Edexcel does not define the mode of study for BTEC Higher National qualifications. Centres
are free to offer the qualifications using any mode of delivery that meets the needs of their
learners. This may be through traditional classroom teaching, open learning, distance learning or
a combination of these. Whatever mode of delivery is used, centres must ensure that learners
have appropriate access to the resources identified in the specifications and to the subject
specialists delivering the units. This is particularly important for learners studying for the
qualification through open or distance learning.

47
Full guidance on Edexcels policies on distance assessment and electronic assessment are
provided on our website.
Learners studying for the qualification on a part-time basis bring with them a wealth of
experience that should be utilised to maximum effect by tutors and assessors. Assessment
instruments based on learners work environments should be encouraged. Those planning the
programme should aim to enhance the vocational nature of the BTEC Higher National
qualification by:
liaising with employers to ensure that the course is relevant to the specific needs of the
learners
accessing and using non-confidential data and documents from learners workplaces
including sponsoring employers in the delivery of the programme and, where appropriate, in
the assessment
linking with company-based/workplace training programmes
making full use of the variety of experiences of work and life that learners bring to the
programme.
Resources
BTEC Higher National qualifications are designed to prepare learners for employment in
specific sectors. Physical resources need to support the delivery of the programme and the
proper assessment of the outcomes and, therefore, should normally be of industry standard. Staff
delivering programmes and conducting the assessments should be fully familiar with current
practice and standards in the sector concerned. Centres will need to meet any specialist resource
requirements when they seek approval from Edexcel.
Specialist resources should include case study materials, real resources acquired from
commercial operations, videos and documented examples of current practice. These are detailed
in each unit, they provide:
demonstration of appropriate direct links with relevant organisations, their personnel, and
access to their policy and practice
demonstration of current and relevant experience within the delivery team
appropriate physical resources and equipment
learner access to relevant books and professional journals
access for staff and learners to information technology and data logging equipment, with
technician support
staff time for liaison with relevant employers
access to online business-related websites.
Delivery approach
It is important that centres develop an approach to teaching and learning that supports the
specialist vocational nature of the BTEC Higher National qualifications. The specifications
contain a balance of practical skill development and knowledge requirements, some of which
can be theoretical in nature. Tutors and assessors need to ensure that appropriate links are made
between theory and practice and that the knowledge base is applied to the sector. This will
require the development of relevant and up-to-date teaching materials that allow learners to
apply their learning to actual events and activity within the sector. Maximum use should be
made of the learners experience.
48
Meeting local needs
Centres should note the qualifications set out in these specifications have been developed in
consultation with centres, employers and professional bodies. The units are designed to meet the
skill needs of the sector and the specialist units allow coverage of the full range of employment.
Centres should make maximum use of the choice available to them within the specialist units in
these specifications to meet the needs of their learners, as well as the local skills and training
needs identified by organisations such as the Regional Development Agency and the Local
Learning and Skills Council.
In certain circumstances, the units contained in these specifications may not enable centres to
meet a local need. In this situation centres may seek approval from Edexcel to make use of units
from other standard National Qualifications Framework BTEC Higher National specification.
Centres will need to justify the need for importing units from other specifications and Edexcel
will ensure that the vocational focus of the qualification has not been diluted.
Locally-devised specialist units
There may be exceptional circumstances where even the flexibility of importing units from
other specifications does not meet a particular local need. In this case, centres can seek
permission from Edexcel to develop a unit with us to meet this need. The cases where this will
be allowable will be very limited. Edexcel will ensure that the integrity of the qualification is
not reduced and that there is a minimum of overlap and duplication of content of existing units.
Centres will need strong evidence of the local need and the reasons why the existing standard
units are inappropriate. Edexcel will need to validate these units.
Limitations on variations from standard specifications
The flexibility to import standard units from other BTEC Higher National specifications and/or
to develop unique locally-devised specialist units is limited to a maximum of four units in a
BTEC Higher National Diploma qualification and a maximum of two units only in any
BTEC Higher National Certificate qualification. The use of these units cannot be at the
expense of the core units in any qualification.
Access and recruitment
Edexcels policy regarding access to its qualifications is that:
the qualifications should be available to everyone who is capable of reaching the required
standards
the qualifications should be free from any barriers that restrict access and progression
there should be equal opportunities for all wishing to access the qualifications.
Centres are required to recruit learners to BTEC qualifications with integrity. This will include
ensuring that applicants have appropriate information and advice about the qualifications and
that the qualification will meet their needs. Centres should take appropriate steps to assess each
applicants potential and make a professional judgement about their ability to successfully
complete the programme of study and achieve the qualification. This assessment will need to
take account of the support available to the learner within the centre during their programme of
study and any specific support that might be necessary to allow the learner to access the
assessment for the qualification. Centres should also show regard for Edexcels policy on
learners with particular requirements.

49
Centres will need to review the profile of qualifications and/or experience held by applicants,
considering whether this profile shows an ability to progress to a level 4 qualification. For
learners who have recently been in education, the entry profile is likely to include one of the
following:
an AVCE/GNVQ in an appropriate vocational area (eg Business, Hospitality and Catering,
Travel and Tourism)
a BTEC National Certificate or Diploma in Business Studies, Hospitality Supervision, or a
similar discipline
a GCE Advanced level profile which demonstrates strong performance in a relevant subject
or an adequate performance in more than one GCE subject. This profile is likely to be
supported by GCSE grades at A* to C
other related level 3 qualifications
an Access to Higher Education Certificate awarded by an approved further education
institution
related work experience.
Mature learners may present a more varied profile of achievement that is likely to include
extensive work experience (paid and/or unpaid) and/or achievement of a range of professional
qualifications in their work sector.
Restrictions on learner entry
The majority of BTEC Higher National qualifications are accredited on the NQF for learners
aged 16 years and over. Learners aged 15 and under cannot be registered for a BTEC Higher
National qualification.
Learners with particular requirements
Edexcel recognises that some learners, when studying vocationally-related qualifications, will
have coped with the learning demands of a course but may find the standard arrangements for
the assessment of their attainment presents an unfair barrier. This would apply to learners with
known and long-standing learning problems and to learners who are affected at, or near to, the
time of a time-constrained assessment.
Edexcel will seek to approve alternative arrangements that:
meet the needs of learners with particular requirements
do not confer advantage over other learners
are commensurate with the proper outcomes from the qualification.
Details of the allowable arrangements for such learners are given in Assessment of Vocationally
Related Qualification: Regulations and Guidance relating to Learners with Special
Requirements (Edexcel, 2002).
The wider curriculum
The study of the BTEC Higher Nationals in Business provides opportunities for learners to
develop an understanding of spiritual, moral, ethical, social and cultural issues and an awareness
of environmental issues, health and safety considerations, and European developments. These
wider curriculum opportunities are indicated in the units as appropriate. Mapping of wider
curriculum opportunities issues is provided in Annex C.
50
Spiritual, moral, ethical, social and cultural issues
The specification contributes to an understanding of spiritual, moral and ethical and social and
cultural issues:
spiritual issues are encountered through an appreciation of the spiritual dimension to
business activity, particularly when business is seen from the perspective of interacting with
others, for example in Units 3, 4, 24 and 50.
moral and ethical issues are encountered throughout the qualification as dealing with
people will involve the learner engaging in moral and ethical issues. A more detailed
analysis is given in Units 4, 19, 50 and 56.
social and cultural issues are encountered throughout the qualification.
Environmental issues
Learners will be led to appreciate the importance of environmental issues as they study
business, as well as through experience of the business sector in Units 4 and 57.
European developments
Much of the content of the BTEC Higher Nationals in Business is applicable throughout Europe
owing to its transferable nature, even though the context of delivery is within the UK. The
European dimensions of business are specifically addressed in Units 4, 28 and 42.
Health and safety issues
The BTEC Higher Nationals in Business are practically based and so health and safety issues
are encountered throughout the programmes. Learners will develop awareness of the safety of
others, as well as themselves in all practical activities. Learners will explore health and safety
issues across the whole business sector, particularly in Units 4, 43 and 58.
Equal opportunities issues
Equal opportunities issues are implicit throughout the BTEC Higher Nationals in Business.
Useful publications
Further copies of this document and related publications can be obtained from:
Edexcel Publications
Adamsway
Mansfield
Nottinghamshire NG18 4FN
Telephone: 01623 467 467
Fax: 01623 450 481
Email: publications@linneydirect.com
Related publications include:
the current Edexcel publications catalogue and update catalogue
Edexcel publications concerning the quality assurance system and the internal and external
verification of vocationally-related programmes may be found on the Edexcel website and
in the Edexcel publications catalogue.

51
NB: Most of our publications are priced. There is also a charge for postage and packing. Please
check the cost when you order.
Professional body contact details
How to obtain National Occupational Standards
Accounting
Accounting National Training Organisation
Viking House
Swallowdale Lane
Hemel Hempstead
Hertfordshire
HP2 7EA
Telephone: 01442 250 525
Fax: 01442 240 204

Administration
Council for Administration
1820 Bromells Road
Clapham Common
London
SW4 0BG
Telephone: 020 7627 9876
Fax: 020 7627 9877
Email: nto@cfa.uk.com
Website: www.cfa.uk.com

Management
The Management Standards Centre
The Institute of Management
2 Savoy Court
The Strand
WC2R 0EZ
Telephone: 020 7497 0580
Fax: 020 7497 0463
Website: www.inst-mgt.org.uk

Personnel
The Employment NTO
Kimberley House
47 Vaughan Way
Leicester
LE1 4SQ
Telephone: 0116 251 7979
Fax: 0116 251 14416
Email: info@empnto.co.uk
Website: www.empnot.co.uk
52
Professional development and training
Edexcel supports UK and international customers with training related to BTEC qualifications.
This support is available through a choice of training options offered in our published training
directory or through customised training at your centre.
The support we offer focuses on a range of issues including:
planning for the delivery of a new programme
planning for assessment and grading
developing effective assignments
building your team and teamwork skills
developing student-centred learning and teaching approaches
building key skills into your programme
building in effective and efficient quality assurance systems.
The national programme of training we offer can be viewed on the Edexcel website
(www.edexcel.org.uk). You can request customised training through the website or by
contacting one of our advisers in the Professional Development and Training Team on
telephone number 020 7758 5620 to discuss your training needs.
The training we provide:
is active ideas are developed and applied
is designed to be supportive and thought provoking
builds on best practice.
Our training will also underpin many areas of the Higher Education Staff Development Agency
(HESDA)/FENTO standards for teachers and lecturers working towards them.
Further information
For further information please call Customer Services on 0870 240 9800, or visit our website at
www.edexcel.org.uk.

53

Core
units
54

55
Unit 1: Marketing
Learning hours: 60
NQF level 4: BTEC Higher National H1

Description of unit
This unit aims to provide learners with an introduction to the fundamental concepts and
principles that underpin the marketing process. In addition, it examines the role and practice of
marketing within the changing business environment. This broad-based unit will provide all
learners with a concise and contemporary overview of marketing, and give them the knowledge
and skills to underpin further study in the specialist field of marketing.
To achieve this unit a learner must:
1 Investigate the concept and process of marketing
2 Explore the concepts of segmentation, targeting and positioning
3 Identify and analyse the individual elements of the extended marketing mix
4 Apply the extended marketing mix to different marketing segments and contexts.

56
Content

1 Concept and process of marketing
Definitions: alternative definitions including those of the Chartered Institute of Marketing
and the American Marketing Association, satisfying customers needs and wants, value and
satisfaction, exchange relationships, the changing emphasis of marketing
Marketing concept: evolution of marketing, business orientations, societal issues and
emergent philosophies, customer and competitor orientation, efficiency and effectiveness,
limitations of the marketing concept
Marketing process overview: marketing audit, integrated marketing, environmental analysis,
SWOT analysis, marketing objectives, constraints, options, plans to include target markets
and marketing mix, scope of marketing
Costs and benefits: benefits of building customer satisfaction, desired quality, service and
customer care, relationship marketing, customer retention, customer profitability, costs of
too narrow a marketing focus, total quality marketing
2 Segmentation, targeting and positioning
Macro-environment: environmental scanning, political, legal, economic, socio-cultural,
ecological and technological factors
Micro-environment: stakeholders (organisation's own employees, suppliers, customers,
intermediaries, owners, financiers, local residents, pressure groups and competitors), direct
and indirect competitors, Porters competitive forces
Buyer behaviour: dimensions of buyer behaviour, environmental influences, personal
variables demographic, sociological, psychological motivation, perception and
learning, social factors, physiological stimuli, attitudes, other lifestyle and lifecycle
variables, consumer and organisational buying
Segmentation: process of market selection, macro and micro segmentation, bases for
segmenting markets ie geographic, demographic, psychographic and behavioural;
multivariable segmentation and typologies, benefits of segmentation, evaluation of
segments and targeting strategies, positioning, segmenting industrial markets, size, value,
standards, industrial classification
3 Extended marketing mix
Product: products and brands features, advantages and benefits, the total product
concept, product mix, product life-cycle and its effect on other elements of the marketing
mix, product strategy, new product development, adoption process
Place: customer convenience and availability, definition of channels, types and functions of
intermediaries, channel selection, integration and distribution systems, franchising, physical
distribution management and logistics, ethical issues
Price: perceived value, pricing context and process, pricing strategies, demand elasticity,
competition, costs, psychological, discriminatory, ethical issues

57
Promotion: awareness and image, effective communication, integrated communication
process (SOSTT +4Ms), promotional mix elements, push and pull strategies, advertising
above and below the line including packaging, public relations and sponsorship, sales
promotion, direct marketing and personal selling, branding, internet and online marketing
The shift from the 4Ps to the 7Ps: product-service continuum, concept of the extended
marketing mix, the significance of the soft elements of marketing people, physical
evidence and process management
4 Different marketing segments and contexts
Consumer markets: fast-moving consumer goods, consumer durables, co-ordinated
marketing mix to achieve objectives
Organisational markets: differences from consumer markets, adding value through service;
industrial, non-profit making, government, re-seller
Services: nature and characteristics of service products intangibility, ownership,
inseparability, perishability, variability, heterogeneity the 7Ps, strategies, service quality,
elements of physical product marketing, tangible and intangible benefits
International markets: globalisation, standardisation versus adaptation, the EU, benefits and
risks, market attractiveness, international marketing mix strategies

58

Outcomes Assessment criteria for pass
To achieve each outcome a learner must demonstrate
the ability to:
1 Investigate the concept and
process of marketing
compare alternative definitions of marketing
identify the main characteristics of a marketing-
oriented organisation
explain the various elements of the marketing
concept
identify and assess the benefits and costs of a
marketing approach
2 Explore the concepts of
segmentation, targeting and
positioning
identify and explain macro and micro environmental
factors which influence marketing decisions
propose segmentation criteria to be used for two
products in different markets
outline the factors which influence the choice of
targeting strategy
explain how buyer behaviour affects marketing
activities in two different buying situations
3 Identify and analyse the
individual elements of the
extended marketing mix
describe how products are developed to sustain
competitive advantage
explain how distribution is arranged to provide
customer convenience
explain how prices are set to reflect an
organisations objectives and market conditions
illustrate how promotional activity is integrated to
achieve marketing objectives
analyse the additional elements of the extended
marketing mix
4 Apply the extended marketing
mix to different marketing
segments and contexts
recommend marketing mixes for two different
segments in consumer markets
explain the differences in marketing products and
services to organisations rather than consumers
explain how and why international marketing differs
from domestic marketing

59
Guidance

Delivery
For many learners this unit will provide their first contact with the main aspects of marketing
theory. Delivery should emphasise that the marketing concept underpins the marketing process.
Current trends, issues and innovations should be used to identify the application of marketing
principles and techniques. In addition, case studies, visiting speakers and visits to other
organisations could be used where appropriate to give practical relevance.
Assessment
Evidence of outcomes may be in the form of written or oral assignments or tests, or by learners
building a portfolio of evidence. The assignments may focus on real problems or case studies.
Learning and assessment can be across units, at unit level or at outcome level. Evidence could
be at outcome level although opportunities exist for covering more than one outcome in an
assignment.
Learners should also have opportunities for peer and self-assessment in order to develop their
skills in being responsible for their own learning and development.
Links
This unit forms the basis of the Higher National Marketing pathway linking with other
marketing units: Unit 17: Marketing Intelligence, Unit 18: Advertising and Promotion, Unit 19:
Marketing Planning and Unit 20: Sales Planning and Operations. There is also a link to Unit 4:
Business Environment in the areas of stakeholders, effects of demand elasticity on pricing and
external market factors. The unit also provides links to Unit 30: Internet Marketing and Unit 50:
Contemporary Issues in Marketing Management.
Resources
Learners should have access to a learning resource centre with a wide range of marketing texts.
Texts should be supported by newspaper business sections, as well as trade journals such as
Campaign, Marketing Week and Marketing.
Support materials
Textbooks
Adcock D et al Marketing Principles and Practice 4th Edition (Pitman Publishing, 2001)
ISBN: 027364677X
Brassington F and Pettitt S Principles of Marketing 3rd Edition (FT/Prentice Hall, 2003)
ISBN: 0273657917
J obber D Principles and Practice of Marketing 3rd Edition (McGraw Hill, 2001)
ISBN: 0077096134
Kotler P et al Principles of Marketing 3rd European Edition (FT/Prentice Hall, 2001)
ISBN: 0273646621
60
Magazines, journals and newspapers
Campaign
Harvard Business Review
Journal of Marketing Management
Marketing Review
Marketing
Marketing Business
Marketing Week
The Financial Times and other daily newspapers which contain a business section and market
reports
Videos
The Marketing Mix at Cadburys (1998, TV Choice)
Marketing Decisions (1998, TV Choice)
What is Marketing? (2001, TV Choice)
Websites
www.bized.ac.uk provides case studies appropriate for educational
purposes
www.cim.co.uk The Chartered Institute of Marketings site
contains a useful knowledge centre
www.ft.com The Financial Times business sections
www.marketing.haynet.com Marketing magazine
www.thetimes100.co.uk multimedia resources

61
Unit 2: Managing Financial Resources and
Decisions
Learning hours: 60

Description of unit
This unit is designed to give learners a broad understanding of the ways in which finance is
managed within a business organisation. Learners will learn how to evaluate the different
sources of finance, compare the ways in which these are used and will learn how to use financial
information to make decisions. Included will be consideration of decisions relating to pricing
and investment, as well as budgeting. Finally, learners will learn techniques for the evaluation
of financial performance.
1 Explore the sources of finance available to a business
2 Analyse the implications of finance as a resource within a business
3 Make financial decisions based on financial information
4 Analyse and evaluate the financial performance of a business.
62
Content

1 Sources of finance
Range of sources: sources for different businesses, long term such as share capital, retained
earnings, loans, third-party investment, short/medium term such as hire purchase and
leasing, working capital stock control, cash management, debtor factoring
Implications of choices: legal, financial and dilution of control implications, bankruptcy
Choosing a source: advantages and disadvantages of different sources, suitability for
purpose eg matching of term of finance to term of project
2 Finance as a resource
Finance costs: tangible costs eg interest, dividends; opportunity costs eg loss of alternative
projects when using retained earnings; tax effects
Financial planning: the need to identify shortages and surpluses eg cash budgeting;
implications of failure to finance adequately, overtrading
Decision making: information needs of different decision makers
Accounting for finance: how different types of finance and their costs appear in the financial
statements of a business, the interaction of assets and liabilities on the balance sheet
3 Financial decisions
Budgeting decisions: analysis and monitoring of cash and other budgets
Costing and pricing decisions: calculation of unit costs, use within pricing decisions,
sensitivity analysis
Investment appraisal: payback period, accounting rate of return, discounted cashflow
techniques ie net present value, internal rate of return
Nature of long-term decisions: nature of investment importance of true value of money,
cash flow, assumptions in capital investment decisions, advantages and disadvantages of
each method
4 Financial performance
Terminology: introduction to debit, credit, books of prime entry, accounts and ledgers, trial
balance, final accounts
Financial statements: basic form, structure and purpose of main financial statements ie
balance sheet, profit and loss account, cashflow statement, notes, preparation not required;
distinctions between different types of business ie limited company, partnership, sole trader
Interpretation: use of key accounting ratios for profitability, liquidity, efficiency, and
investment, comparison both external ie other companies, industry standards and internal ie
previous periods, budgets

63

the ability to:
1 Explore the sources of
finance available to a
business
identify the sources of finance available to a
business
assess the implications of the different sources
select appropriate sources of finance for a business
project
2 Analyse the implications of
finance as a resource within
a business
assess and compare the costs of different sources of
finance
explain the importance of financial planning
describe the information needs of different decision
makers
describe the impact of finance on the financial
statements
3 Make financial decisions
based on financial
information
analyse budgets and make appropriate decisions
calculate unit costs and make pricing decisions using
relevant information
assess the viability of a project using investment
appraisal techniques
4 Analyse and evaluate the
financial performance of a
business
explain the purpose of the main financial statements
describe the differences between the formats of
financial statements for different types of business
analyse financial statements using appropriate ratios
and comparisons, both internal and external

64
Guidance

Delivery
Understanding will be developed via exposure to a variety of case studies. It will also be useful
to look at a number of sets of financial statements. The form and structure of these statements
must be understood, although learners are not required to actually prepare the statements. That
said, simple examples which do require accounts to be prepared may aid understanding of the
formats.
Assessment
Assessment may be by way of case study or project, based on specific business organisations.
The organisations can be simulated, but learners may benefit from the analysis of a variety of
real organisations. Assessment of the decision making outcome is likely to require a simulated
case study.
Links
This unit links with other units within the specification: Unit 6: Business Decision Making, Unit
9: Management Accounting: Costing and Budgeting, Unit 10: Financial Reporting, Unit 11:
Financial Systems and Auditing and Unit 12: Taxation.
This unit also covers some of the underpinning knowledge and understanding for the following
units of the NVQ in Accounting at level 4: Contributing to the management of costs and
enhancement of value, Contributing to the planning and allocation of resources.
The unit covers financial topics essential for learners wishing to make a career in this field and
wishing to gain membership of a professional accounting body.
Support materials
Textbooks
Sufficient library resources should be available to enable learners to achieve this unit.
Particularly relevant texts are:
Cox D and Fardon M Management of Finance (Osborne Books, 2003) ISBN: 1872962238
Dyson J R Accounting for Non-Accounting Learners (Pitman, 2003) ISBN: 0273646834
Journals and newspapers
The financial and mainstream press can provide useful background reading, and can also be a
useful source of case studies and financial information. Copies of published financial reports are
available from companies themselves, or via The Financial Times (a free online ordering service
is available).
Videos
A number of videos is available covering the financial aspects of business.

65
Websites
The professional accounting bodies all have websites with lots of useful information and links.
The Financial Times website includes a free service providing copies of financial reports. Biz/ed
provides a wealth of useful resources aimed at learners and teachers.

www.aat.co.uk The Association of Accounting Technicians
www.accountingtechnician.co.uk Accounting Technician magazine
www.bized.ac.uk provides case studies appropriate for
educational purposes
www.ft.com The Financial Times

66

67
Unit 3: Organisations and Behaviour
Learning hours: 60

Description of unit
This unit provides an introduction to the nature of organisations in relation to management
practices. The unit examines the internal nature of organisations from both a theoretical and
practical viewpoint. The unit is intended to develop an understanding of the behaviour of people
within organisations and the significance of organisational design and characteristics. It also
aims to provide the basis for, and to underpin further study in, specialist areas of business.
1 Explore organisational structure and culture
2 Examine different approaches to management and leadership and theories of
organisation
3 Examine the relationship between motivational theories
4 Demonstrate an understanding of working with others, teamwork, groups and group
dynamics.
68
Content

1 Organisational structure and culture
Types of organisation and associated structures: functional, product-based, geographically
based, multifunctional and multidivisional structures, matrix, centralisation and de-
centralisation
Organisational networks and linkages: internal and external network structures, flexible
working
Organisational culture: classification of organisational culture power culture, role
culture, task culture, person culture, cultural norms and symbols, values and beliefs,
development of organisational culture
Authority and power: organisational charts, spans of control
The human resource function: a stakeholder perspective, personnel management roles,
personnel policies, strategies and operating plans, strategic goals for personnel
Diagnosing behavioural problems: concepts, principles, perspectives, methodology
Perception: definition, perceptual selection, perception and work behaviour, attitude, ability
and aptitude, intelligence
Significance and nature of individual differences: self and self-image, personality and work
behaviour, conflict
Individual behaviour at work: personality, traits and types, its relevance in understanding
self and others
2 Approaches to management and leadership
Development of management thought: scientific management, classical administration,
bureaucracy, human relations approach, systems approach, contingency approach
Functions of management: planning, organising, commanding, co-ordinating, controlling
Managerial roles: interpersonal, informational, decisional
Nature of managerial authority: power, authority, responsibility, delegation, conflict
Frames of reference for leadership activities: opportunist, diplomat, technician, achiever,
strategist, magician, pluralistic, transformational, change
3 Motivational theories
Motivation theories: Maslows Hierarchy of Needs, Herzbergs Motivation Hygiene
theory, Vroom and Expectancy theories, Maccoby, McCrae and Costa personality
dimensions
Motivation and performance: rewards and incentives, motivation and managers, rewards
monetary and non-monetary
Leadership: leadership in organisations, managers and leaders, leadership traits,
management style, contingency approach, leadership and organisational culture
Leadership and successful change in organisations: pluralistic, transformational,
communications, conflict

69
4 Working with others, teamwork, groups and group dynamics
The nature of groups: groups and teams, informal and formal groups, purpose of teams
Teams and team building: selecting team members, team roles, Belbins theory, stages in
team development, team building, team identity, team loyalty, commitment to shared
beliefs, multi-disciplinary teams
Team dynamics: group norms, decision-making behaviour, dysfunctional teams,
cohesiveness
Impact of technology on team functioning: technology, communication, change, networks
and virtual teams, global and cross-cultural teams
70

the ability to:
1 Explore organisational
structure and culture
compare and contrast different organisational
structures and culture
analyse the relationship between an organisations
structure and culture and the effects on business
performance
analyse the factors which influence individual
behaviour at work
2 Examine different
approaches to management
and leadership and theories
of organisation
analyse how organisational theory underpins
principles and practices of organising and of
management
compare the different approaches to management
and theories of organisation used by two
organisations
3 Examine the relationship
between motivational
theories
discuss different leadership styles and the
effectiveness of these leadership approaches
explain the different motivational theories and their
application within the workplace
assess the relationship between motivation theory
and the practice of management
4 Demonstrate an understanding
of working with others,
teamwork, groups and
group dynamics
describe the nature of groups and group behaviour
within organisations
investigate the factors that lead to effective
teamwork and the influences that threaten success
evaluate the impact of technology on team
functioning within a given organisation

71
Guidance

Delivery
Case studies, role plays and learner-centred learning can all be used to enhance delivery and
student learning opportunities exist to link the delivery and assessment of the unit with the
human resource management or management units.
Assessment
Evidence of outcomes could be by written or verbal presentations. Evidence at outcome level
can be self-contained assignments, or one assignment integrating all outcomes, possibly with a
thematic approach. Investigations can use actual organisations or case study material.
Links
This unit links with Unit 21: Human Resources Management, Unit 22: Managing Human
Resources, Unit 23: Human Resources Development and Unit 24: Employee Relations.
Support materials
Textbooks
Brooks I Organisational Behaviour, Individuals, Groups and Organisation 2nd Edition
(Prentice Hall, 2003) ISBN: 0877781265
Huczynski A and Buchanan D Organisational Behaviour: An Introductory Text (Prentice
Hall, 2000) ISBN: 0273651021
Maccoby M Why Work: Motivating and Leading the New Generation (Simon and Schuster,
New York, 1998) ISBN: 067147281X
(Outlines the changing nature of the workplace and categorises people into five types, giving the
characteristics and sources of motivation and demotivation of each.)
Mullins L Management and Organisational Behaviour 5th Edition (Pitman Publishing,
London, 1999) ISBN: 0273651471
Robbins S Essentials of Organisational Behaviour 4th Edition (Prentice Hall International,
2003) ISBN: 0582820758

72

73
Unit 4: Business Environment
Learning hours: 60

Description of unit
The aim of the unit is to encourage learners to identify the objectives of organisations and the
influence of stakeholders. Learners are also encouraged to investigate the operation of
organisations in relation to the local, national and global environment. The unit also provides
learners with a solid base of understanding of the parameters within which organisations act that
can be built upon in further units.
1 Identify the mission, objectives and responsibilities of an organisation within its
environment
2 Investigate the economic, social and global environment in which organisations operate
3 Investigate the behaviour of organisations and the market environment
4 Explore the significance of international trade and the European dimension for UK
businesses.

74
Content

1 Objectives and responsibilities of an organisation
Categories of organisation: size, sector/type private, public, voluntary, charitable;
activity primary, secondary tertiary
Mission, objectives and values of organisations: concept of corporate mission or vision,
underlying values/philosophy, profit, market share, ROCE, sales, growth, level of service,
customer/user perceptions and audits
Stakeholders: identification of stakeholders, stakeholder groups, conflict of expectations,
attitude, power-influence matrix; satisfying stakeholder objectives, measuring performance
Responsibilities of organisations: to stakeholders, key legal responsibilities eg consumer,
employment, disability discrimination and health and safety, diversity and equal
opportunities, stakeholder pensions; wider responsibilities including ethical, environmental;
ethical practice
2 Economic, social and global environment
Resource issues and types of economic system: basic economic problem, effective use of
resources; type of economic systems command, free enterprise, mixed, including
transitional economies, public and private sector initiatives; private finance initiatives
Government policy: fiscal policy in the UK, monetary policy in the UK; MPC, industrial
policy in the UK; social welfare policy in the UK; economic growth, economic
performance/indicators influence of the CBI TUC stakeholder and interest groups, the
influence of the global economy trends, uncertainties, growth, impact on the economy,
UK multinationals, World Bank
3 Behaviour of organisations and the market environment
Market types: perfect competition, monopoly, monopolistic competition, oligopoly,
duopoly; competitive advantage, behaviour/strategies adopted by firms; role of Competition
Commission, and regulatory bodies eg Oftel, Ofgas, Ofwat
Market forces and organisational responses: supply and demand, elasticity, customer
perceptions and actions, issues relating to supply, cost and output decisions short run and
long run, economies of scale, growth of organisations: reasons, methods, financing, MNCs/
TNCs joint ventures, outsourcing; core markets/skills, technology and innovation, labour
market trends, cultural environment

75
4 International trade and the European dimension
The importance of international trade: to the UK economy, businesses, balance of
payments, patterns and trends in international trade, UK trade with the EU, USA and other
countries, trading blocs throughout the world, UK membership of the EU, enlargement of
EU, direct/indirect exporting methods, trading opportunities, importance of global markets,
implications for businesses of emerging markets, cultural diversity and clusters, TNCs, the
economies of Europe EMU, EU budget import duties and levies, agricultural levies, VAT,
competitor policy, European Single Market Act, social policy, The Social Chapter, tax
harmonisation, CAP, regional policy

76

the ability to:
1 Identify the mission,
objectives and
responsibilities of an
organisation within its
environment
identify the mission, values and key objectives of an
organisation and assess the influence of stakeholders
evaluate the extent to which an organisation
achieves the objectives of three stakeholders
explain the responsibilities of an organisation and
strategies employed to meet them
2 Investigate the economic,
social and global
environment in which
organisations operate
explain how economic systems attempt to allocate
and make effective use of resources
discuss the impact of social welfare and industrial
policy initiatives on organisations and the wider
community
evaluate the impact of macro economic policy
measures and the influence of the global economy
on UK-based organisations and stakeholders
3 Investigate the behaviour of
organisations and the
market environment
explain how market structures in practice deviate
from the model of perfect competition
use a range of examples to illustrate the relationship
between market forces and organisational responses
explain the behaviour and competitive strategies
employed by an organisation and discuss the role of
the Competition Commission and regulatory bodies
4 Explore the significance of
international trade and the
European dimension for UK
businesses
discuss the importance of international trade,
economic integration and global markets to UK
business organisations
analyse the impact of two policies of the European
Union on UK business organisations
explain the economic implications for the UK of
entry into EMU

77
Guidance

Delivery
This unit will probably be delivered as a stand-alone unit, but there are opportunities for some
integration of assignments with the units identified in the Links section below. The extent to
which this can be achieved will depend on whether learners are completing a Higher National
Diploma or Higher National Certificate and if Unit 42: European Business forms part of the
programme. In the case of the latter unit, outcome 4 clearly provides a basis for linkage. In
making decisions about linked assignments, consideration will need to be given to the order in
which units are delivered.
Assessment
Evidence of outcomes may be in the form of written or oral assignments and/or time constrained
activities.
Evidence is likely to be produced at outcome level although opportunities exist for the design of
assignments that adopt a thematic approach covering several outcomes. Stimulus material could
include case study material, and investigations into actual business organisations. Case studies
could be issued prior to the adoption of any time constrained assignments.
Learners must demonstrate their understanding of organisational missions, objectives and the
influence of stakeholders. Investigation of organisations within their environment at local,
national and global level and the impact of government policies and the European dimension
must also be covered.
Links
This unit provides for the development of a solid base of understanding of the parameters within
which organisations act. This can be built on in further units, particularly Unit 7: Business
Strategy and Unit 42: European Business.
Resources
The European Parliament Office in London has a website and will also supply multiple copies
of materials on Europe. Also the European newspaper, Euromonitor and The Economist
Intelligence Unit are useful sources of information. Other resources include The UK Economy
Explained (CD-Rom) by HSBC; The Times 100 Companies (CD-Rom) and Trigon produce
useful economic data.
Support materials
Textbooks
There is a large number of textbooks available covering the areas in the unit. Examples include:
BPP Organisations, Competition and Environment (BPP Publishing, 2003)
ISBN: 0751712469
Brewster D Business Economics (International Thompson Business P, 1998)
ISBN: 1861524250
78
Dawes B International Business: A European Perspective (Nelson Thornes Publishers, 1995)
ISBN: 0748718605
Dicken P Global Shift Transforming the World Economy (Paul Chapman Publishing, 1998)
ISBN: 1853963674
Dunnett A The Macroeconomic Environment (Prentice Hall, 1997) ISBN: 0582305810
Griffiths A and Wall S Applied Economics (Financial Times Prentice Hall, 2001)
ISBN: 0582025036
Hill B The European Union (Heinemann, 1998) ISBN: 0435332147
Hornby W Business Economics (Financial Times Prentice Hall, 2001) ISBN: 0273646036
Hurl B Privatisation and the Public Sector (Heinemann, 1995) ISBN: 0435330322
Lipsey R Principles of Economics (Oxford University Press, 1999) ISBN: 0198775881
Needham D et al Business for Higher Awards (Heinemann, 1999) ISBN: 0435453149
Parkin M European Economics (Pearson Education, 2002) ISBN: 0201596083
Samuelson P Economics (McGraw Hill, 2001) ISBN: 0071180648
Sloman J Economics (Financial Times Prentice Hall, 2002) ISBN: 0273655744
Journals
British Economy Survey basic subscription and also single-user electronic and network
electronic subscription (YPS Ltd, York)
The Economist
Websites
www.carol.co.uk provides company annual reports online
http://catalogue.bized.ac.uk part of Bized website, provides useful web
links
www.census.gov/ipc/www Census data
www.corporateinformation.com provides corporate information and company
reports
www.ecowin.com global financial and economic data
www.ermuk.com/ERM/LOC/erm_uk.NSF website of ERM, environmental management
consultancy
www.google.co.uk/advanced_search?hl=en Google advanced search
www.oheschools.org Economics of Health Care
www.sosig.ac.uk Social Science Information Gateway
www.statistics.gov.uk National Statistics

79
Unit 5: Common Law I
Learning hours: 60

Description of unit
The aim of this unit is to provide an introduction to the law of contract, with a particular focus
on the formation and operation of a business contract. Learners are encouraged to explore the
contents of such an agreement and, in particular, to appreciate the practical application of
standard-form business contracts. Additionally, the unit enables learners to understand how the
Law of Tort differs from the law of contract and examines the Tort of Negligence and issues of
liability pertinent to business.
1 Understand theessential elements of a valid and legally binding contract and its role in a
business context
2 Explore the significance of specific terms in a business contract
3 Examine the role of theLaw of Tort in business activities assessing particular forms of
tortious liability
4 Understand and apply theelements of the Tort of Negligence.

80
Content

1 Essential elements of a valid contract
Essential elements: types of contractual agreements and their application in business; the
making of a valid offer and its unconditional acceptance; the essential existence of a clear
and unambiguous intention supported by sufficient consideration; the parties to the
agreement possessing the necessary capacity and being privy to the agreement
2 Specific terms in a business contract
Specific terms: contents of a valid agreement and standard form business contracts;
comparative analysis of express and implied terms; the effects of the breach of a condition,
warranty or an innominate term; the legal effect on the agreement of the incorporation of an
exemption clause
3 The Law of Tort in business activities and particular forms of tortious liability
The Law of Tort: fundamental aspects of tort; tortious liability and business operations;
advantages of using tortious, as opposed to contractual, remedies
Types of tortious liability: the tortious liability of occupiers, employers liability including
vicarious liability for employees, health and safety issues, strict liability, difficulties of
practical application
4 Elements of the Tort of Negligence
Negligence: the nature and scope of the duty of care and the standard of care; breach of
duty, issues of causation and remoteness of damage

81

the ability to:
1 Understand theessential
elements of a valid and
legally binding contract and
its role in a business context
explain the different types of business agreement
and the importance of the key elements required for
the formation of a valid contract
apply the rules of offer and acceptance in a given
scenario, also considering any impact of new
technology
assess the importance of the rules of intention and
consideration of the parties to the agreement
explain the importance of the contracting parties
having the appropriate legal capacity to enter into a
binding agreement
2 Explore the significance of
specific terms in a business
contract
analyse specific contract terms with reference to
their importance and impact if these terms are
broken
apply and analyse the law on standard form
contracts
discuss the effect of exemption clauses in attempting
to exclude contractual liability
3 Examine the role of theLaw
of Tort in business activities
assessing particular forms of
tortious liability
describe the nature of general tortious liability
comparing and contrasting to contractual liability
explain the liability applicable to an occupier of
premises
discuss the nature of employers liability with
reference to vicarious liability and health and safety
implications
distinguish strict liability from general tortious
liability
4 Understand and apply the
elements of the Tort of
Negligence
explain and understand the application of the
elements of the Tort of Negligence
analyse the practical applications of particular
elements of the Tort of Negligence

82
Guidance

Delivery
This unit can be delivered in a variety of ways. Group work and other active methods of
learning can be employed to enhance learners experience and promote the required
understanding. The use of case studies and specimen documentation is to be particularly
encouraged, both as a means of assessment and as part of the normal learning process.
Assessment
Evidence of outcomes may be in the form of:
case studies to assess differing approaches to contractual liability
group work, presentations, and role plays used critically, to examine the essential elements
of a valid contract
case studies to assess differing approaches to tortious liability
group work to examine critically particular elements of negligence
group role play to simulate situations where various forms of tortious liability apply.
Links
This unit provides for the development of a solid understanding of the essential requirements of
a valid business contract. This will be a foundation for Unit 27: Common Law II where the
knowledge base and understanding gained will be further developed and enhanced. To a lesser
extent there will be some common ground between the contents of this unit and Unit 25:
English Legal System in relation to the forms of liability and the development of common law
and equitable remedies.
Support materials
Textbooks
Atiyah P S Introduction to the Law of Contract (Clarendon Press, J une 1995)
ISBN: 0198259530
Beale/Bishop and Furmston Contract Cases and Materials (Butterworth, October 2001)
ISBN: 040692404X
Cheshire/Fifoot and Furmston Law of Contract (Butterworth, October 2001)
ISBN: 0406930589
Cooke J Law of Tort (Prentice Hall, May 1997) ISBN: 0273627104

83
Elliott and Quinn Contract Law (Longman, December 2002) ISBN: 0582473306
Elliot and Quinn Tort Law (Longman, J uly 1997) ISBN: 058243811X
Harvey and Marston Cases and Commentary on TORT (Prentice Hall, 2000)
ISBN: 0582423511 NB: Will be republished 2004 (5th Edition ISBN: 0406971382)
Hodgson J and Lewthwaite J Law of Torts (Blackstone, October 2001) ISBN: 1841742759
J ones M Textbook on Torts (Oxford University, August 2002) ISBN: 0199255334
Pannett A Law of Torts (Prentice Hall, March 1997) ISBN: 0712110704
Treitel G Law of Contract (Sweet & Maxwell, J une 2003) ISBN: 042178850X
Young M Cases and Commentary in Contract Law (Prentice Hall, J une 1997)
ISBN: 0273625705
Journals
Law Society Gazette
New Law Journal

84

85
Unit 6: Business Decision Making
Learning hours: 60

Description of unit
In business, good decision making requires the effective use of information. This unit gives
learners the opportunity to examine a variety of sources and develop techniques for four aspects
of information: data gathering, data storage, and the tools available to create useful information
and present it.
Computers are used in business for much of this and thus the appreciation and use of
appropriate IT software is central to the completion of this unit. Specifically, learners will use
spreadsheets and other software for data analysis and the preparation of information. The use of
spreadsheets for the manipulation of numbers, and understanding of how to apply the results,
are seen as more important than the mathematical derivation of formulae used. They will also
gain an appreciation of information systems currently used at all levels in an organisation as
aids to decision making.
1 Use a variety of sources for the collection of data, both primary and secondary
2 Apply a range of techniques to analyse data effectively for business purposes
3 Produce information in appropriate formats for decision making in an organisational
context
4 Use software-generated information to make decisions at operational, tactical and
strategic levels in an organisation.
86
Content

1 Sources for the collection of data
Primary sources: survey methodology, questionnaire design, sample frame, acceptance
sampling methods, sample error
Secondary sources: internet research, government and other published data, by-product data
2 Techniques to analyse data
Representative values: mean, median, mode, calculation from raw data and frequency
distributions and using the results to draw valid conclusions
Measures of dispersion: maximum, minimum, standard deviation for small and large
samples; typical uses statistical process eg control, buffer stock levels
Calculation: use of quartiles, percentiles, correlation coefficient
3 Information in appropriate formats
Creation and interpretation of graphs using spreadsheets: line, pie, bar charts and
histograms
Scatter (XY) graphs and linear trend lines: extrapolation for forecasting reliability
Use of appropriate presentation software and techniques and report writing
4 Software-generated information
Management information systems: computers and information processing tools for
operational, tactical and strategic levels of the organisation
Inventory control: economic order quantity, continuous and periodic review, Pareto
analysis, material requirements, planning for manufacturing
Project management: networking and critical path analysis, Gantt and Pert charts
Financial tools: indices discounted cash flow, internal rates of return (IRR function)

87

the ability to:
1 Use a variety of sources for
the collection of data, both
primary and secondary
prepare and implement a plan for the collection of
primary and secondary data for a given business
problem
describe and justify the survey methodology and
frame used
develop and use a questionnaire and justify its
design for a particular purpose
2 Apply a range of techniques
to analyse data effectively
for business purposes
create information for decision making by
summarising data using representative values, and
use the results to draw valid and useful conclusions
in a business context
analyse data using measures of dispersion, and use
to inform a given business scenario
calculate quartiles, percentiles, correlation
coefficient, and use to draw useful conclusions in a
business context
3 Produce information in
appropriate formats for
decision making in an
organisational context
using data from a given business scenario, prepare a
range of graphs using spreadsheets line, pie, bar
charts and histograms, and draw valid conclusions
based on the information derived
use trend lines in spreadsheet graphs to assist in
forecasting for specified business information and
thus inform decision making
prepare a business presentation using suitable
software and techniques to disseminate information
effectively and persuasively
prepare a formal business report
88

the ability to:
4 Use software-generated
information to make
decisions at operational,
tactical and strategic levels in
an organisation
review management information systems and
suggest appropriate information processing tools for
operational, tactical and strategic levels of the
organisation
review and evaluate inventory control systems in an
organisation
prepare a spreadsheet to enable material
requirements planning and calculate economic order
quantities
prepare a project plan for an activity and determine
the critical path
use financial tools discounted cash flow and
internal rates of return (IRR function) to evaluate the
financial viability of proposed investments

89
Guidance

Delivery
Reflecting modern business practice, much of this unit will be delivered using computer
software (such as spreadsheets, presentation and project management software and the internet).
Delivery is likely to include input to ensure that all learners have a working knowledge of the
required IT tools, and subsequent practice tasks, case studies, research activities (individual and
group) to develop the particular skills. This may be achieved by delivering the unit at an early
stage in the course, ensuring the learner has skills ready to apply in other units, or delivered
within units which require specific skills.
Assessment
Evidence of outcomes may be in the form of assignments specific to the unit, assignments that
integrate this unit with others, class-based tests and examinations.
To expand on the outcomes activities could include:
collection of secondary data for marketing/business planning
questionnaires for consumer/employee attitudes and preferences
analysis and description of data, use of graphs and forecasting from consumer surveys,
operations activities to inform particular strategies
investigate business proposals or opportunities and submit responses as formal reports or
presentations to lecturers, peers or employers
monitor and graph chosen share prices over a period and use forecasting techniques and
research of current economic activities to suggest future trends.
Links
This unit is intended to provide underpinning knowledge for topics which are based on an
understanding of quantitative techniques found in other units, in particular those focusing on
marketing, finance, operations and strategic management, such as: Unit 1: Marketing, Unit 2:
Managing Financial Resources and Decisions, Unit 7: Business Strategy, Unit 9: Management
Accounting: Costing and Budgeting, Unit 10: Financial Reporting, Unit 11: Financial Systems
and Auditing, Unit 12: Taxation, Unit 17: Marketing Intelligence, Unit 18: Advertising and
Promotion, Unit 19: Marketing Planning, Unit 20: Sales Planning and Operations and Unit 30:
Internet Marketing.
Resources
Computers with internet and appropriate application software such as spreadsheets,
presentation, and word-processing packages should be available. Project management software
would also be useful. Additional numeracy support should be available if required.
90
Support materials
Textbooks
Bedward D Quantitative Methods A Business Perspective 1st Edition (Butterworth
Heinemann, 1999) ISBN: 0750640936
Curwin and Slater Quantitative Methods for Business Decisions 5th Edition (Chapman Hall,
2001) ISBN: 1861525311
Schultheis R Management Information Systems 4th Edition (McGraw Hill 1998)
ISBN: 0071155481
Smailes J and McGrane A Essential Business Statistics (Pearson Education, 2000)
ISBN: 0273643339
Waters D Quantitative Methods for Business (FT Prentice Hall, 2001) ISBN: 027364694X
Websites
For coverage of relevant topics:
www.4pm.com/repository.htm Project Management, critical path analysis
www.ct-yankee.com Levinson Productivity Systems PC
quantitative techniques outlined
www.itl.nist.gov National Institute of Statistics variety of
quantitative techniques
www.mindtools.com Mindtools very useful management tools

For research or secondary data:
www.bankofengland.co.uk/mfsd/index.htm Bank of England statistics
www.bized.ac.uk provides case studies appropriate for educational
purposes
www.dti.gov.uk/mbp Department of Trade and Industry
www.moneyworld.co.uk Moneyworld manage your stocks and shares
http://sol.brunel.ac.uk/~jarvis/bola Business Open Learning archive
www.statistics.gov.uk UK government statistics
www.upmystreet.co.uk Up My Street local information anywhere in
UK

91
Unit 7: Business Strategy
Learning hours: 60

Description of unit
The aim of this unit is to develop learners abilities to evaluate and select strategies appropriate
to business organisations. This will involve an analysis of the impacts of the external operating
environment and the need to plan organisational strategies to ensure effective business
performance.
1 Analyse how the business environment is considered in strategy formulation
2 Understand the process of strategic planning
3 Examine approaches to strategy evaluation and selection
4 Analyse how strategy implementation is realised.

92
Content

1 Strategy formulation
Strategic contexts and terminology: role of strategy, missions, visions, strategic intent,
objectives, goals, core competencies, strategic architecture, strategic control
Stakeholder analysis: stakeholder significance grid, stakeholder mapping
Environment auditing: political, economic, socio-cultural, technological, environmental and
legal analysis (PESTEL), Porters 5 force analysis, the threat of new entrants, the power of
buyers, the power of suppliers, the threat of substitutes, competitive rivalry and
collaboration
Strategic positioning: the Ansoff matrix, growth, stability, profitability, efficiency, market
leadership, survival, mergers and acquisitions, expansion into the global market place
The organisational audit: benchmarking, SWOT analysis, product positions, value-chain
analysis, demographic influences, scenario planning, synergy culture and values
2 Strategic planning
Strategic thinking: future direction of the competition, needs of customers, gaining and
maintaining competitive advantage, Ansoff's growth-vector matrix, portfolio analysis
Planning systems: informal planning, top-down planning, bottom-up planning, behavioural
approaches
Strategic planning issues: impact on managers, targets, when to plan, who should be
involved, role of planning
Strategic planning techniques: BCG growth-share matrix, directional policy matrices,
SPACE, PIMS
3 Strategy evaluation and selection
Market entry strategies: organic growth, growth by merger or acquisition, strategic
alliances, licensing, franchising
Substantive growth strategies: horizontal and vertical integration, related and unrelated
diversification
Limited growth strategies: do nothing, market penetration, market development, product
development, innovation
Disinvestment strategies: retrenchment, turnaround strategies, divestment, liquidation
Strategy selection: considering the alternatives, appropriateness, feasibility, desirability

93
4 Strategy implementation
The realisation of strategic plans to operational reality: communication selling the
concepts, project teams, identification of team and individual roles, responsibilities and
targets, programme of activities, benchmark targets at differing levels of the organisation
Resource allocation: finance, human resources, materials, time
Review and evaluation: an evaluation of the benchmarked outcomes in a given time period
of corporate, operational and individual targets

94

the ability to:
1 Analyse how the business
environment is considered in
strategy formulation
define the contexts of business strategy
explain the significance of stakeholder analysis
conduct an environmental and organisational audit
of a given organisation
apply strategic positioning techniques to the analysis
of a given organisation
2 Understand the process of
strategic planning
demonstrate an ability to think strategically
prepare a strategic plan for a given organisation,
based on previous analysis
3 Examine approaches to
strategy evaluation and
selection
evaluate possible alternative strategies
substantive growth, limited growth or retrenchment
select an appropriate future strategy for a given
organisation
4 Analyse how strategy
implementation is realised
compare the roles and responsibilities for strategy
implementation in two different organisations
identify and evaluate resource requirements to
implement a new strategy for a given organisation
propose targets and timescales for achievement in a
given organisation to monitor a given strategy

95
Guidance

Delivery
This unit is best taught using a case study approach. Wherever possible, a link should be made
between the academic underpinning knowledge and its practical application. The evaluation of
strategy formulation should be developed using an identified or given organisation. This could
be achieved via a tutor-developed case study, a case study taken from a recent publication
(which may need consent from the author) or an evaluation of a local organisation. There are
excellent case studies available in the publications listed in Resources which can be used for
classroom discussion. Some of the texts also have online tutor support.
Typical class sessions may begin with an explanation of the relevant theories followed by a
learner-led discussion on how these theories have been applied in the case study. This may
entail learners being asked to read the case study in advance of the class. Depending on the time
available, this can then be backed up by an appropriate video showing how strategies are
applied in practice.
Tracking studies via newspapers should also be considered to monitor the strategic moves of
organisations, such as mergers and fragmentation. Outside speakers and visits to organisations
could be used where appropriate to give practical examples of how organisations are monitoring
and producing strategies to ensure business success.
Assessment
Assessments should ideally be based on real-life case studies. For a first assessment it may be
suitable to ask learners to work in groups to produce and present a report covering outcomes
one and two. This can then be followed up by an individual piece of work analysing the
evaluation, selection and implementation of an appropriate strategy. To achieve a merit in this
unit a learner should, in the individual piece of work, apply different models and theories to the
analysis of the data and show an understanding of the application of those models. For a
distinction a learner would be expected to show evaluation and synthesis of these models and
theories and be able to communicate the ideas coherently.
Links
This unit is intended to be linked with the other core units in the programme. It draws upon the
underpinning knowledge gained across the core and specialist units in the programme.
Support materials
Textbooks
HNC/HND BTEC Business Course Book, Core Unit 8 Business Strategy
(BPP Publishing, London, 2000) ISBN: 0751770388
Coulter M Strategic Management 2nd Edition (Prentice Hall, 2001) ISBN: 0130400068
J ohnson G and Scholes K Exploring Corporate Strategy (Prentice Hall, 2002)
ISBN: 0273651129
96
Lynch R Corporate Strategy (Prentice Hall, 1999) ISBN: 0273643037
Thompson J L Understanding Corporate Strategy (Thomson Learning, 2001)
ISBN: 1861527551
Newspapers
The Financial Times and other quality newspapers
Videos
Blood on the Carpet series
The Business
Trouble at the Top series
Trouble Shooter series (J ohn Harvey J ones)
Websites
www.bloomberg.com Bloomberg, provider of worldwide financial
information
www.emerald-library.com/EMR provides access to journals
www.hemscott.net provides company information

97
Unit 8: Research Project
Learning hours: 60

Description of unit
This unit is designed to introduce learners to the techniques and methods of research. The unit
addresses a variety of research methodologies, including the opportunity to carry out
interventionist or action research.
Learners will be required to produce a project report based on independent research into an area
of professional business practice that interests them and will add to their professional
development.
The study should use both primary and secondary sources of information, and should be an
exploration of a current major issue. The study undertaken should build on knowledge, skills
and understanding that have been achieved in other units. Tutor approval should be sought
before commencing study.
1 Prepare a research proposal relating to a specified area of business
2 Conduct research using primary and secondary sources of information
3 Carry out the research project into a specified area of business
4 Present and evaluate the findings with regard to the initial proposal.

98
Content

1 Research proposal
Research methodologies: intervention, non-intervention, action research
Hypothesis: definition, suitability, skills and knowledge to be gained, aims, objectives,
terms of reference, duration, ethical issues
Action plan: rationale for research question or hypothesis, task dates, review dates,
monitoring/reviewing process, strategy
2 Primary and secondary sources
Primary: questionnaires type, layout, distribution, original research data gathered by the
learner; interviews, selecting interviewees, bias, verification of data, time, place, style
Secondary: eg books, journals, library search, use of IT, internet, media
3 Research project
Preparation: identifying ideas/topics/areas of investigation, research question(s), scope and
feasibility, hypothesis, literature search, agreeing the process, targets, milestones, action
plan, timetable and procedure, monitoring and revision
Methodology: literature search, eg library, internet, sector data sources; pure and applied
research, developmental, longitudinal, survey, case study, research and development,
concepts and theories, terminology, validity and reliability
Qualitative data analysis: interpreting transcripts, coding techniques, categorisation,
relationships, trends, use of computers; presentation of data
Quantitative data analysis: coding/values, manual/electronic methods, specialist software;
presentation of data, eg bar/pie charts, graphs, statistical tables; comparison of variables,
trends, forecasting
4 Present and evaluate
Presentation: eg formal written format, by viva voce or oral presentation, diagrammatic or
graphical figures
Methodology: presentation, eg IT, audio, visual aids, time, pace; delivery critique of the
methods used in the study, recommendations, eg using the findings, recommendations for
the future, areas for future research
Evaluation: planning, objectives, focus, benefits, difficulties
Criteria: purpose, editing, format, sequencing success, critical analysis, discussion of
evidence and findings

99

the ability to:
1 Prepare a research proposal
relating to a specified area of
business
identify a research question or hypothesis and justify
choice
justify the chosen methodology in terms of the
research question
prepare an action plan with target dates and methods
for monitoring and updating
devise a code of ethics for the conduct of the study
2 Conduct research using
primary and secondary
sources of information
undertake primary and secondary research relating
to the proposal
describe and justify the chosen methodology
3 Carry out the research
project into a specified area
of business
prepare for the research project and agree process
and action plan with supervisor
monitor and revise schedule when required
collect and review data using appropriate methods,
including primary and secondary research
techniques
analyse and interpret appropriate qualitative and
quantitative data
4 Present and evaluate the
findings with regard to the
initial proposal
record findings in an accepted format
present and summarise the findings using suitable
methods
evaluate the methodology used and critically analyse
the findings
propose recommendations based on the findings
which identify and justify areas for future research

100
Guidance

Delivery
Learners may have developed a range of investigative skills during the programme of study, but
this unit formalises the research into a style similar to a thesis. It is important that learners
understand the elements that make up formal research, including the different methodologies,
the proposal, action planning, carrying out the research itself and presenting their findings.
Tutors will need to cover the theory underpinning formal research to enable learners to complete
this unit satisfactorily.
The research project itself is dependent on the learner, the context of their area of learning, their
focus of interest and the anticipated outcomes. The unit should draw together a range of other
areas of content within the programme of study to form a holistic piece of work that makes a
positive contribution to commercial practice. To accomplish this, learners will need to establish
relationships with commercial and industrial organisations in order to generate data that will
lead them to such conclusions. It is essential for the tutor to monitor the development of
individual research projects closely to ensure they are following the correct guidelines and
working towards agreed objectives.
Learners will need further guidance to support the presentation and evaluation of their work.
The presentation of their research should follow formal presentation practice, with correct
referencing and bibliography details. Tutors should deliver an appropriate session to underpin
this approach, but the teaching of presentation skills should not be the focus of this area of
work.
Assessment
Evidence for this unit should be generated through a written assignment or report,
demonstrating a sound understanding of research methods and protocol. The study should show
evidence of both primary and secondary research. It should look at the present day and the
current culture and operation of the service, with a view on the issues which impact most
strongly upon it. There should also be an appreciation of historical events which impact most
strongly on current structure and operations. The learner will need to demonstrate the ability to
work independently, and to provide evidence of an individual approach in the finished work.
Learners will require close supervision and organised tutor support in order to design a study
which is realistic, achievable and economically viable within the scope of the unit. Tutor
approval should be sought before beginning the study.
Links
This unit may be linked to a single unit or several units, depending on the research topic and
area chosen. In particular it can be linked to Unit 49: Industry Experience and gives the learner
the opportunity to undertake research in the same organisation in which they undertook their
placement.
Resources
Tutors will need to establish the availability of resources to support the independent study
before allowing the learner to proceed with the proposal.

101
Where learners are engaged in primary research, the tutor must check that access has been
negotiated and that ethical research procedures are being followed. Learners will need access to
IT and to appropriate commercial organisations.
Learners will need access to ICT when analysing their findings and writing up their reports.
Support materials
Textbooks
Bell J Doing your Research Project 3rd Edition (Open University Press, 1999)
ISBN: 0335203892
Best J Research in Education (Prentice Hall, 1997) ISBN: 0137740182
Cohen L and Manion L Research Methods in Education (Routledge Falmer, 2000)
ISBN: 0414195411
Coolican H Introduction to Research Methods and Statistics in Psychology
(Hodder and Stoughton, 1996) ISBN: 0340679379
Elliott J Action Research for Educational Change (Open University Press, 1991)
ISBN: 0335096891
Gill J and J ohnson P Research Methods for Managers 2nd Edition (Paul Chapman
Publishing Ltd, 1997) ISBN: 185396350X
Hoinville G and J owell R Survey Research Practice (Heinemann, 1978)
ISBN: 0435824198
Kane E Doing Your Own Research (Marion Boyars, 1997) ISBN: 0714528439
Lock D Project Management (Gower publications, 2000) ISBN: 056608225X
Marshall L A Guide to Learning Independently 2nd Edition (Open University Press 1996)
ISBN: 0335191711
McNiff J Action Research: Principles and Practice (Routledge Falmer, 2001)
ISBN: 0415219949
Robson, C Real World Research (Blackwell Publications, 2001) ISBN: 0631213058
Saunders M/Lewis P and Thornhill A Research Methods for Business Students
(Pitman Publishing, 1997) ISBN: 0273620177

102

103

Specialist
units
104

105

Finance
106

107
Unit 9: Management Accounting: Costing
and Budgeting
Learning hours: 60

Description of unit
In this unit learners will consider cost information both current and future. Cost data will be
collected, compiled and analysed, and will be processed into information of use to management.
The unit goes on to deal with budgetary planning and control, preparing forecasts and budgets
and then comparing them to actual results. Learners will consider different costing and
budgetary systems and will discuss the causes of resulting variances.
1 Collect and analyse cost information within a business
2 Propose methods to reduce costs and enhance value within a business
3 Prepare forecasts and budgets for a business
4 Monitor performance against budgets within a business.

108
Content

1 Cost information
Types of costs and classification: materials, labour, overheads, direct and indirect, fixed,
variable and semi-variable
Costing methods: job costing, batch costing, process costing, contract costing, service
costing
Cost measurement: absorption and marginal costing, traditional overhead absorption and
activity-based costing, stock valuation methods (FIFO, LIFO, AVCO, standard costing)
Costing as basis for pricing and stock valuation: cost plus pricing, market pricing, target
costing
Data collection and analysis: sampling methods and purpose, presentation of data eg
tabular, diagrammatical, graphical, index numbers
2 Reduce costs and enhance value
Cost reports: preparation, comparison with other data, explanation of implications
Performance indicators: monitor and assess to identify potential improvements
Quality and value: definitions and interaction, added value, total quality management
3 Forecasts and budgets
The budgeting process: purpose, benefits, links with organisational objectives/strategy, the
budget manual, budgets as planning, coordinating, motivation and control devices
Budget preparation: limiting or key factors, master, subsidiary and functional budgets, cash
budgets, the preparation of sales budget, debtors budgets, creditors budgets production
cost, raw materials and finished goods budgets
Budgeting methods: incremental, zero-based, fixed and flexible
Behavioural consequences of budgets: padding the budget, spending to budget, creative
budgets
4 Performance against budgets
Variances: types, analysis, calculation, possible causes, corrective action
Reporting: operating statement, reconciliation of budgeted and actual results
Responsibility centres: relevance to budgeting, identification of responsibility for variances

109

the ability to:
1 Collect and analyse cost
information within a
business
identify and classify different types of cost
explain the need for, and operation of, different
costing methods
calculate costs using appropriate techniques
collect, analyse and present data using appropriate
techniques
2 Propose methods to reduce
costs and enhance value
within a business
prepare and analyse routine cost reports
calculate and evaluate indicators of productivity,
efficiency and effectiveness
explain the principles of quality and value, and
identify potential improvements
3 Prepare forecasts and
budgets for a business
explain the purpose and nature of the budgeting
process
select appropriate budgeting methods for the
organisation and its needs
prepare budgets according to the chosen budgeting
method
prepare a cash budget
4 Monitor performance
against budgets within a
business
calculate variances, identify possible causes and
recommend corrective action
prepare an operating statement reconciling budgeted
and actual results
report findings to management in accordance with
identified responsibility centres

110
Guidance

Delivery
Learners should be exposed to as many case studies and practical exercises as possible,
especially in relation to the costing, forecasting and budgeting techniques. Role play may help
to explore the interaction between different managers that is an essential part of the budgeting
process.
Assessment
Assessment may be in the form of assignments, or case studies investigating real or simulated
organisations.
Links
The unit links with others within the specification: Unit 2: Managing Financial Resources and
Decisions, Unit 6: Business Decision Making, Unit 10: Financial Reporting, Unit 11: Financial
Systems and Auditing and Unit 12: Taxation.
Additionally it covers much of the underpinning knowledge and understanding for the following
units of the NVQ in Accounting at level 4: Unit 8: Contributing to the Management of Costs
and the Enhancement of Value and Unit 9: Contributing to the Planning and Allocation of
Resources.
The unit covers topics essential to learners aiming for a career in this field and wishing to
become members of professional accounting bodies.
Support materials
Textbooks
Brammer J and Penning A Managing Costs and Resources (Osborne Books, 2001)
ISBN: 1872962440
J ones M Accounting for Non-Specialists (Wiley, 2002) ISBN: 0471495727
The financial and mainstream press can be a useful source of information, both in terms of data
for case studies and background understanding.
Videos
A variety of videos is available covering financial topics.

111
Websites
The professional accountancy bodies all have websites with useful information and many links.
The sites associated with accounting journals can also be of use, together with the biz/ed site,
which provides numerous resources for learners and teachers.

www.iasb.org.uk International Accounting Standards Board

112

113
Unit 10: Financial Reporting
Learning hours: 60

Description of unit
In this unit learners will discover how to prepare financial statements for different types of
business, taking into account the relevant legal and regulatory provisions. Included will be the
basic principles of group accounts. Learners will also develop tools for the interpretation of
financial statements.
1 Explain the regulatory framework for financial reporting
2 Prepare financial statements from complete or incomplete records
3 Present financial information in accepted formats for publication
4 Interpret financial statements.

114
Content

1 Regulatory framework
User groups: owners, management, employees, suppliers, customers, lenders, government,
potential investors, different needs from financial statements
User needs: profitability, liquidity, gearing, cash flow, job security, ASBs statement of
principles, IASBs framework for the presentation of financial statement
Legislation: Companies Acts 1985 and 1989, Partnership Act 1890, European directives
Other regulations: Statements of Standard Accounting Practice (SSAPs) and Financial
Reporting Standards (FRSs), The Accounting Standards Board (ASB), International
Accounting Standards (IASs)
2 Financial statements
Statements: trial balance, assets, abilities, income, expenses, capital, profit and loss
accounts, balance sheet, cash flow statement, notes to the accounts, statement of recognised
gains and losses
Types of business: sole trader, partnership, limited company, (public and private)
manufacturing/service/retail, group of companies
Preparation: from trial balance with adjustments eg stock, prepayments, accruals, bad
debts, depreciation, from incomplete records, basic consolidation of accounts
3 Formats for publication
Types of business: different formats for organisations described in outcome 2 above; annual
report
Formats: requirements of law and generally accepted accounting practice
4 Interpret financial statements
Ratios: calculate ratios to reflect profitability, liquidity, efficiency, gearing, investment;
comparison of these ratios both externally (other companies, industry standards) and
internally (previous periods), interpretation of results
Reporting: present findings in a format appropriate to users, weaknesses and limitations of
analysis

115

the ability to:
1 Explain the regulatory
framework for financial
reporting
describe the different users of financial statements
and their needs
explain the legal and regulatory influences on
financial statements
assess the implications for users
describe how different policies are dealt with by
accounting and reporting standards
2 Prepare financial statements
from complete or incomplete
records
prepare financial statements for a variety of
businesses from a trial balance, making appropriate
adjustments
prepare financial statements from incomplete
records
prepare a consolidated balance sheet and profit and
loss account for a simple group of companies
3 Present financial information
in accepted formats for
publication
explain how the information needs of different user
groups vary
prepare financial statements in a form suitable for
publication by a sole trader, partnership and limited
company
4 Interpret financial
statements
calculate accounting ratios to assess the performance
and position of a business
prepare a report incorporating and interpreting
accounting ratios, including suitable comparisons

116
Guidance

Delivery
Learners will need a number of case studies and exercises preparing and interpreting accounts
for different types of business. Understanding the format of published accounts will be easier if
learners have access to a variety of real financial statements and reports.
Assessment
Assessment is likely to be via case study-based assignments. Outcomes 2 and 3 will probably
have to be based on simulated scenarios, whilst the interpretation of financial statements could
be based on real sets of accounts.
Links
The unit links with others within the specification: Unit 2: Managing Financial Resources and
Decisions, Unit 6: Business Decision Making, Unit 9: Management Accounting: Costing and
Budgeting, Unit 11: Financial Systems and Auditing and Unit 12: Taxation.
Additionally, the unit covers much of the underpinning knowledge and understanding for the
following unit of the NVQ in Accounting at level 4: Unit 11: Drafting Financial Statements
(Accounting Practice, Industry and Commerce).
The unit covers topics essential for learners wishing to make a career in this field and wishing to
become members of professional accounting bodies.
Support materials
Textbooks
Cox D and Street D Financial Statements Tutorial (Osborne Books, 2001)
ISBN: 1872962548
Dyson J R Accounting for Non-Accounting Students (FT Prentice Hall 2000)
ISBN: 0273646834
J ones M Accounting for Non-Accounting Students (J ohn Wiley and Sons Ltd)
ISBN: 0471495727
The financial and mainstream press can be a useful source of information, particularly when
trying to appraise/interpret the performance and position of companies.

117
Websites
The professional accounting bodies all have useful websites which include a wealth of
information and numerous links. The websites of newspapers and accounting journals can also
be useful. The Accounting Standards Board have an informative website, particularly useful
when considering accounting and reporting standards.

www.asb.org.uk The Accounting Standards Board

Other resources
The published financial reports of public limited companies are available from the companies
themselves, or from the free online service provided by The Financial Times.

118

119
Unit 11: Financial Systems and Auditing
Learning hours: 60

Description of unit
This unit examines the accounting and management control systems of a business. Learners will
analyse these systems and evaluate their effectiveness, particularly in terms of controls and
safeguards against error and fraud. The purpose and conduct of an audit will be covered,
together with the process of audit reporting.
1 Evaluate the effectiveness of accounting systems within a business
2 Analyse the management control systems of a business
3 Contribute to the planning and conduct of an audit assignment
4 Prepare audit reports.

120
Content

1 Accounting systems
Accounting records: books of prime entry (daybooks), accounts and ledgers (sales,
purchases, nominal/general), trial balance, final accounts
Fundamental accounting concepts: accruals, prudence, consistency, going concern,
materiality, business entity
Accounting systems: manual and computerised, effect of business size and structure
2 Management control systems
Business risk: types eg operational, financial, compliance; identification of risk and
responsibility for risk management, influences on corporate governance eg Cadbury Code
Control: control systems and procedures within the business eg segregation of duties,
authorisation
Fraud: types, implications, detection
3 Planning and conduct of an audit assignment
Regulatory environment: legal duties and status of auditors, liability of auditors, auditing
standards and guidelines
Role of the auditor: internal and external audit and the relationship between the two,
responsibilities of management as opposed to auditors
Audit planning: scope, materiality, risk
Audit testing: systems based (compliance) and substantive testing, sampling methods eg
random, stratified, systematic; confidence intervals
Records: audit files and working papers, checklists and programmes, flowcharts and
questionnaires
4 Audit reports
Statutory reports: purpose, content (opinion of auditor), qualified and unqualified, types of
qualification
Management letters: purpose and content

121

the ability to:
1 Evaluate the effectiveness of
accounting systems within a
business
explain the purpose and use of the different
accounting records
explain the importance and meaning of the
fundamental accounting concepts
assess the factors which influence the nature and
structure of accounting systems
2 Analyse the management
control systems of a business
identify the different components of business risk
describe and evaluate the control systems in place in
a business
assess the risk of fraud within a business, and
suggest methods for detection of fraud
3 Contribute to the planning
and conduct of an audit
assignment
define and explain the duties, status and liability of
the auditor
describe the relationship between internal and
external audit
plan an audit with reference to scope, materiality
and risk
identify and use appropriate audit tests
record the audit process in an appropriate manner
4 Prepare audit reports explain the purpose and content of a statutory audit
report
explain and illustrate different types of qualification
within an audit report
draft suitable management letters in relation to a
statutory audit

122
Guidance

Delivery
Exposure to a variety of systems will aid understanding, and visits to local businesses may help
to facilitate this. Learners in employment should be encouraged to research the systems used by
their own organisations. Role play within case studies may help with the audit outcomes.
Hands-on experience of computerised accounting packages will aid understanding, but is not
essential.
Assessment
Assessment is likely to take the form of assignments or case studies based on real or simulated
situations. The accounting systems and management control systems outcomes could be
assessed via a workplace-based project, although the sensitivity and confidentiality of financial
information may hinder this.
Links
The unit links with others in the programme such as: Unit 2: Managing Financial Resources
and Decisions, Unit 6: Business Decision Making, Unit 9: Management Accounting: Costing
and Budgeting, Unit 10: Financial Reporting and Unit 12: Taxation.
Additionally the unit covers much of the underpinning knowledge and understanding for the
following units of the NVQ in Accounting at level 4: Unit 10: Managing Accounting Systems
and Unit 17: Implementing Audit Procedures.
The unit covers topics essential for learners wishing to make a career within finance and
wishing to become members of professional accounting bodies.
Support materials
Textbooks
Millichamp A H Auditing (Continuum International Publishing Group, 2002)
ISBN: 08264550X
Woolf E Auditing Today (FT Prentice Hall, 1997) ISBN: 0135894662
The financial and mainstream press is a useful source of background information, and could
provide case studies too.

123
Unit 12: Taxation
Learning hours: 60

Description of unit
This unit considers the taxation of both individuals and limited companies. Learners will
calculate taxable income and tax payable, allowing for different sources of income, relevant
allowable expenditure, and applicable tax-free allowances. Income tax, corporation tax and
capital gains tax are all covered.
1 Explain the duties and responsibilities of the tax practitioner and the UK tax
environment
2 Calculate personal tax liabilities for individuals and partnerships
3 Calculate corporation tax liabilities for companies
4 Calculate the capital gains tax payable for individuals and companies.

124
Content

1 Tax practitioner and the UK tax environment
UK tax environment: purpose and types of taxation (income tax, corporation tax, capital
gains tax, inheritance tax), different methods of collection, tax legislation
Tax practitioner: dealing with the Inland Revenue, advising clients, calculating liabilities,
respecting confidentiality, seeking advice when needed
2 Personal tax liabilities
Sources of income: income from employment including benefits in kind; from self-
employment eg sole trader or partnership; from investment/savings
Tax computations: relevant and allowable expenses, charges on income, payments to
charities, tax free allowances, tax rates and payment dates
Tax of the self-employed: bases of assessment, adjustment of profits and losses eg
disallowed expenditure, tax losses, capital expenditure and allowances
Documentation: tax returns, P60, P45, P11D
3 Corporation tax liabilities
Bases of assessment: scope of corporation tax, accounting periods and chargeable profits,
due dates
Computation: adjusted profits, treatment of losses, corporation tax rates, capital expenditure
and allowances, treatment of income tax deductions
4 Capital gains tax payable
Incidence and administration of CGT: chargeable persons/assets/disposals, basis of
assessment, payment dates
Computation: layout of computation, allowable expenditure, indexation allowance and taper
relief, dealing with losses, allowances, rates

125

the ability to:
1 Explain the duties and
responsibilities of the tax
practitioner and the UK tax
environment
describe the UK tax environment
explain the role and responsibilities of the tax
practitioner
explain the nature and purpose of taxation
2 Calculate personal tax
liabilities for individuals and
partnerships
identify relevant income, expenses and allowances
calculate taxable amounts and tax payable, for
employed and self-employed individuals, and advise
on payment dates
complete relevant documentation and returns
3 Calculate corporation tax
liabilities for companies
calculate chargeable profits and losses for a limited
company, together with available allowances
calculate the tax liability of a limited company and
advise on payment dates
explain how income tax deductions are to be dealt
with
4 Calculate the capital gains
tax payable for individuals
and companies
identify chargeable assets and disposals for an
individual or company
calculate the capital gains and losses for an
individual and a company, together with relevant
allowances
calculate the tax payable in respect of capital gains

126
Guidance

Delivery
Learners will need to practise the wide variety of tax calculations, probably from simulated
rather than real-life situations. The case studies should cover the basic calculations, and not deal
with complex taxation issues.
Assessment
Assessment is likely to be via case study-based assignments, although real-life situations may
generate evidence in some areas. Real life situations may be useful, although the sensitivity of
the information may cause difficulties. Role play may be an effective method when considering
administrative matters.
Links
This unit links with others in the programme: Unit 2: Managing Financial Resources and
Decisions, Unit 6: Business Decision Making, Unit 9: Management Accounting: Costing and
Budgeting, Unit 10: Financial Reporting and Unit 11: Financial Systems and Auditing.
Additionally, the unit covers much of the underpinning knowledge and understanding for the
following units of the NVQ in Accounting at level 4: Unit 18: Preparing Business Taxation
Computations and Unit 19: Preparing Personal Taxation Computations.
The unit covers topics essential for learners wishing to make a career in this field and to become
members of professional accounting bodies.
Support materials
Textbooks
Homer A and Burrows R Tolleys Tax Guide (Tolley Publishing) ISBN: 0754521532
Melville A Taxation (FT Prentice Hall) ISBN: 0273673130
Both of the above are published annually.
The financial and mainstream press may provide useful information, particularly with regard to
changes in the UK tax environment.

127

Management
128

129
Unit 13: Managing Professional Development
Learning hours: 60

Description of unit
This unit is designed to enable learners to assess and develop a range of professional and
personal skills in order to promote future personal and career development. The unit also aims
to develop learners abilities to organise, manage and practise a range of approaches to improve
their performance as self-organised learners, in preparation for work or further career
development.
The unit emphasis is on the needs of the individual but within the context of how the
development of self-management corresponds with effective team management in meeting
objectives.
1 Undertake responsibility for own personal and career development
2 Evaluate progress and achievement of personal development and learning targets
3 Develop a range of interpersonal and transferable business skills
4 Demonstrate self-managed learning in a professional context.

130
Content

1 Personal and career development
Self-appraisal: skills audit, evaluating self-management, leadership and interpersonal skills
Development plan: career and personal development, current performance, future needs,
aims, objectives, targets, review dates, achievement dates, learning programme/activities,
action plans
Portfolio building: developing and maintaining a personal portfolio
Constructing a CV: writing, maintaining and presenting
2 Evaluate progress
Evaluate progress: against original aims, objectives, targets, responding to feedback, re-
setting aims, objectives and targets
3 Interpersonal and transferable business skills
Problem solving: problem analysis, brainstorming, mind mapping, generating solutions,
choosing a solution, creative thinking
Verbal communication: effective listening, respect of others opinions, interviewing
techniques, negotiation, persuasion, presentation skills, assertiveness
Time management: prioritising workloads, setting work objectives, using time effectively,
making and keeping appointments, working steadily rather then erratically, time for
learning, estimating task time (partitionable tasks, non-partitionable tasks)
4 Self-managed learning
Targets: aims and requirements, preferences, personal orientation achievement goals,
identification of what has to be learnt, dates for achievement
Learning styles: activist, pragmatist, theorist, reflector, Kolbs learning cycle
Effective learning: skills of personal assessment, planning, organisation and evaluation
Online research methods: use of the internet, use of bulletin boards, newsgroups
Assessment of learning: improved ability range with personal learning, evidence of
improved levels of skill, learning achievements and disappointments.

131

the ability to:
1 Undertake responsibility for
own personal and career
development
identify, review and assess own performance of
current management skills
conduct a self-assessment inventory
devise and maintain a current CV and/or portfolio of
work
devise a personal development plan to achieve
personal targets and short and long-term learning
objectives
2 Evaluate progress and
achievement of personal
development and learning
targets
evaluate learning and development with original
aims and objectives set in the development plan
reset objectives in the light of evaluation and
feedback
3 Develop a range of
interpersonal and
transferable business skills
create or identify solutions to a range of work-based
problems
communicate in a variety of styles and appropriate
manner at various levels
identify and evaluate a range of effective time
management strategies
4 Demonstrate self-managed
learning in a professional
context
apply an awareness of how people learn to identify
suitable methods for development
suggest ways in which lifelong learning could be
encouraged
use a range of research methods and sources
give a presentation evaluating progress in achieving
learning objectives outlined in the personal
development plan

132
Guidance

Delivery
This unit would benefit from a series of skills-based workshops or a residential period to
facilitate personal development.
Guest speakers from businesses would be helpful in describing their job roles and identifying
the skills needed to run and work in a business environment.
Assessment
For the personal profile the learner should self-evaluate their current skills and experiences
using a skills audit and then construct a personal portfolio.
Assessment for the career development could be via a personal journal or skills log compiled
throughout the programme. It should be based on the learners own personal and career aims
and needs.
Evidence for interpersonal and transferable skills should involve role play and use examples of
real-life situations. Learners should also analyse qualities of existing business entrepreneurs.
Links
This unit has links with Unit 14: Working with and Leading People, Unit 15: Managing
Activities to Achieve Results and Unit 16: Managing Communications, Knowledge and
Information. It should be developed throughout the programme in order to influence the
selection of an appropriate project and career route.
Support materials
Adair J Effective Leadership (Pan Books, 1988) ISBN: 0330302302
Adair J Effective Time Management (Pan Books, 1989) ISBN: 0330302299
Hartley P Interpersonal Communication (Routledge, 1993)
Dubrin A 10 Minute Guide to Leadership (J ohn Wiley & Sons, 1997) ISBN: 0028614062
Glass N Management Masterclass: A Practical guide to the New Realities of Business
(Nicholas Brealey Publishing, 1996) ISBN: 1857881079
Godefroy and Clark The Complete Time Management System (Piatkus, 1990)
ISBN: 0749910445
J ay How to Write Proposals and Reports That Get Results (FT Prentice Hall 2000)
ISBN: 0273622021
Mullins Management and Organisational Behaviour (Pitman Publishing, 1996)
ISBN: 0415013852
Perkins Killer CVs and Hidden Approaches (FT Prentice Hall 2001) ISBN: 027365246X

133
Unit 14: Working with and Leading People
Learning hours: 60

Description of unit
This unit develops the knowledge and skills needed to work with and lead people. The unit
recognises that leadership operates within the internal framework of organisational values,
culture, policies and practices. It also recognises that, externally, leadership should meet the
requirements of current legislation and ensure ethical and environmentally friendly behaviour.
The unit also considers the requirements for recruitment, selection and retention. It examines
team working and leadership roles and identifies the work and development needs of individuals
in the workplace.
1 Explore recruitment, selection and retention procedures
2 Understand how to build winning teams
3 Evaluate the styles and impact of leadership
4 Analyse the work and development needs of individuals considering performance
monitoring and assessment.

134
Content

1 Recruitment, selection and retention procedures
Procedures: legislation and requirements relating to recruitment and selection; internal and
external recruitment processes; selection processes including job descriptions and person
specifications, interviewing, use of CVs, assessment centres; diversity issues, including
legal requirements and obligations and business and ethical cases regarding diversity;
legislation and requirements relating to employment, workers welfare and rights, health
and safety, retention, succession planning
2 Build winning teams
Building teams: conflict resolution processes, flexible working practices, theories of team
formation, structures and interactions; politics of working relationships, diversity issues
within teams, working cultures and practices; promotion of anti-discriminatory practices
and behaviours, team building processes, support, supervision, monitoring and evaluation
3 Leadership
Theories, models and styles of leadership and their application to different situations:
impact of leadership styles, theories and practices of motivating, influencing and persuading
others, influence of cultural environment within the organisation, differences between
leadership and management, leadership power and control, delegation
4 Work and development needs of individuals considering performance monitoring and
assessment
Identifying development needs, learning styles and processes: supporting individual
learning and encouraging lifelong learning, planning, recording, monitoring and evaluating;
group development processes and behaviour
Planning, work orientation and job design: application of motivation theories and
empowerment techniques, communication styles and techniques, delegation techniques and
processes, supervision styles, working culture and practices, regulations and codes of
practice, diversity issues
Performance monitoring and evaluation: measuring effective performance, providing
feedback, appraisal processes, benchmarking performance processes, mentoring and
counselling, methods of correcting under-performance, legislation, codes of practice and
procedures relating to disciplinary situations, diversity issues, management principles,
promotions of anti-discriminatory practices and behaviours

135

the ability to:
1 Explore recruitment,
selection and retention
procedures
identify characteristics of the person(s) required and
inform potential applicants
suggest suitable methods for selection
contribute to the selection process
apply legal, regulatory and ethical considerations to
the selection process
2 Understand how to build
winning teams
identify the mix of knowledge, skills and experience
necessary for a team to fulfil its functions
analyse dynamics within teams and stimulate and
promote a team spirit which helps motivate and
provides support to its members
clarify expectations of relationships
encourage team members to develop roles during
team assignments
empower teams to develop their own ways of
working independently and to rely on their own
capabilities within pre-set boundaries
3 Evaluate the styles and impact
of leadership
evaluate theories and styles of leadership
effectively communicate visions, goals and values to
colleagues and promote understanding of how
delegated objectives support these
enthuse and motivate colleagues to achieve
objectives
promote confidence among colleagues to engage
with change
empower colleagues to present their own ideas,
develop their own ways of working within agreed
boundaries and to provide a lead in their own areas
of expertise
136

the ability to:
4 Analyse the work and
development needs of
individuals considering
performance monitoring
and assessment
plan or analyse work activities using appropriate
objective-setting techniques and processes
negotiate assignments with colleagues using suitable
delegation techniques to motivate and enable
colleagues
review development needs and activities and
evaluate the effectiveness of activities
use suitable methods, with clearly defined and
relevant criteria and objectives, to assess the
performance of colleagues
identify factors affecting the quality of performance
and use these to provide clear and constructive
feedback on performance to colleagues
incorporate results of assessments into personal
development plans and other organisational
procedures for dealing with performance issues

137
Guidance

Delivery
Delivery will normally be through a mixture of lectures and seminars. Learners will be required
to work on case studies and to participate in role play to allow them to practise skills.
Tutors should be aware that this unit is intended to cover the requirements of general managers
working with and leading people, rather than being concerned with the needs of human resource
management as a specialist function.
Assessment
Evidence could be generated through assignments, examinations and/or case studies and may
encompass performance in role-play situations. Learners who are in work or who are able to
participate in relevant work experiences may be able to generate evidence from real workplace
situations. Where the working situation of a learner renders this impractical, learners should be
encouraged to use a host organisation or a job situation with which they are familiar to
simulate the role of a manager. Good use could be made of managerial situations even if these
are unpaid and/or part-time in nature.
Links
This unit has links with Unit 13: Managing Professional Development, Unit 15: Managing
Activities to Achieve Results and Unit 16: Managing Communications, Knowledge and
Information. There may also be links with units in the Human Resources Management pathway
and with Unit 56: Project Management.
The unit links with the following units from the Management Standards Centre National
Occupational Standards:
Unit B5: Provide leadership for your team
Unit D3: Recruit, select and keep colleagues
Unit D5: Allocate and check work in your team
Unit D6: Allocate and monitor the progress and quality of work in your area of
responsibility
Unit D7: Provide learning opportunities for colleagues.
Support materials
Textbooks
Biddle D and Evenden R Human Aspects of Management 2nd Edition (Chartered Institute of
Personnel and Development, 1989) ISBN: 0852923953
Huczynski A and Buchanan D Organisational Behaviour An Introductory Text
(Pearson Higher Education, 2003) ISBN: 0582843219
Maund L An Introduction to Human Resource Management: Theory and Practice
(Palgrave Macmillan, 2001) ISBN: 033391242X
138
Mullins L Management and Organisational Behaviour 6th Edition (FT Prentice Hall, 2004)
ISBN: 0273651471
Price A Human Resource Management in a Business Context 2nd Edition
(Thomson Learning, 2004) ISBN: 186152966X
Other reading
A daily broadsheet eg The Times, The Guardian
Management Today
People Management
Websites
Websites can provide reports on research and current theories as well as case study materials.
The following are examples of useful websites.
www.belbin.com Website of R M Belbin, expert on team
building
www.cipd.co.uk Chartered Institute of Personnel and
Development
www.eoc.org.uk Equal Opportunities Commission
www.greatplacetowork.gov.uk Advice on involving and developing personnel
to achieve results
www.human-resources.org Human resources learning centre
www.humanresources.about.com Advice on human resources issues
www.managing-people-performance.com Advice on performance management and
appraisal
www.peoplemanagement.co.uk Online magazine of Chartered Institute of
Personnel and Development

139
Unit 15: Managing Activities to Achieve
Results
Learning hours: 60

Description of unit
This unit focuses on the effective and efficient planning and management of work activities. It
provides learners with the knowledge and skills to design, implement and change operational
systems to improve their effectiveness and efficiency and to achieve the desired results.
Learners are encouraged to consider the importance and interrelationship of business processes
and the implementation of operational plans, together with quality systems and health and safety
in achieving satisfactory results.
1 Evaluate the importance of business processes in delivering outcomes based upon
business goals and objectives
2 Develop plans for their areas of responsibility and implement operational plans
3 Design and monitor appropriate systems to ensure quality of product and services
4 Manage health and safety in the workplace
5 Improve organisational performance.

140
Content

1 Business processes in delivering outcomes based upon business goals and objectives
Processes and functions: inter-relationships of functions, mission, aims, objectives and
culture; principles and models of effective process management; types of business process
measures and how to evaluate their suitability
2 Plans for their areas of responsibility and implement operational plans
Areas of responsibility: internal and external customers, customer orientation, market
research, product development, principles and methods of short- to medium-term planning,
PERT, critical path analysis, work flow, prioritising workloads, how to develop SMART
objectives, time management, how to analyse and manage risk, how to align resources with
objectives
Operational plans: product and service specifications and standards, meeting quality,
quantity, time and cost objectives, systems eg J ust-in-Time, value-added chains, statistical
process control, co-ordinating activities, working within organisational constraints and
limitations
3 Appropriate systems to ensure quality of product and services
Systems: Total Quality Management (TQM), TQM philosophy, principles, methods and
techniques; quality systems, quality circles, ISO9000/EN29000, managing and monitoring
quality
4 Health and safety in the workplace
Health and safety: legislation and regulations relating to health and safety at work,
organisational policies and procedures regarding health and safety, risk assessment and
monitoring, practical application of regulations, public attitudes and concerns relating to
health and safety
5 Organisational performance
Organisational performance: principles of models which underpin organisational
performance, types of performance measures and how to determine and set them,
cost/benefit analysis, risk analysis, the value of a customer-focused culture, the importance
of prevention rather than correction, importance of developing a continual improvement
culture and how to involve others, planning, proposing, implementing and evaluating
change, identifying wider implications of change within the organisation, Business Process
Re-engineering (BPR)

141

the ability to:
1 Evaluate the importance of
business processes in
delivering outcomes based
upon business goals and
objectives
describe the structure and culture of an organisation
and evaluate the inter-relationships between the
different processes and functions of an organisation
identify the mission, aims and objectives of an
organisation and analyse the effect of these on the
structure and culture of the organisation
define the methodology to be used to map processes
to the organisations objectives and functions and
evaluate the output of the process and analyse
quality gateways
2 Develop plans for their
areas of responsibility and
implement operational plans
develop plans which promote goals and objectives
for own area of responsibility and ensure plans are
consistent with legal, regulatory and ethical
requirements
use objectives which are specific, measurable,
achievable, realistic and time-based to align people
and other resources in an effective and efficient way
prepare and agree implementation plans which
translate strategic targets into practical efficient and
effective actions
manage work activities to prevent ineffective and
inefficient deviations from the operational plan
through effective monitoring and control
implement appropriate systems to achieve objectives
and goals of the plan in the most effective and
efficient way, on time and to budget and to meet
organisational standards of quality
3 Design and monitor
appropriate systems to
ensure quality of product
and services
define the resources, tools and systems required to
support the business process
define and implement quality audit systems/practice
to manage and monitor quality to standards specified
by the organisation and process operated
embed a quality culture to ensure continuous
monitoring and development of the process
142

the ability to:
4 Manage health and safety in
the workplace
carry out risk assessments as required by legislation,
regulation and organisational requirements and
ensure appropriate action is taken
identify health and safety regulations and legislation
applicable in specific work situations and ensure
these are correctly and effectively applied
systematically review organisational health and
safety policies and procedures in order to ensure
they are effective and that they comply with the
appropriate legislation and regulations
ensure practical application of health and safety
policies and procedures in the workplace
5 Improve organisational
performance
monitor systems and work activities and identify
problems and opportunities for improvement
recommend improvements which align with the
organisations objectives and goals and which result
in a reduction in the variation between what
customers and other stakeholders want and what
products, processes and services deliver
identify the wider implications of proposed changes
within the organisation
plan, implement and evaluate changes within an
organisation

143
Guidance

Delivery
Delivery will normally be through a mixture of lectures and seminars. Learners will be required
to work on case studies and to participate in role play to allow them to practise skills.
Tutors should be aware that this unit is intended to cover the requirements of managers who are
responsible for managing activities, rather than being concerned with the needs of specialist
managerial functions, such as, for example, professional quality managers.
Assessment
Evidence may be generated through assignments, examinations and/or case studies and may
encompass performance in role-play situations. Learners who are in work or who are able to
participate in relevant work experience may be able to generate evidence from real workplace
situations. Where the working situation of a learner renders this impractical, learners should be
encouraged to use a host organisation or a job situation with which they are familiar to
simulate the role of a manager. Good use could be made of managerial situations even if these
are unpaid and/or part-time in nature.
Links
This unit has links with Unit 13: Managing Professional Development, Unit 14: Working with
and Leading People and Unit 16: Managing Communications, Knowledge and Information.
There may also be links with Unit 39: Quality Management, Unit 53: Contemporary Issues in
Marketing Management, Unit 56: Project Management and Unit 60: Environmental
Management.
The unit links with the following units from the draft Management Standards Centre National
Occupational Standards:
Unit B1: Develop and implement operational plans for your area of responsibility
Unit B8: Ensure compliance with legal, regulatory, ethical and social requirements
Unit B10: Manage risk
Unit C2: Encourage innovation in your area of responsibility
Unit C3: Encourage innovation in your organisation
Unit C4: Lead change
Unit C5: Plan change
Unit C6: Implement change
Unit E5: Ensure your own actions reduce risks to health and safety
Unit E6: Ensure health and safety requirements are met in your area of responsibility
Unit E7: Ensure an effective organisational approach to heath and safety
Unit F12: Improve organisational performance.
144
Support materials
Textbooks
Harrison A et al Cases in Operations Management 3rd Edition (FT Prentice Hall, 2003)
ISBN: 0273655310
Naylor J Introduction to Operations Management 2nd Edition (FT Prentice Hall, 2002)
ISBN: 0273655787
Oakland J S and Porter L J TQM: Text with Cases 3rd Edition (Butterworth-Heinemann,
2003) ISBN: 0750657405
Slack N et al Operations Management (FT Prentice Hall, 2003) ISBN: 0273679066
Journals/newspapers
A daily broadsheet eg The Times, The Guardian, The Financial Times
Many professional and academic institutions publish journals relevant to this unit. Examples
are:
Production, Planning & Control
International Journal of Productivity & Performance Management
The TQM Magazine
Websites
Websites can provide reports on research and current theories as well as case study materials.
Examples are:
www.businesscases.org/newInterface Provides business case studies.
www.dti.gov.uk/mbp Department of Trade and Industry
www.efqm.org Management advice for European businesses
www.hbsworkingknowledge.hbs.edu Harvard Business School
www.hse.gov.uk Health and Safety Executive
www.hsl.gov.uk Health and Safety Laboratory
www.managerwise.com Provides information on management practice
www.praxiom.com Praxiom Research Group provides
information on ISO 9001:2000 quality
standards
www.quality.co.uk Provides advice on quality management

145
Unit 16: Managing Communications,
Knowledge and Information
Learning hours: 60

Description of unit
This unit recognises that communications do not automatically take place effectively in
organisations and thus both information and work-based knowledge is often deficient when
decisions are made. This suggests that managers need to look to improve the planning of their
communications processes as well as improving their communication skills. It also promotes the
need for managers to adopt a more inclusive approach to stakeholders affected by the decisions
they make and thus maintains the need for managers to network on a more structured basis. It
also suggests that managers need to make the information and knowledge they gain accessible
to other parts of the organisation.
This unit is designed to develop an understanding of the interaction between communications,
knowledge and information. The unit also looks at how IT systems can be used as a
management tool for collecting, storing, disseminating and providing access to knowledge and
information.
1 Assess information and knowledge needs internally and externally to improve decision
making and taking
2 Create strategies to increasepersonal networking to widen involvement in the decision-
making process
3 Develop communication processes to improve the gathering and dissemination of
information and organisational knowledge
4 Design and improveappropriate systems for the collection, storage and dissemination of
and access to the information and knowledge gathered.
146
Content

1 Information and knowledge needs
Sources: internal and external, primary and secondary, formal and informal, team workers,
customers and other stakeholders
Types: qualitative and quantitative, tacit and explicit, official and unofficial, policy and
opinion
2 Personal networking
Sources: stakeholders and useful contacts, internal and external
Methods: formal, informal
Strategies: formal and informal, direct or via media, relating and interacting trust and
confidentiality, forming business relationships, decision making and decision taking
3 Communication processes
Types: meetings and conferences, workshops and training events, internet and email,
written, telephone, video conferencing one-to-one meetings
Approaches: structured and coordinated, planned, formal and informal
Strategy: advantages, disadvantages; informal, face-to-face, formal in writing, emotional,
intelligence
4 Appropriate systems
Type: hard and soft, websites and mailings, access and dissemination
Style: trends and patterns, diagrams and text, consistent and reliable, current and valid; legal
and confidential

147

the ability to:
1 Assess information and
knowledge needs internally
and externally to improve
decision making and taking
identify the range of decisions to be taken
review information and knowledge needed to ensure
effective decision taking
assess internal and external sources of information
and understanding
make recommendations for improvement
2 Create strategies to increase
personal networking to
widen involvement in the
decision-making process
identify personnel including customers, other
stakeholders and other experts
make contact with those identified and develop
business relationships
involve those identified in decision making as
appropriate
suggest strategies for improvement
3 Develop communication
processes to improve the
gathering and dissemination
of information and
organisational knowledge
evaluate existing processes of communication in an
organisation and look to ensure and improve
appropriateness
implement and justify improvements to ensure
greater integration of systems of communication in
that organisation
on a personal level, identify weaknesses and develop
a personal plan to improve communication skills
4 Design and improve
appropriate systems for the
collection, storage and
dissemination of and access to
the information and
knowledge gathered
evaluate existing approaches to the collection,
formatting, storage, disseminating information and
knowledge
implement and justify appropriate changes to
improve the collection, formatting, storage,
disseminating information and knowledge
implement a strategy to improve access to systems
of information and knowledge to others as
appropriate

148
Guidance

Delivery
Variety in delivery beyond seminars and tutorials will be of value in developing this unit to
ensure that learners have opportunities to gain experience through a range of avenues of
discovery and learning. The unit requires an investigative approach through research,
background reading, case studies and, where possible, workplace experience with an emphasis
on exchanges of learning and understanding between learner groups and teams.
Assessment
Evidence of outcomes may be in the form of at least two of the following:
a reflective investigation into the communication, information and knowledge flows of an
organisation familiar to the learner
a critical appraisal of current management thinking
an assignment into the issues of managing communications, information and knowledge in
any organisation
development of new approaches to existing models of communication, information and
knowledge flow
implementation of an innovative approach to improve the flow of communication,
information and knowledge.
Links
This unit has links with Unit 13: Managing Professional Development, Unit 14: Working with
and Leading People and Unit 15: Managing Activities to Achieve Results.
The unit links up many of the Management NVQ units particularly:
Unit A3: Develop your personal networks
Unit D1: Develop productive relationships with colleagues and stakeholders
Unit F3: Manage business processes
Unit F12: Improve organisational performance.

149
Resources
Learners should have access to the internet to provide them with case studies and other
information.
Whilst there is a technical element to this unit, the stress on the effective development of
systems to support management decision making needs to remain the focus. There is a
developing literature in this area of debate, indicated below although appropriate articles need to
be sought in either the more technical or more general management journals.
Support materials
Textbooks
Avgerou C Information Systems and Global Diversity (Oxford University Press, 2003)
ISBN: 0199240779
Boddy D, Boonstra A and Kennedy G Managing Information Systems; An Organizational
Perspective (FT Prentice Hall, 2002) ISBN: 0273655957
Kovacic B New Approaches to Organizational Communication (State University of New
York Press, 1994) ISBN: 0791419185
Little S, Quintas P and Ray T Managing Knowledge: An Essential Reader
(Sage Publications, 2002) ISBN: 0761972137
McKenzie J and van Winkelen C Understanding the Knowledgeable Organisation (Thomson
Learning, 2004) ISBN: 1861528957
Preston P Reshaping Communications (Sage Publications, 2001) ISBN: 0803985630
Quirke B Communicating Corporate Change (McGraw-Hill, 1996) ISBN: 0077093119
Stewart T A Intellectual Capital: The New Wealth of Organisations (Nicholas Brealey
Publishing Ltd, 1998) ISBN: 1857881834
Video
The BBC and the Centre for Tomorrows Company Communications from the Building
Tomorrows Company series.

150

151

Marketing
152

153
Unit 17: Marketing Intelligence
Learning hours: 60

Description of unit
The aim of this unit is to enable learners to understand the purchase decision-making process
and to recognise the variables and situations that influence buying behaviour. The learner will
explore the marketing research process and assess the importance of different types of
information and marketing research requirements needed for effective marketing management in
a competitive environment. This unit will also provide learners with the specialist knowledge
and skills to prepare and present a research proposal.
1 Explore and evaluate buyer behaviour and the purchase decision-making process
2 Identify the nature and purpose of marketing information and marketing research
requirements
3 Assess current and potential market size and demand
4 Discuss the importance of customer satisfaction and feedback.

154
Content

1 Buyer behaviour and the purchase decision-making process
Customers and markets: purchase decision-making process, buying situations and types of
buying decision, dimensions of buyer behaviour
Buyer behaviour: influences on buyer behaviour, stimulus response models, models of
purchase behaviour, diffusion and innovation, model unitary and decision-making units
Buying motives: psychological factors, socio-psychological factors, sociological factors,
economic factors and cultural factors influencing customer behaviour, lifestyle and lifecycle
factors, customer and prospect profiling
Branding: relationship between brand loyalty, company image and repeat purchase
2 Marketing information and marketing research techniques
Market research: role and importance of marketing research, research process, objectives,
issues relating to the use of primary and secondary data sources and methods, existing
sources of primary and secondary market research, internal sources, external sources,
competitor data and sources and customer data, ethics
Market research companies: benefits and limitations of use, cost, reliability and types
Research techniques: stages of the market research process, research proposals, use of
qualitative and quantitative methods, use of surveys, sources of information, value and
interpretation of data
Types: face-to-face, telephone/postal, electronic, focus groups, depth interviews, omnibus
surveys, psychological research, mystery shoppers, sales, price and distribution research
Reliability of research: validity, sampling process, sample size, sample and interviewer bias,
methods of recruitment
Researching developing and established markets: issues associated with researching
developing as well as the established consumer, industrial and service markets
Use of research data: research data supporting marketing planning, producing actionable
recommendations, evaluating research findings for business decision making
3 Market size and demand
Measuring: defining the market, estimating total market size, value and volume, growth and
trends, forecasting future demand
Competitive analysis: competitor analysis market/product profiles of competition, brand
and market share, characteristics of the competition market innovator/follower,
objectives of the competition, strategies of the competition, strengths and weakness of
competition, future behaviour of the competition and their strategic intent

155
4 Customer satisfaction and feedback
Measuring customer satisfaction: post-sale surveys, guarantees, complaint handling and
suggestion systems, mystery shopping, product placement, service agreements, customer
follow-up
Customer care: customer care programmes, objectives, use and value in data collection,
customer care as a means of adding value and influencing purchase/repeat purchase
behaviour, customer retention

156

the ability to:
1 Explore and evaluate buyer
behaviour and the purchase
decision-making process
describe the main stages of the purchase decision-
making process
identify approaches and theories of buyer behaviour
in terms of individuals and markets
explain the factors that affect buyer behaviour
evaluate the relationship between brand loyalty,
corporate image and repeat purchasing
2 Identify the nature and
purpose of marketing
information and marketing
research requirements
review and evaluate different types of market
research techniques
identify and use sources of secondary data in two
marketing contexts
assess the validity and reliability of market research
findings
propose a marketing research plan to obtain
information in a given situation
3 Assess current and potential
market size and demand
identify market size growth and trends within a
given market
plan and carry out a competitor analysis for a given
organisation
evaluate an organisations opportunities and threats
for a given product or service
4 Discuss the importance of
customer satisfaction and
feedback
identify and evaluate techniques of assessing
customer response
design and complete a customer satisfaction survey

157
Guidance

Delivery
This unit builds on Unit 6: Business Decision Making and is designed to enable learners to
apply quantitative methods and research techniques in developing marketing research. It can be
delivered as a stand-alone package or in combination with the marketing planning unit.
Wherever possible a practical approach should be adopted with the use of case studies or the
collection and evaluation of primary and secondary data for a given organisation, product or
service. The use of outside speakers and visits to organisations could be used where appropriate
to support delivery. Efforts should be made to ensure that learners gain a good understanding of
the marketing knowledge they gain and can apply it to real-life situations and case studies.
Assessment
Evidence of outcomes may be in the form of written or oral assignments or tests. The
assignments may focus on real problems or case studies. Learning and assessment can be across
units, at unit level or at outcome level. Evidence could be at outcome level, although
opportunities exist for covering more than one outcome in an assignment.
Assessment may consist of a combination of formative and summative assessments.
Links
This unit is part of the marketing pathway and forms a direct link with the other marketing units
in the programme. The unit is also linked with Unit 1: Marketing, Unit 6: Business Decision
Making, Unit 18: Advertising and Promotion, Unit 19: Marketing Planning and Unit 20: Sales
Planning and Operations.
Resources
Access should be available to a learning resource centre with a wide range of marketing texts.
Texts should be supported by use of the newspaper business sections, as well as trade journals,
company reports and government statistics. Case studies, videos and documented examples of
current issues should illustrate the topical nature of this unit.
Support materials
Textbooks
Burns A C and Bush R F Marketing Research: Online Research Applications 3rd Edition
Chisnall P Marketing Research 6th Edition (McGraw Hill, 2001) ISBN: 0077097513
Crouch S and Housden M Marketing Research for Managers 3rd Edition (Butterworth
Heinemann, 2002) ISBN: 0750604883
Wilson A Marketing Research: An Integrated Approach (FT/Prentice Hall, 2002)
158
Campaign
reports
International Journal of Market Research
Marketing
Marketing Business
Marketing Review
Marketing Week
Videos
What is Market Research? (TV Choice, 1996)
Websites
www.acnielsen.co.uk website of A E Nielsen, marketing information
company
www.cim.co.uk The Chartered Institute of Marketing
www.eiu.com The Economist Intelligence Unit
www.euromonitor.com Euromonitor International, provides market
analysis

159
Unit 18: Advertising and Promotion
Learning hours: 60

Description of unit
This unit is designed to provide learners with a comprehensive understanding of the key areas of
advertising and promotion as part of an integrated approach to marketing communications.
Learners will develop the ability to determine specific promotional activities in response to
target audience and other stakeholders characteristics, and to apply and justify appropriate
promotional mixes within a strategic and tactical framework.
1 Explore the scope of marketing communications
2 Investigate the role and importance of advertising
3 Assess the role of below-the-line techniques and how they are used
4 Prepare an integrated promotional strategy.

160
Content

1 Marketing communications
Communication process: nature and components of marketing communications, model of
communication process, adoption process and adoption categories, consumer buying
decision-making process, influences on consumer behaviour personal, psychological,
social; response-hierarchy models, integration of marketing communications
Organisation of the industry: structure and roles of marketing communications agencies,
advertising agencies, media owners, advertisers, triangle of dependence, types of agency
full service, la carte, media independents, hot shops, concentration in buying and selling,
media sales houses; other supporting services PR, sales promotion, marketing research
Regulation of promotion: Sale of Goods Act, Trade Descriptions Act, Consumer Credit Act,
Data Protection Act; Statutory authority Independent Television Commission and Radio
Authority; self-regulation Advertising Standards Authority; consumerism, ethics and
public opinion as a constraint
Current trends: media fragmentation, micro-marketing, brand proliferation, media costs,
increasing use of sales promotion techniques at the expense of advertising and their effect
on branding and awareness, new media, eg payslips, till receipts, petrol pumps, increased
sophistication and use of marketing research; the role of marketing communications in
globalisation eg media availability, culture, religion, education and literacy
The impact of ICT: role of IT, internet and on channels of communication, cyber consumers,
global media reach, computerised home shopping interdependence, disintermediation,
and reintermediation; the ability to develop relationships through ICT, business-to-business
and business-to-consumer communications
2 Advertising
Role of advertising: definition, purpose, and objectives of advertising, functions of
advertising remind, inform, persuade, sell; advantages and disadvantages of advertising,
advertising process, role of advertising within marketing mix, within promotional mix,
characteristics of advertising media press, TV, radio, cinema, posters/outdoor,
advertising objectives
Branding: definition, purpose, objectives and dimensions of branding, benefits, concepts,
branding strategies blanket, family, individual, multi-branding, brand extension, own
brands, situations when branding is inappropriate, brand image, personality and equity,
brand evaluation techniques
Creative aspects of advertising: positioning, messages, message-appeals, advertisement
design and testing, copy writing, visuals, creative briefs, creative strategies and tactics,
impact of IT on advertisement design, measuring advertising effectiveness; key media
concepts (reach, duplication, frequency, GRPs, flighting); principles in measuring media
effectiveness
Working with advertising agencies: agency structures, role of account handler and account
planner, process and methods of agency selection, agency appointment including contracts
and best practice guidelines, agency/client relationships, remuneration commission, fee,
results, media planning; key account management and the stages in developing key account
relationships

161
3 Below-the-line techniques
Primary techniques: sales promotion, public relations, sponsorship and product placement,
direct marketing, packaging and merchandising; for each of the above techniques detailed
consideration of role, characteristics, objectives, advantages/disadvantages, appropriate
uses, evaluation measures
Other techniques: an overview of the role and uses of corporate communications, image and
identity, exhibitions, word-of-mouth, personal selling, miscellaneous and new media
4 Integrated promotional strategy
Budget formulation: methods percentage of sales, per unit, marginal analysis,
competitive parity, task, executive judgement, overview of media costs, budget
determination process, guidelines for budget allocation, relative costs of various
promotional techniques and low- and high-budget campaigns, new product considerations
Developing a promotional plan: communication goals AIDA, DAGMAR SOSTT +
4Ms, SOSTAC, situation analysis, objectives, target audiences, creative strategy,
promotional strategy and tactics, media selection, scheduling, budget allocation, evaluation
measures, inter and intra-media decisions, burst versus drip
Integration of promotional techniques: benefits, methods, role of positioning, positioning
strategies, push and pull strategies, importance of PR, corporate identity and packaging in
aiding integration, barriers to integration eg company and agency organisation structures,
cost, methods of overcoming these barriers, levels of integration, award-winning campaigns
Measuring campaign effectiveness: customer response, recall, attitude surveys, sales levels,
repeat purchases, loyalty, cost-effectiveness, degree of integration, creativity, quantitative
and qualitative measures

162

the ability to:
1 Explore the scope of
marketing communications
explain the structure, role and relationships between
parties in the communications industry
identify current trends in advertising and promotion
and evaluate their impact
use models to assess the impact of advertising and
promotion on customer behaviour
2 Investigate the role and
importance of advertising
explain and demonstrate how advertising can be
designed to differentiate, remind, inform and
persuade
evaluate appropriate uses and applications for
advertising in two given situations
evaluate the role, organisation and functions of
agencies in the advertising process
3 Assess the role of below-the-
line techniques and how they
are used
differentiate between the characteristics and
objectives of the various below-the-line promotional
techniques
recommend the use of individual techniques in two
commercial situations
4 Prepare an integrated
promotional strategy
explain the principles and process of campaign
management
combine appropriate techniques into an integrated
and cost-effective campaign
present promotion recommendations in the form of a
promotion plan
suggest appropriate measures for assessing
campaign effectiveness

163
Guidance

Delivery
This unit can be delivered as a stand-alone unit or as part of the marketing pathway. Wherever
possible, an integrated approach of academic and practical skills should be delivered. Emphasis
in this unit should be towards an observational approach to promotional practice necessitating
involvement in documentary and analytical studies based on current or case study marketing
activities and the practical application of the communications mix for a given product or
service.
Assessment
assignments may be on real problems or case studies. Evidence produced at outcome level can
maximise flexibility of delivery although tutors may find implementation of the unit using the
framework of a promotion plan, as a total package, better suited to the needs of learners. A
portfolio of evidence generated through work placement could provide evidence against
outcomes, although it is more likely that evidence will be generated by a combination of tutor-
led assignments or tests.
Evidence could include:
a group brand tracking study conducted across the academic year, which observes records
and analyses campaign techniques used by a major brand
individual assignment which appraises and compares individual advertisements to evaluate
their likely impact, audience and effectiveness
time-constrained assessment which requires a learner to devise a promotion plan against a
case study scenario.
Links
This unit forms a direct link with the other marketing units in the HN Business programme: Unit
1: Marketing, Unit 17: Marketing Intelligence, Unit 19: Marketing Planning and Unit 20: Sales
Planning and Operations.
Resources
Access should be available to a learning resource centre with a wide range of marketing texts
and companions. Texts should be supported by tracking of latest developments within the
communications industry from trade journals (Campaign, Marketing Week, Marketing,
Incentive and Marketing Business could be used) and Trade Association Monthly Bulletins
(ASA). Case studies, videos and documented examples of current practice should illustrate the
topical nature of this unit. Access to media statistics and cost information, BRAD and media
research reports eg J ICNARS is desirable. Where appropriate, guest speakers from the industry
should be invited to contribute.
164
Support materials
Textbooks
Fill C Marketing Communications: Contexts, Strategies and Applications 3rd Edition
(FT/Prentice Hall, 2002) ISBN: 0273655000
Smith P R and Taylor J Marketing Communications, An Integrated Approach
(Kogan Page, 2001) ISBN: 0749436697
Yeshin T Integrated Marketing Communications: The Holistic Approach (CIM/Butterworth
Heinemann, 1998) ISBN: 0750659637
BRAD
Campaign
reports
International Journal of Advertising
International Journal of Corporate Communications
Journal of Product and Brand Management
Marketing
Marketing Business
Marketing Incentive
Marketing Review
Marketing Week
Videos
Lucozade and Lara Croft (1998, TV Choice) TV advertisement for a revamped product
The Marketing Mix at Cadburys (1998, TV Choice) the thinking, planning and advertising
behind the launch of the Fuse chocolate bar
What Is Marketing? (2001, TV Choice) covers 4Ps and branding
Websites
contains a useful Knowledge Centre
www.revolution.haynet.com Revolution magazine

165
Unit 19: Marketing Planning
Learning hours: 60

Description of unit
This unit will consolidate and integrate previous knowledge and understanding of marketing
and enable the learner to apply and evaluate analytical tools in the development of marketing
plans. Upon completion, learners will be able to understand the planning needs of organisations,
present a marketing plan to meet target market needs, and achieve specified strategic marketing
objectives.
1 Compile marketing audits
2 Examine the main barriers to marketing planning
3 Formulate a marketing plan for a product or service
4 Examine ethical issues in marketing.

166
Content

1 Marketing audits
Changing perspectives: changing perspectives in marketing planning, market-led strategic
change
Assessment of capability: evaluate issues relating to the aspects of competing for the future
and balancing strategic intent and strategic reality
Organisational auditing: evaluating and coming to terms with organisational capability:
balancing strategic intent and strategic reality, the determinants of capability, managerial,
financial, operational, human resource and intangible (brand) capability, approaches to
leveraging capability, aspects of competitive advantage
Environmental auditing: approaches to environmental analysis, the identification and
evaluation of key forces using the PEST framework, the implications for marketing
planning of different environmental types, Porters five forces, identifying the
organisations competitive position and relating this to the principal opportunities and
threats, market, product and brand life-cycles
2 Barriers to marketing planning
Barriers: objective/strategy/tactics confusion, isolation of marketing function,
organisational barriers, organisational culture, change management, ethical issues,
McDonalds Ten S approach
3 Marketing plan
The role of marketing planning in the strategic planning process: the relationship between
corporate objectives, business objectives and marketing objectives at operational level; the
planning gap and its impact on operational decisions
The strategic alternatives for new product development: an overview of the marketing
planning process, SWOT, objectives in differing markets, products and services, product
modification through to innovation, evaluation of product and market match, use of Ansoff
matrix in NPD and meeting customer needs, product failure rates and implications for
screening ideas against company capabilities and the market, product testing, test marketing,
organisational arrangements for managing new product development, unit costs,
encouraging and entrepreneurial environment, the importance of celebrating failure
Pricing policy: price taking versus price making, the dimensions of price, approaches to
adding value, pricing techniques cost-based versus market-oriented pricing; the
significance of cash flow, the inter-relationships between price and the other elements of the
marketing mix, taking price out of the competitive equation
Distribution: distribution methods, transport methods, hub locations and distribution
centres, choice of distribution medium to point-of-sale, distribution and competitive
advantage
Communication mix: evaluation of promotional mix to influence purchasing behaviour,
media planning and cost, advertising and promotional campaigns and changes over the
PLC, field sales planning

167
Implementation: factors affecting the effective implementation of marketing plans, barriers
to implementation and how to overcome them, timing, performance measures financial,
non-financial, quantitative, qualitative; determining marketing budgets for mix decisions
included in the marketing plan; methods of evaluating and controlling the marketing plan;
how marketing plans and activities vary in organisations that operate in virtual marketplace
4 Ethical issues
Ethical issues in marketing: ethics and the development of the competitive stance, different
perspectives on ethics across nations, ethical trade-offs and ethics and managerial cultures
Ethics of the marketing mix: management of the individual elements of the marketing mix
Product: gathering market research on products, identification of product problems and
levels of customer communication, product safety and product recall
Price: price fixing, predatory pricing, deceptive pricing, price discrimination
Promotion: media message impact, sales promotion, personal selling, hidden persuaders and
corporate sponsorship
Distribution: abuse of power restriction of supply
Counterfeiting: imitation, faking, pre-emption, prior registration
Consumer ethics: warranty deception, misredemption of vouchers, returns of merchandise,
recording of music and videos, software copying, false insurance claims

168

the ability to:
1 Compile marketing audits appraise the processes and techniques used for
auditing the marketing environments
apply organisational and environmental auditing
techniques in a given situation
2 Examine the main barriers to
marketing planning
identify the main barriers to marketing planning
suggest how organisations may overcome barriers to
marketing planning
3 Formulate a marketing plan
for a product or service
explain the need to be innovative in the market or
services
identify and assess techniques for developing
products
make recommendations for pricing, distributing and
communicating a product or service
specify measures to monitor and review marketing
performance
present a marketing plan for a product or service
4 Examine ethical issues in
marketing
investigate two different organisations responses to
ethics in marketing
identify ethical issues in marketing
describe the implications of ethical issues on the
marketing mix for an organisation

169
Guidance

Delivery
This unit can be delivered as a stand-alone unit or as a component of the marketing pathway. It
is designed to be linked to the Unit 1: Marketing and Unit 17: Marketing Intelligence and can
be delivered and assessed in the form of an integrated case study on a real or tutor-devised
organisation, product or service. Efforts should be made to ensure that learners gain a good
understanding of the theoretical underpinning and practical application of marketing planning
and produce credible responses
Assessment
assignments may focus on real problems or case studies. Learning and assessment can be at unit
level as an integrated unit or at outcome level. Evidence could be at outcome level although
opportunities exist for covering more than one outcome in an assignment
Links
This unit is a part of the marketing pathway and forms a direct link with the marketing units in
the HN Business programmes: Unit 1: Marketing, Unit 17 Marketing Intelligence, Unit 18:
Advertising and Promotion and Unit 20: Sales Planning and Operations. The unit is also linked
with Unit 4: Business Environment and Unit 7: Business Strategy.
Resources
Access should be available to a learning resource centre with a wide range of marketing texts
and companions. Texts should be supported by use of journals, company reports and
government statistics. Case studies, videos and documented examples of organisations and their
marketing, auditing and planning techniques should illustrate the topical nature of this unit.
Support materials
Textbooks
Dibb S et al Marketing: Concepts and Strategies 4th Edition (Houghton Mifflin, 2001)
ISBN: 0395962447
Fifield P Marketing Strategy 2nd Edition (Butterworth Heinemann, 1998) ISBN: 075063284
Hatton A The Definitive Guide to Marketing Planning (FT/Prentice Hall, 2000)
ISBN: 0273649329
McDonald M Marketing Plans: How to Prepare Them, How to Use Them 5th Edition
(Butterworth Heinemann, 2002) ISBN: 0434912301
170
Campaign
reports
Journal of Marketing
Journal of Services Marketing
Marketing
Marketing Business
Marketing Review
Marketing Week
Videos
Marketing Decisions (1998, TV Choice) marketing problems faced by three companies
The Marketing Mix at Cadburys (1998, TV Choice) the thinking, planning and advertising
behind the launch of the Fuse chocolate bar
Websites
contains a useful knowledge centre

171
Unit 20: Sales Planning and Operations
Learning hours: 60

Description of unit
The aim of this unit is to develop a critical awareness of sales planning and operations. Learners
will analyse the stages involved in the selling process, and evaluate the role of personal selling
in creating value and developing customer relationships in a variety of contexts and
environments. The unit will also consider the management and organisation of the sales force to
achieve sales objectives.
1 Explore the role of personal selling within the overall marketing of organisations
2 Identify and evaluate the stages in the selling process
3 Analyse the role and objectives of sales management
4 Examine the implications of operating in different sales environments and contexts.

172
Content

1 Personal selling
Promotion mix: personal and impersonal communication, objectives of promotional activity,
push-pull strategies, integrating sales with other promotional activities, evaluating
promotion, allocation of promotion budget
Understanding buyer behaviour: consumer and organisational purchase decision-making
processes, personal, psychological and social influences on consumer purchase behaviour,
environmental, organisational, interpersonal and individual influences on organisational
buyer behaviour, purchase occasion, buying interests and motives, buyer moods, level of
involvement, importance and structure of the DMU, finding the decision-taker, distinction
between customers and users
Role of sales force: definition and role of personal selling, types of selling, characteristics
for personal selling, product and competitor knowledge, sales force responsibilities,
information gathering, customer and competitor intelligence, customer databases,
prospecting, stock allocation, sales reports and records, liaison with sales office, sales force
communications and the role of IT in improving communications
2 Selling process
Principles: customer-oriented approach, preparation and objective setting, opening remarks,
techniques and personal presentation, need for identification and stimulation, presentation,
demonstration and use of visual aids, handling and pre-empting objections, techniques and
proposals for negotiation, buying signals and closing techniques, post sale follow-up,
relationship marketing
3 Sales management
Sales strategy: setting sales objectives, relationship of sales, marketing and corporate
objectives, importance of selling in the marketing plan, sources, collection and use of
marketing information for planning and decision-making, role of sales forecasts in planning,
quantitative and qualitative sales forecasting techniques, strategies for selling
Recruitment and selection: importance of selection, preparing job descriptions and
personnel specifications, sources of recruitment, interview preparation and techniques,
selection and appointment
Motivation, remuneration and training: motivation theory and practice financial and
non-financial incentives, salary and commission-based remuneration, induction and ongoing
training, training methods, preparation of training programmes, the sales manual
Organisation and structure: organisation of sales activities by product, customer, area,
estimation of call frequency, territory design, journey planning, allocation of workload,
team building, creating and maintaining effective working relationships, sales meetings and
conferences
Controlling sales output: purpose and role of the sales budget, performance standards,
appraisals, self-development plans, customer care

173
Database management: importance of database building, sources of information, updating
the database, use of database to generate incremental business and stimulate repeat
purchase, use of database control mechanisms, importance of IT methods in database
management
4 Sales environments and contexts
Sales settings: sales channels retailers, wholesalers, agents, importance of segmentation,
industrial selling, selling to public authorities, selling for resale, telephone selling, selling
services, pioneer selling, systems selling, selling to project teams or groups
International selling: role of agents and distributors, sources, selection and appointment of
agents/distributors, agency contracts, training and motivating agents/distributors, use of
expatriate versus local sales personnel, role, duties and characteristics of the export sales
force, coping in different cultural environments
Exhibitions and trade fairs: role, types and locations of trade fairs and exhibitions,
principles of stand design, setting objectives for exhibition attendance, audience profile and
measurement, qualification and follow-up of exhibition leads, evaluation of exhibition
attendance, financial assistance for exhibition attendance

174

the ability to:
1 Explore the role of personal
selling within the overall
marketing of organisations
provide two examples of objectives from different
elements in the communication mix and explain
their roles and the relationship between them
illustrate how an understanding of buyer behaviour
can be used in personal selling
identify the environmental and managerial forces
affecting personal selling
describe the main types of personal selling
2 Identify and evaluate the
stages in the selling process
discuss the principles of personal selling
analyse the stages in the personal selling process
3 Analyse the role and
objectives of sales
management
explain how sales strategies are revised in line with
corporate objectives
devise appropriate recruitment and selection
procedures
evaluate the role of motivation, remuneration and
training in enhancing sales performance
describe two techniques used to co-ordinate and
control sales output
use given information to recommend appropriate
organisation structures and procedures
4 Examine the implications of
operating in different sales
environments and contexts
identify and give three examples of the differences
in the nature of sales tasks and skills in a variety of
contexts
explain the role of sales staff operating in an
international environment
explain the purpose of trade fairs and evaluate their
contribution

175
Guidance

Delivery
This unit is designed to have a variety of theoretical and practical delivery mechanisms. The use
of case studies and sales organisation evaluation could be used to develop theoretical
knowledge. A data-bank of sales figures relating to number of customers, number of sales visits
and number and value of orders for a number of sales staff could be analysed to evaluate sales
force performance against a variety of criteria such as profitability or new business generation.
The use of outside speakers and visits to organisations could be used where appropriate to
support delivery. Efforts should be made to ensure that learners gain a good understanding of
the marketing knowledge they gain and can apply it to real life situations and case studies.
Assessment
Links
This unit forms a direct link with the other marketing units in the HN Business programme: Unit
1: Marketing, Unit 17: Marketing Intelligence, Unit 18: Advertising and Promotion and Unit
19: Marketing Planning.
Resources
There are numerous textbooks covering sales planning and operations. It is important that
learners are directed to a balance of comprehensive theoretical texts and the more readable how
to books which exist and provide an excellent source of practical exercises.
Marketing and sales journals are a good topical source of personal selling and sales management
activities. Over the years a number of videos have been produced demonstrating good (and bad)
sales techniques. Many of these form part of sales training programmes which can be purchased.
Throughout the course of an academic year, topical programmes often appear on television.
Support materials
Textbooks
J obber D and Lancaster G Selling and Sales Management (FT/Prentice Hall, 2000)
ISBN: 0273674153
J ohns T Perfect Customer Care: All You Need to Get It Right (Random House, 1999)
ISBN: 0099406217
Noonan C Sales Management (Butterworth Heinemann, 1998) ISBN: 0750633611
176
Campaign
reports
Journal of Personal Selling and Sales Management
Marketing
Marketing Business
Marketing Review
Videos
Over the years a number of videos have been produced demonstrating good (and bad) sales
techniques. Many of these form part of sales training programmes which can be purchased.
Throughout the course of an academic year, topical programmes often appear on television.
There is also a good source of topical video material available from:
The Open University Broadcasting Office
P O Box 953
Walton Hall
Milton Keynes MK7 6EB
Telephone: 01908 652777
Websites
www.iops.co.uk Institute of Professional Sales

177

Human Resource
Management
178

179
Unit 21: Human Resources Management
Learning hours: 60

Description of unit
This unit provides an introduction to the concepts and practices of human resource management
within the United Kingdom. The aim of the unit is to provide an understanding of the human
resource management role and function within the key areas of resourcing, reward, development
and relations.
1 Investigate the traditional view of personnel management and the new approach of
human resource management
2 Evaluate the procedures and practices used for recruiting and selecting suitable
employees
3 Establish the effectiveness of principles and procedures for monitoring and rewarding
the employee
4 Explore rights and procedures on exit from an organisation.

180
Content

1 Personnel management and the new approach of human resource management
The nature and development of personnel management and human resource management:
historical development of personnel management; the change in context which has led to the
term human resource management
The roles and tasks of the human resource management function: the range of tasks and
activities of the human resource management practitioner eg recruitment and selection,
payroll administration and reward management, training and development and performance
management and employee relations; the changing roles of human resource specialists eg
the move from reactive/welfare to proactive/strategic and increasing requirement to work in
partnership with the business; the involvement of line managers in human resource practices
eg selection, disciplinary handling, absence management, coaching and appraising
2 Procedures and practices used for recruiting and selecting suitable employees
Human resource planning: definition, purpose, processes and stages involved, the types of
data needed as a basis for human resource planning, limiting factors eg supply and demand
for labour
The systematic approach to recruitment: recruitment policies, recruitment procedures, job
analysis, job description, person specification, recruitment methods and media including
design of application form
The systematic approach to selection: aims and objectives of the selection process; the
interview advantages and disadvantages, interviewer skills and questioning techniques;
alternative selection methods to supplement the interview eg assessment centres,
psychological testing, work simulations, references
The legislative framework and benchmark evidence guiding the recruitment and selection
process: reference to Sex Discrimination Act (1975), Race Relations Act (1976), Equal Pay
Act (1970), Disability Discrimination Act (1995); exploration of a range of organisational
approaches to recruitment and selection highlighting best practice
3 Principles and procedures for monitoring and rewarding the employee
Reward management: the process of job evaluation and the main factors determining pay,
different types of reward systems, the relationship between motivation theories and reward,
approaches to monitoring and managing performance
4 Rights and procedures on exit
Tribunals: role, composition, powers and procedure
Dismissal: wrongful, unfair, justified
Termination of employment: resignation, retirement, termination of contract
Redundancy: definition, procedures, selection, redeployment, retraining
Management of exit: procedures, notice, counselling, training

181

the ability to:
1 Investigate the traditional
view of personnel
management and the new
approach of human
resource management
distinguish between personnel management and
human resource management and discuss the
historical development and changing context in
which they operate
assess the role, tasks and activities of the human
resource practitioner
evaluate the role and responsibilities of line
managers in human resource practices
2 Evaluate the procedures and
practices used for recruiting
and selecting suitable
employees
analyse the need for human resource planning, the
information required and the stages involved in this
process
compare the structured process for recruitment in
two organisations and evaluate the methods and
media that can be used
evaluate the interview as a selection technique and
discuss a range of alternative selection methods
available
evaluate selection practices and procedures in two
organisations comparing these to best practice
3 Establish the effectiveness of
principles and procedures
for monitoring and
rewarding the employee
evaluate the process of job evaluation and the main
factors determining pay
identify a range of reward systems eg performance-
related pay and its benefits and limitations
explain the link between motivational theory and
reward
explore organisational approaches to monitoring
performance
4 Explore rights and
procedures on exit from an
organisation
evaluate exit procedures used by two organisations,
comparing these to best practice
analyse selection criteria for redundancy

182
Guidance

Delivery
Learners understanding of human resource management can be developed through the use of a
variety of learning methods including lectures, discussions, seminars, videos, role plays, case
studies and learner-led presentations.
Investigations of human resource management policies and practices within organisations and
talks from human resource management practitioners can both develop understanding and
provide support for the knowledge and skill base established within the unit.
Assessment
Evidence of outcomes may be assessed as follows:
use of presentations as a context for conveying understanding of human resource
management issues; learners could use their own experiences and commercial contacts as a
basis for collection and analysis of human resource management policies and practices
use of role plays to simulate interview practice
case studies to assess learners understanding of human resource management issues eg
disciplinary and grievance handling, reward systems, training interventions
written assignments to test knowledge and understanding.
Links
The unit forms a direct link with other human resource units in the HN Business programme
such as Unit 3: Organisations and Behaviour, Unit 22: Managing Human Resources, Unit 23:
Human Resources Development and Unit 24: Employee Relations.
Links are also to be found with Unit 25: English Legal System, which covers employment
protection legislation.
The unit covers some of the underpinning knowledge and understanding for the following units
of the NVQ in Operational Personnel at level 4:
Mandatory units
Area A Resourcing and Retention.

183
Support materials
Textbooks
Armstrong M A Handbook of Human Resource Practice (Kogan Page, 2001)
ISBN: 0749433930
BPP Business Basics: Human Resource Management 2nd Edition (BPP Publishing, London,
1997) ISBN: 0751720763
Corbridge M and Pilbeam S Employment Resourcing (FT Prentice Hall, 1998)
ISBN: 0273625276
Dransfield R/Howkins S/Hudson F and Davies W Human Resource Management for Higher
Awards (Heinemann, 1996) ISBN: 0435455281
Foot, M and Hook, C Introducing Human Resource Management 3rd Edition (FT Prentice
Hall, Harlow, 2002) ISBN: 0273651439
Torrington D/Hall L and Taylor S Human Resource Management 5th Edition (FT Prentice
Hall, Harlow, 2002) ISBN: 027364397
Human Resource Management Journal
People Management
Personnel Review
Personnel Today
The Guardian and any other quality broadsheet newspapers
Training
Videos
Companies such as Video Arts and Melrose produce a variety of videos, which may be useful in
covering human resource management topics. Television current affairs programmes can also
provide a useful additional resource.
Websites
www.acas.org.uk Advisory, Conciliation and Arbitration Service
www.bized.ac.uk provides business case studies appropriate for
development website with a range of learning
resources
www.compactlaw.co.uk employment questions and answers
www.cre.org.uk Commission for Racial Equality
www.drc-gb.org.uk Disability Rights Commission
www.dti.gov.uk Department of Trade and Industry
www.employment-studies.co.uk Institute for Employment Studies
184

www.guardian.co.uk provides links to news items and reports
www.incomesdata.co.uk up-to-date intelligence on employment issues
(Incomes Data Services)
www.peoplemanagement.co.uk bi-monthly journal of the Chartered Institute
of Personnel and Development
www.personneltoday.com relevant articles and statistics
www.trainingjournal.com relevant articles on current training and
development topics

For recruitment and selection learners could access websites such as:

www.bbc.co.uk/jobs gives details of vacancies at the BBC
www.jobability.com gives details of job opportunities for disabled
people
www.monster.co.uk gives details of job opportunities and careers
advice
www.totaljobs.com gives details of job opportunities and careers
advice

185
Unit 22: Managing Human Resources
Learning hours: 60

Description of unit
The aim of this unit is to build upon the knowledge and understanding developed in the human
resource management unit.
A broader and wider perspective is developed in relation to the application of human resource
management practices. A comparative approach is also introduced to consider human resource
management policy and practice in a global context.
1 Examine the differing perspectives of human resource management
2 Review ways of developing flexibility within the workplace
3 Determine the need for equal opportunities within the workplace
4 Explore topical human resource practices and issues.

186
Content

1 Differing perspectives of human resource management
The different perspectives of human resource management (HRM): soft and hard human
resource management, loose and tight human resource management; differences between
HRM and IR and personnel practices eg use could be made of Storeys research, 1992
highlighting twenty seven points of difference; strategic approaches to HRM
2 Flexibility within the workplace
Flexible working models: the core and periphery workforce model (Atkinson 1984);
Handys (1989) Shamrock Organisation
Types of flexibility: eg numerical, functional, temporal, locational, financial
Flexible working methods: eg employment of part-time and temporary staff, teleworking,
homeworking, job sharing, zero hours contracts, annual hours
Labour market and the need for flexibility: labour market demographics, employment
statistics, local, regional and national labour markets and the growing recognition of the
importance of work-life balance
3 Equal opportunities within the workplace
Discrimination in employment: forms of discrimination, eg gender, ethnicity, religion,
disability, age, sexual orientation, education
The legislative framework: direct and indirect discrimination; current legislation and
proposed changes to the law eg age, temporary workers
Equal opportunities in employment: equal opportunities practices and initiatives in the
workplace including initiatives such as Opportunity 2000 and positive action approaches,
codes of practice, implementing policy, training within the law and monitoring; the move
from equal opportunities to managing diversity
4 Topical human resource practices and issues
Performance management: the role, purpose and types of appraisal, 360 degree feedback,
the skills of carrying out appraisals and giving feedback, the link of appraisals to reward
management
Counselling and employee welfare: the traditional welfare function occupational health
practices and policies, the management of ill health at work, costs and absenteeism,
accidents at work (statistics)
Health and safety legislation: Health and Safety at Work Act (1974) and the role of the
Health and Safety Commission, European Community Directives eg Working Time
Regulations (1998), Parental Leave (2000)
New approaches to welfare: ergonomics, alcohol and drug abuse, HIV and AIDS, stress and
stress management, workplace counselling
Other topical issues: e-recruitment, e-learning, flexible benefits, work-life balance,
employee voice

187

the ability to:
1 Examine the differing
perspectives of human
resource management
explain Guests model of hard-soft, loose-tight
dimensions of HRM
review the differences between Storeys definitions
of HRM and personnel and IR practices
analyse HRM from a strategic perspective and its
implications for the role of the line manager and
employees
2 Review ways of developing
flexibility within the
workplace
review and explain a model of flexibility and show
how this might be applied in practice
describe the need for flexibility and the types of
flexibility which may be developed by an
organisation and give examples of how they can be
implemented
evaluate the advantages and disadvantages of
flexible working practices from both the employee
and the employer perspective
3 Determine the need for equal
opportunities within the
workplace
describe the forms of discrimination that take place
review how the legislative framework and any
proposed changes relating to discrimination in the
workplace can be applied by an organisation
explain a range of current initiatives and practices
which focus on equal opportunities in employment
compare and contrast equal opportunities and
managing diversity
4 Explore topical human
resource practices and
issues
explain performance management in practice
critically evaluate different human resource
practices in the workplace
evaluate the impact of globalisation on issues such
as human resource planning
review the impact of different national cultures and
practices human resource professionals can employ
to manage a culturally diverse workforce

188
Guidance

Delivery
Learners understanding of human resource management can be developed through the use of a
variety of learning methods including lectures, discussions, seminars, videos, role plays, case
studies and learner-led presentations.
Investigations of human resource management policies and practices within organisations and
talks from human resource management practitioners, can both develop understanding and
provide support for the knowledge and skill-base established within the unit.
Assessment
use of presentations as a context for conveying understanding of human resource
management issues. Learners could use their own experience and commercial contacts as a
basis for collection and analysis of human resource management policies and practices
use of role play to simulate appraisal practice
case studies to assess learners understanding of human resource management issues eg
stress management, flexibility, equal opportunities and performance management
written assignment to test knowledge and understanding.
Links
This unit links with the other human resource units in the HN Business programme: Unit 21:
Human Resources Management, Unit 23: Human Resources Development and Unit 24:
Employee Relations. It also has links with NVQ level 4 in Personnel.
Support materials
Textbooks
Armstrong M A Handbook of Human Resource Practice (Kogan Page, 2001)
ISBN: 0749433930
BPP Business Basics: Human Resource Management 2nd Edition (BPP Publishing, London,
1997) ISBN: 0751720763
Corbridge M and Pilbeam S Employment Resourcing (FT Prentice Hall, 1998)
ISBN: 0273625276
Dransfield R/Howkins S/Hudson F and Davies W Human Resource Management for Higher
Awards (Heinemann, 1996) ISBN: 0435455281
Foot M and Hook C Introducing Human Resource Management 3rd Edition (FT Prentice
Hall, Harlow, 2002) ISBN: 0273651439
Torrington D/Hall L and Taylor S Human Resource Management 5th Edition (FT Prentice
Hall, Harlow, 2002) ISBN: 0273646397

189
The Economist
People Management
Personnel Review
Personnel Today
Training
Videos
covering human resource management topics. Television current affairs programmes can also
Websites
resources
www.ilo.org International Labour Organisation
www.isma.org.uk International Stress Management Association
(UK)
www.successunlimited.co.uk site on bullying in the workplace
development topics
www.wfpma.com a journal with articles on international aspects
of managing people at work
www.wto.org World Trade Organisation
190

191
Unit 23: Human Resources Development
Learning hours: 60

Description of unit
This unit aims to develop the learners understanding of the nature and role of training and
employee development. The unit provides an introduction to a range of government initiatives
aimed at developing skills within the labour market. It explores how people learn as well as
developing a systematic approach to the design and delivery of training. Consideration is given
to how to measure the effectiveness of training and development in practice.
1 Explore a range of differing learning theories and learning styles
2 Critically evaluate the planning and design of training and development
3 Explore the role and purpose of evaluation and evaluation techniques
4 Examine a range of government-led initiatives aimed at developing skills in the labour
market.

192
Content

1 Learning theories and learning styles
Learning theories and learning styles: activists, reflectors, theorists, pragmatists, (Honey
and Mumford 1982) and Kolbs (1979) learning style inventory; learning theories eg
behaviourist, cognitive; impact of the learning curve and transfer of learning to the work
place, impact of learning theories and styles when planning and designing a learning event
2 Planning and design of training and development
The systematic approach: the role of training and development policy within the
organisation, identification of training and development needs, setting training objectives,
planning issues eg numbers, location, content, internal/external trainers, administration;
designing and using a range of training and development methods, eg advantages and
disadvantages of a range of on and off-the-job methods eg sitting next to Nellie,
mentoring, coaching, action learning, assignments, projects, shadowing, secondments,
training courses, conferences, seminars, e-learning and outdoor development; delivery of
the learning event
3 Role and purpose of evaluation and evaluation techniques
The what, why, when, and who of evaluation: exploration of what evaluation involves and
what can be measured, the importance of evaluating learning events and measuring the
contribution, the need for continuous evaluation at every stage in the training cycle, the key
stakeholders in the evaluation process and their roles within it
A range of evaluation techniques: eg Happy Sheets, pre/post tests, and the benefits and
limitations of these; different evaluation models and the difficulties that these pose in
practice eg Kirkpatrick, CIRO
4 Government-led initiatives
General and vocational training schemes and initiatives: context influencing government
approaches to training and development in the UK, development of NVQs, MCI and the
competency movement, national training targets and the role of the Qualifications and
Curriculum Authority (QCA), specific initiatives eg modern apprenticeship schemes,
Investors in People, New Deal, University for Industry Learndirect, Learning and Skills
Councils, Connexions

193

the ability to:
1 Explore a range of differing
learning theories and
learning styles
differentiate between different learning styles
analyse learning theories and explain their
contribution to the planning and design of learning
events
explain the implications of the learning curve and
the importance of ensuring the transfer of learning to
the workplace
2 Critically evaluate the
planning and design of
training and development
explain how training contributes to the achievement
of business objectives and the role of a training and
development policy
explain and describe a systematic approach to
training and development using a model and outline
each stage of the training cycle
critically evaluate the factors to take into account
when planning a training and development event
evaluate an organisations approach to training
3 Explore the role and purpose
of evaluation and evaluation
techniques
examine the importance of evaluation and how it can
help to market the contribution of training and
development to the business
explore the way that evaluation needs to be on-going
and systematically planned for at each stage of the
training cycle
review the key stakeholders in the evaluation
process and the roles that they play
compare and contrast a range of evaluation
techniques and the pros and cons of these
analyse the contribution of evaluation models and
the difficulties that these can pose in practice
4 Examine a range of
government-led initiatives
aimed at developing skills in
the labour market
analyse the context influencing the role of
government in training and development and the
growing emphasis on lifelong learning and
continuous development
review the development of NVQs, MCI and the
competency movement
examine a range of contemporary training initiatives
introduced by the UK government
194
Guidance

Delivery
Learners understanding of human resource development can be supported through the use of a
variety of learning methods including lectures, discussions, seminars, videos, case studies and
learner-led presentations.
Investigations of human resource development practices within organisations and talks from
training and development practitioners can both develop understanding and provide support for
the knowledge and skill base established within the unit.
Assessment
use of presentations as a means of demonstrating understanding of how to design and
deliver a learning event. Learners could use their own experience and commercial contacts
as a basis for collection and analysis of human resource development practices
case studies and the review of current journal articles to assess learners understanding of
human resource development issues eg e-learning, outdoor development and evaluation
Links
This unit has links with the other human resources units in the HN Business programme:
Unit 21: Human Resources Management, Unit 22: Managing Human Resources and Unit 24:
Employee Relations. It also has links with NVQ level 4 in Personnel.
Support materials
Textbooks
Barrington H and Reid M A Training Interventions 6th Edition (CIPD, 1999)
ISBN: 0852928041
Foot M and Hook C Introducing Human Resource Management 3rd Edition (FT: Prentice
Hall, 2002) ISBN: 0273651439
Moorby E How to Succeed in Employee Development 2nd Edition (McGraw-Hill, 1996)
ISBN: 0077091515
Redman T and Wilkinson A Contemporary Human Resource Management (FT: Prentice
Hall, 2001) ISBN: 020159613X
People Management
Personnel Review
Personnel Today
Training

195
Videos
covering human resource development topics. Television current affairs programmes can also
Websites
resources
www.dfes.gov.uk Department for Education and Skills
www.guardian.co.uk provides links to news items and report
www.iipuk.co.uk Investors in People UK
www.lsc.gov.uk the Learning and Skills Council
www.learndirect.co.uk UfI learndirect
www.newdeal.gov.uk New Deal
www.nto-nc.org the National Training Organisation National
Council
www.qca.org.uk The Qualifications and Curriculum Authority
development topics

196

197
Unit 24: Employee Relations
Learning hours: 60

Description of unit
The main aim of this unit is to provide a general introduction to employee relations and to
develop knowledge and understanding of the changes which have taken place over the years
with respect to the employment relationship in the UK. The unit considers the nature of
industrial conflict and the resolution of collective disputes. The processes of collective
bargaining and negotiation are also explored.
1 Explore the context of employee relations against a changing background
2 Examine the nature of industrial conflict and the resolution of collective disputes
3 Explore the processes of collective bargaining and negotiation
4 Investigate the concept of employee participation and involvement.

198
Content

1 Context of employee relations
The role of the trade union: types of trade union, the Trade Union Congress, employer
associations, trade union representatives
The history and development of trade unions: the rise of trade unionism, trade unions and
the law, union growth and decline, the changing political and economic context and its
relevance to industrial relations
The main actors in employee relations: workers and their organisations, managers and their
organisations, government agencies concerned with the workplace and work community
The unitarist and pluralistic frames of reference: review of the differing perspectives taken
by the stakeholders in employee relations
2 Industrial conflict and the resolution of collective disputes
The nature of industrial conflict: ideological framework, conflict and co-operation
Different types of dispute: collective disputes, strike action, strike statistics, ballots, no-
strike agreements
Resolving conflict: dispute procedures, arbitration and the role of the Advisory, Conciliation
and Arbitration Service (ACAS)
3 Collective bargaining and negotiation
The nature and scope of collective bargaining: role of shop stewards, union officials,
employer associations and management
The collective bargaining process: institutional agreements for collective bargaining, local
workplace bargaining, single-table bargaining
Negotiation processes: negotiation strategy, preparation for negotiation, conducting the
case-settlement, disclosure of information
4 Employee participation and involvement
Consultation and employee participation: different forms of employee consultation and
participation, joint consultation committees, upward-downward forms of communication
Industrial democracy and employee participation: European Works Councils (European
Objectives), the social dimensions of the European Union and supervisory boards, national
cultural differences towards democracy and employee participation
Employee involvement techniques: sharing information, consultation, financial participation,
commitment to quality, developing the individual, involvement of other stakeholders
Empowerment: devolution of responsibility/authority to line managers/employees, the role
of human resource management, approach to employee relations (link to unitarist and
pluralist perspectives)

199

the ability to:
1 Explore the context of
employee relations against a
changing background
explain the unitary and pluralistic frames of
reference
review the development of trade unions and nature
of industrial relations
determine the role of a trade union and its
contribution to effective employee relations
differentiate the roles taken by the main actors in
employee relations
2 Examine the nature of
industrial conflict and the
resolution of collective
disputes
explain the ideological framework of industrial
relations
investigate the different types of collective dispute
review dispute procedures and the resolution of
conflict
critically evaluate the effectiveness of dispute
procedures in resolving conflict in a given situation
3 Explore the processes of
collective bargaining and
negotiation
explore the nature and scope of collective bargaining
describe the processes of negotiation
prepare and apply negotiation strategy for a given
situation
4 Investigate the concept of
employee participation and
involvement
investigate the effectiveness of arrangements made
by two organisations to involve their employees in
decision-making
analyse the influence of the EU on democracy in the
UK
differentiate between industrial relations and
employee relations
evaluate the effectiveness of employee involvement
techniques
establish the impact of human resource management
on employee relations

200
Guidance

Delivery
Learners understanding of employee relations can be developed through the use of a variety of
learning methods including lectures, discussions, seminars, videos, role plays and case studies.
Investigations of employee relations policies and practices within organisations and talks from
union officials, advisory bodies and human resource management practitioners can both develop
understanding and provide support for the knowledge and skill base established within the unit.
Assessment
use of presentations as a context for conveying understanding of employee relations
use of role plays for exploring the processes of collective bargaining and negotiation
case studies to assess learners understanding of the nature of industrial conflict and the
resolution of collective action
written assignments to test knowledge and understanding.
Links
This unit forms a direct link with other human resources units in the HN Business programme:
Unit 3: Organisations and Behaviour, Unit 21: Human Resources Management, Unit 22:
Managing Human Resources and Unit 23: Human Resources Development.
Links may also be found with Unit 3: Organisations and Behaviour, Unit 6: Business Decision
Making, Unit 25: English Legal System and Unit 39: Quality Management.
This unit covers some of the underpinning knowledge and understanding of the following units
of the NVQ in Personnel at level 4.
Support materials
Textbooks
Blyton P and Turnbull P The Dynamics of Employee Relations 2nd Edition (Palgrave, 1998)
ISBN: 0333679857
Farnham D Employee Relations in Context 2nd Edition (CIPD, 2000) ISBN: 0852928769
Gennard J and J udge G C Employee Relations 3rd Edition (London, CIPD, 2002)
ISBN: 0852928181

201
British Journal of Industrial Relations
Employment Gazette
European Journal of Industrial Relations
Industrial Relations Journal
Industrial Relations Review and Report
Labour History Review
Labour Research
People Management
Personnel Review
Personnel Today
Videos
covering employee relations topics. Television current affairs programmes can also provide a
useful additional resource.
Websites
www.cac.gov.uk Central Arbitration Committee
www.cbi.org.uk Confederation of British Industry
www.ets.gov.uk Employment Tribunal Service
www.gftu.org.uk General Federation of Trade Unions
www.icftu.org International Confederation of Free Trade
Unions
202

(Income Data Services)
www.labournet.net discussion forum for various employment
issues
www.lowpay.gov.uk Low Pay Commission
www.peoplemanagement.co.uk Chartered Institute of Personnel and
Development
www.tuc.org.uk Trades Unions Congress

203

Law
204

205
Unit 25: English Legal System
Learning hours: 60

Description of unit
This unit provides an introduction to the English legal system. It develops learners knowledge
of the court structure, court procedures, funding and legal personnel. Alternative methods of
settling disputes are also covered, as are the sources of law, their development and
interpretation. It also provides an introduction to the legal formalities required for the formation
of the different business entities, their management and dissolution.
1 Investigate the civil and criminal courts, their structure, operation and alternative
methods of dispute resolution
2 Identify sources of legal advice and funding, including the roles of different legal
personnel
3 Explore the relevant importance of the different sources of law, together with rules of
interpretation
4 Investigate legal personality with emphasis on business entities.

206
Content

1 Civil and criminal courts and alternative methods of dispute resolution
Criminal courts: classification of crimes and methods of trial; magistrates court
jurisdiction, personnel, procedure; Crown Court juries, their role and structure,
jurisdiction, procedure; grounds for appeal, Court of Appeal, House of Lords, European
Court of J ustice
Civil courts: Small Claims Court and jurisdiction; County Court and High Court,
jurisdiction of both, and allocation of cases to tracks, grounds for appeal, Court of Appeal,
House of Lords, European Court of J ustice
Alternative dispute resolution: meaning conciliation, mediation and arbitration;
advantages and disadvantages, tribunals and enquiries
2 Legal advice, funding and legal personnel
Legal advice and funding: sources of legal advice, Duty Solicitor Scheme, funding,
conditional fees
Legal personnel: solicitors and barristers, roles and training, overview of the judiciary
3 Sources of law and rules of interpretation
Sources of law: judicial precedent, statute, delegated legislation meaning, how they
operate, advantages and disadvantages; Rules of Statutory Interpretation; European law
types of law
Differences between common law and equity: role of equity today
4 Business entities
Meaning and examples: sole traders, partnerships, companies
Advantages and disadvantages: of types of legal business entity
Legal requirements: for the formation of sole traders, partnerships, and companies
Provisions: relating to the running/management of businesses eg rights/duties of partners,
directors and creditors; dissolution of business entities

207

the ability to:
1 Investigate the civil and
criminal courts, their
structure, operation and
alternative methods of
dispute resolution
understand the differences between criminal and
civil law
identify the role of individual courts and assess their
effectiveness within the court structure
apply knowledge of court roles to live case/case
study material and present findings
explain the meaning of ADR and assess its
usefulness
2 Identify sources of legal
advice and funding,
including the roles of
different legal personnel
identify sources of legal advice
assess implications of changes in funding
understand and assess the role of solicitors,
barristers and judges
3 Explore the relevant
importance of the different
sources of law, together with
rules of interpretation
understand the current day importance of the sources
of law
apply knowledge of the sources of law to a case
study and present findings
assess the effectiveness of the rules of interpretation
4 Investigate legal personality
with emphasis on business
entities
evaluate the legal principles which can influence
choice of business entity
assess the difference with regard to management of
partnerships and companies

208
Guidance

Delivery
Each section will require lectures to provide an introductory factual framework. Learners should
then take part in a variety of activities eg visits, talks, research to access primary sources, case
studies, group discussions and moots.
A good starting point for delivery is outcome 1. Visits to a variety of courts generate discussion,
and enable learners to visualise the courts, their personnel, and the procedures and types of
cases dealt with. It may then be preferable to continue with outcome 3, as some of the cases
seen in the courts will generate discussion on the law involved, and explanation of Statutes,
J udicial Precedent and Delegated Legislation will follow naturally. It is important when looking
at the rules of interpretation to use live case examples to explain the different results, which can
result from the application of different rules. Outcome 2 also follows on from the court visits
and looks at where advice can be sought, how it can be funded, and what responsibilities the
different legal personnel have. Finally outcome 4 looks at the formation of businesses, and the
legal requirements involved. This outcome is free standing, but useful in cases where learners
are not opting for further law units.
Assessment
The assessment(s) should aim in a structured way to test the different unit outcomes. They will
develop and test a variety of skills and encourage use of primary and secondary legal materials.
Examples of assessment could include:
a record of a visit to a court/tribunal with an analysis of the role of that institution
a case study including a number of incidents, which require advice on the particular courts
which would deal with the incidents, the availability of advice, funding and personnel
a case study on a source of law
a report on proposed or recent legislation
an oral presentation on some aspect of the legal system
a case study on a business including choice of business entity, advantages/disadvantages,
management, dissolution.
Links
This unit forms the foundation for all the other specialist law units: Unit 26: Business Law, Unit
27: Common Law II and Unit 28: European Law. It examines the structure of the legal system,
the sources of law, funding and personnel. This is an essential introduction to the specialist law
units covering contract, tort, European law and business law.
The formation, management and dissolution of business entities section is a useful introduction
to the company unit.
The sources of law section looks types of EU law and the court structure of the ECJ which is a
useful introduction to Unit 28: European Law.

209
Resources
Learners should have access to a learning resource centre with a good range of legal text and
case books. These should be supported by journal, statutes and law reports. Good newspapers
are also necessary because of the topical nature of law.
Learners will also benefit from visits to courts, and parliament. Crown courts are usually
excellent in arranging tours, and talks by resident judges. Magistrates, solicitors and barristers
are usually willing to talk collectively to groups of learners.
Support materials
Textbooks
Darbyshire P Nutshells English Legal System (Sweet & Maxwell, March 2001)
ISBN: 0421742801
Elliot and Quinn English Legal System (Longman, April 2002) ISBN: 0582473136
Ingman T The English Legal Process (Blackstone, August 2000) ISBN: 1841740284
Martin J English Legal System (Hodder & Stoughton Educational, J une 2002)
ISBN: 0340848545
Slapper and Kelly English Legal System (Cavendish, August 2001) ISBN: 1859416578
Smith and Keenan Advanced Business Law (Prentice Hall, J anuary 2000)
ISBN: 027364601X
Stychin C Legal Method: Text and Materials (Sweet & Maxwell, April 1999)
ISBN: 0421634707
Websites
www.bbc.co.uk/law BBC
www.bized.co.uk provides case studies appropriate for
www.cjsonline.org Criminal J ustice System
www.courtservice.gov.uk The Court Service
www.cps.gov.uk The Crown Prosecution Service
www.criminal-justice-system.gov.uk Criminal J ustice System
www.dca.gov.uk Department for Constitutional Affairs
www.eurunion.org European Union in the US
www.lawcom.gov.uk The Law Commission
www.legalservices.gov.uk Legal Services Commission

210

211
Unit 26: Business Law
Learning hours: 60

Description of unit
This unit provides the learner with an introduction to the principles of business law which relate
to the legal rules affecting business organisations within the domestic and European legal
framework. In addition the unit will allow the learner to identify anti-competitive practices and
the impact these can have upon business organisations through monopolies, mergers and the use
of intellectual property rights.
The unit will also introduce the learner to key domestic consumer provisions and associated
provisions within the EU.
1 Explore the main principles affecting the legal relationship between business
organisations and their consumers
2 Investigate the legal rules applicable to consumer credit agreements and agency
3 Explore the legal rules relating to monopolies, mergers and anti-competitive practices
4 Investigate key provisions relating to intellectual property rights and intellectual
properties on the worldwide web.

212
Content

1 Legal relationship between business organisations and their consumers
Sale of goods: statutory implied terms, transfer of property and possession, sellers remedies
against the buyer, consumers remedies against the seller
Supply of services: statutory implied terms, sellers remedies, consumers remedies
Product liability: defective goods, consumer remedies against the producer of defective
goods
2 Consumer credit agreements and agency
Forms of consumer credit agreements: restricted use of credit, unrestricted use of credit,
debtor-creditor supplier agreements, debtor-creditor agreements
Other agreements: exempt agreements, small agreements, multiple agreements, linked
transactions, cancellable agreements
Consumer credit licensing: general requirements, the issue of licences, termination of
consumer credit agreements, early re-payment, right to terminate, termination statements,
enforcement of consumer credit agreements, creditors remedies, default notices
Agency: definition, types of agent, authority of agent, rights and duties of agent and
principal, agents liability to third party, termination of agency
3 Monopolies, mergers and anti-competitive practices
Monopolies and competition in the UK: Competion Act, Fair Trading Act, scale
monopolies, complex monopolies, restrictive trade practices, Director General of Fair
Trading
Competition Commission: role of the Commission, appeals tribunal
Dominant positions within the EU: treaty provisions, the abuse of a dominant position and
enforcement
Exemptions: treaty articles and definitions, individual and block exemptions
4 Intellectual property rights
Protection of inventions: registration of patents, designs, trademarks and copyright, role of
the Patent Office (UK), European Union Patent Office
Patents: patent legislation, patent rights, inventions, patents and employees
Copyright: copyright legislation, ownership of copyright, duration of copyright, using
copyright materials
Trade marks and business names: defining trademarks, applying to register a trademark,
registering business names
Infringement of intellectual property rights: unauthorised use of intellectual property, patent
hearings, copyright tribunal, passing off

213

the ability to:
1 Explore the main principles
affecting the legal
relationship between
business organisations and
their consumers
explain and apply the legal rules on implied terms
relating to the sale of goods and supply of services
analyse the statutory provisions on the transfer of
property and possession
critically evaluate the statutory provisions on
buyers and sellers remedies
apply and evaluate product liability statutory
provisions
2 Investigate the legal rules
applicable to consumer
credit agreements and
agency
differentiate between types of credit agreements
apply and evaluate rules, termination rights and
default notices in a given scenario
differentiate between the different types of agent
apply and critically evaluate the rights and duties of
an agent
3 Explore the legal rules
relating to monopolies,
mergers and anti-
competitive practices
evaluate monopolies and anti-competitive practice
legislation in the UK
describe the role of the Competition Commission
within the context of monopolies and anti-
competitive practices and the DGFT in relation to
fair trading
define dominant positions within the EU common
market
evaluate the application of EU exemptions to
potentially anti-competitive practices
4 Investigate key provisions
relating to intellectual
property rights and
intellectual properties on the
worldwide web
identify differing forms of intellectual property
apply and evaluate the principles relating to the
protection of inventions through patent rights and
their infringement in a given business scenario
apply and evaluate the principles relating to
copyright protection and their infringement in a
given business scenario
compare and contrast the protection of trade marks
and business names
214
Guidance

Delivery
Much of the material in this unit can be delivered actively through the use of case studies and
learner-centred learning both as small group and individual exercises. The use of case studies
can be used as both a means of encouraging individual and group learning in addition to
providing a vehicle for assessment.
Small group, tutor-led workshops can be used to develop the learners understanding of
individual outcomes, and their conclusions may be used to develop their knowledge base.
Alternative methods of delivery include online materials which may be centre devised using
centre-specific resources such as the posting of hand-outs, assignments and the use of other non-
centre devised electronic sources and materials.
Learners should be encouraged to undertake self-directed study and present their findings
during seminars and workshops. This may be particularly effective due to the number of
government internet sites, particularly in relation to intellectual property and competition.
Wherever possible, a link should be made between academic underpinning knowledge and its
practical application through decided cases and the application of that knowledge to given
classroom tasks which may be discussion-based, question and answer sessions or through tasks
which may be used within the context of learner assessment.
Typical class sessions will begin with an explanation of the relevant legal rules appropriate to
the outcome under study. This factual introduction may be followed by a learner-led discussion
on how the relevant legal rules were applied within decided cases. In some instances the learner
may be given a pre-prepared number of cases to read in advance of classes and then contribute
during the session in a manner appropriate to set classroom tasks. Learners may also be given
self-directed study handouts through which they present a seminar or lead a discussion on stated
outcomes.
The unit may be delivered as a stand-alone unit, although there may be opportunities for
mapping outcomes through the integration of assessed outcomes made up from other units.
Assessment
The assessment strategy should aim to encourage use of primary and secondary legal legislation
and the application of suitable common law principles to the outcomes.
Aspects of the unit may be further explored through case studies which link consumer
protection and the function of those responsible for ensuring fair trading in a manner which
highlights the effectiveness of alternative courses of action other than the consumer suing the
supplier through the civil courts.
In addition the sections on monopolies and intellectual property may be explored through
assessment vehicles; the aim being to determine how companies can potentially create a
dominant position through the use of intellectual property rights which lead to anti-competitive
practices.
The assessment of this unit can be through individual and group assignments. These may be in
the form of submitted reports, written memoranda, business letters, and presentations. The
presentations may be formal and include electronic presentations using software such as
Microsoft PowerPoint. Alternatively presentations may be in the form of a moot or discussion,
or learner-led seminar on an outcome during which the learner, either individually or in a group,
orally conveys assessment material to the group.

215
Evidence may be produced by the learner at outcome level only, although there exists
opportunities for the design of assignments that covers different outcomes. Resources such as
class materials or handouts may include case study material and which may be used in
conjunction with assessments made under time-constrained conditions.
Alternative assessment methods may include peer assessment during presentations, seminars,
multiple choice questions and in class, open book timed assessments.
Links
This unit has links with Unit 5: Common Law I, Unit 25: English Legal System, Unit 27:
Common Law II, Unit 28: European Law, Unit 45: European Business, Unit 46: Employment
Law and Unit 47: Company Law.
Resources
Learners will require access to a library which contains key texts and materials suitable to
studying business law.
Additional resources include Iolis, an interactive CD-Rom for law students available from the
University of Warwick, and Seneca, a legal information service, also on CD. (See Websites.)
Support materials
Textbooks
Brown I et al Commercial Law (Butterworth, J anuary 2000) ISBN: 0406024340
Coleman M and Grenfell M The Competition Act 1998: Law and Practice (Oxford
University, J une 1999) ISBN: 0198298471
Colston C Principles of Intellectual Property Law (Cavendish, September 1999)
ISBN: 1859414656
Cranston, Scott and Black Consumers and the Law (Law in Context) (Butterworths, August
2000) ISBN: 0406988021
Crystal, Phillips and Davis Insolvency Law Handbook (Butterworth, J une 2003)
ISBN: 0406944091
Davis J Butterworths Core Text: Intellectual Property Law (Butterworth, September 2003)
ISBN: 0406963797
J udge S Business Law (Palgrave, November 1998) ISBN: 0333747097
Ottley M Briefcase on Company Law (Cavendish, April 2002) ISBN: 1859416993
Smith and Keenan Advanced Business Law (Prentice Hall, J anuary 2000)
ISBN: 027364601X
Steiner J Textbook on EC Law 7th Edition (Blackstone, October 2000) ISBN: 1841740233
Newspapers
The Times
216
Websites
www.companies-house.gov.uk Companies House
www.competition-commission.org.uk Competition Commission
http://europa.eu.int The European Union online
www.european-patent-office.org European Patent Office
http://jurist.law.cam.ac.uk legal information for educational purposes
www.lawtel.co.uk Lawtel online legal information service
www.law.warwick.ac.uk/lcc/iolis Iolis website
www.lexis-nexis.com Lexis-Nexis online legal and business
information service
www.patent.gov.uk The UK Patent Office
www.senecaweb.co.uk Seneca website
www.timesonline.co.uk website of The Times newspaper

217
Unit 27: Common Law II
Learning hours: 60

Description of unit
The aim of this unit is to build on the knowledge of contract and tort acquired in Unit 5:
Common Law I, with a particular focus on business organisations. The learner is encouraged to
investigate key concepts and principles in relation to specific forms of tortious liability.
Additionally, the unit develops an awareness of possible defences against tortious action, and
the remedies available in relation to various forms of loss. This unit also develops the learners
knowledge of contract by looking at factors which can initiate contracts, ways contracts can be
discharged and remedies available.
1 Examine the vitiating factors that could impact on an otherwise legally binding business
agreement
2 Explore the practical situations which could lead to the discharge of a business contract
and evaluate the relative importance of the remedies available
3 Analyse specific torts other than negligence which impact on business activities
4 Examine and evaluate the possible defences against actions in tort and the remedies
available for different forms of loss.
218
Content

1 Vitiating factors
Identification of key vitiating factors: mistake, misrepresentation, duress, undue influence,
restraint of trade, illegality
2 Discharge of a business contract and remedies
Forms of discharge: agreement, frustration, performance, breach
Remedies: damages (liquidated and unliquidated), specific performance, injunctions,
restitution, rescission, remoteness, mitigation
3 Specific torts which impact on business activities
The nature and scope of particular torts: trespass to persons, land and goods; nuisance,
public and private, defamation slander, libel; business and economic torts, right to sue
and who may be sued, rule in Rylands v Fletcher, liability for fire
4 Defences against actions in tort and remedies
General defences: volenti non fit injuria, statutory authority, necessity, Act of God, special
defences against specific torts, contributory negligence
Remedies: compensatory and non-compensatory
The calculation of damages and different forms of loss
Damages: calculation of, and different forms of loss

219

the ability to:
1 Examine the vitiating factors
that could impact on an
otherwise legally binding
business agreement
explain the legal concepts of misrepresentation and
mistake
discuss the legal concepts of duress (including
economic duress) and undue influence
2 Explore the practical
situations which could lead to
the discharge of a business
contract and evaluate the
relative importance of the
remedies available
examine the legal consequences of discharge
examine the various remedies, evaluating their
appropriateness in given situations
3 Analyse specific torts other
than negligence which
impact on business activities
explain and apply nuisance, trespass, defamation and
the specific business economic torts
evaluate the scope of these torts in terms of right to
sue and who may be sued
apply the rule in Rylands v Fletcher
evaluate liability for fire
4 Examine and evaluate the
possible defences against
actions in tort and the
remedies available for
different forms of loss
distinguish and evaluate general defences from other
defences relevant to specific torts
identify the particular types and classifications of
remedies
understand the basis of the calculation of potential
damages in particular situations
evaluate the effectiveness of particular remedies
when applied to different forms of loss

220
Guidance

Delivery
This unit can be delivered in a variety of ways. Group work and other active methods of
learning can be employed to enhance learners experience and promote the required
understanding. The use of case studies and specimen documentation is to be particularly
encouraged, both as a means of assessment and as part of the normal learning process.
Assessment
Evidence of outcomes may be in the form of:
case studies to assess differing approaches to tortious liability
group work to examine critically particular elements of negligence
group role play to simulate situations where various forms of tortious liability apply
time-constrained assessment analysing practical issues facing a client, including defences
and remedies in tortious actions.
Links
It is desirable to have completed Unit 5: Common Law I and Unit 25: English Legal System
prior to commencing this unit, as they lay down the foundations for contract and tort and the
English legal systems and procedures.
This unit provides for the development of a solid understanding of the law of tort and contract.
Resources
Learners need access to a library with the key texts and to case studies. The use of texts should
be supported by reference to broadsheet newspapers, relevant journals and technology-based
databases.
Support materials
Textbooks
Atiyah P S Introduction to the Law of Contract (Clarendon Press, 1995)
ISBN: 0198259530
Beale, Bishop and Furmston Contract Cases and Materials (Butterworth, 2001)
ISBN: 040692404X
Cheshire, Fifoot and Furmston Law of Contract (Butterworth, 2001) ISBN: 0406930589
Cooke J Law of Tort (Prentice Hall, 1997) ISBN: 0273627104
Elliott and Quinn Contract Law (Longman, 2002) ISBN: 0582473306
Elliot and Quinn Tort Law (Longman, 1997) ISBN: 058243811X

221
Harvey and Marston Cases and Commentary on TORT (Prentice Hall, 2000)
ISBN: 0582423511 NB: Will be republished 2004 (5th Edition ISBN: 0406971382)
Hodgson J and Lewthwaite J Law of Torts (Blackstone, 2001) ISBN: 1841742759
Michael J Textbook on Torts (Oxford University, 2002) ISBN: 0199255334
Pannett A Law of Torts (Prentice Hall, March 1997) ISBN: 0712110704
Treitel G Law of Contract (Sweet & Maxwell, 2003) ISBN: 042178850X
Young M Cases and Commentary in Contract Law (Prentice Hall, 1997)
ISBN: 0273625705
Journals
Law Society Gazette
New Law Journal
222

223
Unit 28: European Law
Learning hours: 60

Description of unit
This unit provides the learner with an introduction to the principles of European law which
relate to the integration of those legal rules within the domestic legal framework and the impact
of European Union legal rules upon the individual and business organisations.
It will also provide an introduction to EU-wide legal rules which impact upon persons seeking
work in other member states and how business organisations are able to promote and set up
branches of the business in other member states.
In addition the unit will allow the learner to identify anti-competitive practices and how these
can impact upon business organisations and the individual.
1 Explore the EU institutions
2 Investigate the sources of EU law and issues of sovereignty
3 Investigate the European legal principles concerned with the free movement of workers
4 Explore key European provisions relating to the free movement of goods, services and
establishment.

224
Content

1 EU institutions
Community institutions: Council, Commission, Parliament, European Court of J ustice
Constitutional principles: European citizenship, federalism and subsidiarity
2 The sources of EU law and issues of sovereignty
Sources of European law: treaty provisions, regulations, directives, decisions
General principles of European law: direct and indirect effect of EU legal rules
Sovereignty issues: supremacy of EU law over domestic legislation
3 Free movement of workers
Sources: relevant treaty articles, regulations and directives
Community citizenship: political and social rights
Defining workers: treaty articles, regulations and directives
Equal treatment of European nationals: right of entry, right of residence, and right to
remain
Derogations from free movement of workers: the grounds of public policy, public security,
public health
4 Free movement of goods, services and establishment
Free movement of goods: cases, treaty articles, regulations and directives, discriminatory
taxation and quantitative restrictions
Free movement of services: cases, treaty articles, regulations and directives
Free movement of establishment: recognition of qualifications, right to establish and
residence rights of non-workers

225

the ability to:
1 Explore the EU institutions explain the constitution of the different EU
institutions
distinguish the function of community institutions in
relation to the formulation of legal rules
evaluate the role of the different EU institutions
2 Investigate the sources of EU
law and issues of
sovereignty
describe and evaluate the sources of European law
examine the principles of European Union law and
analyse the solution to issues of sovereignty
apply and evaluate relevant principles relating to the
implementation and integration of European law
3 Investigate the European legal
principles concerned with the
free movement of workers
explain the concept of the worker
analyse provisions relating to equal treatment for
European nationals
apply and evaluate relevant worker rights
apply and evaluate derogations to workers rights
4 Explore key European
provisions relating to the free
movement of goods, services
and establishment
distinguish goods and services
explain discriminatory practices which member
states may use to curtail free movement of goods
evaluate the freedom to receive services
distinguish non-workers from workers and apply
and evaluate the residence rights of non-workers

226
Guidance

Delivery
mapping outcomes through the integration of assessed outcomes made up from other units
which are being studied alongside Unit 28: European Law, for example, Unit 25: English Legal
System, Unit 26: Business Law, Unit 43: Employment Law and other general business units as
appropriate.
It is anticipated that much of the material in this unit can be delivered actively through the use
of case studies and learner-centred learning both as small group and individual exercises.
Wherever possible, a link should be made between the underpinning academic knowledge and
its practical application through given cases and judgements.
Typical class sessions will begin with an explanation of the relevant legal rules from both
statutory sources and leading cases appropriate to the outcome under study. This factual
introduction may be followed by a learner-led discussion on how the relevant legal rules were
applied within decided cases. In some instances the learner may be given a pre-prepared number
of cases to read in advance of classes and then contribute during the session in a manner
appropriate to set classroom tasks. The learner may also be given self-directed study handouts
through which they present a seminar or lead a discussion on stated outcomes.
The use of case studies can be used as both a means of encouraging learning and also to provide
a vehicle for assessment.
Small group, tutor-devised workshops can be used to direct learners and to develop the learners
understanding of individual outcomes. Their conclusions may be used to develop their
knowledge base.
In addition the learner should be encouraged to undertake self-directed study and present their
findings during seminars and workshops which may be used as an assessment vehicle. This may
be particularly effective due to the number of government internet sites, both domestic and
European, which provide free access to relevant information to broadening the learners
development and understanding of the unit in a broader context.
centre-specific resources such as hand-outs and assignments and the use of other non-centre
devised electronic sources and materials.
Assessment
The assessment strategy should aim to encourage use of primary and secondary European
legislation and relevant domestic provisions in addition to the application of relevant decided
cases, again both European and domestic, to the outcomes.
The assessment of this unit can be through individual and group assignments. These may be in
the form of submitted reports, written memoranda, business letters, and presentations. The
presentations may be formal and include electronic presentations using software such as
Microsoft PowerPoint. Alternatively presentations may be in the form of a moot or discussion,
or learner-led seminar on an outcome during which the learner, either individually or in a group,
orally conveys assessment material to the group.

227
Evidence may be produced by the learner at outcome level only, although there exists
opportunities for the design of assignments that covers different outcomes from, for example,
Unit 25: English Legal System, Unit 26: Business Law, Unit 43: Employment Law and other
general business units as appropriate. Class materials, eg handouts, could include case study
material and which may be used in conjunction with assessments made under time-constrained
conditions.
Alternative assessment methods may include peer assessment during presentations, seminars
etc, multiple-choice questions and in class, open-book, timed assessments.
Outcomes may be combined to further the learners understanding of European legal rules,
again case studies again these may be used for assessment or self-directed study purposes.
The sections which look at sovereignty may be combined with free movement of goods and
how domestic legislation was formulated.
Links
This unit has links with Unit 5: Common Law I, Unit 26: Business Law, Unit 29: Introduction
to Internet and E-Business, Unit 30: Internet Marketing, Unit 31: E-Business Operations,
Unit 32: E-Business Planning and Implementation, Unit 45: European Business and Unit 46:
Employment Law.
Resources
studying the law of the European Union.
University of Warwick, and Seneca, a legal information service also on CD. (See Websites.)
Support materials
Textbooks
Cairns W Introduction to European Union Law (Cavendish, 1997) ISBN: 185941205X
Craig P and de Burca G EU Law (Oxford University Press, 2002) ISBN: 0199249431
Ewing and Bradley Constitutional and Administrative Law (Longman, 2002)
ISBN: 0582438071
Foster N (editor) Blackstones EC Legislation (Oxford University, 2002)
ISBN: 0199254869
Kaczorowska A EU Law Today (Old Bailey Press, 1998) ISBN: 1858362717
Kent P The Law of the European Union (Longman, 2001) ISBN: 0582423678
McLean R M (editor) European Community Law Casebook (HLT Publications, 1991)
ISBN: 1853529184
Owen R Essential European Community Law (Cavendish, 1994) ISBN: 1859411207
Steiner J Textbook on EC Law 5th Edition (Blackstone, 1996) ISBN: 1854315536
Tillotson J European Community Law: Text, Cases and Materials (Cavendish, 1996)
ISBN: 1859412823
Newspapers
The Times
228
Videos
An Introduction to European Community Law
Supremacy of EC Law
Websites
http://curia.eu.int/en/index.htm The European Union online
http://europa.eu.int The Court of J ustice of the European
Communities
http://jurist.law.cam.ac.uk legal information for educational purposes
www.lawtel.co.uk Lawtel legal information service
www.lexis-nexis.com Lexis Nexis provides legal information

229

E-Business
Strategies
230

231
Unit 29: Introduction to the Internet and
E-Business
Learning hours: 60

Description of unit
This unit introduces the learner to the scope of e-business and the benefits it offers to an
organisation through the different business models. It also provides sufficient understanding of
internet technology for learners to appreciate the potential, and the limitations, of using the
internet for business. The features of good website design (ease of navigation, speed) are also
covered.
1 Explain the scope of e-business
2 Describe how the internet works
3 Differentiate between e-business models
4 Investigate features of good website design.

232
Content

1 Scope of e-business
Definitions: the internet, the worldwide web (www) intranets, extranets, e-business and
e-commerce and the distinction between business-to-consumer (B2C) and business-to-
business (B2B) transactions
Benefits to businesses: why a company should have a web presence, how the use of internet
technology can reduce transaction costs
Trust for e-business: the risks of conducting business through the internet, the importance of
trust for e-business transactions
Security and data protection: how security and data protection play an important part in
e-business
Nature of communication: difference between mass communication (one-to-many), personal
communication (one-to-one) and internet communication (many-to-one and many-to-many)
2 How the internet works
Internet technology: the importance of agreed non-proprietary standards, how messages are
transferred across the global communications network using packet switching, TCP/IP,
FTP, HTTP, POP, IMAP and the use of URLs, bandwidth as a measure of capacity; why
this is an important consideration
Introduction to HTML: the main features of HTML as the language of the www, defines
format of the information and how it is presented, but not its content as in EDI; (Elements
(<Tags>)) head, body, title, break, headings, forms, paragraphs, lists, tables, links and
images); highlight the number of software packages available to users who can now build
pages without learning HTML brief overview of XML
Clients, servers and browsers: the functions of servers and clients and use of two-tier and
three-tier architectures, the role of the browser to interpret the HTML and present the data
to fit the users computer screen, the way information is presented varies according to users
screen size and set-up
Intranets and extranets: the differences between the use of the internet, an intranet and an
extranet, explain how they can improve security
3 E-business models
The five business models: the different ways in which the internet may be used to generate
revenue by supporting the sale of a product, or service eg CDs, flights; supplying electronic
information, or media services eg reports or music; charging per transaction for the
provision of a service eg airline booking; charging a subscription for an information service
eg news; advertising revenue, from an attractive website

233
4 Website design
Search engines: to find specific information on the internet (the logic of structuring search
questions using venn diagrams) and identify the elements of a web page that may be used
by search engines (head title, description, keywords; body content and links)
Attractive web pages: the design features that make a web page attractive to the visitor ie
speed, attractive page layout, colour scheme, pictures and links, clear and informative,
consistent with image of the business (brand), builds trust, encourages visitor to return
Website usability: what makes a website easy for the visitor to use (meets needs of different
stakeholders, good website navigation, availability in different languages to suit the visitor);
what legal requirements must be met (disabled user eg visually impaired and colour
blind)

234

the ability to:
1 Explain the scope of e-
business
differentiate between business-to-consumer (b2c)
and business-to-business (b2b) transactions
explain how a business benefits from having its own
website
analyse the nature of e-business communication
2 Describe how the internet
works
explain how messages are transferred across the
internet
describe the main features of HTML, the language
of the web
differentiate between the internet, intranets and
extranets
3 Differentiate between e-
business models
describe how the internet can be used for selling a
product, or service
differentiate between other business models for
generating revenue from the internet
identify other uses of the internet, which may not
generate revenue
4 Investigate features of good
website design
identify those elements of a web page that may be
used by search engines
explain the design features that make a web page
attractive to the visitor
describe what makes a website easy for the visitor to
use
explain the legal requirements of site design

235
Guidance

Delivery
This unit should to be taught with learners exploring websites and, therefore, seeing the
application of theories in practice. They could work individually or in pairs around an internet
access point, usually a personal computer
The preferred pattern for a teaching session would be for instruction to be given on a topic, or
concept, then for learners to review its application for selected websites, followed by discussion
of their findings to consolidate learning.
Learners would also be expected to explore the use of these techniques by independent research
of texts and websites.
The opportunity to design a simple web page using a web page editor may also be provided to
learners, to encourage creativity and stimulate an appreciation of web page design.
Assessment
Assignments that require learners to demonstrate their understanding of theories and concepts
by reviewing e-business websites are recommended. These are most suitable for coursework
assignments where learners have more scope to develop their ideas, but can also be used for
examination questions.
Knowledge of internet terminology can best be assessed in short-answer tests, or examinations.
An appreciation of website design can be developed and assessed by learners designing their
own web page, where the resources, including web-page editor software, are available.
Exercises in the use of search engines should also be encouraged.
Links
This unit links with Unit 30: Internet Marketing, Unit 31: E-Business Operations and Unit 32:
E-Business Planning and Implementation. Aspects of this unit link also with the following
units: Unit 1: Marketing, Unit 3: Organisations and Behaviour and Unit 7: Business Strategy.
Resources
Texts should be supported by the use of websites and case studies. For those part-time learners
working in business, their experience of work should be made use of in comparing approaches
adopted.
Websites can be useful in providing information and case studies (eg www.bized.ac.uk which
provides business case studies appropriate for educational purposes).
236
Support materials
Newspapers
The Guardian Online supplement (available with the Thursday edition of The Guardian
newspaper)
The Sunday Times the Doors supplement
Websites
www.dataprotection.gov.uk The Information Commissioners Office,
responsible for enforcing the Data Protection Act
1998 and Freedom of Information Act 2000
www.e-envoy.gov.uk Office of the e-Envoy, government website
www.guardian.co.uk/online website of The Guardian newspaper
www.w3c.org worldwide web consortium
www.zdnet.co.uk ZDNet UK provides information and services for
software and e-business sector

237
Unit 30: Internet Marketing
Learning hours: 60

Description of unit
Learners will develop their knowledge of the marketing concepts seen in Unit 1: Marketing and
how they are applied through the e-business models, which were introduced in Unit 29:
Introduction to the Internet and E-Business. This unit will also address the importance of
marketing research, how internal business systems support internet marketing and use of the
internet for market research.
1 Describe how the internet can be used for promotion
2 Explain order processing through the internet
3 Explore customer relationships management through the internet
4 Examine the use of the internet for marketing research.
238
Content

1 Promotion
Promoting the organisation (public relations): recognising the information needs of the
different stakeholders eg investors, customers, suppliers; business ownership or sponsor,
mission statement and values, financial information, contact address, products or services
and after-sales services; meeting these different needs with an attractive, accessible website,
consistent with the corporate image and brands, increased use of sponsorship of sporting
activities by large businesses to attract visitors to their websites, by providing news of
sports events and sporting personalities
Promoting products and services: the first stage of internet marketing, where no
transactions take place through the internet, objective to stimulate demand for the
products or services and direct the visitor to dealers, outlets, or service providers in the
locality including collecting personal details about the visitor and the nature of their
enquiry; retaining this for marketing purposes or passed on to the local dealer, or service
provider, no direct interface with the internal business information systems at this stage;
inadequacies in terms of data accuracy or security precautions are not exposed to the
customer
Advertising and affiliation: use of website to promote another organisations products, or
services, eg through banner advertising; articles, referring to products and providing links to
website; commission paid for business generated from these links; growing number of
websites resulting in a limited amount of revenue which can be generated from advertising
and affiliation they can only be considered a source of additional income
Limitations from customers' perspective: the internet as a source of information, eg of
entertainment, for searching for products, or services; use of search engines or links to pull
information, careful use by organisations to push information to the website visitor,
necessity to discourage use of unsolicited email to push products, or services, (spamming),
necessity for promotion to generate a positive attitude with visitors, trust, visitors expect
reliable, accurate and up-to-date information, reassurance about how the information will be
used before giving personal details
Comparison of internet and traditional marketing: 4Ps; traditional and E
2 Order processing
Order processing: steps choosing supplier, selecting product, placing order,
acknowledgement of order, supplier lead-time, delivery, receipt of goods, quality check,
receipt of invoice, payment, often through credit, or debit card, how order processing
through the internet differs from normal consumer purchases or mail order
Entering orders through web-forms: customer information and details of products entered
into web-form, transferral of data through a one-way link to the internal business system,
processing of the order through conventional systems; confirmation to customers that order
has been accepted, often provided by email; necessity for quick and reliable
acknowledgement, followed by quick delivery response; limited security risk to business
systems, but customer risks making payment before receipt of goods

239
Interactive order processing: customer processes order interacting with internal business
systems database, using three-tier architecture (client-server-database), allows customer to
check stock availability, place order directly, receive online confirmation and delivery
information; customer can then track the progress of his/her order, through to delivery, and
authorisation of payment; necessity for high standards of data integrity in the database ie
internal procedures ensuring accurate and timely updating of the database as the order
progresses through each stage; importance of systems security with direct access available
through the internet
Security and trust: the value of orders, delay between ordering and delivery (lead time) and
payment authorised in advance, requiring a high level of consumer trust; customers need
for reassurance that their personal information and credit or debit card details will not be
disclosed or fraudulently used; such guarantees often displayed when customers are asked
to submit the information (Data Protection Act, see later); importance of giving sellers
contact information and address
3 Customer relationships management
Value of repeat business: costs much more to win a new customer than dealing with an
existing customer; customers who have experienced a successful business transaction more
likely to place additional business with higher value orders
Building a loyal customer base: repeat visitors are more likely to become repeat customers;
building trust for the products and services and for conducting business over the internet;
with customer details on file, and a history of past purchases, easier to target the customer
with new products, or services
Web communities and portals: building a sense of community, customer identifies with the
brand, satisfied customers influence others to become customers; inviting customers to
comment on products by voting, or by writing a review for the website, ties them in to the
organisation and makes them feel part of it; portals aim to satisfy the needs of their market
segment through offering a range of products and services, from a variety of websites
thereby encouraging visitors to access the internet through their portal, or gateway, website
Rights to privacy and the Data Protection Act: more concern in Europe about rights to
privacy, than in USA reflected in restrictions on the press and in the UK Data Protection
Act, the restrictions placed on the use of customer information and the requirement to
register with the Data Protection Registrar if an organisation wishes to retain information
about consumers
4 Marketing research
The importance of marketing research: researching customer needs and the effectiveness of
marketing strategies (marketing research); determining what products, or services, should be
developed and offered in the marketplace, and how they should be promoted and sold;
importance of determining the suitability of products and services for promotion and sale
Information about existing customers and their needs: use of information about customers,
particularly a history of their purchases through the internet as a source for marketing
research; use of their preferences for other products and services to target these markets; NB
they only represent the segment of the market that has already purchased from the
organisation
240
Information about potential new customers and their needs: why they are not already our
customers; those who already make purchases through the internet and can be approached
through affiliate marketing, or web portals; need for a different style of promotion to build
up customer trust through attractive informational websites; those that use the internet, but
have not yet made purchases through it, may need a different style of promotion to build up
their trust eg through attractive informational websites; approaches designed to capture new
users of the internet (novice internet users); importance of addressing the market not only
for experienced internet users, but also for the continual stream of novice internet users
International markets: access to international markets; English is the international language
for business users, consumers use their native language; differences in culture and
currencies, eg within the EU payments are made in Euros, and in the USA in US Dollars,
but most credit cards can be used for established currencies with currency conversion;
increased risks in international business

241

the ability to:
1 Describe how the internet can
be used for promotion
describe how the internet can be used to promote the
organisation
explain the promotion of products and services
explore advertising and affiliation business models
examine the customers perspective of promotion
compare and contrast the differences between
internet and traditional marketing
2 Explain order processing
describe order processing, from entering the order to
delivery and payment
explain the how web-forms can be used for entering
orders
examine interactive order processing, which allows
the customer to track order progress through to
delivery
explore customers concerns about security, how
these can be met and how their trust to complete
transactions over the internet can be developed
3 Explore customer
relationships management
evaluate the advantages of obtaining repeat business
from existing customers, as against winning new
customers
examine the development of a loyal customer base
explain the attraction of web communities and how
web-portals attempt to meet this need
explore consumers rights to privacy and the Data
Protection Act
4 Examine the use of the
internet for marketing
research
differentiate between marketing research and market
research
describe how information about existing customers
and their needs can be captured through the internet
explore use of the internet for market research about
potential new customers and their needs
examine the issues relating to international markets
242
Guidance

Delivery
This unit needs to be taught with learners exploring website application of the theories, either
working individually, or in pairs, around an internet access point (usually a personal computer).
The preferred pattern for a teaching session would be for instruction to be given on some topic,
or concept, then for learners to review its application for selected websites, followed by some
discussion of their findings to consolidate learning.
Assessment
Learners are required to demonstrate their knowledge of marketing concepts and how they are
applied through the internet. They should also have developed their understanding of the e-
business models, which were introduced in Unit 29: Introduction to the Internet and E-
Business.
They should recognise the importance of good internal business systems, in supporting the
development of order processing and customer relationship management through the internet.
The limitations of using the internet for market research and the importance of marketing
research to the effective use of the internet for marketing, should also be appreciated.
examination questions. These also provide an opportunity for learners to develop their report
writing and examination essay techniques.
Links
This unit links with Unit 1: Marketing and follows on from Unit 29: Introduction to the Internet
and E-Business. Aspects of this unit link with the following units: Unit 3: Organisations and
Behaviour, Unit 7: Business Strategy, Unit 17: Marketing Intelligence and Unit 18: Advertising
and Promotion. There are also links with Unit 31: E-Business Operations and Unit 32: E-
Business Planning and Implementation.
Resources
Texts should be supported by website examples and case studies. For those part-time learners
adopted.
Websites can also be useful in providing information. Many useful websites and examples are
also given in the textbooks.

243
Support materials
Textbooks
Chaffey D et al Internet Marketing (FT Prentice Hall, 2000) ISBN: 0273658832
Lauden K C and Traver C G E-Commerce: Business, Technology, Society (Addison Wesley,
2001) ISBN: 032112202X
Schneider G P Electronic Commerce (Thomson Learning, 2002) ISBN: 0619063114
Other useful texts
Amor D The E-Business (R)Evolution (Prentice Hall, 2002) ISBN: 013085123X
Chaffey D E-Business and E-Commerce Management (Prentice Hall, 2002)
ISBN: 0273548832
Chaston I E-Marketing Strategy (McGraw Hill, 2001) ISBN: 007709753X
OConnor J and Galvin E Marketing in the Digital Age 2nd Edition (Prentice Hall, 2001)
ISBN: 0273641956
Salter B and Langford-Wood N A Simple Guide to E-Commerce (Prentice Hall, 2001)
ISBN: 0130286494
Sleight S Moving to E-Business (Dorling Kindersley, 2001) ISBN: 0751312150
Turban E et al Electronic Commerce (Prentice Hall, 2002) ISBN: 0130653012
Newspapers
Useful articles regularly appear in the business pages of quality newspapers and in the online
supplements of the quality press eg The Guardian Online supplement available with the
Thursday edition of The Guardian newspaper.
Websites
There are plenty of good commercial websites.
www.amazon.com website selling books, DVDs, electronics, software,
toys and clothes
www.booksites.net website of Pearson Education
www.course.com Thomson course technology, publisher of
educational texts on technology
www.LearnE-Commerce.net provides latest research and information on
e-commerce for educational purposes

244

245
Unit 31: E-Business Operations
Learning hours: 60

Description of unit
The development of the internet for purchasing, supply chain management and other business
applications are examined in this unit. It is first necessary to identify the essential differences
between business and consumer purchasing (b2b and b2c). Experience with Electronic Data
Interchange (EDI) established the ground rules for e-business over the internet, which has led to
the development of electronic marketplaces and industry networks. Electronic payment systems
and use of the internet for recruitment, employee communication, logistics and international
trade are also covered.
1 Differentiate between business and consumer purchase transactions (b2b v b2c)
2 Analyse experiences with EDI for b2b e-business
3 Examine b2b purchasing and supply chain management
4 Explore other e-business applications.

246
Content

1 Business and consumer purchase transactions
Extended purchasing process: requisition from person who needs the items, review
quotations from alternative suppliers, negotiate contract, place purchase order, allow lead-
time for supply (often longer for non-standard items), delivery, goods receiving, check
quality, receive invoice, buyer approves payment, payment authorised by accounts, often by
credit transfer through banking system
Professional buyers: making legal contracts on behalf of an organisation, contracts between
buyers and suppliers organisations; high proportion of business costs, each year individual
buyer spends many thousands of pounds, (often millions) of the organisations money;
negotiation of contract includes: products and services, quantities, delivery dates, prices and
payment terms
Different purchases: wide range of items, often divided into A, B and C classes (using
Pareto analysis, or the 80-20 rule); different types of purchase-MRO items (maintenance,
repair and operating supplies); strategic materials (often these items are specially made and
single sourced) and capital equipment purchases
Risks: implications of business transactions often of high value/with long lead-times and
deferred payment terms; risk to buyer that items may not be delivered on time, or may not
meet specification; risk to supplier that the buyer may not pay on time
2 Experiences with EDI for b2b
Electronic transactions: comparing paper-based transactions by use of a diagram with
electronic transactions for the complete purchasing process, emphasising how reducing
paperwork simplifies the process and reduces delays caused by the transfer of information;
need to keep records (transaction logs) in case there are problems later eg contract disputes
Electronic Data Interchange, EDI: developed in 1970s by large companies (eg automotive
companies) to use computers more effectively for communicating with their suppliers; EDI
uses dedicated lines or networks, to transfer data in pre-defined formats; at first, each major
company had own system, but during 1980s attempts were made to standardise the
transaction sets used eg EDIFACT
Value Added Networks, VANs: possible with standard EDI transaction sets, it became
possible for different organisations to use the similar systems; opening the way for specialist
network organisations to offer this service through Value Added Networks (VANs); instead
of each buying organisation having a separate communication link with each of its
suppliers, both buyers and sellers simply connect to the same EDI network; concerns about
costs (VANs charge for their services) and the availability of transaction logs with a 3rd
party involved

247
Advantages of using the internet for b2b: a standard communication network across the
world which can be used for b2b between buyers and sellers, avoiding the costs charges by
VANs the EDI transaction sets formed the basis of internet transactions between companies;
concerns about security, the availability of transaction logs and 3rd party verification of
communications, again providing opportunities for providers of specialist electronic
marketplaces (see later); the advantages of using the internet for b2b are lower costs,
making it accessible to organisations, large and small, throughout the world, so enabling a
more competitive global marketplace. Other developments include the use of XML for b2b
and organisations extending extranets to their suppliers
3 b2b purchasing and supply chain management
Web auctions: models developed for use over internet English auction bids up from a
low price, Dutch auction moves down from a high price until a bid is made eg Aalsmeer
flower market in Holland; use by buyers for emergency supplies, by suppliers to dispose
of surplus goods; to develop dynamic pricing over the internet where unused resources are
otherwise wasted, eg low-cost airlines
Electronic marketplaces and industry networks: electronic marketplaces provide cost
effective means of purchasing wide range of MRO items needed by organisations; supply
chain need for organisation to develop close relationship with first tier suppliers who in
turn are dependent on own second tier suppliers especially for strategically important
materials; industry networks have been developed by major manufacturing or retail
organisations to help them coordinate the different businesses in their supply chains; co-
operation between businesses using the network extends across marketing, product
development, forecasting and planning, production, transportation and logistics
Trust and security in relation to supply chain management for business transactions
the value of orders, delay between ordering and delivery (lead time) and deferred payment,
necessitating high levels of trust between buying and selling organisations, especially when
the items are strategically important to the buyer (often these items are specially made and
single sourced); their business relationship depends upon secure systems to process their
transactions
Evaluate the benefits: using industry networks on the internet allows; benefits that can be
passed on to the final customer ie faster introduction of new products, more responsive
supply chains and lower costs; the major manufacturers and retail chains compete not as
individual organisations, but as organisations together with their supply chains hence the
importance of supply chain management; the internet is making a major contribution to the
integration of supply chains; the continued growth of this aspect of b2b e-business will
make it by far the most significant application in excess of ten times the value of b2c
e-business
248
4 Other e-business applications
Electronic payment systems: payment for products or services provided; use of electronic
funds transfer using private networks for reliability and security by banks; increased risk of
payment through internet as public network; most consumer payments over internet made
by credit or debit card consumer gives card number and authorises by seller to make the
charge, payment is then made by issuing bank through banking system; credit cards
allow consumer to defer payment but issuing bank assumes risk of fraudulent transactions;
debit cards funds must be available in account before payments made; in UK there is
protection against fraud unavailable in USA; USA other intermediaries first take
payment from consumer before making payment, may cause delay between two
transactions; charges for processing credit or debit cards uneconomic for small value
transactions (micro payments) so cash usually used for these purposes; e-cash attempt to
meet need for internet transactions, consumers deposit cash into electronic wallet from
which funds are deducted; costs of processing payments, lower than paper-based and
e-cash, but not free services
Recruitment and employee communication: any market, where buyers need to meet
sellers has the potential to exploit the internet: the employment market is no exception;
how an organisation can promote itself to potential employees, advertise vacancies on the
internet and process online application forms; services offered by recruitment-agencies:
career planning, job searches, preparing CVs, newsgroups, head-hunting; use of intranet and
extranet, by organisations, for communication with employees: internal vacancies, policies,
procedures, newsletters, staff development and knowledge management and transfer
Logistics services and international trade: the role of logistics services (transport, storage,
warehousing and distribution) and how the internet can be used to communicate information
(availability, delivery, invoices) and the flow of demand information to back up the supply
chain; the additional information needed to support international trade, both within and
outside the EU, and use of the internet forwarding, customs, transport and shipping,
bills-of-lading or airway-bills and payment
Industry networks and portals: the concept of web-communities and development of
industry networks, either through extranets or portals for research reports, new product
developments, knowledge dissemination, industry trends, trading marketplaces, supply
chain integration, vertical portals or vortals

249

the ability to:
1 Differentiate between
business and consumer
purchase transactions (b2b v
b2c)
describe the extended purchasing process used in
business
examine how use of professional buyers affects the
buying process
differentiate between different types of purchase
explore the distinctive features of business purchase
transactions
2 Analyse experiences with
EDI for b2b e-business
explain how electronic transactions can reduce
paperwork and delay
examine how EDI has laid the foundations for b2b
e-business
describe the use of VANs (Value Added Networks)
for EDI
evaluate the advantages of using of the internet for
b2b
3 Examine b2b purchasing
and supply chain
management
differentiate between the different types of web-
auction
describe the use of electronic marketplaces and
industry networks for supply chain management
explain how the issues of trust and security apply to
supply chain management
evaluate use of the internet to improve efficiency of
the supply chain and add value for the final
customer
4 Explore other e-business
applications
describe electronic funds transfer and electronic
payment systems
explain how the internet can be used for recruitment
and for communication with employees
examine the support of logistics services and
international trade through use of the internet
explore the development of industry networks and
portals

250
Guidance

Delivery
working individually or in pairs, around an internet access point (usually a personal computer).
Assessment
Learners are required to demonstrate their knowledge of purchasing and supply chain
management concepts and how they are applied through the internet. They should also have
developed their understanding of e-business, which was introduced in Unit 29: Introduction to
the Internet and E-Business.
Learners should recognise the distinctions in purchase transactions between those of business
(b2b) and those of consumers (b2c), so this unit builds on Unit 30: Internet Marketing.
They should be able to demonstrate how concepts developed through EDI have formed the basis
for using the internet for purchasing and supply chain management. The difficulties of using the
internet to develop trust, as the foundation of good supplier relationships, should also be
appreciated. An understanding of electronic payment systems is also expected.
The potential of other e-business applications in the areas of recruitment, employee
communication, logistics services and international trade, should also be recognised.
examination questions. These also provide an opportunity for learners to develop their report
writing and examination essay techniques.
Links
This unit follows on from Unit 29: Introduction to the Internet and E-Business and Unit 30:
Internet Marketing. Aspects of this unit also link with the following units: Unit 3:
Organisations and Behaviour, Unit 33: Information Systems and Unit 37: Purchasing.
Resources
Texts should be supported by website examples and case studies. For those part-time learners
adopted.
Support materials
Websites
Websites can also be useful in providing information. Many useful websites and examples are
also given in the textbooks.

251
Unit 32: E-Business Planning and
Implementation
Learning hours: 60

Description of unit
This unit builds upon Unit 29: Introduction to the Internet and E-Business, Unit 30: Internet
Marketing and Unit 31: E-Business Operations, to consider e-business planning and
implementation. It starts by considering customers expectations of e-business, because these
dictate implementation priorities. It is first necessary to assess the status of the business
information and logistics systems, because they will provide the foundation for e-business.
Preparations will be necessary to meet the standards of support that e-customers expect.
Marketing, promotion and supply chain management must be considered, alongside the web-
site, when developing the implementation strategy. Protecting the intellectual property of the
business and maintaining the integrity of its website require considerations of risk and
appropriate security precautions. Finally, future developments in e-business are examined to
help maintain a competitive edge.
1 Analyse the impact on the business
2 Plan implementation strategy
3 Explain measures for protection of the business
4 Examine future developments in e-business.
252
Content

1 Impact on the business
Planning and implementation: bricks and mortar companies may have to adapt existing
systems to facilitate additional channel; pure play company may have fewer systems to
adapt
Customer expectations: the internet raising the expectations of customers for quick and
efficient service; recognising the importance of accurate information, timely responses to
customer communications and quick delivery of the product or service
Integrity of data: need to assess the integrity of data in existing business system database
and measure the accuracy and currency of database information; total reliance of customers
on this information, as they do not have access to the informal information contacts which
are available within the organisation
Logistics processes: how quickly customer demands can be serviced; the service and quality
of existing logistics processes needs to be examined in order to meet customers
expectations for quick and efficient delivery of products and services
Customer support: customers expect timely responses to their enquiries; need to plan
resources to provide this level of customer response; keeping the website up-to-date,
particularly if news, or newsletters, form part of the strategy
Competitor analysis
Financial and risk evaluation
2 Implementation strategy
Planning the website: designing the website requires a level of expertise, which may justify
using a design service; maintaining 24/7 access to your website (24 hours per day, for
7 days per week) throughout the year, places considerable demands on IT resources,
particularly when security and back-up are included; the services of an Internet Service
Provider (ISP) to host your website, may be an attractive proposition
Marketing and promotion strategy: the internet offers access to a wider geographic
customer base, which allows targeting market segments and interest groups; by encouraging
interactions between customers, the internet allows the development of electronic web-
communities; promotion strategies must be developed to target specific market segments
and to develop web-communities
Supply chain strategy: satisfying customer demand, with accuracy and speed, requires a
responsive supply chain; it may be possible for most of these activities to be executed in-
house, however this requires competence in a broad range skills; these skills may be more
readily available from outside the organisation, by using suppliers; effectively exploiting the
capabilities (and financial resources) of suppliers is the challenge of supply chain
management; developing partnership relationships with suppliers and integrating them
with your business electronically, so that both can benefit from serving your customers, is
the challenge of your supply chain strategy

253
Electronic payment systems: doing business with customers is only worthwhile as long as
you get paid for your services; it is vital to consider what payment systems you will use and
the payment terms you will offer to your customers; business is conducted on the basis of
trust, as there are risks to both the supplier and the customer; what assurances can you give
to your customers that you will not take payment until the products, or services, have been
supplied? similarly, what assurances can you give to your suppliers, that they will get paid,
especially if they offer you deferred payment terms
Implementation priorities: successful business are about buying and selling at a profit; you
need customers and suppliers and a means of processing transactions with each of them; it
will take time and money to develop your website and to make it available for customers;
you will need to establish relationships with your suppliers; when you are ready you will
need to promote your business, to make potential customers aware of your presence and
what you have to offer; until you start generating revenues, you will be burning up your
initial investment capital; a business plan will help make these issues clear, so that you can
plan your implementation priorities
Metrics: how will planning and implementation be assessed
Exit strategy: why one is required, how it will be invoked
3 Protection of the business
Intellectual property: protecting the domain name, company name, trade marks and
intellectual property
Assessment of security risks: review the risks of linking your business systems to the
internet
Security measures: propose security measures to minimise risks; firewalls and use of
intranets or extranets
4 Future developments
Mobile technology: review developments in mobile technology and assess their impact on e-
business
Impact of XTML: consider the impact of XTML on e-business
Supply chain integration: examining the implications of supply chain integration through
use of the internet
International competitiveness: assessing the impact of e-business on international
competitiveness

254

the ability to:
1 Analyse the impact on the
business
analyse the expectations of internet customers
assess the integrity of data in existing business
system database
analyse service and quality of existing logistics
processes
plan resources for on-going website maintenance
and support
2 Plan implementation
strategy
plan for website design, site hosting, ASP or use of
in-house services
develop an e-marketing and promotion strategy
develop an e-supply chain management strategy
assess priorities for implementation and integration
with existing systems
3 Explain measures for
protection of the business
explain protecting the domain name, company name,
trade marks and intellectual property
review the risks of linking your business systems to
the internet
propose security measures to minimise risks
4 Examine future
developments in e-business
monitor developments in mobile technology
explain the impact of XTML on e-business
examine the implications of supply chain integration
using the internet
assess the impact of e-business on international
competitiveness

255
Guidance

Delivery
working individually, or in pairs, around an internet access point (usually a personal computer).
The use of e-business case studies would be appropriate for this unit.
Assessment
examination questions.
Learners could be encouraged to develop their own implementation strategy for an e-business
proposal, as a coursework assessment.
Links
This unit follows on from Unit 29: Introduction to the Internet and E-Business, Unit 30:
Internet Marketing and Unit 31: E-Business Operations. Aspects of this unit also link with
Unit 33: Information Systems.
Resources
Texts should be supported by the use of websites and case studies. For those part-time learners
adopted.
Websites can be useful in providing information and case studies (eg www.bized.ac.uk which
provides business case studies appropriate for educational purposes).
Support materials
Textbooks
Chaffey D E-Business and E-Commerce Management (Prentice Hall, 2002)
ISBN: 0273541889
Chaffey and Weaver E Business and E Commerce Management: Strategy, Management and
Applications with a Guide to Student System Development Projects (FT, Prentice Hall, 2003)
ISBN: 0582821851
256
Lauden K C and Traver C G E-Commerce: Business, Technology, Society (Addison Wesley,
2001) ISBN: 032112202X
Morath P Success @ e-Business (McGraw Hill, 2000) ISBN: 0077096258
Other useful texts
Cumming T Little e, Big Commerce (Virgin Publishing, 2001) ISBN: 0753505428
Neilsen J Designing Web Usability (New Riders 2000) ISBN: 156205810X
Salter B and Langford-Wood N A Simple Guide to e-Commerce (Prentice Hall, 2001)
ISBN: 0130286494
Schneider G P Electronic Commerce (Thomson Learning, 2002) ISBN: 0619063114
Sleight S Moving to E-Business (Dorling Kindersley, 2001) ISBN: 0751312150
Turban E et al Electronic Commerce (Prentice Hall, 2002) ISBN: 0130653012
Newspapers
Useful articles regularly appear in the business pages of quality newspapers eg The Guardian
Online supplement available with The Guardian newspaper each Thursday.
Websites
The websites supporting textbooks with learning materials, also include plenty of examples of
good commercial websites.
www.bized.co.uk provides business case studies appropriate for
www.booksites.net website of Pearson Education
www.course.com Thomson Course Technology, publisher of
educational texts on technology
www.LearnE-Commerce.net provides latest research and information on
e-commerce appropriate for educational purposes

257

Information Technology
258

259
Unit 33: Information Systems
Learning hours: 60

Description of unit
Organisations have always depended on information to ensure success. Over the years,
organisations have changed their information systems from dealing purely with data processing
to strategic and decision support. Managers need information to plan successfully in the short,
medium and long term. It is also recognised nowadays that information is required at all levels
in an organisation and that information itself can have many sources. The importance of valid
information in gaining competitive advantage needs to be stressed.
Learners will gain an understanding of the ways in which data can be processed and the
applications that support organisations. They will also be asked to evaluate the capacity of an
information system to satisfy the needs of the user.
1 Identify information needs within different functional areas of an organisation
2 Compare a range of information systems
3 Examine the tools available to organisations for information processing
4 Evaluate the information systems within an organisation.

260
Content

1 Information needs within different functional areas
Information needs: requirements analysis (strategic, tactical, operational), data requirements
(inputs, outputs, processing activities)
Functional areas of an organisation: finance, personnel, accounts, stock control, logistics
and supply chain management, sales, marketing
2 Range of information systems
Information systems: business information systems, decision support systems, management
information systems, data warehouse systems
Information and data: definition of information and data, sources of information,
information requirements and the needs for information at different levels within an
organisation, storing information and its importance with regard to security, accuracy and
relevance, outputs (payroll, invoicing, ordering, bookings, stock control, personnel records,
goods tracking)
3 Tools available for information processing
Tools: current tools (text processors, client-server, databases, artificial intelligence, expert
systems, data warehousing, data mining), description of the use of telecommunications
(internet, email etc)
Information processing: transaction processing, information presentation and reporting,
strategic advantage and problem solving; relationship with tools
Methods: batch, transaction, single user, multi-user; centralised, distributed
Real-time processing: process control, information processing
4 Information systems within an organisation
Evaluation techniques: criteria (accuracy, suitability, timeliness, benefits, cost, confidence),
professional, legal, ethical and social issues of usage

261

the ability to:
1 Identify information needs
within different functional
areas of an organisation
compare and contrast the different functional areas
of an organisation
understand the information needs of each functional
area
analyse the information needs for a given scenario or
case study
2 Compare a range of
information systems
identify different types of information systems
examine the current trends in using applications to
solve business problems
recognise the information systems suitable for
different functional areas of an organisation
3 Examine the tools available
to organisations for
information processing
identify the tools required to solve a specific
problem within an organisation
describe the current information processing methods
for a given problem
examine alternative methods of supplying the same
information
4 Evaluate the information
systems within an
organisation
employ evaluation measures effectively
evaluate the effectiveness of a given application
associated with a given scenario or case study
provide written documentation to support the
evaluation

262
Guidance

Delivery
Whenever possible, the unit should use real-life examples of information systems and suitable
computer-based tools. Centres are advised to use the resources and experience of local
organisations to provide case study material.
Assessment
Evidence of outcomes may be in the form of assignments and projects undertaken individually
or as part of a group. Learners should use computer-based tools, such as word processors, to
provide their assessment evidence.
Links
This unit has links with Unit 29: Introduction to the Internet and E-Business, Unit 30: Internet
Marketing, Unit 31: E-Business Operations, Unit 32: E-Business Planning and Implementation,
Unit 34: Networking Concepts, Unit 35: Multimedia Design and Authoring, Unit 36: Website
Design, Unit 37: Networking Technology, Unit 38: MS Office Solution Development, Unit 39:
Systems Analysis, Unit 54: Computer Platforms and Unit 55: Human Computer Interface.
Resources
Case study material is needed for evaluating information systems. Many textbooks offer case
study material, as does the internet.
Suitable software tools should also be available to evaluate in the light of an organisations
information needs.
Support materials
Textbooks
Tutors should be aware that textbooks are frequently updated and that they should use the latest
editions where available. This is a practical unit and textbook materials should be used for
reference purposes. There is a range of general textbooks relating to this unit, including the
following.
Checkland P and Holwell S Information, Systems and Information Systems: Making Sense of
the Field (J ohn Wiley and Sons, 1997) ISBN: 0471958204
Marchand et al Mastering Information Management: The Complete Companion in
Information Management (Financial Times Prentice Hall, 1999) ISBN: 0273643525
See also list in Unit 8: Information Systems Project.

263
Unit 34: Networking Concepts
Learning hours: 60

Description of unit
The importance of networked solutions in the business world grows year on year. The
increasingly sophisticated technologies and widening user base mean a fundamental
understanding of networks is essential for many. The aim of this unit is to provide a rigorous
introduction to networks, and practical experience in installing users and software on a network.
This unit will clarify the issues associated with network use and how this has developed. It will
identify the architectural concepts behind networking and help develop the preliminary skills
necessary to install and manage networks.
1 Evaluate the benefit of networks
2 Apply architectural concepts to the design/evaluation of networks
3 Install network software
4 Perform network management responsibilities.

264
Content

1 Benefit of networks
Network principles and applications definition of a network: evolution of network uses,
from simple file and print networks, through small office computing, to client-server
architectures, review of remote access, starting with email through to intranets and the
internet, LANs (local area networks), WANs (wide area networks) and MANs,
(metropolitan area networks), networked applications, overview of cost/benefits of network
use
Network use: an overview of network resources (hardware and software), facilities of a
network operating system, understanding of security implications and software licensing
issues, constraints on capacity and performance (such as being asked to run video off a
10Mbit Ethernet connection)
2 Design/evaluation of networks
Network architecture concepts: the ISO OSI 7-layer model (and/or IEEE 802), topologies,
eg bus, ring, structured; a description of communication devices, repeaters, bridges and
hubs, standard connectors and wiring, functions of a network card, differences between peer
to peer and server-based networks, description of main protocols, ie Ethernet, ATM, token
ring, IPX, SPX, and their relationship with the 7-layer model, the principles and resources
required to connect LANs to WANs, TCP/IP as a WAN protocol, TCP/IP addressing and
how routing works
Network design: using architectural principles and definitions to design a new network or
evaluate an existing one
3 Network software
User factors: design and definition of users and groups, the definition of directory structures
on the file server, file and directory attributes, trustee rights, IRM (inherited Rights
Management), and setting up security
Login scripts: definition of the user environment, menu systems
Hardware and software factors: printing set-up, understanding of printing options,
installation and configuration of applications on the network (including operating system
constraints), file server installation and utilities
4 Network management
Management responsibilities: the problems of creating large numbers of accounts on a
network and keeping it up to date, management of users, workgroup managers, network
security and virus protection (elements of good practice)
Resource management: control resource usage estimation and tracing of resource usage,
managing printer queues, connecting of the network to the outside world, advantages (eg
internet) and disadvantages (eg hackers), firewalls

265

the ability to:
1 Evaluate the benefit of
networks
produce a coherent argument as to the advantages
and disadvantages of using networks within an
organisation
evaluate the various cost, performance, security and
utility values associated with the installation of a
network
provide an overview of a network operating system
and how it works
2 Apply architectural concepts
to the design/evaluation of
networks
design a LAN for a specific purpose or assess an
existing network for fitness of purpose
identify the various parts (software and hardware) of
a network system and relate it to the 7-layered model
differentiate between different kinds of network,
network topologies and network operating systems
3 Install network software set up a software network environment, for example
departments in an organisation
install a piece of network software on to a server to
be used by different selected users in a group
configure user workstations on the network
4 Perform network
management responsibilities
write a report on the rights and responsibilities of the
network manager and the network user
apply control mechanisms in a typical network for
managing users
control printer queues and other forms of resource
usage

266
Guidance

Delivery
This unit may be delivered as a stand-alone package or alongside other units. Most learner effort
should be spent in practical activities in this unit. It may be that the major part of these could be
achieved in groups, each learner developing a different department in an organisation, for
instance.
Assessment
There is an obvious need to combine practical and theoretical assessment. The theory can be
delivered by using case studies that consider existing networks. Learners can produce reports
that describe features and show an understanding of the principles and definitions. The practical
aspects provide an opportunity for learners to design, install and maintain a simple network. It is
essential that a log book is maintained for recording both progress and effectiveness.
Links
This unit links with Unit 33: Information Systems, Unit 35: Multimedia Design and Authoring,
Unit 36: Website Design, Unit 37: Networking Technology, Unit 38: MS Office Solution
Development and Unit 39: Systems Analysis. There may also be links with Unit 7: Business
Strategy and some of the units covering aspects of E-Business.
Resources
In order to deliver this unit centres must have a development server that can be booted up. A
dedicated server needs to be available, and connected to several stations. At least one networked
printer, network monitoring software and all relevant network documentation should be
accessible to learners. Centres must also provide networkable applications (software), which can
be installed on the server.
Support materials
Textbooks
Networking Complete (Sybex International, 2002) ISBN: 0782141439
Parnell T Network Administrators Reference (McGraw Hill, 1999) ISBN: 0078825881
Tanenbaum A Computer Networks (Prentice Hall PTR, 2002) ISBN: 0130384887

267
Unit 35: Multimedia Design and Authoring
Learning hours: 60

Description of unit
Through this unit learners will learn to design and evaluate a prototype multimedia system using
an iterative approach. Through research and practice learners will identify users needs and
content. Learners will design the structure, interaction and components of the interface. A
psychological understanding will be encouraged to give learners a broad understanding of the
use of colour, metaphors and navigational systems. Prototypes will be designed through
exploration of software prototyping tools and techniques.
1 Research and define users needs through task analysis
2 Originate and plan a structure for interaction and interface design
3 Assemble audio and visual components of multimedia prototype
4 Evaluate, develop and present prototype.

268
Content

1 Task analysis
Research: literature, publications, journals, electronic data, observation, questionnaire,
interview, survey
Users needs: content, existing systems or methods, other similar systems, environmental
issues, location, social context, tasks, constraints of a system, delivery platform, input,
output devices
Task analysis: observations, task being performed, difficulties encountered, hesitations,
question expectations, question requirements and opinions, visual perception, attention
span, dexterity, confusion, organisation, learning, memory constraints
Prototype system: user-centred design, storyboards, flow diagrams, scripts, musical scores,
structure map, design standards and guidelines, copyright laws
Cultural and contextual sensitivity: political, sexual, ethnic, minority groups, religious,
cognitive and physical special needs, disabilities, discrimination awareness
Audio components: sampled sound, generated sound, digital audio, synthesised sound, audio
feedback (sounds made in response to the users expectation of an everyday object or
interaction with an element on screen, eg camera click, light switch clicking on and off,
turning a page over, to reinforce an action), speech feedback, environmental sound, music
for example
Prototyping tools: eg proprietary drawing and painting software
Originate: production of original source materials, production of appropriated source
materials with particular attention paid to copyright licensing laws, scanned material, digital
photography, digital video, cultural sensitivity, political propriety
2 Interaction and interface design
Screen design: quantity of information presented, grouping and prioritising of information,
highlighting techniques, standardisation of screen display, presentation of text, use of
typography, use of graphics, use of colour for highlighting, prioritising and drawing
attention, screen metaphors, navigation systems, video, guides or agents, animation, visual
feedback, language and dynamics of screen design, innovation and creativity, intrinsic and
extrinsic rewards, feedback and playback
Communication styles: menus, windows, navigation systems, direct manipulation, form-
filling, question and answer dialogues
3 Multimedia prototype
Plan structure: system diagram, flow chart, storyboard animation sequences, video, sound
track, screen design, interaction, navigation system, flow chart of the system, to indicate
depth and breadth of system, linking of screens, of information, information flow indicating
input elements and output elements

269
4 Develop and present prototype
Evaluate with: target users, computer users and non-computer literate users
Evaluate for: cross-platform file compatibility using Macintosh file formats, using Windows
file formats, browser friendly palettes, file size, file economy, file quality, and file
compression techniques, frames (J ava), internet browsers (Debabeliser), assessing,
evaluating, checking, requirements, usability, accuracy
Develop: improve, amend edit, rearrange, replace, as a result of evaluation
Presentation considerations: file size, format, compression techniques, stand-alone
applications, compiling, screen-based, point of sale, educational, entertainment, information
kiosk, CD-Rom pressing techniques, worldwide web publishing

270

the ability to:
1 Research and define users
needs through task analysis
research and identify user needs, context,
environment, and possible constraints
observe and record target users engaged in existing
methods or practices
2 Originate and plan a structure
for interaction and interface
design
design a basic structure from which to build a
multimedia prototype
create, design or collect audio and visual
components of a multimedia prototype
3 Assemble audio and visual
components of multimedia
prototype
produce multimedia prototype
assess screen design, audio and interaction and
adjust if necessary
4 Evaluate, develop and
present prototype
evaluate multimedia prototype with a range of users
develop multimedia prototype
produce a written evaluation of working methods
and the prototype

271
Guidance

Delivery
Encouraging learners to experiment will help them to broaden their creativity and become
familiar with the tools and technology. However, learners will need considerable support and
guidance to overcome the obstacles and difficulties they will face.
Centres may wish to identify a person on the course team to act as a learning coach to all the
learners. This is a relatively new role in higher education. The learning coach could hold regular
weekly seminars with learners to discuss general progress and point out common problems.
Learners need to face real problems, as preparation for those they will meet throughout their
careers. Open dialogue and critical reflection will make this a positive learning experience.
With the ever-increasing demand for multimedia on the web, in education and industry, learners
should be aware that not everyone uses the same delivery hardware. Development for the web
brings a host of complicated issues for the Mac-based developer. This unit addresses the key
cross-platform issues. Wherever possible, learners should be encouraged to design generally for
the lowest technical baseline and specifically for the users needs.
Assessment
Managing an interactive multimedia project, whether for education, training, or entertainment
purposes, requires careful consideration of the various elements. Learners should demonstrate
the ability to consider and produce a multimedia prototype from concept through to completion.
Concept designs should be provided in the form of sketches, notes, scripts, flow diagrams,
charts, screen designs, storyboards, animatics, visual and audio materials. The overall flow of
the system should be completed, particularly if the prototype is incomplete.
The prototype may not be complete in all aspects. However, there should be a good interactive
structure in place together with a consistent navigational system. Samples of screen design
should show: consistency, organisation and prioritisation of information, usability and
appropriate use of colour and text. The system should show effective use of audio feedback,
music and/or speech, visual feedback, animation and/or video, overall aesthetic appeal,
innovation and creative thought.
Research techniques may include: the library, the internet, CD-Rom, databases, specialist
publications, galleries, exhibitions, observations, evaluations, questionnaires and interviews
with practitioners. Learners should record sources carefully and accurately citing authors, titles
of books, articles, journals and publications, date of publication, place of publication and
country of publication. Learners should be encouraged to check facts by cross-referencing.
Intellectual property rights are at the heart of any professional multimedia production. This unit
will provide a basic understanding of the various forms of intellectual property rights (for
example, copyright, patent, and trademark). It will enable learners to investigate and understand
how these rights are created, protected, acquired and exploited. Evidence may be presented as a
part of a written assignment.
Consideration must be given to the cultural and contextual sensitivity of the content.
272
Links
Unit 57: Project Management will provide the necessary skills needed for learners to undertake
a multimedia project.
There may also be links to other units in the Information Technology pathway, for example Unit
54: Computer Platforms and Unit 55: Human Computer Interface.
Resources
Software
An industry standard authoring application such as Macromedias Director, plus software to
create and edit images and to create animation and sound elements.
Support materials
Textbooks
Tutors should be aware that textbooks and websites are frequently updated and that they should
use the latest editions where available. This is a practical unit and textbook materials should be
used for reference purposes. There is a range of general textbooks relating to this unit, including
the following:
Christ R E Review and Analysis of Colour Coding Research for Visual Displays Human
Factors, Vol 17, no 6, pp 542-70
Cope P Teach Yourself Digital Video & PC Editing (Teach Yourself, 2003)
ISBN: 0340857323
Crawford C The Art of Interactive Design: A Euphonious and Illuminating Guide to Building
Successful Software (No Starch Press, 2002) ISBN: 1886411840
Doney A/Seton, J and Rubin T (editors) Using Colour: User Interface Design for Computer
Systems (Ellis Horwood, Chichester, 1988)
Gould J D and Lewis C Designing for Usability: Key Principles and What Designers Think
Communications of the ACM, Vol 28, no 3, pp300-11
Lynch P J Visual Design for the Interface
Websites
http://info.lboro.ac.uk/research/husat/use/usabilitystandards.h
tml
usability standards: HUSAT, Loughborough
http://info.lboro.ac.uk/research/husat/inuse/webpaper.html Usability Issues in Website Design: HUSAT,
Loughborough
http://info.med.yale.edu/caim/manual/papers/gui1.html Part 1: Design Fundamentals
http://info.med.yale.edu/caim/manual/papers/gui2.html Part 2: Graphics in the Interface
www.useit.com/alertbox/9610.html disabled users and the web
Web pages provide access to a further range of internet information sources. Learners must use
this resource with care, justifying the use of information gathered.

273
Unit 36: Website Design
Learning hours: 60

Description of unit
This unit will facilitate the development of an awareness and understanding of the technical and
creative skills required to design, construct and manage an effective e-business website
interface. Learners will evaluate existing e-business sites, in the context of cross-platforms and a
range of browsers. They will analyse a range of commercially available web authoring software
and be required to create a viable, interactive website interface, which meets contemporary web
design principles.
1 Assess the design and functionality of existing and established e-business sites
2 Examine a range of web authoring tools for creating multimedia websites
3 Develop an integrated set of web pages/frames
4 Develop interactive applications on a web server.

274
Content

1 Design and functionality
The users: range of users (eg expert, regular, occasional, novice, special needs), needs of
user (psychological, cultural, social and environmental considerations, including health and
safety)
Site analysis: purpose of site (educational, promotional, informative, commercial),
correspondence of site objectives with organisational objectives, planning the site (eg
storyboarding, grouping tasks into logical sets, hypermedia linkage, structure, key wording
for search engine spiders, graphical design, audio capture/edit, video sources, animations,
text design), updating and maintenance plan, testing plan
Design: rules and heuristics for good website design, protection and infringement of
copyright, review of proprietary examples, evaluating functionality of design (timings,
navigation, ease of use, effort, user satisfaction), design tools and software for evaluating
design (eg Web Garage); management of website content (content management
applications), conformity with software standards (ie TickIT)
Environment: review of current internet browser software and introduction of features
URLs, HTML, J avascript, J ava applets, plugins, PERL protocols etc, hardware and
operating environments computer platforms, operating systems, design implications
Browsers: differences between current browsers and protocols, locating internet sites with
freely available applets and CGIs for incorporation into individual sites, differing browser
treatment of CSS (cascading style sheets), scripting languages
2 Web authoring tools
Mark-up and scripting languages: relationship between different mark-up languages
(SGML, XML, HTML, DHTML), structure of ML, ML tags and their documentation,
current ML features (tables, frames etc), current changes to ML standards, use of CSS
(Cascading Style Sheets) and scripting languages
Development: selection of software, design of solution, development of application
Software: evaluation of suitability of a range of commercial web development software:
Macromedia products (Dreamweaver, Flash, Fireworks), Adobe products (GoLive,
PhotoShop, Acrobat) and other products (eg HoTMetal), awareness of e-commerce solution
providers
3 Web pages/frames
Page elements: development of skills in the use of mark-up language (eg HTML etc)
headings, rules, frames, buttons, text and list boxes, hyperlinks/anchors, graphical images,
clickable images, maps etc
Accessing images: using scanner, digital and conventional cameras, video camera (stop
motion), transparencies, clip art, graphics tablets and images on the internet
Image handling: file and compression formats for different applications (eg EPS, PICT,
GIF, PSD, J PEG), save with attachments, layers and channels, image transformation, canvas
sizing, resolution issues for screen and print and colour modes (eg GREYSCALE, RGB),
streaming for video production

275
4 Interactive applications
Server side interaction: accepting data from users and responding with appropriate actions
and responses based using the CGI (common gateway interface) or equivalent, cookies
Database connectivity: the common methods of using/accessing databases from CGI
applications eg ODBC, J DBC, SQL
Server interaction: linking via a web server/internet with a range of back-end systems
including databases using current protocols
Hardware: computer platforms, advanced input and storage devices (disc technology, disc
writers, additional storage hardware), archiving and compressing data

276

the ability to:
1 Assess the design and
functionality of existing and
established e-business sites
evaluate existing e-business websites according to
established rules of web design
apply software for evaluating design to existing sites
and own site(s)
2 Examine a range of web
authoring tools for creating
multimedia websites
briefly describe the different mark-up and scripting
languages
investigate the features of a range of commercial
web authoring tools
evaluate the suitability of a selected range of
commercial web authoring tools
3 Develop an integrated set of
web pages/frames
produce a complex set of linked interactive pages,
using a range of authoring tools, including mark-up
languages and drawing from existing scripting
language resources
use a range of devices to collect graphical data
use a range of software tools to manipulate graphical
data and incorporate it into linked pages
4 Develop interactive
applications on a web server
use a web server to host an e-business website
interface
design, write and test an interactive application in a
suitable language
manage the integrity of files on the server

277
Guidance

Delivery
This unit is best delivered in a network environment. The delivery should be mainly practical
and centres are advised to use both simple and complex web specifications. In addition to
technical aspects, learners should be guided in ensuring that the web pages produced are user
friendly.
Assessment
Learners will provide a range of evidence. This will include a report detailing learner
experiences of adapting to new hardware and software. Assessment needs to be included which
shows the learners ability to evaluate websites. Learners should also be required to produce a
portfolio of documentation of website applications produced.
Links
Learners need to be familiar with standard business applications and be able to navigate the
internet without difficulty. This unit links with Unit 29: Introduction to the Internet and
E-Business, Unit 30: Internet Marketing, Unit 31: E-Business Operations, Unit 32: E-Business
Planning and Implementation, Unit 33: Information Systems, Unit 34: Networking Concepts,
Unit 35: Multimedia Design and Authoring, Unit 36: Website Design, Unit 37: Networking
Technology, Unit 38: MS Office Solution Development, Unit 39: Systems Analysis, and also
with Unit 51: Computer Platforms and Unit 52: Human Computer Interface.
Resources
Resources required are:
hardware: access to appropriate computers, image recording equipment, an LAN and
suitable web server
software: ML tool, Macromedia and Adobe web authoring software, relevant server
operating system and appropriate CGI compatible language
library: operating system manuals, ML reference.
Support materials
Textbooks
editions where available. Web design software is supported by many hundreds of books
including the software houses themselves. This is a practical unit and textbook materials should
be used for reference purposes only. There is a range of general textbooks relating to this unit,
including the following.
Bruce E Teach Yourself Macromedia Dreamweaver (Sams, 2002) ISBN: 067232346X
Buchanan and Lukaszewski Measuring the Impact of Your Website (Wiley, 1997)
ISBN: 0471172499
Cato J User Centered Web Design (Addison Wesley, 2001) ISBN: 0201398605
Stauffer T HTML by Example (Que, 1999) ISBN: 0789722283
278
Websites
www.builder.com advice on IT software and web development
www.macromedia.com provides products for and advice on web
development
http://msdn.microsoft.com/workshop MSDN library and web workshop
www.reallybig.com resource for building websites
www.tips-tricks.com resource for building websites
www.webmonkey.com resource for building websites
www.webopedia.com search engine for computer and internet
technology
www.webreference.com web development site, advice on browsing,
authority, web design
www.webreview.com articles on software and the web


279
Unit 37: Networking Technology
Learning hours: 60

Description of unit
Understanding of the underlying principles of networking is of vital importance to all IT
practitioners in todays increasingly sophisticated world. The aim of this unit is to provide a
background to the basic components of networked systems from which all networking
operations derive. It also includes the evaluation of networks and network applications.
1 Evaluate networks and networking approaches
2 Investigate basic hardware components and the role of network operating system
(NOS) software
3 Explore the connection of network components
4 Explain the Open Systems Interconnection (OSI) model and common network
architectures
5 Evaluate data transmission and protocols in a network environment.

280
Content

1 Networks and networking approaches
Purchasing: as a service function, purchasing as a proactive activity
Networks: introduction, role, purpose, benefits, resource implications
Approaches: peer-to-peer, client-server computing (model, functions, client role, front-end
tools, advantages), centralised computing
Server: role, types, purpose
2 Hardware components and the role of network operating system (NOS) software
Components: workstation, servers, cabling, hubs and repeaters
Software: control, connect, manage, secure
Topology: types, common variants, comparison (cost, reliability, speed), advantages,
disadvantages
Selection: criteria (type of network, network topology, reliability, cost, future needs,
cabling)
3 Connection of network components
Cabling: types, specifications, connectors, terminators, industry standards Signal
transmission: broadband, baseband, bandwidth, analogue, digital
Network interface cards: role, installation, configuration (NOS tools, configuration
parameters eg IRQ number, I/O port, memory address, setting protocols), selection,
performance factors (eg DMA, onboard RAM, system RAM, bus mastering, RAM
buffering, processor model), types (eg wireless, fibre optic, remote boot)
Selection: criteria (installation logistics, shielding, crosstalk, transmission speed, cost,
attenuation)
4 Open Systems Interconnection (OSI) model and common network architectures
Model: outline of network communications, function of layers, services of layers
Architectures: Local Area Network, OSI 802 modifications (logical link control, media
access control), access methods and features, comparison, IEEE 802 definitions: Ethernet,
Token Ring, Apple Talk, ArcNet (components, features, cabling, selection
Drivers: purpose, sources, NIC drivers (function, relationship to OSI layers),
implementation by NOS
5 Data transmission and network protocols
Data packets: role, structure, components, origin and formation (OSI layers), sending,
receiving, examples
Protocols: definition, purpose, stacks and OSI layers, binding, types (application, transport,
network), standards

281

the ability to:
1 Evaluate networks and
networking approaches
discuss the role of networks within different
organisations and the resource implications of
networks
discuss the different distributed computing
approaches of peer-to-peer and client-server
networks
explain the functions of client and server computers
on a network and give at least one example of the
interactions between a client and server computer
describe the advantages of client-server approaches
particularly over centralised services
2 Investigate basic hardware
components and the role of
network operating system
(NOS) software
draw and describe basic network topologies and
define basic network components
discuss role of software and hardware
discuss factors influencing choice of networks
stating advantages and disadvantages that arise from
different topologies
determine a suitable network for a given site
3 Explore the connection of
network components
explain different connection materials including
their specifications and list the criteria you would
use to choose such materials
describe basic signalling methods and their
characteristics
explain the role of the network interface card and
carry-out selection, installation and configuration of
a network interface card using NOS tools
identify how the relevant parameters and protocols
are set
discuss factors that affect the performance of
network interface cards
determine a cabling and hardware connection
configuration for a given site
282

the ability to:
4 Explain the Open Systems
Interconnection (OSI)
model and common network
architectures
present the OSI layered model
explain the role of drivers in a network, discussing
their relationship to the NOS and OSI model
discuss how drivers are selected and implemented
for various network components; install NIC driver
and demonstrate how to remove and update
explain the detailed operation of different
IEEE 802.N network configurations
refer the 802 protocols to the existing OSI layers
relate how architecture influences access and control
of the network and draw out merits of different
architectures
describe scenarios where one architecture might be
favoured over another
5 Evaluate data transmission
and protocols in a network
environment
discuss the role of packets and how they are built up
from their various components, giving an example
where data packets are transmitted through different
layers of the OSI model
discuss the role of protocols at different layers of the
OSI model, describing the function of specific
protocols
explain examples of transmission between different
network layers

283
Guidance

Delivery
The delivery methods for this unit are likely to include tutorials, workshops, presentations and
personal study by the learner.
Assessment
Evidence of the outcomes for this unit will be in the form of a portfolio of work that learners
will develop. The portfolio will include exercises and assignments demonstrating coverage of
the assessment criteria. Centres may wish to develop exam type assessments to give learners this
experience.
Links
This unit has links with Unit 32: E-Business Planning and Implementation, Unit 33:
Information Systems, Unit 34: Networking Concepts, Unit 35: Multimedia Design and
Authoring, Unit 36: Website Design, Unit 38: MS Office Solution Development, Unit 39:
Systems Analysis, Unit 53: Computer Platforms and Unit 54: Human Computer Interface.
Resources
The following resources may be used:
exemplar materials and case studies
videos
internet access.
Support materials
Textbooks
following.
Halsall F Data Communication, Computer Networks and Open Systems (Addison Wesley,
1995) ISBN: 020l42293
Hodson P Local Area Networks 3rd Edition (Continuum, 2002) ISBN: 0826458661
Hunter P Local Area Networks (Addison-Wesley, 1993) ISBN: 0201627639
Networking Essentials Plus (Microsoft Press, 2003) ISBN: 0072850620
Networking Essentials with CD ROM (Microsoft Press, 2003) ISBN: 157231902X
Tannebaum A Computer Networks (Prentice Hall International, 2002) ISBN: 0130384887
284
Websites
Websites that support the development of this unit include those of computing associations and
employers. The following may be useful:
www.network-world.com Network World

285
Unit 38: MS Office Solution Development
Learning hours: 60

Description of unit
This unit focuses on the use of Visual Basic for Applications to extend the capability of
Microsoft Office in the development of solutions that automate business processes access data
and publish information to an intranet or the internet.
The unit develops Visual Basic skills for use in Office and looks at building solutions in Excel,
Word, PowerPoint, Access and Outlook. The unit also looks at the use of FrontPage 2000 to
design, create and publish Office solutions to the internet and intranets.
The unit requires a thorough knowledge of the Microsoft Office suite together with an
intermediate level of skills in using Visual Basic such as gained from studying Unit 39: Visual
Programming Fundamentals.
This unit presents opportunities to demonstrate key skills in problem solving, information
technology and improving own learning and performance.
1 Apply Visual Basic skills
2 Understand design issues of Office solutions
3 Build solutions in Office applications
4 Use FrontPage to publish Office solutions.

286
Content

1 Visual Basic skills
Visual Basic editor: macros, procedures, writing and running code, setting properties,
environment options
Debugging and error handling: types of errors. Break mode. Debugging techniques: break
points, step through, Watch expressions, Locals window, Call stack, use of Immediate
window. Error handlers
Variables and constants: declaration and use of variables. Scope of variables. Data types
(String, Integer, Long, Single, Double, Currency, Boolean, Variant). Conversion between
data types. Use of pre-defined constants
Control flow structures: IfThen...Else, Select Case, DoLoop, ForNext, For...Each
Working with forms: forms, toolbox, controls, events, menus, command bars, toolbars
Communication with users: MsgBox, InputBox functions. Validation
Object models: objects, properties, methods, Office Object models, type libraries, Object
Browser
2 Understand design issues
Office solutions: Office, programmability, designing solutions
Deploying solutions: package and deployment wizard, setup files, exe files, custom
templates, security
Principles of user interface design: user control, modal interactions, simplicity, consistency,
personalisation, feedback, user assistance
3 Build solutions
Excel: Excel Object Model, workbooks, worksheets, ranges, charts, pivot tables, publishing
as html
Word: Word Object Model, documents, templates, ranges, selections, autotext, table objects
PowerPoint: PowerPoint Object Model, presentation object
Office Assistant: the Office Assistant Object Model, balloons
Access: the Access Object Model, databases, reports, web reports. ADO Object Model,
connections, commands, recordsets, navigating, filtering. OLE DB. Querying data using
Access Query Wizard, SQL. Handling errors
Outlook: the Outlook Object Model, items, events, messages
COM Addins: designing, creating, registering

287
4 Publish office solutions
FrontPage: FrontPage webs, server extensions, page editor, publishing
Managing a website: reports and tasks, categories
FrontPage solutions: FrontPage Object Model, Web Object Model, Page Object Model
288

the ability to:
1 Apply Visual Basic skills start, pause and stop program execution
use the standard control tools to create the user
interface
set properties of forms and controls at design time
create menus and implement menu functionality
use the visual basic debugging tools
access and set properties of controls from code
declare and use variables
get and validate data from users
use data types correctly
use control flow statements of selection and iteration
create and use procedures and functions
2 Understand design issues of
Office solutions
identify when programmed solution is required
analyse benefits and disadvantages of programmed
solution
discuss and implement security requirements
use the package and deployment wizard
install applications
demonstrate use of principles of user interface
design
3 Build solutions in Office
applications
design and build programmed solutions in excel
design and build programmed solutions in word
design and build programmed solutions in access
design and build programmed solutions in
PowerPoint
design and build programmed solutions in outlook
design and build programmed solutions for office
assistant
build and use com addins in solutions

289

the ability to:
4 Use FrontPage to publish
Office solutions
create a FrontPage web page
use the FrontPage editor to design and create web
pages
publish the web to a server
manage the website
program in FrontPage

290
Guidance

Delivery
The focus of this unit is the achievement of a solid grounding in the use of developer tools in
Microsoft Office. It requires a clear understanding of what can be achieved and the benefits of
programmed solutions. To this end, assessment should include the ability to consider alternative
solutions and justify selection of solutions. Implementation of the chosen solution should
demonstrate attention to design and security aspects and where appropriate should present an
effective user interface.
The unit can be used as preparatory material for the Microsoft Certified Professional
examination 70091 although it is anticipated that only a small proportion of learners will reach
this standard.
Assessment
The main evidence for this unit is likely to be in the form of business solutions built in
Office 2000 applications and demonstrating the achievement of the learning outcomes. At least
one of the applications in the unit should be of sufficient complexity to simulate a real-world
application.
Learners should demonstrate the use of user interface design principles and effective
documentation and testing.
Links
Authoring, Unit 36: Website Design, Unit 37: Networking Technology, Unit 39: Systems
Analysis, Unit 53: Computer Platforms and Unit 54: Human Computer Interface.
Resources
A copy of Microsoft Office 2000, Premium Edition needs to be available to learners. Internet
Explorer 5, Office Developer Tools and Microsoft Outlook should be installed. MSDN Office
Developer Help is recommended.
Support materials
Textbooks
following:
Aitken P Developing Solutions with Office 2000 Components and VBA
J acobson R Microsoft Excel 2000 Visual Basic for Applications: Fundamentals
(MS Press, 1999) ISBN: 0735605939

291
Microsoft Office 2000 Visual Basic Language Reference (MS Press, 1999) ISBN: 1572319550
Microsoft Technologies Series
Smith R and Sussman D Beginning Access 97 VBA Programming (Wrox Press, 1997)
ISBN: 1861000863
Websites
Websites that support the development of this unit include those of computing associations and
employers. The following may be useful:
http://msdn.microsoft.com/vba Microsoft VBA site
www.vbatutor.com/vbatutor.htm online VBA Tutor
www.vb-bookmark.com/vba.html VBA resources
www.vbapro.com VBA resources
292

293
Unit 39: Systems Analysis
Learning hours: 60

Description of unit
This unit will provide learners with a detailed insight into the systems analysis life cycle,
modelling tools and techniques, testing procedures and the need for systems evaluation. This
unit will examine the requirements of analysis for both commercial and technical applications. It
will also introduce the data and functional modelling techniques which learners can be expected
to use.
1 Understand the systems analysis life cycle
2 Use systems analysis tools and techniques
3 Perform a system investigation
4 Investigate functional and data modelling.
294
Content

1 Systems analysis life cycle
Systems lifecycle: the stages of a chosen cycle (eg feasibility, analysis, specification, design,
detailed design, code and unit test, integrate and test, maintenance), the purpose of each
stage, differentiation between validation and verification
Evaluation of other lifecycle models: comparison of a chosen model with other models (eg
prototyping, dynamic systems development, waterfall, spiral, rapid applications design)
2 Systems analysis tools and techniques
Tools: using a variety of modelling tools, for example context diagrams, data flow diagrams
and entity relationship diagrams
Techniques: using systems analysis documentation requirements and user catalogue
preparing BSOS (business systems options) and TSOS (technical systems options)
3 System investigation
Fact-finding techniques: interview, observation, investigation, questionnaire
Fact-recording methods and standards: current computer and paper-based fact-recording
methods such as grid charts, flow diagrams, standard documentation technique
4 Functional and data modelling
Functional modelling: identification of system processes and functions, data flow diagrams
and process modelling techniques
Data modelling: top down techniques, entity relationship modelling

295

the ability to:
1 Understand the systems
analysis life cycle
identify the functions and purpose of each stage of a
systems life cycle
provide evidence to support an understanding of the
lifecycle
compare different life cycle models
2 Use systems analysis tools
and techniques
use data modelling techniques
create entity-relationship diagrams
use modelling documentation
3 Perform a system
investigation
investigate a given problem
identify system requirements
document an investigated system
4 Investigate functional and
data modelling
identify system processes and functions
produce a functional model
perform data modelling

296
Guidance

Delivery
This unit and all teaching should pivot around the requirements of the external assessment.
Learners should be given the opportunity to support all theory with a range of practical
examples that focus on all levels of the systems analysis life cycle.
Assessment
Learners should use a case study or pre-release materials to enable them to prepare for the
external assessment. Class sessions should cover a range of systems analysis theory coupled
with practical activities such as using fact-finding techniques, identifying user needs, preparing
a feasibility report, using modelling tools and designing a database to meet user needs.
Links
Authoring, Unit 36: Website Design, Unit 37: Networking Technology, Unit 38: MS Office
Solution Development, Unit 53: Computer Platforms and Unit 54: Human Computer Interface.
Resources
Learners should have access to a range of reading material based on current additions and
revisions to Systems Analysis (SSADM Version 4 or above). Learners should also use
appropriate modelling software such as Prince to assist with any designs. Any suitable database
applications software can be used to support the database designs.
Support materials
following:
Textbooks
Yeates D Systems Analysis and Design (Pitman Publishing, 1994) ISBN: 0273600664

297

Further specialist units
298

299
Unit 40: Purchasing
Learning hours: 60

Description of unit
The aim of this unit is to encourage learners to explore the major principles, concepts and
techniques which are inherent in the management of the purchasing function in modern,
efficient organisations.
1 Explain how the purchasing function contributes to the achievement of an organisations
objectives
2 Use appropriate information sources and criteria to evaluate and select suppliers
3 Explain how an organisation ensures that the regular quantities and quality of goods
(inventory) and services are purchased
4 Explain the role of the major national and transnational organisations and agencies
which influence international purchasing.

300
Content

1 Purchasing function
Purchasing: as a service function, purchasing as a proactive activity
Purchasing strategy and planning: the relationship of purchasing to corporate objectives,
relationship of procurement to strategic development, the development of the concept of
Developing purchasing systems: for standard items, for non-standard items, system design,
systems outputs
Systems user requirements: specialists, non-specialists, logistics, data components, ease of
use, access
The organisation and structuring of purchasing: centralisation versus decentralisation,
possible organisational configurations
Analysis of the efficiency of the purchasing function: performance indicators and
benchmarking
People in the purchasing function: skills needed, staffing needs analysis, recruitment and
selection of purchasing staff, training and developing the staff, ethical standards in
purchasing
IT and purchasing: integrated purchasing systems and EDI
2 Information sources and criteria
Sourcing for consumables, capital goods, goods for resale: supplier evaluation/vendor
assessment, single sourcing versus multiple sourcing, market conditions
Nature of relationship with suppliers: competitive or partnership/collaborative sourcing,
position of competitors with similar requirements, political, economic or sociological issues,
supply chain management, supplier performance monitoring
Sourcing issues: tendering, make or buy, subcontracting/outsourcing, buying services,
problems of buying commodities, purchasing in the public sector
3 Quantities and quality of goods
Quality: views of quality, quality control (QC), quality assurance (QA), Total Quality
Management (TQM), quality circles
Specifications: standardisation, value analysis/engineering, assessing supplier quality
Quantity: economic order quantities, stock control systems, management of surplus stock,
location and physical characteristics, storage systems, secure storage, handling equipment,
storage volume, supplier lead times
Timeliness: production planning system, eg MRP I, MRP II, J IT, Kanban, critical path
analysis, period of contract (short term, long term, current, future)

301
Price: pricing systems/methods, role of price: price and non-price factors in purchasing
decisions, obtaining prices, contractual issues, spot forward, future, the significance of
learning effects, risk versus return
Security and safety: risks, risk management, hazardous materials, health and safety
Negotiations in purchasing: phases in negotiation, skills of negotiation, contingency plans
Distribution methods: road, rail, shipping, air
4 National and transnational organisations and agencies
Organisations and agencies of significance with regard to international purchasing: eg EU,
DTI, SITPRO, trade agreements, GATT
Payment in international trade: open account, bills of exchange, documentary credits,
exchange rates and forward contracts, factoring
International trade specialists: agents and distribution, chambers of commerce, freight
forwarders
Purpose of international purchasing: exchange rate issues, cross-cultural issues
Global sourcing strategies: limitations, costs, benefits
Corporate social responsibility: sustainability reporting, supply change accountability

302

the ability to:
1 Explain how the purchasing
function contributes to the
achievement of an
organisations objectives
identify appropriate structures to manage the
purchasing function for a given organisation
recommend purchasing systems and related
performance measurement and benchmarking
systems for an organisation
critically evaluate an identified purchasing system
and its contribution to organisational objectives
suggest ways in which IT can be utilised to enhance
the efficiency of supply chain management
2 Use appropriate information
sources and criteria to
evaluate and select suppliers
examine strategies used by organisations to develop
and maintain effective supplier relationships
devise effective systems for vendor appraisal
determine suitable strategies with regard to
relationships with suppliers in line with
organisational policies
recommend make-or-buy decisions in given
situations
identify and assess techniques for the purchase of
capital goods
3 Explain how an organisation
ensures that the regular
quantities and quality of
goods (inventory) and
services are purchased
describe how negotiations with suppliers are
conducted to obtain goods or services at acceptable
costs
propose channels of distribution for the transport of
two different types of goods
assess the procedures used by an organisation to
ensure the security of goods and safety of
organisational personnel
describe how negotiations are carried out with
external parties to ensure that goods/services are
purchased to budget

303

the ability to:
4 Explain the role of the major
national and transnational
organisations and agencies
which influence international
purchasing
assess the influences on purchasing activities of the
major national and transnational organisations
investigate methods used by two different
organisations to develop relationships with foreign
supplies
explain the role and services provided by specialists
in international purchasing
assess the advantages and disadvantages of global
sourcing strategies
describe how corporate social responsibility
initiatives have affected purchase-supplier
relationships

304
Guidance

Delivery
It is anticipated that this unit would normally be delivered as a stand-alone unit. There are some
opportunities for linking parts of the unit with those identified above. Links could be developed
in the form of integrated assignments but care is needed in designing such assignments to ensure
they are realistic.
The use of speakers from purchasing functions in outside organisations is recommended as a
means of providing examples of approaches adopted by different types of organisations
including those involved in global sourcing.
Assessment
Evidence of outcomes may be in the form of written or oral assignments/tests.
The assignments may be based around investigations into actual business organisations or case
study material. Learners working in a purchasing/supply function in an organisation could base
assignment work around their workplace.
Evidence is likely to be produced at outcome level. Evidence could include individual or group
assignments. Time-constrained assessment based upon case study material could also be
included.
Links
There are no direct links with other units. Aspects of this unit link with the following units: Unit
1: Marketing, Unit 2: Managing Financial Resources and Decisions, Unit 3: Organisations and
Behaviour, Unit 6: Business Decision Making, Unit 9: Management Accounting: Costing and
Budgeting and Unit 10: Financial Reporting.
There are also links with Procurement NVQ level 4, especially with Units 018 Develop the
effectiveness of procurement operations, 019 Determine conditions in the market for supplies,
020 Establish and maintain strategic sourcing arrangements, 022 Establish supplier status and
secure improvements in supplier performance, 027 Administer the contract, 037 Plan and
reconcile inventory and materials requirements and capacity and 039 Capture and forecast
demand.
Resources
Texts should be supported by the use of case studies and, as far as possible, access to the
purchasing section of local organisations. For those part-time learners working in the purchasing
area their experience of work should be made use of in comparing approaches adopted.
Support materials
Textbooks
Bailey/Farmer/J essop and J ones Purchasing Principles and Management
(Pitman, 1994)
Greaver M Strategic Outsourcing: Risk Management, Methods and Benefits (Amacom,
1999)

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J essop and Morrison Storage and Supply of Materials (Pitman, 1991)
Lysons K Purchasing (Pitmans, 1966)
Saunders M Strategic Purchasing and Supply Chain Management (Pitman/Institute of
Purchasing & Supply, 1994)
Walker D Procurement Strategies: A Relationship-based Approach (Blackwell Science,
2002)
Journal
Journal of the Chartered Institute of Purchasing and Supply
Websites
Websites can be useful in providing information and case studies.
www.hq.nasa.gov/office/procurement provides an insight into a large procurement
operation (NASA)
www.pd.dgs.ca.gov/default.htm provides an insight into a large procurement
operation (the State of California)
http://sourcinginterests.org/fbpo.htm covers a large American purchasing
consortium

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307
Unit 41: Purchasing Development
Learning hours: 60

Description of unit
The aim of this unit is to develop underpinning knowledge and understanding which might lead
to enhanced skills in the field of service or inventory procurement and supply chain
management. It encourages learners to recognise the changing and developing role of
purchasing as a strategic activity, its contribution to overall organisational objectives. This units
extends the basic understanding of the purchasing function developed within Unit 37:
Purchasing and allows learners to apply this knowledge analytically, identifying opportunities
for improving existing procurement systems. This unit also enables learners to take account of
the importance and potential of e-commerce.
1 Demonstrate an understanding of the key role of the purchasing system as an integrated
part of the overall development of organisational strategy
2 Evaluate the current and future effectiveness of an identified purchasing operational
system
3 Propose viable changes to a purchasing system to secure increased effectiveness
4 Explain, with examples, the impact of e-commerce on the purchasing system identifying
the advantages and disadvantages.

308
Content

1 Purchasing system
Purchasing: as a service function, purchasing as a proactive activity; requirements of user
group
Purchasing systems: supplier product database, vendor evaluation and rating, supplier
quality approval, requisitioning and ordering, stores and stack control
Purchasing strategy and planning: the relationship of purchasing to corporate objectives,
relationship of procurement to strategic development, the development of the concept of
Commercial issues: financial, supply market conditions, legal, contractual; impact on
organisational plans, short term, long term; analysis and re-evaluation or emerging
commercial priorities
Supply market issues: market structure, stability, security; impact of changes in technology
and processes
Planning timescale: impact on business forecasts, corporate objectives, risk versus return,
available resources
Information requirements: sources business plans, records, colleagues, suppliers; validity
and reliability, relevance to timing requirements, trends and developments
2 Current and future effectiveness
Testing: need for co-operation form users and system specialists, system specification,
failures to meet specifications
Effectiveness: evaluation of supply market issues, alternative commercial strategy options
Criteria: costs, benefits, risks, added value, relationships with supply market
Future: market changes affecting supplies, inventory and materials requirement changes,
demand changes, storage capacity
3 Increased effectiveness
Types of improvement: cost-effectiveness, usability, ability to provide required outputs,
adaptability to change, reduction in difference between planned and actual performance
Improvement opportunities: procurement requirements, organisational objectives,
organisational competitiveness, strategic sourcing, supplier performance, contract
management, demand forecasting
4 Impact of e-commerce
Advantages: cost-savings, purchasing system improvements, reduced personnel
requirements, time saving, increased effectiveness, information gathering, supplier sourcing,
performance monitoring
Disadvantages: supplier relationships, direct control, ability to inspect

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the ability to:
1 Demonstrate an understanding
of the key role of the
purchasing system as an
integrated part of the overall
development of organisational
strategy
explain how procurement systems are specified,
designed and integrated
describe commercial issues arising from
organisational business plans and their impact on the
purchasing function
identify the objectives of purchasing operations and
explain how these support strategic organisational
objectives
2 Evaluate the current and
future effectiveness of an
identified purchasing
operational system
evaluate supply market issues against current and
future requirements of an organisation
identify threats and opportunities arising from
market changes and developments affecting supplies
and sources
describe the objectives of the purchasing operation
within the organisation
review the effectiveness of the purchasing operation
against its objectives
3 Propose viable changes to a
purchasing system to secure
increased effectiveness
propose changes to improve the effectiveness of a
purchasing operation
explain the benefits that will result from the
proposed changes in order to justify the proposals
identify any risks associated with implementation of
the proposals
4 Explain, with examples, the
impact of e-commerce on the
purchasing system identifying
the advantages and
disadvantages
describe how e-commerce has impacted upon the
purchasing operations of two different organisations
assess and explain the beneficial results that have
arisen from the use of e-commerce by one
organisation
identify and explain actual or potential
disadvantages arising from the adoption of e-
commerce for an organisation

310
Guidance

Delivery
It is anticipated that this unit would normally be delivered as a stand-alone unit. There are some
opportunities for linking parts of the unit with those identified above. Links could be developed
in the form of integrated assignments but care is needed in designing such assignments to ensure
they are realistic.
The use of speakers from purchasing functions in outside organisations is recommended as a
means of providing examples of approaches adopted by different types of organisations
including those involved in global sourcing.
Assessment
Evidence of outcomes may be in the form of written or oral assignments/tests.
The assignments may be based around investigations into actual business organisations or case
study material. Learners working in a purchasing/supply function in an organisation could base
assignment work around their workplace.
Evidence is likely to be produced at outcome level. Evidence could include individual or group
assignments. Time-constrained assessment based upon case study material could also be
included.
Links
There are no direct links with other units but some aspects of this unit link with the following
units: Unit 1: Marketing, Unit 2: Managing Financial Resources and Decisions, Unit 3:
Organisations and Behaviour, Unit 6: Business Decision Making, Unit 9: Management
Accounting: Costing and Budgeting and Unit 10: Financial Reporting.
There are also links with Procurement NVQ level 4, especially with Units 013 Establish and
improve procurement systems, 017 Provide commercial input to decision-making, 018
Develop the effectiveness of procurement operations, 019 Determine conditions in the market
for supplies, 021 Establish and evaluate current and future requirements for supply, 022
Establish supplier status and secure improvements in supplier performance, 028 Improve
contract performance, 039 Capture and forecast demand and 041 Optimise inventory levels.
Resources
Texts should be supported by the use of case studies and, as far as possible, access to the
purchasing section of local organisations. For those part-time learners working in the purchasing
area their experience of work should be made use of in comparing approaches adopted.

311
Support materials
Textbooks
Bailey/Farmer/J essop and J ones Purchasing Principles and Management (FT Prentice Hall,
1996) ISBN: 0273623818
Burt/Dobler and Starling World Class Supply Management 7th Edition (McGraw Hill, 2002)
ISBN: 0071124381
Greaver M Strategic Outsourcing: Risk Management, Methods and Benefits (Amacom,
1999) ISBN: 0814404340
J essop and Morrison Storage and Supply of Materials (FT Prentice Hall, 1994)
ISBN: 027360323x
Lysons and Gillingham Purchasing and Supply Chain Management 8th Edition (Prentice
Hall, 2002) ISBN: 02736576x
Lysons K Purchasing Framework (FT Prentice Hall, 1998) ISBN: 0273634224
Saunders M Strategic Purchasing and Supply Chain Management (FT Prentice Hall, 1997)
ISBN: 0273623826
Turban et al Electronic Commerce 2002: A Managerial Perspective (Prentice Hall, 2003)
ISBN: 0582821894
Walker D Procurement Strategies: A Relationship-based Approach (Blackwell Science,
2002) ISBN: 0632058862
Journal
Journal of the Chartered Institute of Purchasing and Supply
Websites
Websites can be useful in providing information and case studies.

www.asite.com/a3/uk/DocumentLibrary/Purchasing.pdf provides an example of a UK construction
industry purchasing system
www.hq.nasa.gov/office/procurement provides an insight into a large procurement
operation (NASA)
www.iolt.org.uk/sig/scimglossary.htm a glossary of inventory and materials
management jargon
www.ism.ws/ResourceArticles/Proceedings/2002/Bendo
rfDC.pdf
Proceedings of Purchasing Fitness Review
conference 2002
www.libraco.co.uk/whitepaper.pdf supply chain management and e-procurement
www.pd.dgs.ca.gov/default.htm provides an insight into a large procurement
operation (the State of California)
http://sourcinginterests.org/fbpo.htm covers a large American purchasing
consortium
www.supplychainconsultants.co.uk an example of a consultancy firm operating in
the area of purchasing and procurement
system improvement
312

313
Unit 42: Quality Management
Learning hours: 60

Description of unit
The aim of this unit is to enable learners to understand the concept of quality and quality
management and define it in the context of business and services operations. Learners will
investigate the major quality schemes and evaluate these in terms of the benefits to the
organisation and to the customers they serve.
This unit is common to more than one Higher National qualification. Learners must ensure that
their evidence relates to the programme they are undertaking.
1 Examine the concept of quality management in a business and services context
2 Investigate four different quality management schemes appropriate to commercial
operations
3 Explore a range of quality controls and assess their benefits to the customer
4 Apply principles of quality management to improve the performance of an organisation.

314
Content

1 Concept of quality management
Define quality: identifying and providing systems to meet/exceed customer
needs/expectations, notion of self-assessment to establish the current position of an
organisation, aims and objectives, areas for improvement, staff training needs, planning for
continuous improvement
Customer satisfaction: understanding the customer, needs and expectations, responding to
customer demand, meeting or exceeding expectations, value for money, added value and
repeat custom
Measurement of quality: systems documentation, procedures for all operations, evaluating
own procedures, comparisons with past performance/future plans (business aims and
objectives), competitors, industry standards, priorities for action, benchmarking
Context: eg hospitality and catering, sports and leisure, travel and tourism, hairdressing and
beauty therapy
2 Four different quality management schemes
Rationale: orientation/emphasis of approach, eg ISO 9002, EFQM, Quest, Chartermark,
Citizens Charter, IIP
Organisations: inter-relationships between systems/staff/customer, appropriateness of each
to commercial operations
Similarities and differences: structures of schemes, applications, costs, implementation
periods, use of documentation, application of standards, identification of actions required,
assessment methodology, orientation towards customer/staff or organisation, effectiveness
as a means to improve service quality
Communication and record keeping: importance of communication across whole
organisation (vertical/horizontal), establishing agreement through consultation, notifying
actions required, currency, accuracy and relevance of records kept, comparison with
historical data, similar organisations elsewhere, industry standards, record keeping
3 Quality controls
Customer information: opening times, location, price lists, facilities, activities, staffing
levels, promotional material, raising awareness, creating true image, targeting all groups,
conveying value for money?
User and non-user surveys: profile of users, regularity of visits, spend/visit, facilities used,
likes, dislikes, preferences, suggestions, complaints
Profile of non-users: majority group, reasons for non-use, expectations/perceptions of
service, barriers to access, action required, encouraging and converting non-users
Consultation: questionnaires (distributed internally/externally), suggestion schemes,
complaints procedures, focus groups, open meetings, blanket maildrop, targeted maildrop,
direct approach to group leaders and groups

315
Complaints: distribution of forms (send out/collect), internal/external, framing questions,
customer friendly/IT friendly, easy to analyse, areas for improvement, response time, period
for remedial action, communication with complainants, measurement of customer
satisfaction
4 Principles of quality management
Self-assessment: validity of self-assessment, eg subjective, bias, one dimensional;
judgement based on current practice, comparison, eg with past performance of organisation,
against competition, against benchmarks for future; comparisons with similar
organisations/industry standards
Staff consultation: setting the scene, explaining rationale (objective of quality scheme),
processes involved, requirements and commitment from staff, communication and reporting
mechanisms, keeping team updated and engaged, implementation, feedback and review
Service improvements: application of concepts, documentation, administrative processes for
communication, applying standards, monitoring, action on improvements, performance
indicators, response times, feedback and review

316

the ability to:
1 Examine the concept of
quality management in a
business and services context
define quality in terms of businesses and services
provision
define quality in terms of customer satisfaction
explain how quality management can be measured
2 Investigate four different
quality management
schemes appropriate to
commercial operations
describe the rationale underpinning four quality
schemes commonly adopted by commercial
operations
identify the main similarities and differences
between four quality management systems
explain the importance of communication and record
keeping in quality schemes
3 Explore a range of quality
controls and assess their
benefits to the customer
assess the information made available to customers
and the importance given to effective marketing
evaluate the benefit of user and non-user surveys in
determining customer needs
examine the methods of consultation employed in
one quality scheme to encourage participation by
under-represented groups
investigate the value of complaints procedures at
two different centres and analyse how each is used
to improve quality
4 Apply principles of quality
management to improve the
performance of an
organisation
identify the role of self assessment in order to
determine an organisations current state of health
explain the stages of staff consultation necessary for
effective implementation of a quality scheme
propose new systems or modifications to existing
systems that could improve service quality

317
Guidance

Delivery
This unit should be delivered as a stand-alone unit though some underpinning knowledge for it
is provided by Unit 3: Organisations and Behaviour. It is, therefore, recommended that this unit
is delivered after the option unit to provide a logical progression and prepare learners to develop
their knowledge base before investigating issues around quality.
This unit requires a considerable amount of research and guided reading will be an integral part
of the delivery. Considerable information can be accessed on the web and through published
literature. It is also important that learners have the benefit of site visits to assess for themselves
the application of quality management in kite marked centres.
The unit could be delivered by other inputs including: lead lectures, case studies, group work
(eg a quality circle) and discussion.
Assessment
Assessment could be of a formative or summative nature allowing learners either to build upon
the principles of quality and quality management and apply these to local commercial
operations or carry out a thesis/project approach to the whole unit. Assessments should be
planned to allow learners to visit centres that are quality assured (ie they have a quality
kitemark) and assess the effectiveness of the scheme for themselves.
There is scope to combine assessments across all the unit outcomes by adopting a major project
approach (summative format) or assess each unit outcome separately (formative format).
Combined assessments could also provide opportunities for learners to work in groups and
evidence for the final assessment could be provided (at least in part) by a group presentation. In
doing so learners could also demonstrate the key skill of interacting with groups.
Other assessment instruments that would be appropriate to this unit include case studies, reports
and individual presentations.
It is strongly recommended that when learners are delivering presentations, they have access to
the latest technological equipment, eg laptop computers, LCD projectors, presentation software.
Links
The unit has been designed to complement the endorsed titles on the HN Business programme.
Understanding gained in Unit 6: Business Decision Making will help learners appreciate control
charts and other statistical techniques for improving quality.
Resources
Examples of quality management manuals, policies and strategies will support learners work.
Case studies at this level will need careful preparation and management. There are numerous
examples of case studies focusing on business excellence in the public domain, frequently
through appropriate journals.
Learners should be encouraged to read the trade and specialist press and associated websites
regularly. They should also have full access to the internet for research purposes.
318
Support materials
Textbooks
reference purposes only. There is a range of general textbooks relating to business excellence
and quality management, including the following.
Banks J The Essence of Total Quality Management (Prentice Hall, 1993)
ISBN: 013284902X
Bell D Managing Quality 2nd Edition (Butterworth Heinemann, 2001) ISBN: 0750648376
Bendell T The Benchmarking Workout (Financial Times Management, 1997)
ISBN: 0273626353
Brown M Baldridge Award Winning Quality: How to Interpret the Baldridge Award Criteria
10th Edition (ASQC Quality Press, Milwaukee, 2000) ISBN: 1563272326
Camp R Global Cases in Benchmarking (McGraw Hill, 1998) ISBN: 0873893883
Chang R and Kelly P Improving Through Benchmarking A Practical Guide to Achieving
Peak (J ohn Wiley & Sons Ltd, 1999) ISBN: 078795084X
Fitzsimmons J and Fitzsimmons M New Service Development: Creating Memorable Service
Experiences (Sage, 2000) ISBN: 0761917411
Huxtable N Small Business Total Quality (Chapman & Hall, 1995) ISBN: 0412602709
J uran J Jurans Quality Handbook 5th Edition (McGraw-Hill, 1998) ISBN: 0071165398
Kandampully J /Mok C and Sparks B (editors) Service Quality Management in Hospitality,
Tourism, and Leisure (Haworth Hospitality Press, 2001) ISBN: 0789011417
Kunst P and Lemmink J Managing Service Quality, Vol. III (Chapman & Hall, 1997)
ISBN: 1853963623
Lockwood A/Baker M and Ghillyer A Quality Management in Hospitality (Cassell, 1996)
ISBN: 0304334855
Oakland J Total Organizational Excellence: Achieving World Class Performance Revised
Edition (Butterworth Heinemann, 2001) ISBN: 0750652713
Zairi M Benchmarking for Best Practice (Butterworth Heinemann, 1998) ISBN: 0750639482
Videos
Examples of video materials include:
BBC Learning Zone
Journals, magazines and other publications
Benchmarking: An International Journal
Benchmarking for Management and Technology
Business Process Management Journal
Managing Service Quality
Total Quality Management

319
Websites

Learners should be encouraged to consult a wide range of commercial websites to support the
evidence they develop for this unit.

320

321
Unit 43: Small Business Enterprise
Learning hours: 60

Description of unit
The unit is primarily designed for learners who are interested in small business enterprises and
looks at the development and expansion of such businesses. The unit will be particularly
appropriate for Higher National Certificate learners who are involved in small business
enterprises. The unit draws together many of the topics covered in other units and allows
learners to practise the business skills required in a small business.
1 Investigate performance of a selected small business enterprise
2 Propose changes to improve management and business performance
3 Revise business objectives and plans to incorporate proposed changes
4 Examine the impact and management of change in the business operations.

322
Content

1 Investigate performance
Business profile: components of the business, objectives of the business, internal and
external factors affecting business performance, performance measures, constraints and
restrictions on business, responsibilities and liabilities of owner-manager
Comparative measures of performance: comparisons with other similar-sized businesses in
same geographical area, comparisons with businesses in same or similar industry,
comparisons with industry averages; comparisons should cover all areas financial,
production, marketing, sales, human resources, use of technology
Analysis of business information: analysis of past and current business information
financial, marketing information, sales, production, human resource efficiency, management
effectiveness using ratios, budget information, market research results, SWOT analysis,
business reports eg production efficiency
2 Improve management and business performance
Overcoming weaknesses: problem-solving strategies, sources and availability of
professional advice in appropriate areas, finding solutions and alternatives, availability and
use of outsourcing for specific functions eg payroll, debt collection
Maintaining and strengthening existing business: maintaining appropriate performance
records, building on business strengths, maintaining market share/position, importance of
good customer/supplier/advisor relationships
New opportunities: identifying areas for expansion eg niche markets and export
opportunities where appropriate, research techniques, evaluating projects, assessing project
requirements, costing and finding finance for new projects, risk assessment
Evaluation of management and personnel: skills audit, self-evaluation, development of self
and associated personnel, assessing costs and benefits of self and staff development
3 Business objectives and plans
Business objectives: structure of business objectives, assessment of business objectives in
the light of current performance, making changes to business objectives, impact of changes
on business plans
Business plans: structure of integrated business plans (financial, sales and marketing,
production/output, personnel), use of business plans, evaluation of plans against business
objectives, incorporating changes to plans, budgeting for changes, preparation of business
forecasts
Action plans: plans to implement changes, systems to manage, monitor and evaluate
changes, performance measures, milestones, setting deadlines

323
4 Impact and management of change
Impact of change: effects of change on all areas of business finance, workloads, morale,
job roles, physical aspects eg office space, production methods; use of technology,
anticipating possible obstacles/problems
Management of change: monitoring effects of change, maintaining systems and records to
evaluate impact of change, appropriate revision of plans in response to actual results

324

the ability to:
1 Investigate performance of a
selected small business
enterprise
describe the profile of a selected small business
review and analyse the performance of the business
identify strengths and weaknesses of the business
2 Propose changes to improve
management and business
performance
recommend appropriate actions required to
overcome the weaknesses identified
investigate ways in which existing performance
could be maintained and strengthened
suggest new areas in which the business could be
expanded, justifying suggestions
3 Revise business objectives
and plans to incorporate
proposed changes
review existing business objectives and plans
revise business plans to incorporate appropriate
changes
prepare action plans to implement changes
4 Examine the impact and
management of change in
the business operations
assess the impact of changes on the business and
associated personnel
explain how the implementation of changes will be
managed in the business
monitor improvements in business and management
performance over a given timescale

325
Guidance

Delivery
Learners should be exposed to a variety of case studies to gain coverage of different aspects of
small business management and development. They will need to be able to identify the specific
problems that a smaller business can face and find workable solutions to ensure continuation of
the business.
Assessment
Evidence of outcomes may be in the form of assignments, investigations of specific small
business organisations or analysis of case studies. Some Higher National Certificate learners
may be in a position to use their own employment as a basis for the course. Family businesses
may also provide opportunities for generating evidence.
Links
The unit is intended to give an understanding of the development processes in established small
businesses. The unit links with all core units which provide a useful background to the functions
of a business.
The unit covers some of the underpinning knowledge and understanding for the NVQ level 4 in
Owner Management Business Management and Development.
Resources
Some Higher National Certificate learners may be able to use their own experience of small
business as a basis for work on the course. Higher National Diploma learners will need to be
given realistic case studies.
Local government reports and statistics relating to small businesses are available in most public
libraries.
The Open University Business School Small Business Programme publications provide a series
of titles covering accounting and finance, product development and marketing, and human
resource management and recruitment. Each publication provides knowledge and case study
examples. In some cases a video or audio tape is also available. Contact the Open University for
details.
There are a few open learning packages that have been written to support the NVQs in small
business management and development. Contact the Small Firms Lead Body for details of
current approved publications.
Support materials
Textbooks
Most books are self-help guides for people in business published by various banks.
Williams S Lloyds Bank Small Business Guide (Penguin Books, published annually)
326
Websites
www.dur.ac.uk/dubs/sbc/sbc.htm Durham University Small Firms Business
Centre
www.richmis.demon.co.uk/business a links page giving websites with information
relating to UK small business

327
Unit 44: Operations Management
Learning hours: 60

Description of unit
The aim of this unit is to enable learners to grasp an understanding of the operations function
within an organisation. They can then develop this knowledge to include elements of product
and job design, planning and control and methods for improvement.
1 Examine the operations function
2 Understand the importance of strategic operations management
3 Examine the organisation of the operations process
4 Understand how planning and control are used in operations.

328
Content

1 Operations function
Operations management: basic definitions, various types of operations, tasks of operations
managers
Context of operations management: the focus of operations management, how operations
management interlinks with other functions
Importance of operations management: the key environmental factors affecting operations
management, value chain analysis, five performance objectives
2 Strategic operations management
Operations strategies: macro and micro operations, internal influences on operations,
external influences on operations
The process of operations strategy: operations management as a transformation process, the
importance of the five performance objectives
Operations strategy decisions: strategic importance of operations management, content of
operations management strategies, decision areas in operations management
3 Organisation of the operations process
Design objectives: environmental sensitivity of design, process types in manufacturing and
services
Product and service design: design and competitive advantage, process organisation,
designing for production, design evaluation, prototyping, interactive design
Networking and the operations layout: the network prospective, long-term capacity
management, types of layout, designing the layout
Design and work measurement: objectives of job design, approaches to job design,
empowerment, role of process technologies, work measurement
4 Planning and control in operations
Capacity planning: nature of demand and supply, volume and variety effects, measuring
demand and capacity, operations scheduling, choosing a capacity planning and control
approach
Inventory planning and logistics: stock control methods, benefits and costs of inventory
control, physical distribution management, supply chain management, concepts of
integration
Further inventory and production control techniques: MRP, optimised production
technologies, the philosophy of J IT, hybrid systems
Project management and quality control: what is project management, network planning,
why quality is important, measurement of quality, control of quality, quality improvement,
international standards

329

the ability to:
1 Examine the operations
function
define operations management
explain the focus of operations management
identify the key environmental factors affecting
operations management
2 Understand the importance of
strategic operations
management
discuss differing operations strategies
analyse and evaluate an operations strategy
appropriate to a given situation
identify the strategic importance of operations
management in the decision-making process
3 Examine the organisation of
the operations proc
identify the key factors affecting the design of
products or services and possible benefits to be
gained from good design
discuss possible layouts for a given situation
explain the different perceptions of work
measurement
4 Understand how planning
and control are used in
operations
analyse a given situation and select a capacity
planning and control approach for a given situation
discuss various methods of inventory planning and
the likely costs and benefits
identify approaches used for project management
and quality control

330
Guidance

Delivery
This unit is best taught using a case study approach. Wherever possible, a link should be made
between the academic underpinning knowledge and its practical application. This could be
achieved via a tutor-developed case study, a case study taken from a recent publication (which
may need consent from the author) or an evaluation of a local organisation. Outside speakers
and visits to organisations could be used where appropriate to give practical examples of
operations management.
Books available on this topic often have mini-case studies for classroom discussion. Thus the
class can be taught by a tutor-led explanation of the theories and how they may be applied
followed by a learner-led discussion of how the theories have been applied in the relevant case
study.
Assessment
Assessments should ideally be based on real-life case studies. Ideally two assessments will be
necessary to cover all four outcomes, although it may be possible to cover some criteria in a
classroom situation. To achieve a merit in this unit a learner should, in individual work research
the information required using a variety of methods, apply different models and theories to the
analysis of the data and show an understanding of the application of those models. For a
distinction a learner would be expected to show evaluation and synthesis of these models and
theories and be able to communicate the ideas coherently.
Links
This unit has particular links to Unit 7: Business Strategy. The two units are best taught
alongside each other.
Support materials
Textbooks
Brown S et al Strategic Operations Management (Butterworth Heinemann, 2000)
ISBN: 0750642572
Galloway L et al Operations Management in Context (Butterworth-Heinemann, 2000),
ISBN: 07506 42807
Heizer J and Render B Operations Management (Prentice Hall, 2003)
ISBN: 013018604X
Slack N et al Operations Management (Pitman, 2000) ISBN: 0273626884
Waller D L Operations Management A Supply Chain Approach (Thompson, 1999)
ISBN: 1861524153
The Financial Times and other quality newspapers
Trade journals as appropriate

331
Videos
Business Studies
Managing Projects
Managing Resources for the Market
The Business series
Trouble shooter series
Other business programmes
Websites
www.emerald-library.com/EMR Emerald, publishes journals in management,
and information services
www.ft.com The Financial Times website

332

333
Unit 45: European Business
Learning hours: 60

Description of unit
In this unit learners will focus on how EU membership impacts on the UK and organisations
located in the UK. The unit will focus on the EU as a dynamic and evolving influence.
1 Evaluate the significance of EU membership to the UK economy
2 Examine the implications of EU enlargement
3 Develop a strategy for a UK-based organisation to extend its operations in the EU
market
4 Discuss the significance of current developments within the EU.

334
Content

1 Significance of EU membership to the UK economy
Significance: history of the development of the EU, the nature of the EU as a customs
union, the development of the major institutions and policies of the EU, the Euro, its
development and significance
2 Implications of EU enlargement
Implications of enlargement: the attractions of gaining EU membership, planned pathways
for the development of the EU and the rationale for enlargement, in particular the
significance in terms of market extension and increasing competition
3 Strategy for a UK-based organisation to extend its operations in the EU market
Strategy: identification of major markets within the EU and trends within them,
identification of the significance of EU directives and laws, exploring different ways of
doing business in different markets
4 Significance of current issues and debates within the EU
Current issues: issues connected with major current issues and developments within the EU
with regard to such areas as competition policy, monetary policy, agricultural policy,
employment policy, economic policy

335

the ability to:
1 Evaluate the significance of
EU membership to the UK
economy
identify the major advantages and disadvantages of
EU membership to the UK economy
explore one area of economic activity in the UK
which EU membership has and does affect
discuss how EU institutions can benefit a UK
organisation
2 Examine the implications of
EU enlargement
explore the attraction of EU membership to potential
members
discuss the possible enlargement of the EU and the
factors impacting on such possible enlargement
assess how enlargement of the EU may affect UK
business in general and a specific organisation in
particular
3 Develop a strategy for a UK-
based organisation to extend
its operations in the EU
market
analyse the potential held by EU markets for a
specific organisation
produce a plan mapping out how this organisation
would go about developing its operations into the
market opportunities identified
analyse the significance of EU directives and laws to
a specific organisation
4 Discuss the significance of
current developments
within the EU
discuss the key current debates within the EU and
their significance to the UK
explain the general significance of one current
issue/debate within the EU
analyse the significance of this current issue/debate
to a specific UK-based organisation

336
Guidance

Delivery
Much of the content in the unit lends itself to active methods of delivery and learning. Contact
with organisations who trade in Europe can form a useful source of material and speakers from
such organisations could explain the practical problems in assessing markets in the EU.
Assessment
Evidence of outcomes is likely to be obtained from tutor-designed assignments. Learners in
employment may well be able to draw on the experiences and knowledge that lies within their
employing organisations.
Links
This unit is likely to link with Unit 4: Business Environment, Unit 28: European Law, Unit 29:
Introduction to Internet and E-Business, Unit 30: Internet Marketing, Unit 31: E-Business
Operations and Unit 32: E-Business Planning and Implementation.
Support materials
Textbooks
Bainbridge T The Penguin Companion to the EU (Penguin, 2002) ISBN: 0141007699
Furse M Competition Law of the UK and the EC (OUP, 2003) ISBN: 0199258805
McCormick J Understanding the EU (Palgrave, 2000) ISBN: 033394867X
Peterson J Institutions of the EU (OUP, 2001) ISBN: 0198700520
Temperton P The UK and the Euro (Wiley, 2001) ISBN: 0471499552
Coverage of EU matters features strongly in all broadsheet newspapers.
The Economist remains a good source of coverage.
Websites
www.cec.org.uk the European commission in the UK
http://europa.eu.int the EU online site
http://eurparl.eu.int The European Parliament
www.eurunion.org/infores/resguide.htm US site on the EU
www.lib.Berkeley.edu/GSS/eu.html links to many EU resources
http://ue.eu.int the council of the EU

337
Unit 46: Employment Law
Learning hours: 60

Description of unit
This unit develops the knowledge and skills required to analyse and apply those legal provisions
which are concerned with the employment relationship and individual employment rights. Both
UK and European sources of employment law are examined, along with the institutions and
systems concerned with enforcement. Learners will develop an understanding of the nature and
scope of the employment relationship in its legal and business context. There will be a particular
focus on the creation, content, application and termination of employment contracts. The unit
also considers the impact on the employment relationship of the developing law in the areas of
discrimination, human rights, and data protection.
1 Explain the sources, institutions and enforcement systems for individual employment
rights
2 Examine the nature and scope of the employment relationship in its legal and business
context
3 Evaluate the legal provisions concerned with discrimination and health and safety in a
legal and business context
4 Examine the impact on the employment relationship of the developing law in the areas of
human rights and data protection legislation.

338
Content

1 Sources, institutions and enforcement systems
Sources of employment law: UK primary and secondary legislation, European, union
directives and regulations, decided cases
Institutions and enforcement systems: courts and tribunals, ACAS, the commissions for
racial equality, equal opportunities and disability rights, available remedies for individuals
to enforce their rights
2 Nature and scope of the employment relationship
Employees and independent contractors: tests used to make this distinction, vicarious
liability, cases illustrating problem areas
The contract of service: content and layout, basic contractual principles and the difference
between express and implied terms, the nature and scope of these terms for both employer
and employee
Impact of European Union legislation: working time, time off rights, and protection of
wages, appropriate policies and procedures for employers
Termination: reasons other than dismissal, notice periods
Dismissal: wrongful, unfair and constructive; redundancy
3 Legal provisions concerned with discrimination and health and safety
Discrimination: the continuing development of anti-discrimination law, groups who are
protected by law and those who remain disadvantaged, direct and indirect discrimination,
the issue of positive promotion of equal opportunities and diversity in the workplace
Health and safety: common law, statutory provisions
4 Human rights and data protection legislation
The impact of human rights issues on the employment relationship: respect for private life
and freedom of belief and expression; data protection principles and the rights of data
subjects

339

the ability to:
1 Explain the sources,
institutions and enforcement
systems for individual
employment rights
explain the sources of employment law
evaluate the institutions and enforcement systems
for individual employment rights
2 Examine the nature and
scope of the employment
relationship in its legal and
business context
differentiate between employees and independent
contractors
explain the nature and scope of employment
contracts
evaluate the effect of European Union legislation on
the employment relationship
compare and contrast reasons and methods of
terminating the relationship
3 Evaluate the legal provisions
concerned with
discrimination and health
and safety in a legal and
business context
apply the legal provisions on discrimination to
particular cases
assess the relationship between the developing law
on discrimination and human resource management
practices
evaluate health and safety practice in a given
organisation and compare to best practice
4 Examine the impact on the
employment relationship of
the developing law in the
areas of human rights and
data protection legislation
discuss the impact on the employment relationship
of the legal provisions on human rights
apply the data protection principles and the rights of
data subjects to a given organisation

340
Guidance

Delivery
Active methods of learning such as group work, role play and presentation are to be encouraged.
The use of these methods will:
assist learners to develop the required level of legal knowledge and understanding
provide practice in both legal analysis and key skills
give opportunities to use a range of assessment methods.
Assessment
A number of methods of assessment could be employed in order to provide appropriate
evidence of the achievement of the required outcomes and assessment criteria. These methods
could include:
group work to examine case study material on the structure and content of employment
contracts
case study material requiring learners to analyse and apply anti-discrimination legislation in
a range of situations
an observed individual presentation on selected issues in employment law.
In terms of grouping outcomes for assessment, it is suggested that one assignment could cover
outcomes one and two, another assignment could apply to outcomes three and four. All
assignments could contain some consideration of institutions and enforcement systems, as they
relate to the particular rights under discussion.
Links
There is some scope for integrative assessment between this unit and Unit 21: Human
Resources Management. For example, a single assignment could cover assessment criteria in
both units in relation to termination of employment by dismissal and redundancy. Such an
assignment might also include a role-play of a hearing at an industrial tribunal. Links also exist
between Unit 5: Common Law I, Unit 27: Common Law II and Unit 28: English Legal System.
Resources
Learners need access to a specialist law library for key texts and law reports. The use of texts
should be supported by reference to broadsheet newspapers, relevant journals, specialist
publications and electronic databases.
Information can also be obtained from institutions such as the Commission For Racial Equality
and ACAS.

341
Support materials
Textbooks
Bell A C Nutshells: Employment Law (Sweet & Maxwell, 2003) ISBN: 0421793702
Bowers J Bowers on Employment Law 6th Edition (Oxford University Press, 2002)
ISBN: 0199254516
Harrison T Employment Law 5th

Edition (Harrison Business Publishing, 2003)
ISBN: 0807679994
General reading
Specialist employment law sources:
The Industrial Relations Law Reports
The regular Law at Work feature in People Management journal
More general sources which cover employment law matters:
The Independent
The Times and other law reports in the broadsheet press
General law journals:
The New Law Journal
The Modern Law Review
Websites
www.peoplemanagement.co.uk/law online magazine of the Chartered Institute of
Personnel and Development

342

343
Unit 47: Company Law
Learning hours: 60

Description of unit
The aim of this unit is to provide an introduction to company law. It focuses on company
formation and documentation, capital, debentures, meetings, shareholders, directors, minority
protection and dissolution. The unit develops the outline knowledge gained in Unit 25: English
Legal System.
1 Explore thenature of a company
2 Investigate the constitution of the company
3 Explore share capital and capital maintenance
4 Investigate shareholders, directors, charges and insolvency.
344
Content

1 Nature of a company
Classification: of corporations and of registered companies, separate legal personality
advantages and disadvantages, lifting the veil, civil/criminal responsibility, promoters and
pre-incorporation contracts, registration and re-registration, commencement of trading
2 Constitution of the company
Constitution: the memorandum of association, the articles of association, alteration, doctrine
of ultra vires and its effect, prospectus and listing particulars
3 Share capital and capital maintenance
Capital: types of capital, issue of shares, membership, class rights, transfer and disclosure
requirements, dividends, capital maintenance, insider dealing
4 Shareholders, directors, charges and insolvency
Shareholders and directors: types of meetings and resolutions, powers of directors,
management of the company, duties of the directors, statutory regulation, minority
protection, rights of shareholders and debenture holders, fixed and floating charges and their
registration, compulsory liquidation, voluntary winding up, assets and liabilities in
liquidation

345

the ability to:
1 Explore thenature of a
company
explain the concept of corporate personality and
lifting the veil, analysing the advantages and
disadvantages of incorporation
analyse the law on promoters and pre-incorporation
contracts
apply the requirements for registration and
commencement of trading
2 Investigate the constitution
of the company
apply the requirements for the contents of the
memorandum to a given scenario
discuss the requirements for the articles of
association
evaluate the doctrine of ultra vires and its effect
explain the contents of a prospectus and listing
particulars
3 Explore share capital and
capital maintenance
understand the different types of capital
apply the law on issue of shares, class rights and
dividends
discuss the law applicable to capital maintenance
and insider dealing
4 Investigate shareholders,
directors, charges and
insolvency
analyse the duties and powers of directors
apply the rules on the different types of meetings
discuss the law on minority protection
evaluate the rights of shareholders and debenture
holders
discuss rights in liquidation

346
Guidance

Delivery
It is anticipated that much of the material in this unit can be delivered actively through the use
of case studies and learner-centred learning both as small group and individual exercises.
The use of case studies can be used as both a means of encouraging individual and group
learning in addition to providing a vehicle for assessment.
Small group, tutor-led workshops can be used to develop the learners understanding of
individual outcomes and their conclusions may be used to develop their knowledge base.
centre-specific resources such as the posting of hand-outs, assignments and the use of other non-
centre devised electronic sources and materials.
Learners should be encouraged to undertake self-directed study and present their findings
during seminars and workshops. This may be particularly effective due to the number of
government internet sites particularly in relation to intellectual property and competition.
Wherever possible, a link should be made between academic underpinning knowledge and its
practical application through decided cases and the application of that knowledge to given
classroom tasks which may be discussion based, question and answer sessions or through tasks
which may be used within the context of learner assessment.
Typical class sessions will begin with an explanation of the relevant legal rules appropriate to
the outcome under study. This factual introduction may be followed by a learner-led discussion
on how the relevant legal rules were applied within decided cases. In some instances the learner
may be given a pre-prepared number of cases to read in advance of classes and then contribute
during the session in a manner appropriate to set classroom tasks. The learner may also be given
self-directed study handouts through which they present a seminar or lead a discussion on stated
outcomes.
mapping outcomes through the integration of assessed outcomes made up from other units.
Assessment
The assessment strategy should aim to encourage use of primary and secondary legal legislation
and the application of suitable common law principles to the outcomes.
Some aspects of the unit may be further explored through case studies which concentrate on
particular aspects of company law, or link several aspects together. Assessment of this unit can
be through individual and group assignments. These may be in the form of submitted reports,
written memoranda, business letters, and presentations. The presentations may be formal and
include electronic presentations using software such as Microsoft PowerPoint. Alternatively
presentations may be in the form of a moot or discussion, or learner-led seminar on an outcome
during which the learner, either individually or in a group, orally conveys assessment material
to the group.
Evidence may be produced by the learner at outcome level, although there exists opportunities
for the design of assignments that covers different outcomes. Resources such as class materials
or handouts may include case study material and which may be used in conjunction with
assessments made under time constrained conditions.

347
Alternative assessment methods may include peer assessment during for example, presentations,
seminars etc, multiple choice questions and in class open book timed assessments.
Links
This unit has links with Unit 5: Common Law I, Unit 25: English Legal System, Unit 26:
Business Law, Unit 27: Common Law II, Unit 28: European Law and Unit 46: Employment
Law.
This unit provides for the development of a solid understanding of the essential knowledge of
company law. It follows on from Unit 25: English Legal System, and develops the knowledge
gained therein on types of business entity, their formation, management and dissolution.
Resources
studying company law.
University of Warwick, and Seneca, a legal information service also on CD. (See Websites.)
Support materials
Textbooks
Barber S Company Law: Textbook (Old Bailey Press, 2001) ISBN: 1858563993
Brown I et al Commercial Law (Butterworth, 2000) ISBN: 0406024340
J udge S Business Law (Palgrave, 1998) ISBN: 0333747097
Mead L Practical Company Law: An Introductory Text (Elm Publications, 1995)
ISBN: 1854500511
Morse G et al Charlesworth & Morse Company Law (Sweet & Maxwell, 1999)
ISBN: 0421652608
Ottley M Briefcase on Company Law (Cavendish, 2002) ISBN: 1859416993
Rose F Nutshells Company Law (Sweet & Maxwell, 2001) ISBN: 0421738502
Smith and Keenan Advanced Business Law (Prentice Hall, 2000) ISBN: 027364601X
Newspapers
The Times
348
Websites
www.companies-house.gov.uk Companies House
www.competition-commission.org.uk Competition Commission
http://europa.eu.int The Court of J ustice of the European
Communities
www.european-patent-office.org European Patent Office
http://jurist.law.cam.ac.uk legal education network
www.lawtel.co.uk Lawtel legal information service
www.lexis-nexis.com Lexis Nexis provides legal information
www.patent.gov.uk The UK Patent Office

349
Unit 48: Administrative Practices and
Procedures
Learning hours: 60

Description of unit
This unit allows learners to develop and practise their knowledge, abilities and skills as
administrators or managers by examining the administrative functions within organisations. The
unit is about preparing and co-ordinating operational plans and is also about managing time
effectively and developing self to meet the needs of an organisation. The unit investigates the
roles and responsibilities of key people within the organisation helping to meet its objectives.
Learners will learn about ways in which events or activities are managed and will have the
opportunity to investigate and participate in the running of an event in which they will take a
major part in the management of a range of key resources. This is a practical unit which will
prepare learners either for progression to a higher level NVQ in Administration or a
management role in any kind of organisation whether large, medium or small.
1 Prepare, operate and evaluate an event or project utilising the appropriate skills and
resources required for the project or event
2 Demonstrate understanding of the skills and knowledge required in the effective
management and administration of an event or project
3 Describe and evaluate the need for teamwork and co-ordination in the event or project
being proposed and run
4 Utilise a range of business communication systems in managing the event or project to
ensure its successful completion.

350
Content

1 Prepare, operate and evaluate an event or project
Identification of the event or project to be run: kind of event, key people involved,
objectives and constraints, costs, likely problems involved, time required for event or
project
Preparing: pre-planning meeting to discuss proposals, flexibility, contingency plans,
allocating tasks and roles, critical path identification, estimating completion date
Monitoring: reviewing plans at appropriate times so that they can be updated to meet
changes in the working environment or objectives
Documentation despatch, storage and retrieval: internal and external, letters, memos, notes,
emails, advertising, agendas, reports and feedback, working notes, Data Protection Act
Resourcing: financial, human and physical, including refreshments, travel and
accommodation
2 Effective management and administration of a project or an event
Setting up tasks: responsibilities, co-ordination, negotiation, methods of communication
Estimating completion dates: planning techniques and tools available and how to choose
those which are appropriate to the situation, importance of realistic schedules and how to
identify these
Time management and prioritisation: planning and time management aids, how to deal with
interruptions, how to identify and prioritise outcomes
Proactivity: how to take the initiative, the importance of delegation, how to delegate
effectively
Supporting: the importance of communicating clearly, and of involving other people and
listening to their opinions and concerns
Supervising and monitoring: how to obtain valid and relevant information and assess
whether it is sufficient to monitor a project or event accurately
Evaluating: the need to assess progress, the range of corrective actions which can be taken,
the importance of continuously seeking opportunities for improvements and how to do so
3 Need for teamwork and co-ordination
Size of teams: optimum size needed for the task and method of working
Leadership: the importance of effective co-ordination and clear communication both orally
and on paper, how to identify the actions and resources needed to achieve agreed outcomes
Prior knowledge and skills of team players: how to identify roles and responsibilities
appropriately amongst relevant people
Group cohesion: ability to work together cohesively, team building

351
Conflict: how to diffuse anger, the importance of responding to criticism positively and how
to do so
Liaison with external teams or individuals: methods and regularity of communication, team
meetings
4 Business communication systems
Business documentation: letters, memos, reports, agendas, minutes
Information technology: emails, video links, mobile phones, applications software
Producing information: method, type of production and regularity

352

the ability to:
1 Prepare, operate and
evaluate an event or project
utilising the appropriate skills
and resources required for the
project or event
identify an event or project and justify choice
carry out the project within a specified time scale
and with the chosen resources
evaluate the success of the project including the
methods and resources used to complete it
2 Demonstrate understanding of
the skills and knowledge
required in the effective
management and
administration of an event
or project
set up the project, choose the completion date and
allocate responsibilities
demonstrate leadership, effective time management
and skills at prioritising and delegating
support and monitor the project
take corrective action if necessary to keep the
project on schedule
3 Describe and evaluate the
need for teamwork and co-
ordination in the event or
project being proposed and
run
choose the appropriately sized team with the
knowledge and abilities required for the project
demonstrate team building skills and how to diffuse
anger
show the importance of effective co-ordination and
clear communication when liaising with the team
identify the actions and resources needed to achieve
the success of the event or project
4 Utilise a range of business
communication systems in
managing the event or project
to ensure its successful
completion
keep clear records of communications both internal
and external and of team meetings
use information where applicable to aid the success
of the project
ensure that information is produced regularly and on
time

353
Guidance

Delivery
Delivery of this unit will focus on learners acquiring the practical skills involved in the
organisation of an event or project. Formal input will be required on project management, team
building and methods of monitoring and evaluating. Different types of business communication,
negotiation and presentation skills will need to be developed. Lectures, discussions, case
studies, videos and practice meetings can all be included in the learning experience.
Assessment
Experience of organising an event or project will be essential together with the production of all
the relevant documentation. Learners should take part in the organisation of an event or project
from the initial stage of choosing to the final stage of participating in the event or project. All
documentation created will need to be assessed.
Links
This unit links several of the concepts from the core units including Unit 2: Managing Financial
Resources and Decisions, Unit 3: Organisations and Behaviour and Unit 8: Research Project. It
will also complement specialist units such as Unit 58: Administrative Services.
Resources
Learners will need access to ICT when preparing their documentation.
Visits to libraries and access to other sources of data such as the internet will support this unit.
Support materials
Textbooks
Sufficient library resources should be available to enable learners to achieve this unit,
Andersen W Goal Directed Project Management (Kogan Page) ISBN: 0749426152
Brown M Successful Project Management (Hodder & Stoughton) ISBN: 0340705396
J efferson and Sealey Administrative Procedures for Higher Secretarial Diplomas
(Heinemann) ISBN: 0435455133)
Lock D Project Management (Gower Publishing) ISBN: 056608225X
Maylor H Project Management (Prentice Hall) ISBN: 0273655418
Nickson D Managing Projects (Made Simple Books) ISBN: 0750634715
Randolph Getting the Job Done (Managing Projects) (Prentice Hall) ISBN: 036162851
Journals
Managing People
Management Today
354

355
Unit 49: Financial Services
Learning hours: 60

Description of unit
This unit is designed to give learners a knowledge of the workings of the financial services
industry. Learners will learn about the financial needs of both individuals and businesses and
the financial services available to them. They will investigate the most appropriate sources of
finance for a variety of needs of both businesses and individuals. Learners will broadly
investigate the investment opportunities available to meet the different needs of individuals and
the different ways in which financial advice can be provided. They will also investigate the
various protection needs of individuals and businesses and how these can be provided.
Learners will also learn about the regulation of the financial services industry and the protection
available to their clients.
1 Explore the financial services required by individuals
2 Investigate the financial services available to businesses
3 Explore the role of different providers of financial services as a resource to individuals
and business
4 Assess the regulation of the financial services industry and the protection available to
customers.

356
Content

1 Financial services required by individuals
Finance: overdrafts, loans, credit cards, hire purchase, lease purchase mortgages; assessing
the costs of and suitability of different sources of finance for various business needs
Insurance: insurance of assets, life assurance and life assurance lifetime planning,
contingencies insurances eg personal accident, health; insurance of personal liabilities
Pensions: state, company, additional voluntary contributions (AVCs), personal and
stakeholder pensions
2 Financial services available to businesses
Short-term finance: overdrafts, loans, debt factoring, hire purchase and leasing
Long-term finance: share capital, venture capital, mortgages and long-term loans
Insurance: insurance of assets, insurance of liabilities, pecuniary insurances; assessing the
broad insurance needs of businesses and making recommendations appropriate to the
circumstances of businesses
3 Role of different providers of financial services
Financial services: banks, building societies, credit unions, debt factors, hire purchase
providers, leasing companies and other providers of loans; calculate APRs, venture capital
providers, merchant banks, the role and function of the Stock Exchange
4 Regulation of financial services industry and the protection available to customers
Regulation: the role of the Financial Services Authority (FSA) and an evaluation of the FSA
since it was created
Protection: the role and function of the ombudsmen, remedies in the event of corporate
failure

357

the ability to:
1 Explore the financial services
required by individuals
assess the suitability, implications and costs of
alternative sources of finance for different purposes
evaluate the investment opportunities available to
individuals, making recommendations
compare and contrast the main sources of financial
advice available to individuals
assess the broad insurance and assurance needs of
individuals
2 Investigate the financial
services available to
businesses
explain the financial services available to businesses
at various stages of development
identify and describe the main providers of financial
services to business
select appropriate sources of finance for different
situations, evaluate the costs of the alternatives and
consider other factors relevant to the choice of
source
3 Explore the role of different
providers of financial
services as a resource to
individuals and business
compare and contrast the main suppliers of financial
services to both individuals and businesses
compare and contrast the financial and non-financial
implications of alternative sources of finance for
different projects
4 Assess the regulation of the
financial services industry
and the protection available
to customers
describe the legal and regulatory control of financial
services
assess the remedies available in the event of failure
by providers of financial services
evaluate the role of the FSA over its life to date
evaluate the role of the ombudsmen

358
Guidance

Delivery
This will normally be a mixture of lectures and seminars. Learners will be required to work on
case studies and information from companies and compare alternative providers of financial
services.
Learners will need to read a broadsheet newspaper and keep up to date with economic financial
and company news.
Assessment
Evidence may be in the form of assignments, examinations or case studies. Learners will need to
produce information about financial services available from the main providers. They will also
compare the costs of alternative sources for different financial needs. This is a dynamic subject
and it is essential that learners keep abreast of news in the financial services sector.
Links
This unit links with Unit 2: Managing Financial Resources and Decisions, Unit 10: Financial
Reporting, Unit 12: Taxation, Unit 26: Business Law and Unit 51: Investment.
Support materials
Textbooks
Buckle M and Thompson C J The UK Financial System: Theory and Practice (Publisher,
1998) ISBN: 0719054125
Lowe J Be Your Own Financial Adviser (Which Books, 2002) ISBN: 0852028962
Mclaney E J Business Finance Theory and Practice (FT Prentice Hall, 2003)
ISBN: 0273673564
There are many titles on financial services. It is essential to read only up-to-date texts.
The Economist
Monthly Moneywise
Money Observer
The Times or The Financial Times and other good daily broadsheets
Weekly Investors Chronicle

359
Websites
www.bbc.co.uk/yourmoney BBC
www.fsa.gov.uk The Financial Services Authority
www.investorschronicle.co.uk Weekly Investors Chronicle
www.moneyfacts.co.uk best savings and borrowing rates for
individuals

360

361
Unit 50: Insurance
Learning hours: 60

Description of unit
This unit is designed to give learners a knowledge of how the insurance industry works.
Learners will learn about the concepts and principles of the industry and about the structure of
the insurance market and its practices. They will learn how the insurance industry helps meet
the protection needs of both individuals and businesses. Learners will also investigate the most
common or important services and insurances to meet a variety of individual needs.
Learners will also learn about the supervision of insurance, its regulation and how consumers
may be protected.
1 Examine the relationship between risk and insurance and the concepts and principles
upon which insurance is based
2 Explore the structure of the insurance market and the services and products it provides
3 Investigate the practices of the insurance industry in meeting the needs of and servicing
its clients
4 Assess the supervision of the insurance industry, its regulation and how consumers
may be protected.

362
Content

1 Relationship between risk and insurance and the concepts and principles upon which
insurance is based
Risk: meaning of risk, frequency and severity of risk, major types of risk, risk management
Insurance and risk transfer: self-insurance, what make a risk insurable, the functions of
insurance and the benefits of the insurance industry, the concepts of the insurance pool
equitable premiums
2 Structure of the insurance market and the services and products it provides
Structure of the market: insurance intermediaries, the different types and their
responsibilities as agents, the main types and categories of insurers, the distinctions between
them and how they are organised; Lloyds, mutuals and demutualisation, direct marketing,
insurance industry organisations, co-insurance and reinsurance
The services and products provided: risk management services, features and characteristics
of the main categories of commercial and personal lines insurances; combined and
comprehensive policies, compulsory insurances, insurance related services provided by the
market
3 Practices of the insurance industry in meeting the needs of and servicing its clients
How insurance is transacted: procedures by which insurance is sold, proposal procedures
and documentation, policies, forms, schedules, clauses and endorsements, exceptions and
conditions, cover notes and certificates of insurance, how insurance is transacted at Lloyds
Underwriting: hazards, surveys, principles of underwriting for the main classes of
insurances, premium calculations and premium rates
Amendments and renewals: why and how amendments are made, how insurances are
renewed
Claims: how claims are reported and investigated, claims professionals and their role, how
claims are settled, how disputes may be settled
4 Supervision of the insurance industry, its regulation and how consumers may be
protected
Supervision and regulation of the industry: the need for supervision, statutory supervision
of insurers and intermediaries, major features and requirements, the Financial Services
Authority (FSA) and the General Insurance Standards Council (GISC), their structures,
roles and powers
Protection of consumers: codes of practice, the role and powers of the Financial Services
Ombudsman Service

363

the ability to:
between risk and insurance
and the concepts and
principles upon which
insurance is based
explain and categorise risks
identify factors influencing frequency and severity
identify the factors that make risks insurable
evaluate the purpose, functions and benefits of
insurance, discussing practical and potential ethical
considerations facing the industry
evaluate the advantages and disadvantages of self-
insurance in particular cases
carry out a risk management exercise
2 Explore the structure of the
insurance market and the
services and products it
provides
describe the structure of the insurance market and
explain the functions, responsibilities and legal
status of the various organisations involved
evaluate the case for and against mutual
organisations and demutualisation
assess the reasons for and evaluate the impact of
changes in the market, including the rise of the
direct marketing of personal lines insurance and the
widening of provision by non-traditional providers
assess the insurance needs of individuals and
business operations and recommend products and
insurance related services provided by the market to
meet their needs in specific cases
explain the reasons why some insurances are
compulsory and evaluate the effectiveness of this
364

the ability to:
3 Investigate the practices of
the insurance industry in
meeting the needs of and
servicing its clients
explain the various procedures by which insurance
and reinsurance is bought/sold and identify and
evaluate possible developments which may take
place in the buying and selling process
describe the purpose, use and structure of documents
used in insurance practice; proposal forms, policy
forms, certificates of insurance, cover notes, claims
forms, survey forms, slips
identify the general features of policy exceptions
and conditions and standard and non-standard
clauses, assessing when these should be used in
particular cases
explain the principles used for underwriting the
main classes of insurance, identify and categorise
hazards in particular cases and demonstrate how
these will affect underwriting
demonstrate how premium rates and premiums are
calculated and the procedures by which insurance
policies are renewed and amended
describe the procedures by which claims are settled
and evaluate the role of various claims professionals
4 Assess the supervision of the
insurance industry, its
regulation and how
consumers may be protected
evaluate the need for supervision and regulation of
the insurance industry
describe the remedies available in the event of
failure of an insurer
assess the role of the Financial Services Authority
(FSA) and the General Insurance Standards Council
(GISC), to date
describe the requirements of the codes of practice
operative in the industry and assess their
effectiveness
describe the role and powers of the Financial
Services Ombudsman Service and assess its
effectiveness

365
Guidance

Delivery
Delivery should normally involve a mixture of lectures and seminars. Learners will be required
to work on case studies and a risk management exercise and to carry out investigations into
developments in industry practices and products. Work experience in an insurance company or
brokers would greatly assist learners in understanding current industry practices.
Learners will need to read industry publications, reports (eg Reports of the Financial Services
Ombudsman Service) and broadsheet newspapers.
Assessment
Generating evidence of outcomes may be in the form of assignments, examinations, case studies
and practical exercises. Learners will need to carry out a risk management exercise, produce
basic premium calculations using base rates and complete relevant insurance industry
documents. They will also need to carry out exercises advising personal and business clients on
their insurance needs given specified circumstances.
Links
This unit has links with Unit 5: Common Law I, Unit 27: Common Law II, Unit 46: Financial
Services and Unit 48: Investment.
Support materials
Textbooks
Diacon S R and Carter R L Success in Insurance (J ohn Murray, 1992) ISBN: 0719551749
Dickson G C A Risk and Insurance (Chartered Insurance Institute, 1991) ISBN: 1853690775
Journals
Post Magazine
The Broker (British Insurance Brokers Association)
The Journal (Chartered Insurance Institute)
Other publications
Lloyds List
Reports and publications from the Insurance Ombudsman, the Financial Services Ombudsman
Service, the Financial Services Authority and the General Insurance Standards Council
366
Websites
Virtually all of the UKs insurers have websites from which details of structure and products are
available and these are too numerous to mention. Other useful websites include:
www.abi.org.uk The Association of British Insurers
www.biba.org.uk The British Insurance Brokers Association
www.financial-ombudsman.org.uk Financial Ombudsman Service
www.fsa.gov.uk The Financial Services Authority
www.lloydsoflondon.co.uk Lloyds of London

367
Unit 51: Investment
Learning hours: 60

Description of unit
In this unit, learners will learn about the range of investment opportunities available to
individuals living in the UK. They will learn how to identify investors needs and how UK
taxation works in so far as it affects investment decisions. Learners will learn about the range of
investment products available from banks, building societies, insurance companies and national
savings. They will also learn how the Stock Exchange works, the range of investments available
and how to manage a portfolio of investments.
1 Demonstrate a knowledge of the range of investments available to individuals
2 Explore how the UK system of taxes affects investment decisions
3 Identify investors needs and recommend appropriate investments
4 Explore the working of the Stock Exchange and the range of investments available.

368
Content

1 Range of investments
Risk perception: how attitude towards risk affects investment decisions of individuals;
investment return versus safety
Range: investments and savings products available from banks, building societies, insurance
companies and national savings
2 UK system of taxes
Taxation: calculation of personal taxation as it affects UK residents; income tax, capital
gains tax, inheritance tax; the importance of tax-free investments and products which give
tax advantages
3 Investors needs
Investors needs: creating portfolios of suitable investments for individuals taking account
of personal circumstances, taxation and attitude to risk; the function of financial advisers
and how to select one investors rights and protection
4 Stock Exchange
Stock Exchange: how the Stock Exchange works
Collective investments: open ended investment companies (OEICs), unit and investment
trusts
Shares: selection, new issues, rights issues, scrip issues and the use of warrants; reading The
Financial Times share information pages; reading company reports and accounts;
fundamental and technical analysis

369

the ability to:
between risk and insurance
and the concepts and
principles upon which
insurance is based
assess the importance of the attitude towards risk
and apply the concept of risk when evaluating
investments and investment products
evaluate a range of investment products available
from banks, building societies, insurance companies
and national savings
analyse their suitability in meeting the needs of
different individuals
2 Explore how the UK system
of taxes affects investment
decisions
calculate basic income tax which include interest
and dividends received
assess the impact of capital gains tax by simple
calculations
evaluate tax-free investments and their importance
to different tax payers
3 Identify investors needs and
recommend appropriate
investments
identify investors needs
design portfolios of investments for different
individuals with different circumstances and
attitudes to risk
explain the functions of financial advisers and how
to select one
evaluate investors rights and protection available to
them
4 Explore the working of the
Stock Exchange and the
range of investments available
explain the financial pages of The Financial Times
calculate Stock Exchange ratios and comment on
them
describe the purpose of collective investments eg
open ended investment companies (OEICs) unit and
investment trusts
evaluate different types of shares, share issues and
British Government securities traded on the Stock
Exchange

370
Guidance

Delivery
Delivery will normally be a mixture of lectures and seminars. Learners will be required to work
on case studies and company accounts and to calculate ratios and trends. Learners will need to
read a broadsheet newspaper and keep up to date with economic and company news.
Assessment
Evidence of outcomes could be in the form of assignments, examinations, case studies or
through monitoring a portfolio of shares over a period of time. Learners will need to produce
basic tax calculations, portfolios of investments for different individuals tailored to their
personal circumstances. Financial analysis of company accounts, graphs and calculations
connected with share prices and movements of share prices.
Links
This unit links with Unit 2: Managing Financial Resources and Decisions, Unit 10: Financial
Reporting, Unit 12: Taxation and Unit 49: Financial Services.
Support materials
Textbooks
Goldstein-J ackson The Astute Private Investor (Right Way, 1994) ISBN: 0716020297
Rowes P Taxation (Continuum, 2002) ISBN: 0826560410
Slater J Investment Made Easy (Texere, 2003) ISBN: 1857971760
A good daily broad sheet newspaper eg The Times or The Financial Times
A broadsheet Sunday newspaper eg The Sunday Times
Weekly Investors Chronicle
Monthly Money Observer, Moneywise, What Investment
Which? Way to Save and Invest (Consumers Association)

371
Websites
www.bbc.co.uk/your money BBC
www.fsa.go.uk The Financial Services Authority
www.hemscott.co.uk company information
www.investorschronicle.co.uk Weekly Investors Chronicle
www.moneyfacts.co.uk best investment rates
www.multexinvestor.co.uk broker research
www.proshare.co.uk investment clubs
Other publications
Company reports and accounts are freely available from company secretaries.

372

373
Unit 52: Industry Experience
Learning hours: 60

Description of unit
This unit is designed to provide learners with an opportunity to develop first-hand experience of
industry with a relevant organisation. Learners focus on issues or problems relevant to them and
the host organisation. The experience enables learners to demonstrate the ability to understand
and analyse the relationships between different parts of the host organisation.
The unit focuses on an action plan with aims, objectives and targets that supports the
development of a management report, in agreement with their line manager and tutor. The
report should be supported by evidence collected by the learner and should demonstrate an in-
depth knowledge of working practices and a broad knowledge of how the host organisation
operates.
Learners review their progress and evaluate relevant sources of information and assistance
within the host organisation. The management report is reviewed against the agreed targets of
the action plan and submitted as a formal report.
This unit is common to more than one Higher National qualification. Learners must ensure that
their evidence relates to the programme they are undertaking.
1 Use methods to arrange industry experience that will support the development of a
management report in an appropriate services industry context
2 Prepare and agree aims, objectives and targets of the management report with the
appropriate manager within the selected organisation
3 Monitor and evaluate progress in achieving aims, objectives and targets, using relevant
sources of information
4 Present report to colleagues, justifying conclusions and associated recommendations.

374
Content

1 Arrange industry experience
Methods: personal skills audit eg negotiation, action planning, CV, interview techniques;
research company background, shortlist potential organisations, letter, email, facsimile,
interview (formal/informal), personal recommendation
Management report: issues, problems, eg team working, leadership, interpersonal skills,
operational/technical skills, customer care, communication, networking, action planning,
problem-solving, ICT/computer literacy, flexibility
Services industry context: eg hospitality, travel, tourism, sports, leisure, recreational
industries, public, private, voluntary (not-for-profit) sectors
2 Aims, objectives and targets
Aims, objectives and targets: personal/career development, work-related, eg job
competencies, daily duties and routines, operational, practical, technical, people-related,
learning and development, quality, health and safety, equal opportunities, benefit to the
learner/organisation, review/achievement dates
Research project: negotiation, action planning, strategy development, objective setting,
creative, innovative, problem solving, methods of achieving aims, objectives and targets,
time scale, resources, intended outcomes
3 Monitor and evaluate progress
Monitor: gather and record information, collect evidence to support findings, review
information with appropriate personnel
Evaluate: measure using supportive evidence, aims, objectives, targets, activities
undertaken, eg teamwork, decision making, learning, self-development, assertiveness,
meeting needs and requirements of the job role; benefits, difficulties, effectiveness, time
scale, reach and justify conclusions
Relevant sources: personnel, eg supervisor, line manager, colleagues, members of the
public; reference materials, the internet, training manuals, computer help-screens, induction
handbook
4 Present report
Format: report, contents/index, bibliography, acknowledgements, referencing, visual
presentations of data including statistics, communicating effectively, developing and
presenting a reasoned case
Colleagues: managers, employees, peers, external stakeholders
Recommendations: eg changes, amendments, resources, roles, responsibilities
Justification: efficiency, effectiveness, costs, benefits, innovation, creativity

375

the ability to:
1 Use methods to arrange
industry experience that will
support the development of a
management report in an
appropriate services industry
context
research and select a range of suitable organisations
that could provide industry experience in an
appropriate context
explain how the industry experience would support
the development of an appropriate management
report
2 Prepare and agree aims,
objectives and targets of the
management report with the
appropriate manager within
the selected organisation
set, prioritise and agree appropriate aims, objectives
and targets for the management report with the line
manager and tutor
justify how the aims, objectives and targets will
benefit the organisation and the learner
3 Monitor and evaluate
progress in achieving aims,
objectives and targets, using
relevant sources of
information
gather information to monitor and evaluate progress
using a range of relevant sources of information and
assistance
evaluate progress against the original aims,
objectives and targets
4 Present report to colleagues,
justifying conclusions and
associated recommendations
determine conclusions that are consistent with the
original aims, objectives and targets
identify sufficient data and information to support
the conclusions
present a report in an appropriate format to
colleagues outlining the research undertaken and
analysing the outcomes

376
Guidance

Delivery
Tutors should be aware of the implications of the context in which they are delivering the unit
and ensure that examples and support materials (eg application forms, product information,
information about companies, their background and locations) are relevant.
This unit enables learners to develop an understanding of organisational structures and working
practices within an industry environment. Delivery should enable learners to undertake research
based on their own interests and draw from the main themes during the course. Identifying and
agreeing aims, objectives and work-related targets with their placement hosts forms the focus
for the management report and establishes the orientation of this unit.
Learners will need guidance on selecting an appropriate organisation and to actively negotiate
personal as well as work-based aims, objectives and targets with tutors and the placement host.
It is also important that the number of hours spent developing the report gives the learner
sufficient experience of their chosen occupational environment. It is often reassuring to the
learner that they know they can approach tutors for advice and support if necessary during the
development of their report.
Learners should have access to a wide range of sources, both during the planning stage and also
whilst developing the report. Background information outlining the range of suitable industry
organisations in the local area may be made available by the tutor or careers service.
Attention should be given to allow for adequate preparation before the industry experience is
implemented. Knowledge of company structures and daily routines and expectations are
essential. Preparation should cover all of the relevant assessment criteria and the aims,
objectives and targets should be identified and agreed as the focus of the management report.
The unit lends itself to the collection and presentation of information through the production of
interviews, observations, questionnaires and subsequent analyses using charts and graphs by
ICT.
The final presentation should be in report format. Learners will need guidance on the
preparation of formal reports. The report should draw conclusions based on the monitoring,
review and evaluation of the outcomes of the industry experience.
Assessment
The assessment for this unit is based on the selection by the learner of a range of possible
placement host companies. The companies should be vocationally relevant and also meet the
needs of the learner. It is important that the experience allows for the opportunity to examine
operational and work-based issues and problems. Company background, location and
information should be researched as part of the selection process, which may also involve a pre-
placement interview. Forward planning is essential to ensure that learners maximise their
opportunities and secure their own host for their industry experience.
The learner must set their own aims, objectives and targets forming the focus for a management
report that is undertaken by the learner as a result of the industry experience. These must be
agreed with the tutor and the placement hosts. The work should allow for an investigation of
current working practices with a subsequent analysis of the findings. Learners should also
ensure that they collect appropriate information in support of their report, which should make a
valid contribution to the organisation.

377
The report should also discuss and draw conclusions based on the original aims, objectives and
targets. Feedback from supervisors and colleagues should be recorded and evaluated with any
modifications to approach or knowledge.
The learner should reflect on their experiences and assess their own personal effectiveness
during the industry experience. Supporting evidence or justification is required to substantiate
claims made or recommendations relating to future aims, objectives or targets.
Learners are best working individually with one organisation, although there may be several
learners working with a large organisation at any one time.
Links
This unit has links with a number of other units within this qualification. Tutors and learners
should take into consideration the core operation of the business supporting the industry
experience and ensure that links with other relevant units are reflected in their work.
Resources
Learners must have access to library and research facilities including the internet. They may
also find the careers library and/or careers service useful in researching and securing a host for
the industry experience. Each centre should seek to produce its own report-writing guidance
booklet, with reference to its own local resources.
Training videos may also be useful for this unit. Such resources can normally be purchased or
hired. Some of these can be expensive but often, commercial suppliers offer an educational
discount.
Areas that may be relevant include:
leadership skills
self management
dealing with conflict.
Details and a brochure are available from:
Video Arts Group
68 Oxford Street
London W1D 1LH
Telephone: 020 7637 7288
Email: enquiries@videoarts.co.uk
Website: www.videoarts.com
Support materials
Textbooks
Blundel R Effective Business Communication (Prentice Hall 1998) ISBN: 0137427018
Boud D/Keogh R and Walker D (editor) Reflection: Turning Experience into Learning
(Kogan Page Ltd 1999) ISBN: 0893972029
Clark M/Riley M/Wood R and Wilkie E Researching and Writing Dissertations in
Hospitality and Tourism (International Thomson Business Press, 1997) ISBN: 1861520468
378
Easterby-Smith M and Thorpe R Management Research (Sage Publications, 2001)
ISBN: 0761972854
Hill S/Hughes R/Rees R and Yates J How to Analyse and Promote Your Skills for Work,
(University of London Careers Service, 2000) ISBN: 0718716213
J ankowiccz A D Business Research Projects (Thomson Learning, 2000)
ISBN: 1861525494
Moon J A Reflection in Learning & Professional Development (Kogan Page, 2000)
ISBN: 074943452X
Schon D The Reflective Practitioner: How Professionals Think in Action (New York Basic
Books, 1995) ISBN: 1857423194
Smith C and Irving R No Sweat: The Indispensable Guide to Reports and Dissertations
(Institute of Management, 1998) ISBN: 0859462951
Websites
Learners may wish to use the internet to research suitable placement organisations and their
company reports. There are many university and college career centres that provide online
resources that cover placements, research and report writing. Other useful sites include:
www.ncwe.com National Centre for Work Experience
www.prospects.csu.ac.uk prospects graduate careers
www.ukplacements.com UK placements for undergraduates
www.work-experience.org.uk work experience gateway

379
Unit 53: Contemporary Issues in Marketing
Management
Learning hours: 60

Description of unit
This unit will introduce learners to some current issues within the marketing industry. The role
of marketing as a business function has become increasingly viewed as an integral constituent of
overall corporate strategy as organisations have become more aware of the need to develop
long-term relationships with their customers.
The marketing industry has further widened its scope to include non-traditional organisations
such as those in the public and voluntary sectors and this unit will invite learners to examine
how marketing theory in applied in not-for-profit organisations.
Services management, and therefore marketing, has been recognised as meriting separate
consideration since the 1970s. This unit will also look at the special approaches that service
industry businesses need to adopt in a rapidly changing environment.
1 Describe and explain the importance of relationship marketing in a contemporary business
context
2 Examine and evaluate the role of marketing in non-traditional contexts
3 Explain the importance of applying the extended marketing mix in the service sector
4 Examine the reasons for the increasing emphasis on ethics and social responsibility as part
of the marketing management process.

380
Content

1 Relationship marketing
Marketing evolution: from production, transactions, consumer-relationship marketing ethos,
internal and external relationships, supply chain relationships, value chain analysis
Benefits of relationship marketing: maximising customer equity, competitive environment,
how the marketing mix supports relationships brand recognition reference groups
consumer behaviours in relation to corporate identity; issues of credibility, trust and
commitment in relationships with stakeholders
IT requirements in relationship marketing: range of ICT tools, loyalty cards, research
capabilities, production online, access to customers; monitoring and controlling projects and
marketing plans, IT use in planning, scheduling and resourcing activities within the plan
CRM: systems to support relationship marketing approach, what CRM systems can do,
limitations and possibilities, integration with traditional methods, maximising value for
customer and organisation, how internet and digital technologies can be used to enhance
communications and relationships within channels and between B2B partners
Knowledge management: the growing importance of knowledge management as a key tool
in gaining and sustaining competitive advantage
2 Marketing in non-traditional contexts
Public sector: importance of growth of marketing concepts in the public sector, mix of
private, voluntary and public sector activity, public sector objectives, problems of marketing
in public sector
Voluntary sector: types of voluntary sector organisations, role of marketing customers,
donors and beneficiaries of voluntary sector organisations; budgeting and performance in
voluntary sector organisations, use of different marketing techniques eg direct methods,
intervention marketing, viral marketing
Customer identification: the nature of relationships with customers in not-for-profit
organisations, nature of message and methods of communication, customer benefit and
recognition, stakeholders in not-for-profit organisations
Virtual organisations: online purchasing and production, particular aspects of customer
interface in virtual organisations, trends in virtual/real mix of activities
3 Extended marketing mix in the service sector
Extended marketing mix: people, processes, physical evidence; the development of services
management and marketing as a separate discipline
Service/product mix: nature of services as intangibles, services as added value to product
mix, services within relationship marketing, service sector growth
Managing the process of service marketing: perishability and heterogeneity of services,
particular marketing approaches in service industries
Role of IT: how ICT can be used to manage the process of marketing in the services industry

381
4 Ethics and social responsibility
Corporate social responsibility (CSR): corporate reputation, economic, legal, ethical and
philanthropic social responsibilities; impact on brand reputation
Societal marketing: development in the evolution of marketing
Ethical considerations: business ethics, globalisation, international marketing ethics,
pressure group activity, environmental/ecological issues, sustainable marketing; ethics and
responsibility in marketing research

382

the ability to:
1 Describe and explain the
importance of relationship
marketing in a contemporary
business context
explain the concept of knowledge management and
its role in relationship management
explain the ways that ICT can support the customer
relationship management process in a particular
organisation
describe the benefits of relationship marketing to
different types of organisation
2 Examine and evaluate the role
of marketing in non-
traditional contexts
carry out a stakeholder analysis for a voluntary
sector and a public sector organisation
describe the nature of the marketing-customer
interface within not-for-profit organisations
identify and compare methods used in marketing
within the public, private and voluntary sectors
examine the key issues involved in marketing in
virtual marketplaces
3 Explain the importance of
applying the extended
marketing mix in the service
sector
describe the use of the extended marketing mix in
the services sector
explain how the product/service mix can be used to
enhance value for the customer and organisation
explain how difficulties peculiar to the marketing of
services can be overcome with reference to a
particular organisation
examine the role of IT in services marketing
management
4 Examine the reasons for the
increasing emphasis on ethics
and social responsibility as
part of the marketing
management process
investigate some of the current issues of ethical and
social concern to marketers in a particular industry
explain the concept of CSR with reference to a
particular organisation
examine the role played by pressure groups and the
published or broadcast media in influencing ethical
and social marketing policies

383
Guidance

Delivery
This unit can be delivered as a stand-alone unit or to complement the marketing pathway. It is
designed to be linked to Unit 1: Marketing and Unit 19: Marketing Planning and can be
delivered and assessed in the form of an integrated case study on a real or tutor-devised
organisation, product or service. Efforts should be made to ensure that learners gain a good
understanding of the theoretical underpinning and practical application of marketing planning
and produce credible responses.
Assessment
Links
This unit has links with all the other marketing units in the programmes: Unit 1: Marketing,
Unit 17: Marketing Intelligence, Unit 18: Advertising and Promotion, Unit 19: Marketing
Planning and Unit 20: Sales Planning and Operations. The unit is also linked with Unit 4:
Business Environment and Unit 7: Business Strategy.
Resources
Access should be available to a learning resource centre with a wide range of marketing texts.
Texts should be supported by use of journals, company reports and government statistics. Case
studies, videos and documented examples of organisations and their marketing, auditing and
planning techniques should illustrate the topical nature of this unit. The contemporary nature of
this unit particularly requires the use of current material that can be accessed through
professional institutes publications and websites.
Support materials
Textbooks
Brassington F and Pettitt S Principles of Marketing 3rd Edition (FT Prentice Hall, 2003)
ISBN: 0273657917
Christopher M/Payne A and Ballantyne D Relationship Marketing: Creating Stakeholder
Value (Butterworth Heinemann, 2002) ISBN: 0750648392
Fifield P Marketing Strategy 2nd Edition (Butterworth Heinemann, 1998)
ISBN: 0750629088
Gummerson E Total Relationship Marketing (Butterworth Heinemann, 2002)
ISBN: 0750654074
384
Kotler P and Andreasen A R Strategic Marketing for Non-Profit Organizations 3rd Edition
(Prentice Hall International UK, 1982) ISBN: 0132325470
McDonald M Marketing Plans: How to Prepare Them, How to Use Them 5th Edition
(Butterworth Heinemann, 2002) ISBN: 0750641169
Campaign
Journal of Marketing
Journal of Services Marketing
Marketing
Marketing Business
Marketing Review
Marketing Week
reports
Websites
www.bized.ac.uk provides useful business case studies for
www.studentshout.com a useful academic website
www.thetimes100.co.uk business educational resources

385
Unit 54: Computer Platforms
Learning hours: 60

Description of unit
This unit is aimed at IT practitioners who need sufficient knowledge of computer architecture to
make rational and commercial decisions on the selection and specification of systems. Learners
will learn how to evaluate operating systems in order to create their own operating environment.
Many IT practitioners communicate with specialist technical support staff during the
specification and planning of systems implementation. This unit aims to give learners the
confidence to communicate with technical and non-technical specialists to justify their
recommendations.
It is expected that centres will use current personal computer and networking resources.
Learners should be encouraged to read current journals to investigate and evaluate new
hardware and software developments.
1 Investigate computer systems
2 Investigateoperating systems
3 Design a computer system
4 Test your computer system.

386
Content

1 Computer systems
Processor: description of components (Von-Neuman architecture), terminology eg bits,
bytes, kilobytes etc; identification of factors affecting performance eg millions of
instructions per second (MIPS), floating point operations per second (FLOPS), clock speed,
computed performance indexes, bus architectures, pipelining
Backing store: identification of types (disc, CD, CD-R, CD-RW, DVD-RW, DVD-RAM
etc), performance factors eg data transfer rate, seek times, capacity
Peripherals: description of available peripherals (displays, printers etc), understanding of
performance factors eg displays performance, resolution, colour depth, video RAM,
refresh rate, interlacing, slot pitch, etc, printer speed, resolution, image quality, software
requirements, postscript, PCL and associated printer control
Computer selection: specification of requirements, performance of the selected system,
costs, user benefits
2 Operating systems
Operating system functions: overview of functions eg user interface, machine and peripheral
management etc; comparison between functions of different types of operating system
(personal computer, network, mainframe etc)
Computer operations: proprietary operating systems, creation of environment and systems
for a computer user (file/directory structures, tailoring of screen interface, backup systems
etc), user profile
3 Design a computer system
Selection: processor eg speed, special characteristics; memory, storage devices, display,
peripherals, specialised components (eg sound cards, video cards, datalogging interfaces),
bus system, network readiness/adaptability
User needs: costs, productivity, particular requirements eg power, display, special needs;
training needs
4 Test your computer system
Test plan: software testing eg: black box, white box; hardware testing methodologies,
documentation, health and safety issues eg compliance
User support planning: identifying user training needs, producing a training schedule,
functions of a help desk/help line/help software
Security: physical and logical security measures, backup and recovery, hacking, encryption,
levels of access rights

387

the ability to:
1 Investigate computer
systems
select machine components or sub-systems
appropriate to given tasks
evaluate the performance of the selected system
2 Investigateoperating
systems
contrast the functions and features of different types
of operating systems
understand how to customise operating systems
3 Design a computer system investigate and identify the key components for a
computer system for a particular user
specify a complete computer system to suit a given
task
4 Test your computer system produce a plan that checks the main hardware and
software components, using standard techniques
produce user documentation for your system
produce a security policy for your system
demonstrate that the system meets health and safety
requirements

388
Guidance

Delivery
The range of hardware and software devices covered in this unit is at the centres discretion but
should reflect those in current use as well as emergent technologies (and older technologies
likely to be encountered in the workplace). Centres are expected to keep abreast of modern
developments in computer architecture.
Assessment
Learners must be given the opportunity to select an appropriate computer system for a defined
set of applications. It is suggested that learners produce a specification which both describes the
function of the selected components and evaluates the recommended system against the
requirements. A log book would be a useful tool to demonstrate competence in both stand-alone
and network operations and in upgrading a computer system. A case study would be useful in
providing evidence of planning an IT system.
Links
This unit is ideal for implementing as a stand-alone unit and can be related to any type of
business. It may have specific links in the Information Technology and E-Business Strategies
units in the HN Business programme.
Resources
It is expected that most centres will use personal computers with the appropriate hardware and
software. Centres should set up machines to cover network use and administration. Where
possible, upgrading can be performed on personal computers or by simulations. There should
also be library resources providing up-to-date information on current computer developments.
Centres should make sure that learners are familiar with communication systems such as email
and the internet.
Support materials
Textbooks
following.
Dick D The PC Support Handbook (Dumbreck Publishing, 2002) ISBN: 0954171101

389
Unit 55: Human Computer Interface
Learning hours: 60

Description of unit
As technology moves forward, new methods of communicating with computers are becoming
possible. Software developers are required to determine whether software is developed with
new techniques or traditional tried and tested methods. The developer also needs to measure
how well a computer interacts with a user.
This unit aims to give learners a full understanding of the human computer interface (HCI) and
the part it plays in the construction of software that is usable, attractive, efficient and effective.
The learner is encouraged to explore how well software interacts with the user, fulfils the users
needs and makes allowances for different users. The learner should develop a critical
appreciation of the advantages and disadvantages of various interfaces currently available and
experience the production of a prototype.
1 Discuss HCI-related developments and their application
2 Determine the issues related to a chosen HCI
3 Develop an HCI prototype
4 Evaluate your HCI prototype.

390
Content

1 HCI-related developments and their application
HCI: historical development, motivation, principles and techniques
Developments in technology: workstation environment, screens, keyboards, pointing
devices, other I/O devices (speech), related processing and storage requirements
Developments in HCI: virtual machines, command line input (command sets), menu
selection and the methods of selection, graphical interfaces, speech, screen design for
intensive data entry, intelligent HCIs, virtual personas (engaging with the computer within a
virtual reality), concept of look and feel
Developments in the concept of the user: range of users (expert, regular, occasional, novice,
special needs), needs of user
Development of systems: new developments (hypertext, event driven systems, use of
multimedia), modelling techniques, implication of new developments on user interfaces,
implications of developments on hardware (storage, processing requirements etc)
Applications: range of applications, selection of HCIs for specific applications
2 Issues related to a chosen HCI
Models of user: human memory, knowledge representation, perception, attention, reasoning,
communication, skills and skills acquisition, users cognitive model, use of metaphors and
the consequences on the design of HCI
Health and safety considerations: ergonomics and the surrounding environment (lighting,
seating, RSI, legal implications)
Information considerations: necessity for information-rich environment, examples of
systems (share trading rooms or combat environments)
Cost implications in the choice of HCI: training, effectiveness of system, architectural
requirements (hardware, software, communications)
User considerations: high-speed interactive interfaces (games), special needs (implications
for colour blind, partially sighted, blind, physically incapacitated, slow learners)
Implications: analysis of an HCI selection
3 Develop an HCI prototype
Modelling the interface: mapping the system functionality to the conceptual model,
grouping of the tasks into logical sets
Design: rules and heuristics for good HCI design, review of proprietary examples, context
sensitive help, online help/documentation, design tools
Production: selection of tools, production of prototype

391
4 Evaluate your HCI prototype
Analysis: task analysis (storyboarding, user needs analysis), evaluation of HCI complexity
Measuring the functionality of an HCI: keystroke effort per task, ability to navigate within
the system, time to perform a task, ability to configure the HCI, user satisfaction, use of
metrics such as Fitts Law and Keystroke Level Method
Usability objectives: criteria and performance

392

the ability to:
1 Discuss HCI-related
developments and their
application
outline HCI developments with examples
describe examples of HCI applications
identify the impact of HCI on the workplace
2 Determine the issues related
to a chosen HCI
report on the issues concerning implementation of
an HCI
justify the selection of an HCI for a particular user
group and environment
describe in detail the use of HCI for a particular user
group
3 Develop an HCI prototype design an HCI for a specified application
build an HCI prototype
explain the importance of the user interface in your
design
4 Evaluate your HCI
prototype
describe the design process
evaluate the design process
state the limitations of the design

393
Guidance

Delivery
This unit should be a balance between theory and practical experience. Learners should be
exposed to as wide a range of HCIs as possible, and be encouraged to criticise them. Where
possible, tools for developing software prototypes should be used to allow the rapid production
of HCIs and the design of the HCI should be seen as an integral part of the software
development process.
Assessment
Evidence can be obtained from investigating a wide range of HCI applications. Learners should
show that they are capable of identifying the main features of a given HCI, that they can
diagnose the failings of the interface and propose improvements in the light of user needs.
An HCI prototype can be chosen for any suitable application.
Evidence can be generated in parallel with other units concerned with software development.
Links
This unit has links with Unit 33: Information Systems, Unit 34: Networking Concepts, Unit 35:
Multimedia Design and Authoring, Unit 36: Website Design, Unit 37: Networking Technology,
Unit 38: MS Office Solution Development and Unit 39: Systems Analysis.
Resources
Learners should have access to a cross-section of applications on differing platforms presenting
a range of HCIs. Learners should also have access to a development environment that allows
rapid prototyping.
Support materials
Textbooks
reference purposes only. There is a range of general textbooks relating to this unit, including the
following:
Dix A et al Human Computer Interaction (Prentice Hall Europe, 1997) ISBN: 0132398648
Mandel T The Elements of User Interface Design (Wiley, 1997) ISBN: 0471227307
Preece J Human Computer Interaction (Addison Wesley, 1994) ISBN: 0201627698
Schneiderman B Designing the User Interface (Addison Wesley, 1998) ISBN: 0201694972
Journal
International Journal of Human Computer Studies
Website
www.hcibib.org HCI Bibliography Human Computer Interaction Resources
394

395
Unit 56: Project Management
Learning hours: 60

Description of unit
The aim of this unit is to provide a basic knowledge of project management principles,
methodologies, tools and techniques that may be used in any industry, the professions and the
public sector. Organisational and human resource factors are also included.
Learners will develop an understanding of what constitutes a project and the role of a project
manager. They will be able to analyse and plan the activities needed to carry out the project,
including how to set up a project, how to control and execute a project, and how to carry out
project reviews. Learners will also understand how the project fits into the company or other
organisational environment.
1 Investigate project management principles
2 Examine project organisation and people
3 Examine project processes and procedures.

396
Content

1 Project management principles
Project management: principles of projects, project management and the role of the project
manager eg management of change, understanding of project management system elements
and their integration, management of multiple projects, project environment and the impact
of external influences on projects; identification of the major project phases and why they
are required, an understanding of the work in each phase, the nature of work in the
lifecycles of projects in various industries
Success/failure criteria: the need to meet operational, time and cost criteria, and to define
and measure success eg develop the project scope, product breakdown structure (PBS),
work breakdown structure (WBS), project execution strategy and the role of the project
team; consideration of investment appraisal eg use of discount cash flow (DCF) and net
present value (NPV); benefit analysis and viability of projects; determine success/failure
criteria, preparation of project definition report, acceptance tests
Project management systems: procedures and processes, knowledge of project information
support (IS) systems, how to integrate human and material resources to achieve successful
projects
Terminating the project: audit trails, punch lists, close-out reports and post-project
appraisals; comparison of project outcome with business objectives
2 Organisation and people
Organisational structure: functional, project and matrix organisational structures eg
consideration of cultural and environmental influences, organisational evolution during the
project lifecycle; job descriptions and key roles eg the project sponsor, champion, manager,
integrators; other participants eg the project owner, user, supporters, stakeholders
Control and co-ordination: the need for monitoring and control eg preparation of project
plans, planning, scheduling and resourcing techniques, use of work breakdown structure to
develop monitoring and control systems, monitoring performance and progress
measurement against established targets and plans, project reporting, change control
procedures
Leadership requirements: stages of team development eg Belbins team roles, motivation
and the need for team building, project leadership styles and attributes; delegation of work
and responsibility, techniques for dealing with conflict, negotiation skills
Human resources and requirements: calculation, specification and optimisation of human
resource requirements, job descriptions

397
3 Processes and procedures
Project management plans: the why, what, how, when, where and by whom of project
management eg contract terms, document distribution schedules, procurement, establishing
the baseline for the project
Project organisation: the product breakdown structure (PBS) and the work breakdown
structure (WBS), project execution strategy and the organisation breakdown structure
(OBS), eg preparation of organisation charts, task responsibility matrix, statement of work
(SOW) for project tasks
Scheduling techniques: relationship between schedules, OBS and WBS, bar charts,
milestone schedules, network techniques, resourcing techniques, computer-based scheduling
and resourcing packages, project progress measurement and reporting techniques, staff-
hours earned value and progress S curves, critical path analysis and reporting, milestone
trending
Cost control: cost breakdown structure eg types of project estimate, resources needed,
estimating techniques, estimating accuracy, contingency and estimation, bid estimates,
whole-life cost estimates, sources of information, cost information sensitivity, computer-
based estimating
Techniques: allocation of budgets to packages of work, committed costs, actual costs, cash
flow, contingency management
Performance: cost performance analysis eg budgeted cost for work scheduled (BCWS)
budgeted cost for work performed (BCWP); concept of earned value, actual cost of work
performed (ACWP), cost performance indicators
Change control: the need for formal control of changes eg project impact of changes,
principles of change control and configuration management; changes to scope,
specification, cost or schedule; change reviews and authorisation, the formation of project
teams, project initiation and start-up procedures

398

the ability to:
1 Investigate project
management principles
describe the background and principles of project
management
appraise the viability of projects and develop
success/failure criteria
understand the principles behind project
management systems and procedures
identify the key elements involved in terminating
projects and conducting post-project appraisals
2 Examine project organisation
and people
identify the most appropriate organisational
structure, roles and responsibilities of participants
within a project
control and co-ordinate a project
identify project leadership requirements and
qualities
plan and specify human resources and requirements
for a project
3 Examine project processes
and procedures
prepare project plans and establish the project
organisation
apply project scheduling, estimating and cost control
techniques
describe the methods used to measure project
performance
describe project change control procedures
evaluate the completed project

399
Guidance

Delivery
This unit is largely freestanding without reference to other units, although it could be integrated
with general business management units or with operations management courses.
A practical approach should be adopted where possible. However, it is important that learners
do not spend too much time doing numerical work, preparing or analysing large quantities of
data. The analysis of data is an inevitable aspect of project management life, which is best
learned using pre-prepared examples in electronic form that enable the principles to be quickly
demonstrated without oversimplifying the complexity of everyday project operations.
A case study workshop approach with groups of learners would provide an excellent learning
medium.
Assessment
Evidence of outcomes may be in the form of assignments, analysis of case studies, completed
tests or examinations. Evidence should be provided at unit level in order to ensure proper
integration of all the outcomes within the unit.
Links
This unit could be studied in parallel with, and complement all the units in the HN Business
programme and in particular, Unit 8: Research Project.
It is intended that this unit will support the knowledge and understanding requirements for the
NVQ in Project Management at level 4.
Resources
Appropriate software packages should be used to demonstrate project control and reporting
techniques. Packages might include:
time and cost scheduling packages
documentation and procurement control packages
spreadsheet packages
graphic presentation packages.
Other packages for items such as risk analysis, project accounting and procurement control
could be used to illustrate particular techniques in specific industries.
Access to real project data in electronic spreadsheet form would be an advantage.
400
Support materials
Textbooks
reference purposes only. There is a range of general textbooks relating to this unit, including the
following:
Buttrick R Project Workout 2nd Edition (Financial Times Prentice Hall, 2000)
ISBN: 027364436X
Lock D Project Management 8th Edition (Gower Publishing, 2003) ISBN: 0566085518
Lock D The Essentials of Project Management 2nd Edition (Gower Publishing, 2001)
ISBN: 0566082241
Smith N J Project Cost Estimating (Thomas Telford Publications, 1995)
Smith K Project Management and Teamwork 2nd Edition (McGraw Hill, 2003)
ISBN: 0071216332
Turner J R The Handbook of Project-Based Management 2nd Edition (McGraw Hill, 1998)
ISBN: 0077091612

401
Unit 57: Administrative Services
Learning hours: 60

Description of unit
The aim of this unit is to give learners the knowledge and understanding to develop and provide
the administrative services that allow an organisation to function effectively. Learners need to
understand how to develop specifications for administrative services, and then design them.
When the services are in place, learners need to show how administrative services can be
implemented and monitored so that they are maintained and improved.
1 Examine differing administrative services and how they operate
2 Review ways for developing specifications for administrative services
3 Explore the skills and knowledge required in the design and implementation of an
administrative service
4 Investigate the procedures necessary for themonitoring of the chosen administrative
service.

402
Content

1 Differing administrative services
Differing services: eg typing, reception or property management; users of these services in
the organisation.
Importance of these services: how they affect the operation of the business
Decision makers: levels of management and lines of communication
Legal and regulatory requirements: eg Data Protection Act, Health and Safety at Work Act,
Equal Opportunities Act
2 Specifications for administrative services
Consultation: importance of and how to consult effectively identification of requirements
for administrative services
Advice: sources of advice available when developing specifications for administrative
services
Specifications: importance of detailed specifications and their development
Record keeping: need to keep full and accurate records of specifications
Organisations policies, objectives and constraints: what these are and how they are
relevant to developing administrative services
3 Design and implementation
Design options: production of service to meet agreed specifications, consultation about with
relevant people, conforming with legal and regulatory requirements and organisations
policies, objectives and constraints
Presentation: putting design in a form and style that will help users and decision makers to
understand the strengths and weaknesses
Sufficient information: presentation of final design
Record keeping: memos, letters, emails, minutes of meetings, detailed final design
specification.
Implementation: negotiating and agreeing the plans for implementation, ensuring that those
involved in the implementation understand the implications for their work, minimising
disruptions to work output and the working environment during the implementation
Support: providing support to enable users to use the administrative services and the
systems and procedures that support them correctly eg individual and team, manuals,
instructions, help facility

403
4 Monitoring
Checking: methods of checking regularly that the administrative services and the systems
and procedures that support them are being used correctly
Corrective action: types of and methods of taking eg rewriting manuals, procedures and
instructions, further training
Consultation: methods to encourage users to comment on the effectiveness of administrative
services and the systems and procedures that support them and to suggest how they could be
improved eg questionnaires, focus groups, interviews
Evaluation: collection of valid and reliable information which is sufficient to evaluate the
effectiveness and efficiency of the administrative services eg observations, service
agreements, charters, complaints procedures, quality procedures
Improvements: methods of identifying, decision making on what is within the limits of your
authority and in line with legal and regulatory requirements and what needs to be
recommended to relevant people, means of communication eg meetings with team
members, job description, remit, Data Protection Act 1998, Health and Safety Act 1974,
reporting procedures, verbal or written reports

404

the ability to:
1 Examine differing
administrative services and
how they operate
describe at least three administrative services and
their users
explain the importance of these services for the
operation of the business
analyse who the decision makers for the
administrative service are
state the legal and regulatory requirements relevant
to the administrative services
2 Review ways for developing
specifications for
administrative services
explain why it is important to consult with people in
an organisation
identify how to assess the requirements for
describe the sources of advice available
explain the importance of detailed specifications and
how these can be developed
detail the importance of keeping full and accurate
records when developing specifications
analyse the importance of an organisations policies,
objectives and constraints on the development of
3 Explore the skills and
knowledge required in the
design and implementation
of an administrative service
describe how to produce design options that are
consistent with specifications, meet any legal and
regulatory requirements and are consistent with an
organisations policies, objectives and constraints
review the ways of presenting design options in a
form and style that will help users and decision
makers to understand the strengths and weaknesses
of a proposal and enable them to make a final
decision
explain methods of implementation and means of
providing support for the users
analyse ways of minimising disruptions to work
output and the working environment during the
implementation

405

the ability to:
4 Investigate the procedures
necessary for themonitoring
of the chosen administrative
service
explore methods of checking that the administrative
services and systems and procedures that support
them are being used correctly
analyse ways of taking corrective action where
administrative services are not being used correctly
explain the importance of encouraging users to
evaluate the effectiveness of administrative services
and suggest improvements
describe how to collect valid and reliable
information to evaluate the effectiveness and
efficiency of the administrative services
review ways of identifying improvements and
communicating them to the people involved

406
Guidance

Delivery
Delivery of this unit will focus on the learners acquiring the skills of data collection, analysis of
information and the identification of good practice. Communication, negotiation and
presentation skills will need to be developed. Learners will need to understand the importance
of evaluation and monitoring. Case study analysis would be useful for learners to practise these
skills. Lectures, case studies and visits to see administrative services in practice would all be
useful.
Assessment
Where possible, evidence should be generated from real workplace situations. Where this is not
practical, learners should be encouraged to use a host organisation or a job situation with
which they are familiar and simulate the role of a manager. In the role of the manager learners
need to review the administrative services in the organisation, develop specifications for a new
or improved service and design, implement and monitor this service
Evidence of outcomes may be assessed as follows, use of:
presentations as a context for showing understanding of different administrative services,
presenting specifications and design options and plans for implementation
role plays to simulate consultation and the negotiating and agreeing of specifications, design
options and plans for implementation
Links
This unit links with core Unit 6: Business Decision Making. It will also complement Unit 48:
Administrative Practices and Procedures and Unit 52: Industry Experience.
This unit also has links with NVQ Administration at level 4.
Resources
Learners will need access to ICT when preparing their documentation. The internet will also be
useful.
Visits to libraries and visits to administrative services in different companies would be useful.
Support materials
Textbooks
J efferson and Sealey Administrative Procedures for Higher Secretarial Diplomas
(Heinemann) ISBN: 0435455133
Needham Business for Higher Awards (Heinemann, 1999) ISBN: 0435453149
Journals
Management Today
Managing People

407
Unit 58: Business Psychology
Learning hours: 60

Description of unit
The aim of this unit is to develop an understanding of the contribution that psychology makes to
the investigation of human behaviour in the workplace. Emphasis is on theories and methods of
psychological enquiry and their utility in solving human problems in the workplace. The unit
also aims to recognise the ethical issues raised by the study of human behaviour and by the
application of psychological theory.
1 Explore the different perspectives in psychology and assess the contribution psychology
has made to understanding human behaviour in the workplace
2 Examine the role of psychology in the assessment of individual differences in the
workplace
3 Investigate the range of research methods used in psychological enquiry
4 Recognise and assess the ethical issues raised by the investigation of human behaviour
and by the application of psychological theory in the workplace.

408
Content

1 Different perspectives in psychology and the contribution psychology has made to
understanding human behaviour in the workplace
Major theoretical approaches in the study of human behaviour: behaviourist, cognitive,
humanistic; their application in the development of occupational psychology
The contribution of other disciplines: eg sociology and of developments in social
psychology is also recognised
The unit of investigation: ie whether investigating individuals, groups or organisations
2 The assessment of individual differences in the workplace
Application of assessment of individual differences: specifically to understanding of
learning, memory, attitudes, personality and ability testing
Use of psychometric testing in assessment and selection: reliability and validity of
psychometric instruments
3 Range of methods used in psychological enquiry
Methods: experimental and quasi-experimental methods, surveys and interviews, participant
observation, role play and simulation; these methods to be considered with particular
reference to validity, control and levels of analysis (individual, group, organisation/system)
4 Ethical issues raised by investigation of human behaviour and by the application of
psychological theory in the workplace
Ethical guidelines: developed by professional bodies addressing both use of human
participants in psychological research; ways in which research findings are to be applied;
socially sensitive research and its implications for participants and the groups they
represent; consideration of the concepts of informed consent and psychological harm

409

the ability to:
1 Explore the different
perspectives in psychology
and assess the contribution
psychology has made to
understanding human
behaviour in the workplace
describe the major theoretical approaches and the
model of people which they present
assess the contribution of a scientific approach to
investigating workplace behaviour making reference
to normative and idiographic approaches
assess strengths and limitations of quantitative and
qualitative approaches to understanding workplace
behaviour
2 Examine the role of
psychology in the assessment
of individual differences in
the workplace
describe the type of individual differences which
have been the subject of measurement/assessment
assess the strengths and limitations of psychometric
instruments with particular reference to reliability
and validity
3 Investigate the range of
research methods used in
psychological enquiry
describe the different methods most commonly
encountered in psychological research
evaluate the methods described in terms of their
strengths and weaknesses with particular reference
to issues of control and validity
4 Recognise and assess the
ethical issues raised by the
investigation of human
behaviour and by the
application of psychological
theory in the workplace
describe the establishment of ethical guidelines by
professional bodies in psychology
explain the need for such guidelines
identify the major ethical concerns in conducting
research with human participants
explain and define socially sensitive research
evaluate ethical implications of applying
psychological findings and theories in the workplace
with reference to models of people suggested by
theories

410
Guidance

Delivery
Learners understanding of psychological theory and research in workplace settings can be
developed by use of a variety of teaching strategies which could include lectures, seminars,
visiting speakers currently working in occupational psychology, discussion of case study
material.
Careful selection of reading material is advised as the subject matter is broad, particularly if
there is consideration of the historical development of scientific psychology.
Assessment
Evidence for all learning outcomes may be in the form of a single written assignment. The
assignment can be at unit level or at outcome level.
Assessment may consist of a combination of formative and summative assessments. Formative
assessment could be undertaken on an outline proposal for the final summative assignment or
could be based on a learner presentation covering one outcome only (outcome 4 is particularly
suited to this form of assessment). Opportunity also exists for peer and self-assessment.
Links
There are links with Unit 59: Business Ethics, particularly for outcome 4.
Support materials
Textbooks
Arnold J /Robertson I and Cooper C Work Psychology 3rd Edition (FT Prentice Hall, 1998)
ISBN: 0273628682
Coolican H Research Methods and Statistics in Psychology 2nd Edition (Hodder and
Stoughton, London, 1995) ISBN: 0340747609
Furnham A The Psychology of Behaviour at Work: The Individual in the Organization
(Psychology Press, Hove East Sussex, 1997) ISBN: 0863774946
McKenna E Business Psychology and Organisational Behaviour (Psychology Press, 2000)
ISBN: 0863776671
Staw B M Psychological Dimensions of Organizational Behavior 2nd Edition (Prentice Hall,
New J ersey, 1995) ISBN: 0024161535

411
Guardian/Observer/The Times/Sunday Times Index available on CD-Rom
Journal of Applied Behavioural Science
Journal of Occupational Psychology
The Psychologist (published monthly by British Psychological Society)
Videos
The British Psychological Society produces videos covering areas of work in psychology (of
general interest only).
Websites
www.alleydog.com resource for psychology students
www.bps.org.uk British Psychological Society website
www.nap.edu/readingroom/books/obas online book on responsible conduct in scientific
research
www.sccu.edu/programs/academic/psych/amoeba
web.html
links to pages on all aspects of psychology

412

413
Unit 59: Business Ethics
Learning hours: 60

Description of unit
The aim of this unit is to develop an ethical dimension in consideration of business objectives
and responsibilities and to develop a broader view of the management process. This will be
achieved by investigation of narrow and broad business ethics issues and by making explicit
links to related units.
1 Examine different ethical perspectives and their theoretical roots
2 Explore business objectives from an ethical perspective
3 Investigate employer/employee relationships from an ethical perspective
4 Examine a current issue in the business sphere from an ethical perspective.

414
Content

1 Different ethical perspectives and their theoretical roots
Ethical perspectives: deontological and teleological ethical theory; developments from these
early approaches, eg utilitarianism and other consequential approaches; early contributions
of Kant and Mill; absolute and relative ethics
2 Business objectives from an ethical perspective
Objectives: need to consider social responsibility and environmental considerations in the
context of an ethical approach to business; development of ethical organisations eg DiToro
(1995); virtue and stakeholder theories as they relate to business objectives
3 Employer/employee relationships
Employer/employee relationships: contractual responsibilities and moral obligations in
employer/employee relationships; Whistle-blowing as moral imperative/breach of loyalty;
Pearsons (1995) work on organisational integrity and making integrity explicit; the
psychological contract; good practice in equal opportunities employment
4 Current issue in the business sphere
Current issues: to be drawn from narrow business ethics-eg consumers, employees,
shareholders, other stakeholders or from a broad business ethics concern eg environmental
protection, economic theory and ethics, international business ethics

415

the ability to:
1 Examine different ethical
perspectives and their
theoretical roots
explain deontological and teleological theories with
reference to philosophical antecedents
compare and contrast absolute and relative ethics
2 Explore business objectives
from an ethical perspective
explain the need for the serving of public interest
and development of trusting relationships with a
wide range of stakeholders
evaluate the range of competing business objectives
and limitations of short-termism
3 Investigate
employer/employee
relationships from an ethical
perspective
discuss the role of the company as moral agent
analyse the development of mechanisms for
achieving employee involvement and empowerment
4 Examine a current issue in
the business sphere from an
ethical perspective
describe the critical ethical assumptions/values
shown by a named organisation relating to a current
business issue
recommend actions in the light of the ethical
analysis undertaken, focusing on business objectives
and employer/employee relations

416
Guidance

Delivery
Learners understanding of ethical theory and analysis can be developed through a variety of
teaching strategies including lectures, seminars, discussion of video resources and case study
material.
It is important that learners develop awareness of their own position in relation to the ethical
issues discussed, and develop an objectivity in their ethical analyses.
Assessment
Evidence for all learning outcomes may be in the form of a single written assignment. The
assignment can be at unit level or at outcome level; opportunity exists to cover more than one
outcome in an assignment. This will be dependent on the business issue under analysis.
Assessment may consist of a combination of formative and summative assessments. Formative
assessment may be in the form of an assignment outline, or a seminar paper based on case study
material.
Learners could also have opportunities for peer and self-assessment in order to develop and
evidence their skills in being responsible for their own learning.
Links
There are strong links with other business units such as Unit 22: Managing Human Resources
(particularly outcomes 3 and 4), Unit 24: Employee Relations (particularly outcomes 1 and 4),
Unit 50: Contemporary Issues in Marketing Management (particularly outcome 4) and Unit 58:
Business Psychology (particularly outcome 4).
Support materials
Textbooks
Bradburn R Understanding Business Ethics (Continuum, 2001) ISBN: 0826453325
Boatright J R Ethics and the Conduct of Business (Prentice Hall, 2000) ISBN: 0130991597
Chryssides G and Kaler J Essentials of Business Ethics (McGraw Hill, 1996)
ISBN: 007707856x
J ackson J An Introduction to Business Ethics (Blackwell, 1996) ISBN: 0631195335
Kitson A and Campbell R The Ethical Organisation (Macmillan Press Ltd, 1995)
ISBN: 00333625668
Mellahi and Wood The Ethical Business (Palgrave Macmillan, 2003) ISBN: 0333949935
Smith K and J ohnson P Business Ethics and Business Behaviour (London International
Thomson Business Press, 1996) ISBN: 0415113830
Sorell T and Hendry J Business Ethics (Butterworth-Heinemann, Oxford, 1996)
ISBN: 0750617055

417
British Journal of Industrial Relations
Business Ethics: A European Review
International Journal of Value-based Management
Journal of Business Ethics
The Financial Times and other broadsheets with a business section
Videos
BP in Colombia (World in Action, 1997)
Disabled Century (BBC, 1999)
Websites
www.bized.ac.uk useful resource for case study material

418

419
Unit 60: Environmental Management
Learning hours: 60

Description of unit
The aim of this unit is to provide sound understanding of how an organisations commercial
activities will impact on the environment, how these activities might be altered in order to
minimise their impact on the environment and how this can be done in a manner that ensures the
continued profitability of the organisation. Learners will gain a knowledge of the assumptions
and approaches used in environmental management techniques, an appreciation and
understanding of environmental values, including how these values can be changed, and how
sustainable practice can promote the long-term interests of the organisation and the population
as a whole. Development of the skills needed to innovate change, support action and empower
others to create changes, and the use of a range of the tools and techniques employed in
environmental management will be explored.
1 Investigate human impact on the environment
2 Explore the concept of sustainability
3 Examine the effects of legal requirements and other pressures on the need for
environmental management within an organisation
4 Examine the approaches to environmental and waste management adopted by business.

420
Content

1 Human impact on the environment
Effects: global warming, ozone layer depletion, depletion of natural resources, loss of
biodiversity and habitats, pollution of air, water and soil, acid rain, food contamination, soil
exhaustion, waste, loss of visual amenity, animal and human health disorders, transport,
increased population
2 Sustainability
Sustainability: conservation of natural environment, renewable and non-renewable
resources, biodiversity, the earths life support systems and processes, the depletion of finite
resources, the earths carrying capacity, duty of care, the quality of human life
Incorporation into international and national policy: Earth Summit agreements, climate
change agreements, EU environmental policy, UK sustainable development strategy,
Agenda 21
3 Legal requirements and other pressures
Sources of legal requirements: UK legislation and regulation for control of pollution,
planning controls including EIA regulations
Concepts in environmental regulation: polluter pays principle, precautionary principle,
emission standards, environmental quality objectives and standards, best practicable
environmental option, best available technology not entailing excessive cost, integrated
pollution prevention and control
Enforcement of environmental law: environmental regulators, nature of pollution offences,
approaches to enforcement
Sources of other pressures: attitudes of public, shareholders, customers, pressure groups and
other stakeholders, image, improved forensic techniques, insurance considerations, cost
savings, professional body codes of practice, peer group influence
4 Approaches to environmental and waste management
Degree of commitment: management involvement, setting of policy, formal or informal
environmental management systems, environmental reporting, integration with wider social
reporting
Elements of ISO14001 environmental systems: preparation of publicly available policy,
identification of activities with environmental effect, access to legal and other requirements,
objectives and targets, programmes, roles, responsibilities and authority, training, provision
of information, procedures, document control, operational control, procedures for accidents
and emergencies, monitoring and measurement, corrective and preventive action, records,
audit, management review, parallels with quality management systems

421
EMAS: relationship to ISO14001, site specific nature, requirement for verified performance
statement
Environmental labelling and life cycle assessment: EU ECO labelling scheme, ISO14020
and ISO14040 series
Benefits of waste reduction: conservation of energy, use of by-products, on-selling of waste
products, increased sales from greening of products/processes, cost reduction, increased
market share, customer retention, increased loyalty and image
Methods of reduction: initial product design, natural methods versus chemical treatment,
recyclable material, use of biodegradable materials, reparability versus replacement,
benefits of design to meet legislation

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the ability to:
1 Investigate human impact on
the environment
describe the impact human activities have had on the
environment
distinguish between local and global environmental
impacts
discuss the extent to which action by business can
lessen human impact on the environment
2 Investigate human impact on
the environment
explain the principles of sustainability
explain the factors that affect the sustainability of an
organisations activities
discuss how an organisation can improve sustainable
practice on a local and national scale
3 Examine the effects of legal
requirements and other
pressures on the need for
environmental management
within an organisation
examine the impact of UK and European Union
legislation with which organisations must comply
discuss how compliance with legal requirements
may lead to overall business improvement
describe the relationship between an organisation
and environmental regulators
discuss how business responds to outside pressures
on environmental performance
4 Examine the approaches to
environmental and waste
management adopted by
business
compare different approaches to environmental
management and waste management that may be
adopted by an organisation
devise an environmental policy for a chosen
organisation
explain how an environmental management system
operates within an organisation
investigate how waste management can contribute to
an organisations environmental and commercial
performance

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Guidance

Delivery
This unit will probably be delivered as a stand-alone unit, however there are opportunities for
some integration of assignments with the units identified in the Links section.
Learners should try to access local and national organisations to see environmental issues,
impacts and environmental policy and procedures in business today. Learners may usefully
examine corporate websites to find examples of environmental policy and reporting. Learners in
employment may be able to use their own organisation as a base for investigation and
comparison. Case studies will need to be provided to demonstrate current issues in
environmentalism and responses to these issues.
Assessment
The evidence for this unit may be in the form of written or oral assignments/tests. The
assignments may be based around investigations into actual business organisations and their
products, services and processes or case study material.
Evidence is likely to be produced at outcome level and could include individual or group
assignments. Time-constrained assessment based on case study material could also be included.
Learners must demonstrate their understanding of current issues in environmentalism, the
impacts on business organisations, governments, communities and other stakeholders, and the
responses of governments and business organisations to environmental issues. Learners must
also demonstrate their understanding of the national, international and global issues involved in
environmental management.
Links
This unit does not have direct links to other units. However, there are some opportunities for
learners to consider environmental issues in the content of work in other units, for example:
Unit 1: Marketing, Unit 4: Business Environment, Unit 17: Marketing Intelligence, Unit 18:
Advertising and Promotion, Unit 19: Marketing Planning, Unit 37: Purchasing and Unit 42:
Quality Management.
The unit also covers aspects of the knowledge and understanding of a number of units from
NVQ level 4 in Environmental Management.
Support materials
Textbooks
The following cover aspects of areas contained in the unit:
A Better Quality of Life: A Strategy for Sustainable Development for the UK (Stationery Office
Books, 1999) ISBN: 0101434529
Blair A and Hitchcock D Environment and Business (Routledge, 2001) ISBN: 0415208319
J ohnson P ISO14000 (J ohn Wiley & Sons, 1997) ISBN: 0471165646
Lyons D Environmental Regulation and Your Business (Stationery Office Books, 2001)
ISBN: 0117027006
424
Prakash P Greening the Firm (Cambridge University Press, 2000) ISBN: 052166487X
Starkey R and Welford R (editors) Earthscan Reader in Business & Sustainable
Development (Earthscan Publications) ISBN: 1853836397
Websites
There are numerous websites dealing with environmentalism and environmental management.
These provide useful sources of information and material which could be used in the
implementation of the unit. Websites are liable to change with little notice. However the
following useful sources were available at the time of preparation of this unit:
www2.bitc.org.uk Business in the community
www.defra.gov.uk/environment/index.htm Environmental Protection
web page of Department for
Environment and Rural Affairs
http://emea.bsi-global.com/Environment/Overview/index.xalter Environment web page of BSI
management systems website
www.environment-agency.gov.uk/business Environmental Agency
www.unep.org United Nations Environment
Programme

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Unit 61: Facilities Operations
Learning hours: 60

Description of unit
This unit develops the essential skills and knowledge required to deliver facilities operations in
a wide variety of contexts. These include hospitality and leisure venues, public arts venues,
tourist complexes, educational establishments such as colleges, universities, halls of residence,
hospitals, museums and many other operations which are becoming increasingly dependent on
facilities operations, as distinct from the primary function of the organisation or venue.
This unit focuses on the operational and administrative functions of the facilities role. Learners
will address the broad responsibilities and duties of a facilities manager, the legal, health and
safety obligations that fall within the remit of facilities operations and the various administrative
systems that support facilities operations. Learners will also evaluate and review the quality and
effectiveness of the facilities operation.
1 Investigate the operational responsibilities of a facilities manager
2 Examine the legal, health and safety obligations to be addressed by facilities operations
3 Develop and use a range of administrative systems to support facilities operations
4 Use appropriate criteria to carry out evaluation and review of the quality and effectiveness
of the facilities.

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Content

1 Operational responsibilities
Staff: structure and responsibilities, employment terms and conditions, training and
development, appraisal, legal issues eg equal opportunities, discrimination, dismissal,
working time regulations, transfer of undertakings
Buildings: uses, allocation of space, capacity, essential services and supplies (mechanical,
electrical, electronic), maintenance and repair (planned, preventative, emergency/reactive),
refurbishment and development, security
Customers: identifying and assessing needs, expectations and reactions, providing
information and advice, providing customer care and control, accessibility, safety and
security, legal obligations and liabilities, processing and monitoring sales and bookings,
maintaining communication systems and databases, ancillary services and sales
Employer/funding agencies: private and/or public ownership of facilities, management
board/trustees, local authority, funding partnerships and sources, financial management,
personal contract and accountability, lines of management responsibility, impact on
facilities operations
2 Legal, health and safety obligations
Statutory regulations: eg local authority, fire authority (expectations and requirements),
employment and insurance law, building and accessibility regulations, compliance, licences,
recording documentation
Health and safety measures: risk assessment procedures, regulations, eg Control of
Substances Hazardous to Health (COSHH), relevant authorities, eg Health and Safety
Executive Inspectorate, Environmental Health Officer; compliance, recording
documentation
3 Administrative systems
Information processing: communications channels, IT systems, property management
systems (PMS), management information systems (MIS), customer records, mailing
lists/databases, archive and record keeping
Control systems: budgeting and accounting, purchases and sales, human
resources/manpower planning, staff wages, salaries, statutory contributions
Building management: multi-use considerations, planning and scheduling, marketing and
publicity functions, services management, maintenance and refurbishment schedules and
records, equipment and resources controls
4 Evaluation and review
Criteria: qualitative, quantitative, objectives, targets
Evaluation: purpose, sources of information, eg customers, colleagues, staff, management;
methods of data collection, types of written and oral feedback, accuracy, relevance,
reliability, validity, improvements and recommendations

427

the ability to:
1 Investigate the operational
responsibilities of a facilities
manager
assess the responsibilities of the facilities manager
for staff engaged in facilities operations
identify the responsibility the facilities manager has
to operational aspects of the building
explain using examples the responsibility the
facilities manager has towards customers using the
facility
examine the impact on facilities operations of
employers and/or funding agencies
2 Examine the legal, health
and safety obligations to be
addressed by facilities
operations
assess the statutory regulations that will affect
facilities operations in an agreed context
explain the health and safety measures that must be
implemented by a facilities manager in a given
context
describe the documentation required to account for
compliance with statutory regulations and health and
safety measures
3 Develop and use a range of
administrative systems to
support facilities operations
develop and deploy effective systems for processing
information and maintaining communications
identify the control systems required for effective
facilities operations within an agreed context
explain the systems needed by a facilities manager
to support effective building management
4 Use appropriate criteria to
carry out evaluation and
review of the quality and
effectiveness of the facilities
establish appropriate criteria to evaluate the quality
and effectiveness of facilities operations
implement evaluation and review procedures to
analyse the quality and effectiveness of facilities
operations

428
Guidance

Delivery
This unit can be delivered in a wide variety of contexts, including service industries such as
hospitality, travel, tourism, sports, leisure and recreational industries. Teachers should be aware
of the implications of the context in which they are delivering the unit and ensure that examples
and support materials (eg marketing materials for the facility, job descriptions, examples of
documentation, feedback from facilities users, case studies, lists of useful websites) are relevant.
Learners must also share a common understanding and definition of facilities management and
the relevant technical terminology.
The unit may be delivered as a stand-alone package, but the recommendation is that centres plan
to integrate this unit with others. It is important for learners to understand the differences
between the operational and management levels of this area of study.
Lectures and seminars can be designed to deliver current knowledge and understanding of
professional facilities operations practice, together with an overview of the skills needed to
implement such knowledge and understanding in future practice. A programme of visits to
commercial establishments and visiting speakers will enhance the currency and vocational
relevance of this rapidly-developing industry. Learners should understand the importance of
keeping their knowledge of industry practice up to date. Case studies can be used to highlight
key issues, particularly to cover problem areas that may not occur naturally through visits or
visiting speakers.
Tutors should take care to deliver the knowledge and understanding of legal, health and safety
obligations at an appropriate level. This unit is an introductory unit for facilities operations and
it is important for learners to have an overview of the obligations rather than an in-depth study
of associated laws and regulations. More detailed study of safety management can be achieved
through the Higher Nationals in Facilities Management (Unit 4: Safety Management) if
required.
Assessment
Facilities operations is a service-based sector. Tutors and learners should be aware that delivery
of this unit is dependent on the context in which it is set. Learners should ensure that evidence
they generate to demonstrate learning outcomes is appropriate to the context in which they work
or intend to work.
Learners are expected to carry out personal research and investigation based on a facility of
their choosing. This should relate to their future career aspirations in order to add value to their
work. Investigative work can include research on the internet as well as with real facilities
operators. Learners should consider their capabilities regarding interview skills, particularly
when investigating the operational responsibilities of a facilities manager.
Evidence can be presented as a formal report or through a live presentation to a group, which
should include representatives from the facility investigated by the learner.
Links
This unit may have links with Unit 5: Common Law I, Unit 15: Managing Activities to Achieve
Results, Unit 16: Managing Communications, Knowledge and Information, Unit 21: Human
Resources Management, Unit 22: Managing Human Resources, Unit 25: English Legal System,
Unit 26: Business Law, Unit 27: Common Law II, Unit 48: Administrative Practices and
Procedures and Unit 57: Administrative Services.

429
Resources
It is important that centres establish supportive contact with a range of facilities operations in
the local area. Learners will need to make contact with such organisations to develop their
investigations into facilities operations.
Case studies will offer the opportunity to develop specific issues. Tutors should also gather a
bank of documentation used in facilities operations, such as marketing and administrative
materials.
Support materials
Textbooks
Alexander K Facilities Management: Theory and Practice (Taylor & Francis Books, 1996)
ISBN: 0419205802
Barrett P Facilities Management Towards Best Practice (Blackwell Science, 1995)
ISBN: 0632039418
Cole G Management Theory & Practice 5th Edition (Letts Educational, 1996)
ISBN: 1858051665
Spedding A A Handbook of Facilities Management (Guildford Press, 1994)
ISBN: 0582257425
Magazines and journals
Bulletin (BIFM)
Facilities Management Journal (Market Place Publishing)
Facilities Management UK (Heatherington Enterprises)
Facilities Management World (BIFM)
International Journal of Facilities Management (E & F N Spon)
Premises and Facilities Management (IMP Techpress)
Websites
The following internet websites can be useful in providing information and case-study
materials:
www.bifm.org.uk British Institute of Facilities Management
www.bized.ac.uk a business and economics service for students,
teachers and lecturers
www.dtlr.gov.uk Department of Transport, Local Government and
the Regions
www.etsu.com Energy Efficiency Enquiries Bureau
www.fmlink.com FM Link

430

431
Unit 62: Property Law
Learning hours: 60

Description of unit
This unit provides the learner with an understanding of the distinction between real and personal
property, and explains the two legal estates in land and the difference between legal and
equitable interests.
Also included in the unit is coverage of aspects of leases, mortgages, covenants and easements,
together with mention of recent developments on registration and commonhold.
1 Examine the meaning of real and personal property, land, and the classification of estates
2 Explore the law on mortgages and leases
3 Examine the meaning and effect of easements and covenants on land
4 Investigate recent developments in relation to commonhold and registration.

432
Content

1 Real and personal property and land
Real property: freehold, corporeal heritaments, incorporeal heritaments, chattels; leases
Personal property: chattels, choses in action, choses in possession
Land: fixtures, fittings, annexation, exceptions
Estates: freehold, eg feesimple, term of years absolute
Interests: legal, equitable
Registration of Land Charges: principles, mechanics, classes
Registered and Unregistered Land: distinction, categories of registration, the register
Co-ownership of Land: joint tenants and tenants in common
2 Mortgages and leases
Definition of leases: types
Essentials: exclusive possession, certainty of duration
Formalities: deeds, writing
Rights and duties: quiet enjoyment, not to derogate, repair and fitness, covenants
Termination: forfeiture, breach
Definition of mortgages: mortgagor, mortgagee
Creation: legal, equitable
Rights: mortgagor, mortgagee
3 Easements and covenants
Definition: easements, profits, examples
Essentials for existence of easements
Creation: statute, express grant, implied grant, presumed grant
Covenants on freehold land: running, benefit, burden, equitable rules, transfer, enforcement
Covenants on leasehold land: Landlord and Tenant (Covenants) Act 1995
4 Recent developments in commonhold and registration
Commonhold: meaning, Commonhold and Leasehold Reform Act 2002
Registration: Land Registration Act 2002

433

the ability to:
1 Examine the meaning of real
and personal property, land,
and the classification of
estates
explain the difference between real and personal
property and chattels
apply knowledge of land, estates, interests and
ownership in a given scenario
2 Explore the law on
mortgages and leases
demonstrate knowledge of the formalities needed to
create a lease
apply and evaluate the rights and duties of a tenant
and landlord in a given scenario
demonstrate knowledge of the ways in which a
mortgage can be created
apply and evaluate the rights and duties of a
mortgagor and mortgagee in a given scenario
3 Examine the meaning and
effect of easements and
covenants on land
define easements and profits
demonstrate knowledge of the creation of easements
define covenants
apply knowledge of transfer, enforcement and
discharge of covenants
4 Investigate recent
developments in relation to
commonhold and
registration
evaluate recent developments relating to
commonhold
evaluate recent developments relating to registration

434
Guidance

Delivery
This unit can be delivered in a variety of ways. It will be usual to start with outcome 1, but then
the outcomes could be covered in any order, as personal preference dictates.
Group work and other active methods of learning can be employed to enhance learners
experience and promote the required understanding. The use of case studies and specimen
documentation is to be particularly encouraged, both as a means of assessment and as part of the
normal learning process.
Assessment
A number of methods of assessment could be used in order to provide appropriate evidence of
the achievement of the required outcomes and assessment criteria. These methods could include:
group work to examine case study material
case study material requiring learners to analyse and apply property law
an observed individual presentation on selected issues.
In terms of grouping outcomes for assessment, it is suggested that each outcome might need to
be addressed by a separate assignment, or it may be possible to combine one or two of the
outcomes for assessment purposes
Links
This unit has links with Unit 25: English Legal System, Unit 26: Business Law and Unit 47:
Company Law.
Support materials
Textbooks
Gravells Land Law (Sweet & Maxwell, 1999) ISBN: 0421620102
Howarth N Land Law (Sweet & Maxwell, 2000) ISBN: 0421683201
Maudesley and Burn Land Law (Butterworths Law, 1998) ISBN: 0406896372
Thomas M Cases and Materials on Land Law (Blackstone, 2002) ISBN: 1841741876

435
Annex A
Qualification codes
Each qualification title, or suite of qualification titles with endorsements, is allocated two codes,
as are the individual units within a qualification.
QCA codes
The QCA National Qualifications Framework (NQF) code is known as a Qualification
Accreditation Number (QAN). Each unit within a qualification will also have a QCA NQF unit
code.
The QCA qualification and unit codes will appear on the learners final certification
documentation.
The QANs for qualifications in this publication are:
100/3368/3 Edexcel Level 4 BTEC Higher National Certificate in Business
100/3368/3 Edexcel Level 4 BTEC Higher National Certificate in Business (Finance)
100/3368/3 Edexcel Level 4 BTEC Higher National Certificate in Business (Marketing)
100/3368/3 Edexcel Level 4 BTEC Higher National Certificate in Business (Human
Resource Management)
100/3368/3 Edexcel Level 4 BTEC Higher National Certificate in Business (Law)
100/3368/3 Edexcel Level 4 BTEC Higher National Certificate in Business (E-Business
Strategies)
100/3368/3 Edexcel Level 4 BTEC Higher National Certificate in Business (Information
Technology)
100/3367/1 Edexcel Level 4 BTEC Higher National Diploma in Business
100/3367/1 Edexcel Level 4 BTEC Higher National Diploma in Business (Finance)
100/3367/1 Edexcel Level 4 BTEC Higher National Diploma in Business (Marketing)
100/3367/1 Edexcel Level 4 BTEC Higher National Diploma in Business (Human Resource
Management)
100/3367/1 Edexcel Level 4 BTEC Higher National Diploma in Business (Law)
100/3367/1 Edexcel Level 4 BTEC Higher National Diploma in Business (E-Business
Strategies)
100/3367/1 Edexcel Level 4 BTEC Higher National Diploma in Business (Information
Technology)
Edexcel codes
The Edexcel codes enable approval, registration, assessment and certification, they will appear
on documentation such as the Student Report Form (SRF) and the programme definition. The
Edexcel codes are not provided in this publication. The Edexcel codes will link automatically to
the QCA codes for certification purposes.
436
QCA and Edexcel codes
All QCA and Edexcel qualification and unit codes will be published in a booklet, which will be
made available on the Edexcel website. It will provide a comprehensive catalogue of all the
qualifications and units available to centres. It will be useful for centres when making future
decisions about centre choice units.

437
Annex B
Qualification Requirement
BTEC Higher Nationals in Business
This Qualification Requirement will be read in conjunction with overarching guidance from
Edexcel.
Rationale
The BTEC Higher Nationals in Business have been developed to focus on:
providing education and training for a range of careers in business such as administration,
personnel, marketing, finance, law, purchasing or management
providing a general business title to allow flexibility of study to meet local or specialist
needs
providing specialist options which meet the needs of the major functions in business and
allowing specialisation with career progression and professional recognition in mind
providing pathways which underpin much of the knowledge and understanding required for
the relevant NVQ level 4 units in Accounting, Management, Personnel, Procurement and
Administration
providing opportunities for learners to focus on the development of higher level skills in a
business context
providing opportunities for learners to develop a range of skills and techniques and
attributes essential for successful performance in working life
providing opportunities for individuals in employment to achieve a nationally recognised
level four vocationally specific qualification
providing opportunities for learners to gain a nationally recognised vocationally specific
qualification to enter employment in business or progress to higher education vocational
qualifications such as a full-time degree in Business or a related area.
Aims of the qualification
This qualification meets the needs of the above rationale by:
equipping individuals with knowledge, understanding and skills for success in a range of
administrative and management positions in business
providing specialist routes of study which relate to individual professions within the
business world in which learners are working or intend to seek employment
enabling progression to an undergraduate degree or further professional qualification in
Business or a related area
supporting individuals employed or entering employment in the business field
developing the individuals ability in the business field through effective use and
combination of the knowledge and skills gained in different parts of the programme
438
developing a range of skills and techniques, personal qualities and attributes essential for
successful performance in working life and thereby enabling learners to make an immediate
contribution to employment
providing flexibility, knowledge, skills and motivation as a basis for future studies and
career development in Business.
Mandatory curriculum
This will cover an introduction to the fundamental concepts and principles that underpin the
marketing process, examine the role and practice of marketing within the changing business
environment and include a concise and contemporary overview of marketing, together with the
knowledge and skills to underpin further study in the specialist field of marketing.
The ways in which finance is managed within a business organisation will be considered, the
different sources of finance evaluated and the use of financial information to make decisions
studied. Also included will be consideration of decisions relating to pricing and investment, as
well as budgeting, together with techniques for the evaluation of financial performance.
The internal nature of organisations from both a theoretical and practical viewpoint will be
considered and it is intended to develop an understanding of the behaviour of people within
organisations and the significance of organisational design and characteristics.
The objectives of organisations and the influence of stakeholders are included as is the
operation of organisations in relation to the local, national and global environment.
The law of contract and tort are included. Focus should be on the formation and operation of a
business contract, the practical application of standard-form contracts, and the tort of negligence
and issues of liability pertinent to business.
In business, good decision making requires the effective use of information so a variety of
sources and techniques for gathering, storing and presenting data are needed.
Computers are used in business for much of this and thus the appreciation and use of
appropriate IT software is central, particularly the use of spreadsheets and other software for
data analysis and the preparation of information.
Also included is an analysis of the impact of the external operating environment and the need to
plan organisational strategies to ensure effective business performance, together with an
introduction to the techniques and methods of research. A variety of research methodologies,
including the opportunity to carry out interventionist or action research should be considered
and a project report based on independent research into an area of professional business practice
of interest completed.
Optional curriculum
Finance pathway
This pathway will give learners an appreciation of financial planning and constraints. It will
cover the collection and analysis of cost data for management purposes, budgetary planning and
control, the preparation of financial statements for different types of business and legal and
regulatory provisions, the accounting and management control systems of a business and an
evaluation of their effectiveness, and the taxation of individuals and limited companies.

439
Management pathway
This pathway will cover the main functions of management including facilitating and managing
change and providing a vision for the future; managing financial resources, physical resources,
technology, the management of information and knowledge and providing products and
services; building relationships, developing networks and partnerships and managing people;
and leading business operations and meeting customer needs.
Marketing pathway
This pathway gives an overview of the marketing function. It will consider the purchase
decision-making process and the variables and situations influencing buyer behaviour as well as
exploring the marketing research process; the ability to determine specific promotional activities
in response to target audience; the application and evaluation of analytical tools to create a
marketing plan; and sales planning and operations and the different stages of the sales process.
Human Resource Management pathway
This pathway covers the main areas of human resource management including an introduction
to the human resource management role and function which is then built on to give a broader
perspective to human resource management practices; of the role of training and employee
development, including a consideration of government initiative aimed at developing skills; and
employment relationships in the UK including industrial conflict, the resolution of disputes and
negotiation.
Law pathway
This pathway considers the English legal system, legislation specifically relating to Business,
anti-competitive practices and their impact on business, further common law principles and the
impact of European Union legislation.
E-Business Strategies pathway
This pathway gives an overview of the main considerations when conducting business on the
internet. It gives an introduction to the scope of e-business, the benefits it can offer to business,
internet technology and the principles of good website design; applies marketing concepts to e-
business models as well as considering how internal business systems can support internet
marketing; the use of the internet for market research; how the internet has developed for
purchasing, supply chain management and other business applications; and it considers e-
business planning and implementation.
Information Technology pathway
This pathway covers various IT applications relevant to the world of business including the
issues associated with network use and the preliminary skills necessary to install and manage
networks, the technical and creative skills necessary to design, construct and manage an
effective website, the design and evaluation of a prototype multimedia system using an iterative
approach, the ways in which data can be processed and the applications that support
organisations, and the capacity of an information system to meet the needs of a user.
440
Further specialist units (available both to learners taking a general Higher National in Business
and to learners taking a pathway, especially at diploma level) develop and apply the knowledge
and understanding of the connections between specialist areas and the wider world of business.
Some of these units have been designed to complement each other or to complement units in the
pathways, for example units covering aspects of finance, law or management. However, any
specialist unit can be chosen in isolation.
Professional body recognition
Exemptions will be available from various professional bodies in the fields of accounting,
management, law and marketing.
Links to National Standards
There is the opportunity for programmes in Business to provide some of the underpinning
knowledge, understanding and skills for the level 4 NVQ in Management, Accounting,
Personnel, Administration and Procurement.
Entry prerequisites
There are no particular entry requirements for this qualification, Please refer to Edexcel
guidance on entry requirements (to be developed). Candidates who enter with at least one of the
following are likely to benefit more readily from a Business programme:
a BTEC National, Advanced GNVQ or AVCE in Business or in a related subject (eg
Tourism, Hospitality and Catering)
at least one GCE A Level pass in a relevant subject with appropriate supporting passes at
GCSE
an Access to Higher Education Certificate awarded by an approved Further Education
institution
appropriate work experience.
Higher level skills and abilities
Learners will be expected to develop the following skills during the programme of study:
cognitive skills of critical thinking, analysis and synthesis
effective problem solving and decision making using appropriate quantitative and
qualitative skills including identifying, formulating and solving business problems
effective communication, oral and in writing, using a range of media widely used in
business, eg the preparation and presentation of business reports
numeric and quantitative skills including data analysis, interpretation and extrapolation. The
use of models of business problems and phenomena
effective use of communication and information technology for business applications
effective self-management in terms of time, planning and behaviour, motivation, self-
starting, individual initiative and enterprise
developing an appropriate learning style
self-awareness, openness and sensitivity to diversity in terms of people, cultures, business
and management issues

441
effective performance within a team environment including: leadership, team-building,
influencing and project-management skills
interpersonal skills of effective listening, negotiating, persuading and presentation
abilities to conduct research into business and management issues.
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Annex C
Wider curriculum mapping

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Social and cultural 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3

Environmental issues 3 3 3 3 3 3 3 3 3
Health and safety
considerations
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European
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U
n
i
t

3
5

U
n
i
t

3
6

U
n
i
t

3
7

U
n
i
t

3
8

U
n
i
t

3
9

Spiritual 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3
Moral and ethical 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3
Social and cultural 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3

Environmental issues 3 3 3 3 3 3
Health and safety
considerations
3 3 3 3 3 3
European
developments
3 3 3 3 3 3 3 3 3 3 3

445

Issue
U
n
i
t

4
0

U
n
i
t

4
1

U
n
i
t

4
2

U
n
i
t

4
3

U
n
i
t

4
4

U
n
i
t

4
5

U
n
i
t

4
6

U
n
i
t

4
7

U
n
i
t

4
8

U
n
i
t

4
9

U
n
i
t

5
0

U
n
i
t

5
1

U
n
i
t

5
2

U
n
i
t

5
3

U
n
i
t

5
4

U
n
i
t

5
5

U
n
i
t

5
6

U
n
i
t

5
7

U
n
i
t

5
8

Spiritual 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3
Moral and ethical 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3
Social and cultural 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3

Environmental issues 3 3 3 3 3 3
Health and safety
considerations
3 3 3 3 3 3 3 3
European
developments
3 3 3

446

447
Annex D
Mapping with NVQs
The following grid maps the knowledge covered in the Edexcel Level 4 NVQ in Higher Nationals in Business against the underpinning knowledge of the NVQ
Administration.
KEY
3 indicates that the Edexcel Level 4 Higher Nationals in Business covers parts of the underpinning knowledge of relevant NVQ units.

Unit number
NVQ Standards for Administration:
U
n
i
t

2

U
n
i
t

3

U
n
i
t

6

U
n
i
t

8

U
n
i
t

9

U
n
i
t

1
0

U
n
i
t

1
3

U
n
i
t

1
4

U
n
i
t

1
5

U
n
i
t

1
6

U
n
i
t

4
4

U
n
i
t

4
8

U
n
i
t

5
7

301: Maintain effective working relationships 3 3
401: Develop administrative services 3 3
402: Implement, monitor and maintain
3 3
403: Prepare and co-ordinate operational plans 3 3 3
404: Manage and continuously develop your own
practice
3 3

405: Provide information to support decision
making
3 3 3
3
3
406: Provide the facilities for administrative
services

407: Provide support for the planning and
implementation of administrative services

3
3
408: Manage your organisations facilities

448
409: Negotiate and manage agreements for supplies

449

Unit number
NVQ Standards for Administration:
U
n
i
t

2

U
n
i
t

3

U
n
i
t

6

U
n
i
t

8

U
n
i
t

9

U
n
i
t

1
0

U
n
i
t

1
3

U
n
i
t

1
4

U
n
i
t

1
5

U
n
i
t

1
6

U
n
i
t

4
4

U
n
i
t

4
8

U
n
i
t

5
7

410: Contributing to the planning and allocation of
resources
3
411: Support and record formal meetings
412: Facilitate meetings 3
413: Develop teams and individuals to enhance
performance
3 3 3
414: Manage the performance of teams and
individuals
3 3
415: Select personnel for activities 3
416: Monitor your organisations compliance with
its legal, regulatory, social, environmental and
ethical responsibilities

417: Monitor procedures to control risks to health
and safety
3 3
418: Manage the use of physical resources 3
419: Manage the use of financial resources 3 3 3
420: Maintaining financial records and preparing
accounts
3 3
421: Preparing reports and returns

450
The following grid maps the knowledge covered in the Edexcel Level 4 Higher Nationals in Business against the underpinning knowledge of the NVQ E-Skills.
KEY

Unit number
NVQ Standards for E-Skills:
U
n
i
t

1
3

U
n
i
t

2
8

U
n
i
t

2
9

U
n
i
t

3
0

U
n
i
t

3
1

U
n
i
t

3
2

U
n
i
t

3
3

U
n
i
t

3
4

U
n
i
t

3
5

U
n
i
t

3
6

U
n
i
t

3
7

U
n
i
t

3
8

U
n
i
t

3
9

U
n
i
t

4
2

U
n
i
t

4
3

Develop personal and organisational effectiveness 3 3 3
Interpersonal and written communication 3 3 3
Performance management 3
Quality management of ICT products and services 3 3 3 3 3 3 3 3
Remote support for products or services
Security of ICT systems 3 3 3
Systems management 3 3 3 3 3 3
Working with ICT hardware and equipment 3 3 3 3 3 3 3 3

451
The following grid maps the knowledge covered in the Edexcel Level 4 Higher Nationals in Business against the underpinning knowledge of the NVQ Management.
KEY

Unit number
2004 NVQ Standards for
Management:
U
n
i
t

1

U
n
i
t

2

U
n
i
t

3

U
n
i
t

6

U
n
i
t

7

U
n
i
t

8

U
n
i
t

9

U
n
i
t

1
2

U
n
i
t

1
3

U
n
i
t

1
4

U
n
i
t

1
5

U
n
i
t

1
6

U
n
i
t

1
7

U
n
i
t

1
8

U
n
i
t

1
8

U
n
i
t

1
9

U
n
i
t

2
0

U
n
i
t

2
1

U
n
i
t

2
2

U
n
i
t

2
3

U
n
i
t

2
9

A Managing self and
personal skills

A1 Manage your own
resources

A2 Manage your own
resources and professional
development
3

A3 Develop your personal
networks
3
3

B Providing direction
B1 Develop and implement
operational plans for your
area of responsibility
3 3

B2 Map the environment in
which your organisation
operates

B3 Develop a strategic
business plan for your
organisation
3

452

Unit number
Management:
U
n
i
t

1

U
n
i
t

2

U
n
i
t

3

U
n
i
t

6

U
n
i
t

7

U
n
i
t

8

U
n
i
t

9

U
n
i
t

1
2

U
n
i
t

1
3

U
n
i
t

1
4

U
n
i
t

1
5

U
n
i
t

1
6

U
n
i
t

1
7

U
n
i
t

1
8

U
n
i
t

1
8

U
n
i
t

1
9

U
n
i
t

2
0

U
n
i
t

2
1

U
n
i
t

2
2

U
n
i
t

2
3

U
n
i
t

2
9

B4 Put the strategic business
plan into action

B5 Provide leadership for
your team
3 3 3

B6 Provide leadership in your

your organisation

B8 Ensure compliance with
legal, regulatory, ethical
and social requirements
3 3
B9 Develop the culture of
your organisation

B10 Manage risk 3
B11 Promote diversity in your

organisation

C Facilitating change
C1 Encourage innovation in
your team

453

Unit number
Management:
U
n
i
t

1

U
n
i
t

2

U
n
i
t

3

U
n
i
t

6

U
n
i
t

7

U
n
i
t

8

U
n
i
t

9

U
n
i
t

1
2

U
n
i
t

1
3

U
n
i
t

1
4

U
n
i
t

1
5

U
n
i
t

1
6

U
n
i
t

1
7

U
n
i
t

1
8

U
n
i
t

1
8

U
n
i
t

1
9

U
n
i
t

2
0

U
n
i
t

2
1

U
n
i
t

2
2

U
n
i
t

2
3

U
n
i
t

2
9

your area of responsibility
3
your organisation
3
C4 Lead change 3 3
C5 Plan change 3
C6 Implement change 3
D Working with people
D1 Develop productive
working relationships with
colleagues
3 3 3 3
colleagues and
stakeholders

D3 Recruit, select and keep
colleagues
3 3 3
D4 Plan the workforce
D5 Allocate and check work
in your team
3

454

Unit number
Management:
U
n
i
t

1

U
n
i
t

2

U
n
i
t

3

U
n
i
t

6

U
n
i
t

7

U
n
i
t

8

U
n
i
t

9

U
n
i
t

1
2

U
n
i
t

1
3

U
n
i
t

1
4

U
n
i
t

1
5

U
n
i
t

1
6

U
n
i
t

1
7

U
n
i
t

1
8

U
n
i
t

1
8

U
n
i
t

1
9

U
n
i
t

2
0

U
n
i
t

2
1

U
n
i
t

2
2

U
n
i
t

2
3

U
n
i
t

2
9

D6 Allocate and monitor the
progress and quality of
work in your area of
responsibility
3
D7 Provide learning
opportunities for
colleagues
3
E Using resources
E1 Manage a budget 3
E2 Manage finance for your

E3 Obtain additional finance
for the organisation
3
E4 Promote the use of
technology within your
organisation
3
E5 Ensure your own action
reduce risks to health and
safety
(ENTO unit A)
3
E6 Ensure health and safety
requirements are met in
3

455

Unit number
Management:
U
n
i
t

1

U
n
i
t

2

U
n
i
t

3

U
n
i
t

6

U
n
i
t

7

U
n
i
t

8

U
n
i
t

9

U
n
i
t

1
2

U
n
i
t

1
3

U
n
i
t

1
4

U
n
i
t

1
5

U
n
i
t

1
6

U
n
i
t

1
7

U
n
i
t

1
8

U
n
i
t

1
8

U
n
i
t

1
9

U
n
i
t

2
0

U
n
i
t

2
1

U
n
i
t

2
2

U
n
i
t

2
3

U
n
i
t

2
9

E7 Ensure an effective
organisational approach to
health and safety
3
F Achieving results
F1 Manage projects 3
F2 Manage a programme of
complementary projects

F3 Manage business
processes

F4 Develop and review a
framework for marketing
3 3 3 3 3
F5 Resolve customer service
problems
(unit 4 in Customer
Service NOS at level 2)

F6 Monitor and solve
customer service problems
(unit 4 in Customer

F7 Support customer service
improvements
(unit 5 in Customer

456

Unit number
Management:
U
n
i
t

1

U
n
i
t

2

U
n
i
t

3

U
n
i
t

6

U
n
i
t

7

U
n
i
t

8

U
n
i
t

9

U
n
i
t

1
2

U
n
i
t

1
3

U
n
i
t

1
4

U
n
i
t

1
5

U
n
i
t

1
6

U
n
i
t

1
7

U
n
i
t

1
8

U
n
i
t

1
8

U
n
i
t

1
9

U
n
i
t

2
0

U
n
i
t

2
1

U
n
i
t

2
2

U
n
i
t

2
3

U
n
i
t

2
9

F8 Work with others to
improve customer service
(unit 3 in Customer

F9 Build your organisations
understanding of its
market and customers

F10 Develop a customer
focussed organisation

F11 Manage the achievement
of customer satisfaction

F12 Improve organisational
performance
3 3

457

Unit number
Management:
U
n
i
t

3
0

U
n
i
t

3
1

U
n
i
t

3
2

U
n
i
t

3
3

U
n
i
t

3
4

U
n
i
t

3
5

U
n
i
t

3
6

U
n
i
t

3
7

U
n
i
t

3
8

U
n
i
t

3
9

U
n
i
t

4
4

U
n
i
t

4
5

U
n
i
t

4
8

U
n
i
t

5
2

U
n
i
t

5
3

U
n
i
t

5
5

U
n
i
t

5
6

U
n
i
t

5
7

U
n
i
t

6
0

U
n
i
t

6
1

A Managing self and
personal skills

A1 Manage your own
resources
3
A2 Manage your own
resources and professional
development
3
A3 Develop your personal
networks
3
B Providing direction
B1 Develop and implement
operational plans for your
3
B2 Map the environment in
which your organisation
operates

B3 Develop a strategic
business plan for your
organisation
3 3
B4 Put the strategic business
plan into action

your team
3

458

Unit number
Management:
U
n
i
t

3
0

U
n
i
t

3
1

U
n
i
t

3
2

U
n
i
t

3
3

U
n
i
t

3
4

U
n
i
t

3
5

U
n
i
t

3
6

U
n
i
t

3
7

U
n
i
t

3
8

U
n
i
t

3
9

U
n
i
t

4
4

U
n
i
t

4
5

U
n
i
t

4
8

U
n
i
t

5
2

U
n
i
t

5
3

U
n
i
t

5
5

U
n
i
t

5
6

U
n
i
t

5
7

U
n
i
t

6
0

U
n
i
t

6
1

B6 Provide leadership in your

your organisation

B8 Ensure compliance with
legal, regulatory, ethical
and social requirements
3 3 3
B9 Develop the culture of
your organisation

B10 Manage risk

organisation

C Facilitating change
your team


your organisation

459

Unit number
Management:
U
n
i
t

3
0

U
n
i
t

3
1

U
n
i
t

3
2

U
n
i
t

3
3

U
n
i
t

3
4

U
n
i
t

3
5

U
n
i
t

3
6

U
n
i
t

3
7

U
n
i
t

3
8

U
n
i
t

3
9

U
n
i
t

4
4

U
n
i
t

4
5

U
n
i
t

4
8

U
n
i
t

5
2

U
n
i
t

5
3

U
n
i
t

5
5

U
n
i
t

5
6

U
n
i
t

5
7

U
n
i
t

6
0

U
n
i
t

6
1

C4 Lead change
C5 Plan change
C6 Implement change
D Working with people
colleagues
3
colleagues and
stakeholders
3
D3 Recruit, select and keep
colleagues
3
D4 Plan the workforce
D5 Allocate and check work
in your team

D6 Allocate and monitor the
progress and quality of
work in your area of
responsibility

D7 Provide learning
opportunities for
colleagues

460

Unit number
Management:
U
n
i
t

3
0

U
n
i
t

3
1

U
n
i
t

3
2

U
n
i
t

3
3

U
n
i
t

3
4

U
n
i
t

3
5

U
n
i
t

3
6

U
n
i
t

3
7

U
n
i
t

3
8

U
n
i
t

3
9

U
n
i
t

4
4

U
n
i
t

4
5

U
n
i
t

4
8

U
n
i
t

5
2

U
n
i
t

5
3

U
n
i
t

5
5

U
n
i
t

5
6

U
n
i
t

5
7

U
n
i
t

6
0

U
n
i
t

6
1

E Using resources
E1 Manage a budget
E2 Manage finance for your

E3 Obtain additional finance
for the organisation

E4 Promote the use of
technology within your
organisation
3 3 3 3 3 3 3 3 3 3 3 3 3 3
E5 Ensure your own action
reduce risks to health and
safety
(ENTO unit A)

E6 Ensure health and safety
requirements are met in

E7 Ensure an effective
organisational approach to
health and safety
3
F Achieving results
F1 Manage projects 3 3 3 3
F2 Manage a programme of
complementary projects
3

461

Unit number
Management:
U
n
i
t

3
0

U
n
i
t

3
1

U
n
i
t

3
2

U
n
i
t

3
3

U
n
i
t

3
4

U
n
i
t

3
5

U
n
i
t

3
6

U
n
i
t

3
7

U
n
i
t

3
8

U
n
i
t

3
9

U
n
i
t

4
4

U
n
i
t

4
5

U
n
i
t

4
8

U
n
i
t

5
2

U
n
i
t

5
3

U
n
i
t

5
5

U
n
i
t

5
6

U
n
i
t

5
7

U
n
i
t

6
0

U
n
i
t

6
1

F3 Manage business
processes

F4 Develop and review a
framework for marketing
3 3
F5 Resolve customer service
problems
(unit 4 in Customer

F6 Monitor and solve
customer service problems
(unit 4 in Customer

F7 Support customer service
improvements
(unit 5 in Customer

F8 Work with others to
improve customer service
(unit 3 in Customer
3
F9 Build your organisations
understanding of its
market and customers
3 3 3

462

Unit number
Management:
U
n
i
t

3
0

U
n
i
t

3
1

U
n
i
t

3
2

U
n
i
t

3
3

U
n
i
t

3
4

U
n
i
t

3
5

U
n
i
t

3
6

U
n
i
t

3
7

U
n
i
t

3
8

U
n
i
t

3
9

U
n
i
t

4
4

U
n
i
t

4
5

U
n
i
t

4
8

U
n
i
t

5
2

U
n
i
t

5
3

U
n
i
t

5
5

U
n
i
t

5
6

U
n
i
t

5
7

U
n
i
t

6
0

U
n
i
t

6
1

F10 Develop a customer
focussed organisation
3
F11 Manage the achievement
of customer satisfaction
3
F12 Improve organisational
performance
3

463
The following grid maps the knowledge covered in the Edexcel Level 4 Higher Nationals in
Business against the underpinning knowledge of the NVQ Personnel.
KEY
3 indicates that the Edexcel Level 4 Higher Nationals in Business covers parts of the
underpinning knowledge of relevant NVQ units.

Unit Number
NVQ Standards for
Personnel:
U
n
i
t

3

U
n
i
t

1
3

U
n
i
t

2
1

U
n
i
t

2
2

U
n
i
t

2
3

U
n
i
t

2
4

P15: Enable and support others
to carry out personnel
services
3
P18: Monitor and evaluate the
delivery of personnel
services to customers

P24: Design, deliver and
evaluate procedures to
promote equality of
opportunity and diversity
3 3
evaluate employee and
stakeholder
communication procedures
3
G3: Evaluate and develop own
practice
3
B3 (MSC): Manage the use of
financial resources

evaluate changes to
organisational structure

P14: Contribute to the design,
delivery and evaluation of
work practices
3
evaluate recruitment
procedures
3
evaluate selection
procedures
3
evaluate employee reward
and benefits procedures
3

464

Unit number
NVQ Standards for
Personnel:
U
n
i
t

3

U
n
i
t

1
3

U
n
i
t

2
1

U
n
i
t

2
2

U
n
i
t

2
3

U
n
i
t

2
4

evaluate employee support
procedures
3 3 3 3
evaluate the delivery of
personnel procedures in
international contexts

P2: Develop a strategy and
plan to provide all people
resources for the
organisation
3 3
evaluate grievance and
dismissal procedures
3
evaluate redundancy
procedures
3
evaluate retirement and
resignation procedures
3
evaluate negotiation and
collective bargaining
procedures
3
P8: Develop a strategy and
plan for the promotion of
equality of opportunity and
diversity
3 3
C4: (MSC) Create effective
working relationships
3 3 3
evaluate learning and
development procedures
3
evaluate performance
management procedures

465
Business against the underpinning knowledge of the NVQ Project Management.
KEY
3 indicates that the Edexcel Level 4 Higher Nationals in Business covers parts of the
underpinning knowledge of relevant NVQ units.

Unit number
NVQ Standards for Project
Management:
U
n
i
t

1
4

U
n
i
t

1
5

U
n
i
t

4
2

U
n
i
t

5
6

PM 10: Develop operational
objectives for the
project
3 3
PM 11: Prepare the
specification of
requirements

PM 17: Develop a detailed
schedule for the project
3
PM 19: Identify perceived risks
and evaluate options
for their control

PM 26: Verify contract
arrangements are in
place

PM 33: Comply with
regulatory
requirements

PM 39: Co-ordinate, monitor
and control project
schedules
3
PM 40: Monitor income and
expenditure
3
PM 41: Ensure quality in the
implementation of the
project
3 3
PM 42: Control hand-over of
responsibility for the
project

PM 45: Ensure the completion
of project activities

PM 27: Manage the
performance of the
team allocating work
3

466

Unit number
Management:
U
n
i
t

1
4

U
n
i
t

1
5

U
n
i
t

4
2

U
n
i
t

5
6

PM 28: Manage the
performance of the
team agreeing
objectives and work
plans
3
PM 2: Manage the
performance of the
team assessing
performance
3
PM 30: Mange the
performance of the
team providing
feedback on the teams
performance
3
PM 35: Lead the project team 3
PM 37: Develop solutions to
project problems

PM 38: Maintain
communication with
project stakeholders

PM 48: Manage the
performance of teams
and individuals
allocate work to teams
and individuals
3 3
PM 49: Manage the
and individuals agree
objectives and work
plans with teams and
individuals
3 3
PM 50: Manage the
and individuals
assess the performance
of teams and
individuals
3
PM 51: Manage the
and individuals
3 3

467

Unit number
Management:
U
n
i
t

1
4

U
n
i
t

1
5

U
n
i
t

4
2

U
n
i
t

5
6

PM 12: Estimate and specify
resources required for
the project

PM 14: Develop a work
breakdown structure
for the project

PM 15: Specify activities for
project schedules
3
PM 36: Monitor and adjust
activities, resources
and plans
3
PM 18: Monitor risks and
review the
effectiveness of
measures for
controlling them

PM 20: Monitor risks and
review contingency
plans and actions

PM 47: Identify and analyse
hazards and specify
actions to control risk
to people, property and
the environment

PM 16: Recommend the means
of procuring resources
for projects

PM 23: Recommend and agree
the type and conditions
of contract

PM 24: Develop contractual
arrangements

PM 25: Review and select
tenders

PM 43: Obtain and evaluate
feedback on project
performance
3
PM 46: Evaluate projects 3

468
Business against the underpinning knowledge of the NVQ Procurement.
KEY
indicates that the Edexcel Level 4 Higher Nationals in Business covers parts of the underpinning
knowledge of relevant NVQ units.

Unit
number
NVQ Standards for
Procurement:
U
n
i
t

4
0

U
n
i
t

4
1

013: Establish and improve
procurement systems
3
017: Provide commercial
input to decision-making
3
018: Develop the
effectiveness of
procurement operations
3 3
019: Determine conditions in
the market for supplies
3 3
020: Establish and maintain
strategic sourcing
arrangements
3
021: Establish and evaluate
current and future
requirements for supply
3
022: Establish supplier status
and secure improvements
in supplier performance
3 3
024: Let contracts for the
supply of goods and
services

026: Establish contract
strategy and plan

027: Administer the contract 3
028: Improve contract
performance
3
037: Plan and reconcile
inventory and materials
requirements and
capacity
3
038: Define and establish
production schedules

039: Capture and forecast
demand
3 3

469

Unit
number
NVQ Standards for
Procurement:
U
n
i
t

4
0

U
n
i
t

4
1

040: Manage materials
requirements

041: Optimise inventory
levels
3
042: Determine inventory
service levels

048: Exchange information to
solve problems and make
decisions

049: Initiate and implement
change and improvement
in services, products and
systems

050: Secure effective resource
allocation for activities
and projects

051: Develop teams,
individuals and self to
enhance performance

052: Plan, allocate and
evaluate work carried out
by teams, individuals and
self

053: Recommend, monitor
and control the use of
resources

054: Contribute to the
recruitment and selection
of personnel

547rl200904\LT\PD\LEVELS 1-4 2003\B014393 HN IN BUSINESS L4 ISS2.DOC.1369/12

Further copies of this publication are available from
Edexcel Publications, Adamsway, Mansfield, Notts, NG18 4FN

Telephone: 01623 467467
Fax: 01623 450481
Email: publications@linneydirect.com

Order Code B014393 September 2004

For more information on Edexcel and BTEC qualifications please contact
Customer Services on 0870 240 9800
or http://enquiries.edexcel.org.uk
or visit our website: www.edexcel.org.uk

London Qualifications Limited, trading as Edexcel. Registered in England and Wales No. 4496750
Registered Office: One90 High Holborn, London WC1V 7BH

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