A Level Business Studies CD Scheme of Work

Scheme of work
AS LEVEL
1. BUSINESS AND ITS ENVIRONMENT
Topic Detail Book reference Suggested teaching activities Resources Glossary

1.1 Enterprise Pages 9–19
1.1.1 The nature of Purpose of business activity Get students, in groups, to discuss “what makes a Sadie’s new business case Capital goods
business activity successful business”. study
Intermediate goods
This will enable you to draw out the key topic areas and key
and services
features of the course. Develop the interrelationship between
businesses using activities in the book. You will also use this
Final goods and
discussion later (see below*).
services
The concept of creating value Creating value can be developed through demonstrating A bar of chocolate. Also use
the process between growing cocoa beans and selling features in the classroom such Customer
chocolate in the shop. as tables, chairs,
chalk etc. Creating value/
adding value
The nature of economic activity, the The concept of opportunity cost can be explored through Pre-prepared list of relevant
problem of choice and opportunity various personal decisions such as buying new clothes, personal decisions Needs
cost buying presents, going to university.
Wants
Business environment is dynamic Demonstrate how your country has developed over the past Videos, newspapers,
50 years. What are the most recent developments? How are magazines showing current
Opportunity cost
things currently changing? business developments.
Possible use of the Internet
What a business needs to succeed *Link back to earlier discussion. At this stage discussion Jumpstart Our Business
should be general in nature, just providing ideas for Startups Act (JOBS) case
Why many businesses fail early on
development later on in the course. study
Business start-up websites
Reinforcement Progress questions/exam-style
questions
© Oxford University Press 2015: this may be reproduced for class use solely for the purchaser’s institute
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1.1.2 The role of the Qualities an entrepreneur is likely to Discussion of the role of the entrepreneur and what qualities If possible watch a TV Entrepreneur
entrepreneur need for success are needed. programme such as
The Apprentice
The role of business enterprise in the Use the case study “Jumpstart our Business Startups Act Jumpstart our Business
development of a business and a (JOBS)” to promote discussion. Startups Act (JOBS)
country case study
Reinforcement Progress questions/

exam-style questions
1.1.3 Social enterprise The range and aims of social Identify social enterprises in your country. Get students to Social enterprises in Africa and Social enterprise
enterprises research what these businesses do. South Asia case study
Triple bottom line
Triple bottom line – economic Discuss how actual businesses use the ideas of triple Materials/resources to enable
(financial), social and environmental bottom line. students to research
targets

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1.2 Business structure Pages 20–31
and 34–35
1.2.1 Economic sectors Primary, secondary and tertiary When teaching this topic it is useful to introduce types of Primary sector
businesses market. Much of this topic, which can be unstimulating if
taught traditionally, can be developed through the use of Secondary sector
The public and private sectors
assignments undertaken by students outside of class or
through visiting speakers. These assignments can be used to Tertiary sector
1.2.2 Legal structures Main features of different types of legal research businesses locally and nationally to find businesses
structures, including ability to raise Consumer market
which fall into the various categories such as primary/
finance secondary/tertiary or sole trader/partnership/private limited Industrial markets
company and so on. Students can be asked, with the aid of
handouts, textbooks, newspapers, magazines, the Internet Public sector
etc., to explain the differences between the businesses.
Private sector
Appropriateness of legal structure: Incorporation and limited liability should be introduced as Facebook in 2012,
Local business
the key stepping stone in progressing beyond sole trader/ Development of franchises in
•• Sole trader partnership and as the means of overcoming the major China and VW in China case National business
•• Partnership financial disadvantages of those simple business structures. studies
The various types of business should be studied not Multinational business
•• Private limited company
just in terms of ownership but also in relation to others
•• Public limited company Unlimited liability
who are affected by the business such as customers,
•• Franchise suppliers, employees and creditors (this could give an early Sole trader
introduction to the concept of stakeholders).
•• Co-operative Partnership
Ask students to present tables of advantages and
•• Joint ventures disadvantages of each type of legal structure.
Unincorporated
Concept of limited liability and its
importance Limited liability
Problems resulting from changing from Study of the growth of some well-known businesses. Material on some well-known Incorporation
one legal structure to another businesses, e.g. McDonald’s,
Coca-Cola, Virgin etc. Company
Private limited
company
exam-style questions Public limited
company (plc)
Franchise
Co-operative
Joint venture
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1.2 Business structure Pages 31–35 This section builds on work at AS
(A LEVEL)
1.2.1 Local, national Main differences between local, Building on the work of AS, more detail can be given to the Multinational
and multinational national and multinational businesses differences between the geographical scale of businesses.
businesses A written assignment can identify local, national and
The growing importance of
multinational businesses, getting students to identify for
international trading links and their
themselves the key differences.
impact on business activity
1.2.2 Multinationals Benefits and disadvantages that a A role play in class, involving a proposal for a multinational to Multinational
multinational might bring to a country set up a factory in the students’ own country, can, by getting
students to represent different stakeholder groups, bring out
Possible relationships between
the benefits and disadvantages of multinationals.
multinationals and the state
questions
1.2.3 Privatisation Advantages and disadvantages of Best studied from actual privatisations that are taking place News articles on privatisation Privatisation
privatisation in a given situation or have taken place in the students’ own countries. plans
questions
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1.3 Size of business Pages 36–42
and 47–48
1.3.1 Measurements of Different methods of measuring the As well as developing ideas about how business size can Data on a range of businesses Sales turnover
business size size of a business be measured, it is important to develop the idea that there
is “no right way”. It is also important to develop the idea that Market capitalisation
the various methods of measuring can often tell a “different
story” – for example, a business that has a very large Market share
turnover may well not employ a lot of people.
This can usefully be taught by providing students with
various pieces of data on a range of businesses and getting
them to make their own comparisons, for example using
spreadsheets.

1.3.2 Significance of small Advantages and disadvantages of This can best be studied from the perspective of the
businesses being a small business students’ own country. Students can identify local small
businesses and analyse their role. Out-of-class assignments
can be used to help this.
Strengths and weaknesses of family The Gazania Organization case study. The Gazania Organization
businesses case study
The importance of small businesses Additionally, local business people can come into class to
and their role in the economy discuss issues involved in running their business.
The role of small businesses as part Students could investigate the extent to which the
of the industry structure in some government in their country supports local businesses.
industries
1.3.3 Internal growth Why and how a business might grow Study the growth of a well-known business. International Internal growth
internally examples could include Virgin, McDonald’s and Microsoft.

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1.3 Size of business Pages 42–48
(A Level)
1.3.1 External growth The different types of merger and Best studied from the perspective of actual mergers and eBay merger with Skype case External growth
takeover: takeovers. These can be historical, or better still current. study
Students could build a file of newspaper cuttings in Merger
•• Horizontal Access to news articles
preparation for a class presentation.
•• Vertical (backward and forward) (newspapers, TV or the
Takeover
•• Conglomerate Internet)
•• Friendly merger
Bized (www.bized.co.uk) Friendly takeover
•• Hostile takeover
provides useful material
Hostile takeover
Impact of merger/takeover on the
various stakeholders
Joint venture
Why a merger/takeover may or may
Strategic alliance
not achieve objectives e.g. synergy
The importance of joint ventures and Horizontal
strategic alliances as methods of takeover
external growth
Vertical takeover
Conglomerate
takeover
Synergy
questions
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1.4 Business objectives Pages 49–62
1.4.1 Business objectives in The nature and importance of This can largely be covered by means of a Young Enterprise Examples of mission Aim
the private sector and business objectives at corporate, activity whereby students start up their own business statements
public sector departmental and individual levels venture. Discussion of objectives can be an important Objectives
Google case study
feature in developing the business idea.
Departmental
objective
Individual objective
Relationship between mission Students can also develop ideas for a business with which The Red Street Hospital case
statement, objectives, strategy and they are familiar, for example their school, sports club, local study Strategy
tactics shop or a well-known manufacturer (e.g. cosmetics, car,
computer etc.). Information on suitable
Tactics
businesses, e.g. local car
It is important to distinguish between short term and long manufacturer, football team,
term; strategic and tactical; corporate, departmental and Corporate social
computer manufacturer,
individual. responsibility (CSR)
cosmetics company, local shop
It is also important to develop the idea that the objectives of Business pages of newspapers Mission statement
different “stakeholders” may conflict and objectives may vary showing examples of
over time. businesses going through a Vision statement
period of corporate change.
Bized (www.bized.co.uk) has
useful material on business
objectives and strategies
Corporate social responsibility (CSR) Study examples of corporate responsibility statements by Examples of corporate
as a business objective major businesses. responsibility statements from
the textbook the Internet, e.g.
Tata Steel

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1.4.2 Objectives and The different stages of business This section can be developed through students’ own Target
business decisions decision-making and the role of decision-making and also through decisions that need to be
objectives in the stages of business made by the school/college.
decision-making
How objectives might change These can then be developed via the decision model into
over time strategies and tactics.
Translation of objectives into targets The school/college situation can be developed to show how
and budgets the strategic decisions can translate into targets for teachers
and students.
The communication of objectives and The Red Street Hospital case study can be used to develop The Red Street Hospital
their likely impact on the workforce ideas. case study
How ethics may influence business
objectives and activities There should be discussion of the meaning of ethics and Examples of ethical
the difference between ethics and the law – ethical values businesses, e.g.
are likely to differ between countries and cultures. www.smile.co.uk,
www.traidcraft.co.uk
and local examples
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1.5 Stakeholders in Pages 63–72
business
1.5.1 Business stakeholders Individuals or groups interested in the Topics 1.5.1 and 1.5.2 should be taught together, and Pre-prepared briefing sheets Accountability
activities of business, e.g.: could be taught in conjunction with a Young Enterprise for each stakeholder group for
activity. a major local business decision
•• Owners/shareholders
•• Managers Alternatively you could choose a major local business Airports in India case study
•• Employees development and get the class to discuss the issues
•• Customers involved. Some students could represent the owners, other
•• Suppliers students could represent the community, others could be
•• Lenders customers and so on. The major decision could then be
•• Government developed from differing perspectives to illustrate different
•• Local community impacts.
Roles, rights and responsibilities of
stakeholders
1.5.2 The importance Impact of business decisions/actions Stakeholders
and influence of on stakeholders, and their reactions
stakeholders on
How and why a business needs to be
business activities
accountable to its stakeholders
How conflict might arise from
stakeholders having different aims
How changing business objectives
might affect stakeholders
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2. PEOPLE IN ORGANISATIONS

2.1 Management and Pages 74–85
leadership
2.1.1 Management and The functions of management Discuss the various levels of management within the school/ Manager
managers including Mintzberg’s roles of college, outlining the various roles and responsibilities. If
management students have part-time work they might be able to include
their experience of managers in the discussion. You might
The functions, roles and styles of
also be able to discuss effective management.
management
2.1.2 Leadership The purpose of leadership Start with a definition of a leader. Then highlight the various www.bized.co.uk has some Leader
leadership roles within a business. useful material on leadership
Leadership roles in business (directors,
Leadership
managers, supervisors, worker Discuss the importance of leadership at various levels within All change for Luigi and Anton
representatives) an organisation. Again your school or college might be a case study
suitable example. Use the case study as a starting point for
Qualities of a good leader
discussion.
2.1.3 Choice of leadership Leadership styles: autocratic, Small groups can prepare a short presentation on the Consider inviting a speaker Autocratic
style democratic and laissez-faire advantages and disadvantages of the different leadership from a local business (make leadership
styles. Each group preparing one element of the total sure they are fully aware of the
McGregor’s leadership styles
content. Information can be combined later to form a class syllabus requirements and the Democratic
handout. level being studied) leadership
Discuss examples (in school or college or in local businesses)
Laissez-faire
of different styles and their appropriateness in various
leadership
situations.
2.1.4 Emotional intelligence/ Goleman’s four competencies of Short presentation giving the key points of Goleman’s www.businessballs.com has Emotional
Emotional quotient emotional intelligence: self-awareness, EI theory. useful information on this topic intelligence
(EQ) social awareness, self-management
Discussion of different circumstances in which EI would
and social skills
improve the work situation – how and why.
Progress questions/
Reinforcement exam-style questions
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2.2 Motivation Pages 86–100
2.2.1 Motivation as a tool The need to motivate employees to This topic lends itself to discussion-based classroom www.bized.co.uk Motivation
of management and achieve the objectives of a business activities and the use of various websites.
leadership
Reinforcement Progress questions/exam-style questions
2.2.2 Human needs A simple explanation of human needs This topic can be dealt with by providing students Human needs
with a list of human needs either on a handout or on
How human needs may or may not be
a PowerPoint presentation and then including them in
satisfied at work
discussions about motivation.
2.2.3 Motivation theories The ideas of the main content theorists Discuss the ideas of the main theorists and their Bags By Design case study Quality circle
(Maslow, Taylor, Mayo, Herzberg) and case studies to demonstrate their relevance in a
www.bized.co.uk
process theorists (McClelland, Vroom) business situation. Esteem needs
www.tutor2u.net also has useful
information and lots of case studies Self-actualisation

2.2.4 Motivation methods The theories in practical situations Use a wide range of resources to illustrate how the Local or national newspapers Piece rate
in practice; financial theories discussed can be put into practice.
Different payment methods (time www.bized.co.uk/learn/business/hrm/
motivators, non- Financial rewards
based, salary, piece rates, commission, motivation/pay/student.htm and pay
financial motivators
bonuses, profit sharing, performance- worksheet. It is UK based but has some
Non-financial
related pay) very useful content to get students to
rewards
think about motivating factors.
Different types of non-financial
motivators (training, induction, http://businesscasestudies.co.uk/tesco. Cell production
opportunities for promotion, This retail context is likely to be familiar to
development, status, job redesign, students in every country. Fringe benefit
team working, empowerment,
P & A Textiles case study
participation, fringe benefits/perks)
The ways in which employees can
participate in the management and
control of business activity Use local examples of employee participation www.slideshare.net/chandanrajbiotech/
if possible. workers-participation-in-management-
10493033?qid=51413707-bdca-43c8-
bf0d-f8700edc96b7&v=default&b=&from_
search=2. This is about employee
participation in India and might not apply in
the same form in other countries but most
of the slides are useful.
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2.3a Human resource Pages 101–121
management (HRM)
2.3.1 Purpose and roles The role of HRM in meeting Short input session to introduce the topic. Job advertisements in local and/or national Human resource
of HRM organisation objectives: Relate to businesses – local, national or newspapers, in journals or on the Internet. management
recruitment, selection, training, international – that are undertaking these activities. These can be used to discuss what instigated
induction, advice, guidance and the advertisement, e.g. workforce planning, and
workforce planning also any training that might be needed
2.3.2 Recruitment and Labour turnover, methods of Discuss a range of labour turnover figures. Labour turnover
selection recruitment and selection
Using a variety of job vacancies discuss the
Recruitment
appropriateness of different methods of recruitment
and selection.
Workforce
It is important that students are able to planning
distinguish between the two activities: recruitment
and selection. Redeployment
Reinforcement Progress questions/exam-style questions Skills audit

2.3.3 Job descriptions, The purposes of job descriptions, Discuss job descriptions, person specifications and Job advertisements from newspapers or Person
person specifications, person specifications and job job advertisements. websites specification
job advertisements advertisements Activities page 106
Class role play giving out various jobs to be filled.
Job description
Small groups can produce a job advertisement and job
description and person specification.
2.3.4 Employment The main features of a contract This can be country specific but students must be Helenex expansion case study Unfair dismissal
contracts of employment aware of the key features that can be required.
Breach of
contract
2.3.5 Redundancy and The difference between A crucial difference that must be explained. Jobs to go at Brevia Plc case study Redundancy
dismissal redundancy and dismissal
2.3.6 Staff morale and The relationship between HRM, This links naturally to motivation. Morale
welfare staff morale and welfare in a Explore the equality and diversity policies of any company
business including the concept of that students will be familiar with, e.g. McDonald’s, Welfare
work–life balance Tesco, Shell, BP etc., or any local examples.
Work–life balance
Policies for diversity and equality Discuss the benefits of equality and diversity in a
business. Link this to employment legislation. Progress questions/exam-style questions
Reinforcement
2.3.7 Staff training The purpose of staff development/ Look at a dynamic business, e.g. one that has changed Induction training
training as a means of securing its production methods or has introduced more IT. Use
required skills and motivating the the Internet to find businesses that have changed their
workforce direction or methods of production. Newspapers might
also be a useful source of such information.
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3. MARKETING

3.1 What is marketing? Pages 123–139
3.1.1 Role of marketing Marketing objectives and the link Get students, in groups, to discuss the meaning of Marketing
and its relationship between marketing objectives marketing and what marketing activities might include.
with other business and corporate objectives This will enable you to introduce the topic of marketing Market research
activities drawing on students’ own experience and give them
a way into what is a large section of the syllabus. Marketing mix
Use material from AS Level Chapter 1.4 to review
Advertising
understanding of corporate objectives. Include
discussion of organisations students may be
Promotion
involved with.
Investigate marking objectives used by businesses Company annual reports, progress questions, Corporate
and relate to corporate objectives. IKEA case study objectives
Reinforcement Progress questions/exam-style questions Marketing

objectives
3.1.2 Supply and demand Factors influencing the supply Discuss markets and how they operate using local Market
and demand for the products/ examples including selling off produce cheaply at the
services of a business end of the day. Supply
Supply: Ask students to consider what they might
Supply curve
do if knotted scarves sold for a $million and then
what would happen to the price if everyone did this.
Demand
Extend discussion to other factors influencing supply
with examples from student knowledge and draw
Demand curve
supply curve. Students to supply possible reasons for
leftward and rightward movement of supply curve.
Normal product
Demand: Ask students how much of a product they
would buy at different prices: e.g. how many shirts Inferior product
if they were $1, $3, $5, $10 etc. then compile an
aggregate demand curve. Extend discussion to other
factors influencing demand with examples drawn
from student knowledge and media articles. Discuss
income and the effect on demand of changes in
income. Students to supply possible reasons for
De Beers Diamonds case study
leftward and rightward movement of demand curve.
Discuss the diagrams to show interaction of supply www.bized.co.uk, www.tutor2u.net and
and demand to give a market price. www.econedlink.org have interactive exercises
Interactions between price,
supply and demand Consider the effect of changes in supply and/or and notes for students
Reinforcement demand on market price. Progress questions/exam-style questions
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3.1.3 Features of markets: How markets may differ: Globalisation
location, size, share,
•• consumer/producer markets List a range of products and classify into those
competitors, growth Product orientated
aimed at consumers or producers.
•• national, regional and business
international markets Discussion to identify students’ perception of local,
regional identities and international links/relationships Customer-
based on interviews with family and friends. Ask them orientated
to provide examples of products associated with each. business
Difference between product and Ask students to find and classify a number of Market size
customer (market) orientation products into each of these categories, with reasons.
Problems associated with Research into a number of markets, with sales www.tes.co.uk (free registration) has worksheet Market growth
measuring market share and figures and calculations of market growth over time and calculations
market growth and market shares of participating businesses to Market share
draw out problems.
Implications of changes in market Using data from previous research consider what the
share and growth changes might mean for the businesses concerned.
Use company annual reports and accounts and
their commentaries to enhance this and provide
examples. Make sure you relate changes in market
growth and market share to competition, and/or
Reinforcement where a product is in its life. Progress questions/exam-style questions
3.1.4 Industrial and Classification of products Discuss difference between these and generate lists www.tutor2u.net contains useful notes Industrial markets
consumer markets of products assigned to each category.
Consumer market
How marketing might differ for As a class, use the lists to add target markets
different types of goods and and indicate how these may be marketed to
services e.g. promotion methods, distribution methods.
Reinforcement Focus on student experience. Progress questions/exam-style questions
3.1.5 Niche versus mass Reasons for, and benefits/ Research into a range of products to identify mass and www.allegoriedesign.com is a useful resource Niche market
marketing limitations of mass marketing and niche markets, together with factors that identify these.
Opportunity for speakers from business Mass marketing
niche marketing
Groups to prepare a presentation of examples of organisations or visits
products that have succeeded and those that have Target market
failed and discuss reasons for the different outcomes.
Economies of
Ask students to design a product for a mass market scale
and a niche market and explain the reasons for their
Reinforcement choices, together with difficulties they may face. Progress questions/exam-style questions Barriers to entry
Market segmentation Benefits and limitations of market Group research and presentation with examples to 2 useful websites include: www.tutor2u.net Inventory
segmentation illustrate followed by formal or informal debate on and www.greatideasforteachingmarketing.com/
benefits and limitations. tag/segmentation Market
Methods of market segmentation
segmentation
including geographic, Research into range of products with target segment Opportunity for speakers from business
demographic and psychographic for each. Discussion on success or otherwise and organisations or visits
methods used to reach the target segment.
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3.2 Market Research Pages 140–156
3.2.1 Primary and Purpose of market research This sets the scene for the detailed consideration Opportunities for work outside class, including Market research
secondary research in determining customer of research methods that follow. It is important to visits and visiting speakers
characteristics/consumer stress the need to identify objectives for market Quantitative
profiles, wants and needs research before choosing methods that will achieve information
the objectives.
Qualitative
Discussion of possible market research objectives for Newspapers, magazines information
various business examples.
Customer/
Reinforcement Progress questions/exam-style questions consumer profile
3.2.2 Methods of Distinction between primary (field) Students prepare presentation on the differences Primary research
information gathering and secondary desk research between primary and secondary research.
and the main features of each Secondary
research
Methods of primary research Outline of methods. www.nationalschoolspartnership.com has
and their advantages and activity on objectives and methods Market research
In groups students identify an objective and design
disadvantages, including focus some primary research, then carry it out and present http://businesscasestudies.co.uk has notes and agency
groups and surveys the results, giving reasons for their choice of method case study examples
Survey
by considering the advantages and disadvantages of
each method. Students present with a scenario that Focus group
requires primary research to be carried out. This could
be linked to the study of sampling methods. Interview
Existing questionnaires could be analysed for their
Response rate
effectiveness in achieving a result that reflects the
objective.
It is important to emphasise that the choice of
method is important but that there may be no one
right way to conduct primary research.
Factors such as cost, availability of resources and
time may be important.
Sources of secondary information Internet searches for specific information

including printed, paid for and
web-based sources of information
Reinforcement
Progress questions/exam-style questions
3.2.3 Sampling methods Random, stratified and quota It is important to draw the distinction between Sample
sampling; the appropriateness of methods of gathering information and methods of
each to given situations sampling so that the results reflect the views of the Population
population.
Random sample
Limitations of sampling Students can design their own sampling method in www.bized.co.uk has sample assignment
the market research assignment set for gathering www.tutor2u.net articles Stratified sample
information, and then critique each other’s methods
(peer assessment). Quota sample
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Bias
3.2.4 Market research The reliability of data collection Peer assessment of methods used in assignments. Mean
results Students produce visual display of possible sources
of bias or unreliability. www.bized.co.uk has activity and sample Median
assignment
Students apply methods of analysis to information Mode
Analysis of results obtained from gathered in the research assignment or to examples
market research of market research. Range
Interquartile range
Interpretation of information Although candidates are not required to draw bar
charts, pie charts etc. it is a useful exercise to present
the information gathered in the research assignment
using one or more of these methods, with reasons for
the choice. The meaning of the results can then be
drawn out during the presentation.
Examples of information presented in various ways
can be interpreted and then the interpretations
compared.

3.2.5 Cost-effectiveness Cost-effectiveness of market This is a difficult topic because the cost-effectiveness Outside speaker from a research agency or
research in given situations depends on what answers are generated and how business that has undertaken research
these might translate into, e.g. savings or higher
sales. Students should have an awareness that there
is a cost to research that should lead to some kind
of payback that can be measured and that effective
planning is the key.
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3.3a The marketing Pages 157–171
mix: elements and
products
3.3.1 The elements of The 4 Ps: Product, Price, It is important to emphasise the integrated nature of www.marketingteacher.com has many case Marketing
the marketing mix Promotion, Place (distribution the 4 Ps in a successful marketing mix. studies on the marketing mix
(the 4 Ps) channels) Marketing mix
Students can gather information on the marketing Magazines
mix of a range of different products to compare and
Internet searches Target market
contrast. Focus on students’ experience of the way
products are marketed to illustrate the concepts in Interview with college/school marketing staff Product
the syllabus. Groups can analyse how the school/
college is marketed as an example.
Price
Promotion
Place
3.3.2 The role of the The relationship between the Video and discussion. www.youtube.com/watch?v=F3d_91WfLYA Customer
customer (the 4 Cs) customer and the business (the solution
The 4 Cs are the 4 Ps looked at from the customer’s Magazines
4 Cs): Customer solution, Cost
viewpoint so the products considered during learning
to customer, Communication Internet Cost to customer
the marketing mix can be assessed using the 4 Cs.
with customer, Convenience to
This will also show how the 4 Cs relate to the 4 Ps. Previous class generated material
customer Communication
Students create a table showing this.
with customer
Convenience to
Ways in which customer relations In groups students identify negative experiences of Customer service policies customer
can be improved customer relations and suggest how these might
Visit from customer service manager
have been improved. Examples of customer service
policies can be researched.
Students write a guide to good customer relations
for a retail or a service business.
How the 4 Ps relate to the 4 Cs The products considered during learning the Review of initial exercise
marketing mix can be assessed using the 4 Cs.
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3.3.3 Product Goods, services A product may be a good or a service or a Tangible
combination of both. List products and classify into attributes
goods, services or a combination.
Recognising that products have Students list two products each and their various Intangible
a combination of tangible and attributes with a brief indication of how these might attributes
intangible attributes relate to the target market. Class discussion.
Product
The importance of product Select a product. Students prepare a presentation http://businesscasestudies.co.uk has examples development
development for the directors on why it is so important to continue of product development
developing the product. Product
Product differentiation and USP Groups select a type of product, e.g. sports shoes. differentiation
(unique selling point) They list a number of suppliers of this product and
assess the USPs they have. Are they really offering Unique selling
something different? point (USP)
Groups produce a table showing the USPs of a Product life cycle

number of selected products.
Reinforcement Progress quesitons/exam-style questions Extension
strategy
3.3.4 Product life cycle How product life cycle stage Teacher led explanation, making sure that students http://businesscasestudies.co.uk has examples
influences marketing activities understand that the product life cycle explains of product life cycle
Portfolio analysis
but cannot give definitive answers to marketing
Outside speaker or business visit
questions, e.g. a product in maturity may need a
great deal of advertising or very little – it all depends
on the market situation.
Groups research a number of different products and
place them on a product life cycle graph. Relate the
position to how students perceive the product is
being marketed and analyse this.
Decisions about extension Students produce a table showing possible benefits www.tutor2u.net and www.bized.co.uk have
strategies and limitations of carrying out an extension strategy. case studies and notes
Product portfolio analysis as Students prepare a briefing paper for a new
a way of achieving marketing management trainee on the purpose of portfolio
objectives analysis.
Reinforcement Progress quesitons/exam-style questions.
18
3.3b The marketing mix: Pages 172–189
price, promotion
and place
3.3.5 Types of pricing Use and value of alternative pricing Set the scene by considering the factors affecting There are many websites with Pricing strategy
strategies strategies including competitive, pricing decision – costs, customers’ perceptions and information, case studies and
penetration, skimming, price market factors (the competition). activities, e.g. http://dyson.cornell. Differentiated
discrimination, cost-based pricing edu/outreach/extensionpdf/2013/ product
Students can list products they buy/might buy and the
Cornell-Dyson-eb1307ii.pdf or
reasons why they act in relation to price followed by
http://businesscasestudies.co.uk Skimming price
discussion.
Products of a similar type can be researched and the Penetration
reasons for possible price differences between different pricing
Company annual reports
suppliers explored.
Competitive
Groups research examples of products being priced pricing
Opportunity for an outside speaker
using each of the different strategies.
Pricing tactics (not mentioned Students can write a case study for a product with Price
www.bized.co.uk has case studies, discrimination
specifically in the syllabus but fall questions that ask the reader to recommend a suitable
activities and notes
within pricing strategies) pricing strategy with reasons.
Full cost pricing
Students find examples of each of the pricing tactics
and suggest reasons for their use. Marginal/variable
or contribution
pricing
Loss leaders
Psychological
pricing
Reinforcement Progress questions/exam-style Bait and hook
questions pricing
3.3.6 Price elasticity of Define, calculate and interpret price It is important to make sure students understand that Price elasticity of
demand elasticity of demand (PED) and PED is more than a price rise leading to a demand fall. demand
suitable prices www.youtube.com/watch?v=4oj_
Video.
lnj6pXA
Work through example in book then students can Worked example in AS Level
prepare examples for calculating PED, and associated Chapter 3.3b, pages 178–179
revenue changes and test each other.
Usefulness of price elasticity of Class discussion of the usefulness of PED, drawing up www.tes.co.uk has worksheets,
demand when making pricing points to illustrate its usefulness and any factors that notes and activities
decisions may impact upon this.
questions
19
3.3.7 Promotion methods Above-the-line and below-the-line It is important at the start to make sure students Above-the-line
promotion understand that promotion is not just advertising; there promotion
are a number of promotional methods.
Students collect advertisements (above the line) and www.greatideasforteaching Below-the-line
analyse them to compare what students think the marketing.com and search for promotion
adverts are trying to achieve and how they seek to do ‘advertising’. The two related
this. activities are ‘Evaluating a billboard Direct selling
ad’ and ‘Ethical advertising? Tommy
Hilfiger brand launch’. Point-of-sale
http://businesscasestudies.co.uk
Research examples of below-the-line promotion and has examples and notes. Search Sponsorship
suggest reasons for their use. using the word ‘promotion’.
Public relations
The role of packaging in promotion www.bbc.co.uk learning zone has a (PR)
Students reseach a range of products and their video on food packaging
packaging, including the information given on the Branding
packaging, and suggest reasons for any differences.
Branding as part of product/promotion www.loc.gov has a range of US
Research a range of branded products and assess how activity suggestions that are easily
the businesses achieved their brand recognition. adapted
Students can discuss how important branding is to them

Reinforcement in their purchasing decisions and why they feel the way Progress questions/exam-style
they do. questions
3.3.8 Channels of Choosing between alternative types of Students list a range of products and how they are www.greatideasforteaching Direct distribution
distribution channel of distribution distributed. Are there any patterns? Are similar products marketing.com/selecting channel
distributed in the same way? Suggest reasons for the -distribution-channels
choices of distribution channel. Indirect distribution
channel
questions
3.3.9 Using the Internet for Online advertising, catalogues, Students prepare a presentation that explains the way Online adverts, examples of popups Dynamic pricing
the 4 Ps/4 Cs sales, dynamic pricing, distribution the Internet is used for marketing with a summary that on social media, links to websites
(download of digital products), social relates the methods to the 4 Ps/4 Cs. from social media, marketing emails Social media
media, viral marketing, e-commerce
Viral marketing
questions
3.3.10 Consistency in the The need for the marketing mix to The need for an integrated marketing mix with all http://businesscasestudies.co.uk Marketing mix
marketing mix be consistent with the business, the elements supporting each other must be stressed. has many examples with associated
product type and the market questions for students
Students’ research into the marketing mix of a range Annual reports, websites
of products can illustrate the different ways businesses
Outside speaker
integrate the elements of the marketing mix they use.
Ask students to prepare a marketing mix for a class www.tutor2u.net
presentation.
Reinforcement Review using quizzes in www.tutor2u.net. Progress questions/exam-style
20
questions
4. OPERATIONS AND PROJECT MANAGEMENT

4.1 The nature of Pages 191–202
operations
4.1.1 Inputs, outputs and Operations encompasses products Repeat that Business, and here operations, deals with all Operations
the transformation and services products, whether they are goods or services.
process Land
Process: from idea/need to final Introduce the transformation process.
product/service
In groups students outline three key decisions that Labour
businesses must take as they move a product from an idea
or a need to final production/supply. The first group reads Capital
out their points. All groups who have the same points cross
these off their list. The second group then delivers points not Intellectual capital
crossed out, and so on until all groups have spoken. Then
see which group has the most points unique to them. Capital intensive
Practical activity classifying factors of production in making www.learnnc.org/lp/ Labour intensive

Resources: land, labour, capital a sweet. pages/3760
(including intellectual capital)
Give the class a number of products/services. Students
estimate the percentage contribution to production of land,
labour and capital for each. The results can be discussed
to draw out conclusions about the way different industries/
products organise resources for production.
Draw out the point that the factors of production are
matched by financial flows of money.

questions
21
4.1.2 Effectiveness, Difference between effectiveness and Use the slides to introduce the topic. www.slideshare.net/ Effectiveness
efficiency and efficiency purvaverma/efficiency-versus-
Students can make up examples of businesses where
productivity effectiveness Efficiency
efficiency does not result in effectiveness and share these
examples. They can also explain why both effectiveness and
Productivity
efficiency are important.
Productivity: measuring efficiency Students can carry out a practical exercise to measure http://education-portal.com/
labour productivity. For example, prepare a paper “sandwich” has resources on productivity
by cutting out paper slices of bread 10 cm × 5 cm, preparing
a filling by cutting two pieces of paper 8 cm × 4 cm, placing
them in the middle and cutting in half. Some students must
work alone on this task, others in groups of 2–4. Start by
only allowing each cut to be through one piece of paper and
allow only one pair of scissors per group. After five minutes
determine the efficiency of production of the “sandwiches”
by calculating labour productivity. More capital can be
added (extra scissors) to see the effect of adding capital
on productivity/efficiency. Discuss other possible ways of
increasing productivity in this scenario.
questions
4.1.3 Value added How ‘value added’ is linked to Make the point that added value occurs in two contexts: These sites have activities and Value added
marketing, the operations process and firstly the transformation process that results in a higher notes:
operations decisions value at each stage (operations) and secondly the consumer
perception of a product that may result in a purchase
•• www.tutor2u.net
(marketing). Operations is about meeting customer
•• www.bized.co.uk
expectations, as is marketing, especially promotion.
Illustrate this by getting students to research examples of
products and services and how value is added in both of
these ways. You could invite an outside speaker to visit.
Review with the video and worksheet from www.tutor2u.net. www.tutor2u.net/blog/
index.php/business-studies/
comments/video-case-study-
just-jennys-ice-cream-start-up
questions
4.1.4 Capital versus labour Benefits and limitations of capital- and Groups research a range of businesses and assess how Capital intensive
intensity labour-intensive processes capital- or labour-intensive they are.
Labour intensive
Groups present findings to the class with possible reasons
for any differences, drawing on an understanding of the
benefits and limitations of the two approaches.
questions
22
4.2 Operations planning Pages 203–223
and 226–228
4.2.1 Operations decisions The influence of marketing, availability Class discussion/brainstorm/mindmap to prepare spider Computer-aided
of resources and technology (e.g. CAD diagrams or similar to illustrate how marketing, resources design (CAD)
and CAM) on operations decisions and technology might affect operations decisions.
Computer-aided
Groups/individuals prepare presentations to explain what
manufacture
CAD/CAM is, one aimed at explaining this to the workforce
(CAM)
and one aimed at decision-makers who are considering
introducing CAD/CAM. The second will discuss how it might
or might not lead to greater efficiency and profits.
questions
4.2.2 Flexibility and The need for flexibility with regard to Students research businesses that have flexibility as a key Flexibility
innovation volume, delivery time and specification selling point. Prepare report explaining why. Include the
possible consequences of inflexibility. Specification
Process innovation – changing current In groups students plan an investigation into your school/
Volume flexibility
processes or adopting new ways of college. Prepare a report recommending how techniques of
producing products (eg. automation/ process innovation may be beneficial. Include the possible
Just in time
robotics) or delivering services (e.g. results of the innovations.
production
improving workflow)
Process
Reinforcement Progress questions/exam-style innovation
questions
Automation
4.2.3 Operations methods: Differences between methods – Students prepare a table or presentation to show a range of Handout and slides from Job production
job, batch, flow, mass advantages and disadvantages of products with a suitable production method for each, with www.tutor2u.net and
customisation each method brief reasons attached. They share these with the class. www.bized.co.uk have Batch production
presentations, handout, videos
and activities Flow production
Problems of changing from one Students consider some typical businesses using each Visitor from business
Mass
method to another method, e.g. a wedding-cake maker (job), a sweet maker customisation
(batch), a car manufacturer (flow) and a computer manufacturer
(mass customisation). Draw up a chart indicating the difficulties
each might face if they changed to another method. Use these
headings to help: financial, human resource, marketing.

questions
23
4.2.4 Location Factors that determine (a) location Students discuss and prepare a spider diagram or similar to Business education websites Footloose
and (b) relocation: geographic, show factors influencing location with a real-life example to have material and activities on
demographic, legal, political, illustrate each drawn from e.g. local businesses. this topic Infrastructure
resources, infrastructure, marketing
Students find a business that has relocated and analyse it.
Industrial inertia
If your school/college has been located in the same place
for a significant time students prepare a presentation/report Outsourcing
showing why it has stayed in that place.
Differences between local, regional, Students find a range of businesses that operate locally, Outside speaker Offshoring
national and international location regionally and nationally. Prepare a presentation that will
decisions show the possible reasons for the location of the businesses.
Repeat for a business with an international location.
Enterprise location case study http://businesscasestudies.co.uk
enterprise location case study

questions
4.2.5 Scale of operation Factors that influence the scale of Students draw up a presentation or a spider diagram that Many business education Average cost
a business shows the causes of economies of scale, making sure that sites have activities and
internal and external economies are shown and there is a notes on this topic, including Economies of
Causes and examples of internal/
note to explain the shape of the graph showing economies www.teachmebusiness.co.uk scale
external economies/diseconomies of
and diseconomies of scale.
scale and links between economies/
Minimum efficient
diseconomies of scale and unit costs In groups write a case study to show how a business that
scale
has achieved low average costs finds that its average costs
are rising.
Diseconomies of
scale
questions Variable costs
4.2 Operations planning Pages 223–228
(A Level)
4.2.1 Enterprise resource Main features of an ERP programme This topic is for A Level only and is a more focused and Enterprise
planning (ERP) specialist operations technique. resource planning
How ERP can improve a business’
efficiency in relation to: inventory Introduction identifying key components of ERP.
Efficiency
control, costing and pricing, capacity
Activity based on case examples from websites – students
utilisation, responses to change
discuss and analyse these to illustrate the benefits and costs Inventory
management information
it has brought.
Capacity utilisation
Students write a brief outline report for an operations www.iqms.com/company/
manager that might convince his business to adopt ERP. erp_success.html
www.top10erp.org/Case-
Study-Library.aspx

questions
24
4.3 Inventory Pages 229–237
management
4.3.1 Purpose, costs and Purpose of inventory within a business Introduction to include the role of each type of inventory. Inventory
benefits of inventory (raw materials, work in progress, Illustrate by eliciting examples from students
finished products)
Costs and benefits of holding Students hold a formal/informal debate on whether a Pre-prepared guidelines for
inventory business should hold a lot of inventory or a small amount. debate
Illustrate with examples to show how the debating points
may apply to an actual business.

questions
4.3.2 Managing inventory Buffer inventory, reorder level and lead These concepts are used in inventory control charts and are Buffer inventory
time best introduced by the teacher as a lead up to interpreting
the charts. Reorder level
Interpretation of simple inventory Teacher leads students through the example in the book Progress questions 3
Lead time
control charts before students tackle Progress question 3.
Students find other examples of inventory control charts www.mcdonalds.co.uk/ Inventory control
and compare and analyse them. Students work through the content/dam/McDonaldsUK/ chart
McDonald’s case study activity. People/Schools-and-students/
mcd_stock_control.pdf Just-in-time
Inventory control methods including Teacher-led discussion of inventory control methods in inventory control
buffer inventory and Just-in-time (JIT) relation to the inventory control chart and their effect on
the variables in the chart, showing how the methods might
reduce costs for a business. Consider lowering buffer
inventory, lowering lead time, reducing order quantity
and reorder level, but remember to consider what these
advantages may depend on.
questions
25
5. FINANCE AND ACCOUNTING (AS LEVEL)

5.1 The need for Pages 239–254
business finance
5.1.1 Start-up capital, Why businesses need finance to start Ask students to imagine a small business that they could Advertisements of local Start-up capital
capital for expansion up and to grow base ideas on, e.g. a chicken and rice stall/shop. What businesses to give students
would the business need money for when first set up? some ideas for business
Why the different needs for finance
What might finance be needed for if the business wants to start-ups
might mean that different sources are
grow, i.e. open more shops? Where could the business get
appropriate
finance from?
questions
5.1.2 Working capital The meaning and significance of Explain what is meant by working capital and explain the Working capital
working capital as a source of finance working capital cycle.
Working capital
The significance of the distinction A list of expenditure that students can identify as either Pre-prepared list of business
cycle
between revenue expenditure and revenue or capital expenditure. Identify different sources of expenditure items
capital expenditure finance for each with reasons.
Liquid assets
Short-term
liabilities
Illiquid
Revenue
expenditure
Capital
Reinforcement Progress questions/exam-style expenditure
questions
26
5.2 Sources of finance Pages 239–254
5.2.1 Legal structure and The relationship between the legal Legal structure is taught in AS Level Chapter 1.2. Remind www.bized.co.uk/learn/business/ Start-up capital
sources of finance structure of a business and its sources students of the different structures and discuss how accounting/sources/index.htm
of finance structure impacts on the sources of finance available. has information on sources of
finance
questions
5.2.2 Short-term and long- The distinction between short- and This distinction should also be linked to what the finance is Information from banks relating Short-term
term finance long-term sources of finance needed for. to bank loans and overdrafts finance
Long-term finance
questions
5.2.3 Internal sources The internal sources of finance: The advantages and disadvantages of each source should Retained
retained earnings, sale of unwanted be explored. earnings
assets, sale and leaseback of non-
Use published accounts to provide discussion of the value
current assets, working capital Working capital
of retained earnings and working capital. Perhaps also use
them for discussing the value of non-current assets and
what type of assets a business might have that can be sold
and/or sold and leased back.
questions
5.2.4 External sources The external sources of finance: share Students should be aware of the appropriateness of each Case study Stage production Ltd Stock exchange
capital, new partners, venture capital, source for a given situation.
overdrafts, leasing, hire purchase, Grant
The Internet can be a good source of information for this
bank loans, mortgages, debentures,
topic. The sources are too many to mention, but some good
micro-finance, crowd funding and
examples are provided.
government grants
questions
5.2.5 Factors influencing the The factors influencing the choice of Outline the factors most likely to affect the choice of sources
sources of finance sources of finance in a given situation: of finance.
cost, flexibility, the need to retain control,
the use to which it is put, level of existing
debt (gearing is not required at AS Level)
questions
5.2.6 Selecting the source The appropriateness of each possible Use a variety of business situations and legal structures to
of finance source in a given situation illustrate this.
Information on sources of finance, e.g. bank information,
news articles about a business changing to a public limited
company, information on government grants etc. is easily
available on the Internet.
questions
27
5.3 Costs Pages 255–266
and page 273
5.3.1 Cost information The need for accurate cost data Use the case study as a starting point for SLD Plastics case study Cash flow
discussion about the need for businesses forecast
Types of costs: fixed, variable, marginal; direct to keep accurate cost information. See www.tutor2u.net for useful information
and indirect on costs plus the presentation at
Fixed cost
Ask students to prepare notes on the www.slideshare.net (do not include the
Problems of trying to allocate costs in given different types of costs using the textbook or slides on all the cost curves at this level)
situations Variable costs
any other appropriate source material.
It can also be useful to discuss typical Marginal cost
household costs or the costs of running
a school. Direct costs
Indirect costs
Semi-variable
Reinforcement Progress questions/exam-style questions cost
5.3.2 Uses of cost Cost information used for decision-making This can be developed from the tutor2u or Bribeck Medical Appliances (BMA) case Total costs
information purposes, e.g. average, marginal and total costs slideshare presentation used previously. study might provoke further discussion
Average costs
How costs can be used for pricing decisions Give a few examples of products and
their fixed and variable costs; discuss the
How costs can be used to monitor and improve Cost centre
possible price to be charged. This can
business performance, including using cost be linked with AS Level Chapter 3.3 The
information to calculate profits Profit centre
marketing mix.
5.3.3 Break-even analysis Determining the minimum level of production Use tutor2u slide presentation on www.tutor2u.net Contribution
needed to break even or the profit made break-even analysis.
Sports Alive case study
Margin of safety
Define, calculate and interpret the margin of safety Use various numerical examples to make
sure that students are confident calculating
Uses and limitations of break-even analysis break even using a variety of methods.
5.3 Costs (A Level) Pages 266–273
5.3.1 Approaches Differences between full and contribution costing Give a short presentation on the www.tutor2u.net for presentations on Full costing
to costing; full, differences between full and contribution absorption and contribution costing
Uses and limitations of the full costing method
contribution costing. Include advantages and Contribution
The nature of the techniques of contribution costing disadvantages of each method. costing
The difference between contribution and profit
Limitations of contribution costing Use some practical numerical examples
showing how contribution does not become
profit until all fixed costs have been covered.
Situations in which contribution costing would be Descriptive and numerical approaches
and would not be used should both be used here.
28
5.3.2 Solutions to costing Solution of numerical problems involving costing Discuss and calculate the implications of Contribution
problems methods some given situations. costing
Using contribution costing to help with “accept/
reject” orders decisions
5.4 Accounting Pages 274–287
fundamentals
5.4.1 Income statement Contents of an income statement including: cost Use financial documents from any business Any businesses financial statements Income
of sales, gross profit, operating profit, profit for the to identify these elements. statement
www.bized.co.uk/learn/business/
year, retained earnings
accounting/busaccounts/index.htm
Gross profit
Operating profit
(profit for the
year)
Cost of sales
Trading account
Retained
Reinforcement Progress questions/exam-style questions earnings
5.4.2 Statement of financial Contents of a statement of financial position Make a clear distinction between the Any business’s financial statements Statement
position including: non-current assets, current assets, contents of an income statement and the of financial
Try the activity on page 277 in AS Level
current liabilities, working capital, net assets, contents of a statement of financial position. position
Chapter 5.4 Accounting fundamentals
non-current liabilities, reserves and equity
Students need to be aware of the different
Assets
time scale of each document. An income
statement is for a time period (usually one
Liabilities
year) whereas a statement of financial
position is correct on one specific day.
Current assets
Non-current
assets
Current liability
Non-current
liability
Progress questions/exam-style questions Reserves

Reinforcement
29
5.4.3 Liquidity ratios Acid test ratio, current ratio Use the financial documents from earlier www.bized.co.uk/compfact/ratios/ Liquidity ratios
lessons to calculate the acid test ratio index.htm
and the current ratio. Note any changes Acid test ratio
The financial records of any business
between years. Get students to consider
the cause of the changes. Current ratio
Change some figures by 5 per cent or
10 per cent and get students to recalculate
the ratios.
5.4.4 Profitability ratios Gross profit margin, profit margin Calculation and understanding the Any source of business financial documents Profitability
significance of each ratio. ratios
Worksheets can be found
at www.tutor2u.net and
Gross profit
As above, change some figures and www.bized.co.uk
margin
recalculate ratios.
Possible causes for any changes. Profit margin
5.4.5 Practical use of ratio How each of these ratios is used There are many sources of financial Financial statements of any businesses
analysis statements on the Internet that can be
Reasons for the results obtained
used as a basis for calculating ratios and
Ways that businesses might try to improve ratio for discussion of how useful each ratio
results, including reducing working capital problems might be.

5.4.6 Main users of Comparison of ratio results between businesses Identify a range of stakeholder groups and Stakeholder
accounts select the information that each might use.
Limitations of these accounting ratios
Discuss the usefulness of ratios to
Identification of the kind of information that
each group.
individual stakeholder groups might seek
Discuss the limitations of financial
information to each group.

5.4.7 Limitations of Limitations of the usefulness of published Discuss reasons why a business might Published accounts of any business Window
published accounts accounts: historical, may not reflect the future, “window dress” its accounts. dressing
may be out of date, does not reflect qualitative
Students need an appreciation of what
aspects of a business, the possibility of
a set of published accounts does not tell
“window dressing”, may not have details of the
stakeholders.
performance of individual parts of a business
Look for accounts that show an increase in
say profit and discuss the possible causes,
e.g. increased motivation or employees.
30
5.5 Forecasting and Pages 288–306
managing cash
flows
5.5.1 Purposes of cash flow Difference between cash and profits Distinguish between selling a product www.tutor2u.net has useful information on Cash flow
forecasts and actually getting paid for it! E.g. buy cash flow forecasts
The need to hold a suitable level of cash within a
a picture for $10 and sell it for $100. Cash flow
business and the consequences of not doing so
Profit = $90 but payment not yet received forecast
so no cash!
Transaction
Discuss problems of holding too little or
too much cash,
Cash
e.g. opportunity cost or inability to pay
suppliers.
Profit
Insolvent
Liquidity
problem
5.5.2 Cash flow forecasts in Uses of cash flow forecasts Important to establish that this is only a www.tutor2u.net has information on Trade
practice prediction. the importance of cash flow forecasts receivables
Construction of cash flow forecasts including
together with advantages and debtor
recognising the uncertainty of cash flows Students can construct a cash flow
disadvantages
forecast for themselves or their family.
Interpretation of simple cash flow forecasts from Trade
(Often easier to understand when in See also www.bized.co.uk for
given data receivables
simpler and familiar terms.) Stress they do explanations and case studies
creditor
Amendment of cash flow forecasts in the light of not need to use actual household figures
Midi Computers case study
changes in business circumstances (that might embarrass some) but items
Net cash flow
should be realistic.
5.5.3 Methods of improving How reducing costs or improving the management Discuss credit control. Large increase in the failure of small Trade credit
cash flow of trade receivables and trade payables can businesses in Australia case study
Refer back to sources of finance when
improve cash flow Debt factoring
covering this section but remember that
Further methods of improving cash flows: debt selling an asset is a one-time only solution.
Hire purchase
factoring, sale and leaseback, leasing, hire
Advantages and disadvantages of each
purchase
method. Working capital
Recognition of situations in which the various
methods of improving cash flow can be used
31
A LEVEL
1. BUSINESS AND ITS ENVIRONMENT
1.6a External influences Pages 308–326
on business activity
1.6.2 Economic constraints How the state might intervene to help It is important to remember that this section of the syllabus Market failure
and enablers businesses (small and large) is not the study of economics, but more about the impact Macroeconomic
on business of various economic conditions and decisions
How the state might intervene to Unemployment
made by governments to manage the economy.
constrain businesses (small and large)
Structural
How the state might deal with market Studying “real life” developments is by far the best way to unemployment
failure deliver this part of the course.
Cyclical
The key macroeconomic objectives Students should keep portfolios of relevant news items unemployment
of governments: low unemployment, and be prepared to present them to the class. As well Seasonal
low inflation, stable exchange rates, as presenting factual information on what is going on in unemployment
growth, transfer of wealth the world, students could then develop ideas about what
impacts these developments are likely to have on a range of Inflation
How these macroeconomic objectives businesses. Deflation
can have an impact on business
Cost push
activity The topic also lends itself to visiting speakers possibly
from industry, banks, chambers of commerce and political Demand pull
How a government might place a
different emphasis on macroeconomic parties. Economic growth
objectives from time to time Poverty
Policy instruments used to achieve Current balance
macroeconomic objectives, e.g. Exports
monetary, fiscal and exchange rate
policies Imports
Exchange rate
How changes in macroeconomic
performance and policies may affect GDP
business behaviour Recession
Reinforcement Progress questions/exam-style Fiscal policies
questions Monetary policies
Money supply
Exchange rate
policies
Exchange rate
appreciation
Exchange rate
depreciation
Business cycle
32
1.6b External influences Pages 327–338
on business activity
1.6.1 Political and legal How a government might use the It is important to remember that this section of the syllabus
law to seek to control employment, is not the study of law, but more about the impact on
conditions of work (including health businesses of various relevant aspects of laws. So detailed
and safety), marketing behaviour, knowledge of laws is not required.
competition, location decisions,
particular goods and services A large proportion of this section of the syllabus will draw
on other topics. So, for example, employment law relates
How international agreements have an to Topic 2, laws relating to advertising and sale of goods
impact on business will relate to Topic 3, etc. It is important to emphasise
continuously the integrated nature of the subject and the
interrelationships between the various parts.
Ideas can be developed by studying actual businesses
through research and through visiting speakers, online case
studies and news reports (TV, newspapers, the Internet).
Role plays could be used to understand particular business
decisions.

questions
1.6.3 Social The impact of and issues associated Social developments can be tied in with legal developments Social auditing
with corporate social responsibility and demographic change. It can also be related to Social accounting
(CSR), e.g. accounting practices, marketing issues such as target markets, targeted
paying incentives for the award of advertising, product design etc.
contracts, social auditing
CSR has been introduced in AS Level Chapter 1.4. This
Why businesses need to consider section develops the topic further in terms of applying the
the needs of the community including concepts. The topic can be usefully covered through studying
pressure groups CSR policies of real businesses from annual reports and
websites, how they have been created (e.g. social and other
audits) and how they can be applied (e.g. ensuring CSR
policies exist for subcontractors).
questions
33
1.6.4 Technological Problems of introducing technological Technology appears at various stages in the syllabus, for Technological
(including the Internet) change example in Topic 4 and in the management of change change
(Topic 2 and Topic 6). It may be useful to consider its several
dimensions at this stage, pulling together the AS Level topics,
to be revisited later as A Level topics such as lean production.
It would also be relevant to consider benefits to businesses
as well as problems resulting from introducing change.
Visits to industry, visiting speakers and videos showing
modern workplaces could all be useful.
questions
1.6.5 Other businesses How businesses are constrained by The relevance of competitors as external influences will have
and rely on other businesses been largely covered at AS Level when considering supply/
demand and other marketing issues such as market share
(Topic 3).
questions
1.6.6 Demographic How a business might react to a Should be tied in with social changes and marketing issues Demographic
demographic change as well as manpower planning (Topic 3). change
questions
1.6.7 Environmental How (physical) environmental issues Environmental issues tie in with CSR and social enterprise,
might influence business behaviour triple bottom line and legal issues.
Environmental issues can usefully be taught by following
through an environmental topic such as climate change,
carbon trading or some other relevant development in the
students’ own country.
questions
34
2. PEOPLE IN ORGANISATIONS

2.3b Human resource Pages 340–357
management
2.3.1 Approaches to HRM The difference between “hard” and Ensure students have a clear definition of “hard” and Hard HRM
“soft” HRM “soft” HRM.
Soft HRM
Flexibility, e.g. advantages and Use examples of contract of employment for different jobs.
disadvantages of temporary contracts Many are available on line.
Temporary
or flexible contracts, e.g. zero hours
Use the Delicaroma case study to promote discussion. Delicaroma case study contract
contracts and part-time against
full-time workers
Flexible contracts
The measurement, causes and
consequences of poor employee www.bized.co.uk and Zero hours
performance www.tutor2u.net have useful contract
information and case studies
Strategies for improving employee Part-time
performance Class discussion with teacher guidance using case study contract
materials from local newspapers or from websites.
Management by objectives (MBO); its Staff appraisal
implementation and usefulness Divide the class into two groups (or more if teaching a very
large class). Ask one group to prepare an argument in favour
of using MBO and the other one an argument against MBO.
Reinforcement This can be further developed by asking students to argue Progress questions/exam-style
for and against imposed rather than negotiated objectives. questions
2.3.2 Labour legislation The need for labour legislation and the Once students understand why labour legislation exists they Unfair dismissal
broad principles that often underlie it can discuss and apply that understanding to actual business
situations. Examples – local, national or international – of cases Breach of
where legislation was not followed or not present can be used. contract
questions
2.3.3 Co-operation between How co-operation between Outline the ways in which a business and employees can Management
management and management and the workforce can both benefit from co-operation. This will link to motivation
workforce be of benefit to both and employee participation.
questions
2.3.4 Workforce planning The reasons for and the role of a If possible use local examples of businesses experiencing Skills audit
workforce plan retrenchment, expansion or a change in methods of operation.
Progress questions/exam-style
Reinforcement questions
2.3.5 The role of trade The benefits to employers and The role and use of trade unions varies between countries. www.tuc.org.uk Trade union
unions in HRM employees of trade union involvement General information can be found on the TUC website.
in the workplace including their role in Collective
It can be useful to make a distinction between small and large
collective bargaining bargaining
businesses and the relative importance of trade unions in each. Progress questions/exam-style
Reinforcement questions
35
2.4 Organisational Pages 358–376
structure
2.4.1 Relationship Purpose and attributes of an Useful to begin with the organisational structure of the Any promotional pamphlet Organisation
between business organisational structure such school or college. Use this to demonstrate the purpose of that has been issued by the structure
objectives, people as flexibility, meet the needs of the structure. school in which it outlines the
and organisational the business, permit growth and management and staff Authority
structure development
Responsibility
questions
2.4.2 Types of structure: Advantages and disadvantages of the Introduce the various forms of organisational structure. Company websites Delayering
functional, hierarchical different types of structure
Input is required to explain the reasons why businesses are
(flat and narrow), Hierarchical
Why some organisations are structured in different ways.
matrix structure
structured by product and others by
function or geographical area
Matrix structure
The reasons and ways structures Relate this to the number of layers in the hierarchy in the School/college organisational
change, e.g. with growth or delayering school or college or to businesses that students are familiar structure or that of any Functional
with. Discuss the implications of increasing or decreasing business structure
the layers in the organisation.
Structure by
product
Narrow (tall)
organisation
structure
Reinforcement Progress questions/exam-style Flat organisation

questions structure
2.4.3 Formal and informal Features of a formal structure: levels A simple demonstration using an organisation structure to Fedilock Ltd case study Chain of
organisations of hierarchy, chain of command, span highlight each aspect to be covered. command
of control, responsibility, authority,
delegation/accountability, centralised/ Span of control
decentralised
Responsibility
Accountability
Centralised
Decentralised
Formal structure
questions Informal structure
36
2.4.4 Delegation and Relationship between delegation and Discuss a situation where work might be delegated to a Delegation
accountability accountability subordinate. Who will be held responsible for the quality
of the delegated work? The link with motivation should be Accountability
Processes of accountability in a
made throughout discussion of this topic.
business
Advantages and disadvantages of
delegating
The impact of delegation on motivation
questions
2.4.5 Control, authority and Relationship between span of control Span of control can be illustrated on an example Span of control
trust and levels of hierarchy organisation chart, as can authority and responsibility.
Authority
Difference between authority and Class discussion of the problems that some managers
responsibility have with delegating, i.e. fear that the work will not be done
Responsibility
Conflicts between control and trust to their satisfaction. Also how too much control by the
that might arise when delegating managers means that they do not trust the person they are
delegating a task to.
questions
2.4.6 Centralisation Advantages and disadvantages of Ask students, in groups, to make a list of stakeholders in a Business websites that indicate Centralisation
centralisation for stakeholders business. the size of businesses and the
range of products they produce
Using information from websites a group of students
discuss why a business might benefit from centralised
decision-making. Ask another group to discuss reasons why
centralisation might be unwise. Which of the stakeholders
might prefer centralisation and which would prefer not to
have centralised decision-making?
questions
2.4.7 Line and staff Examples of and distinctions between Perhaps using departments within the school or college, Staff
line and staff management explain the difference between these two concepts. management
Reinforcement Progress questions/exam-style Line management

questions
37
2.5 Business Pages 376–388
communication
2.5.1 Purposes of Situations in which communication Outline occasions when communication takes place. Relate this Copies of school newsletters; job Communication
communication is essential to students’ homes in the first instance and then to school or advertisements; a business letter; a copy with customer
college before discussing in business situations. Discuss a range of the published accounts of a business
Reinforcement of types of communication linked to the resources suggested. Progress questions/exam-style questions
2.5.2 Methods of Standard methods of With the class identify methods of communication used www.bized.co.uk has PowerPoint Communication
communication communication: interpersonal, within the school or college. Students can add any means presentation on communication. It is
general to and within groups; of communication that they use. For example, social media, aimed at BTEC but has appropriate
spoken, written, electronic, visual newspapers, school or college bulletins and letters to parents. content
Strengths and weaknesses of the
different methods of communication
2.5.3 Channels of How communication works within This can be demonstrated well if any students have a part-time Also covered in the Bized presentation One-way
communication an organisation job or by using the school or college as an example. A business although some development will be communication
can also be used. A local business may also provide a speaker to required
Differences between one-way
outline how communication takes place in their business. Two-way
and two-way communication;
communication
difference between vertical and Both internal and external communication should be covered.
horizontal communication
Problems associated with different
channels of communication
2.5.4 Barriers to Barriers to communication: attitudes, As far as possible use practical examples to demonstrate these Barriers to
communication perceptions, noise, language, issues. communication
inappropriate medium etc.
Try passing reasonably complex information around the class
using only verbal means. See if the message received by the
final person is the one originally sent. Perhaps create some
distractions while the message is being passed around. Use
some technical terms.
Use an extract from the annual report for a business. Consider
who the information is written for and get students to judge
Reinforcement whether the language and format is appropriate for the recipients. Progress questions/exam-style questions
2.5.5 The role of The role of informal Re-emphasise that communication is not effective unless Informal
management communications within a business the message has been delivered and received accurately. Do communication
in facilitating students have examples of communication that has become
Ways in which communication can
communication distorted? Use any examples of communication that have been
influence the efficiency of a business
used in the school or college together with any other appropriate
Ways of improving communication examples e.g. posters from noticeboards, copies of emails etc.
in a given situation
38
3. MARKETING

3.4 Marketing planning Pages 390–407
3.4.1 Market planning The detailed marketing plan; Groups produce a marketing plan in outline for a selected The basis for a handout Market planning
associated benefits product. It may be possible to use Young Enterprise or a is found at www.
school/college-based project for this. Include a section on teachingkidsbusiness.com/
the reasons for drawing up a marketing plan. business-basics-marketing-
plan.htm

questions
3.4.2 Elasticity Income elasticity, promotional Introduction videos. www.youtube.com/ Income elasticity
elasticity, cross elasticity; the watch?v=QLMJDo9dck0 of demand
Lead students as they work through examples in the book.
usefulness of the concept of elasticity
Then students can prepare examples for calculating each www.youtube.com/
in its various forms Normal good
type of elasticity, stating the good involved, and test each watch?v=LHv4SnEUcZA
other.
Inferior good
Class discussion of the usefulness of each kind of elasticity,
drawing up points to illustrate its usefulness and any factors Promotional
that may impact upon this. elasticity of
demand
Reinforcement Progress questions/exam-style Cross elasticity of

questions demand
3.4.3 Product development Product development as a process Research new products and how they have been http://businesscasestudies. Product
from original conception to launch and developed, matching development to the stages in the co.uk has examples of product development
beyond planning process and to the sources of the new ideas used. development
Sources of new ideas for product It is important to make the distinction between market-led
development sources and business-led sources.
The importance of research and In groups and using a list of products, students assess how
development (R&D) important R&D is likely to be for each.
Reinforcement
questions
39
3.4.4 Forecasting The need to forecast marketing data Introduction covering the reasons why forecasting marketing www.tes.co.uk has activities Moving average
data is important to businesses. and presentations about forecasting
Calculation and use of moving average Lead students through the example in book. forecasting
method to forecast sales Moving average
Using examples drawn from textbooks, the Internet or exam
papers students can use the moving average method to Trend
forecast marketing data
Seasonal
and/or
variation
students can compile their own examples of seasonally
varying sales and carry out the moving average method to
forecast future sales.
Make sure that students understand the limitations of this
method.
questions
3.4.5 Co-ordinated The need for and development of a Research into the marketing mix of a range of products http://businesscasestudies. Marketing mix
marketing mix co-ordinated marketing mix can illustrate the different ways businesses co-ordinate the co.uk has many examples
elements of the marketing mix they use. with associated questions for
students
Development of marketing strategies Research into case studies of how specific businesses have
that are focused towards achieving done this.
specific marketing objectives
Class groups prepare case study with a given objective and
ask other groups to outline appropriately focused marketing
strategies to achieve this.
questions
40
3.5 Globalisation Pages 408–421
and international
marketing
3.5.1 Globalisation Economic globalisation within the Group research to produce examples of each of the These websites have Globalisation
context of the broader concept of component parts of globalisation. information and activities:
“globalisation” Foreign direct
•• www.unesco.org investment
•• www.tes.co.uk
•• www.tutor2u.net
The implications for marketing of Groups research multinational businesses to see how and Company reports/accounts Protectionism
increased globalisation and economic where they operate. This should include some indication of
collaboration, e.g. BRICS how they see and deal with competition. Tariff
Produce presentations on trade blocs using specific www.wto.org
Trade blocs
examples and including the reason why they were set up.
www.worldbank.org
Groups prepare a short report on the importance of the
www.tutor2u.net
BRICS countries for the world economy.
Research to see if there are any differences between the
way multinational businesses market products in your
country compared to another.
questions
41
3.5.2 Strategies for The importance of international Discuss reasons why international marketing is very Exports
international marketing marketing for a specific business/ important for a large business. This many be done
situation by considering factors pushing a business to expand Franchise
internationally and factors pulling a business towards
international expansion. These may be internal or external. Joint venture
Include suggestions for a type of business that would not
find international marketing useful. Pan-global
marketing
Students research businesses that have expanded into Company accounts and
International markets: identification,
international markets and determine which methods they websites
selection and entry After-sales
have used, suggesting reasons for their choice. Prepare a
service
Factors influencing the method of presentation to illustrate their activities.
entry into international markets
www.greatideasforteaching
Case study activity from www.greatideasforteaching
Whether a business in a given situation marketing.com/best-
marketing.com
should develop an international market international-market-
through pan-global marketing or Students research examples of pan-global marketing and entry-option
maintain local differences also businesses that market for local differences. Then
analyse any characteristics of businesses, products or
markets that have helped determine which strategy
is adopted.
Groups should research examples of businesses that have Visitor from international
entered an international market. The examples should business
Choosing a strategy, in a given
be analysed and compared using the theory concepts
situation, to develop a global market Multinational company annual
of identifying, selecting and entering an international
reports
market. The strategic choice process is similar to any other
marketing decision, and practice in analysing the decision
can be achieved by studying the different ways businesses
have carried out these processes.

questions
42
4. OPERATIONS AND PROJECT MANAGEMENT

4.4 Capacity utilisation Pages 423–431
4.4.1 Measurement and How capacity utilisation can be A useful place to start would be to identify examples of over- Olympics 2016 case study Capacity
significance of measured capacity. If local examples cannot be found then the car
Suitable examples from own Output
capacity industry in Europe/Japan or the US might provide a suitable
Implications of operating under or over country
example. This could be developed into the idea of wasted
maximum capacity
resources, higher costs and so on.

questions
4.4.2 Increasing capacity Choosing methods of improving Case studies could be used to explore the problems of over- Case materials, possibly based Rationalisation
utilisation capacity utilisation (e.g. through utilisation. They could be based on local businesses. on local businesses
Subcontracting
rationalisation, sub-contracting)
Can link to Topic 2 (human resource issues), Topic 3 (marketing Furious passengers case study
to solve capacity issues), Topic 5 (costs and finance).
questions
4.4.3 Outsourcing Benefits of outsourcing Explain as a potential solution to over-utilisation together Outsourcing at Newtown Outsourcing
with advantages/disadvantages. Hospital case study
Offshoring

questions
43
4.5 Lean production Pages 432–445
and quality
management
4.5.1 Lean production Links between lean production and Teach 4.5.1 to 4.5.3 together. Lean production, Kaizen, just GSEP Limited case study Quality
inventory control, quality, employees’ in time can all be dealt with together.
roles, capacity management and Lean production
efficiency Start by identifying inefficiencies at school/college. This Pre-prepared worksheets for
enables the concept to be applied to any business situation, identifying school waste Cell production
not just production systems.
Case material, possibly based Flexible
The philosophy of lean production can then be built upon on local businesses specialism
ideas that the whole school could be involved in reducing
waste. Lean production and health Simultaneous
service resource use case engineering
4.5.2 Kaizen Kaizen (continuous improvement) in Lean production then becomes the approach to refocusing study Kaizen
the context of lean production a business towards less waste, greater efficiency, higher
quality not so much through a designed production system Just-in-time
but through an approach to managing a business and its production
4.5.3 Just in time JIT in the context of lean production procedures.
Implications and justification of

adopting a JIT approach
questions
44
4.5.4 Quality control and Quality in terms of what the customer Quality should be developed from the perspective of Starlight Fireworks case study Quality control
assurance demands the customer into strategies that enable a business to
satisfy customer expectations. It should not be seen as Artefacts for discussion in the Quality assurance
The importance of quality assurance classroom
an absolute – a cheap car can be acceptable quality, but
Methods of quality control: inspection, nothing like the quality in a luxury car. It should also be seen
testing, random sampling, involving as being relevant to services as physical products. TV, videos
the workforce in quality control
Teaching can be developed around the students’ own Visits
The link between quality and training concepts and experiences of quality. Bringing products into
the classroom can be a useful way of stimulating discussion. Visiting speakers
TV programmes in which consumers complain about quality
can be useful. Visits and visiting speakers could also be
useful.
questions
4.5.5 Total quality Aims and effectiveness of TQM Should be seen as part of lean production. As with lean Total quality
management production it should be taught as a “total philosophy”. management
The potential of Kaizen in TQM
Quality chain
Quality circle
Reinforcement
questions Internal customer
4.5.6 Benchmarking The importance of benchmarking in Examples of benchmarking can be produced, e.g. Kitemarks Benchmarking
quality control or local equivalents. Explain the procedure/process.
questions
45
4.6 Project Pages 446–253
management
4.6.1 The need for Projects as a response to the need for Teach 4.6.1 and 4.6.2 together. Much of this topic will be Planning for the Football World Project
projects and project change teacher led with lots of opportunities for class exercises. Cup 2014 case study
management Introduce the topic through major projects at the school, or Project
Reasons and impact of project failure, locally or in your country. management
IT projects and their failure case
including examples
Try to identify the complexity of all the tasks involved and the study
sequencing. Building a house could provide a good example.
Things that could go wrong can be developed, perhaps
by exploring failed projects, which can lead on to the need
to complete projects on time. Preparing for major sporting
events such as the Olympics or World Cup could provide
very good and interesting examples.
It is important to identify what is involved in a successful
project including finance, skills, resources and time as well
as an “end vision of completion”.
4.6.2 Network diagrams Main elements of a network diagram: Activity

activities, dummy activities, nodes
Node
Construction of a network from given
Dummy activity
data
Network analysis
Critical path
analysis (CPA)
Reinforcement Progress questions/exam-style Network diagram
questions
4.6.3 Critical path analysis Finding the minimum project duration Earliest start time
(CPA) and the critical path (EST)
Calculation of total and free float Latest finish time
Interpretation of the results of the (LFT)
analysis of a network Minimum project
How minimum duration and floats duration
might be used in project management
Critical activity
CPA as a management tool
Critical path
Reinforcement Progress questions/exam-style Total float

questions
Free float
46
5. FINANCE AND ACCOUNTING

5.6 Budgets Pages 459–467
5.6.1 The purposes of Measuring performance A useful starting point would be for the head teacher or Snazzy Clothes (SC) case study Budget
budgets another member of school/college management to talk
Benefits and drawbacks of using Pre-prepared sheets for
about the issues involved in budgeting for the school. Incremental
budgets preparing a budget including
budgeting
suitable data
How budgets might be produced Budgets could be prepared for some kind of school activity,
e.g. putting on a school play. Students could talk about Budget holder
Use of flexible budgets and zero
the problems of providing estimates and the risks that
budgeting Zero budgeting
are involved. The concept of “What if?” analysis could be
Purpose of budgets for allocating introduced.
resources, controlling and monitoring Flexible
of a business budgeting
Role of budgets in appraising a

business
questions
5.6.2 Variances: adverse, The meaning of variances After explanation, students could be given pre-prepared Pre-prepared worksheets for Variance
favourable worksheets to calculate some variances. They could then calculating variances
Calculation and interpretation of
prepare presentations on how the business could improve Adverse variance
variances (but not price/volume
its performance.
variances)
Favourable
variance
Reinforcement Progress questions/exam-style Variance analysis

questions
47
5.7 Contents of Pages 468–474
published accounts
5.7.1 The income statement Amendment of an income statement Using financial statements make changes in the figures Financial statements of any Income statement
from given data given, e.g. increase some figures such as labour costs businesses. Use information
and electricity costs by 10 per cent. Calculate the impact from local, national or Profit for the year
The impact on the income statement
through to the profit for the year. international businesses
of a given change
questions
5.7.2 The statement of Amendment of a statement of financial Introduce some changes, e.g. the purchase of additional www.bized.co.uk has some Statement of
financial position position from given data premises financed by a mortgage, or the writing off of good content but bear in mind financial position
inventory due to flood or fire damage. that some of it uses the old
The relationships between items in the
terminology Non-current
income statement and the statement
Consider the impact of a change in the way non-current assets
of financial position
assets and inventories are valued. Raise awareness of the
The impact on the statement of danger of over-stating the value of these elements. Inventory
financial position of a given change
in valuing non-current assets or
inventories

questions
5.7.3 Inventory valuation The difficulties of valuing inventory Look at the examples on valuing inventory on pages 470–1 Net realisable
that highlight the difficulties involved. value
The net realisable value method
(LIFO and FIFO are not required)
questions
5.7.4 Depreciation The role of depreciation in the accounts Straight-line method only is required. Depreciation
The impact of the straight-line method Practise calculation and linking this to the financial
Residual value
of depreciation on the statement of statements, i.e. depreciation for the year is recorded in the
financial position and the income income statement with the carrying amount being recorded
Carrying amount
statement in the statement of financial position.

questions
48
5.8 Analysis of Pages 475–485
published accounts
5.8.1 Profitability ratio Return on capital employed Any acceptable version of this calculation is acceptable. Useful resources available Return on capital
Encourage students always to show their formula so that it at www.bized.co.uk include employed (ROCE)
is clear which one they have used. “Business Accounting –
310105 (Problem based
learning)” and “Worksheet on
interpretation of final accounts”
questions
5.8.2 Financial efficiency Inventory turnover, days’ sales in Discuss in relation to the cash flow of the business and the Inventory turnover
ratios receivables nature of the product. For example inventory turnover of 30
days is not good for fresh food items! Days’ sales in
Reinforcement Progress questions/exam-style receivables
questions
5.8.3 Gearing ratio The interpretation and calculation of Link to sources of finance from AS work. Past examination papers with Gearing ratio
gearing and its importance to selecting “gearing” information
a source of finance
Published accounts of any
businesses
questions
5.8.4 Investor ratios Dividend yield, dividend cover, price/ Calculate and discuss the significance of the results in terms Published accounts of any Investor ratios
earnings ratio of investor confidence and business image. businesses
Dividend yield
News articles relating to any
change in investor confidence or
Dividend cover
the published accounts of any
of the big UK banks following
Price/earnings
allegations of wrong doing
ratio
questions
5.8.5 Practical use of ratio How each of these ratios is used Who would use them and why. See www.hsc.csu.edu.au/ Depreciation
analysis business_studies/resources
Reasons for the results obtained Investigate changes that impact on the results.
Profitability ratios
Strategies that businesses might Use any available financial records and discuss how a
adopt to improve ratio results business might influence any of the elements used in See www.investopedia.com Liquidity ratios
calculating any ratio, e.g. the market value of shares, the for a sound explanation of
Comparison of ratio results between Investor ratios
total dividend etc. For example changes to depreciation limitations
businesses
could decrease or increase the operating profit figure.
Limitations of these accounting ratios
Remember to look at both sides of any information, i.e.
costs and revenues.
Reinforcement Compare businesses in different industries and of different Progress questions/exam-style
sizes and investigate the impact on the various ratios. questions
49
5.9 Investment Pages 486–499
appraisal
5.9.1 The concept of The need for investment appraisal Teach 5.9.1 to 5.9.4 together. There is little alternative to Ryan Restaurants (RR) case Investment
investment appraisal teaching the “mechanics” of investment appraisal using study
The significance of risk in investment
traditional lectures. However, the topic can be contextualised Investment
decisions Descriptions of typical
with real-life decisions, and strengths and weaknesses can appraisal
investment decisions
be explored through discussions. It would be very useful to
find a business person who would be prepared to talk about Situations involving risk Risk
the practicalities of actual business investment decisions. It
might also be useful to look at some relevant decisions that Net cash flow
have gone wrong. forecast
5.9.2 Basic methods: The meaning, calculation and Qualitative factors can be developed by means of a Payback
payback, accounting interpretation of payback and ARR simulation, with students acting the parts of various
rate of return (ARR) stakeholders and showing their attitude to the investment. Accounting rate
of return
Criterion rate
5.9.3 Discounted cash flow The meaning, calculation and Discounting
methods: discounted interpretation of discounted payback
payback, net present and NPV Discount rate
value (NPV), internal
The meaning and interpretation (but
rate of return (IRR) Present value
not calculation) of IRR
Discounted
payback
Net present value
Internal rate of
return
5.9.4 Qualitative factors in Qualitative factors that might influence
investment appraisal an investment decision in a given
situation
Comparison of the various investment
appraisal methods, including their
limitations
questions
50
6. STRATEGIC MANAGEMENT

6.1 What is strategic Pages 501–510
management?
6.1.1 Understanding The meaning of corporate strategy, Introduction by teacher, building on the planning concepts Company organisation charts, Strategic
what strategic tactics and strategic management in AS Level Chapter 1.4 and A Level Chapter 3.4 which feed annual reports and websites management
management is into corporate strategy.
Corporate
Students should consult company documents for examples
strategy
of corporate strategy and identify where possible how
business strategy and/or functional strategies feed in to
Tactics
corporate strategy.
The need for strategic management Class discussion on why strategic management might be
important. Case studies can be found in
Students use company documents to try to identify the textbook, on the Internet,
elements of the corporate strategy e.g. www.slideshare.net/
OsamaAlbarrak/ikea-strategic-
Chandler’s assertion that strategy Students use Figure 6.1.3 to summarise Chandler’s model. case-study and at http://
should determine organisational Students find other examples that illustrate his assertion. businesscasestudies.co.uk
structure Discuss the extent to which these examples demonstrate
the assertion.
How business strategy determines Students can investigate examples of businesses that have
competitive advantage in an a corporate strategy and explore the extent to which this
increasingly competitive world has contributed to success or failure.
questions
51
6.2 Strategic analysis Pages 511–529
6.2.1 SWOT analysis Undertake and interpret SWOT Students carry out a SWOT analysis in groups and compare Case studies from Internet SWOT analysis
(strengths, weaknesses, opportunities, their results. Subject could be the situation facing their e.g. www.scholaradvisor.com/
threats) analysis in a given situation school/college or material drawn from a business case essay-examples/mcdonalds-
study. For existing SWOT case studies a group could study in-china/
these and communicate their findings to other groups.
or
Brainstorm advantages and disadvantages of using SWOT. www.circleinternational.co.uk/
circle/strategy_files/ikea%20
Development of the outcome of Using above analysis students can show how SWOT
mrktswot.pdf
a SWOT analysis into strategic analysis generated specific objectives. A diagram can show
objectives how these objectives are linked to the SWOT.
questions
6.2.2 PEST or external Undertake and interpret PEST Students carry out a PEST analysis in groups and compare YouTube has many examples PEST analysis
environment analysis (political, economic, social, their results. Subject could be the situation facing their of PEST analysis which can be
technological) analysis in a given school/college or material drawn from a business case used as an introduction
situation study. For existing PEST case studies a group could study
Internet case studies include
these and communicate their findings to other groups.
www.slideshare.net/phongv/
Brainstorm advantages and disadvantages of using PEST. starbucks-pestle-analysis
Use the PEST analyses carried out to develop relevant
appropriate objectives. There is a useful template
at www.businessballs.com/
pestanalysisfreetemplate.htm
questions
6.2.3 Business vision/ Evaluation of the role of business Students in groups research a variety of statements and Company annual reports Vision statement
mission statement vision/mission statements and analyse them to see what limits they may place on business
and objectives objectives in strategic analysis activity. Students present their findings to the group. Mission
statement
Students’ school/college statements can be analysed or
created.
questions
52
6.2.4 Boston Matrix Undertake and interpret Boston Matrix Students can find examples of multi-product businesses YouTube has many examples Boston Matrix
analysis on the product portfolio of a and carry out the analysis then assess the position of the of Boston Matrix for an
business business in relation to its product portfolio. introduction or see www. Product portfolio
tutor2u.net
Brainstorm advantages and disadvantages of using the
Portfolio analysis
Boston Matrix. Company reports
Websites, e.g. http://
manifestedmarketing.
com/2013/10/04/nestle-bcg-
matrix-and-brand-divestment
questions
6.2.5 Porter’s Five Forces Use Porter’s Five Forces Analysis as a Teacher leads students through the example in the book Company reports Porter’s Five
analysis framework for business strategy (pharmaceutical industry) and shows how using the analysis Forces Analysis
generates policy ideas.
Barriers to entry
Students in groups carry out the analysis for Coca-Cola, http://valuationacademy.com/
suggest the next steps, share their conclusions and porters-five-forces-in-action- Substitute
then compare with the website analysis, discussing any sample-analysis-of-coca-cola/ products
differences.
Students research other businesses that are facing possible
change in their market and apply the analysis to generate a
strategic approach.
Reinforcement Brainstorm advantages and disadvantages of the Progress questions/exam-style

Five Forces analysis questions
6.2.6 Core competencies Use Prahalad and Hamel’s core Teacher-led introduction using the examples in the book to Core
competencies analysis as a framework explain the concept. competencies
for business strategy
Students produce a flow chart to show how core
competency analysis can be used to generate business
strategy and find further examples of where this has been
used.
Students are given the tutor2u article and then apply this to www.tutor2u.net/business/
a variety of businesses (small, large, local, international) to strategy/core_competencies.
identify the extent to which they have core competencies, htm
and how these contribute to success. Discuss the findings
as a class.
questions
53
6.3 Strategic choice Pages 530–542
6.3.1 Ansoff’s Matrix The structure of the Ansoff Matrix Introduction. www.marketing-equity. Ansoff’s Matrix
and how it analyses the link between com/2011/09/few-examples-
business strategy and risk of-ansoff-matrix.html Market
penetration
Use of the Ansoff Matrix to analyse Students can research a business seeking to expand BP and the Deepwater Horizon Market
and evaluate different business (possibly their school/college) and apply Ansoff’s Matrix, oil spill case study development
strategies in a given situation presenting their conclusions.
Product
Brainstorm any other information that may be useful in www.tutor2u.net/business/ development
making a decision. worksheets/Ansoff-Matrix.pdf
Review and diagnostic assessment. Diversification
questions
6.3.2 Force field analysis The use of simple force field analysis Students draw up a booklet that explains to a manager what Here is a useful pro forma: Force field
as a means of making strategic force field analysis is and how it is used. http://wales.heacademy.ac.uk/ analysis
choices in a given situation assets/documents/change/
Students can use their own personal situation or find a
SAP/RES_TT_Forcefield_
business (maybe their school/college) that is considering
analysis_worksheet_-_Steve_
making a change, carry out a force field analysis and discuss
Outram.pdf
the advantages and disadvantages of this technique before
making a recommendation regarding the advisability of the
proposed change.
In groups work through the slides, tackle the questions and www.slideshare.net/
discuss conclusions with the other groups. puspaltamuli/force-field-analysis
questions
6.3.3 Decision trees Construction of simple decision trees Teacher-led introduction: use Figure 6.3.4 to illustrate the Expected
from information given nature of a decision tree. monetary value
Work through the example in the book (an exporting
“What if?”
decision) to show how a decision tree is constructed.
Calculation of the expected monetary analysis
Continue working through this example to calculate
values from decision trees and use of
expected monetary values and indicated best strategy.
the results to assist in selecting most
appropriate strategy Use “What if?” analysis to show how altering an assumption
can be useful in decision-making. An outside speaker could
The usefulness of decision trees
including an assessment of the Students can construct a case study that involves using outline a real-life example.
accuracy of the data they contain a decision tree to assist in taking a decision. Groups can www.bized.co.uk/
then share their cases and role play a meeting in which the educators/16-19/business/
findings and recommendations are presented and debated. strategy/activity/decision1.htm
Reinforcement Students can work through notes and activities found at Progress questions/exam-style
www.bized.co.uk. questions
54
6.4 Strategic Pages 543–557
implementation
6.4.1 Business plans Key elements of business plans Introduction outlining purpose and content. Many websites have templates Business plan
for a business plan
Students suggest an idea for a small business and Venture capital
construct a business plan, maybe in conjunction with Young
Enterprise, using appropriate headings/elements.
The value of business plans for large Role play: students present their plans to other students Outside speaker, perhaps from
and small, established and start-up who act as a bank manager. The bank manager outlines an enterprise agency or bank,
businesses the reasons for producing a business plan before (s)he will who might assist and comment
consider granting a loan. Critique of the plan. on the plans
questions
6.4.2 Corporate culture Different types of corporate culture such Students can investigate the corporate culture of the Corporate culture
and strategic as power, entrepreneurial and task school/college and other local organisations and present
implementation their findings. Power culture
Importance of corporate culture in
strategic implementation in a given Using Table 6.4.2 students can prepare a presentation on
Task culture
situation how their findings on culture type relate to the industries and
markets the businesses investigated are in.
Entrepreneurial
Students consider a possible change in their school/college culture
and discuss how the existing culture may help or hinder the
change and compare their findings. Strong culture
Weak culture
questions
6.4.3 Developing a change Importance of developing a Teacher-led discussion. This is an introduction to the Students’ own experience Change culture
culture change culture to allow effective concepts that deal with managing change effectively.
implementation of new strategies Students can cite examples from their own experience of
work, family and organisations they belong to or school/
college, identifying positive and negative experiences.

questions
55
6.4.4 Managing and The importance of leading and Using the experiences from 6.4.3 students can discuss how Continental AG Tyres case Project champion
controlling strategic managing change important leaders were in the change experience. study
change successfully Techniques to implement and manage Students can research a change in their own school/college Useful websites:
change successfully and analyse how successful it was and why. Then they can
suggest a change and draw up a plan/strategy for achieving •• http://calleam.com/
this. Groups could present their ideas to school managers. WTPF/?page_id=799
Development of a strategy to manage •• www.brighthubpm.com
Students make notes on successful and unsuccessful
change in a given situation •• www.bized.co.uk/
changes, identifying the reasons for failure or success.
educators/16-19/business/
Examples can be drawn from research in local businesses
hrm/lesson/training1.htm
or the Internet.
(Includes activity)
•• http://businesscasestudies.
co.uk
Managing change in practice: a
Mauritius hospital case study
Reinforcement
questions
6.4.5 Contingency Importance of contingency planning Students list crises and their possible consequences that www.mallenbaker.net/csr/ Contingency
planning and crisis and crisis management might threaten a business and draw up a flow chart to show crisis04.html planning
management the stages in contingency planning.
http://businesscasestudies.
In groups they prepare a document explaining crisis Crisis
co.uk/eurostar/#axzz3KM6S9Zl7
management and contingency planning for a new post management
of contingency planning officer. Include the advantages www.helpscout.net/blog/crisis-
and disadvantages of the process. Students role play the management-examples
recruitment process by selecting some students to apply for
the post. This will involve explaining the role to the applicants,
writing a letter of application and holding interviews.
Review activity by noting the mallenbaker, Eurostar and
helpscout case studies of success and failure.
questions
56

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Topic Detail Book reference Suggested teaching activities Resources Glossary

Reinforcement Progress questions/

Reinforcement Progress questions/

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Topic Detail Book reference Suggested teaching activities Resources Glossary

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Topic Detail Book reference Suggested teaching activities Resources Glossary

Reinforcement Progress questions/exam-style questions Marketing

Sources of secondary information Internet searches for specific information

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Groups produce a table showing the USPs of a Product life cycle

Reinforcement Progress quesitons/exam-style questions.

Reinforcement Progress questions/exam-style Bait and hook

Students can discuss how important branding is to them

Topic Detail Book reference Suggested teaching activities Resources Glossary

Practical activity classifying factors of production in making www.learnnc.org/lp/ Labour intensive

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Topic Detail Book reference Suggested teaching activities Resources Glossary

Progress questions/exam-style questions Reserves

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Topic Detail Book reference Suggested teaching activities Resources Glossary

Reinforcement Progress questions/exam-style Flat organisation

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Reinforcement Progress questions/exam-style Cross elasticity of

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Implications and justification of

4.6.2 Network diagrams Main elements of a network diagram: Activity

Reinforcement Progress questions/exam-style Total float

Topic Detail Book reference Suggested teaching activities Resources Glossary

Role of budgets in appraising a

Reinforcement Progress questions/exam-style Variance analysis

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Net present value

Topic Detail Book reference Suggested teaching activities Resources Glossary

Reinforcement Brainstorm advantages and disadvantages of the Progress questions/exam-style

Reinforcement Progress questions/exam-style

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