BTEC

Edexcel Level 2 BTEC First Certificate and Edexcel Level 2 BTEC First Diploma in Business
For first teaching from September 2006

January 2006

Specification

Edexcel Level 2 BTEC First Certificate and Edexcel Level 2 BTEC First Diploma in

Business

Edexcel Limited 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 brands. 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 (calls may be recorded for training purposes) or visit our website at www.edexcel.org.uk

References to third party material made in this specification are made in good faith. Edexcel 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 Jim Dobson Prepared by Jeremy Curtis Publications Code BF017259 All the material in this publication is copyright © Edexcel Limited 2006

Essential principles for delivering a BTEC
This specification contains the rules and regulations along with the units and associated guidance to enable centres to deliver a programme of learning for the Edexcel Level 2 BTEC First Certificate and Edexcel Level 2 BTEC First Diploma in Business. The qualification structures set out the permitted combination of units learners need to complete the qualification. Each unit sets out the intended outcomes along with the content and also includes advice and guidance regarding appropriate delivery and assessment strategies. The following generic principles need to be adhered to in order that a BTEC qualification is delivered to the appropriate standard. • The specification provides necessary information for the successful delivery and achievement of the units and the qualification as a whole. Consequently, the specification is of importance to the learner and tutor alike. The individual units may be delivered and studied in isolation but the learner and the deliverer should have access to the full information provided to support the programme of learning. Centres need to make regular use of the Edexcel website (www.edexcel .org.uk) to ensure that they have the most up to date information. In particular, the requirements relating to the external verification of the qualification receive regular updates and appropriate information for centres is posted on the website. It is the responsibility of the centre to ensure that they are familiar with the latest BTEC NQF Level 2/3 (including Short Courses at Levels 1–3) Handbook and that they implement any related policy documentation which may have been posted on the website. This specification contains details of the assessment and quality assurance procedures. It includes advice about Edexcel’s policy regarding access to its qualifications, the design of programmes of study and delivery modes. Centres must ensure that they conform to the policies outlined in the specification. Centres are required to recruit learners to BTEC qualifications with integrity. This includes 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 applicant’s potential and make a professional judgement about their ability to be able to successfully complete the programme of study and achieve the qualification. Centres are required to use the information in this specification to develop and deliver a programme of learning that will enable learners to achieve the grading criteria stipulated in the unit grading grids. Assessment assignments should ensure coverage of all criteria in the unit as set out in the Grading Grid for each unit. Assignments constructed by centres should be valid, reliable and fit for purpose, building on the application of the grading criteria. Centres should use a variety of assessment methods, including case studies, assignments and work-based assessments, along with projects, performance observation and time-constrained assessments. Further guidance relating to the setting of assignments is available in the Getting Started publication which is available on the Edexcel website (www.edexcel.org.uk). Centres are encouraged to place emphasis on the practical application of the grading criteria, providing wherever possible a realistic scenario for learners to work with, and making maximum use of, practical activities and work experience. The creation of assignments that are fit for purpose is vital to the learner’s achievement and their importance cannot be over emphasised.

uk). This specification is accredited by the Qualifications and Curriculum Authority until 31 August 2009.uk/.org. The QANs for these qualifications are listed in Annexe A. and for certification of learners until 31 August 2011. centre approval before they can apply for approval to offer the programme. The qualification titles feature in the funding lists published annually by the DfES and the regularly updated website www. The NQF Qualification Accreditation Numbers (QANs) should be used by centres when they wish to seek public funding for their learners. Edexcel may update this specification during its period of accreditation and centres need to refer to the Edexcel website for the latest issue of the specification. When a centre applies for approval to offer a BTEC qualification they will be required to enter into an ‘approvals agreement’. The approvals agreement is a formal commitment by the head or principal of a centre to meet all the requirements of the specification and linked codes or regulations. . Details of the qualification units can be seen on the QCA Open Qualifications database (www.dfes.• These qualifications have been accredited to the National Qualifications Framework (NQF) and are eligible for public funding as determined by the DfES under Sections 96 and 97 of the Learning and Skills Act 2000. and be granted.gov.qca. • • Centres that have not previously offered BTEC qualifications must apply for.

Contents What are BTEC Firsts? BTEC First Diploma BTEC First Certificate National Occupational Standards Key features of the BTEC Firsts in Business Rationale of the BTEC Firsts in Business 1 1 1 1 2 2 Structure of the qualification Edexcel Level 2 BTEC First Certificate in Business Edexcel Level 2 BTEC First Diploma in Business 3 3 4 Unit format Units Unit 1: Exploring Business Purposes Unit 2: Developing Customer Relations Unit 3: Investigating Financial Control Unit 4: Business Communication Unit 5: People in Organisations Unit 6: Providing Business and Administration Support Unit 7: Personal Selling Unit 8: Doing Business Online Unit 9: Exploring Business Enterprise Unit 10: Starting a Small Business 5 7 9 17 27 35 43 53 65 77 85 95 Assessment and grading Quality assurance Approval Risk assessment Internal verification External verification 105 106 106 106 106 106 .

Calculation of the qualification grade Awarding a qualification grade School and College Achievement and Attainment Tables (SCAAT) equivalence 107 107 108 Programme design and delivery Mode of delivery Resources Delivery approach Accreditation of Prior Learning (APL) Meeting local needs Limitations on variations from standard specifications 109 109 109 110 110 110 110 Access and recruitment Restrictions on learner entry Access arrangements and special considerations 111 111 111 The Edexcel BTEC Qualification Framework for the business sector 112 Further information Useful publications How to obtain National Occupational Standards 113 113 114 Professional development and training Annexe A QCA codes 114 115 115 Annexe B Grading domains 117 117 Annexe C Key skills Key skills mapping – summary of opportunities suggested in each unit 119 119 120 Annexe D National Occupational Standards/mapping with NVQs 121 121 Annexe E Wider curriculum mapping 123 123 .

BTEC First Certificate The Edexcel Level 2 BTEC First Certificate is a 180 guided learning hour qualification which offers a bite-sized opportunity for learners to experience a vocational qualification. colleges and training centres. The BTEC First Certificate offers a focused vocational qualification for learners who wish to follow a shorter programme of study related to an aspect of employment that they might wish to move into. which in turn form the basis of the National Vocational Qualifications (NVQs). BTEC Firsts do not purport to deliver occupational competence in the sector. understanding and skills necessary to prepare learners for employment and/or to provide career development opportunities for those already in work. where these are appropriate. Consequently they provide a course of study for fulltime or part-time learners in schools. the BTEC First Diploma offers a focused qualification for learners who wish to follow a programme of study that is directly related to their work experience. National Occupational Standards BTEC Firsts are designed to relate to the National Occupational Standards (NOS) in the sector. or a taster qualification which can extend their programme of study and provide an initial experience of a vocational area. learners may progress into or within employment and/or continue their study in the vocational area. or to an aspect of employment that they wish to move into in due course. This will also enable learners to progress to a higher level qualification relevant to the sector.What are BTEC Firsts? BTEC qualifications are designed to provide specialist work-related qualifications in a range of sectors. BF017259 Specification – Edexcel Level 2 BTEC First Certificate and BTEC First Diploma in Business – Issue 1 – January 2006 1 . understanding and competency necessary for employment within the sector. as well as developing practical skills in preparation for work and possible achievement of NVQs in due course. However. Equally. and are supported by the relevant Standards Setting Body (SSB) or Sector Skills Council (SSC). The Edexcel Level 2 BTEC Firsts in Business relate to: • • • Edexcel Level 2 NVQ in Administration Edexcel Level 2 NVQ in Customer Service Edexcel Level 3 NVQ in Business Start Up. which should be demonstrated in a work context. They link to the National Occupational Standards for the sector. As such the BTEC First Diploma offers a qualification which can extend a learner’s programme of study and provide vocational emphasis within their programme of study. On successful completion of a BTEC First qualification. Each unit identifies relevant aspects of the NOS that are addressed by the outcomes and content of the unit. BTEC First Diploma The Edexcel Level 2 BTEC First Diploma is a 360 guided learning hour qualification comprising core and specialist units which cover aspects of knowledge. They have been developed to provide the knowledge. the qualifications provide much of the underpinning knowledge for the NOS.

taking into account industry standards for behaviour and performance.Key features of the BTEC Firsts in Business The BTEC Firsts in Business have been designed to develop knowledge and understanding in the business sector. which is available at both Level 2 and Level 3. focusing on providing opportunities: • • for learners to acquire technical and employability skills. Evidence for assessment may be generated through a range of diverse activities including assignment and project work. which supports development of basic financial principles business administration. which helps learners to understand the personal selling process aspects of e-business and how these can support businesses developing e-business opportunities enterprise and business start-up. Learners have the opportunity to develop skills to support them as they build relationships with a wide variety of customers internal and external to a range of business environments. Customer Service or Retail for learners who are employed in business organisations to develop their underpinning knowledge and skills for learners to develop the major key skills and the wider key skills in context for course teams to develop their own innovative courseware that will enthuse and motivate learners for course teams to develop the knowledge. which supports development of practical administration skills including office systems and equipment. The assessment approach of the BTEC Firsts in Business allows learners to receive feedback on their progress throughout the course as they provide evidence towards the grading criteria. workplace assessment. Learners should be encouraged to take responsibility for their own learning and achievement. Delivery strategies should reflect the nature of work within the business sector by encouraging learners to research and carry out assessment in the workplace or in simulated working conditions wherever possible. case studies. meeting support and filing systems personal selling. role play and oral presentation. Specialist areas also include: • • • • • finance. understanding and skills of learners to meet the needs of the business sector. including interpersonal skills and customer service. knowledge and understanding which are transferable and will enable individuals to meet changing circumstances for learners to gain a nationally recognised vocational qualification to enter employment of progress to other vocational qualifications such as: • • • • BTEC National Award/Certificate/Diploma in Business or Personal and Business Finance NVQs or Apprenticeship programmes in Administration. 2 BF017259 – Specification – Edexcel Level 2 BTEC First Certificate and BTEC First Diploma in Business – Issue 1 – January 2006 . Rationale of the BTEC Firsts in Business The BTEC Firsts in Business have been designed to address the needs of level 2 learners in key areas.

Structure of the qualification Edexcel Level 2 BTEC First Certificate in Business The Edexcel Level 2 BTEC First Certificate in Business consists of one core unit plus two specialist units that provide for a combined total of 180 guided learning hours (GLH) for the completed qualification. Edexcel Level 2 BTEC First Certificate in Business Unit 1 Unit 2 3 4 5 6 7 8 9 10 Core units Exploring Business Purposes Specialist units Developing Customer Relations Investigating Financial Control Business Communication People in Organisations Providing Business and Administration Support Personal Selling Doing Business Online Exploring Business Enterprise* Starting a Small Business* 60 60 60 60 60 60 60 60 60 2 2 2 2 2 2 2 2 3 GLH 60 Level 2 *Learners can study for either Unit 9: Exploring Business Enterprise or Unit 10: Starting a Small Business but not both. BF017259 Specification – Edexcel Level 2 BTEC First Certificate and BTEC First Diploma in Business – Issue 1 – January 2006 3 .

Edexcel Level 2 BTEC First Diploma in Business The Edexcel Level 2 BTEC First Diploma in Business consists of three core units plus three specialist units that provide for a combined total of 360 guided learning hours (GLH) for the completed qualification. Edexcel Level 2 BTEC First Diploma in Business Unit 1 2 3 Unit 4 5 6 7 8 9 10 Core units Exploring Business Purposes Developing Customer Relations Investigating Financial Control Specialist units Business Communication People in Organisations Providing Business and Administration Support Personal Selling Doing Business Online Exploring Business Enterprise* Starting a Small Business* 60 60 60 60 60 60 60 2 2 2 2 2 2 3 GLH 60 60 60 Level 2 2 2 *Learners can study for either Unit 9: Exploring Business Enterprise or Unit 10: Starting a Small Business but not both. 4 BF017259 – Specification – Edexcel Level 2 BTEC First Certificate and BTEC First Diploma in Business – Issue 1 – January 2006 .

It provides the reader with a snapshot of the aims of the unit and the key knowledge. Centres are advised to consider this definition when planning the programme of study associated with this specification. The content provides the range of subject material for the programme of learning and specifies the skills. It includes an estimate of time that might be allocated to direct teaching. tutors. 60. The unit content section will often have lists of topics that provide the range of the subject material required to be covered in order to meet the grading criteria. Each unit is set out in the following way. Guided learning hours Guided learning hours is ‘a notional measure of the substance of a unit’. Learning outcomes Learning outcomes state exactly what a learner should ‘know. it should be noted that this provides an indicative range of material to support the specific topic item. together with other structured learning time such as directed assignments or supported individual study. instruction and assessment. BF017259 Specification – Edexcel Level 2 BTEC First Certificate and BTEC First Diploma in Business – Issue 1 – January 2006 5 . understand or be able to do’ as a result of completing the unit. Unit abstract The unit abstract is designed to give the reader an appreciation of the value of the unit in the vocational setting of the qualification as well as highlighting the focus of the unit. Unit title The unit title is accredited by QCA and this form of words will appear on the learner’s Notification of Performance (NOP).Unit format All units in Edexcel Level 2 BTEC First qualifications have a standard format which is designed to provide clear guidance on the requirements of the qualification for learners. 90 or 120 guided learning hours NQF level This is the level of study of the qualification as determined by the National Qualifications Framework (NQF). skills and understanding needed to design and deliver a programme of learning sufficient to achieve each of the learning outcomes. skills and understanding developed while studying the unit. Each learning outcome is stated in full and then the prescribed key phrases or concepts related to that learning outcome are listed in italics followed by the subsequent range of related topics. assessors and those responsible for monitoring national standards. Unit content The unit content identifies the depth and breadth of knowledge. The unit abstract also emphasises links to the sector by describing what the unit offers the sector. This is informed by the underpinning knowledge and understanding requirements of the related National Occupational Standards (NOS). In BTEC First qualifications each unit consists of 30. Where the subject material list includes an ‘eg’. It excludes learner-initiated private study. knowledge and understanding required for achievement of the pass grading criteria. Subject material maybe further detailed by lists enclosed within brackets or an elongated dash which provide the defined elements of the specific topic item.

Grading grid Each Grading grid contains statements of the criteria used to determine the evidence that each learner must produce in order to receive a pass. Essential resources — identifies any specialist resources needed to allow learners to generate the evidence required for each unit. This advice is based on the more usual delivery modes but is not intended to rule out alternative approaches. It is divided into the following sections: • Delivery — explains the content and its relationship with the learning outcomes and offers guidance about possible approaches to delivery. • • • • Key skills This section identifies where there may be opportunities within the unit for the generation of evidence to meet the requirements of key skills units. Links to the Occupational Standards will be highlighted here. It is important to note that the merit and distinction grading criteria refer to a qualitative improvement in the learner’s evidence. delivery and assessment. 6 BF017259 – Specification – Edexcel Level 2 BTEC First Certificate and BTEC First Diploma in Business – Issue 1 – January 2006 . merit or distinction grade.uk) for the latest version of the key skills standards. other BTEC units. Centres should refer to the QCA website (www. The centre will be asked to ensure that any requirements are in place when it seeks approval from Edexcel to offer the qualification.qca. Assessors should take care to become familiar with the key skills specifications and evidence requirements and not to rely on the contents of this section when presenting key skills evidence for moderation. Essential guidance for tutors This section is designed to give tutors additional guidance and amplification on the unit in order to provide for a coherence of understanding and a consistency of delivery and assessment. other BTEC qualifications and other relevant units and qualifications — sets out links with other units within the qualification. Indicative reading for learners — provides a short list of learner resource material that benchmark the level of study. Links to National Occupational Standards. Assessment — provides amplification about the nature and type of evidence that learners need to produce in order to pass the unit or achieve the higher grades. These could be used to ensure that learners can relate different aspects within the qualification and offer opportunities for integration of learning.org. This section should be read in conjunction with the grading criteria.

Units Unit 1: Exploring Business Purposes Unit 2: Developing Customer Relations Unit 3: Investigating Financial Control Unit 4: Business Communication Unit 5: People in Organisations Unit 6: Providing Business and Administration Support Unit 7: Personal Selling Unit 8: Doing Business Online Unit 9: Exploring Business Enterprise Unit 10: Starting a Small Business 9 17 27 35 43 53 65 77 85 95 BF017259 Specification – Edexcel Level 2 BTEC First Certificate and BTEC First Diploma in Business – Issue 1 – January 2006 7 .

UNIT 1: EXPLORING BUSINESS PURPOSES 8 BF017259 – Specification – Edexcel Level 2 BTEC First Certificate and BTEC First Diploma in Business – Issue 1 – January 2006 .

Industries can grow and decline. the business world is never static. European and global levels. 9 BF017259 Specification – Edexcel Level 2 BTEC First Certificate and BTEC First Diploma in Business – Issue 1 – January 2006 . It introduces learners to the range and variety of business activity to be found in their local community and at national. This unit will help learners to begin to understand the business world. Learners will develop their understanding of these areas and how they function. In addition to the primary purpose of a business — eg manufacturing. They will also gain an understanding of how this kind of infrastructure operates in smaller businesses without such clearly defined departments. Owners and managers must therefore develop a keen awareness of their business environment and how this can be managed to the best advantage for different business purposes. This unit begins to develop learners’ knowledge and understanding of the importance of businesses and how they operate. Learners will be able to explore business purposes and relate this to different types of ownership. such as administration. This unit introduces them to a wide range of aims and objectives pursued by business organisations in the public. Learning outcomes On completion of this unit a learner should: 1 2 3 4 Understand the nature of business and ownership Understand the classification of business activities Understand business aims and objectives in different sectors Know the main functional areas that support business organisations. To be ‘in business’ can mean an enormous variety of things and different people will have different perspectives of what business is all about. businesses that deliver or sell products and/or services. with all its complexities and differing interests. and businesses that support other businesses. voluntary (not-for-profit) and commercial sectors. Learners will be surrounded by different businesses every day of their lives: businesses that create things. The unit provides a business context within which learners in employment or on workplacement may use their experience. that support the aims and objectives of the business as well as linking with and supporting other functional areas. To add to the complexity of the situation. while also developing a greater understanding of business activity for those seeking employment.UNIT 1: EXPLORING BUSINESS PURPOSES Unit 1: NQF Level 2: Exploring Business Purposes BTEC First Guided learning hours: 60 Unit abstract Business can be an abstract concept. Learners will also be introduced to different classifications in business. The unit enables learners to discuss their understanding and knowledge of businesses in their local environment. retailing or as a service provider — larger businesses will have a number of functional areas. customer service or human resources. Research is developed through exploring the functional areas of business organisations and the way they work together to ensure the business achieves its aims and objectives.

human resources. free. limited companies (private — Ltd. fishing. break even. public — plc). expansion of market share. medium. measurable targets to help achieve the overall aims of a business). at cost. regional. sales. local and national public services. forestry. purpose (to provide a business focus) eg survival. distribution. voluntary/not-forprofit services Relative growth/decline by sector: decline of primary and secondary industries. charity. growth of tertiary service industries 3 Understand business aims and objectives in different sectors Aims and objectives: aims (the long-term visions or goals of a business). to develop new markets. production. co-operatives Size: small. for sale below cost Ownership: eg sole trader. profit maximisation. not-for-profit and voluntary 4 Know the main functional areas within business organisations Functional areas: eg administration. extraction/mining Secondary: eg manufacturing. finance. marketing. research and development (R and D). franchises. European and global organisations 2 Understand the classification of business activities Primary: eg farming.UNIT 1: EXPLORING BUSINESS PURPOSES Unit content 1 Understand the nature of business and ownership Purpose: supply of goods and services eg at a profit. customer service. engineering. growth. partnership. relationship with other businesses Sector: eg private. small-medium. construction Tertiary: eg private service industries. large Scale: local. objectives (specific. national. to support continuous professional development Relationships: links and interactions with other functional areas 10 BF017259 – Specification – Edexcel Level 2 BTEC First Certificate and BTEC First Diploma in Business – Issue 1 – January 2006 . voluntary organisations. public. purposes of functional areas eg to support business aims and objectives. service provision. ICT.

the evidence that the learner presents for assessment needs to demonstrate that they can meet all of the learning outcomes for the unit. the learner is able to: M1 D1 M2 compare and contrast the ownership. Guidance to support the assessment of this unit is available on page 13 BF017259 Specification – Edexcel Level 2 BTEC First Certificate and BTEC First Diploma in Business – Issue 1 – January 2006 11 . secondary and tertiary classifications of business activities explain the interaction of functional areas and how they relate to each other in two selected businesses. To achieve a pass grade the evidence must show that the learner is able to: P1 describe four different types of business organisations in terms of purpose. size and scale P2 M3 describe the primary. To achieve a distinction grade the evidence must show that. in addition to the pass criteria.UNIT 1: EXPLORING BUSINESS PURPOSES Grading grid In order to pass this unit. The criteria for a pass grade describe the level of achievement required to pass this unit. secondary and tertiary classifications of business activities using local and national examples P3 describe the purpose of setting aims and objectives for businesses P4 describe the functional areas and their main purposes within business organisations. aims and objectives of two selected businesses explain areas of growth or decline in the primary. in addition to the pass and merit criteria. ownership. the learner is able to: evaluate how the functional areas contribute to the aims and objectives of the two selected businesses. Grading criteria To achieve a merit grade the evidence must show that.

extraction/mining. planning. enabling them to contribute examples of business purposes through class discussions. hair and beauty. however. consultancy. hospitality. This may be locally based. The unit takes learners through a natural exploration of businesses and logically develops their understanding as the content progresses. Tutors may find it useful for learners (working individually or in pairs) to ‘adopt’ a local business. Learners should also develop a clear understanding of the different types of business classification. such as farming. banking. Primary and secondary sectors are still important. communications. These must. energy supply. social services voluntary or not-for-profit services eg community health. and the creative nature of the secondary sector. The internet can be a useful tool. • • Learners also need to develop their understanding of how the sectors have changed. tutors should be keenly aware of the balance of industry sector in their local area in order to illustrate delivery with local examples. Learners can work in small discussion groups to consider how this has changed. military activity. as many larger organisations provide web pages specifically for learners. housing. distribution. but have shrunk over recent years. engineering. Learners will need input on types of ownership. emergency. construction. national. Tutors should ensure that work undertaken by learners captures an appropriate range of business ownership. fishing. forestry. European and global levels. health care. Discussing local business operations and the experience of learners from work experience or part-time employment gives learners a broad introduction to what businesses do. environmental and wildlife protection. social and community care. Learners can then expand these ideas to consider regional. security. retailing. be contrasted with regional and national examples in order to deliver a balanced picture. business purposes and different classifications according to the industrial sector. especially when followed with class discussion or written summary. including how different sectors have grown or declined. repair and maintenance. tourism. Within the tertiary sector. global development. This will provide a visual stimulus that can be used to enhance understanding of other areas of content. health care. 12 BF017259 – Specification – Edexcel Level 2 BTEC First Certificate and BTEC First Diploma in Business – Issue 1 – January 2006 . Tutors should encourage learners to bring in newspaper articles. entertainment. recreational. research. water supply and purification local. for example the originating nature of the primary sector. types of ownership. how many employees they have and if they have more than one branch. such as manufacturing. design. publishing. Case studies and newspaper reports relating to businesses that learners are familiar with can be used to extend their understanding of particular issues. learners should explore: • private services eg accountancy. A large proportion of the local businesses that learners may have explored may be in the tertiary sector. medical. transport. advertisements and promotional materials to create displays relating to the local business environment. regional and national public services eg education. Television programmes exploring business organisations can also be useful formative tools. law and order.UNIT 1: EXPLORING BUSINESS PURPOSES Essential guidance for tutors Delivery This unit forms the basis for the whole of the BTEC First Certificate and Diploma in Business qualifications. but some rural areas will not have large organisations and therefore may not have a Plc based in the locality. When approaching delivery of this area of content. Discussion groups can also examine the process of investigation.

tutors could refer to the broad principles behind setting SMART objectives. The aims of the business are the main focus of what each business is doing and why they are in business. service delivery. Useful definitions could be: • • aims: the longer-term visions or goals of a business objectives: specific. Tutors will need to explain the importance of the functional areas working together. Objectives should be related to the attainment of targets/milestones. The content here covers the basic aims of most businesses but this will need to be related back to the ownership to ensure that the aims are appropriate. so that the learners develop their understanding that businesses in different sectors will have recognisable different aims. The principle of functional areas are crucial to the success of all businesses. Assessment Learners will be expected to produce evidence that shows their knowledge and understanding of business purposes. For instance. realistic and time-bound) are not addressed in detail. growth. as this should enable learners to experience how content can be applied in a real business organisation. human resources and administration may be carried out by every department. achievable. Whilst this is true in a broad sense. measurable targets to help achieve the overall aims of the business. as well as adding currency and vocational realism. Aims should relate more to examples such as increasing market share. Learners should develop their knowledge and understanding of aims and objectives through investigating mission and vision statements. Functional areas can be departments in a business.) Learners should understand the roles and responsibilities of different functions. (Learners also need to understand how such functional areas operate in smaller organisations. Learners also need to explore the impact of achieving/not achieving objectives on businesses. Some local/regional businesses they have visited may only present a limited selection of the functional areas learners have studied. Learners can use case studies to explore the links across the functional areas and how they do not work in isolation. but can also refer to where functions are carried out within one or more departments. Learning may also be complemented by part-time employment. It may include: • • a presentation showing their understanding of the nature of business and ownership and how business activities can be classified a report or project that shows their understanding of business aims and objectives in different sectors and of the main functional areas that support business organisations. although these may be more recognisable in larger organisations. Objectives enable businesses to be clear about what they are doing and when they plan to do it. even though they may not come across all functions in a single business. but the functional area can still be described. which are readily available on business websites or annual reports. for example for output. Learners often believe that one of the aims of large successful plc businesses is to ‘want to survive’. measurable. profit. it is not a true aim. BF017259 Specification – Edexcel Level 2 BTEC First Certificate and BTEC First Diploma in Business – Issue 1 – January 2006 13 . providing a measure that can be used to ensure objectives are on target. or development. Although SMART objectives (specific.UNIT 1: EXPLORING BUSINESS PURPOSES Business aims and objectives should be introduced in broad terms. This then will link to how functional areas help businesses to achieve and support their aims and objectives. and the sector. work placements and organised visits.

learners will develop the merit criteria and link this to how well the functional areas of the two selected businesses interact and support achievement of their aims and objectives. other BTEC qualifications and other relevant units/qualifications This unit lays logical foundations for all the other units in this specification. size. Each should be of a different type and the selection should also cover different sizes and scale. The final pass criterion requires learners to explore the main internal functional areas of businesses and describe what each functional area does. For the second pass criterion. The contrast should be marked. Essential resources There is a wide range of published textbook and case study material available to support business education at Level 2 of the NQF. ownership and scale. The learners will be required to evaluate how the functional areas operate and how this has led to success of specific aims and objectives. learners need to describe a minimum of four business organisations and be able to describe their purposes. 2004) ISBN 0435401386 Fardon. 2002) ISBN 1872962327 14 BF017259 – Specification – Edexcel Level 2 BTEC First Certificate and BTEC First Diploma in Business – Issue 1 – January 2006 . The third criterion develops the exploration of functional areas from the fourth pass criterion by investigating two selected businesses (which could be the same two businesses used to support development of evidence for the first merit criterion). Carysforth C and Neild M — BTEC First Business (Heinemann. The second criterion focuses on the growth or decline in the different classifications of business activities. Learners should again maximise opportunities to base their evidence on national as well as local growth or decline. Learners should focus on a business that incorporates a balanced and compatible selection of functional areas to present an appropriate level of knowledge and understanding. Learners should not attempt to cover all functional areas. The first criterion extends their understanding through comparing and contrasting two selected businesses. They should use the definitions of ‘aims’ and ‘objectives’ provided in the guidance as a basis for their work. which would result in a superficial collection of evidence. Learners should demonstrate in-depth understanding through their comparisons. Indicative reading for learners Materials that illustrate the level of learning required and that are particularly relevant.UNIT 1: EXPLORING BUSINESS PURPOSES To achieve the first pass criterion. of both an academic and vocational nature. Nuttall and Prokopiw — GCSE Applied Business (Osborne Books. It also provides opportunities to gain key skills in communication and improving own learning and performance. regional and national examples. To achieve a merit grade. Links to National Occupational Standards. selected examples of which appear in Indicative reading for learners. learners also need to evaluate the weaknesses of functional area interactions and how these have perhaps hindered or obstructed some areas of success. Conversely. giving examples of how they interlink and operate with each other. learners will need to show an understanding of the three classifications of business activities. learners will be able to demonstrate their understanding of business purposes through further explanations. other BTEC units. giving local. for example a national or multinational retail outlet compared to a local privately-owned outlet. The learners need to explain the relationships of the functional areas. The third pass criterion enables learners to describe the purpose of setting aims and objectives for businesses in general terms. At distinction level.

using your plan to help meet targets and improve your performance. for all assignments throughout this specification. Each document must be a minimum of 500 words long. Take responsibility for some decisions about your learning. Communication level 2 When learners are: • exploring the nature of business activity. Give a talk of at least four minutes. LP2. Learners may need to develop additional evidence elsewhere to fully meet the requirements of the key skills specifications. They should be able to develop the following key skills evidence: C2. Suggestions of opportunities for the generation of level 2 key skill evidence are given here.UNIT 1: EXPLORING BUSINESS PURPOSES Key skills Achievement of key skills is not a requirement of this qualification but it is encouraged. Improving own learning and performance level 2 When learners are: • preparing and completing all features of an assignment.2 Take part in a group discussion.1 LP2. Read and summarise information from at least two documents about the same subject. Staff should check that learners have produced all the evidence required by part B of the key skills specifications when assessing this evidence. They should be able to develop the following key skills evidence: LP2.3 BF017259 Specification – Edexcel Level 2 BTEC First Certificate and BTEC First Diploma in Business – Issue 1 – January 2006 15 . Review progress with an appropriate person and provide evidence of your achievements.2 Help set targets with an appropriate person and plan how these will be met.1a C2.1b C2.

UNIT 1: EXPLORING BUSINESS PURPOSES 16 BF017259 – Specification – Edexcel Level 2 BTEC First Certificate and BTEC First Diploma in Business – Issue 1 – January 2006 .

Learners will look at ways in which this can be achieved. BF017259 Specification – Edexcel Level 2 BTEC First Certificate and BTEC First Diploma in Business – Issue 1 – January 2006 17 . to meet the needs and expectations of customers. They will have the opportunity to put these skills into practice. as well as being able to identify a wide range of different types of internal and external customers. They may be purchasers and consumers of products or services. have good interpersonal skills and be able to communicate effectively with their customers. learners will look at how businesses monitor and evaluate their level of customer service by obtaining feedback from customers and how this enables them to make improvements to the service provided.UNIT 2: DEVELOPING CUSTOMER RELATIONS Unit 2: NQF Level 2: Developing Customer Relations BTEC First Guided learning hours: 60 Unit abstract Customer relations are at the heart of every business. Learners will also expand their understanding of the importance of delivering consistent and reliable customer service through the development of their practical and operational customer service skills. In addition. Learning outcomes On completion of this unit a learner should: 1 2 3 4 Understand how customer service is provided in business Be able to apply appropriate presentation and interpersonal skills in customer service situations Know how consistent and reliable customer service contributes to customer satisfaction Know how to monitor and evaluate customer service within an organisation. Learners will develop their knowledge and understanding of customer needs and expectations. Developing good customer relations is critical to the success of every business. Learners will explore how customer service staff deliver service that meets the needs and expectations of the business’s customers through the range of products or services that it offers. Every business has a purpose which will eventually lead — directly or indirectly — to customers. This unit will develop and broaden the learner’s understanding of customer service in different businesses. Any member of staff working in a customer service situation will be expected to present themselves in a professional way. or they may benefit from business operations in a different way. for example a user of a public service such as a library or local council.

to the employee 2 Be able to apply appropriate presentation and interpersonal skills in customer service situations Presentation skills: personal presentation eg personal hygiene. individuals. organisational. dealing with special needs. internal customer satisfaction eg job satisfaction. makeup. visual. working environment. value for money. health. providing assistance and help. professional. routine 3 Know how consistent and reliable customer service contributes to customer satisfaction Consistent and reliable: scope of job role. pitch. behaviour. use of slang/jargon. families. pace. to the organisation. accessibility/availability. meeting specific customer needs.UNIT 2: DEVELOPING CUSTOMER RELATIONS Unit content 1 Understand how customer service is provided in business Customer needs and expectations: definition of customer service. confidence. staff teams. knowledge of products and/or services. uniform/dress. identifying customer needs. efficiency Communication skills: tone of voice. working under pressure. first impressions. difficult. different ages. tact. staff attitude and behaviour. hearing. special needs eg non-English speaking. body language. greeting customers. presentation of work area and equipment Interpersonal skills: attitude. repeat custom. body language eg posture. email. hair. concern. gestures. new. teamwork. timing. supervisors. urgent/non-urgent. word of mouth reputation. respect for customers. on the telephone. responding to different customer behaviour. type and quality of products/service. confirming service meets needs and expectations. jewellery. businessmen and women. staff. gender. appropriateness to customer/situation Situations: face-to-face. listening. interest. providing information and advice. accuracy and reliability. smiling. facial expression. organisational targets. dealing with problems. language eg technical language. negative effects of poor communication Codes of practice: eg industry. different cultures. managers External customers: eg existing. mobility impairments Benefits: to the customer. eye contact. dealing with problems Customer satisfaction: confidence in service. in writing. groups. ethical standards 18 BF017259 – Specification – Edexcel Level 2 BTEC First Certificate and BTEC First Diploma in Business – Issue 1 – January 2006 . thoughtfulness. courtesy. safety and security Internal customers: eg colleagues.

repeat customers. improvements to the organisation eg improve service. improvements for employee eg job satisfaction. attract new customers. customer questionnaires/comment cards. increase turnover. mystery customers. staff feedback. staff turnover Improvements: improvements to quality of service. new customers. complaints/compliment letters Evaluate: level of sales. keep staff. reliability. compliance with legal obligations.UNIT 2: DEVELOPING CUSTOMER RELATIONS 4 Know how to monitor and evaluate customer service within an organisation Monitor: informal customer feedback. level of complaints/compliments. working environment BF017259 Specification – Edexcel Level 2 BTEC First Certificate and BTEC First Diploma in Business – Issue 1 – January 2006 19 .

Guidance to support the assessment of this unit is available on page 22. the organisation and the employee. the evidence that the learner presents for assessment needs to demonstrate that they can meet all of the learning outcomes for the unit. how effective customer service benefits the customer. The criteria for a pass grade describe the level of achievement required to pass this unit. in addition to the pass and merit criteria.UNIT 2: DEVELOPING CUSTOMER RELATIONS Grading grid In order to pass this unit. To achieve a pass grade the evidence must show that the learner is able to: P1 describe three different types of customers and their needs and expectations P2 demonstrate presentation and interpersonal skills in three different customer service situations M3 P3 describe how consistent and reliable customer service contributes to customer satisfaction P4 describe how customer service can be monitored and evaluated. the learner is able to: anticipate and meet the needs of at least three different customers in a range of situations analyse. using examples. the learner is able to: M1 D1 M2 D2 explain why presentation. the organisation and the employee. 20 BF017259 – Specification – Edexcel Level 2 BTEC First Certificate and BTEC First Diploma in Business – Issue 1 – January 2006 . display a confident approach when delivering customer service to customers To achieve a distinction grade the evidence must show that. in addition to the pass criteria. interpersonal and communication skills are important to customer service explain how monitoring and evaluating can improve customer service for the customer. Grading criteria To achieve a merit grade the evidence must show that.

Learners need to recognise. the value of a satisfied customer and secondly.) Delivery and assessment of the practical aspects in workplace or realistic conditions are ideal.UNIT 2: DEVELOPING CUSTOMER RELATIONS Essential guidance for tutors Delivery This unit introduces learners to a number of significant concepts relating to customer service. Visiting speakers can be used to emphasise the importance of these skills for customer service situations. Care must be taken that learners understand what type of business is being simulated and tutors for this unit should consult with colleagues delivering other units to provide useful vocational links. The unit begins with the development of learners’ knowledge and understanding of how customer service is provided in business. in a realistic working environment (such as a training restaurant. the damage a dissatisfied customer can do. A variety of video materials are also available that can illustrate these skills in action. comedy classics such as Fawlty Towers. Soap operas such as Coronation Street. others may have found themselves in a situation where they were forced to complain. pseudo-documentaries such as Airline or Builders from Hell all provide a rich source of customer service interactions that can expose good or bad presentation and interpersonal skills in customer service situations. Customer service cannot occur in a vacuum and needs a vocational context to make sense. Some may only have experienced this in their role as a customer. All learners will have been a customer at one time or another and will have had varied experiences. Chefs who had originally perceived themselves to be directly involved with the customer as providers of the food they ate in fact had no direct relationship with customers themselves. Their service contract was with the food service team. delivering food at the right time and of the right quality to waiting staff. It is important for learners to recognise the importance of internal customers as well as external customers. (Tutors must ensure that sufficient time away from real or realistic conditions is provided to support the theoretical understanding. However. the five-star Gleneagles Hotel in Scotland has two distinct teams. with different learners debating the benefits (or disadvantages) of certain actions to the customer. Learners can use this example to research other organisations where similar internal customer interfaces exist. Learners may have a variety of existing presentation and interpersonal skills before beginning this unit. hairdressing salon or motor vehicle workshop) or under simulated conditions. BF017259 Specification – Edexcel Level 2 BTEC First Certificate and BTEC First Diploma in Business – Issue 1 – January 2006 21 . making them think more about what customer service is about. Tutors should also encourage the groups to relate their discussions to local. Discussion groups can initially be used to explore learners’ experiences relating to customer service. to the organisation and to the employee. Tutors should not limit their ideas to ‘regular’ customer service videos. Others may already have part-time jobs and be in a position to share the experiences they have already had of delivering customer service. This unit can be delivered either in the workplace. This section can be drawn together by using case study materials to illustrate the benefits of customer service to the customer. regional or national businesses they have studied or are studying in other units. where such opportunities are unavailable. Some role play discussions can be developed. For example. simulated alternatives are acceptable. firstly. Some may have given little thought to their role as a customer. as they did not serve the food. The old adage ‘the customer is always right’ does not always ring true but tutors should emphasise throughout this unit that the customer’s needs and perceptions are of paramount importance. the organisation and the employee. The two teams are recognised by the hotel as the ‘guest services team’ and the ‘services provision.

Learners are asked to provide consistent and reliable customer service to a range of different customers. 22 BF017259 – Specification – Edexcel Level 2 BTEC First Certificate and BTEC First Diploma in Business – Issue 1 – January 2006 . tutors should consult with colleagues to find the best way of integrating this aspect with other units. whether this happens and how it might be managed. Groups can focus on one specific business and explore how monitoring and evaluation techniques could be used and what improvements they may lead to. Where different situations are required in the assessment criteria. (It would be interesting. learners can begin to examine how consistent and reliable customer service contributes to customer satisfaction. Visiting speakers can deliver presentations that provide real examples of customer satisfaction in practice. As their knowledge and skills develop. and will need careful planning if access to work experience or a regular realistic work environment is unavailable.UNIT 2: DEVELOPING CUSTOMER RELATIONS Once their knowledge base is developed. The second pass criterion must provide evidence of demonstrating presentation and interpersonal skills in at least three different customer service situations. perhaps through a period of work experience or work shadowing. Visiting speakers can deliver presentations on how larger organisations manage this aspect of customer service. but not critical. suggesting improvements.) Assessment Learners will be expected to produce evidence that shows their knowledge and understanding of customer service in the industry. The final element of this unit demonstrates how knowledge of customer service can be used to enhance the operation of a business. including how this contributes to customer satisfaction an account of how customer service is monitored and evaluated within a business. although this is not an essential requirement. Learners need to develop their knowledge of how customer service can be used by management to deliver improvements to the business. Centres must ensure that they have effective mechanisms to record observations of learner performance and for learners to record appropriate personal statements as evidence of practical work. learners need to practice these skills. Learners need to understand that there is more to customer service than consistently meeting and exceeding customers’ needs. The techniques of monitoring and evaluating customer service will require some regular teaching. for learners to discuss the importance of monitoring and evaluating customer service for smaller businesses. Role plays and simulations provide a useful starting point but the best experience will come from a real or realistic working environment. for example through procedural changes or by introducing new products. This should reflect at least three different types of customer. leading to discussion groups which can link to businesses that the group have visited or otherwise experienced (perhaps through a visiting speaker). Tutors can use case study materials — either real or developed from realistic situations — to highlight key issues that learners may not otherwise experience. Again. learners’ evidence would be strengthened by reflecting on contrasting situations and types of customer. It may include: • • • • a presentation summarising how effective customer service is provided records of how the learner has applied effective presentation and interpersonal skills in customer service situations a log or diary of how the learner has demonstrated consistent and reliable customer service. It can be very difficult to illustrate examples of poor customer satisfaction and many organisations will be unwilling to expose instances where this has happened within their organisation. The first pass criterion must address internal customers as well as different types of external customer. as described in the content.

especially: • • Unit 1: Give customers a positive impression of yourself and your organisation Unit 5: Support customer service improvements. The second distinction criterion is knowledge-based. Learners should incorporate evidence of how consistent and reliable customer service and the application of codes of practice contribute to customer satisfaction. It may be preferable to limit this to the pass criteria. For the second and third merit criteria. Depending on the delivery approach and the evidence generated by learners. Tutors should discuss with their team and programme manager how it can be integrated with other units within this qualification. They should also show how customer service within an organisation can be monitored and evaluated. Learners should be able to sustain this for at least three different customer service situations (which may be the same ones used as evidence to support the second pass criterion). This is a practical criterion. other BTEC units. Although this is not required. as local business representatives may not have sufficient experience to deliver accurate assessments at merit and distinction level. Again. The following units may be particularly useful to support this unit: • • • Unit 6: Providing Business and Administration Support Unit 7: Personal Selling Unit 8: Doing Business Online. other BTEC qualifications and other relevant units/qualifications It is important for tutors to recognise that this unit should not be delivered in isolation. learners need to draw on the content of the unit to explain why presentation. the organisation and the employee.UNIT 2: DEVELOPING CUSTOMER RELATIONS For the third and fourth pass criteria. Tutors should consider the value of inviting local businesses to contribute to the assessment of learners’ work. learners will benefit from drawing on examples. For the first distinction criterion. building on the delivery of effective customer service and analysing how this can benefit the customer. Tutors may wish to adapt the delivery of this unit to support the knowledge and understanding aspects of related customer service or other NVQ units. learners need to think beyond the basic provision of customer service to be able to anticipate and meet the needs of at least three different types of customers in a range of situations. and to explain how monitoring and evaluating can improve customer service for the customer. Links to National Occupational Standards. the organisation and the employee. or research on the internet. this unit may contribute to a range of units in the Level 2 NVQ in Customer Service. either from their own experience (which may be limited) or from case study materials or newspaper and journal accounts. This will help to ease the demand of visits on individual businesses. either by attending presentations or by reading reports or assignment work. Examples would occur where visits to local businesses are planned into the delivery for other units. interpersonal and communication skills are important to customer service. BF017259 Specification – Edexcel Level 2 BTEC First Certificate and BTEC First Diploma in Business – Issue 1 – January 2006 23 . The first merit criterion and first distinction criterion should reflect a level of confidence that would be appropriate in a real working environment. presentations by visiting speakers. Tutors need to make professional judgements on this point. learners would benefit from drawing on examples from their own experience or from case study examples. which will depend on a good and confident level of customer service skills and sufficient knowledge and understanding both of the skills involved and the product and/or service knowledge that supports them. learners could draw on examples they have experienced through visits to local or regional businesses.

and problem solving. information and communication technology. Essential resources Learners will benefit from visits to a range of businesses to experience customer service first hand. Bee F and Bee R — Customer Care (Chartered Institute of Personnel and Development. 1998) ISBN 0566080052 Johns T — Perfect Customer Care (Arrow Business Books. Indicative reading for learners Materials that illustrate the level of learning required and that are particularly relevant. 1999) ISBN 0099406217 24 BF017259 – Specification – Edexcel Level 2 BTEC First Certificate and BTEC First Diploma in Business – Issue 1 – January 2006 . Case study materials. communication.UNIT 2: DEVELOPING CUSTOMER RELATIONS This unit also provides opportunities to gain key skills in application of number. 1999) ISBN 0852927762 Hayes J and Dredge F — Managing Customer Service (Gower Publishing Limited. improving own learning and performance. textbooks and visiting speakers should be used to underpin the knowledge and understanding elements of the unit and add vocational relevance.

Use your information to carry out calculations to do with: a b c d • suggesting improvements from the results of customer feedback questionnaires. • • • C2.1 N2.1a C2. Write two different types of documents each one giving different information.2 Read and summarise information from at least two documents about the same subject.1b Take part in a group discussion.3 amounts or sizes scales or proportion handling statistics using formulae. C2. Give a talk of at least four minutes. Each document must be a minimum of 500 words long. Communication level 2 When learners are: • discussing different types of customers and the specific needs of each describing the range of products or services offered by organisations explaining the key factors involved in good personal presentation using verbal communication skills to explain complex written information to a customer using written communication skills in a customer service situation. Suggestions of opportunities for the generation of level 2 key skill evidence are given here. Staff should check that learners have produced all the evidence required by part B of the key skills specifications when assessing this evidence. N2. Learners may need to develop additional evidence elsewhere to fully meet the requirements of the key skills specifications. Interpret the results of your calculations and present your findings. They should be able to develop the following key skills evidence: C2. Application of number level 2 When learners are: • evaluating data from customer feedback questionnaires They should be able to develop the following key skills evidence: N2. One document must be at least 500 words long.UNIT 2: DEVELOPING CUSTOMER RELATIONS Key skills Achievement of key skills is not a requirement of this qualification but it is encouraged.2 Interpret information from a suitable source.3 • BF017259 Specification – Edexcel Level 2 BTEC First Certificate and BTEC First Diploma in Business – Issue 1 – January 2006 25 .

Check if the problem has been solved and identify ways to improve problem solving skills. Plan and try out at least one way of solving the problem. They should be able to develop the following key skills evidence: PS2.1 Search for and select information to meet your needs. They should be able to develop the following key skills evidence: ICT2.2 Help set targets with an appropriate person and plan how these will be met. Use different information sources for each task and multiple search criteria in at least one case. and identify different ways of tackling it. PS2. ICT2. Improving own learning and performance level 2 When learners are: • • delivering customer service in a range of situations applying effective presentation and interpersonal skills in customer service situations demonstrating how consistent and reliable customer service contributes to customer satisfaction.3 26 BF017259 – Specification – Edexcel Level 2 BTEC First Certificate and BTEC First Diploma in Business – Issue 1 – January 2006 .2 PS2. text with number.3 Present combined information such as text with image.1 Identify a problem. image with number. using your plan to help meet targets and improve your performance.1 LP2. Take responsibility for some decisions about your learning. They should be able to develop the following key skills evidence: LP2. with help from an appropriate person.UNIT 2: DEVELOPING CUSTOMER RELATIONS Information and communication technology level 2 When learners are: • designing and developing questionnaires to monitor and evaluate the provision of customer service.2 Enter and develop the information to suit the task and derive new information.3 Problem solving level 2 When learners are: • identifying the improvements that could be made to customer service delivery. • LP2. ICT2. Review progress with an appropriate person and provide evidence of your achievements.

This is followed by exploring how cash flows can be managed more effectively and the learner will be given an insight into one of the primary causes of business failure — the problem of payment timing rather than that of profitability alone. Finally. This will identify whether the business has sufficient money in the bank to meet their bills or not and what steps a business can take to meet any shortfall. the excess presents the business with opportunities to develop and expand. starting with an investigation into the types of costs that different businesses will incur. Where a business is generating more money than its costs. BF017259 Specification – Edexcel Level 2 BTEC First Certificate and BTEC First Diploma in Business – Issue 1 – January 2006 27 . The unit then looks at the concept of cash flow forecasting. Where costs are greater than the income. The learner will be made aware of the potential for fraud within companies handling these transactions and how this may be addressed. other than for short periods. the business is likely to be unsuccessful and die. This is followed by exploring how the sale of products or services generates revenue to give the learner the basis upon which they can develop their understanding of profit. the unit looks at how businesses record transactions and the financial process behind a simple business transaction. revenue and profit for a business operation Know how businesses use break even analysis Be able to prepare a cash flow forecast Understand ways of recording financial transactions. This is a technique used to forecast whether a new venture or the sale of new products or services is likely to make profits in the future and how risky this might be if the revenues or costs are not as originally predicted. which is concerned with predicting the amount of money entering and leaving the business’s bank account each month. A business without the financial skills to manage its money is unlikely to survive for long. It is likely to be main the reason why a business was created and for it continuing to trade. The awareness of profit leads the learner into break even analysis. This unit looks at the financial aspects of running a business. Learning outcomes On completion of this unit a learner should: 1 2 3 4 Understand the costs.UNIT 3: INVESTIGATING FINANCIAL CONTROL Unit 3: NQF Level 2: Investigating Financial Control BTEC First Guided learning hours: 60 Unit abstract Money is at the very heart of business.

variable. cash registers. direct costs. leasing. operating costs (fixed. revenue and profit for a business operation Business costs: costs incurred at start up.UNIT 3: INVESTIGATING FINANCIAL CONTROL Unit content 1 Understand the costs. sales. day books. maximising profits (increasing revenue and/or decreasing costs) 2 Know how businesses use break even analysis Break even: balancing costs or expenditure with revenues or income. expenditure per period 4 Understand ways of recording financial transactions Transactions: document sequence of sales and purchasing from order to receipt of goods eg order form. loan repayments. management information and control 28 BF017259 – Specification – Edexcel Level 2 BTEC First Certificate and BTEC First Diploma in Business – Issue 1 – January 2006 . areas of profit and loss. total costs) Revenue: sources of revenue eg sales. wages. timing of inflows Cash outflows: purchases. interest. calculating total revenue (unit sales price x number of units sold) Calculating gross and net profit: revenue (income) minus costs (expenditure). expenses (operating costs). cost of sales. petty cash. credit notes. regular and irregular outflows. timing of outflows Cash balances: opening balance. income per period. regular and irregular inflows. direct electronic input eg Electronic Point of Sale (EPOS) Fraud: prevention measures. loans. delivery note. indirect. margin of safety 3 Be able to prepare a cash flow forecast Cash inflow: capital. closing balance. accounts. cash receipts and payments Recording: manual or electronic recording. invoices.

revenue and profit for a business organisation M2 P2 calculate break even using given data to show the level at which income equals expenditure P3 prepare an annual cash flow forecast using monthly data P4 describe simple ways of recording financial transactions and preventing fraud in a business organisation.UNIT 3: INVESTIGATING FINANCIAL CONTROL Grading grid In order to pass this unit. the evidence that the learner presents for assessment needs to demonstrate that they can meet all of the learning outcomes for the unit. the importance of costs. in addition to the pass and merit criteria. using examples. BF017259 Specification – Edexcel Level 2 BTEC First Certificate and BTEC First Diploma in Business – Issue 1 – January 2006 29 . the learner is able to: M1 D1 demonstrate the impact of changing cost and revenue data on the break even point of a selected business analyse the implications of regular and irregular cash inflows and outflows for a business organisation. Grading criteria To achieve a merit grade the evidence must show that. Guidance to support the assessment of this unit is available on page 31. To achieve a distinction grade the evidence must show that. To achieve a pass grade the evidence must show that the learner is able to: P1 describe. in addition to the pass criteria. The criteria for a pass grade describe the level of achievement required to pass this unit. the learner is able to: evaluate how cash flows and financial recording systems can contribute to managing business finances.

such as an overdraft. would mean either that they cannot purchase the hi-fi or that they would need to access further funds.UNIT 3: INVESTIGATING FINANCIAL CONTROL Essential guidance for tutors Delivery This unit introduces the learner to the financial aspects of running a business. This can then be used to show the similarities between the problems of handling personal and business finances on a day to day basis. it is useful to plot the changes in profit. The unit offers frequent opportunities for learners to supplement their skills with calculators and spreadsheets by developing their mental and graphical capabilities. even though this has built up over three or four months. A business scenario could be used to form the basis of a group investigation/discussion on recommendations for improvement. In this way learners are able to get a feel for the size of the numbers. rather than having to rely solely on computer software or calculators. they will at least be able to see the effect of a regular monthly income and how it is affected by special payments. Although learners may not engage in negative cash flows. Insufficient income. Careful consideration should be given to a delivery strategy that introduces progressively complex numbers and calculations. The unit begins by looking at what is meant by profit and how. This simple data can be developed over. Business start up scenarios are a useful source of data for introducing the concept of break even and the tutor could usefully discuss this and other aspects of this unit with colleagues delivering either Unit 9: Exploring Business Enterprise or Unit 10: Starting a Small Business. Once learners have understood the key numerical relationships and are able to relate to graphical illustrations. This should be encouraged as it will help them to develop the crucial mathematical skill of assessing whether or not their calculation is approximately correct. 30 BF017259 – Specification – Edexcel Level 2 BTEC First Certificate and BTEC First Diploma in Business – Issue 1 – January 2006 . The use of wall displays in explaining calculations helps consolidate understanding. Simple numerical examples should be used to help learners develop their skills in manually mapping coordinates and reading axes logically. Learners may also have ideas for a new business or product that could be developed to show how to forecast the level of sales needed to break even or to make a profit. Through this approach learners will be introduced to the importance of having knowledge of and some control over financial flows. skills and understanding based initially on straightforward exercises. such as their own personal finances. through an understanding of the relationship between its costs and revenues. such as a new hi-fi system. Local businesses should be a good source of financial data and learners should be encouraged to investigate the concepts in the context of a real business of their own choosing to avoid the risk of the unit being seen as an academic exercise. fixed and variable costs. showing income less expenditure and the monthly balance. loss and break even sales/output levels caused by adjusting prices. This idea of control is taken further by giving the learner the opportunity to recommend ways of improving net profit through the improvement of revenues or reduction of costs. Tutors should also consider ways of building learners’ knowledge. for example. six months. Learners can be introduced to profit and loss using examples that they are familiar with. a business can show if it is making a profit or a loss. then linking with case study material and ultimately basing work on real businesses where owners/managers are willing to provide appropriate data and support the development of suitable scenarios.

To meet the second pass criterion learners should use the data to create a break even chart. These can be identified in the cash flow forecast. This data could be sourced from a suitable local business or through a scenario produced in-house. as periods of positive and negative cash flow should be easily identifiable. focusing on the effectiveness and security of the methods used. from order to receipt of goods. Consideration should be given to introducing the subject of credit control as a means of managing cash flow in a business at this point. Assessment Learners will be expected to produce evidence that shows their knowledge and understanding of financial control. and to annotate this explaining the break even point. linked to a case study that enables learners to follow sales and purchase data through the entire sequence. or minimise. To achieve a pass grade. Finally. These are particularly good for demonstrating the importance of cash flow. Group work/discussions can then be used to develop learners’ understanding of how to improve a specific cash flow scenario. of actual monthly expenditure against the original forecast. profit. learners should then choose a company willing to support the development of this area. case studies or real data. Learners will then complete criterion four by explaining how budgets can be used to plan and monitor the financial control of a business or functional area.UNIT 3: INVESTIGATING FINANCIAL CONTROL Learners should now be familiar with the importance of having a profitable business but they also need to understand the importance of the timing of cash inflows and outflows. The unit concludes with learners investigating the various means by which businesses record and monitor financial transactions. Where possible. Learners may be able to relate most easily to the use of data from ‘seasonal businesses’. (It is important when using computer software that learners create the spreadsheet themselves to demonstrate that they understand how to calculate break even. BF017259 Specification – Edexcel Level 2 BTEC First Certificate and BTEC First Diploma in Business – Issue 1 – January 2006 31 . This should be based on a cyclical business which would expect to have periods where cash outflows exceed inflows. using example budget forecasts over a 6–12 month period for a business/department of their own choice and then compare the variance. learners must explain simple ways of recording financial transactions in the case of a small business. such as holiday hotels or retailers of seasonal goods. the level of fraud that can occur. This scenario can then be extended to give learners the raw data from which to produce a break even chart. Learners should create cash flow forecasts over periods of at least six months and eventually over a full yearly cycle. Where appropriate. Cash flow forecasting captures the key information on the size and timing of these inflows and outflows of money in one chart or table. evidence for assessment criteria should be generated using practical activities and illustrated using examples based on exercises. It may include: • • • • • a presentation which shows learners’ understanding of costs. revenue and profit for a business operation results of practical exercises demonstrating how businesses use break even analysis results of practical exercises demonstrating the use of cash flow forecasts findings from learners’ investigations into how budgets are used for planning and monitoring business finances an explanation of how financial transactions are recorded. Tutors should provide sample documentation. month by month. either graphically or using computer software. learners will need to describe how to calculate net profit and to demonstrate this using revenue and costs (fixed and variable) that are typical in a business of their own choice. loss and the margin of safety. through which they can investigate the process of purchases and sales. from recording the initial transaction to describing the actions that the company takes in order to prevent.) The third pass criterion allows the learner to demonstrate their ability to create a typical cash flow forecast.

UNIT 3: INVESTIGATING FINANCIAL CONTROL To achieve a merit grade. This unit offers opportunities to gain key skills in application of number. 2004) ISBN 0435401386 Fardon. could be used to show that the learner understands the potentially serious impact that poor timing of cash flow can have on a business. learners should suggest possible courses of action to control the business’s cash flow most effectively. with appropriate explanation. other BTEC qualifications and other relevant units/qualifications This unit complements Unit 1: Exploring Business Purposes as it explores the financial dimensions of aims and objectives. It is not necessary at this level to explore the implications of inelastic or elastic demand. Second Edition (Collins. Links to National Occupational Standards. Indicative reading for learners Materials that illustrate the level of learning required and that are particularly relevant. The ability to assert a viewpoint will help learners analyse the extent to which the financial controls/techniques that have been introduced in this unit contribute to the overall effective performance of a business operation. learners will be expected to demonstrate how break even calculations change when the costs (fixed and variable) and unit revenues are changed. It also complements Unit 10: Starting a Small Business as it addresses some of the calculations involved in small business operations. although it is likely that some connection between the demand for a product/service and its price will be indicated. 2002) ISBN 1872962327 Wales J and Wall N — Nuffield — BP Business and Economics for GCSE. Nuttall and Prokopiw — GCSE Applied Business (Osborne Books. This will give the learner the opportunity to show that they understand which elements of the cash flow forecast can be most effectively manipulated in order to improve the month by month cash flow and the implications that follow from raising prices or cutting fixed and/or variable costs in appropriate areas. communication. to show that they understand the variables they are manipulating. even though the business they are undertaking is profitable in the longer-term. To achieve a distinction grade. Anderton A — GCSE Business Studies (Causeway Press. The use of a simple numerical example. 2001) ISBN 000711639X 32 BF017259 – Specification – Edexcel Level 2 BTEC First Certificate and BTEC First Diploma in Business – Issue 1 – January 2006 . The second merit criterion allows the learner to explain the impact that poor or negative cash flow can have on a business and why a profitable business could easily go bankrupt due to cash flow problems. information and communication technology and problem solving. other BTEC units. 2001) ISBN 1902796292 Carysforth and Neild — BTEC First Business (Heinemann.

Use your information to carry out calculations to do with: a b c d N2.1 N2.UNIT 3: INVESTIGATING FINANCIAL CONTROL Key skills Achievement of key skills is not a requirement of this qualification but it is encouraged. Learners may need to develop additional evidence elsewhere to fully meet the requirements of the key skills specifications. Suggestions of opportunities for the generation of level 2 key skill evidence are given here. Each document must be a minimum of 500 words long. They should be able to develop the following key skills evidence: N2.1b C2. Staff should check that learners have produced all the evidence required by part B of the key skills specifications when assessing this evidence. One document must be at least 500 words long. C2. Application of number level 2 When learners are: • • • • interpreting profitability and break even information calculating profitability and break even calculations judging proportion via cash flow and budget variances using formulae to represent profitability and break even calculations. They should be able to develop the following key skills evidence: C2. Interpret the results of your calculations and present your findings. Communication level 2 When learners are: • discussing attitudes to profit versus breaking even.2 Take part in a group discussion. Give a talk of at least four minutes.1a C2. Write two different types of documents each one giving different information.2 Interpret information from a suitable source. Read and summarise information from at least two documents about the same subject.3 BF017259 Specification – Edexcel Level 2 BTEC First Certificate and BTEC First Diploma in Business – Issue 1 – January 2006 33 .3 amounts or sizes scales or proportion handling statistics using formulae.

Use different information sources for each task and multiple search criteria in at least one case. They should be able to develop the following key skills evidence: ICT2.1 Identify a problem. Plan and try out at least one way of solving the problem. They should be able to develop the following key skills evidence: PS2.2 PS2. Problem solving level 2 When learners are: • confronting problems in completing profitability and break even calculations.UNIT 3: INVESTIGATING FINANCIAL CONTROL Information and communication technology level 2 When learners are: • presenting cash flow and budgets via spreadsheets.3 Present combined information such as text with image.2 Enter and develop the information to suit the task and derive new information. ICT2. PS2. charts and text.1 Search for and select information to meet your needs. text with number. ICT2. with help from an appropriate person. and identify different ways of tackling it. image with number.3 34 BF017259 – Specification – Edexcel Level 2 BTEC First Certificate and BTEC First Diploma in Business – Issue 1 – January 2006 . Check if the problem has been solved and identify ways to improve problem solving skills.

while the communication needs of businesses differ. their communication needs also develop and they need recognisable structures to maintain clear and open channels of communication that support the aims and objectives of the business. the fundamental principles remain the same. The communication systems of global businesses can be extremely complicated and totally dependent on the efficient and effective communication skills of the managers and staff.UNIT 4: BUSINESS COMMUNICATION Unit 4: NQF Level 2: Business Communication BTEC First Guided learning hours: 60 Unit abstract Good and effective business communication is essential for any organisation that wants to function successfully. communication may be primarily verbal. Learners will develop their oral communication skills in both one-to-one and group situations. Learners will develop their knowledge and understanding of the purpose of business communications and the range of contexts in which such communications occur. supervisors and subordinates is critical to every business. Interpersonal skills play a significant role in how effectively colleagues communicate with each other and how they in turn communicate with customers. consistent and well-presented written communications. Businesses also rely extensively on the ability of managers and staff to produce accurate. The ability to listen and understand instructions in order to carry out different business tasks and the ability of an employee to communicate effectively with colleagues. Learners will explore the importance of these skills and consider their impact on effective business practice. For small businesses. As businesses gain in size and complexity. However. The purpose of this unit is to develop learners’ ability to use communication skills effectively in the context of a workplace setting. with some supporting written documentation. BF017259 Specification – Edexcel Level 2 BTEC First Certificate and BTEC First Diploma in Business – Issue 1 – January 2006 35 . They will also develop and practice the skills needed to produce business communications for a variety of purposes. Learners will develop their knowledge and understanding of the most appropriate forms of written communication that are fit for purpose in conveying the messages. Learning outcomes On completion of this unit a learner should: 1 2 3 4 Understand the purpose of communications in business contexts Be able to use oral communication in business contexts Be able to complete and use written business documents Be able to use interpersonal and non-verbal business communication skills.

sound organisational skills. presentations. headings. meeting. agenda. memos. move a discussion forward 3 Be able to complete and use written business documents Documents: eg letters. confidentiality 2 Be able to use oral communication in business contexts Listening skills: listen and understand instructions given verbally. minutes. seek clarification where appropriate One-to-one communication: methods of conveying messages or series of instructions. legibility and consistency. understanding of material that might be confidential. conventions. confirm understanding. good time management. complaints. messages to suit different situations Working in a group situation: make relevant contributions to a discussion about business tasks. purchase orders. interpret instructions and task requirements correctly. accurate and concise reporting in sufficient and appropriate detail. pagination. to instruct Business contexts: formal and informal communication eg telephone contacts. technical enquiries. drafting and redrafting to ensure accuracy. invoices Appropriate layouts: fitness for purpose. language and expressions that will be understood by the recipient. consistency and fitness for purpose. checking for accuracy. sensitivity in dealing with confidential issues. meetings. 36 BF017259 – Specification – Edexcel Level 2 BTEC First Certificate and BTEC First Diploma in Business – Issue 1 – January 2006 . customers. to make a request. professional and business like manner when dealing with staff and customers Dealing with confidential matters: using appropriate methods of communication to convey confidential messages. meeting deadlines Recording and reporting: type of record. respond appropriately to others. appropriate to the task and the audience. working within given deadlines and timeframes. meetings and/or agreed actions. excellent personal hygiene. make notes. to confirm. reporting issues as they arise to the appropriate person 4 Be able to use interpersonal and non-verbal business communication skills Conveying a professional image: appropriate dress or uniform to meet industry conventions or regulations. keeping accurate and complete records of conversations. team briefing. reports. document headers and footers Writing documents for business: use of relevant technical language. to promote. use of different formats and styles eg use of appropriate fonts. images.UNIT 4: BUSINESS COMMUNICATION Unit content 1 Understand the purpose of communications in business contexts Purpose: eg to inform. communicating with supervisor. colleagues.

the learner is able to: analyse the effectiveness of oral and written communications in a given business context evaluate the importance of effective interpersonal and non-verbal communication skills in a given business context. The criteria for a pass grade describe the level of achievement required to pass this unit. To achieve a distinction grade the evidence must show that. the learner is able to: M1 D1 D2 M2 explain how oral communications can be used in business situations give reasons for selecting appropriate documents and layouts for business purposes explain the interpersonal and non-verbal communication skills used to support effective communication. Grading criteria To achieve a merit grade the evidence must show that. To achieve a pass grade the evidence must show that the learner is able to: P1 describe.UNIT 4: BUSINESS COMMUNICATION Grading grid In order to pass this unit. the purpose of business communications in four different business contexts P2 M3 respond to oral instructions conveying a series of routine business tasks P3 make an individual contribution to a group discussion relating to business tasks and record the outcomes of the discussion P4 produce three documents of different types to support straightforward business tasks P5 demonstrate interpersonal and non-verbal communication skills when demonstrating business communications. BF017259 Specification – Edexcel Level 2 BTEC First Certificate and BTEC First Diploma in Business – Issue 1 – January 2006 37 . the evidence that the learner presents for assessment needs to demonstrate that they can meet all of the learning outcomes for the unit. using examples. in addition to the pass criteria. in addition to the pass and merit criteria. Guidance to support the assessment of this unit is available on page 39.

Learners need to understand the implications for a business of poor or inaccurate written communication. where learners can begin investigating business communications by asking appropriate questions. Providing examples of different types 38 BF017259 – Specification – Edexcel Level 2 BTEC First Certificate and BTEC First Diploma in Business – Issue 1 – January 2006 . across spans of control and between teams who are all working to meet the stated aims and objectives of the business. Sample documents are essential to illustrate to learners the layout of different documents and also how the same document (eg purchases orders or invoices) can vary without altering the function that they serve. Learners need to be made aware of how important it is to listen to instructions and to sift and select the relevant information in order to perform the required tasks to a satisfactory standard. a business needs to have effective systems that are well organised. in order to identify different opportunities that would be useful to learners. Where learners are required to concentrate on how well each member of the group listens to other members can help to highlight learners’ strengths and weaknesses relating to listening skills. Learners then need to develop their knowledge and understanding of oral skills in a one-to-one and a group situation. It may be helpful to link this with other units involving visits to local businesses.UNIT 4: BUSINESS COMMUNICATION Essential guidance for tutors Delivery Any business relies on the communication skills of its employees in order to run effectively. Group activity can also allow for an opportunity to explore the benefits of the group working cohesively together. seek clarification and confirm understanding. Group activity requires both listening skills and the ability to respond effectively. or between the learner and an employer. Development of business communication skills will require some formal input on the range of related documents which can be used and how each can be formatted. Communication matters between different functional areas. Effective written communication impacts on every aspect of successful business organisation. Developing good verbal. One-to-one interactions between the tutor and the learner. This unit looks firstly at the purpose of business communication. This will itself benefit from discussions involving the delivery team. Learners should discuss the implications of instances where one group member may let others down by not listening carefully enough. It is essential for learners to be able to identify the different communication skills they need in order to be effective in the workplace. can also provide opportunities for practising good listening skills as well as providing the learner with the opportunity to respond. Learners will benefit from formative feedback from the tutor who can highlight how well the learner responds to others or is able to move the discussion forward. Discussion groups can be a useful start but tutors should be aware that some formal input may also be required. The skill of listening is often overlooked and taken for granted. Learners also need to have the confidence to seek clarification about aspects of the instructions that are not clear. non-verbal and written communication skills will help the learner to function more effectively both in their studies and eventually in their chosen role at work. Tutors should help learners to devise a selection of appropriate questions that focus on both the purpose of business communications and a suitable range of different business contexts. Internally. Accuracy and good presentation are essential. as well as reviewing the quality of their contribution to the discussion.

It may include: • • • a presentation or report explaining learners’ understanding of the purpose of business communications in different business contexts records of how learners have used oral and written business communications effectively a summary of the importance of interpersonal and non-verbal communication skills. Each document is important in its own right. However. Learners will also benefit from links with local businesses that may be willing to supply copies of documentation used in real situations. catalogues.UNIT 4: BUSINESS COMMUNICATION of business documentation may well be a good start here. a letter and a memo — all of which may relate to the same matter — would be acceptable. adding currency and vocational realism. Learners may also use their own experiences from work placements. BF017259 Specification – Edexcel Level 2 BTEC First Certificate and BTEC First Diploma in Business – Issue 1 – January 2006 39 . a purchase order. memos.) Learners must demonstrate an understanding of explicit verbal instructions and carry them out to a specified standard and on time.) Learners’ evidence must also reflect group work as well as one-to-one oral instructions. (For this example. Practice in developing written documentation will allow the learner an opportunity to explore the need to think carefully about the nature of the work being produced. letters. supported by records of the learner demonstrating these skills. meeting schedules and so on. However. (Tutors should ensure that learners have the capacity to carry out these instructions. (As well as the business contexts described in the content. incorrect information or errors in grammar and text. Assessment Learners will be expected to produce evidence that shows their knowledge and understanding of business communication. learners must use examples to describe the purpose of business communications in at least four different contexts. For example. in depth company reports or financial planning tools. Written documentation could be a simple memo or note conveying a telephone message. tutors must ensure there is sufficient contrast in the documents. This must be supported by an observation record completed by the tutor or an experienced witness to confirm the actions that have met the assessment criteria. Learning can then progress to the use of simulations or case studies that can take learners through a sequence of processes such as the documentation involved in purchasing (see links to Unit 3: Investigating Financial Control) or the process of making a booking for a hotel or conference centre. Learners would benefit from the opportunity to choose which documents might be suitable for a series of simulated tasks set for them by the tutor. part-time employment and family experiences and observations. Learners should produce at least three different documents to support straightforward business tasks. To achieve a pass. Evidence can be on audio or video tape but this will only record some of the detail required. and this aspect can be developed by providing learners with the opportunity to examine different documents and discuss the implications of poor presentation. who is the intended audience and to question whether it is in fact fit for the purpose for which it is intended. which should show an acceptable level of contrast. providing records of their effective contribution to a group discussion. or a public services environment such as a hospital or library. These could be linked to other pass criteria or delivered independently. eg a large retail outlet. it would not be necessary to frank or post the documents but they should be placed in appropriately addressed envelopes. for posting to a set of delegates the same day. three different letters would be insufficient to meet this criterion. the request to photocopy a meeting agenda and set of previous minutes double-sided and stapled. flyers or brochures. learners should also consider the business environment from which each communication is drawn. a manufacturing or engineering works.) For example. involving letters. faxes and emails. a set of documents that track an order from being placed to the final invoice.

to ask learners to respond to a request for a conference booking should involve a letter of reply supported by memos to heads of department. This unit supports the following unit in the Level 2 NVQ in Customer Service: • • • • • • 40 Unit 1: Give customers a positive impression of yourself and your organisation. In addition to demonstrating effective interpersonal and non-verbal communication skills. They would be well advised to discuss their evidence with the owner/manager of the business in order to expand on their analysis and add an appropriate level of vocational realism. Assignments or project tasks should allow learners the flexibility to choose from a range of different documents. Unit 10: Starting a Small Business further highlights the importance of effective communication skills. this could be reflected in their response to oral communications (both one-to-one communications and working in a group situation) and their handling of the directions they are given for carrying out tasks relating to written communications. where administrative effectiveness clearly depends on effective communication skills. where interpersonal sales and customer service skills feature clearly. learners should use examples of oral and written communications to support their analysis of their effectiveness in a given business context. perhaps based on a local business they have visited. Learners also need to justify the use of appropriate documents and layouts for business purposes. other BTEC units. other BTEC qualifications and other relevant units/qualifications This unit has links with Unit 1: Exploring Business Purposes and with Unit 6: Providing Business and Administration Support. Unit 201: Carry out your responsibilities at work Unit 206: Deal with visitors Unit 221: Prepare texts from notes Unit 224: Produce documents Unit 225: Work effectively with other people. a conference function checklist and preparation of a sample invoice to present to the customer on completion of the event. which should provide an explanation rather than just a demonstration of skills. They should select examples from their experience to illustrate their evidence. although they should also be conscious of the capability of such business people to make effective judgements for distinction criteria. learners should draw on examples from their experience to illustrate their evidence. The business context may be one of the learner’s choosing. For a distinction grade. Links also exist with Unit 2: Developing Customer Relations and Unit 7: Personal Selling. Tutors could also consider consulting with owners/managers to assess the evidence presented by learners. For a merit grade. For example. However. Again. There is also a link to Unit 3: Investigating Financial Control where such documents are used to support this unit. For example. Again. to ask learners to answer a letter would only provide limited opportunity — a letter in response is probably the only solution. Learners should also consider using the same business for their evaluation of the importance of effective interpersonal and non-verbal communication skills. BF017259 – Specification – Edexcel Level 2 BTEC First Certificate and BTEC First Diploma in Business – Issue 1 – January 2006 This unit also supports the following units in the Level 2 NVQ in Business and Administration: . Links to National Occupational Standards. learners also need to explain how these can be used to support effective communications.UNIT 4: BUSINESS COMMUNICATION Learners must demonstrate effective interpersonal and non-verbal communication skills when demonstrating business communications. their evidence would benefit from discussions with the owner/manager. learners need to explain how oral communications can be used in business situations.

including reports and trade press articles. Essential resources Learners should also have access to library and internet facilities to support their research. 2003) ISBN 0748770992 BF017259 Specification – Edexcel Level 2 BTEC First Certificate and BTEC First Diploma in Business – Issue 1 – January 2006 41 . 2002) ISBN 1872962327 Miles P — Business and Communication Systems GCSE (Nelson Thornes. Indicative reading for learners Materials that illustrate the level of learning required and that are particularly relevant. 1998) ISBN 0435455427 Fardon Michael. Nuttall Chris and Prokopiw John — GCSE Applied Business (Osborne Books Ltd. Anderton Alain — GCSE Business Studies (Causeway Press. 1998) ISBN 1873929846 Carysforth Carol — Communication for Work (Heinemann Education.UNIT 4: BUSINESS COMMUNICATION This unit provides opportunities to gain key skills in communication and information and communication technology. Learners should be encouraged to use a range of sources of information.

1b C2.3 Present combined information such as text with image. Communication level 2 When learners are: • discussing issues of communication in business. They should be able to develop the following key skills evidence: C2. C2. Learners may need to develop additional evidence elsewhere to fully meet the requirements of the key skills specifications.3 42 BF017259 – Specification – Edexcel Level 2 BTEC First Certificate and BTEC First Diploma in Business – Issue 1 – January 2006 . They should be able to develop the following key skills evidence: ICT2. Information and communication technology level 2 When learners are: • producing presentations of financial information in written communications. Suggestions of opportunities for the generation of level 2 key skill evidence are given here. ICT. Each document must be a minimum of 500 words long. Staff should check that learners have produced all the evidence required by part B of the key skills specifications when assessing this evidence.1a C2. text with number. One document must be at least 500 words long.2. Read and summarise information from at least two documents about the same subject. Give a talk of at least four minutes.2 Take part in a group discussion.UNIT 4: BUSINESS COMMUNICATION Key skills Achievement of key skills is not a requirement of this qualification but it is encouraged. Write two different types of documents each one giving different information.2 Enter and develop the information to suit the task and derive new information. image with number.

much of which will be spent within organisational settings. The unit begins by asking learners to consider what skills. knowledge. Owners and managers need to rely on strong and effective relationships with good employees if they are to guarantee business success. Employees work with others. people will want to enhance their skills and improve their career and employment prospects and enjoy greater rewards as they seek a fulfilling work life. Both managers and their staff need to build effective working relationships if the business is to run most efficiently. Employees need to understand their own skills and abilities if they are to find an employer able to offer them a suitable position that meets their current and future needs. Learners will move on to develop their knowledge and understanding of terms and conditions of employment. or what its aims and objectives are. Contributions to team working are made not just by senior employees but also by junior staff and learners will appreciate that they too will be expected to contribute to the successful work of teams. In addition. they may want to be promoted so learners need to know how they can plan their careers and move on to more responsible jobs. every business is dependent on an effective infrastructure made up of people. so learning to be a good team member is important. irrespective of what its core business is.UNIT 5: PEOPLE IN ORGANISATIONS Unit 5: NQF Level 2: People in Organisations BTEC First Guided learning hours: 60 Unit abstract Business organisations are usually made up of a wide range of different people. 43 BF017259 Specification – Edexcel Level 2 BTEC First Certificate and BTEC First Diploma in Business – Issue 1 – January 2006 . are important for the success of organisations. Once employed. so learners need to understand the structures and ethos of different organisations and how employees work within them. Organisations will select employees by assessing whether they have the right attributes and attitudes. In time. The skills of employees both individually and collectively. In other words. each with their own role and responsibilities to carry out in order to contribute to the business organisation’s aims and objectives. Learners will experience some of the performance review measures that are used by employers or by their school or college. People will be expected to work in ever changing groups and will need to be flexible and adaptable as they mesh their abilities with those of others as organisations try to achieve their purposes. Organisations will then seek to develop their employees as change occurs both internally and externally. Learning outcomes On completion of this unit a learner should: 1 2 3 4 Know how to prepare for employment Understand terms and conditions of employment Know how working practices are developed Be able to plan career development. an employee will be required to make an effective contribution to the work of the organisation. qualifications and interests they have and how these can be used in choosing a suitable job. This unit introduces learners to the importance of the roles people have and to the contribution individuals and groups make to the effectiveness of organisations.

careers advisers. careers fairs. application forms. notice and termination. probation. practical. skills eg technical. compliance with company policies/codes of behaviour. disciplinary procedures. representing the organisation. paid. letters of application 2 Understand terms and conditions of employment Terms and conditions of employment: contracts of employment. employment/government agencies. person specifications. seasonal. permanent. communication.UNIT 5: PEOPLE IN ORGANISATIONS Unit content 1 Know how to prepare for employment Personal audit: knowledge. curriculum vitae. contract fulfilment Legal framework for employment: relevant legislation affecting both the employer and employee eg: • • • • • • • • • • Disability Discrimination Act 1995 Employment Act 2002 Employment Rights Act 1996 Equal Pay Act 1970 Health and Safety at Work Act 1974 National Minimum Wage Act 1998 Race Relations Act 1976 Race Relations (Amendment) Act 2000 Sex Discrimination Act 1975 Working Time Regulations 1998 44 BF017259 – Specification – Edexcel Level 2 BTEC First Certificate and BTEC First Diploma in Business – Issue 1 – January 2006 . matching knowledge and skills to job opportunities Types of employment: eg full-time. tutors. voluntary Sources of information and advice: sources eg advertisements. existing and previous employers. advice eg government agencies. word of mouth. annual leave. payment terms. union membership. maternity and paternity leave. redundancy. part-time. friends and family Applying for jobs: job specifications. grievance procedures. ethical behaviour. temporary.

punctuality and time planning. matrix. organisational policies on behaviour and conduct. personal development. flexible working. observing confidentiality 4 Be able to plan career development Reviewing performance: eg performance at work. progression opportunities BF017259 Specification – Edexcel Level 2 BTEC First Certificate and BTEC First Diploma in Business – Issue 1 – January 2006 45 . informal reviews from peers and colleagues Career development: eg induction. certificated training. training needs.UNIT 5: PEOPLE IN ORGANISATIONS 3 Know how working practices are developed Organisational structures and job roles: structures eg hierarchical. group responsibility Personal attributes: personal presentation. functional. verbal and written communication skills. flat. roles within departmental structures. interdependence of group members. development plans. performance targets. un-certificated training. contribution of individual’s role to achieving business purposes Team working: the importance of team working. school or college. following instructions. formal performance appraisal. interdepartmental linkages. courtesy. honesty. divisional.

The criteria for a pass grade describe the level of achievement required to pass this unit. the learner is able to: analyse. the learner is able to: M1 D1 D2 M2 explain the importance of terms and conditions of employment compare and contrast the organisational structures and job roles within two business organisations explain the importance of team working and personal attributes within two business organisations.UNIT 5: PEOPLE IN ORGANISATIONS Grading grid In order to pass this unit. in addition to the pass criteria. To achieve a distinction grade the evidence must show that. 46 BF017259 – Specification – Edexcel Level 2 BTEC First Certificate and BTEC First Diploma in Business – Issue 1 – January 2006 . Grading criteria To achieve a merit grade the evidence must show that. To achieve a pass grade the evidence must show that the learner is able to: P1 match current knowledge and skills to possible job opportunities using appropriate sources of information and advice P2 M3 complete an application for a selected job opportunity P3 describe the terms and conditions of employment in a selected organisation P4 describe how working practices are developed P5 produce a career development plan using performance reviews. the evidence that the learner presents for assessment needs to demonstrate that they can meet all of the learning outcomes for the unit. the implications of terms and conditions of employment evaluate how personal attributes and team working contribute to working practices. Guidance to support the assessment of this unit is available on page 48. in addition to the pass and merit criteria. using examples.

the job roles that fit into them and how these organisational structures and job roles are influenced by team working and personal attributes. learners need to consider the labour market both nationally and locally and what sorts of job opportunities exist. the concept of working practice focuses on organisational structures. Groups should identify BF017259 Specification – Edexcel Level 2 BTEC First Certificate and BTEC First Diploma in Business – Issue 1 – January 2006 47 . supported by guidance which is available from an extensive number of websites. Learners need to identify the main features of a contract of employment. holiday entitlement. By undertaking a personal skills audit. covering hours. Discussion groups to share learners’ knowledge and experience of these aspects will expand the knowledge pool and support those learners who may have little or no previous experience of employment. it would be useful for learners to prepare and keep up-to-date a standard application letter and curriculum vitae. grievance procedures. honesty. reliability. punctuality. learners will be able to match their current skills and characteristics to those of potential jobs. Learners need to identify the types of behaviour that are expected in organisations in relation to confidentiality.UNIT 5: PEOPLE IN ORGANISATIONS Essential guidance for tutors Delivery This unit is designed to be taught using practical tasks that draw on some of the learners’ own experiences of employment. In any organisation there are less formal obligations that are expected of both employer and employee. For this unit. Working in small groups will enable learners to explore a number of different local businesses and share their findings with the rest of the main group. Many organisations have codes of conduct and some local employers may be willing to provide examples for learners to examine. person descriptions and application forms will allow learners to identify the range of employment available and the sort of qualities sought by potential employers. disputes procedures and probation. learners must investigate the range of advice available and take advantage of what advice is offered (this aspect is also important for those learners with clear ideas about their future employment prospects). such as trade journals featuring job advertisements for specific vocational sectors. A specialist speaker may be invited to deliver an appropriate presentation. Employees all contribute to organisational purposes. job descriptions. payment methods. learners need to review whether they are adequately equipped to apply for the jobs that attract their interest. If they have little idea of what they want to do. As part of the process of seeking employment. conduct and representing the organisation. It is not a pre-requisite that learners have existing experience of employment (for example through part-time work or work experience) but many learners will at some point want to enter the workforce. Some controlled internet research may be helpful here but tutors may prefer to provide examples of contracts featuring the components described above. appearance. Learners need to develop their knowledge and understanding of the obligations that employers have for their employees once they are in employment. Employees are entitled to receive a contract of employment. Obtaining information about jobs in the form of advertisements. They need to have some idea of the job and career that they wish to pursue. Initially. Tutors should provide an appropriate range of resource materials. The legal framework for employment encapsulates various key pieces of legislation and the learner must be able to identify the main statutes and the requirements they place on both employer and employee. notice and termination. pay rates. To consider what opportunities are available from an informed perspective.

The information could be gathered and kept in a portfolio. By obtaining advice and guidance on employment they can identify possible job and career opportunities. For the first pass criterion. learners must describe the terms and conditions of employment. input from appropriate specialist speakers will make a valuable contribution to currency and vocational relevance. service provision and customer satisfaction. Learners can also discuss how their personal work goals contribute to both departmental and organisational goals (this again will support learners with limited or no work experience). job specifications and person specifications can be obtained from a selection of the advertised jobs to support the second pass criterion. They should also prepare a curriculum vitae that they keep up to date over their programme of study. Learners should also produce a personal development plan of the type they might use at work when seeking to enhance a career. This will help them to recognise the need to become a flexible worker in response to organisational changes. Once established in employment an employee would have their performance reviewed and would probably be seeking to develop a career. Learners also need to understand the role of individuals within departmental structures. market domination. Team working is an important feature of working in an organisation and learners should explore how teams are established and the roles of different team members. Learners should generate assessment evidence from their learning programme and from workplace situations. Learners must be able to identify the key pieces of employment legislation that affect employers and employees. as well as using practical activities and exercises where appropriate. Application forms. Learners can then complete an application form. learners will need to prepare a personal audit. Once again. along with an understanding of the interdependence needed to achieve the group’s overall purpose. learners must identify that departments within organisations have goals. Similarly. Case study materials can highlight and/or support specific issues that may otherwise be difficult to expose. Specific opportunities can be identified from job advertisements and learners can assemble a collection of potential jobs. 48 BF017259 – Specification – Edexcel Level 2 BTEC First Certificate and BTEC First Diploma in Business – Issue 1 – January 2006 . By working in groups. Most organisations have structures within which employees have to function. Learners can use this experience to demonstrate a range of personal skills that are important for an effective employee. Learners need to examine the different types of organisational structures. they can identify the importance of the contributions they make. including the purposes of not-for-profit organisations. Assessment Learners will be expected to produce evidence that shows their knowledge and understanding of people in organisations. For the third pass criterion. These would include profit maximisation. Many of these are based on the legal framework for employment. growth. Some learners may already have experienced performance reviews and it will be useful for others if they are willing to share this information. including departmental structures. attach their CV and write a letter of application. which must be compatible with organisational purposes. Specialist speakers can help them to explore the types of reviews that are used in organisations and what the possible outcomes of these reviews might be. Learners need to understand how the work of different departments is related and interdependent and helps secure organisational purposes. It may include: • • • a presentation illustrating how to prepare for employment and what the terms and conditions of employment are results of their findings relating to the development of working practices a draft career development plan.UNIT 5: PEOPLE IN ORGANISATIONS the organisational purposes of different businesses.

When describing how working practices are developed for the fourth pass criterion. information and communication technology. as it is likely to affect them as employees. For a distinction grade. and the contribution made by individual personal attributes and team working. For a merit grade. This could be built on a case study but would be more effective if learners based their work on investigations carried out with a real organisation. Links to National Occupational Standards. Learners can also draw on these selected businesses to develop their evidence. For the final pass criterion. Learners must also evaluate how personal attributes and team working contribute to working practices. The sharpest contrast is likely to be achieved by selecting different organisational structures. BF017259 Specification – Edexcel Level 2 BTEC First Certificate and BTEC First Diploma in Business – Issue 1 – January 2006 49 . working with others. explaining the importance of team working and personal attributes. This can be achieved using examples relating to different businesses. Examples drawn from case studies or the trade press could be used to illustrate their work. They must be able to identify the types of evidence that they might be expected to present at a probationary review or at an appraisal review. Learners also need to develop the work they have produced relating to how working practices are developed by selecting two businesses and comparing and contrasting the organisational structures and job roles. other BTEC qualifications and other relevant units/qualifications The unit links particularly with the following units: • • • • • • Unit 1: Exploring Business Purposes Unit 4: Business Communication Unit 6: Providing Business and Administration Support Unit 7: Personal Selling Unit 9: Exploring Business Enterprise Unit 10: Starting a Small Business. learners must extend their knowledge of the terms and conditions of employment by explaining why these are important for both employers and employees. learners must further extend their evidence by showing the importance of terms and conditions of employment by analysing the implications for both employers and employees.UNIT 5: PEOPLE IN ORGANISATIONS Learners must be able to describe the main features of the legislation. other BTEC units. They must be able to identify the possible outcomes of such reviews and put together a personal development plan arising from them. Learners will need to use examples to illustrate their work and tutors must ensure that appropriate real or case study materials are available to support learners. They must also be able to apply the review of their performance that has been generated by their school or college. such as one hierarchical and one matrix structure. learners should reflect the content and its delivery by commenting on how an organisation has developed its organisational structure. the range of job roles within the organisation. learners must identify the mechanisms that supervisors and managers use to evaluate an employee’s contribution to the work of an organisation. improving own learning and performance and problem solving. or it could be built around a single case study or business that learners have visited as part of this or other units. The contrast in job roles should flow from this initial selection. In addition it provides opportunities to gain key skills in communication.

Carysforth C and Neild M — BTEC First Business (Heinemann. including work and money 50 BF017259 – Specification – Edexcel Level 2 BTEC First Certificate and BTEC First Diploma in Business – Issue 1 – January 2006 .connexions.bized. personal finance and consumer news Advice for students.need2know.co. support and information for 13-19 year olds BBC program on business. There are numerous websites available.ac. 2004) ISBN 0435401386 Surridge M — Applied Business for GCSE (Collins Educational.uk http://news. Learners should be encouraged to use a range of sources of information.uk/radio1/onelife/work www.bbc.bbc.co.gov.bbc.UNIT 5: PEOPLE IN ORGANISATIONS Essential resources Learners should also have access to library and internet facilities to support their research.co. Indicative reading for learners Materials that illustrate the level of learning required and that are particularly relevant. including work and money BBC Business GCSE revision help Resource for students and teachers of business related subjects Confidential advice.uk Advice for students.co. 2002) ISBN 0007138083 Websites change continuously so this list is only indicative of the type of material that is available.uk/schools/gcsebitesize/business www.uk www. including reports and trade press articles. Some useful ones are: www.uk/1/programmes/ working_lunch www.

2 Enter and develop the information to suit the task and derive new information. BF017259 Specification – Edexcel Level 2 BTEC First Certificate and BTEC First Diploma in Business – Issue 1 – January 2006 51 . • • • • producing a personal skills audit writing a curriculum vitae writing a letter of application producing a personal development plan. Learners may need to develop additional evidence elsewhere to fully meet the requirements of the key skills specifications. Use different information sources for each task and multiple search criteria in at least one case. Suggestions of opportunities for the generation of level 2 key skill evidence are given here. Write two different types of documents each one giving different information. Read and summarise information from at least two documents about the same subject. ICT2.3 Information and communication technology level 2 When learners are: • investigating the advice available They should be able to develop the following key skills evidence: ICT2. • • • • producing a personal skills audit writing a curriculum vitae writing a letter of application producing a personal development plan. Communication level 2 When learners are: • • demonstrating the roles of team members investigating the advice available They should be able to develop the following key skills evidence: C2. One document must be at least 500 words long. text with number. ICT2.1a C2. C2. Staff should check that learners have produced all the evidence required by part B of the key skills specifications when assessing this evidence.3 Present combined information such as text with image.2 Take part in a group discussion.1 Search for and select information to meet your needs.UNIT 5: PEOPLE IN ORGANISATIONS Key skills Achievement of key skills is not a requirement of this qualification but it is encouraged. image with number.

Take responsibility for some decisions about your learning. Review progress with an appropriate person and provide evidence of your achievements. LP2.UNIT 5: PEOPLE IN ORGANISATIONS Improving own learning and performance level 2 When learners are: • • • producing a personal skills audit writing a curriculum vitae producing a personal development plan.1 Help set targets with an appropriate person and plan how these will be met. 52 BF017259 – Specification – Edexcel Level 2 BTEC First Certificate and BTEC First Diploma in Business – Issue 1 – January 2006 .1 Plan work with others. with help from an appropriate person. Check if the problem has been solved and identify ways to improve problem solving skills. Working with others level 2 When learners are: • • demonstrating the roles of team members making effective and appropriate contributions.3 They should be able to develop the following key skills evidence: PS2. WO2.3 Problem solving level 2 When learners are: • • • investigating the advice available producing a personal skills audit producing a personal development plan.1 Identify a problem. LP2.2 PS2.2 Work co-operatively towards achieving the identified objectives. Plan and try out at least one way of solving the problem. PS2. using your plan to help meet targets and improve performance. and identify different ways of tackling it.2 They should be able to develop the following key skills evidence: LP2. WO2.3 Review your contributions and agree ways to improve work with others. They should be able to develop the following key skills evidence: WO2.

handling and processing of documentation. Learners will also learn the procedures used to process. for example arranging the time. There may simply be a secretarial office or even just a reception/switchboard function which extends to cover the administration needs of the organisation. or to support departmental functions. including different types of filing systems and associated issues such as confidentiality. marketing. including secretarial support such as diary management and the creation. This unit introduces learners to the overarching purpose of providing business support. This may be to ensure consistency. irrespective of the size of the organisation concerned. and learners will come across a wide variety of systems for providing business and administration support during their studies. retrieve and archive information.UNIT 6: PROVIDING BUSINESS AND ADMINISTRATION SUPPORT Unit 6: NQF Level 2: Providing Business and Administration Support BTEC First Guided learning hours: 60 Unit abstract All businesses need support of various types in order for them to operate effectively. including diary management. to make effective use of time. Smaller organisations may not have a specific administration department. date and location of a meeting. telephone systems and a range of other office equipment. which may have personnel. These will vary enormously. such as travel and accommodation arrangements. particularly for large businesses. retrieve and archive information. They will also learn how to manage external meeting arrangements. In developing their knowledge and understanding of the purpose of providing business and administration support. BF017259 Specification – Edexcel Level 2 BTEC First Certificate and BTEC First Diploma in Business – Issue 1 – January 2006 53 . to support managers. research. learners will investigate office systems and equipment. The administration department may cover a variety of support areas. This support may come in a variety of forms. meeting support (organising and running the meetings) and ensuring that all the organisation’s documents are filed effectively and efficiently. whether the organisation is large or small. administration and other specialist functions. Learning outcomes On completion of this unit a learner should: 1 2 3 4 Understand the purpose of providing business and administration support Know how to operate office systems and equipment Be able to organise and provide administrative support for meetings Be able to demonstrate the procedures needed to process. taking and distributing minutes. Learners will also develop their skills in organising and providing administrative support for meetings.

to support managers. main features. catering requirements. start/finish time. security and confidentiality Telephone systems: features eg call back. handling data. arranging events/travel/accommodation. opening unrecognised attachments. travel arrangements. spare copies. features and functions. binding. attendance list. accommodation. risks eg viruses. confirmation of attendance. problem solving.UNIT 6: PROVIDING BUSINESS AND ADMINISTRATION SUPPORT Unit content 1 Understand the purpose of providing business and administration support Purpose: eg to ensure consistency. economic and efficient use. conference calls. planning and co-ordinating activities and resources. telephone technique. approval of minutes or record. amendments. negotiating alternative arrangements. processing expenses 2 Know how to operate office systems and equipment Diary systems: type eg paper. using features appropriately. appropriate equipment. changes to entries. working to appropriate timescales or deadlines 3 Be able to organise and provide administrative support for meetings Organisation: type of meeting. managing diaries. location. security of information transmitted Office equipment: types eg photocopier. communication skills Electronic communication systems: communicating effectively using email eg email etiquette. to support departmental functions Types of support: eg supporting meetings. folders. working within agreed timescales. venue. information and support needed. to make effective use of time. delegates/delegate list. purpose. forward. message systems. laminating. other features of email software eg contacts lists. agenda. collating/dispatching papers. instruction manuals. people involved. implications of changes/new entries. date. electronic. using functions correctly and appropriately eg reply. meeting brief. meeting papers. expenses 54 BF017259 – Specification – Edexcel Level 2 BTEC First Certificate and BTEC First Diploma in Business – Issue 1 – January 2006 . currency of information. recording information eg purpose of entry. special requirements Internal meeting support: documentation for delegates. layout of room. mail from unknown senders. problems. minutes or record of meeting. ensuring outcomes meet appropriate requirements or standards. training in usage. messaging. producing documents. sending attachments. fax. meeting delegate needs. prioritising diary entries. equipment. making/receiving calls. circulation External meeting support: eg diary management. copy. communicating diary information.

legislation issues. accuracy. accuracy. agreed timescales. storage of information. procedures. problems. legislation issues. accessing information system. security and confidentiality. records. procedures for locating/retrieving information.UNIT 6: PROVIDING BUSINESS AND ADMINISTRATION SUPPORT 4 Be able to demonstrate the procedures needed to process. agreed timescales Archive: confirming/identifying information for archiving. retrieve and archive information Process: information required. approved locations. legislation issues. format for providing information. updating Retrieve: confirming/identifying information for retrieval. retrieval from archive BF017259 Specification – Edexcel Level 2 BTEC First Certificate and BTEC First Diploma in Business – Issue 1 – January 2006 55 . procedures for archiving information.

P4 describe the use of office equipment to meet different business requirements P5 organise a meeting and provide administrative support P6 describe the procedures needed to process. retrieve and archive information. the learner is able to: M1 D1 M2 D2 explain the appropriate use of office equipment types. Grading criteria To achieve a merit grade the evidence must show that. the evidence that the learner presents for assessment needs to demonstrate that they can meet all of the learning outcomes for the unit. The criteria for a pass grade describe the level of achievement required to pass this unit. 56 BF017259 – Specification – Edexcel Level 2 BTEC First Certificate and BTEC First Diploma in Business – Issue 1 – January 2006 . in addition to the pass criteria. features and functions to suit different business purposes explain the organisation and administrative support provided for meetings. Guidance to support the assessment of this unit is available on page 59. compare and contrast paper and electronic diary systems To achieve a distinction grade the evidence must show that.UNIT 6: PROVIDING BUSINESS AND ADMINISTRATION SUPPORT Grading grid In order to pass this unit. in addition to the pass and merit criteria. the learner is able to: analyse the contribution that office systems and equipment make to the provision of business and administration support To achieve a pass grade the evidence must show that the learner is able to: P1 describe the purpose and types of business and administration support P2 operate a diary system to support business purposes M3 P3 demonstrate appropriate telephone techniques using the features of a telephone system analyse the organisation and administrative support provided for a meeting and recommend any improvements that could have been made.

UNIT 6: PROVIDING BUSINESS AND ADMINISTRATION SUPPORT Essential guidance for tutors Delivery The primary format for this unit should be practical delivery. Subgroups can then compare their findings as a whole group and discuss the differences. They should have the opportunity to explore the wider facilities offered by electronic systems. Learners can work in discussion groups to focus on the key points of the purpose of providing business and administration support — eg to ensure consistency. linking diary management with organising and providing administrative support for meetings. make contact. Learners will also benefit from exposure to both electronic and paperbased systems. Case study materials may be useful as an introduction. tutors need to provide a platform of knowledge enabling learners to understand the purpose of providing business and administration support. They also need to understand the importance of communication in connection with diary management. However. Learners will need to develop their understanding of telephone systems and the role employees have in making calls and receiving calls. many of which are transferable across other units. When making calls. The procedure for receiving calls has strong similarities that learners should be encouraged to identify. including: • • • • • • • questioning and listening skills research skills to find information communication skills presentation summarising information using technology problem solving. communicate the information required to achieve the purpose of the call and summarise the outcomes of the conversation before ending the call. in order to highlight the business and administration support needs for that organisation. learners will need to establish the purpose of the call. It is important for learners to gain experience in diary management. to support departmental functions — although they should not be afraid to go beyond the content and should focus on the needs of organisations in their area. supported by in-tray exercises that enable learners to process. A number of different skills are involved. Groups may benefit from being allocated to a local business that learners may have visited for another unit. providing learners with opportunities for experiential learning wherever possible. to support managers. Learners also need to explore the types of support that organisations need. amend and cancel diary entries. obtain the name and numbers of the person to be contacted. Discussion groups could be asked to focus on the same business they used to discuss the purpose of providing business and administration support or to encourage wider thinking could be asked to base their discussions on an organisation previously used by another group. Role plays based on variations to the in-tray exercises will provide a higher sense of reality and ensure that diary management is communicated to and from the diary owner. to make effective use of time. Learners need to understand the importance of answering the phone in a way that reflects organisational procedures (these will differ across organisations and tutors BF017259 Specification – Edexcel Level 2 BTEC First Certificate and BTEC First Diploma in Business – Issue 1 – January 2006 57 .

Take the attendance list. Listen to discussions and make notes. Learners should demonstrate this approach when they are practising and developing their call handling skills. Throughout both processes. Finalise the agenda. both for themselves and for the organisation they are to represent. BF017259 – Specification – Edexcel Level 2 BTEC First Certificate and BTEC First Diploma in Business – Issue 1 – January 2006 Meeting . The later section on external meeting support is based on the presumption that the line manager is in fact a delegate at someone else’s meeting and therefore would have a different range of support needs. deleting messages that have been dealt with and leaving messages on other people’s systems are all functions in which learners must develop skills and understanding. Procedures should include identifying the caller (including where they are calling from and what they need). transferring calls where requested. Prepare documents prior to the meeting. The unit addresses a range of issues relating to internal meeting organisation and support. such as preparing agendas. analyse and ensure an understanding of content of papers.UNIT 6: PROVIDING BUSINESS AND ADMINISTRATION SUPPORT should ensure that appropriate examples are provided). responding within agreed timescales. learners need to be aware of the importance of projecting a positive image. possibly in pairs or small groups: Preparation • • • • • • • • • 58 Read minutes and agenda of previous meeting (if appropriate and available) and meet with chair to negotiate the agenda. and taking/relaying messages according to the caller’s needs. which is why only an exemplar range is mentioned in this unit. Practical experience will be the most effective way of developing learners’ skills. such as making accommodation or travel arrangements. although tutors should be conscious of the time demands of a large group. Consider how delegates might respond to different agenda items. Standard equipment such as photocopiers and ICT equipment will be supplemented by more specialised equipment such as scanners and binders. taking minutes and so on. Meet with the chair before the meeting to discuss issues. Learner will need to be introduced to the types of equipment and resource faults they are likely to experience and how these should be dealt with. The final element of telephone systems that learners need to master is the voicemail message component. Telephone systems dovetail frequently with diary management and learners must develop skills in recognising the interchanges between the two. Research. To complete the operational side of office administration. Learners also need to be clear about issues such as security and confidentiality. collate the agenda papers and reports and distribute the agenda papers. Learners will benefit from some initial input on internal meeting organisation and administration. providing accurate and up-to-date information. This should relate to any meetings where the learner would be involved in supporting a line manager in running meetings to which delegates have been invited. Keeping the message system up-to-date. The following activities may be useful for learners to work through. There are endless different types of equipment. learners will also need to explore a range of office equipment and understand how this contributes to the smooth running of the office environment. Some case study materials may be useful to highlight key points or issues that learners need to be aware of. checking for callers’ messages. Check the room is fully prepared.

or from other sources such as other units. Tutors should also discuss with colleagues opportunities to integrate the development of evidence for Unit 4: Business Communication. Collect up confidential items which may have been distributed at the meeting. When learners are sufficiently experienced. Amend the meeting records as appropriate. Learner evidence should include records of them operating a diary system. retrieve and archive information. for example explaining the operation of chronological. Evidence should show a clear link between the purpose of support and the type of support being delivered. Post meeting • • • To complete this unit. tutors can embed a range of practical exercises. which should be supported with witness testimony statements. such as diary management. Leave at an appropriate time having clarified details including date of next meeting (if appropriate). Some theoretical input will set the scene. Learners need to demonstrate telephone techniques. role play or other integrated exercises. This can be either through simulation. learners should draw on their knowledge of businesses gained through visits and case studies to develop their description of the purposes and types of business and administration support. skills and understanding of filing systems and the procedures needed to process. This will provide the tutor with the advantage of making an assessment decision using paper evidence that reflects a standard set of meetings and appointments. retrieve and archive information. Assessment Learners will be expected to produce evidence that shows their knowledge and understanding of how business and administration support is provided. It may include: • • • • a presentation or report demonstrating learners’ understanding of the purpose of providing business and administration support records of learners operating office systems and equipment (supported by witness testimony statements where appropriate) records of learners organising and providing administrative support for meetings records of learners demonstrating the procedures needed to process. Learners should present at least two examples that are sufficiently different to show a recognisable contrast. written communications and other communication skills can be demonstrated in a telephone technique scenario to avoid unnecessary repetition. Take follow-up actions as appropriate. BF017259 Specification – Edexcel Level 2 BTEC First Certificate and BTEC First Diploma in Business – Issue 1 – January 2006 59 . This can be assessed by the tutor requesting various meetings and other arrangements to be recorded using a suitable diary system of the learner’s own choice. as well as comparing and contrasting manual and electronic systems. Write the draft minutes and distribute them in accordance with instructions. To meet the pass criteria. part-time work or work experience. learners need to develop their knowledge. particularly where oral instruction. filing procedures and others. alphabetical and numerical systems.UNIT 6: PROVIDING BUSINESS AND ADMINISTRATION SUPPORT • • • • Ensure the chair signs the minutes. Learners must have opportunities to operate the procedures involved and suitable intray exercises and role plays should be used. Write an action list for delegates and for self. telephone operations.

Both will demonstrate appropriate knowledge of modern equipment regardless of whether or not it was available for learners to use in practical circumstances. 60 BF017259 – Specification – Edexcel Level 2 BTEC First Certificate and BTEC First Diploma in Business – Issue 1 – January 2006 . To meet the distinction criteria. Links to National Occupational Standards. This may have been relatively simple and learners should provide evidence here that addresses a range of organisational and administrative support functions that they may not have had the capacity to demonstrate in reality. retrieve and archive information. Learners should also gather appropriate witness testimonies and/or tutor observation records to supplement the evidence they have generated for themselves. If equipment facilities were limited. For office equipment. Much of learners’ evidence will be generated through the documentation they prepare. much will depend on the capacity of the equipment they were using. other BTEC qualifications and other relevant units/qualifications This unit has links with Unit 1: Exploring Business Purposes and with Unit 4: Business Communication. There are also strong links with units in the Level 2 NVQ in Business and Administration including: • Unit 204: Manage diary systems • Unit 205: Organise business travel and accommodation • Unit 206: Deal with visitors • Unit 219: Use a telephone system • Unit 220: Operate office equipment. again emphasising the need for adequate resources and exercises. other BTEC units. learners need to provide evidence of their depth of knowledge and understanding. learners need to demonstrate the procedures needed to process. such as agenda and meeting minutes. learners need to compare and contrast paper and electronic diary systems and explain the appropriate use of office equipment. For the third merit criterion. They should carefully consider scenarios that they have experienced that will support them in their development of evidence and should consult with their tutors to ensure they have an appropriate platform on which to base their work. Whilst it is important for learners to understand how manual filing systems work. they should also aim to provide evidence of how these procedures are applied in an electronic environment. Tutors will not be able to observe all learner activities so it is important that learners are clear about how to present their evidence. should this have been applied to the same circumstances. where administrative effectiveness clearly depends on effective communication skills. They can draw on the diary evidence they have developed for the pass criteria (whether paper or electronic) and use this to compare and contrast against the alternative. For the final pass criterion. Tutors and learners should be conscious of the practical activity completed for the pass criterion.UNIT 6: PROVIDING BUSINESS AND ADMINISTRATION SUPPORT Learners also need to present their own evidence relating to the organisation of a meeting and the provision of administrative support. To meet the merit criteria. learners could explain what additional facilities they could have used had these been available. If this were advanced equipment. This will be heavily dependent on tutors providing an appropriate range of resources linked to in-tray exercises. A checklist based on the guidance in the Delivery Strategies section above would be helpful to ensure that key points are addressed. learners can explain how the facilities suited the purposes they were required to meet. learners need to explain the organisation and administrative support needed for meetings.

It is responsible for defining and promoting excellence in business and administration skills and practice across all industry sectors BF017259 Specification – Edexcel Level 2 BTEC First Certificate and BTEC First Diploma in Business – Issue 1 – January 2006 61 . Carysforth C and Neild M — BTEC First Business (Heinemann. problem solving and working with others. improving own learning and performance. 2004) ISBN 0435401386 Fardon. the following website is only indicative of the type of material that is available.com The Council for Administration (CfA) — the National Sector Setting Body for Business and Administration. www. 2002) ISBN 1872962327 Websites change continuously.cfa.uk. including reports and trade press articles. Indicative reading for learners Materials that illustrate the level of learning required and that are particularly relevant. Nuttall and Prokopiw — GCSE Applied Business (Osborne Books. Learners should be encouraged to use a range of sources of information. Essential resources Learners should have access to library and internet facilities to support their research. information and communication technology. This unit may be useful in the delivery of this unit.UNIT 6: PROVIDING BUSINESS AND ADMINISTRATION SUPPORT This unit provides opportunities to gain key skills in communication.

1a Take part in a group discussion. ICT2.UNIT 6: PROVIDING BUSINESS AND ADMINISTRATION SUPPORT Key skills Achievement of key skills is not a requirement of this qualification but it is encouraged. • C2.1 Search for and select information to meet your needs. Improving own learning and performance level 2 When learners are: • developing and demonstrating skills in operating diary. They should be able to develop the following key skills evidence: LP2. Take responsibility for some decisions about your learning. Communication level 2 When learners are: • discussing the purpose and types of business and administration support delivering a presentation on the purpose and types of business and administration support. ICT2.1 LP2. telephone and filing systems and office equipment. Learners may need to develop additional evidence elsewhere to fully meet the requirements of the key skills specifications. Use different information sources for each task and multiple search criteria in at least one case. Suggestions of opportunities for the generation of level 2 key skill evidence are given here.3 Present combined information such as text with image. Staff should check that learners have produced all the evidence required by part B of the key skills specifications when assessing this evidence. text with number.2 Help set targets with an appropriate person and plan how these will be met.1b Give a talk of at least four minutes.2 Enter and develop the information to suit the task and derive new information. LP2. They should be able to develop the following key skills evidence: ICT2. image with number. Information and communication technology level 2 When learners are: • organising a meeting and providing administrative support.3 62 BF017259 – Specification – Edexcel Level 2 BTEC First Certificate and BTEC First Diploma in Business – Issue 1 – January 2006 . using your plan to help meet targets and improve your performance. They should be able to develop the following key skills evidence: C2. Review progress with an appropriate person and provide evidence of your achievements.

Check if the problem has been solved and identify ways to improve problem solving skills.1 Plan work with others.2 PS2.3 Working with others level 2 When learners are: • working as part of a team when developing and demonstrating skills in operating diary. BF017259 Specification – Edexcel Level 2 BTEC First Certificate and BTEC First Diploma in Business – Issue 1 – January 2006 63 . WO2. telephone and filing systems and office equipment. PS2. They should be able to develop the following key skills evidence: WO2. They should be able to develop the following key skills evidence: PS2. and identify different ways of tackling it. Plan and try out at least one way of solving the problem. with help from an appropriate person.UNIT 6: PROVIDING BUSINESS AND ADMINISTRATION SUPPORT Problem solving level 2 When learners are: • dealing with problems arising from the organisation of a meeting or the provision of administrative support.2 Work co-operatively towards achieving the identified objectives.3 Review your contributions and agree ways to improve work with others.1 Identify a problem. WO2.

UNIT 6: PROVIDING BUSINESS AND ADMINISTRATION SUPPORT 64 BF017259 – Specification – Edexcel Level 2 BTEC First Certificate and BTEC First Diploma in Business – Issue 1 – January 2006 .

Active selling can be much more critical and therefore demands greater attention. they will learn how to follow up sales and record valuable information about their customers. For larger organisations. Businesses have always relied on people to personally sell goods and services. Whichever the case.UNIT 7: PERSONAL SELLING Unit 7: NQF Level 2: Personal Selling BTEC First Guided learning hours: 60 Unit abstract Every business has a purpose and that purpose frequently relates directly to the business’s customers. With a little effort. In fact. personal selling is the process that engages businesses directly with their existing and potential customers. The small business owner with a single retail outlet is unlikely to miss the opportunity of telling his or her customers about a new product that is available or a service that can now be provided. Learners will develop their understanding of the techniques and processes involved. this can be turned into a sale. Many businesses survive quite happily without engaging formal sales staff and customers buy its products and/or services quite naturally. Finally. including ways of responding to objections. They will learn how to prepare for selling and develop their personal selling skills. They will also learn about the legislation that affects personal selling. The personal selling process is becoming increasingly important with the rise in customer demand and expectations in our modern society. employees and businesses. BF017259 Specification – Edexcel Level 2 BTEC First Certificate and BTEC First Diploma in Business – Issue 1 – January 2006 65 . personal selling has helped us achieve the standard of living we enjoy today and it plays an increasingly significant role in our expanding economy. Learning outcomes On completion of this unit a learner should: 1 2 3 4 Understand the purpose of sales personnel Know how to prepare for personal selling Be able to demonstrate personal selling skills and processes Understand closing sales techniques and how to identifying customers’ objections. Active selling is not a priority in many cases but still this happens. This unit develops learners’ understanding of the role and importance of personal selling activities for customers. Closing sales is a skill often overlooked. Learners will develop their knowledge and understanding of sales staff and how they go about the business of personal selling. the picture is different.

identifying and meeting/exceeding customers’ needs. courteous and considerate sales person. income and revenue level. to employees. face-to-face. gathering feedback.UNIT 7: PERSONAL SELLING Unit content 1 Understand the purpose of sales personnel Purpose of sales personnel: increasing business sales. description of the product. product display. motivating sales people eg through commissions and bonuses based on sales targets. clarifying pricing issues eg discounting. drop in visits. associated service 66 BF017259 – Specification – Edexcel Level 2 BTEC First Certificate and BTEC First Diploma in Business – Issue 1 – January 2006 . reasons for buying. developing customer care. methods of approaching potential customers. motivation to sell. Personal selling processes: greeting and introduction. attracting customers’ attention and interest. good sales habits. maintaining eye contact. objectives to achieve during a sales call. personal space. career development Legislation affecting personal selling: eg • • • • • Consumer Credit Act 1987 Consumer Protection Act 1987 Sales of Goods Act 1979 and 1995 Supply of Goods and Service Act 1982 Trade Description Act 1967 2 Know how to prepare for personal selling Identifying and finding potential customers: eg by cold calling. sales incentives. product options and availability. making a good impression eg dressing appropriately. telemarketing Preparation: identifying potential customer’s profile eg buying habits. good manners. special offers. to customers Knowledge and skills: knowing the product. types and purpose of communication. professional. treating customers with respect and consideration. presenting products/product information. preparation of the physical environment 3 Be able to demonstrate personal selling skills and processes Personal selling skills: communicating with customer. needs. positive attitude. benefits eg to the organisation. helping businesses to remain competitive. ability to close sales. providing information and services to customers. promoting good selling techniques. keeping up to date. product knowledge.

silent close. methods of recording eg in an organised and concise manner. up-selling and further sales Recording customer information: customer information. customer satisfaction and feedback. competition. overcoming objections Closing sales: persuading customers to buy the product. customer care. repeat sales. closing techniques eg direct close. alternative close. using ranking systems BF017259 Specification – Edexcel Level 2 BTEC First Certificate and BTEC First Diploma in Business – Issue 1 – January 2006 67 . handling complaints. customer needs. timing. customer history. follow up call. trial close. presumptive close Following up sales: eg product delivery. customer motivation.UNIT 7: PERSONAL SELLING 4 Understand how to identifying customers’ objections and closing sales techniques Responding to objections: eg price.

showing confident and effective personal selling skills explain how legislation might affect personal selling in two different situations compare and contrast the personal selling skills and processes used in two different situations. Grading criteria To achieve a merit grade the evidence must show that. 68 BF017259 – Specification – Edexcel Level 2 BTEC First Certificate and BTEC First Diploma in Business – Issue 1 – January 2006 . D2 To achieve a distinction grade the evidence must show that. in addition to the pass and merit criteria. in addition to the pass criteria.UNIT 7: PERSONAL SELLING Grading grid In order to pass this unit. the learner is able to: demonstrate excellent and confident personal selling in at least three different situations To achieve a pass grade the evidence must show that the learner is able to: P1 describe the purpose of sales personnel and the knowledge and skills required for personal selling M2 M3 P2 describe the legislation which affects personal selling P3 describe the preparation needed to support personal selling in two different situations evaluate the preparation to support personal selling and the personal selling skills and processes carried out in two different situations. The criteria for a pass grade describe the level of achievement required to pass this unit. the learner is able to: M1 D1 demonstrate an independent approach to a major part of their work. the evidence that the learner presents for assessment needs to demonstrate that they can meet all of the learning outcomes for the unit. Guidance to support the assessment of this unit is available on page 71. P4 demonstrate personal selling skills and processes in two different situations P5 demonstrate the process of closing sales in two different situations P6 demonstrate how to respond to customers’ objections in two different situations P7 describe the reasons for following up sales and recording customer information.

Rather. personal selling empowers and motivates them to work hard to gain the benefits in terms of financial and non-financial rewards. although tutors should be aware that it will also need formal input at various stages. Adapted case studies can then be used to introduce simulations and role plays. Tutors should consider the profile of the learner group and select an appropriate range of legislation to ensure that an effective knowledge base is developed. personal selling helps to provide them with the products (the goods or services) that they want or need. The professionals who provide the services have to sell to prospective customers the idea of retaining their firm. Other statutory legislation might be considered depending on the selling situation eg Weights and Measures Act 1987. perhaps through buying a piece of audio or sports equipment. personal selling helps them to achieve their objectives eg increasing sales and attracting more customers. Discussion groups can capitalise on such experiences to focus on the purpose of sales personnel and the kind of knowledge and skills they need to have in order to deliver an effective service. Learners need to develop their knowledge and understanding of how to prepare for personal selling. Communication skills should always be paramount but initially learners may not be expected to dress for the occasion. Tutors should be clear about the level of realism expected during role plays. they should understand the overarching principles and how such legislation affects the business of personal selling. followed by a few carefully chosen words that get the customer’s attention and generate interest. for example by greeting and welcoming them to the store/shop. Case studies can be used to present appropriate scenarios enabling learners to follow this process through. For business organisations. Tutors must also be aware that learners are not expected to have in-depth knowledge of such legislation. although this will become more important as the complexity of role plays develops and learners improve their skills. providing learners with core information which then requires them to apply their growing knowledge to the steps needed to prepare for personal selling. They may have already been involved in the business of personal selling as a customer. Learners need to appreciate how personal selling has helped achieve the standard of living we enjoy today. may not employ a separate sales force. Sales people also need to learn how to communicate with customers in verbal and non-verbal manners which enable them to present and display and describe their goods or service. For employees. microwaves and cars might never have taken off without the power of personal selling. Delivery should reflect the Level 2 nature of this unit and its host qualification. employees and consumers. For customers. Some businesses. Learners should also appreciate and understand opening lines for customers. Learners should be encouraged to recognise the importance and benefits of the sales function for businesses. They should relate back to the discussion groups and case study materials to recognise how potential customers are identified and how this leads through to the preparation stages. as products such as computers. Learners need to be aware of the legislation that affects personal selling. Case study materials can also be used to highlight specific issues. A range of legislation is suggested in the content but this is not exhaustive or comprehensive. BF017259 Specification – Edexcel Level 2 BTEC First Certificate and BTEC First Diploma in Business – Issue 1 – January 2006 69 . but that does not mean personal selling is not necessary.UNIT 7: PERSONAL SELLING Essential guidance for tutors Delivery This unit is essentially practically orientated. It also helps employees to understand more about customers’ existing and potential needs and how to fulfil them. Learners need to realise the importance of the knowledge and skills needed to support personal selling. such as legal and accounting firms.

but would need to be managed carefully. The time investment can often be proportionate to the value of the anticipated sale. the presentation’s purpose is always the same — to personally communicate a product message in such a way that it will convince a potential customer to buy. For more complex selling situations. Learners should also appreciate that the amount of time and resources a salesperson invests in pre-sales preparation is determined in large by the nature of the business and its marketing and sales objectives. and also responses to customer objections could also be approached through role play complemented by 70 BF017259 – Specification – Edexcel Level 2 BTEC First Certificate and BTEC First Diploma in Business – Issue 1 – January 2006 . learners can begin developing the skills and processes that support and deliver personal selling. leading to identification of what skills and processes were involved in a particular situation. especially in the case of commercially trained buyers representing business customers. Learners may not be able to replicate the full sophistication of the retail world but they can nonetheless improvise on available facilities with a degree of imagination. Closing sales techniques such as silent close. Returning to the discussion groups and case study materials introduced earlier. Input from the tutor will clarify where this has happened during their experiences as a customer. visits to supportive businesses under carefully controlled conditions will enable learners to observe personal selling in action. Learners should also appreciate how the presentation step in the selling process is the most crucial. implications of market competition and likely impact upon buyer behaviour. Although it can take many forms. Preparation of the physical sales environment is also a key aspect. Visits to supportive employers to observe preparation for personal selling in action would be useful. Tutors should also select appropriate video resource materials to illustrate various points that learners may not otherwise experience. health and safety hazards. When a salesperson is knowledgeable about the prospect and well prepared for a sales process. furnishings. use of music. installation. as it is the stage in the selling process at which the salesperson gets a purchase commitment from the buyer. they will greatly improve chances of the business achieving its objectives. preparation of the sales physical environment which includes accessibility eg for disabled people. Learners should appreciate the importance of closing sales. Examples of promotions can be found in trade journals or business-related magazines. for example in many retail environments. learners may experience call centres handling sales for a mail order catalogue as a customer. One aspect of sales techniques that learners may be unaware of is that of closing sales and handling objections. even if learners themselves are unlikely to pursue this direction in their future careers. dividing learners into pairs or very small groups to avoid any unwelcome exposure for the business. direct close and alternative close. For example. Simulations and role plays should reflect the interests and requirements of the learner group but should also address situations that they may not experience naturally. available options. but it is important for them to appreciate the significantly different approach to personal selling as an operator. for example a new car or house purchase would deserve considerably greater time investment than a washing machine or a pair of new trainers. as illustrated by retailers such as Office World. as well as the consumer market. maintenance and warranty) and an explanation of how the product will benefit the customer or how it has benefited other customers. initially through discussion and sharing of experiences through the customer’s eyes. for office furniture and stationery. Visiting speakers can also deliver useful presentations relating to this area of content.UNIT 7: PERSONAL SELLING Pre-sales preparation includes significantly detailed knowledge of products or services along with knowledge of likely buyer behaviour. Tutors can then introduce simulations and role play scenarios to enable learners to acquire and practice the skills and processes on which this section of content is based. Role play may be used for the preparation of the selling process which includes full knowledge of the product. Once again. Staples and IKEA which compete in the business market. an effective presentation should include a detailed description of the product. associated services (such as delivery. physical décor.

Role plays and simulations should be carefully constructed where real work situations are not available. Learners should also understand that most sales people depend on repeat sales. It may include: • • • • a presentation or account of the purpose of sales personnel records of how learners have responded to customers’ needs in a selling personal situation records of how they closed sales and responded to customer’s objections records of their approach to their work. for example. Learners must also develop their knowledge and understanding of the importance of following up sales and recording information. The criteria require learners to demonstrate an independent approach to a major part of their work. will help to target repeat customers and make the business of personal selling more effective. Assessment Learners will be expected to produce evidence that shows their knowledge and understanding of personal selling. along with the risks of alienating unhappy customers who may spread bad publicity. Learners should present practical evidence wherever possible. particularly in relation to how this can be used to support and develop the business. learners need to understand the importance of making sure that the product has been delivered properly and the customer is satisfied. the knowledge and skills required for personal selling and the legislation that impacts on personal selling. learners may be effective at preparing for selling and demonstrating personal selling skills and processes. Role plays and simulations will again enable learners to acquire and practice the skills they would need to successfully complete a sale. Learners should draw on examples from case studies. Learners should also recognise how inexperienced sales people may avoid the follow up stage because they fear facing an unhappy customer. simulations or real work experience gained through part-time work or a period of work experience. Learners should explore various mechanisms of recording and managing such information.UNIT 7: PERSONAL SELLING learners’ own experiences as consumers. This can be achieved through case studies. particularly to identify aspects of personal selling techniques and how to respond to customers objections. role plays and other practical experience. During this follow up stage of the selling process. tutors should use their professional judgement to assess the level of independence a learner has achieved in personal selling situations. Again. supported by written or verbal descriptions. Evidence for this unit may be gathered from discussions. so it is important that they follow up on all sales and do not ignore the customers once the first sale is made. BF017259 Specification – Edexcel Level 2 BTEC First Certificate and BTEC First Diploma in Business – Issue 1 – January 2006 71 . To achieve a pass. visits they have made to local businesses or personal/work experience to illustrate their work. Case studies may be useful. visits to commercial organisations. Television consumer ‘watchdog’ programmes and material produced by the Consumers’ Association may be useful along with websites drawing attention to poor quality of business service. but not as successful when closing sales. This makes provision for some weaknesses in some areas. Identifying customer history. case study materials can illustrate how and where different closing techniques can be used and how objections should be handled. For example. Opportunities for building a continuing relationship with regular customers could be explored. including a work placement or evidence from a partor full-time job. learners need to provide a description of the purpose of sales personnel. To meet the merit criteria.

At least three different situations should be covered and should show an acceptable level of contrast. role plays or simulations if these will provide appropriate supporting evidence. improving own learning and performance. However. other BTEC qualifications and other relevant units/qualifications This unit has links with: • • • • • • • • • • • Unit 1: Exploring Business Purposes Unit 2: Developing Customer Relations Unit 4: Business Communication Unit 8: Doing Business Online Unit 9: Exploring Business Enterprise Unit 10: Starting a Small Business. Unit 1: Give customers positive impression of yourself and your organisation Unit 2: Deliver reliable customer service Unit 3: Develop customer relationships Unit 6: Develop personal performance through delivering customer service Unit 7: Promote additional products or services to customers. learners must demonstrate excellent and confident personal selling covering a range of different situations. In this instance. Where this cannot be achieved. However. role plays or simulations if these will provide appropriate supporting evidence. for example. Where this cannot be achieved. 72 BF017259 – Specification – Edexcel Level 2 BTEC First Certificate and BTEC First Diploma in Business – Issue 1 – January 2006 . The learner must also evaluate the preparation to support personal selling and the personal selling skills and processes carried out in two different situations.UNIT 7: PERSONAL SELLING When comparing and contrasting the personal selling skills and processes used in two different situations. videos. problem solving and working with others. for example a call centre sale compared to a shop floor sale. such as case study materials. Learners can base this evaluation on real work experience. learners can make use of real work experience. such as preparation or closing. application of number. To achieve a distinction. selling hotel accommodation in contrast to selling sports equipment in a retail outlet. if one represented a straightforward sale and one was a difficult customer that would be acceptable. or their own observations of the personal selling process in action. other BTEC units. such as case study materials. videos. Links to National Occupational Standards. learners can base their evidence on other sources. This unit also has links with the following units in the Level 2 NVQ in Customer Service: This unit provides opportunities to gain key skills in communication. the third situation should be in marked contrast. or their own observations of the personal selling process in action. Selling in a different environment would also be acceptable. Weaknesses in one area. and explaining how legislation might affect personal selling in two different situations. will prevent the learner from achieving the distinction criteria. A different customer in a similar selling situation would not be acceptable. The learner must also demonstrate these abilities in a range of different situations. information and communication technology. learners can base their evidence on other sources. the level of excellence and confidence must be comprehensive and cover all practical aspects.

Nuttall C and Prokopiw J — GCSE Applied Business (Osborne Books. Employers need to be carefully briefed about what would be involved and the potential impact on their business. Tutors must negotiate carefully with employers who are willing to support learners visiting their premises to observe personal selling in action. Second Edition (Collins. Agreement should also be reached about implications for customers and how such visits are best handled. Indicative reading for learners Materials that illustrate the level of learning required and that are particularly relevant. 2002) ISBN 1872962327 Wall J and Wales N — Nuffield — BP Business and Economics for GCSE. allowing learners then to take over and identify the on-going process or explore different potential outcomes. 2001) ISBN 000711639X BF017259 Specification – Edexcel Level 2 BTEC First Certificate and BTEC First Diploma in Business – Issue 1 – January 2006 73 . delivery and closure of personal selling are essential. Fardon M. This in turn would require employers to brief their staff to avoid any misunderstandings on the shop floor.UNIT 7: PERSONAL SELLING Essential resources Case study materials linked to the preparation. Some should be selected or developed to illustrate the whole sequence (tackled in stages to avoid overwhelming learners) while others should be developed to a certain stage.

UNIT 7: PERSONAL SELLING

Key skills

Achievement of key skills is not a requirement of this qualification but it is encouraged. Suggestions of opportunities for the generation of level 2 key skill evidence are given here. Staff should check that learners have produced all the evidence required by part B of the key skills specifications when assessing this evidence. Learners may need to develop additional evidence elsewhere to fully meet the requirements of the key skills specifications.

Application of number level 2 When learners are: • They should be able to develop the following key skills evidence: Interpret information from a suitable source. Use your information to carry out calculations to do with: a b c d N2.3 Communication level 2 When learners are: • • considering issues surrounding their experiences of sales delivering a presentation of the purpose of sales personnel and the knowledge and skills they need reading staff handbooks relating to personal selling skills and processes preparing a summary of the purpose of sales personnel and the knowledge and skills they need. They should be able to develop the following key skills evidence: C2.1a C2.1b Take part in a group discussion. Give a talk of at least four minutes. amounts and sizes scales and proportion handling statistics using formulae.

N2.1 gathering and analysing data from sales and presenting results. N2.2

Interpret the results of your calculations and present your findings.

C2.2

Read and summarise information from at least two documents about the same subject. Each document must be a minimum of 500 words long. Write two different types of documents each one giving different information. One document must be at least 500 words long.

C2.3

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UNIT 7: PERSONAL SELLING

Information and communication technology level 2 When learners are: • They should be able to develop the following key skills evidence:

ICT2.1 Search for and select information to meet your gathering and analysing data needs. from sales and presenting results. Use different information sources for each task and multiple search criteria in at least one case. ICT2.2 Enter and develop the information to suit the task and derive new information. ICT2.3 Present combined information such as text with image, text with number, image with number.

Improving own learning and performance level 2 When learners are: • acquiring and practicing personal selling skills and demonstrating personal selling processes. They should be able to develop the following key skills evidence: LP2.1 LP2.2 Help set targets with an appropriate person and plan how these will be met. Take responsibility for some decisions about your learning, using your plan to help meet targets and improve your performance. Review progress with an appropriate person and provide evidence of your achievements.

LP2.3 Problem solving level 2 When learners are: • dealing with difficult customers or personal selling situations.

They should be able to develop the following key skills evidence: PS2.1 Identify a problem, with help from an appropriate person, and identify different ways of tackling it. Plan and try out at least one way of solving the problem. Check if the problem has been solved and identify ways to improve problem solving skills.

PS2.2 PS2.3

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UNIT 7: PERSONAL SELLING

Working with others level 2 When learners are: • working as part of a team on the design and execution of a sales promotion. They should be able to develop the following key skills evidence: WO2.1 Plan work with others. WO2.2 Work co-operatively towards achieving the identified objectives. WO2.3 Review your contributions and agree ways to improve work with others.

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Learning outcomes On completion of this unit a learner should: 1 2 3 4 Understand different online business activities Know the benefits of an online business presence Understand the operation of an online business Understand the business feasibility of going online. The market is growing. BF017259 Specification – Edexcel Level 2 BTEC First Certificate and BTEC First Diploma in Business – Issue 1 – January 2006 77 . However. making the most of rapidly developing technology and the opportunities it offers. Many businesses routinely quote a web address for customer ordering and businesses using television as a marketing medium use the internet as a major vehicle for customer purchases. Online business has a particular attraction for those who cannot easily travel to a conventional retail outlet because of problems of mobility or isolation. language is a problem that has to be overcome. If there is to be a global presence. Setting up such a business requires a great deal of expertise. Having received orders there is a considerable distribution problem to be faced together with the means of accepting payments. Learners will be introduced to some of the types of online business activity. Small online businesses using a single website can reach the same global market as a much larger business with a more complex web presence. The feasibility of implementing an online presence as a feature of business strategy is also considered. ranging from websites as merely ‘passive brochure ware’ to those offering interactive product customisation and online buying. Online business is particularly attractive to small. with the increasing ownership of personal computers and the growing number of internet users particularly using broadband connections. The website has to be constantly maintained and updated. doing business online is not appropriate for all businesses and owner/managers need to carefully consider a wide range of issues and implications before deciding whether an online presence is right for their business.UNIT 8: DOING BUSINESS ONLINE Unit 8: NQF Level 2: Doing Business Online BTEC First Guided learning hours: 60 Unit abstract More and more businesses are working towards or achieving an online business presence. The benefits of an online presence are explored along with potential difficulties so that learners may consider the extent to which an online presence would be likely to assist the achievement of business aims and objectives. specialised businesses that might otherwise have difficulty reaching a specialised but global market. There are problems with online business. The business is available to customers around the clock every day of the year. although specialised software is making this easier. The cost of marketing and advertising is greatly reduced and there is no need for expensive retail outlets in prime locations.

vulnerability to hostile attack eg denial of service. set-up expenses offset against uncertain future revenue streams. providing information only 2 Understand the business feasibility of going online Planning issues: suitability of the business for an online operation. potential use of personal information. use of call centres. information. loss of data. education Sector: eg public. desired extent of online operations eg passive. unfamiliarity with technology. booking flights and hotel rooms 78 BF017259 – Specification – Edexcel Level 2 BTEC First Certificate and BTEC First Diploma in Business – Issue 1 – January 2006 . lack of personal contact with customers. partially and fully interactive. set-up issues eg in-house or outsourced. special requirements for fragile goods. private. complementing offline services eg mail order. advertising and marketing. voluntary/not-for-profit sector Levels/types of online presence: passive brochure ware. liability for wrong or out-of-date information. software and program adaptation.UNIT 8: DOING BUSINESS ONLINE Unit content 1 Understand different online business activities Range: eg direct online selling of goods. relationship with partners eg financial services. global business regulations eg labelling. choice of domain name(s). distribution and delivery services 3 Understand the operation of an online business Operation issues: payment security. availability of resources to cope with potentially global demand. government services. ability to cope with massively increased market interest. offering interactive customisation eg digital image processing. errors in ordering. internet services. financial fraud Operational risks: web-site updating. breakdowns in service Financial issues: eg initial investment costs of hardware. direct online selling of services. tax liabilities for international transactions Distribution issues: eg scale of the business eg global distribution. unfamiliar trading conditions. cost of distribution of physical goods. hijacking the website. inviting online transactions. changing user specifications for desired service levels. requirement for customisation. health and safety Staffing issues: eg potential outsourcing of key functions. availability of technical and design skills. availability of skills available to run an online business Implementation issues: potential difficulties of online implementation. hardware and software failures. language problems with global customer base. ease of distribution of services eg online insurance quotations.

rapid payment. use of low-cost labour. reduced stockholding Financial advantages: improved cash flow through fewer bad debts.UNIT 8: DOING BUSINESS ONLINE 4 Know the benefits of an online business presence Market presence: global presence. access out of normal business hours. no expensive cash handling. online order tracking. customers with travel difficulties. access to new markets eg remote locations. 24-hour visibility. access from around the world. rapidity of response to customer interest. freedom of low-cost location. low overheads. medium and large businesses. rapid response to orders and enquiries. poor transport links. opportunities to analyse online competition and to keep up with competitors Marketing benefits: the ability to collect market research information from online enquiries. equality of presence between small. access from a wide range of devices. customers with disabilities. access from a wide range of devices eg computers. ease of entry BF017259 Specification – Edexcel Level 2 BTEC First Certificate and BTEC First Diploma in Business – Issue 1 – January 2006 79 . mobile phones Level of response: offering delivery-to-door as a sales feature.

To achieve a distinction grade the evidence must show that. 80 BF017259 – Specification – Edexcel Level 2 BTEC First Certificate and BTEC First Diploma in Business – Issue 1 – January 2006 . the learner is able to: M1 D1 explain the planning and implementation issues for a business organisation going online analyse the advantages and disadvantages of D2 the operational issues and risks for a business organisation planning to go online explain the potential benefits for a business planning to go online. Grading criteria To achieve a merit grade the evidence must show that. Guidance to support the assessment of this unit is available on page 82. and overcome. in addition to the pass and merit criteria. some of the operational risks associated with an online presence. financial and distribution issues that a business organisation operating online should consider P5 describe the benefits to a business organisation marketing a product or service online.UNIT 8: DOING BUSINESS ONLINE Grading grid In order to pass this unit. in addition to the pass criteria. the learner is able to: make and justify recommendations for a business organisation considering going online To achieve a pass grade the evidence must show that the learner is able to: P1 describe three different business organisations and activities operating online M2 P2 describe the planning and implementation issues a business organisation would need to consider to go online M3 P3 prepare information on the operational issues and risks for a business organisation operating online suggest ways in which a business could prepare for. The criteria for a pass grade describe the level of achievement required to pass this unit. P4 describe the staffing. the evidence that the learner presents for assessment needs to demonstrate that they can meet all of the learning outcomes for the unit.

internet services eg search engines. (Tutors could consider at this stage the value of learners’ findings to the local business communities. Tutors should bear in mind that such businesses are not required to be local. eg travel. weather. Tutors should ensure that the focus of subgroups covers the different sectors specified. as well as the type of business being operated. advertising and marketing. Disadvantages of an online presence must also be explored to avoid learners having a one-sided view that online business is always better. household equipment. The features of an online presence could be explored through learners accessing suitable websites to obtain information or order catalogues and brochures. The learner group could usefully agree to divide into smaller groups. although it would be wise to capitalise on local relationships where these have already been developed. Subgroups can then re-convene to pool and compare their findings. Speakers from businesses who have implemented an online presence would be especially useful. banking and financial services. Groups should also be encouraged to find contrasts in the levels and types of online presence. with a third investigating the issues from the perspective of a long-established online business. ranging from passive information-only websites to fully interactive digital businesses. If the school or college has its own website it could be used for illustrative purposes and learners could evaluate its advantages and its ease of use. each investigating a specific area of online business activities. whilst another could carry out similar research from the perspective of a business that has already successfully gone online recently. The range should include direct online selling of goods eg books. However. information eg news. The world of online business is constantly changing and tutors must be aware of the latest developments in business and technology if learners are to receive the maximum benefit from this unit. Learners should be encouraged to explore a wide range of online business activities. For example. Online business should be interpreted in its widest sense to include not only computerbased business but business accessed by mobile phones with which learners may be more familiar. and education eg online courses. Learners need a broad understanding of the range rather than an in-depth knowledge of them all. Case studies and simulations can be used to study particular examples of online business activities. one subgroup could research the issues from the perspective of a business that is planning to go online. government services eg information and online forms. This unit will introduce learners to a wide range of online business activities. Groups of learners can discuss their own experiences of online buying. Learners should then turn their attention to the planning and implementation issues that will inform the feasibility of a business going online.UNIT 8: DOING BUSINESS ONLINE Essential guidance for tutors Delivery This area of business activity is still relatively new to certain sections of the business world but learners might already be involved in using online business operations. Opportunities should be taken whenever possible to compare online businesses with conventional offline ones. direct online selling of services. tutors must ensure that appropriate theory is delivered for different sections of the content. accommodation. Support from the business community is particularly valuable for this aspect of content. A talk from the webmaster would be an additional advantage. despite learners’ urges to tackle this unit entirely through internet research. Dividing the learner group into subgroups would offer benefits through exploring different opportunities or working towards a different focus. DVDs. Tutors should feel free to use their judgement when delivering the unit.) BF017259 Specification – Edexcel Level 2 BTEC First Certificate and BTEC First Diploma in Business – Issue 1 – January 2006 81 .

provided that they are selective in what they include in their evidence. These differences should be clear. another an education provider. Tutors should feel free to use whatever assessment methods they feel are appropriate for the learners using available time and resources. but tutors must also address an appropriate range of related staffing. Much of the argument may be from textbooks or tutors’ notes. For example. Assessment Learners will be expected to produce evidence that shows their knowledge and understanding of issues relating to doing business online. which can validly test whether the learning outcomes have been achieved and the grading criteria met. Learners should be encouraged to use printouts of web pages or actively use live websites if resources are available (rather than just include them). Learners can research the market presence and marketing benefits from a number of businesses and. staffing. 82 BF017259 – Specification – Edexcel Level 2 BTEC First Certificate and BTEC First Diploma in Business – Issue 1 – January 2006 . The practical nature of the unit should always be borne in mind when deciding on assessment strategies. examples. should be considered. Learners’ group investigations can be carried out as before. Both tutors and learners should be conscious of the medium on which they are focusing.UNIT 8: DOING BUSINESS ONLINE The division and focus of subgroups for the second learning outcome can also be applied in a similar way to the operational issues and risks. for example. Pass grade learners will provide evidence which will be a straightforward description of the key features. depending on the resources available. but it would be particularly useful to involve two visiting speakers where possible: firstly a specialist online advisor to ‘sell’ the idea. an exhibition. financial and distribution issues that form the focus of the third learning outcome. financial and distribution issues. The same subgroup strategy can be applied to the final learning outcome. written reports. Tutors should be aware of the learning styles of the learners to avoid disadvantaging any particular learning style when deciding on an assessment strategy. particularly where such businesses have supported delivery of other units). another a service provider such as a travel agent. again. production of a simple website or a presentation using an online computer to demonstrate online business. Research will need to take place but this does not necessarily require face-to-face investigations (although this may he helpful where local businesses are involved. one business might be an online retailer. although the emphasis here is likely to be on those already operating successful online businesses. advantages and disadvantages and implementation problems of online businesses with few. Tutors should make it absolutely clear that there is no benefit to volume if selection is lacking. who should also ensure that e-business operators are properly briefed about their involvement and the nature and level of support that will be expected of them. It may include: • • • a presentation that demonstrates understanding of different online business activities and the benefits of an online business presence an account of the operation of an online business a report summarising the business feasibility of going online. Evidence for assessments can be presented in a variety of ways. although this should be carefully monitored by the tutor. if any. Learners must describe at least three different businesses. and second a current online business operator with first-hand and current experience. one-to-one presentations. Learners should be encouraged to consult with tutors as a resource in order to complete their assignments. Learners should maximise opportunities for electronic interchange. the tutor should take steps to ensure that the businesses selected offer a balanced picture of the range specified under the first learning outcome. Tutors should select these speakers carefully in order to ensure a balanced delivery. Any method. The primary focus of this learning outcome is on the operational issues and risks.

other BTEC qualifications and other relevant units/qualifications This unit has links with Unit 1: Exploring Business Purposes. Essential resources Tutors must ensure that all learners have access to the internet. This unit also provides opportunities to gain key skills in communication. How to Make a Profit Online (Virgin Books. 2002) ISBN 1872962327 Holden G — Starting an Online Business for Dummies (Hungry Minds. to develop their understanding of the implications of online business. Recommendations should be based on an evaluation of planning and implementation issues for that business. Links to National Occupational Standards. 1998) ISBN 1873929846 Cumming T — Little E. Indicative reading for learners Materials that illustrate the level of learning required and that are particularly relevant. other BTEC units. 2001) ISBN 0753505428 Fardon M. information and communication technology and problem solving. Nuttall C and Prokopiw J — GCSE Applied Business (Osborne Books. Learners will be able to present work in their own words with less reliance on textbooks and tutor notes. Anderton A — GCSE Business Studies (Causeway Press. They should be able to compare and contrast online and offline businesses. distinction level learners will be able to make independent judgements with less reliance on textbooks and the tutor notes to formulate their answers. 2002) ISBN 0765416558 Wall J and Wales N — Nuffield — BP Business and Economics for GCSE. 2001) ISBN 000711639X BF017259 Specification – Edexcel Level 2 BTEC First Certificate and BTEC First Diploma in Business – Issue 1 – January 2006 83 . Big Business. This will enable learners to carry out research both online and face-to-face with local owner/managers. Tutors should also explore local businesses and establish a directory of internet addresses for local organisations. and learners should consider comparisons with offline businesses. In addition to satisfying the merit criteria. compared with pass grade learners. They must also develop a bank of case study materials that link aspects of learning to internet sites. wherever appropriate. although this is not essential. Second Edition (Collins. The merit criteria ask for evidence relating to ‘a business’. It would help the coherence of learners’ work if one business were tracked through all three merit criteria. Evidence could again relate to the single business on which the merit criteria may be built. Unit 7: Personal Selling. so learners can extend their research in an orderly fashion. Unit 9: Exploring Business Enterprise and Unit 10: Starting a Small Business as online operations relate to sales and self-employment at a variety of levels.UNIT 8: DOING BUSINESS ONLINE At merit level evidence will be illustrated with examples.

1 Search for and select information to meet your needs. ICT2. text with number. PS2. Check if the problem has been solved and identify ways to improve problem solving skills.3 Information and communication technology level 2 When learners are: • applying skills to selection.UNIT 8: DOING BUSINESS ONLINE Key skills Achievement of key skills is not a requirement of this qualification but it is encouraged. Suggestions of opportunities for the generation of level 2 key skill evidence are given here.2 Take part in a group discussion. They should be able to develop the following key skills evidence: PS2. C2. Use different information sources for each task and multiple search criteria in at least one case. Staff should check that learners have produced all the evidence required by part B of the key skills specifications when assessing this evidence. Learners may need to develop additional evidence elsewhere to fully meet the requirements of the key skills specifications.1a C2.1 Identify a problem. They should be able to develop the following key skills evidence: ICT2. Problem solving level 2 When learners are: • analysing problems a business online may be experiencing and identifying benefits. disadvantages and feasibility of doing business online. with help from an appropriate person.2 Enter and develop the information to suit the task and derive new information. They should be able to develop the following key skills evidence: C2. Read and summarise information from at least two documents about the same subject. and identify different ways of tackling it.3 84 BF017259 – Specification – Edexcel Level 2 BTEC First Certificate and BTEC First Diploma in Business – Issue 1 – January 2006 . Plan and try out at least one way of solving the problem. derivation and presentation of researched information relating to doing business online. One document must be at least 500 words long. disadvantages and feasibility. ICT2. image with number. Write two different types of documents each one giving different information.2 PS2. Communication level 2 When learners are: • discussing the potential benefits.3 Present combined information such as text with image. Each document must be a minimum of 500 words long.

Learners also need to explore the importance of a proper business plan. Any small business operation will cost money to run and that money is at risk if proper steps are not taken to prepare properly for business. Turning that dream into a successful business venture is a challenging task and one in which many will fail. which will have a clear impact on both their ability to prepare for business and actually run the business itself. success for small businesses can be hugely rewarding on both a personal and business basis. They need to consider separate issues to do with starting and running a business and also the extensive availability of advice and support. BF017259 Specification – Edexcel Level 2 BTEC First Certificate and BTEC First Diploma in Business – Issue 1 – January 2006 85 . This unit takes learners through the stages of preparing for business. resulting in business failures. a component that is frequently missing. the marketing and sales function and the critical importance of a range of financial issues. They will need to consider the contribution they can make to a business and what the benefits are. the different aspects that affect preparation and the knowledge. Learners also need to develop their knowledge and understanding of different aspects that affect preparing for business. However. skills and understanding learners will need to start and run a business if they should ever choose and have the opportunity to do so. Learning outcomes On completion of this unit a learner should: 1 2 3 Understand how to prepare for business Know how different aspects affect preparation for business Understand how to start and run a business. possibly leading to further business opportunities that arise from early efforts. Many new businesses are started with little thought. These include the implications of regulations and laws that impact on small businesses. Learners can study for either Unit 9: Exploring Business Enterprise or Unit 10: Starting a Small Business but not both. The unit begins by helping learners to understand their own strengths and weaknesses. with the right approach.UNIT 9: EXPLORING BUSINESS ENTERPRISE Unit 9: NQF Level 2: Exploring Business Enterprise BTEC Level 2 Guided learning hours: 60 Unit abstract Running their own business is the dream of most people at one time or another. either about the business itself or the process of preparing for business.

agencies and organisations offering advice or help. customer care. external organisations eg HM Revenue and Customs. profitability of the business. products or services. experience. analysing and meeting customer needs. cash flow forecasting. laws. skills. the importance of completing and keeping correct records Marketing and sales: reaching and retaining customers. areas for development or improvement. records. professional help Benefits of running a business: personal objectives.UNIT 9: EXPLORING BUSINESS ENTERPRISE Unit content 1 Understand how to prepare for business Own strengths and weaknesses: personal circumstances. competition. building customer relationships. barriers to starting/running a successful business. customers’ needs eg when and where they want products or services. personal selling. planning techniques. sales targets. availability of time. VAT returns. other considerations eg impact on personal and working life 2 Know how different aspects affect preparation for business Regulations and laws for small businesses: legal status eg sole trader. what work needs to be done to start and run a business. keeping and submitting business records. research techniques. money. ability to contribute to and run a business. environmental issues Financial issues: sources of finance. tax returns. possible customers. measuring financial success eg costs and income. funding and financial support. limited company. knowledge and abilities eg practical/technical skills. process for starting a business legally. statutory regulations. assets. profits. other relevant skills. personal savings. market research. education and training available 86 BF017259 – Specification – Edexcel Level 2 BTEC First Certificate and BTEC First Diploma in Business – Issue 1 – January 2006 . materials and supplies Advice and support: business support eg people. unique selling points. timing. space. promoting products or services. where and when a product or service can be sold. selling techniques. health and safety. business skills. security of income. technical support. planning ahead. organising and controlling expenses and income. licences. cost and price of products or services. HM Revenue and Customs. financial priorities. changes to financial situation 3 Understand how to start and run a business Business plan: the business idea. operating expenses and income. impact on working and personal life. suitability for self-employment or a small business Contributing to a business: own contribution eg personal time. start up costs. the need for forward planning Starting and running a business: the needs of a business. formal records eg leasing arrangements. business objectives. regulations and laws relating to records. partnership. marketing information. controllable and uncontrollable aspects. risks eg losing money. financial state of a business.

UNIT 9: EXPLORING BUSINESS ENTERPRISE Grading grid In order to pass this unit. using examples. Guidance to support the assessment of this unit is available on page 89. analyse the different aspects that will affect preparation for business explain. the learner is able to: M1 M2 D2 M3 explain the components of a business plan and the reasons for preparing one. in addition to the pass and merit criteria. To achieve a pass grade the evidence must show that the learner is able to: P1 describe how knowledge of personal strengths and weaknesses can be applied to preparing for and contributing to a business P2 describe how regulations and laws for small businesses can affect preparation for business P3 describe how small businesses prepare to market and sell products or services P4 describe the financial issues that can affect preparation for business P5 outline the contents of a business plan when starting and running a business P6 describe the sources of advice and support available when preparing for business. in addition to the pass criteria. the benefits of running a business D1 To achieve a distinction grade the evidence must show that. Grading criteria To achieve a merit grade the evidence must show that. the evidence that the learner presents for assessment needs to demonstrate that they can meet all of the learning outcomes for the unit. BF017259 Specification – Edexcel Level 2 BTEC First Certificate and BTEC First Diploma in Business – Issue 1 – January 2006 87 . the learner is able to: evaluate the issues that need to be considered when starting and running a business make and justify recommendations for starting a business. The criteria for a pass grade describe the level of achievement required to pass this unit.

UNIT 9: EXPLORING BUSINESS ENTERPRISE Essential guidance for tutors Delivery At the outset of this unit. Presentations must cover the purpose of marketing and sales. Where the analysis is an objective appraisal of learners’ abilities. arrangements can be made for learners to visit local business people in small groups or pairs to discuss the principles behind starting and running a business. or other financial advisers. which should focus on what they have learned so far and begin to draw together the various components into cohesive thoughts about the kind of business they might like to run. the tutor should deliver a session covering the process and engage learners in carrying out their own analysis based on preparing for business. can deliver presentations on financial issues. Other useful support can be gleaned from discussions with successful operators of small businesses. They will need to think about the location. these should be extended to cover the elements of a business plan. can present the issues of regulations and laws for small businesses. who will be able to demonstrate and present rational arguments for the benefits of running a business. Development of the final outcome — understanding how to start and run a business — can begin with learner discussion groups. including those relating to both starting up and operating the business. Visiting speakers should be considered as an essential component of delivery and tutors should consider the range of advice and support detailed in the unit content when planning an appropriate selection of speakers. With suitable support from the local small business community. Specialist speakers should be invited to give presentations relating to the different aspects that affect preparation for business. and whether they plan to help run a business or become self-employed. although this must be done with care to ensure that they do not encounter negative reactions. A solicitor. or other legal expert. collecting and collating information and using it to understand the market. considering their own contribution requires some subjective judgements. such as analysing the market and competition. Learners also need to consider their own contribution to a business. small discussion groups will help to focus learners’ understanding of the contexts in which small businesses can be set. whether they are thinking about starting from scratch. Bank managers. It is essential for learners to understand the importance of a business plan. to underpin various critical aspects of small business operations without causing embarrassment to 88 BF017259 – Specification – Edexcel Level 2 BTEC First Certificate and BTEC First Diploma in Business – Issue 1 – January 2006 . taking over a business in its early years or taking over a more established business. Where bank managers or financial advisers have been used to deliver presentations on financial issues. as well as an appreciation of the time needed to gather and use information. Various external speakers can address the implications of marketing and sales. care should be taken to ensure that they have adequate knowledge of these issues. Tutors can usefully use case study materials. It is critical to the success of this unit that learners understand the vocational relevance of what they are learning. If the learning programme has not yet addressed the principle of carrying out an analysis of their strengths and weaknesses. either drawn from real cases or created artificially. adding vocational relevance to its purpose. Learners need to be clear about their own involvement in preparing for business. They will also need to think about the products or services the business will offer and whether these are unique or available from similar businesses. Tutors can guide learners in engaging in discussions with parents and friends. although if a small business operator is chosen. It is far better to know at an early stage that they may not be suited to running a small business than to progress too far and fail. sector and type of business they have in mind.

BF017259 Specification – Edexcel Level 2 BTEC First Certificate and BTEC First Diploma in Business – Issue 1 – January 2006 89 . they need to focus on a specific business that they would enjoy starting and running. how specific products and/or services would be marketed. such as learners could obtain from local banks or building societies. It may include: • • • a presentation describing how to prepare for business an account of how different aspects affect preparation for business an outline business plan that explains why this is important when starting and running a business. such as the legal status. For the second. which learners can either present to the rest of the group or discuss in small groups before feeding back to the larger group. they may decide to employ a manager to take care of the operational issues. learners may turn this issue to their advantage. The plan may also incorporate P6 by describing the sources of advice and support the learner would use as part of their preparation for business. tutors should be conscious of the level of learners. when and how often they are needed. They should by now have already had some exposure to advisers in one form or another. This will enable them to present specific evidence relating to such a business. If the business cannot afford to employ a manager. learners should initially consider their own strengths and weaknesses and what impact these will have on preparing for and contributing to a business. Some research carried out either on a local basis or through the internet will usefully generate details of further sources. learners should develop their knowledge of the wide range of advice and support available to small businesses. All of these issues need to be viable. Learners must also develop their knowledge of the materials and supplies needed by the small business they have in mind. Assessment Learners will be expected to produce evidence that shows their knowledge and understanding of preparing for business. they should cover all the key issues that learners should consider when starting and running a business. such as Business Links and Local Enterprise Partnerships. Finally. rather than an employee. third and fourth pass criteria. while they would be unlikely to gain approval by a bank or building society manager. the statutory regulations that may apply. which will demand a different set of strengths and weaknesses. marketing and sales.UNIT 9: EXPLORING BUSINESS ENTERPRISE actual operators. Completed plans should be in outline only and. The plan may be based on a commercially available plan. They need to take the perspective of a prospective business owner.) Learners will have covered the range of issues relating to regulations and laws. if the opportunity arose. although business operators could argue that even this is controllable by monitoring trends and making appropriate judgements about the economy in general). It is important for learners to understand the controllable and uncontrollable aspects of business operations. fire regulations and so on. For example. and how the business is to be financed. location. Their business plan should have a recognisable structure and should be populated with ideas generated through the learner’s work thus far. this would become a weakness. whereas a small single outlet opened locally would be possible. This in itself will have an impact on the development of learners’ evidence. and financial issues during delivery of the unit. where they can be obtained. However. starting a national or regional chain of retail outlets would be beyond most learners at this stage. However. including financing the business. (Learners should be clear that such an action would need to be built into the business plan. the controllable aspects of financial management (such as arranging adequate finance and monitoring income and expenditure) and the uncontrollable aspects (such as unexpected rises in interest rates. If they have good technical skills that would be useful to a business. Learners can develop their ideas for the fifth pass criterion. To meet the pass criteria. for example.

This should not just reflect the need to secure funding. together with an overall explanation of why business plans are prepared. Their own business proposals should form the basis for analysis in greater depth of the different aspects that will affect preparation for business. In either case. To enable research skills to be effectively developed they should be introduced to as many different forms of information as possible. communication. Learners’ evidence for merit criteria should also explain the components of a business plan using examples drawn from the outline prepared for the pass criteria. Business Links and Chambers of Commerce can provide additional information to complement learning activities. but should form a guide for business start up and development. Learners should ensure that they address each relevant aspect: regulations and laws for small businesses. Additionally. information and communication technology. local banks. Learners should in reality be in a position to evaluate the plan and make adjustments that are consequential to the plan’s actions. learners should use examples they have found to support their explanation of the benefits of running a business. marketing and sales. eg libraries and other research facilities including the internet.UNIT 9: EXPLORING BUSINESS ENTERPRISE To meet merit criteria. To meet the distinction criteria. These could relate to local small businesses they have visited during the delivery of the unit. Tutors should consult with colleagues to explore how this unit can integrate with others. It also provides opportunities to gain key skills in application of number. Their evidence should be more extensive than a simple description of the different aspects that apply. Similarly. together with a rationale for each. It should examine each aspect that applies to their business and explain the effect of each. learners would benefit from being able to relate this to their own business proposals. This is acceptable provided that it is justified. start up business training agencies. other BTEC units. Essential resources This unit requires learners to undertake research. This should make clear the purpose of each component. improving own learning and performance. Learners will also benefit from case study materials. Links to National Occupational Standards. which may be able to focus on specific aspects of developing hospitality small business ideas. This will lead to the final distinction criteria — making and justifying recommendations for starting a business. Strengths and weaknesses should be clearly highlighted. TEC/LEC. and financial issues. Learners can study for either Unit 9: Exploring Business Enterprise or Unit 10: Starting a Small Business but not both. a recommendation to go forward and start a business should also be justified and supported with objective evidence. national newspapers. 90 BF017259 – Specification – Edexcel Level 2 BTEC First Certificate and BTEC First Diploma in Business – Issue 1 – January 2006 . other BTEC qualifications and other relevant units/qualifications This unit can be related to most other units within this specification. Most clearing banks offer small business packs which could serve as useful teaching and learning resources. and problem solving. learners should adopt an advisory stance and present an objective evaluation of all of the issues (drawn from across the content of this unit) that need to be considered if they were to start and run a business. or to case study materials that expose specific benefits. Learners need to recognise that the outcome may be a recommendation not to proceed.

UNIT 9: EXPLORING BUSINESS ENTERPRISE Indicative reading for learners Materials that illustrate the level of learning required and that are particularly relevant. Examples currently include: Barrow C and Barrow P — The Business Plan Workbook. 13th Edition (Penguin Books. 18th Edition (Kogan Page. 1999) ISBN 0852027699 Williams S — Lloyds TSB Small Business Guide. 1998) ISBN 0749426772 Vass J — The Which? Guide to Starting Your Own Business (Which books. 1997) ISBN 0471138401 BF017259 Specification – Edexcel Level 2 BTEC First Certificate and BTEC First Diploma in Business – Issue 1 – January 2006 91 . 1998) ISBN 0749426969 Golzen G — Working for Yourself. Third Edition (Kogan Page. 2000) ISBN 0140286934 Wisdom J — Checklists and Operating Forms for Small Businesses (John Wiley and Sons. Tutors should be aware that textbooks are frequently updated and that they should use the latest editions where available.

UNIT 9: EXPLORING BUSINESS ENTERPRISE

Key skills

Achievement of key skills is not a requirement of this qualification but it is encouraged. Suggestions of opportunities for the generation of level 2 key skill evidence are given here. Staff should check that learners have produced all the evidence required by part B of the key skills specifications when assessing this evidence. Learners may need to develop additional evidence elsewhere to fully meet the requirements of the key skills specifications.

Application of number level 2 When learners are: • gathering and developing data to support proposals for starting and running a business. They should be able to develop the following key skills evidence: N2.1 N2.2 Interpret information from a suitable source. Use your information to carry out calculations to do with: a b c N2.3 Communication level 2 When learners are: • discussing business ideas, personal strengths and weaknesses and other aspects of preparing for enterprise with other learners delivering a presentation on starting and running a business researching potential business opportunities They should be able to develop the following key skills evidence: C2.1a Take part in a group discussion. amounts and sizes scales and proportion handling statistics

d using formulae. Interpret the results of your calculations and present your findings.

• •

C2.1b C2.2

Give a talk of at least four minutes. Read and summarise information from at least two documents about the same subject. Each document must be a minimum of 500 words long. Write two different types of documents each one giving different information. One document must be at least 500 words long.

preparing a summary of proposals to start and run a new business.

C2.3

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UNIT 9: EXPLORING BUSINESS ENTERPRISE

Information and communication technology level 2 When learners are: • • delivering a presentation on starting and running a business gathering and developing data to support proposals for starting and running a business. They should be able to develop the following key skills evidence: ICT2.1 Search for and select information to meet your needs. Use different information sources for each task and multiple search criteria in at least one case. ICT2.2 Enter and develop the information to suit the task and derive new information. ICT2.3 Present combined information such as text with image, text with number, image with number. Improving own learning and performance level 2 When learners are: • assessing own strengths and weaknesses in relation to starting and running a business assessing own contribution to a business and the benefits of running a business. They should be able to develop the following key skills evidence: LP2.1 LP2.2 Help set targets with an appropriate person and plan how these will be met. Take responsibility for some decisions about your learning, using your plan to help meet targets and improve your performance. Review progress with an appropriate person and provide evidence of your achievements.

LP2.3

Problem solving level 2 When learners are: • identifying and resolving problems relating to starting and running a business. They should be able to develop the following key skills evidence: PS2.1 Identify a problem, with help from an appropriate person, and identify different ways of tackling it. Plan and try out at least one way of solving the problem. Check if the problem has been solved and identify ways to improve problem solving skills.

PS2.2 PS2.3

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BF017259 – Specification – Edexcel Level 2 BTEC First Certificate and BTEC First Diploma in Business – Issue 1 – January 2006

an equipment hire operation. such as start up and operational costs. a DJ service. Those setting out on such a venture will need to consider the business idea. Learners will also develop their knowledge and understanding of the legal status and trading terms and conditions of their proposed business. However. The business idea could be almost anything — a coffee shop. what the competition is like and a host of other issues that must be addressed if the business start up is to be successful. Learners can study for either Unit 9: Exploring Business Enterprise or Unit 10: Starting a Small Business but not both. BF017259 Specification – Edexcel Level 2 BTEC First Certificate and BTEC First Diploma in Business – Issue 1 – January 2006 95 . Learners will also consider their ability to run the business. and financial aspects. such as the type of business. a courier service. including the type of business.UNIT 10: STARTING A SMALL BUSINESS Unit 10: NQF Level 3: Starting a Small Business BTEC National Guided learning hours: 60 Unit abstract Starting a small business is the ambition of many people. a motor vehicle repair workshop. Learners will have the opportunity to devise an outline proposal for a business start up. Learning outcomes On completion of this unit a learner should: 1 2 3 4 Be able to present the initial business idea using relevant criteria Understand the skills and development needed to run the business successfully Know the legal and financial aspects that will affect the start up of the business Be able to produce an outline business start up proposal. financial information and forward planning. the attractiveness of the business idea. a hairdresser’s. a painting and decorating business. taxation. available resources. its target market. VAT and HM Revenue and Customs. including the skills they already have that will support the business idea and what new personal development they may have to undertake in order for the venture to be successful. This unit gives learners the opportunity to consider their idea within structured business parameters. legal aspects such as fire regulations. or an organic smallholding producing fruit and vegetables. where funding will come from. what the potential market is. as well as personal needs. the target market and the need to balance personal and business needs. starting a small business can be fraught with difficulties and the idea may not always be successfully realised. This will cover the reasons for preparing a business proposal and will include many of the components expected by financial advisers.

customers’ actions and choices. timescales 3 Know the legal and financial aspects that will affect the start up of the business Legal aspects: legal status eg sole trader. market. planning. trading terms and conditions. regulatory bodies. training. components (type of business. franchise. growth and development. national/local laws. sales forecasts. previous experience. professional help. technical/operational — relating to products/services. external influences eg commercial. financial and profit forecasts. business planning. personal selling. business trends. cost implications. independence. sources of finance eg grants. record keeping 4 Be able to produce an outline business start up proposal Business proposal: models. equipment and supplies. recording and checking performance of business. purpose of plan. effect on business. purchase an existing business. reviewing information and ideas. management. power. attractiveness of idea eg unique selling point. resolving problems. sponsorship. licensing. franchise. demand for new business. strengths and weaknesses Development: identify skills gap/shortages. cooperative. running costs. human/physical/financial resources. self-esteem eg work for self. sources of advice Financial aspects: personal survival budget. cash flow forecasting. planning permission. political. competition. environmental issues 2 Understand the skills and development needed to run the business successfully Skills: own contribution. aims. employing staff. loans. achievement Identifying target market: eg market research. checking profitability. partnership. competitive edge. published research. setting targets and goals.UNIT 10: STARTING A SMALL BUSINESS Unit content 1 Be able to present the initial business idea using relevant criteria Criteria: type eg new. health and safety. pricing policy. national. profit and loss budgets/accounts. administration. record keeping. limited company. trading standards. borrowing. international. strengths and weaknesses. break even. cost of premises. licences. contracts. duties and responsibilities. fire regulations. contingencies) 96 BF017259 – Specification – Edexcel Level 2 BTEC First Certificate and BTEC First Diploma in Business – Issue 1 – January 2006 . regulations and bylaws. local. market trends. accessibility. liabilities. legal liabilities. balancing personal/business needs.

in addition to the pass criteria. Guidance to support the assessment of this unit is available on page 99. the evidence that the learner presents for assessment needs to demonstrate that they can meet all of the learning outcomes for the unit. the learner is able to: M1 D1 M2 assess the implications of legal and financial aspects that will affect the start up of the business. BF017259 Specification – Edexcel Level 2 BTEC First Certificate and BTEC First Diploma in Business – Issue 1 – January 2006 97 . analyse the development needed to run the business successfully explain and justify methods used to identify the target market for the proposed business To achieve a distinction grade the evidence must show that. Grading criteria To achieve a merit grade the evidence must show that. The criteria for a pass grade describe the level of achievement required to pass this unit. the learner is able to: present a comprehensive business proposal that addresses all relevant aspects of business start up.UNIT 10: STARTING A SMALL BUSINESS Grading grid In order to pass this unit. To achieve a pass grade the evidence must show that the learner is able to: P1 present the initial business idea using relevant criteria P2 describe how to identify the target market P3 describe the skills needed to run the business successfully and what areas require M3 further development P4 describe the legal and financial aspects that will affect the start up of the business P5 produce a written outline proposal for starting up a new small business following an acceptable business model. in addition to the pass and merit criteria.

a motor vehicle repair workshop. They should not be deterred if their ideas change during this unit. Learners need to carry out a skills audit to examine the skills they currently have to support the new business operation. insurances planning permission. and representatives from banks. a DJ service. a hairdresser’s. Learners should be encouraged at this early stage to begin to focus on a possible small business idea. When considering legal and financial aspects of small business start ups. HM Revenue and Customs sources of advice eg Business Link centres. To begin developing thoughts and ideas. including how the business idea will relate to its target market. Such investigations could also usefully inform learners’ knowledge of market research. contracts. or an organic smallholding producing fruit and vegetables. Learners should consider exploring a number of legal aspects: • • • • • • • • • national/local laws regulations and bylaws health and safety fire regulations licensing liabilities eg tax and VAT. a discussion group could brainstorm a wide range of small business opportunities. such as a coffee shop. a painting and decorating business. They also need to consider what development they might need. The term ‘small business’ is related to people operating on their own as sole traders or partnerships and limited companies employing 10 or fewer staff. the HM Revenue and Customs. solicitors and the Small Business Service. 98 BF017259 – Specification – Edexcel Level 2 BTEC First Certificate and BTEC First Diploma in Business – Issue 1 – January 2006 . training and advice services and local enterprise agencies. This could usefully be supported by investigating similar businesses and talking to their operators to see what skills are needed and how these match the learner’s current and proposed development. business start up advisors. Visits to local small businesses or presentations by representatives from local trade associations such as the Chamber of Commerce would help learners to develop an awareness of what is needed to run a small business. They need to concentrate on the processes involved rather that the specific outcomes. Learners will need some theoretical input to develop their understanding of the criteria for a business idea. duties and responsibilities regulatory bodies eg Environmental Health Office.UNIT 10: STARTING A SMALL BUSINESS Essential guidance for tutors Delivery This unit enables learners to investigate and identify the skills needed to run a successful small business. Tutors should use case study materials to illustrate a range of examples and help learners to focus their thoughts during the formulation of their ideas. a courier service. learners would benefit from guest speakers such as those operating a small business. although it would be wise for the small business operators to be properly advised about learners’ activities and to be briefed about how their contribution will support the unit’s development. accountants. an equipment hire operation.

their survival needs and how much money and other resources will be required to start up the business. learners need to demonstrate their understanding of the methods used to identify the target market for the proposed business. Learners can select from a wide range of supporting materials available in a variety of formats. Other evidence such as records of discussions and notes of meetings would provide useful support. The presentation should include a description of the target market. It will be important for learners to know what skills they have and would need. what its unique selling points may be. It may include: • • • • an explanation of the initial idea for developing a small business findings from their analysis of the skills and development needed to run the business an explanation of the legal and financial aspects that will affect the start up of their business an outline proposal for starting up a new small business. They may need to consult with specialists (this should be guided by the delivery of the unit) and should address aspects such as the legal status of the business. Initial ideas can be evidenced either through an oral or written presentation. Although the small business idea may not come to fruition. Where this is the case. Market research will almost certainly be included but learners need to explain why. although it is important they understand that this is only an outline and not a fully-fledged business plan. but monetary aspects will necessarily involve some simulation. To meet the merit criteria. This should reflect legal aspects relating to the start up of a new business. eg the internet or small business start up packs available from banks and building societies. These criteria should be clear from the business idea. Learners must also describe the legal and financial aspects that will affect the start up of the business. the form of trading it will undertake. a business mentor. tutors should ensure that any business mentors used are present. To meet the pass criteria. which may be undertaken by a specialist such as a bank manager. intentions should be realistic and such evidence should highlight learners’ awareness of their skills and development opportunities. Assessment Learners will be expected to produce evidence that shows their knowledge and understanding of how small businesses are started. This will require them to consider a range of methods that could actually be used and to provide reasons for their choice. Other methods may prove more challenging but the selection and justification should contribute to a possible business launch. together with specific relevant legal and financial issues. learners must present the initial business idea using relevant criteria. This presentation can be in the form of a formal report or a presentation to a group. The report should be supported by an oral discussion. rather than just a descriptive account of how they could be applied. Evidence for this unit should be primarily formal due to the nature of the unit.UNIT 10: STARTING A SMALL BUSINESS Delivery of the unit must ensure that learners understand the full implications of setting up a small business. for example the type of business. Learners should develop a clear outline for a business start up proposal as a result of completing the unit. or through a short report. where possible. Learners must be realistic about their skills and development analysis. BF017259 Specification – Edexcel Level 2 BTEC First Certificate and BTEC First Diploma in Business – Issue 1 – January 2006 99 . Learners should presume that their ideas can become reality and should consider these areas accordingly. which will be informed by the business idea and the criteria used to define it. Learners should discuss the development of their evidence with their tutor and. any external influences (eg location) and so on. The outline business plan should follow a formal report format and can be developed into a comprehensive document. Learners are not expected to undertake additional development work but need to be aware of what the requirements would be.

which may focus on specific aspects of developing small business ideas. Learners may wish to include a summary of how these will embed within the overall business plan. Other pass and merit criteria will already have covered much of the evidence they will need. For distinction. Learners should be encouraged to seek guidance on the preparation of such a proposal. They should discuss a draft with their tutor and/or business mentor. make improvements and revisions. local banks. This unit may contribute to the following units of the Business Start up NVQ level 3: • • • • • Unit 1: Check how successful your business idea will be Unit 2: Check your ability to run the business Unit 3: Check what law and other regulations will affect your business Unit 4: Work out what money you need to start the business and keep it running Unit 11: Develop the plan for your business. Examples could include sources of training with appropriate timelines that fit with the business launch dates. eg libraries and other research facilities including the internet. This unit also provides opportunities to gain key skills in communication. learners need to draw all their evidence together into a comprehensive business proposal that addresses all relevant aspects of business start up. improving own learning and performance. The pass criteria require learners to describe the legal and financial aspects that will affect the start up of the business. information and communication technology. other BTEC qualifications and other relevant units/qualifications This unit relates to most other units within this specification. Tutors should consult with colleagues to explore how this unit can integrate with others. and problem solving.UNIT 10: STARTING A SMALL BUSINESS If learners were to launch a business. Most clearing banks offer small business packs which could serve as useful teaching and learning resources. For the merit criteria. such as recording systems for tax and VAT liabilities. This may require them to describe systems they will have in place for addressing such issues. The pass criteria have already addressed what areas require further development. much as they would do in the real world. learners need to analyse these areas of development and explain how they would pursue each in order to strengthen their ability to start a business. other BTEC units. Links to National Occupational Standards. Learners can study for either Unit 9: Exploring Business Enterprise or Unit 10: Starting a Small Business but not both. Additionally. Learners will also benefit from case study materials. TEC/LEC. learners need also to consider the impact that these will have. they need to present all of the evidence in a fluent proposal. application of number. start up business training agencies. they would certainly need to undertake further development. Essential resources Many of the outcomes for this unit require learners to undertake research. At merit level. To enable research skills to be effectively developed they should be introduced to as many different forms of information as possible. 100 BF017259 – Specification – Edexcel Level 2 BTEC First Certificate and BTEC First Diploma in Business – Issue 1 – January 2006 . To meet the distinction criteria. national newspapers. before presenting the final version. Business Links and Chambers of Commerce can provide additional information to complement learning activities.

Examples currently include: Barrow C and Barrow P — The Business Plan Workbook.UNIT 10: STARTING A SMALL BUSINESS Indicative reading for learners Materials that illustrate the level of learning required and that are particularly relevant. 1998) ISBN 0749426454 Deakins D — Entrepreneurship and Small Firms (McGraw-Hill Publishing Company. Third Edition (Kogan Page. 1997) ISBN 0471138401 BF017259 Specification – Edexcel Level 2 BTEC First Certificate and BTEC First Diploma in Business – Issue 1 – January 2006 101 . 1999) ISBN 0077094522 Wisdom J — Checklists and Operating Forms for Small Businesses (John Wiley and Sons. Tutors should be aware that textbooks are frequently updated and that they should use the latest editions where available. 1998) ISBN 0749426969 Barrow C — Financial Management for the Small Business (Kogan Page.

C2. amounts and sizes scales and proportion handling statistics using formulae.UNIT 10: STARTING A SMALL BUSINESS Key skills Achievement of key skills is not a requirement of this qualification but it is encouraged.2 Interpret information from a suitable source. Learners may need to develop additional evidence elsewhere to fully meet the requirements of the key skills specifications. Staff should check that learners have produced all the evidence required by part B of the key skills specifications when assessing this evidence.2 Read and summarise information from at least two documents about the same subject.3 Communication level 2 When learners are: • discussing initial business ideas with tutors. • • • C2.3 They should be able to develop the following key skills evidence: C2. Each document must be a minimum of 500 words long.1a Take part in a group discussion. Use your information to carry out calculations to do with: a b c d N2. Write two different types of documents each one giving different information.1b Give a talk of at least four minutes. Suggestions of opportunities for the generation of level 2 key skill evidence are given here. 102 BF017259 – Specification – Edexcel Level 2 BTEC First Certificate and BTEC First Diploma in Business – Issue 1 – January 2006 .1 N2. One document must be at least 500 words long. They should be able to develop the following key skills evidence: N2. other learners and small business operators delivering a presentation summarising their initial business idea researching business ideas studying guides for small business start up preparing an outline business start up proposal. • C2. Interpret the results of your calculations and present your findings. Application of number level 2 When learners are: • gathering and developing data to support proposals for starting and running a business.

3 Present combined information such as text with image.1 LP2. They should be able to develop the following key skills evidence: ICT2. Review progress with an appropriate person and provide evidence of your achievements. Check if the problem has been solved and identify ways to improve problem solving skills.1 Identify a problem. ICT2. • LP2. Use different information sources for each task and multiple search criteria in at least one case.UNIT 10: STARTING A SMALL BUSINESS Information and communication technology level 2 When learners are: • • delivering a presentation on an initial business idea gathering and developing data to support proposals for starting and running a business.2 Help set targets with an appropriate person and plan how these will be met.2 PS2. text with number. They should be able to develop the following key skills evidence: PS2. with help from an appropriate person. Take responsibility for some decisions about your learning.3 Problem solving level 2 When learners are: • identifying and resolving problems relating to starting and running a business. image with number. ICT2. using your plan to help meet targets and improve your performance.2 Enter and develop the information to suit the task and derive new information. PS2.1 Search for and select information to meet your needs. Improving own learning and performance level 2 When learners are: • understanding the skills and development needed to run the business successfully understanding the legal and financial aspects that will affect the start up of the business.3 BF017259 Specification – Edexcel Level 2 BTEC First Certificate and BTEC First Diploma in Business – Issue 1 – January 2006 103 . They should be able to develop the following key skills evidence: LP2. Plan and try out at least one way of solving the problem. and identify different ways of tackling it.

UNIT 10: STARTING A SMALL BUSINESS 104 BF017259 – Specification – Edexcel Level 2 BTEC First Certificate and BTEC First Diploma in Business – Issue 1 – January 2006 .

The qualitative nature of the merit and distinction grading criteria are based upon indicative characteristics required of the assessment evidence to fulfil the higher grades. Personal development for occupational roles. Tasks and activities should enable learners to produce evidence that relates directly to the specified criteria. BF017259 Specification – Edexcel Level 2 BTEC First Certificate and BTEC First Diploma in Business – Issue 1 – January 2006 105 . • • • • Application of knowledge and understanding. There are four grading domains which underpin the grading criteria. merit and distinction is applied to all units. centres should note that for learners to achieve a merit/distinction grade they will be required to provide evidence that is qualitative in its nature. assignments and work-based assessments. and making maximum use of practical activities and work experience. reliable and fit for purpose. building on the application of the grading criteria. It is advisable that criteria are clearly indicated on each assignment to provide a focus for learners (for transparency and to help ensure that feedback is specific to the criteria) and to assist with internal verification and standardisation processes. A grading scale of pass. Development of practical and technical skills. In the Edexcel BTEC Firsts all units are internally assessed. Assignments constructed by centres should be valid. providing a realistic scenario for learners to adopt. A summative unit grade can be awarded at pass. based on the achievement of specified outcomes. performance observation and time-constrained assessments. Please refer to Annexe B. along with projects.Assessment and grading The purpose of assessment is to ensure that effective learning of the content of each unit has taken place. Assignments should ensure coverage of all the criteria in the unit as set out in the Grading grid for each unit. When reading the Grading grids and designing assessment instruments. merit or distinction: • • • to achieve a ‘pass’ a learner must have satisfied all the pass criteria to achieve a ‘merit’ a learner must additionally have satisfied all the merit criteria to achieve a ‘distinction’ a learner must additionally have satisfied all the distinction criteria. All assessment for BTEC Firsts is criterion referenced. Centres are encouraged to look across each assessment criterion in the Grading grid to identify common topics within units and to assess learners’ work according to the level that they have achieved as determined by the grading criteria. The grading criteria are developed in relation to grading domains which provide for the assessment of the learning outcomes of the unit. including case studies. Each unit has specified criteria to be used for grading. Application of generic and key skills. Centres are encouraged to place emphasis on the practical application of the grading criteria. Learners who complete the unit but who do not meet all the pass criteria are graded ‘unclassified’. Centres should use a variety of assessment methods. The creation of assignments that are fit for purpose is vital to achievement by learners and their importance cannot be over emphasised.

Internal verification Centres are required to have processes in place reviewing each assessor’s decisions to ensure that they are correctly interpreting and applying the standards set out in the specifications.Quality assurance Edexcel’s qualification specifications set out clearly the standard to be achieved by each learner in order to gain the award of the qualification. Ultimately. and be granted. For BTEC Firsts this process will follow the National Standards Sampling (NSS) protocol. This updated information may also be found on the Edexcel website/Services for centres/FE Colleges and Schools. Further guidance on delivery and assessment is given in the Essential guidance for tutors section of each unit. Centres wishing to offer a vocational area for the first time will need to apply for approval to offer the programme. Centres should refer to the BTEC NQF Level 2/3 (including Short Courses at Levels 1–3) Handbook (updated annually). 106 BF017259 – Specification – Edexcel Level 2 BTEC First Certificate and BTEC First Diploma in Business – Issue 1 – January 2006 . Risk assessment Edexcel has an approval process which creates a quality profile of each qualification programme in each centre and for the centre as a whole. External verification Edexcel will sample assessors’ decisions using sector-specialist external verifiers. Edexcel operates a quality assurance process which is designed to ensure that these standards are maintained by all internal verifiers and external verifiers. The approvals contract is a formal commitment by the head or principal of a centre to meet all the requirements of the specification and linked codes or regulations. centre approval before they can apply for approval to offer the programme. It achieves this through the following activities. Additionally. This section is designed to provide additional guidance and amplification related to the unit to support tutors. This profile contributes to the determination of the nature of external verification activity for each programme and will also be used to initiate other quality control measures by Edexcel. at least 50 per cent of submitted work must have been internally verified. Centres should refer to the BTEC NQF Level 2/3 (including Short Courses at Levels 1–3)(updated annually). The learner work must have been internally assessed. This is covered in the statement of outcomes and grading criteria in each unit. When a centre applies for approval to offer a BTEC qualification they will be required to enter into an approvals agreement. This updated information may also be found on the Edexcel website/Services for centres/FE Colleges and Schools. Sanctions and tariffs may be applied if centres do not comply with the agreement. The system used to do this is a matter for individual centres and Edexcel fully supports the use of the centre’s own quality assurance systems where this ensures robust internal standardisation. Centres that have not previously offered BTEC qualifications will first need to apply for. this could result in the suspension of certification or withdrawal of approval. deliverers and assessors and to provide for a coherence of understanding and a consistency of delivery and assessment. Approval Centres will be allowed ‘accelerated approval’ for a new programme where the centre already has approval for a programme that is being replaced by the new programme.

Learners will achieve a pass. For the calculation of a qualification grade for a BTEC First Certificate and a BTEC First Diploma a learner must: • • • complete all designated units achieve a minimum points score of 18 points for a First Certificate and 36 points for a First Diploma achieve a pass grade for all designated units for a First Certificate and achieve a pass grade for units with a combined total of 300 guided learning hours for a First Diploma.Calculation of the qualification grade Awarding a qualification grade The qualification grade will be calculated through the aggregation of points achieved through the successful achievement of individual units. merit or distinction qualification grade based on the attainment of a stated minimum number of points for each unit grade. Points available Size of unit (GLH) 10 30 60 90 120 Qualification grade Qualification BTEC First Certificate (54 maximum) BTEC First Diploma (108 maximum) Pass grade 18–29 36–59 Merit grade 30–41 60–83 Distinction grade 42–53 84–95 Distinction* 54 96–108 Pass grade 1 3 6 9 12 Merit grade 2 6 12 18 24 Distinction grade 3 9 18 27 36 BF017259 Specification – Edexcel Level 2 BTEC First Certificate and BTEC First Diploma in Business – Issue 1 – January 2006 107 . The number of points available will be dependent on the unit grade achieved and the size of the unit as determined by the stipulated guided learning hours.

and distinction*.org. and contributes 80 per cent towards the threshold. merit. The qualification attracts the same points as two GCSEs at A*-C. For the detailed point scores for a pass. distinction. please see the QCA Openqual website at: http://www. merit. please see the QCA Openqual website at: http://www. The qualification attracts the same points as four GCSEs at A*–C.openquals. For the detailed point scores for a pass. BTEC grade boundaries 18–29 30–41 42–48 49–54 BTEC First Certificate grade Pass Merit Distinction Distinction* P M D D* SCAAT points and GCSE grade equivalence CB BA A A* See footnote 1 BTEC First Diploma and SCAAT points BTEC First Diplomas attract points for the DfES School and College Achievement and Attainment Tables (formerly Performance Tables). and contributes 40 per cent towards the threshold.School and College Achievement and Attainment Tables (SCAAT) equivalence BTEC First Certificate and SCAAT points BTEC First Certificates attract points for the DfES School and College Achievement and Attainment Tables (formerly Performance Tables). BTEC grade boundaries 36–59 60–83 84–95 96–108 BTEC First Diploma grade Pass Merit Distinction Distinction* P M D D* SCAAT points and GCSE grade equivalence C C BB B B AA A A A* A* See footnote 1 1 At the time of publication the number of points attained for a BTEC Distinction* grade is still to be confirmed on the DfES School and College Achievement and Attainment Tables 108 BF017259 – Specification – Edexcel Level 2 BTEC First Certificate and BTEC First Diploma in Business – Issue 1 – January 2006 .openquals. and distinction*.uk.org.uk. distinction.

This is particularly important for learners studying for the qualification through open or distance learning. 90 or 120 guided learning hours. This may be through traditional classroom teaching. Required combinations of specialist units are set out clearly in relation to each qualification in the defined qualification structures provided in this document. It excludes learner-initiated private study. The definition of guided learning hours is ‘a notional measure of the substance of a qualification’. BF017259 Specification – Edexcel Level 2 BTEC First Certificate and BTEC First Diploma in Business – Issue 1 – January 2006 109 . Whatever mode of delivery is used. instruction and assessment. Those planning the programme should aim to enhance the vocational nature of the BTEC First qualification by: • • • • • liaising with employers to ensure a course 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. in the assessment linking with company-based/workplace training programmes making full use of the variety of experience of work and life that learners bring to the programme. Specialist units are designed to provide a specific focus to the qualification. distance learning or a combination of these.Programme design and delivery These qualifications consist of core units (which are mandatory) and specialist units. open learning. 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. Centres will need to meet any specialist resource requirements when they seek approval from Edexcel. 60. 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. Staff delivering programmes and conducting the assessments should be fully familiar with current practice and standards in the sector concerned. It includes an estimate of time that might be allocated to direct teaching. In BTEC First qualifications each unit is 30. where appropriate. together with other structured learning time such as directed assignments or supported individual study. Mode of delivery Edexcel does not define the mode of study for BTEC First qualifications. Where specific resources are required these have been indicated in individual units under the Essential resources section. Centres are free to offer the qualifications using any mode of delivery that meets the needs of their learners. Assessment evidence based on the learners’ work environment should be encouraged. Centres are advised to consider this definition when planning the programme of study associated with this specification. Resources BTEC First qualifications are designed to prepare learners for employment in specific sectors. centres must ensure that learners have appropriate access to the resources identified in the specifications and to the subject specialists delivering the units.

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. 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. 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.org. Maximum use should be made of the learner’s experience. Specifications contain a balance of practical skill development and knowledge requirements. The cases where this will be allowable will be very limited.edexcel. Assessors should assess this evidence against the National Occupational Standards mapped in the specification.Delivery approach It is important that centres develop an approach to teaching and learning that supports the specialist vocational nature of BTEC First qualifications. Full guidance on Edexcel’s policy on APL is provided on our website: www. 110 BF017259 – Specification – Edexcel Level 2 BTEC First Certificate and BTEC First Diploma in Business – Issue 1 – January 2006 . Units that have externally set assignments cannot be imported into other qualifications. particularly the NTO or the Sector Skills Council for the business sector. some of which can be theoretical in nature. and the local skills and training needs identified by organisations such as the Regional Development Agency and the Local Learning and Skills Council. Accreditation of Prior Learning (APL) Edexcel encourages centres to recognise learners’ previous achievements and experience through APL. This flexibility is not available within the BTEC First Certificate. Edexcel will need to submit these units for accreditation by QCA. In this situation centres may seek approval from Edexcel to make use of units from other standard NQF BTEC First Diploma specifications.uk Meeting local needs Centres should note the qualifications set out in these specifications have been developed in consultation with centres and employers. Centres will need strong evidence of the local need and the reasons why the existing standard units are inappropriate. The units are designed to meet the skill needs of the sector and the specialist units allow coverage of the full range of employment. Learners may have evidence that has been generated during previous study or in their previous or current employment or whilst undertaking voluntary work that relates to one or more of the units in the qualification. As with all evidence. More detailed guidance on delivery and assessment is given in each unit. The use of these units cannot be at the expense of the core units in any qualification. In this case centres can seek permission from Edexcel to develop a unit with us to meet this need. 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. There may be exceptional circumstances where even this flexibility does not meet a particular local need. the units contained in these specifications may not enable centres to meet a local need. Limitations on variations from standard specifications The flexibility to import standard units from other BTEC First Diploma specifications and/or develop unique units is limited to one unit in a BTEC First Diploma qualification. 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. In certain circumstances.

edexcel. which is on the Edexcel website (www. The qualifications are listed on the DfES funding lists Section 96 and Section 97. Centres are required to recruit learners to BTEC qualifications with integrity. Centres will need to review the profile of qualifications and/or experience held by applicants. Restrictions on learner entry The Edexcel Level 2 BTEC First Certificate in Business and the Edexcel Level 2 BTEC First Diploma in Business are accredited on the National Qualifications Framework (NQF). BF017259 Specification – Edexcel Level 2 BTEC First Certificate and BTEC First Diploma in Business – Issue 1 – January 2006 111 . the majority of BTEC First qualifications are available to learners aged 14–16 to enhance their curriculum and to help them gain experience of vocational skills which will prepare them for work. For learners who have recently been in education. This policy replaces the previous Edexcel policy (Assessment of Vocationally Related Qualification: Regulations and Guidance Relating to Learners with Special Requirements. 2002) concerning learners with particular requirements. 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. the profile is likely to include one of the following: • • • a standard of literacy and numeracy supported by a general education equivalent to four GCSEs at grades D–G related work experience other related Level 1 or 2 qualifications. More mature learners may present a more varied profile of achievement that is likely to include experience of paid and/or unpaid employment. Access arrangements and special considerations Edexcel’s policy on access arrangements and special considerations for BTEC and Edexcel NVQ qualifications aims to enhance access to the qualifications for learners with disabilities and other difficulties (as defined by the 1995 Disability Discrimination Act and the amendments to the Act) without compromising the assessment of skills. Additionally. considering whether this profile shows an ability to progress to a Level 2 qualification.Access and recruitment Edexcel’s 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.uk). Further details are given in the policy ‘Access Arrangements and Special Considerations for BTEC and Edexcel NVQ Qualifications’. understanding or competence. This will include ensuring that applicants have appropriate information and advice about the qualifications and that the qualification will meet their needs. Centres should also show regard for Edexcel’s policy on learners with particular requirements.org. knowledge. Centres should take appropriate steps to assess each applicant’s potential and make a professional judgement about their ability to successfully complete the programme of study and achieve the qualification.

The Edexcel BTEC Qualification Framework for the business sector Progression opportunities within the framework are available vertically. NQF Level BTEC Full VRQ Courses BTEC Short Courses General Qualifications NVQ/Occupational 8 BTEC Advanced Professional Award/Certificate/Diploma in Management Studies 7 6 BTEC Foundation Degree in Business BTEC Higher Nationals in Business BTEC Higher Nationals in e-Business BTEC Professional Award/ Certificate/Diploma in Management Studies Level 4 NVQ in Business and Administration BTEC Nationals in Business BTEC Nationals in e-Business BTEC Award/Certificate in Management BTEC Level 3 Award in Customer Service First Certificate and Diploma in Business BTEC Level 1 Award in Customer Service Level 1 NVQ in Business and Administration Level 3 NVQ in Business and Administration 5 4 GCE in Applied Business 3 GCE in Business Studies 2 GCSE Business and Communication Systems GCSE Business Studies BTEC Introductory Certificate and Diploma in Business. Retail and Administration Certificate in Life Skills Certificate in Skills for Working Life GCSE Business Studies and Economics 1 GCSE in Applied Business Entry 112 BF017259 – Specification – Edexcel Level 2 BTEC First Certificate and BTEC First Diploma in Business – Issue 1 – January 2006 . diagonally and horizontally.

Further information
For further information please call Customer Services on 0870 240 9800 (calls may be recorded for training purposes) or visit our website at www.edexcel.org.uk.

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 information and publications include: • • • • • Accreditation of Prior Learning available on our website: www.edexcel.org.uk Guidance for Centres Offering Edexcel/BTEC NQF Accredited Programmes — (Edexcel, distributed to centres annually) key skills publications — specifications, tutor support materials and question papers The Statutory Regulation of External Qualifications in England, Wales and Northern Ireland — (QCA, 2004). 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. NB: Most of our publications are priced. There is also a charge for postage and packing. Please check the cost when you order.

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How to obtain National Occupational Standards
Small Firms Enterprise Development Initiative (SFEDI) PO Box 5753 Milton Keynes MK10 1AE Telephone: 01525 211145 Web: www.sfedi.co.uk Institute of Customer Service (ICS) 2 Castle Court St Peter’s Street Colchester Essex CO1 1EW Telephone: 01206 571716 Web: www.instituteofcustomerservice.com The Council for Administration (CfA) 6 Graphite Square Vauxhall Walk London SE11 5EE Telephone: 020 7091 9620 Web: www.cfa.uk.com

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 via Customer Services on telephone 0870 240 9800 (calls may be recorded for training purposes) 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.

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Annexe A
QCA codes
The QCA National Qualifications Framework (NQF) code is known as a Qualification Accreditation Number (QAN). This is the code that features in the DfES Funding Schedules — Section 96 and Section 97 and is to be used for all qualification funding purposes. Each unit within a qualification will also have a QCA NQF unit code. The QCA qualification and unit codes will appear on the learner’s final certification documentation. The QANs for qualifications in this publication are: 100/5692/0 100/5691/9 Edexcel Level 2 BTEC First Certificate in Business Edexcel Level 2 BTEC First Diploma in Business

These qualification titles will appear on the learners’ certificates. 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.

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116 BF017259 – Specification – Edexcel Level 2 BTEC First Certificate and BTEC First Diploma in Business – Issue 1 – January 2006 .

Apply skill(s) to achieve higher order outcome.Annexe B Indicative characteristics — distinction • • Evaluate concepts/ideas/actions. • Demonstrate within time and/or resource constraints. Applies knowledge and understanding to complex activities/contexts. Analyse/research and make recommendations. make judgements based on analysis).merit Development of practical and technical skills • Use advanced techniques/processes/skills successfully. • Apply to non-routine activities. • Show relationships between p criteria. Reflects on skill acquisition and application. • Produce varied solutions (including non-routine). Grading domain 2 Indicative characteristics . • Modify techniques/processes to situations. Innovates or generates of application of techniques/processes for new situations. • Apply and/or select relevant concepts. Makes judgements about risks and limitations of techniques/processes. • • • Synthesise knowledge and understanding across p/m criteria. • Make comparisons. • Act under limited supervision/ demonstrate independence (note: pass cannot require support). Judges implications of application of knowledge/ understanding. Select and use successfully from a range of advanced techniques/processes/skills. • Apply knowledge to non-routine contexts (ie assessor selection). Grading domains Grading domain 1 Indicative characteristics — merit Application of knowledge and understanding • Show depth of knowledge and development of understanding in given situations(eg explain why. Indicative characteristics — distinction • • • • • • • Demonstrate creativity/originality/own ideas. • Apply knowledge to different contexts. BF017259 Specification – Edexcel Level 2 BTEC First Certificate and BTEC First Diploma in Business – Issue 1 – January 2006 117 . Justifies application of skills/methods.

Generate new or alternative solutions to specified problems. Analyses and manipulates information to draw conclusions. • Finds and uses relevant information sources. Presents self and communicates information to meet the needs of a typical audience.Grading domain 3 • Manages self to achieve outcomes successfully. • Identifies responsibilities of employers to the community and the environment. • Select and justify solutions for specified problems. Takes decisions in contexts with justifications. Takes decisions related to work contexts. • Acts within a given work-related context showing understanding of responsibilities. • • • Applies initiative appropriately. • Applies qualities related to the vocational sector. Understands interdependence. Assesses how different work-related contexts or constraints would change performance. Produces outputs subject to time/resource constraints. • Makes adjustments to meet the needs/expectations of others (negotiation skills). Grading domain 4 Indicative characteristics — merit Indicative characteristics — distinction Application of generic and key skills • Communicates using appropriate technical/ professional language. • Internalises skills/attributes (creating confidence). 118 BF017259 – Specification – Edexcel Level 2 BTEC First Certificate and BTEC First Diploma in Business – Issue 1 – January 2006 . Reflects on own contribution to working within a team. • • • • • • • • • Indicative characteristics — merit Indicative characteristics — distinction Personal development for occupational roles • Takes responsibility in planning and undertaking activities. Applies divergent and lateral thinking in work-related contexts. • Explains how to contribute within a team. • Makes judgements in contexts with explanations. • Reviews own development needs. Plans for own learning and development through the activities.

Tutors will need to become familiar with key skills specifications and their evidence requirements and they are advised not to rely on the signposting in the units when presenting key skills evidence for moderation. not just within routine tasks and functions but to help them be more effective and efficient in all they do use ICT in a range of applications to support all aspects of their role solve problems in a variety of circumstances.Annexe C Key skills All BTEC First qualifications include mapping and/or signposting of key skills. These are indicative links only. BF017259 Specification – Edexcel Level 2 BTEC First Certificate and BTEC First Diploma in Business – Issue 1 – January 2006 119 . Centres should refer to the QCA website (www.uk) for the latest key skills standards. in a variety of situations. using a wide range of techniques work well with others — individuals or teams — so that work can be properly planned and targets met manage their own development. They enable and empower individuals who inevitably face a series of choices in work. Learners need the chance to show current and future employers that they can: • • • • • • communicate effectively.qca. These are transferable skills. so that they are always ready to take on the challenges of change and diversification use number. lifelong learning and widening participation all require a more flexible population in the workplace and key skills play a role in setting the framework. In each unit the opportunities for the generation of evidence for key skills are signposted. education and training throughout their lives. Current and future initiatives such as learndirect. Key skills provide a foundation for continual learning. which play an essential role in developing personal effectiveness for adult and working life and in the application of specific vocational skills.org.

3 120 BF017259 – Specification – Edexcel Level 2 BTEC First Certificate and BTEC First Diploma in Business – Issue 1 – January 2006 Unit 9 .1 N2.1 LP2.2 LP2.1 WO2.1 PS2.Key skills mapping – summary of opportunities suggested in each unit Unit 10 Unit 1 Unit 2 Unit 3 Unit 4 Unit 5 Unit 6 Unit 7 Unit 8 Key skills N2.2 PS2.1 ICT2.1a C2.3 PS2.1b C2.2 C2.3 WO2.2 ICT2.3 LP2.3 ICT2.3 C2.2 N2.2 WO2.

Level 2 NVQ in Business and Administration and the Level 3 NVQ in Business Start Up. KEY indicates that the Edexcel Level 2 covers all of the underpinning knowledge of the NVQ unit # indicates partial coverage of the NVQ unit a blank space indicates no coverage of the underpinning knowledge 1 2 3 4 5 6 7 # # # 8 9 10 Units Level 2 NVQ in Customer Service 1: Give customers a positive impression of yourself and your organisation 2: Deliver reliable customer service 3: Develop customer relationships 5: Support customer service improvements # # 6: Develop personal performance through delivering customer service 7: Promote additional products or services to customers BF017259 Specification – Edexcel Level 2 BTEC First Certificate and BTEC First Diploma in Business – Issue 1 – January 2006 121 .Annexe D National Occupational Standards/mapping with NVQs The following grid maps the knowledge covered in the Edexcel Level 2 BTEC First Certificate and BTEC First Diploma in Business against the underpinning knowledge of the Level 2 NVQ in Customer Service.

Units # 1 2 3 4 5 6 7 8 9 10 Level 2 NVQ in Business and Administration 201: Carry out your responsibilities at work 204: Manage diary systems 205: Organise business travel and accommodation # 206: Deal with visitors 219: Use a telephone system # # # 220: Operate office equipment 221: Prepare text from notes 224: Produce documents 225: Work effectively with other people Level 3 NVQ in Business Start Up 1: Check how successful your business idea will be 2: Check your ability to run the business 3: Check what law and other regulations will affect your business 4: Work out what money you need to start the business and keep it running 11: Develop the plan for your business 122 BF017259 – Specification – Edexcel Level 2 BTEC First Certificate and BTEC First Diploma in Business – Issue 1 – January 2006 .

such as the responsibility employers have for the employment and therefore the livelihood of others (Unit 1: Exploring Business Purposes and Unit 5: People in Organisations). • • Environmental issues Learners are led to appreciate the importance of environmental issues through the experience of the business sector. social and cultural issues The specification contributes to an understanding of: • spiritual issues – learners can explore personal development. The European dimensions of business can be addressed in Unit 2: Developing Customer Relations by considering the implications of business dealings with European customers. the dependency of businesses on power supplies and their impact on the environment. as well as sector-specific issues. European developments. BF017259 Specification – Edexcel Level 2 BTEC First Certificate and BTEC First Diploma in Business – Issue 1 – January 2006 123 . Other opportunities include moral and ethical responsibilities to customers (Unit 2: Developing Customer Relations). The Edexcel Level 2 BTEC Firsts in Business make a positive contribution to wider curricular areas as appropriate. health and safety considerations and equal opportunities issues. by discussing for example the disposal of waste and/or products that have reached the end of their useful life. moral. such as engineering waste. development of interpersonal skills (Unit 7) or the impact of manufacturing or providing products and services within local or regional communities (Unit 9: Exploring Business Enterprise and Unit 10: Starting a Small Business). the disposal of cooking oils in the catering sector. social and cultural issues – examples of discussion and debate related to social and cultural issues can be related to the social implications of working with others (Unit 5: People in Organisations). Unit 4: Business Communication through issues such as language barriers and differing time zones. Spiritual. ethical. ethical. European developments Much of the content of the Edexcel Level 2 BTEC Firsts in Business applies throughout Europe even though the delivery is in a UK context. for example through the personal satisfaction gained from providing good customer service (Unit 2: Developing Customer Relations). or the recycling of paper and other materials in the news and publishing industries.Annexe E Wider curriculum mapping Study of the Edexcel Level 2 BTEC Firsts in Business provides opportunities for the learner to develop an understanding of spiritual. or Unit 9: Exploring Business Enterprise and Unit 10: Starting a Small Business. moral. social and cultural issues as well as an awareness of environmental issues. their role as a valued member of a team or an organisation (Unit 5: People in Organisations) or their potential future value to society as a business owner (Unit 9: Exploring Business Enterprise and Unit 10: Starting a Small Business) moral and ethical issues – there are plentiful opportunities to develop debate on moral and ethical issues. by considering issues relating to European markets for small businesses.

1–131/0 124 BF017259 – Specification – Edexcel Level 2 BTEC First Certificate and BTEC First Diploma in Business – Issue 1 – January 2006 Unit 10 Unit 1 Unit 2 Unit 3 Unit 4 Unit 5 Unit 6 Unit 7 Unit 8 Unit 9 . Equal opportunities issues Equal opportunities issues are implicit throughout the Edexcel Level 2 BTEC Firsts in Business. Learners will develop awareness of the safety of others as well as themselves in all practical activities. Learners will also explore health and safety issues across the business sector.DOC. Wider curriculum mapping Spiritual Moral and ethical Social and cultural Environmental issues European developments Health and safety considerations Equal opportunities issues 1029sb060106S:\LT\PD\FIRSTS\BF017259 BUSINESS FCD L2. particularly in Unit 5: People in Organisations.Health and safety considerations The Edexcel Level 2 BTEC Firsts in Business are practically based and so health and safety issues are encountered throughout the units.

edexcel.org. Mansfield. London WC1V 7BH .com Publications Code BF017259 January 2006 For more information on Edexcel and BTEC qualifications please contact Customer Services on 0870 240 9800 or http://enquiries. Registered in England and Wales No. Notts.edexcel. 4496750 Registered Office: One90 High Holborn. Adamsway. NG18 4FN Telephone 01623 467467 Fax 01623 450481 Email: publications@linneydirect.Further copies of this publication are available from Edexcel Publications.uk Edexcel Limited.org.uk or visit our website: www.

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