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.

org. and be granted.gov. The QANs for these qualifications are listed in Annexe A.uk). The NQF Qualification Accreditation Numbers (QANs) should be used by centres when they wish to seek public funding for their learners. .• 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.dfes. When a centre applies for approval to offer a BTEC qualification they will be required to enter into an ‘approvals agreement’. Details of the qualification units can be seen on the QCA Open Qualifications database (www. The qualification titles feature in the funding lists published annually by the DfES and the regularly updated website www. 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. centre approval before they can apply for approval to offer the programme. and for certification of learners until 31 August 2011. This specification is accredited by the Qualifications and Curriculum Authority until 31 August 2009.qca.uk/. 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. • • 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 .

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

understanding and skills of learners to meet the needs of the business sector. Specialist areas also include: • • • • • finance. case studies. workplace assessment. taking into account industry standards for behaviour and performance. 2 BF017259 – Specification – Edexcel Level 2 BTEC First Certificate and BTEC First Diploma in Business – Issue 1 – January 2006 . which is available at both Level 2 and Level 3. which supports development of basic financial principles business administration. 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. 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. 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. meeting support and filing systems personal selling. 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.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 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. 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. which supports development of practical administration skills including office systems and equipment. focusing on providing opportunities: • • for learners to acquire technical and employability skills. including interpersonal skills and customer service. role play and oral presentation. Evidence for assessment may be generated through a range of diverse activities including assignment and project work.

BF017259 Specification – Edexcel Level 2 BTEC First Certificate and BTEC First Diploma in Business – Issue 1 – January 2006 3 .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.

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

It excludes learner-initiated private study. Centres are advised to consider this definition when planning the programme of study associated with this specification. it should be noted that this provides an indicative range of material to support the specific topic item. understand or be able to do’ as a result of completing the unit. knowledge and understanding required for achievement of the pass grading criteria. tutors. Subject material maybe further detailed by lists enclosed within brackets or an elongated dash which provide the defined elements of the specific topic item. 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. Learning outcomes Learning outcomes state exactly what a learner should ‘know. BF017259 Specification – Edexcel Level 2 BTEC First Certificate and BTEC First Diploma in Business – Issue 1 – January 2006 5 . In BTEC First qualifications each unit consists of 30. 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. This is informed by the underpinning knowledge and understanding requirements of the related National Occupational Standards (NOS). Each unit is set out in the following way. Unit title The unit title is accredited by QCA and this form of words will appear on the learner’s Notification of Performance (NOP). 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. skills and understanding developed while studying the unit. The content provides the range of subject material for the programme of learning and specifies the skills. 60. It includes an estimate of time that might be allocated to direct teaching. together with other structured learning time such as directed assignments or supported individual study. Unit content The unit content identifies the depth and breadth of knowledge.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. Where the subject material list includes an ‘eg’. 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. It provides the reader with a snapshot of the aims of the unit and the key knowledge. assessors and those responsible for monitoring national standards. instruction and assessment. Guided learning hours Guided learning hours is ‘a notional measure of the substance of a unit’. The unit abstract also emphasises links to the sector by describing what the unit offers the sector.

It is important to note that the merit and distinction grading criteria refer to a qualitative improvement in the learner’s evidence. 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 units.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. This section should be read in conjunction with the grading criteria. Indicative reading for learners — provides a short list of learner resource material that benchmark the level of study. 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. 6 BF017259 – Specification – Edexcel Level 2 BTEC First Certificate and BTEC First Diploma in Business – Issue 1 – January 2006 .org. Links to National Occupational Standards.uk) for the latest version of the key skills standards. • • • • 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. The centre will be asked to ensure that any requirements are in place when it seeks approval from Edexcel to offer the qualification. delivery and assessment. Links to the Occupational Standards will be highlighted here. These could be used to ensure that learners can relate different aspects within the qualification and offer opportunities for integration of learning. Essential resources — identifies any specialist resources needed to allow learners to generate the evidence required for each unit. merit or distinction grade.qca. 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. Centres should refer to the QCA website (www. This advice is based on the more usual delivery modes but is not intended to rule out alternative approaches. other BTEC qualifications and other relevant units and qualifications — sets out links with other units within the qualification. 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.

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 .

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. and businesses that support other businesses. Learners will develop their understanding of these areas and how they function. They will also gain an understanding of how this kind of infrastructure operates in smaller businesses without such clearly defined departments. businesses that deliver or sell products and/or services. Learners will be surrounded by different businesses every day of their lives: businesses that create things. This unit introduces them to a wide range of aims and objectives pursued by business organisations in the public. The unit enables learners to discuss their understanding and knowledge of businesses in their local environment. such as administration. customer service or human resources. while also developing a greater understanding of business activity for those seeking employment. 9 BF017259 Specification – Edexcel Level 2 BTEC First Certificate and BTEC First Diploma in Business – Issue 1 – January 2006 . 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. Learners will also be introduced to different classifications in business. European and global levels. with all its complexities and differing interests. Learners will be able to explore business purposes and relate this to different types of ownership. 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. The unit provides a business context within which learners in employment or on workplacement may use their experience. This unit will help learners to begin to understand the business world. This unit begins to develop learners’ knowledge and understanding of the importance of businesses and how they operate. To add to the complexity of the situation. that support the aims and objectives of the business as well as linking with and supporting other functional areas. To be ‘in business’ can mean an enormous variety of things and different people will have different perspectives of what business is all about. 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. the business world is never static. retailing or as a service provider — larger businesses will have a number of functional areas. Industries can grow and decline. It introduces learners to the range and variety of business activity to be found in their local community and at national. In addition to the primary purpose of a business — eg manufacturing. voluntary (not-for-profit) and commercial sectors.

voluntary organisations. human resources. fishing. relationship with other businesses Sector: eg private. purpose (to provide a business focus) eg survival. growth. small-medium. local and national public services. national. research and development (R and D). expansion of market share. regional. franchises. break even. sales. at cost. measurable targets to help achieve the overall aims of a business).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. 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). limited companies (private — Ltd. customer service. public — plc). charity. service provision. partnership. distribution. profit maximisation. to develop new markets. purposes of functional areas eg to support business aims and objectives. production. objectives (specific. public. construction Tertiary: eg private service industries. marketing. engineering. ICT. finance. not-for-profit and voluntary 4 Know the main functional areas within business organisations Functional areas: eg administration. for sale below cost Ownership: eg sole trader. forestry. voluntary/not-forprofit services Relative growth/decline by sector: decline of primary and secondary industries. free. European and global organisations 2 Understand the classification of business activities Primary: eg farming. extraction/mining Secondary: eg manufacturing. co-operatives Size: small. large Scale: local. 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 . medium.

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.UNIT 1: EXPLORING BUSINESS PURPOSES Grading grid In order to pass this unit. the learner is able to: evaluate how the functional areas contribute to the aims and objectives of the two selected businesses. The criteria for a pass grade describe the level of achievement required to pass this unit. size and scale P2 M3 describe the primary. ownership. secondary and tertiary classifications of business activities explain the interaction of functional areas and how they relate to each other in two selected businesses. Grading criteria To achieve a merit grade the evidence must show that. in addition to the pass criteria. aims and objectives of two selected businesses explain areas of growth or decline in the primary. 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. 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 . in addition to the pass and merit criteria. the evidence that the learner presents for assessment needs to demonstrate that they can meet all of the learning outcomes for the unit. To achieve a distinction grade the evidence must show that. the learner is able to: M1 D1 M2 compare and contrast the ownership.

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

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

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

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

BF017259 Specification – Edexcel Level 2 BTEC First Certificate and BTEC First Diploma in Business – Issue 1 – January 2006 17 . Every business has a purpose which will eventually lead — directly or indirectly — to customers. Any member of staff working in a customer service situation will be expected to present themselves in a professional way. for example a user of a public service such as a library or local council. They may be purchasers and consumers of products or services. They will have the opportunity to put these skills into practice. This unit will develop and broaden the learner’s understanding of customer service in different businesses. 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. Developing good customer relations is critical to the success of every business. Learners will develop their knowledge and understanding of customer needs and expectations. In addition. Learners will look at ways in which this can be achieved. 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. 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. have good interpersonal skills and be able to communicate effectively with their customers. as well as being able to identify a wide range of different types of internal and external customers. 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. to meet the needs and expectations of customers.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. or they may benefit from business operations in a different way.

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

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

using examples. how effective customer service benefits the customer. Guidance to support the assessment of this unit is available on page 22. 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. 20 BF017259 – Specification – Edexcel Level 2 BTEC First Certificate and BTEC First Diploma in Business – Issue 1 – January 2006 . 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: anticipate and meet the needs of at least three different customers in a range of situations analyse. the organisation and the employee. in addition to the pass and merit criteria. the organisation and the employee. interpersonal and communication skills are important to customer service explain how monitoring and evaluating can improve customer service for the customer.UNIT 2: DEVELOPING CUSTOMER RELATIONS Grading grid In order to pass this unit. display a confident approach when delivering customer service to customers To achieve a distinction 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 learner is able to: M1 D1 M2 D2 explain why presentation. Grading criteria To achieve a merit grade the evidence must show that.

Learners may have a variety of existing presentation and interpersonal skills before beginning this unit.) Delivery and assessment of the practical aspects in workplace or realistic conditions are ideal. The two teams are recognised by the hotel as the ‘guest services team’ and the ‘services provision. as they did not serve the food. Some may have given little thought to their role as a customer. However. The unit begins with the development of learners’ knowledge and understanding of how customer service is provided in business. regional or national businesses they have studied or are studying in other units.UNIT 2: DEVELOPING CUSTOMER RELATIONS Essential guidance for tutors Delivery This unit introduces learners to a number of significant concepts relating to customer service. where such opportunities are unavailable. BF017259 Specification – Edexcel Level 2 BTEC First Certificate and BTEC First Diploma in Business – Issue 1 – January 2006 21 . the five-star Gleneagles Hotel in Scotland has two distinct teams. making them think more about what customer service is about. 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. Their service contract was with the food service team. hairdressing salon or motor vehicle workshop) or under simulated conditions. Learners need to recognise. firstly. Visiting speakers can be used to emphasise the importance of these skills for customer service situations. the organisation and the employee. delivering food at the right time and of the right quality to waiting staff. in a realistic working environment (such as a training restaurant. For example. the value of a satisfied customer and secondly. All learners will have been a customer at one time or another and will have had varied experiences. Some may only have experienced this in their role as a customer. (Tutors must ensure that sufficient time away from real or realistic conditions is provided to support the theoretical understanding. Tutors should also encourage the groups to relate their discussions to local. Tutors should not limit their ideas to ‘regular’ customer service videos. A variety of video materials are also available that can illustrate these skills in action. 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. comedy classics such as Fawlty Towers. Some role play discussions can be developed. the damage a dissatisfied customer can do. Learners can use this example to research other organisations where similar internal customer interfaces exist. Customer service cannot occur in a vacuum and needs a vocational context to make sense. with different learners debating the benefits (or disadvantages) of certain actions to the customer. to the organisation and to the employee. This section can be drawn together by using case study materials to illustrate the benefits of customer service to the customer. Others may already have part-time jobs and be in a position to share the experiences they have already had of delivering customer service. Soap operas such as Coronation Street. It is important for learners to recognise the importance of internal customers as well as external customers. 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. simulated alternatives are acceptable. 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. others may have found themselves in a situation where they were forced to complain. This unit can be delivered either in the workplace. Discussion groups can initially be used to explore learners’ experiences relating to customer service.

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

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

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

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

and identify different ways of tackling it. 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. They should be able to develop the following key skills evidence: ICT2.1 LP2.2 Help set targets with an appropriate person and plan how these will be met. image with number.2 PS2. Take responsibility for some decisions about your learning. They should be able to develop the following key skills evidence: PS2.1 Identify a problem. text with number. • LP2.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. ICT2. Check if the problem has been solved and identify ways to improve problem solving skills. Review progress with an appropriate person and provide evidence of your achievements. ICT2.3 Problem solving level 2 When learners are: • identifying the improvements that could be made to customer service delivery. PS2.3 26 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: LP2.1 Search for and select information to meet your needs. with help from an appropriate person. Use different information sources for each task and multiple search criteria in at least one case.2 Enter and develop the information to suit the task and derive new information. using your plan to help meet targets and improve your performance.3 Present combined information such as text with image. Plan and try out at least one way of solving the problem.

the excess presents the business with opportunities to develop and expand. the unit looks at how businesses record transactions and the financial process behind a simple business transaction. 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. Learning outcomes On completion of this unit a learner should: 1 2 3 4 Understand the costs. Where costs are greater than the income. which is concerned with predicting the amount of money entering and leaving the business’s bank account each month.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. It is likely to be main the reason why a business was created and for it continuing to trade. 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. other than for short periods. 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. Finally. The learner will be made aware of the potential for fraud within companies handling these transactions and how this may be addressed. starting with an investigation into the types of costs that different businesses will incur. Where a business is generating more money than its costs. This unit looks at the financial aspects of running a business. 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. The awareness of profit leads the learner into break even analysis. the business is likely to be unsuccessful and die. 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. 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. A business without the financial skills to manage its money is unlikely to survive for long.

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

To achieve a pass grade the evidence must show that the learner is able to: P1 describe. Grading criteria To achieve a merit grade the evidence must show that.UNIT 3: INVESTIGATING FINANCIAL CONTROL Grading grid In order to pass this unit. To achieve a distinction grade the evidence must show that. 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. in addition to the pass and merit criteria. in addition to the pass criteria. The criteria for a pass grade describe the level of achievement required to pass this unit. 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. Guidance to support the assessment of this unit is available on page 31. BF017259 Specification – Edexcel Level 2 BTEC First Certificate and BTEC First Diploma in Business – Issue 1 – January 2006 29 . the importance of costs. 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. the learner is able to: evaluate how cash flows and financial recording systems can contribute to managing business finances.

Through this approach learners will be introduced to the importance of having knowledge of and some control over financial flows. for example. 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. they will at least be able to see the effect of a regular monthly income and how it is affected by special payments. would mean either that they cannot purchase the hi-fi or that they would need to access further funds. skills and understanding based initially on straightforward exercises. showing income less expenditure and the monthly balance. Careful consideration should be given to a delivery strategy that introduces progressively complex numbers and calculations. 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. The unit begins by looking at what is meant by profit and how. 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. Simple numerical examples should be used to help learners develop their skills in manually mapping coordinates and reading axes logically. a business can show if it is making a profit or a loss. 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. Tutors should also consider ways of building learners’ knowledge. This simple data can be developed over. Learners can be introduced to profit and loss using examples that they are familiar with. such as their own personal finances. it is useful to plot the changes in profit. such as a new hi-fi system. through an understanding of the relationship between its costs and revenues. The use of wall displays in explaining calculations helps consolidate understanding. 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. Once learners have understood the key numerical relationships and are able to relate to graphical illustrations. such as an overdraft. 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. This can then be used to show the similarities between the problems of handling personal and business finances on a day to day basis. Although learners may not engage in negative cash flows. 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. fixed and variable costs. A business scenario could be used to form the basis of a group investigation/discussion on recommendations for improvement.UNIT 3: INVESTIGATING FINANCIAL CONTROL Essential guidance for tutors Delivery This unit introduces the learner to the financial aspects of running a business. Insufficient income. rather than having to rely solely on computer software or calculators. 30 BF017259 – Specification – Edexcel Level 2 BTEC First Certificate and BTEC First Diploma in Business – Issue 1 – January 2006 . loss and break even sales/output levels caused by adjusting prices. In this way learners are able to get a feel for the size of the numbers. six months.

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

could be used to show that the learner understands the potentially serious impact that poor timing of cash flow can have on a business. 2004) ISBN 0435401386 Fardon. The use of a simple numerical example. It is not necessary at this level to explore the implications of inelastic or elastic demand. Second Edition (Collins. learners will be expected to demonstrate how break even calculations change when the costs (fixed and variable) and unit revenues are changed. 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. with appropriate explanation. 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. This unit offers opportunities to gain key skills in application of number. Anderton A — GCSE Business Studies (Causeway Press. 2002) ISBN 1872962327 Wales J and Wall N — Nuffield — BP Business and Economics for GCSE. other BTEC units. although it is likely that some connection between the demand for a product/service and its price will be indicated. Nuttall and Prokopiw — GCSE Applied Business (Osborne Books. information and communication technology and problem solving. Links to National Occupational Standards. 2001) ISBN 1902796292 Carysforth and Neild — BTEC First Business (Heinemann.UNIT 3: INVESTIGATING FINANCIAL CONTROL To achieve a merit grade. even though the business they are undertaking is profitable in the longer-term. Indicative reading for learners Materials that illustrate the level of learning required and that are particularly relevant. 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. 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. communication. To achieve a distinction grade. to show that they understand the variables they are manipulating. learners should suggest possible courses of action to control the business’s cash flow most effectively. 2001) ISBN 000711639X 32 BF017259 – Specification – Edexcel Level 2 BTEC First Certificate and BTEC First Diploma in Business – Issue 1 – January 2006 . It also complements Unit 10: Starting a Small Business as it addresses some of the calculations involved in small business operations.

1a C2. They should be able to develop the following key skills evidence: N2. Give a talk of at least four minutes. C2. Learners may need to develop additional evidence elsewhere to fully meet the requirements of the key skills specifications. Each document must be a minimum of 500 words long.3 amounts or sizes scales or proportion handling statistics using formulae.UNIT 3: INVESTIGATING FINANCIAL CONTROL 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.1 N2.3 BF017259 Specification – Edexcel Level 2 BTEC First Certificate and BTEC First Diploma in Business – Issue 1 – January 2006 33 . Interpret the results of your calculations and present your findings. Staff should check that learners have produced all the evidence required by part B of the key skills specifications when assessing this evidence. Communication level 2 When learners are: • discussing attitudes to profit versus breaking even. Read and summarise information from at least two documents about the same subject. 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. One document must be at least 500 words long. They should be able to develop the following key skills evidence: C2. 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 C2.2 Interpret information from a suitable source.2 Take part in a group discussion.

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

consistent and well-presented written communications. Learners will explore the importance of these skills and consider their impact on effective business practice. As businesses gain in size and complexity. Learners will develop their oral communication skills in both one-to-one and group situations. while the communication needs of businesses differ.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. 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. 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. Interpersonal skills play a significant role in how effectively colleagues communicate with each other and how they in turn communicate with customers. However. For small businesses. Businesses also rely extensively on the ability of managers and staff to produce accurate. BF017259 Specification – Edexcel Level 2 BTEC First Certificate and BTEC First Diploma in Business – Issue 1 – January 2006 35 . 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. the fundamental principles remain the same. 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 purpose of business communications and the range of contexts in which such communications occur. Learners will develop their knowledge and understanding of the most appropriate forms of written communication that are fit for purpose in conveying the messages. supervisors and subordinates is critical to every business. communication may be primarily verbal. The purpose of this unit is to develop learners’ ability to use communication skills effectively in the context of a workplace setting. 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. with some supporting written documentation.

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

in addition to the pass criteria. BF017259 Specification – Edexcel Level 2 BTEC First Certificate and BTEC First Diploma in Business – Issue 1 – January 2006 37 . To achieve a pass grade the evidence must show that the learner is able to: P1 describe. 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. To achieve a distinction grade the evidence must show that. Guidance to support the assessment of this unit is available on page 39. using examples. 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. Grading criteria To achieve a merit grade the evidence must show that.UNIT 4: BUSINESS COMMUNICATION 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 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. in addition to the pass and merit criteria. The criteria for a pass grade describe the level of achievement required to pass this unit.

can also provide opportunities for practising good listening skills as well as providing the learner with the opportunity to respond. Learners then need to develop their knowledge and understanding of oral skills in a one-to-one and a group situation. across spans of control and between teams who are all working to meet the stated aims and objectives of the business. This will itself benefit from discussions involving the delivery team. Group activity can also allow for an opportunity to explore the benefits of the group working cohesively together. 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. Developing good verbal. where learners can begin investigating business communications by asking appropriate questions. or between the learner and an employer. Accuracy and good presentation are essential. as well as reviewing the quality of their contribution to the discussion. Learners should discuss the implications of instances where one group member may let others down by not listening carefully enough. a business needs to have effective systems that are well organised. in order to identify different opportunities that would be useful to learners. Learners also need to have the confidence to seek clarification about aspects of the instructions that are not clear. seek clarification and confirm understanding. Discussion groups can be a useful start but tutors should be aware that some formal input may also be required. Providing examples of different types 38 BF017259 – Specification – Edexcel Level 2 BTEC First Certificate and BTEC First Diploma in Business – Issue 1 – January 2006 . 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. The skill of listening is often overlooked and taken for granted. Communication matters between different functional areas. 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. Learners need to understand the implications for a business of poor or inaccurate written communication. Group activity requires both listening skills and the ability to respond effectively. 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. It may be helpful to link this with other units involving visits to local businesses. 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. 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. Effective written communication impacts on every aspect of successful business organisation. 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. It is essential for learners to be able to identify the different communication skills they need in order to be effective in the workplace. This unit looks firstly at the purpose of business communication. One-to-one interactions between the tutor and the learner.UNIT 4: BUSINESS COMMUNICATION Essential guidance for tutors Delivery Any business relies on the communication skills of its employees in order to run effectively. Internally.

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

where interpersonal sales and customer service skills feature clearly. a conference function checklist and preparation of a sample invoice to present to the customer on completion of the event. However. 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. which should provide an explanation rather than just a demonstration of 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: . 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. Links to National Occupational Standards. They should select examples from their experience to illustrate their evidence. learners should use examples of oral and written communications to support their analysis of their effectiveness in a given business context. 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. 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. their evidence would benefit from discussions with the owner/manager. Unit 10: Starting a Small Business further highlights the importance of effective communication skills. Links also exist with Unit 2: Developing Customer Relations and Unit 7: Personal Selling. For a distinction grade. For example. Tutors could also consider consulting with owners/managers to assess the evidence presented by learners. although they should also be conscious of the capability of such business people to make effective judgements for distinction criteria. other BTEC units. Again. perhaps based on a local business they have visited. 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. learners need to explain how oral communications can be used in business situations. For example. The business context may be one of the learner’s choosing. learners should draw on examples from their experience to illustrate their evidence. There is also a link to Unit 3: Investigating Financial Control where such documents are used to support this unit. Learners also need to justify the use of appropriate documents and layouts for business purposes. 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. Assignments or project tasks should allow learners the flexibility to choose from a range of different documents. Learners should also consider using the same business for their evaluation of the importance of effective interpersonal and non-verbal communication skills. In addition to demonstrating effective interpersonal and non-verbal communication skills. where administrative effectiveness clearly depends on effective communication skills. For a merit grade. to ask learners to answer a letter would only provide limited opportunity — a letter in response is probably the only solution. Again. 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.

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

Learners may need to develop additional evidence elsewhere to fully meet the requirements of the key skills specifications. Information and communication technology level 2 When learners are: • producing presentations of financial information in written communications. They should be able to develop the following key skills evidence: C2. They should be able to develop the following key skills evidence: ICT2. 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. Give a talk of at least four minutes. One document must be at least 500 words long.2.3 42 BF017259 – Specification – Edexcel Level 2 BTEC First Certificate and BTEC First Diploma in Business – Issue 1 – January 2006 . C2. Communication level 2 When learners are: • discussing issues of communication in business. 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.1b C2. Read and summarise information from at least two documents about the same subject.UNIT 4: BUSINESS COMMUNICATION Key skills Achievement of key skills is not a requirement of this qualification but it is encouraged. Each document must be a minimum of 500 words long. ICT.3 Present combined information such as text with image.2 Take part in a group discussion.1a C2. text with number.

each with their own role and responsibilities to carry out in order to contribute to the business organisation’s aims and objectives. irrespective of what its core business is. 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. 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. Learners will move on to develop their knowledge and understanding of terms and conditions of employment. Organisations will select employees by assessing whether they have the right attributes and attitudes. 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. 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. In other words. 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. they may want to be promoted so learners need to know how they can plan their careers and move on to more responsible jobs. Employees work with others. qualifications and interests they have and how these can be used in choosing a suitable job. an employee will be required to make an effective contribution to the work of the organisation. or what its aims and objectives are. Organisations will then seek to develop their employees as change occurs both internally and externally. so learners need to understand the structures and ethos of different organisations and how employees work within them. so learning to be a good team member is important. Owners and managers need to rely on strong and effective relationships with good employees if they are to guarantee business success. 43 BF017259 Specification – Edexcel Level 2 BTEC First Certificate and BTEC First Diploma in Business – Issue 1 – January 2006 . In time. every business is dependent on an effective infrastructure made up of people. much of which will be spent within organisational settings. are important for the success of organisations. 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. knowledge. In addition. Once employed. Both managers and their staff need to build effective working relationships if the business is to run most efficiently. The unit begins by asking learners to consider what skills. The skills of employees both individually and collectively.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. Learners will experience some of the performance review measures that are used by employers or by their school or college.

voluntary Sources of information and advice: sources eg advertisements. practical. payment terms. careers fairs. friends and family Applying for jobs: job specifications. skills eg technical. paid. permanent. temporary. careers advisers. letters of application 2 Understand terms and conditions of employment Terms and conditions of employment: contracts of employment. annual leave. curriculum vitae. representing the organisation. disciplinary procedures. employment/government agencies. union membership. matching knowledge and skills to job opportunities Types of employment: eg full-time. existing and previous employers. 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 . tutors. redundancy.UNIT 5: PEOPLE IN ORGANISATIONS Unit content 1 Know how to prepare for employment Personal audit: knowledge. seasonal. notice and termination. ethical behaviour. application forms. maternity and paternity leave. communication. part-time. grievance procedures. compliance with company policies/codes of behaviour. probation. person specifications. advice eg government agencies. word of mouth.

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

UNIT 5: PEOPLE IN ORGANISATIONS Grading grid In order to pass this unit. 46 BF017259 – Specification – Edexcel Level 2 BTEC First Certificate and BTEC First Diploma in Business – Issue 1 – January 2006 . the evidence that the learner presents for assessment needs to demonstrate that they can meet all of the learning outcomes for the unit. To achieve a distinction grade the evidence must show that. using examples. the learner is able to: analyse. 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 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. the implications of terms and conditions of employment evaluate how personal attributes and team working contribute to working practices. The criteria for a pass grade describe the level of achievement required to pass this unit. Guidance to support the assessment of this unit is available on page 48. Grading criteria To achieve a merit grade the evidence must show that. in addition to the pass and merit criteria. in addition to the pass criteria.

honesty. grievance procedures. the concept of working practice focuses on organisational structures. notice and termination. appearance. learners need to review whether they are adequately equipped to apply for the jobs that attract their interest. 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. person descriptions and application forms will allow learners to identify the range of employment available and the sort of qualities sought by potential employers. punctuality. To consider what opportunities are available from an informed perspective. payment methods. holiday entitlement. 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. By undertaking a personal skills audit. reliability. Initially. Many organisations have codes of conduct and some local employers may be willing to provide examples for learners to examine. As part of the process of seeking employment. learners need to consider the labour market both nationally and locally and what sorts of job opportunities exist. covering hours. Groups should identify BF017259 Specification – Edexcel Level 2 BTEC First Certificate and BTEC First Diploma in Business – Issue 1 – January 2006 47 . 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. Learners need to identify the main features of a contract of employment. supported by guidance which is available from an extensive number of websites. In any organisation there are less formal obligations that are expected of both employer and employee. Learners need to develop their knowledge and understanding of the obligations that employers have for their employees once they are in employment. A specialist speaker may be invited to deliver an appropriate presentation. Employees are entitled to receive a contract of employment. Tutors should provide an appropriate range of resource materials. Learners need to identify the types of behaviour that are expected in organisations in relation to confidentiality. pay rates.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. They need to have some idea of the job and career that they wish to pursue. job descriptions. 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. If they have little idea of what they want to do. it would be useful for learners to prepare and keep up-to-date a standard application letter and curriculum vitae. For this unit. 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). disputes procedures and probation. such as trade journals featuring job advertisements for specific vocational sectors. Some controlled internet research may be helpful here but tutors may prefer to provide examples of contracts featuring the components described above. conduct and representing the organisation. Obtaining information about jobs in the form of advertisements. learners will be able to match their current skills and characteristics to those of potential jobs. the job roles that fit into them and how these organisational structures and job roles are influenced by team working and personal attributes. Employees all contribute to organisational purposes.

learners must describe the terms and conditions of employment. Application forms. Similarly. including departmental structures. By obtaining advice and guidance on employment they can identify possible job and career opportunities. 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.UNIT 5: PEOPLE IN ORGANISATIONS the organisational purposes of different businesses. Learners can then complete an application form. they can identify the importance of the contributions they make. which must be compatible with organisational purposes. 48 BF017259 – Specification – Edexcel Level 2 BTEC First Certificate and BTEC First Diploma in Business – Issue 1 – January 2006 . Learners need to understand how the work of different departments is related and interdependent and helps secure organisational purposes. Specific opportunities can be identified from job advertisements and learners can assemble a collection of potential jobs. Most organisations have structures within which employees have to function. Once established in employment an employee would have their performance reviewed and would probably be seeking to develop a career. learners will need to prepare a personal audit. 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. 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. service provision and customer satisfaction. Case study materials can highlight and/or support specific issues that may otherwise be difficult to expose. 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. attach their CV and write a letter of application. 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). as well as using practical activities and exercises where appropriate. By working in groups. These would include profit maximisation. Learners can use this experience to demonstrate a range of personal skills that are important for an effective employee. 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. Learners also need to understand the role of individuals within departmental structures. For the first pass criterion. Learners need to examine the different types of organisational structures. Once again. growth. learners must identify that departments within organisations have goals. Some learners may already have experienced performance reviews and it will be useful for others if they are willing to share this information. Learners should generate assessment evidence from their learning programme and from workplace situations. Many of these are based on the legal framework for employment. input from appropriate specialist speakers will make a valuable contribution to currency and vocational relevance. They should also prepare a curriculum vitae that they keep up to date over their programme of study. Learners must be able to identify the key pieces of employment legislation that affect employers and employees. market domination. The information could be gathered and kept in a portfolio. along with an understanding of the interdependence needed to achieve the group’s overall purpose. job specifications and person specifications can be obtained from a selection of the advertised jobs to support the second pass criterion. For the third pass criterion.

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. Learners can also draw on these selected businesses to develop their evidence. working with others. 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. as it is likely to affect them as employees. When describing how working practices are developed for the fourth pass criterion. the range of job roles within the organisation. or it could be built around a single case study or business that learners have visited as part of this or other units. improving own learning and performance and problem solving.UNIT 5: PEOPLE IN ORGANISATIONS Learners must be able to describe the main features of the legislation. learners must extend their knowledge of the terms and conditions of employment by explaining why these are important for both employers and employees. Links to National Occupational Standards. They must be able to identify the possible outcomes of such reviews and put together a personal development plan arising from them. Examples drawn from case studies or the trade press could be used to illustrate their work. learners must identify the mechanisms that supervisors and managers use to evaluate an employee’s contribution to the work of an organisation. For a distinction grade. Learners must also evaluate how personal attributes and team working contribute to working practices. such as one hierarchical and one matrix structure. For the final pass criterion. In addition it provides opportunities to gain key skills in communication. explaining the importance of team working and personal attributes. other BTEC units. They must also be able to apply the review of their performance that has been generated by their school or college. The sharpest contrast is likely to be achieved by selecting different organisational structures. 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. The contrast in job roles should flow from this initial selection. 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. For a merit grade. information and communication technology. 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. BF017259 Specification – Edexcel Level 2 BTEC First Certificate and BTEC First Diploma in Business – Issue 1 – January 2006 49 . This can be achieved using examples relating to different businesses. and the contribution made by individual personal attributes and team working. learners should reflect the content and its delivery by commenting on how an organisation has developed its organisational structure. 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.

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

Staff should check that learners have produced all the evidence required by part B of the key skills specifications when assessing this evidence.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. C2. 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: C2.1a C2. ICT2. Learners may need to develop additional evidence elsewhere to fully meet the requirements of the key skills specifications. image with number. One document must be at least 500 words long.2 Enter and develop the information to suit the task and derive new information. Read and summarise information from at least two documents about the same subject. ICT2. 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.3 Present combined information such as text with image. Write two different types of documents each one giving different information.UNIT 5: PEOPLE IN ORGANISATIONS Key skills Achievement of key skills is not a requirement of this qualification but it is encouraged.2 Take part in a group discussion.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. Suggestions of opportunities for the generation of level 2 key skill evidence are given here. text with number.

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

which may have personnel. This may be to ensure consistency. particularly for large businesses. for example arranging the time. BF017259 Specification – Edexcel Level 2 BTEC First Certificate and BTEC First Diploma in Business – Issue 1 – January 2006 53 .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. Learners will also learn the procedures used to process. date and location of a meeting. There may simply be a secretarial office or even just a reception/switchboard function which extends to cover the administration needs of the organisation. telephone systems and a range of other office equipment. to make effective use of time. Learners will also develop their skills in organising and providing administrative support for meetings. 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. This support may come in a variety of forms. In developing their knowledge and understanding of the purpose of providing business and administration support. taking and distributing minutes. retrieve and archive information. whether the organisation is large or small. This unit introduces learners to the overarching purpose of providing business support. or to support departmental functions. administration and other specialist functions. retrieve and archive information. They will also learn how to manage external meeting arrangements. research. including diary management. These will vary enormously. such as travel and accommodation arrangements. to support managers. learners will investigate office systems and equipment. marketing. including different types of filing systems and associated issues such as confidentiality. including secretarial support such as diary management and the creation. Smaller organisations may not have a specific administration department. irrespective of the size of the organisation concerned. The administration department may cover a variety of support areas. meeting support (organising and running the meetings) and ensuring that all the organisation’s documents are filed effectively and efficiently. and learners will come across a wide variety of systems for providing business and administration support during their studies. handling and processing of documentation.

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

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

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.UNIT 6: PROVIDING BUSINESS AND ADMINISTRATION SUPPORT Grading grid In order to pass this unit. The criteria for a pass grade describe the level of achievement required to pass this unit. the learner is able to: M1 D1 M2 D2 explain the appropriate use of office equipment types. Guidance to support the assessment of this unit is available on page 59. in addition to the pass criteria. retrieve and archive information. the evidence that the learner presents for assessment needs to demonstrate that they can meet all of the learning outcomes for the unit. Grading criteria To achieve a merit grade the evidence must show that. compare and contrast paper and electronic diary systems To achieve a distinction grade the evidence must show that. 56 BF017259 – Specification – Edexcel Level 2 BTEC First Certificate and BTEC First Diploma in Business – Issue 1 – January 2006 . features and functions to suit different business purposes explain the organisation and administrative support provided for meetings. 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. in addition to the pass and merit criteria.

They also need to understand the importance of communication in connection with diary management. Learners will also benefit from exposure to both electronic and paperbased systems. tutors need to provide a platform of knowledge enabling learners to understand the purpose of providing business and administration support. Case study materials may be useful as an introduction. Groups may benefit from being allocated to a local business that learners may have visited for another unit. learners will need to establish the purpose of the call. 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. They should have the opportunity to explore the wider facilities offered by electronic systems. Learners will need to develop their understanding of telephone systems and the role employees have in making calls and receiving calls.UNIT 6: PROVIDING BUSINESS AND ADMINISTRATION SUPPORT Essential guidance for tutors Delivery The primary format for this unit should be practical delivery. Learners also need to explore the types of support that organisations need. A number of different skills are involved. It is important for learners to gain experience in diary management. many of which are transferable across other units. When making calls. Subgroups can then compare their findings as a whole group and discuss the differences. 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 . in order to highlight the business and administration support needs for that organisation. 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. obtain the name and numbers of the person to be contacted. to support managers. communicate the information required to achieve the purpose of the call and summarise the outcomes of the conversation before ending the call. supported by in-tray exercises that enable learners to process. linking diary management with organising and providing administrative support for meetings. 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. However. 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. make contact. providing learners with opportunities for experiential learning wherever possible. including: • • • • • • • questioning and listening skills research skills to find information communication skills presentation summarising information using technology problem solving. The procedure for receiving calls has strong similarities that learners should be encouraged to identify. amend and cancel diary entries.

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

telephone operations. 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. alphabetical and numerical systems. BF017259 Specification – Edexcel Level 2 BTEC First Certificate and BTEC First Diploma in Business – Issue 1 – January 2006 59 . retrieve and archive information. Take follow-up actions as appropriate. To meet the pass criteria. Learners should present at least two examples that are sufficiently different to show a recognisable contrast. This can be either through simulation. filing procedures and others. Learners need to demonstrate telephone techniques. 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. role play or other integrated exercises. part-time work or work experience. skills and understanding of filing systems and the procedures needed to process. such as diary management. retrieve and archive information. as well as comparing and contrasting manual and electronic systems. which should be supported with witness testimony statements. 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. or from other sources such as other units. written communications and other communication skills can be demonstrated in a telephone technique scenario to avoid unnecessary repetition. Assessment Learners will be expected to produce evidence that shows their knowledge and understanding of how business and administration support is provided. When learners are sufficiently experienced. Evidence should show a clear link between the purpose of support and the type of support being delivered.UNIT 6: PROVIDING BUSINESS AND ADMINISTRATION SUPPORT • • • • Ensure the chair signs the minutes. Write an action list for delegates and for self. Amend the meeting records as appropriate. tutors can embed a range of practical exercises. particularly where oral instruction. 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. Learner evidence should include records of them operating a diary system. learners need to develop their knowledge. Some theoretical input will set the scene. for example explaining the operation of chronological. Write the draft minutes and distribute them in accordance with instructions. Post meeting • • • To complete this unit. 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. Leave at an appropriate time having clarified details including date of next meeting (if appropriate). Learners must have opportunities to operate the procedures involved and suitable intray exercises and role plays should be used.

learners need to provide evidence of their depth of knowledge and understanding. other BTEC qualifications and other relevant units/qualifications This unit has links with Unit 1: Exploring Business Purposes and with Unit 4: Business Communication. learners can explain how the facilities suited the purposes they were required to meet. 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. should this have been applied to the same circumstances. To meet the merit criteria. retrieve and archive information. other BTEC units. such as agenda and meeting minutes.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. where administrative effectiveness clearly depends on effective communication skills. learners need to explain the organisation and administrative support needed for meetings. much will depend on the capacity of the equipment they were using. Much of learners’ evidence will be generated through the documentation they prepare. If equipment facilities were limited. learners need to demonstrate the procedures needed to process. To meet the distinction criteria. Tutors and learners should be conscious of the practical activity completed for the pass criterion. learners need to compare and contrast paper and electronic diary systems and explain the appropriate use of office equipment. learners could explain what additional facilities they could have used had these been available. 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. Tutors will not be able to observe all learner activities so it is important that learners are clear about how to present their evidence. Links to National Occupational Standards. they should also aim to provide evidence of how these procedures are applied in an electronic environment. A checklist based on the guidance in the Delivery Strategies section above would be helpful to ensure that key points are addressed. again emphasising the need for adequate resources and exercises. This will be heavily dependent on tutors providing an appropriate range of resources linked to in-tray exercises. If this were advanced equipment. Learners should also gather appropriate witness testimonies and/or tutor observation records to supplement the evidence they have generated for themselves. 60 BF017259 – Specification – Edexcel Level 2 BTEC First Certificate and BTEC First Diploma in Business – Issue 1 – January 2006 . Both will demonstrate appropriate knowledge of modern equipment regardless of whether or not it was available for learners to use in practical circumstances. For the third merit criterion. 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. Whilst it is important for learners to understand how manual filing systems work. For the final pass criterion. 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. For office equipment.

information and communication technology.uk. 2004) ISBN 0435401386 Fardon. problem solving and working with others. including reports and trade press articles. 2002) ISBN 1872962327 Websites change continuously. Nuttall and Prokopiw — GCSE Applied Business (Osborne Books. This unit may be useful in the delivery of this unit. Indicative reading for learners Materials that illustrate the level of learning required and that are particularly relevant.cfa. Carysforth C and Neild M — BTEC First Business (Heinemann. improving own learning and performance. www. 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 .com The Council for Administration (CfA) — the National Sector Setting Body for Business and Administration. 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. the following website is only indicative of the type of material that is available.UNIT 6: PROVIDING BUSINESS AND ADMINISTRATION SUPPORT This unit provides opportunities to gain key skills in communication.

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

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

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 .

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. Learners will develop their knowledge and understanding of sales staff and how they go about the business of personal selling. They will learn how to prepare for selling and develop their personal selling skills. Many businesses survive quite happily without engaging formal sales staff and customers buy its products and/or services quite naturally. In fact.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. the picture is different. 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. They will also learn about the legislation that affects personal selling. personal selling has helped us achieve the standard of living we enjoy today and it plays an increasingly significant role in our expanding economy. The personal selling process is becoming increasingly important with the rise in customer demand and expectations in our modern society. this can be turned into a sale. including ways of responding to objections. This unit develops learners’ understanding of the role and importance of personal selling activities for customers. Finally. employees and businesses. personal selling is the process that engages businesses directly with their existing and potential customers. With a little effort. Learners will develop their understanding of the techniques and processes involved. BF017259 Specification – Edexcel Level 2 BTEC First Certificate and BTEC First Diploma in Business – Issue 1 – January 2006 65 . they will learn how to follow up sales and record valuable information about their customers. For larger organisations. Closing sales is a skill often overlooked. Active selling can be much more critical and therefore demands greater attention. Active selling is not a priority in many cases but still this happens. Whichever the case. Businesses have always relied on people to personally sell goods and services.

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

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

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. 68 BF017259 – Specification – Edexcel Level 2 BTEC First Certificate and BTEC First Diploma in Business – Issue 1 – January 2006 . The criteria for a pass grade describe the level of achievement required to pass this unit.UNIT 7: PERSONAL SELLING Grading grid In order to pass this unit. Guidance to support the assessment of this unit is available on page 71. D2 To achieve a distinction grade the evidence must show that. in addition to the pass criteria. in addition to the pass and merit criteria. 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. 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. 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. the learner is able to: M1 D1 demonstrate an independent approach to a major part of their work.

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

When a salesperson is knowledgeable about the prospect and well prepared for a sales process. Learners should also appreciate how the presentation step in the selling process is the most crucial. associated services (such as delivery. 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. implications of market competition and likely impact upon buyer behaviour. The time investment can often be proportionate to the value of the anticipated sale. Input from the tutor will clarify where this has happened during their experiences as a customer. available options. as well as the consumer market. Visits to supportive employers to observe preparation for personal selling in action would be useful. visits to supportive businesses under carefully controlled conditions will enable learners to observe personal selling in action. use of music. furnishings. as it is the stage in the selling process at which the salesperson gets a purchase commitment from the buyer. installation. 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. preparation of the sales physical environment which includes accessibility eg for disabled people. 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. as illustrated by retailers such as Office World. Role play may be used for the preparation of the selling process which includes full knowledge of the product. 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 . leading to identification of what skills and processes were involved in a particular situation. Once again. 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. even if learners themselves are unlikely to pursue this direction in their future careers. maintenance and warranty) and an explanation of how the product will benefit the customer or how it has benefited other customers. they will greatly improve chances of the business achieving its objectives. initially through discussion and sharing of experiences through the customer’s eyes. an effective presentation should include a detailed description of the product. for example a new car or house purchase would deserve considerably greater time investment than a washing machine or a pair of new trainers. especially in the case of commercially trained buyers representing business customers. for office furniture and stationery. 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. Returning to the discussion groups and case study materials introduced earlier. Visiting speakers can also deliver useful presentations relating to this area of content. Although it can take many forms. Preparation of the physical sales environment is also a key aspect. but would need to be managed carefully. For more complex selling situations. Examples of promotions can be found in trade journals or business-related magazines. learners can begin developing the skills and processes that support and deliver personal selling. but it is important for them to appreciate the significantly different approach to personal selling as an operator. Tutors should also select appropriate video resource materials to illustrate various points that learners may not otherwise experience. direct close and alternative close. 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. Learners should appreciate the importance of closing sales. For example. Staples and IKEA which compete in the business market. physical décor. dividing learners into pairs or very small groups to avoid any unwelcome exposure for the business. Closing sales techniques such as silent close. for example in many retail environments.UNIT 7: PERSONAL SELLING Pre-sales preparation includes significantly detailed knowledge of products or services along with knowledge of likely buyer behaviour. health and safety hazards.

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

The learner must also evaluate the preparation to support personal selling and the personal selling skills and processes carried out in two different situations. To achieve a distinction. 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. information and communication technology. the level of excellence and confidence must be comprehensive and cover all practical aspects. role plays or simulations if these will provide appropriate supporting evidence. learners can base their evidence on other sources. or their own observations of the personal selling process in action. videos. or their own observations of the personal selling process in action. selling hotel accommodation in contrast to selling sports equipment in a retail outlet. videos. Weaknesses in one area. 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. A different customer in a similar selling situation would not be acceptable. learners can make use of real work experience. Selling in a different environment would also be acceptable. improving own learning and performance. such as case study materials. such as preparation or closing. At least three different situations should be covered and should show an acceptable level of contrast. Where this cannot be achieved.UNIT 7: PERSONAL SELLING When comparing and contrasting the personal selling skills and processes used in two different situations. role plays or simulations if these will provide appropriate supporting evidence. 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. and explaining how legislation might affect personal selling in two different situations. 72 BF017259 – Specification – Edexcel Level 2 BTEC First Certificate and BTEC First Diploma in Business – Issue 1 – January 2006 . if one represented a straightforward sale and one was a difficult customer that would be acceptable. However. Links to National Occupational Standards. The learner must also demonstrate these abilities in a range of different situations. for example. learners can base their evidence on other sources. application of number. such as case study materials. problem solving and working with others. will prevent the learner from achieving the distinction criteria. In this instance. the third situation should be in marked contrast. Learners can base this evaluation on real work experience. other BTEC units. However. learners must demonstrate excellent and confident personal selling covering a range of different situations. Where this cannot be achieved. for example a call centre sale compared to a shop floor sale.

Second Edition (Collins. 2001) ISBN 000711639X BF017259 Specification – Edexcel Level 2 BTEC First Certificate and BTEC First Diploma in Business – Issue 1 – January 2006 73 .UNIT 7: PERSONAL SELLING Essential resources Case study materials linked to the preparation. This in turn would require employers to brief their staff to avoid any misunderstandings on the shop floor. Tutors must negotiate carefully with employers who are willing to support learners visiting their premises to observe personal selling in action. Nuttall C and Prokopiw J — GCSE Applied Business (Osborne Books. Agreement should also be reached about implications for customers and how such visits are best handled. allowing learners then to take over and identify the on-going process or explore different potential outcomes. delivery and closure of personal selling are essential. 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. Employers need to be carefully briefed about what would be involved and the potential impact on their business. Fardon M. 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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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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If there is to be a global presence. The feasibility of implementing an online presence as a feature of business strategy is also considered. 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. 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. making the most of rapidly developing technology and the opportunities it offers. Setting up such a business requires a great deal of expertise. The cost of marketing and advertising is greatly reduced and there is no need for expensive retail outlets in prime locations. There are problems with online business. language is a problem that has to be overcome. Having received orders there is a considerable distribution problem to be faced together with the means of accepting payments.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. Online business has a particular attraction for those who cannot easily travel to a conventional retail outlet because of problems of mobility or isolation. although specialised software is making this easier. with the increasing ownership of personal computers and the growing number of internet users particularly using broadband connections. The market is growing. BF017259 Specification – Edexcel Level 2 BTEC First Certificate and BTEC First Diploma in Business – Issue 1 – January 2006 77 . specialised businesses that might otherwise have difficulty reaching a specialised but global market. 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. 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. ranging from websites as merely ‘passive brochure ware’ to those offering interactive product customisation and online buying. The business is available to customers around the clock every day of the year. 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. The website has to be constantly maintained and updated. However. Online business is particularly attractive to small.

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

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

some of the operational risks associated with an online presence. Guidance to support the assessment of this unit is available on page 82. in addition to the pass criteria. 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. 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. in addition to the pass and merit criteria. To achieve a distinction grade the evidence must show that. 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. Grading criteria To achieve a merit grade the evidence must show that. P4 describe the staffing.UNIT 8: DOING BUSINESS ONLINE Grading grid In order to pass this unit. and overcome. 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.

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

the tutor should take steps to ensure that the businesses selected offer a balanced picture of the range specified under the first learning outcome. production of a simple website or a presentation using an online computer to demonstrate online business.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. Much of the argument may be from textbooks or tutors’ notes. These differences should be clear. financial and distribution issues. 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. which can validly test whether the learning outcomes have been achieved and the grading criteria met. Tutors should be aware of the learning styles of the learners to avoid disadvantaging any particular learning style when deciding on an assessment strategy. Learners’ group investigations can be carried out as before. should be considered. one-to-one presentations. Learners can research the market presence and marketing benefits from a number of businesses and. although this should be carefully monitored by the tutor. if any. examples. The same subgroup strategy can be applied to the final learning outcome. an exhibition. Learners should be encouraged to use printouts of web pages or actively use live websites if resources are available (rather than just include them). The practical nature of the unit should always be borne in mind when deciding on assessment strategies. provided that they are selective in what they include in their evidence. 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. another an education provider. one business might be an online retailer. written reports. and second a current online business operator with first-hand and current experience. again. another a service provider such as a travel agent. advantages and disadvantages and implementation problems of online businesses with few. but tutors must also address an appropriate range of related staffing. although the emphasis here is likely to be on those already operating successful online businesses. Both tutors and learners should be conscious of the medium on which they are focusing. The primary focus of this learning outcome is on the operational issues and risks. For example. 82 BF017259 – Specification – Edexcel Level 2 BTEC First Certificate and BTEC First Diploma in Business – Issue 1 – January 2006 . for example. Pass grade learners will provide evidence which will be a straightforward description of the key features. Tutors should feel free to use whatever assessment methods they feel are appropriate for the learners using available time and resources. staffing. but it would be particularly useful to involve two visiting speakers where possible: firstly a specialist online advisor to ‘sell’ the idea. Tutors should select these speakers carefully in order to ensure a balanced delivery. Learners must describe at least three different businesses. Any method. 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. Learners should maximise opportunities for electronic interchange. financial and distribution issues that form the focus of the third learning outcome. Tutors should make it absolutely clear that there is no benefit to volume if selection is lacking. particularly where such businesses have supported delivery of other units). depending on the resources available. Assessment Learners will be expected to produce evidence that shows their knowledge and understanding of issues relating to doing business online. Learners should be encouraged to consult with tutors as a resource in order to complete their assignments.

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

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

the different aspects that affect preparation and the knowledge. either about the business itself or the process of preparing for business. 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. skills and understanding learners will need to start and run a business if they should ever choose and have the opportunity to do so. The unit begins by helping learners to understand their own strengths and weaknesses. Learners can study for either Unit 9: Exploring Business Enterprise or Unit 10: Starting a Small Business but not both. 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. Learners also need to explore the importance of a proper business plan.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. However. a component that is frequently missing. which will have a clear impact on both their ability to prepare for business and actually run the business itself. They need to consider separate issues to do with starting and running a business and also the extensive availability of advice and support. possibly leading to further business opportunities that arise from early efforts. resulting in business failures. success for small businesses can be hugely rewarding on both a personal and business basis. Turning that dream into a successful business venture is a challenging task and one in which many will fail. These include the implications of regulations and laws that impact on small businesses. Learners also need to develop their knowledge and understanding of different aspects that affect preparing for business. They will need to consider the contribution they can make to a business and what the benefits are. with the right approach. the marketing and sales function and the critical importance of a range of financial issues. Many new businesses are started with little thought. 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.

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

Guidance to support the assessment of this unit is available on page 89. in addition to the pass criteria. The criteria for a pass grade describe the level of achievement required to pass this unit. 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. the learner is able to: M1 M2 D2 M3 explain the components of a business plan and the reasons for preparing one. 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. using examples. Grading criteria To achieve a merit grade the evidence must show that. BF017259 Specification – Edexcel Level 2 BTEC First Certificate and BTEC First Diploma in Business – Issue 1 – January 2006 87 . analyse the different aspects that will affect preparation for business explain.UNIT 9: EXPLORING BUSINESS ENTERPRISE 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 benefits of running a business D1 To achieve a distinction grade the evidence must show that.

Other useful support can be gleaned from discussions with successful operators of small businesses. A solicitor. considering their own contribution requires some subjective judgements. With suitable support from the local small business community. sector and type of business they have in mind. Bank managers. the tutor should deliver a session covering the process and engage learners in carrying out their own analysis based on preparing for business. adding vocational relevance to its purpose. Presentations must cover the purpose of marketing and sales. whether they are thinking about starting from scratch. care should be taken to ensure that they have adequate knowledge of these issues. Specialist speakers should be invited to give presentations relating to the different aspects that affect preparation for business. If the learning programme has not yet addressed the principle of carrying out an analysis of their strengths and weaknesses.UNIT 9: EXPLORING BUSINESS ENTERPRISE Essential guidance for tutors Delivery At the outset of this unit. these should be extended to cover the elements of a business plan. can deliver presentations on financial issues. 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. either drawn from real cases or created artificially. 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. 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. Various external speakers can address the implications of marketing and sales. although this must be done with care to ensure that they do not encounter negative reactions. or other financial advisers. It is essential for learners to understand the importance of a business plan. Learners also need to consider their own contribution to a business. or other legal expert. 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 . Tutors can guide learners in engaging in discussions with parents and friends. 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. as well as an appreciation of the time needed to gather and use information. and whether they plan to help run a business or become self-employed. can present the issues of regulations and laws for small businesses. It is critical to the success of this unit that learners understand the vocational relevance of what they are learning. Learners need to be clear about their own involvement in preparing for business. collecting and collating information and using it to understand the market. Where bank managers or financial advisers have been used to deliver presentations on financial issues. 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. taking over a business in its early years or taking over a more established business. such as analysing the market and competition. including those relating to both starting up and operating the business. small discussion groups will help to focus learners’ understanding of the contexts in which small businesses can be set. They will need to think about the location. Where the analysis is an objective appraisal of learners’ abilities. Development of the final outcome — understanding how to start and run a business — can begin with learner discussion groups. who will be able to demonstrate and present rational arguments for the benefits of running a business. Tutors can usefully use case study materials. although if a small business operator is chosen.

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

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

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

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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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

Those setting out on such a venture will need to consider the business idea. its target market. starting a small business can be fraught with difficulties and the idea may not always be successfully realised. legal aspects such as fire regulations. available resources. the target market and the need to balance personal and business needs. Learners can study for either Unit 9: Exploring Business Enterprise or Unit 10: Starting a Small Business but not both. and financial aspects. This will cover the reasons for preparing a business proposal and will include many of the components expected by financial advisers. including the type of business. VAT and HM Revenue and Customs. a motor vehicle repair workshop. However. BF017259 Specification – Edexcel Level 2 BTEC First Certificate and BTEC First Diploma in Business – Issue 1 – January 2006 95 . such as start up and operational costs. Learners will have the opportunity to devise an outline proposal for a business start up. where funding will come from. a painting and decorating business. financial information and forward planning. a DJ service. or an organic smallholding producing fruit and vegetables. an equipment hire operation. a hairdresser’s. Learners will also consider their ability to run the business. taxation.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. The business idea could be almost anything — a coffee shop. what the potential market is. what the competition is like and a host of other issues that must be addressed if the business start up is to be successful. a courier service. such as the type of business. Learners will also develop their knowledge and understanding of the legal status and trading terms and conditions of their proposed business. the attractiveness of the business idea. 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. as well as personal needs. 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. This unit gives learners the opportunity to consider their idea within structured business parameters.

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

Grading criteria To achieve a merit grade the evidence must show that. in addition to the pass criteria. in addition to the pass and merit criteria. 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 .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. The criteria for a pass grade describe the level of achievement required to pass this unit. 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. 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 99. the learner is able to: present a comprehensive business proposal that addresses all relevant aspects of business start up.

accountants. contracts. HM Revenue and Customs sources of advice eg Business Link centres. 98 BF017259 – Specification – Edexcel Level 2 BTEC First Certificate and BTEC First Diploma in Business – Issue 1 – January 2006 . an equipment hire operation. and representatives from banks. 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. 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. a hairdresser’s. including how the business idea will relate to its target market. the HM Revenue and Customs. insurances planning permission. Such investigations could also usefully inform learners’ knowledge of market research. such as a coffee shop. 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. When considering legal and financial aspects of small business start ups. a courier service. They need to concentrate on the processes involved rather that the specific outcomes. a painting and decorating business. 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. a motor vehicle repair workshop. To begin developing thoughts and ideas. a discussion group could brainstorm a wide range of small business opportunities. duties and responsibilities regulatory bodies eg Environmental Health Office. Learners need to carry out a skills audit to examine the skills they currently have to support the new business operation. They also need to consider what development they might need.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. learners would benefit from guest speakers such as those operating a small business. or an organic smallholding producing fruit and vegetables. business start up advisors. solicitors and the Small Business Service. a DJ service. Learners will need some theoretical input to develop their understanding of the criteria for a business idea. They should not be deterred if their ideas change during this unit. Learners should be encouraged at this early stage to begin to focus on a possible small business idea. training and advice services and local enterprise agencies. 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.

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

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

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

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

PS2. 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 .2 PS2. • LP2. Check if the problem has been solved and identify ways to improve problem solving skills.3 Present combined information such as text with image. Review progress with an appropriate person and provide evidence of your achievements.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 Enter and develop the information to suit the task and derive new information. Take responsibility for some decisions about your learning.1 Identify a problem. They should be able to develop the following key skills evidence: LP2. using your plan to help meet targets and improve your performance. text with number.2 Help set targets with an appropriate person and plan how these will be met.1 LP2.3 Problem solving level 2 When learners are: • identifying and resolving problems relating to starting and running a business. image with number. 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. They should be able to develop the following key skills evidence: PS2.1 Search for and select information to meet your needs. Plan and try out at least one way of solving the problem. and identify different ways of tackling it. with help from an appropriate person. ICT2. ICT2.

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 .

A summative unit grade can be awarded at pass. building on the application of the grading criteria. Tasks and activities should enable learners to produce evidence that relates directly to the specified criteria. Please refer to Annexe B. providing a realistic scenario for learners to adopt. 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. Development of practical and technical skills. performance observation and time-constrained assessments. based on the achievement of specified outcomes. Personal development for occupational roles. Assignments constructed by centres should be valid. 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. Each unit has specified criteria to be used for grading. Centres should use a variety of assessment methods. • • • • Application of knowledge and understanding. and making maximum use of practical activities and work experience. 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. assignments and work-based assessments.Assessment and grading The purpose of assessment is to ensure that effective learning of the content of each unit has taken place. 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. 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. All assessment for BTEC Firsts is criterion referenced. along with projects. Centres are encouraged to place emphasis on the practical application of the grading criteria. A grading scale of pass. The grading criteria are developed in relation to grading domains which provide for the assessment of the learning outcomes of the unit. BF017259 Specification – Edexcel Level 2 BTEC First Certificate and BTEC First Diploma in Business – Issue 1 – January 2006 105 . There are four grading domains which underpin the grading criteria. including case studies. reliable and fit for purpose. Application of generic and key skills. Learners who complete the unit but who do not meet all the pass criteria are graded ‘unclassified’. The creation of assignments that are fit for purpose is vital to achievement by learners and their importance cannot be over emphasised. 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. merit and distinction is applied to all units. In the Edexcel BTEC Firsts all units are internally assessed.

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. 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. and be granted. This updated information may also be found on the Edexcel website/Services for centres/FE Colleges and Schools. The learner work must have been internally assessed. Centres wishing to offer a vocational area for the first time will need to apply for approval to offer the programme. Additionally. For BTEC Firsts this process will follow the National Standards Sampling (NSS) protocol. Further guidance on delivery and assessment is given in the Essential guidance for tutors section of each unit. It achieves this through the following activities. centre approval before they can apply for approval to offer the programme. 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. 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.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. External verification Edexcel will sample assessors’ decisions using sector-specialist external verifiers. 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. Sanctions and tariffs may be applied if centres do not comply with the agreement. Ultimately. 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. Edexcel operates a quality assurance process which is designed to ensure that these standards are maintained by all internal verifiers and external verifiers. 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. Centres that have not previously offered BTEC qualifications will first need to apply for. deliverers and assessors and to provide for a coherence of understanding and a consistency of delivery and assessment. This is covered in the statement of outcomes and grading criteria in each unit. This section is designed to provide additional guidance and amplification related to the unit to support tutors. 106 BF017259 – Specification – Edexcel Level 2 BTEC First Certificate and BTEC First Diploma in Business – Issue 1 – January 2006 . Centres should refer to the BTEC NQF Level 2/3 (including Short Courses at Levels 1–3) Handbook (updated annually). this could result in the suspension of certification or withdrawal of approval. 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).

merit or distinction qualification grade based on the attainment of a stated minimum number of points for each unit grade. 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. 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. 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 .

For the detailed point scores for a pass. The qualification attracts the same points as two GCSEs at A*-C. distinction.openquals. The qualification attracts the same points as four GCSEs at A*–C.openquals.uk. please see the QCA Openqual website at: http://www. merit. and distinction*. 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 .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). and distinction*.org. please see the QCA Openqual website at: http://www.org. and contributes 40 per cent towards the threshold. merit. 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).uk. and contributes 80 per cent towards the threshold. For the detailed point scores for a pass. distinction.

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

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

understanding or competence. Further details are given in the policy ‘Access Arrangements and Special Considerations for BTEC and Edexcel NVQ Qualifications’. 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. Additionally. BF017259 Specification – Edexcel Level 2 BTEC First Certificate and BTEC First Diploma in Business – Issue 1 – January 2006 111 . 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). This assessment will need to take account of the support available to the learner within the centre during their programme of study and any specific support that might be necessary to allow the learner to access the assessment for the qualification. Centres are required to recruit learners to BTEC qualifications with integrity. For learners who have recently been in education. 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. This will include ensuring that applicants have appropriate information and advice about the qualifications and that the qualification will meet their needs. knowledge.org. 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. which is on the Edexcel website (www.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. 2002) concerning learners with particular requirements. The qualifications are listed on the DfES funding lists Section 96 and Section 97. considering whether this profile shows an ability to progress to a Level 2 qualification. Centres will need to review the profile of qualifications and/or experience held by applicants. 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. Centres should also show regard for Edexcel’s policy on learners with particular requirements.uk). This policy replaces the previous Edexcel policy (Assessment of Vocationally Related Qualification: Regulations and Guidance Relating to Learners with Special Requirements. More mature learners may present a more varied profile of achievement that is likely to include experience of paid and/or unpaid employment.edexcel.

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 . 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.The Edexcel BTEC Qualification Framework for the business sector Progression opportunities within the framework are available vertically. 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 .

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

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

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. Current and future initiatives such as learndirect.uk) for the latest key skills standards. These are transferable skills.qca. 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. 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. Learners need the chance to show current and future employers that they can: • • • • • • communicate effectively.Annexe C Key skills All BTEC First qualifications include mapping and/or signposting of key skills. 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. Centres should refer to the QCA website (www.org. They enable and empower individuals who inevitably face a series of choices in work. BF017259 Specification – Edexcel Level 2 BTEC First Certificate and BTEC First Diploma in Business – Issue 1 – January 2006 119 . Key skills provide a foundation for continual learning. education and training throughout their lives. These are indicative links only. in a variety of situations. which play an essential role in developing personal effectiveness for adult and working life and in the application of specific vocational skills. In each unit the opportunities for the generation of evidence for key skills are signposted.

2 LP2.1a C2.2 WO2.3 120 BF017259 – Specification – Edexcel Level 2 BTEC First Certificate and BTEC First Diploma in Business – Issue 1 – January 2006 Unit 9 .1 LP2.3 ICT2.3 PS2.2 ICT2.2 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 N2.1 WO2.3 C2.2 N2.2 C2.3 WO2.3 LP2.1 PS2.1 ICT2.1b C2.1 N2.

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 .

Unit 4: Business Communication through issues such as language barriers and differing time zones. 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). or the recycling of paper and other materials in the news and publishing industries. • • Environmental issues Learners are led to appreciate the importance of environmental issues through the experience of the business sector. The European dimensions of business can be addressed in Unit 2: Developing Customer Relations by considering the implications of business dealings with European customers. 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). social and cultural issues as well as an awareness of environmental issues. by discussing for example the disposal of waste and/or products that have reached the end of their useful life. the dependency of businesses on power supplies and their impact on the environment. 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. moral.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. ethical. for example through the personal satisfaction gained from providing good customer service (Unit 2: Developing Customer Relations). 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). European developments. as well as sector-specific issues. Other opportunities include moral and ethical responsibilities to customers (Unit 2: Developing Customer Relations). or Unit 9: Exploring Business Enterprise and Unit 10: Starting a Small Business. The Edexcel Level 2 BTEC Firsts in Business make a positive contribution to wider curricular areas as appropriate. 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. BF017259 Specification – Edexcel Level 2 BTEC First Certificate and BTEC First Diploma in Business – Issue 1 – January 2006 123 . health and safety considerations and equal opportunities issues. social and cultural issues The specification contributes to an understanding of: • spiritual issues – learners can explore personal development. ethical. the disposal of cooking oils in the catering sector. such as engineering waste. Spiritual. by considering issues relating to European markets for small businesses. moral.

Learners will also explore health and safety issues across the business sector. Equal opportunities issues Equal opportunities issues are implicit throughout the Edexcel Level 2 BTEC Firsts in Business.DOC.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 . 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. Learners will develop awareness of the safety of others as well as themselves in all practical activities. 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.

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.edexcel.org. London WC1V 7BH .Further copies of this publication are available from Edexcel Publications. 4496750 Registered Office: One90 High Holborn. Registered in England and Wales No.uk Edexcel Limited. NG18 4FN Telephone 01623 467467 Fax 01623 450481 Email: publications@linneydirect. Adamsway.org.edexcel.uk or visit our website: www. Mansfield. Notts.

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