Professional Documents
Culture Documents
This syllabus has been created with the support of industry and
education experts and, coupled with the teaching expertise of your
staff, will ensure that ABMA learners continue to demonstrate talent,
capability and experience in their chosen industry.
I wish your learners good luck in their studies and look forward to
hearing about the achievements of ABMA learners in the near future.
Kind regards,
Alan Hodson
ABMA Education Senior Executive
Vocational Qualifications,
our Strength, your Future
Contents
Unit Aim
The unit identifies the factors that can affect organisational performance in the marketplace and covers
how economic developments impact the market and the organisation’s operations.
Unit Overview
This unit provides learners with an understanding of micro-economic principles through basic supply and
demand analysis, price setting and responses to price changes in a competitive market. Learners also
consider the pricing implications of imperfections in market structure, how this is affected by barriers to
entry and exit, the impact of changes in the political, technical and socio-economic environment as well
as the impact of short and long term economic changes on the marketplace.
Learning Outcomes
1. Understand the economic principles that affect marketplace price determination from an
organisation’s perspective
2. Understand the factors that affect an organisation’s performance in the marketplace
3. Understand the impact of potential developments on entry to and exit from the market
Unit Criteria
In order to pass this unit, the evidence that the learner presents for assessment needs to demonstrate that
they can meet the learning outcomes for the unit. The unit criteria demonstrate the level of achievement
required to meet the learning outcomes. Learners can be assessed on all or a combination of this unit
criteria. Learners must learn the full unit content as any part of this can be tested during the assessment.
Unit Criteria
4
2. Understand the factors 2.1 Explain the implications of
that affect an current barriers to entry
organisation’s and exit from the market
performance in the in which an organisation
marketplace operates
2.2 Explain how a competitive
environment affects an
organisation’s prices and
financial performance
2.3 Assess the extent to which Provide a detailed and Provide a comprehensive
this environment is likely to accurate account of how and
affect an organisation’s factors considered fixed in fully accurate account of
performance in the the short term may how factors considered
marketplace in the short become variable in the fixed in the short term may
and long term long term become variable in the
long term, explaining how
long term flexibility affects
market structure and
pricing
3. Understand the impact of 3.1 Analyse the implications Provide a detailed Provide a comprehensive
potential developments of economic account of how an account of how an
on entry to and exit from developments and their economic downturn can economic downturn can
the market impact on the market affect entry and exit to affect entry and exit to
markets and its markets, while showing an
implications appreciation of the impact
of expectations on the
length of a downturn for
assessing the impact on
different markets
3.2 Review the influences of
political and social
developments on entry to
and exit from the market
3.3 Evaluate the impact of
technological changes on
entry to and exit from the
market
Unit Content
In order for the learner to meet each learning outcome, they need to be taught the following:
Learning Outcome 1: Understand the economic principles that affect marketplace price determination
from an organisation’s perspective
5
b. Analysing factors affecting price elasticity of demand
c. Reviewing theories e.g. Giffen and inferior/Veblen goods
d. Substitutes and complements
e. Making pricing decisions in the context of other marketing mix variables
f. Overall effects of changes in multiple marketing variables
g. Evaluation of market response to similar changes in the past
h. How to predict market response to future prices changes using information on past market response
Learning Outcome 2: Understand the factors that affect an organisation’s performance in the marketplace
Learning Outcome 3: Understand the impact of potential developments on entry to and exit from the
market
6
3. Impact of technological changes on the market
a. Capital required for research and development; their implications for market structure and entry/exit
b. Extent of diffusion of innovations
c. Profitability and early adoption
d. Continuing need to develop and maintain innovation within the market due to new technology and
its application to the products in the market and consumer demand
e. Importance of having up to date knowledge and skills within firms to cope with the changes
demanded as a result of new technology
Teaching Guidance
Delivery Guidance
It is recommended that the teaching/learning approach for this unit is participative and interactive and
that this is achieved by relating basic concepts to real-life business and market examples. The role of the
tutor at this level should primarily be to introduce learners to key concepts and help them to engage with
the elements of the unit. Therefore emphasis should be on encouraging learners to explore the
applications of economic analysis to explain the implications of market structure, price setting and
changes in the factors affecting these to the performance of individual businesses. The learner will also be
encouraged to conduct their own research to complement, extend and apply the core teaching. This will
provide scope for learners to undertake their own analyses and draw appropriate conclusions. This in turn
will offer an opportunity for learners to benefit from presenting their findings, discussing them with their
peers and assessing what improvements can be made from this critical review.
• Presenting foundational material on market structure and price determination and their implications for
the performance of individual businesses
• Giving direction to learners in terms of how and where to research
• Acting as a sounding board at different stages of the learning process
• Assisting with calculations and their interpretation
• Enabling learners to organise presentations and/or group discussions
For best results it is recommended that the teaching and learning activities are informed by the following:
Independent research carried out using a variety of sources to enhance the learning opportunities for
learners.
Studies of real examples of markets, pricing and business performance
Scenarios and case studies based on real examples that are current and topical. These can be
provided by either the learner or the tutor
Suggested Assignments
A list of suggested assignments methods are listed below in order for learners to practice and demonstrate
to their lecturer that they are effectively learning the content. Unit criteria has been provided for your
reference.
Learners demonstrate how supply and demand operates in competitive 1.1, 1.2, 1.3
markets to determine the prices of the goods they buy and sell and the 2.2
implications of this for their financial performance. Within this they consider the
elasticity of supply and demand and the impact of changes to prices.
Theoretical arguments are supported by empirical examples.
7
Essay: Market barriers, changes and flexibility over time
Learners explain the meaning of barriers to entry and exit to markets and assess 2.1, 2.3, 3.1
the implications for price determination in markets where barriers are 3.2, 3.3
significant. Differences in the potential for adjustment in the short and long term
are considered. The impact of economic, social, political and technological
changes on markets and their associated barriers are explained.
Project: Case study of markets, pricing and change
Learners undertake a comprehensive case study on a particular market and 1.1, 1.2, 1.3
one or more businesses operating within this market. They consider to what 2.1, 2.2, 2.3
extent different barriers to entry and exit are present within the market, the 3.1, 3.2, 3.3
degree to which monopoly or monopsony are present and how this affects the
price for those selling and buying in this market. In considering the implications
for financial performance of businesses within this marketplace they also assess
the likely price elasticity of supply and demand. Finally they consider how
economic, social, political and technological changes have and may again
affect the market.
Resources
Books
Beridze, L. ed., 2008. Economics of Emerging Markets. New York: Nova Science Publishers.
Hoag, A. J. and Hoag, J. H., 2006. Introductory Economics. 4th ed. New Jersey; London: World Scientific
Publishing.
Kates, S., 2011. Free Market Economics: an Introduction for the General Reader. Cheltenham: Edward Elgar
Publishing.
Langlois, R. N. and Robertson, P. L., 1995. Firms, Markets and Economic Change: A Dynamic Theory of
Business Institutions. London; New York: Routledge.
Websites
Economics Online, n.d. Market Equilibrium. Economics Online. [online] Available at:
<http://economicsonline.co.uk/Competitive_markets/Market_equilibrium.html> [Accessed 26 October
2012].
Experimental Economics Center. [online] Available at: <www.econport.org/> [Accessed 26 October 2012].
Riley, G., updated 2012. AS & A2 Economics Revision Notes – Index. Tutor2U. [online] Available at:
<www.tutor2u.net/economics/revision-notes/index.html> [Accessed 26 October 2012].
Other
Council for the Curriculum, Examinations and Assessment, 2011. CCEA GCE Economics Diagram Bank: AS1:
Markets and Prices. Council for the Curriculum, Examinations and Assessment. [online] Available at:
<www.rewardinglearning.org.uk/common/includes/microsite_doc_link.aspx?docid=8653-1> [Accessed 26
October 2012].
8
Business Management - Certificate
Unit Aim
This unit will enable the learner to understand the impact of different organisational structures and cultures
on individuals and organisations. It will also enable the learner to understand the impact of ethical practice
and social responsibility on individuals and organisations.
Unit Overview
This unit is for those who want to develop a career in business and administration and who wish to
understand functions and roles in business organisations. Learners will study the structure and key functional
areas of a business organisation and how they interact with each other. They will identify roles and
responsibilities at different levels and within different types of organisational structures. The unit will enable
learners to understand the importance of organisational objectives and the impact of internal and
external stakeholders on a business.
Learning Outcomes
Unit Criteria
In order to pass this unit, the evidence that the learner presents for assessment needs to demonstrate that
they can meet the learning outcomes for the unit. The unit criteria demonstrate the level of achievement
required to meet the learning outcomes. Learners can be assessed on all or a combination of this unit
criteria. Learners must learn the full unit content as any part of this can be tested during the assessment.
Unit Criteria
Learning Outcomes Unit Criteria To achieve a merit grade the To achieve a distinction
learner will be assessed on all grade the learner will be
The learner will: To achieve a pass grade the or a combination of the assessed on all or a
learner will be assessed on all following criteria: combination of the
or a combination of the following criteria:
following criteria:
1. Understand how 1.1 Identify and explain the Provide a detailed Provide a
businesses/organisations main functional areas explanation of functional comprehensive
operate within broad within typical business areas within typical business explanation of
functional areas organisations organisations commenting on functional areas within
their importance to the typical business
business as a whole organisations assessing
their importance to the
business as a whole
1.2 Analyse how the main
functional areas interact
9
2.2 Analyse how structures Provide a clear and detailed Provide a clear and
can affect responsibility account of how structures comprehensive
and authority affect responsibility and account of how
authority, commenting on the structures affect
implications of different responsibility and
structures authority, assessing the
implications of different
structures
3. Understand 3.1 Identify and evaluate Evaluate in detail the roles Evaluate
organisational roles and roles and responsibilities at and responsibilities of different comprehensively the
how these inter-relate different levels of an levels of an organisational roles and responsibilities
organisational structure structure of different levels of an
organisational structure
Unit Content
In order for the learner to meet each learning outcome, they need to be taught the following:
Learning Outcome 1: Understand how businesses/organisations operate within broad functional areas
10
d. Distribution and sales to ensure that customers are informed about deliveries that are due and
possible delays
e. Sales and marketing so that staff are aware of any particular promotional activities
f. Critical importance of finance in relation to all functions of the organisation for monitoring income
and expenditure and having an oversight of progress in achieving financial targets
g. Key relationship between customer service, sales and marketing where customer feedback feeds
into future product or service development and future sales
h. Key relationship between human resources and other functional areas in handling recruitment,
career progression and continuing professional development (CPD)
Learning Outcome 4: Understand the different types of stakeholders in a business and describe their
potential impact on a business
11
e. Connected stakeholders are shareholders, suppliers and customers i.e. those which have dealings
with the organisation
f. External stakeholders are not directly linked but may be influenced by its activities such as
government, pressure groups, local councils and communities
g. Impact of stakeholders on a business
h. Internal stakeholders may be involved in co-ordination, funding, resourcing of activities of an
organisation
i. Connected/external stakeholders contribute feedback, views and experiences about the
organisation
Teaching Guidance
Delivery Guidance
It is recommended that the teaching/learning approach for this unit is participative and interactive and
that this is achieved by relating basic concepts to real-life business examples. The role of the tutor at this
level should primarily be to introduce learners to key concepts and help them to engage with the elements
of the unit. Therefore emphasis should be on encouraging learners to explore what is meant by
organisational structure, the distinction between different functions within an organisation, key roles and
responsibilities and the impact of stakeholders. The learner should be encouraged to engage with and
understand concepts by conducting their own basic research and applying their learning to practical
case studies. Opportunities to present aspects of their work, discuss this with peers and assess the
improvements that can be made will be particularly valuable as learners progress.
12
The activities recommended may include:
Presenting foundational material on organisational structures, business objectives, functional areas and
key roles and responsibilities
Giving direction to learners in terms of what, how and where to research
Acting as a sounding board at different stages of the learning process
Assisting with interpretation of material gathered from research
Enabling learners to organise presentations and/or group discussions
For best results it is recommended that the teaching and learning activities are informed by the following:
Supported research carried out using a variety of sources to enhance the learning opportunities for
learners
Studies of real examples of the different aspects of marketing
Using practical examples to demonstrate key concepts
Suggested Assignments
A list of suggested assignments methods are listed below in order for learners to practice and demonstrate
to their lecturer that they are effectively learning the content. Unit criteria has been provided for your
reference.
Learners to research a medium or large business and produce a report of the 1.1, 1.2
results, including the following: 2.1, 2.2
3.1
The size and scale of the business organisation, 4.1, 4.2, 4.3
The main purpose of the business, 5.1
The main goals and objectives of the business,
How the business priorities appear to be linked to the goals and
objectives,
The main functional areas and key roles and responsibilities,
The type of structure e.g. hierarchical or matrix, and
How the functional areas interact to achieve the goals and objectives
of the business.
Learners are required to develop a presentation and discuss the impact of 1.1, 1.2
different types of stakeholders on a business organisation. 4.1, 4.2, 4.3
Written notes
Each learner will provide written notes of the key points of their presentation
and the discussion.
13
Case Study Project: Comparison between Organisational Structures of
Businesses
1.1, 1.2
Learners to undertake a case study of two organisations with different 2.1, 2.2
organisational structures, based on real or hypothetical businesses. For each 3.1
example learners should construct an organisational chart representing the 5.1
structure of the organisation, with roles and responsibilities, accompanied by a
written commentary of each type of structure. This should include an
exploration of the nature of the structure (whether it hierarchical or matrix), the
relationship between the different functions of the organisation, and the way
in which the structure, functions and job roles help the business organisation to
achieve its objectives.
Resources
Books
Appleby, R. C., 1994. Modern Business Administration. 6th ed. Harlow: Pearson Education.
Child, J., 1984. Organization: A Guide to Problems and Practice. 2nd ed. London: Paul Chapman.
Drucker, P., 2003. On The Profession of Management. Boston: Harvard Business School Press.
Hall, D., Jones, R., Raffo, C. and Anderton, A., 2008. Business Studies. 4th ed. Harlow: Pearson Education.
Marcousé, I. et al., 2011. Business Studies for A Level. 4th ed. London: Hodder Education.
Mintzberg. H., 1990. The Structuring of Organizations: A Synthesis of the Research. London: Prentice Hall.
Websites
Governance Learning Network, 2010. Business Functions and Organisations. Slideshare. [online] Available
at: <www.slideshare.net/GovernanceHome/business-functions-and-organisation> [Accessed 8 November
2012].
Suttle, R., n.d. Functional Areas of a Typical Business. Chron. [online] Available at:
<http://smallbusiness.chron.com/functional-areas-typical-business-10024.html> [Accessed 8 November
2012].
Ashwin, A., 2007. People in Business 1: Organisational Structures. Bized. [online] Available at:
<www.bized.co.uk/educators/level2/people/activity/people12.htm> [Accessed 8 November 2012].
The Times 100, n.d. People Theory: Roles of People in Organisations. The Times 100. [online] Available at:
<http://businesscasestudies.co.uk/business-theory/people/roles-of-people-in-organisations.html>
[Accessed 8 November 2012].
Stakeholders
Markwell, S., 2010. Understanding Organisations: Identifying and managing Internal and External
Stakeholder Interests. HealthKnowledge. [online] Available at: <www.healthknowledge.org.uk/public-
health-textbook/organisation-management/5b-understanding-ofs/managing-internal-external-
stakeholders> [Accessed 8 November 2012].
Worthington, I., 2009. Stakeholders and How They Affect Your Business. Improvement and Innovation.
[online] Available at: <www.improvementandinnovation.com/features/article/stakeholders-and-how-they-
affect-your-business/> [Accessed 8 November 2012].
14
Business Management - Certificate
Unit Aim
The aim of the unit is to enable learners to understand basic concepts, frameworks and models for
strategic planning, including tools used to support strategic choice and decision making. It will also help
them to appreciate how strategy is implemented and the factors that influence its effectiveness.
Unit Overview
This unit is for those who want to develop a career in business and administration and who wish to
understand the role of strategic planning in business. Learners will study a variety of strategic analysis
techniques and tools, including how they are used and why they are important to strategic decision
making. Learners will also explore the structure and use of business plans, as well as looking at how business
change strategies are managed and implemented.
Learning Outcomes
Unit Criteria
In order to pass this unit, the evidence that the learner presents for assessment needs to demonstrate that
they can meet the learning outcomes for the unit. The unit criteria demonstrate the level of achievement
required to meet the learning outcomes. Learners can be assessed on all or a combination of this unit
criteria. Learners must learn the full unit content as any part of this can be tested during the assessment.
Unit Criteria
Learning Outcomes Unit Criteria To achieve a merit grade the To achieve a distinction
learner will be assessed on all grade the learner will be
The learner will: To achieve a pass grade the or a combination of the assessed on all or a
learner will be assessed on all following criteria: combination of the
or a combination of the following criteria:
following criteria:
1. Understand the concept 1.1 Explain the purpose of Provide a detailed Provide a
of strategy and strategic strategic planning explanation of strategic comprehensive
planning planning purposes, explanation of strategic
highlighting some practical planning purposes,
examples referring to practical
examples from different
business sources
15
2.2 Explain the difference
between internal and
external strategic analysis
16
4.3 Explain the factors that Describe in detail the factors Describe
may affect the that may affect the comprehensively the
effectiveness of strategy effectiveness of strategy factors that may affect
implementation implementation, highlighting the effectiveness of
some practical examples strategy
implementation,
referring to practical
examples from different
business sources
4.4 Explain the importance of
leading and managing
strategic change
4.5 Describe management Describe in detail the Describe
strategies that may be management strategies that comprehensively the
used to successfully may be used to successfully management strategies
implement and manage implement and manage that may be used to
strategic change strategic change, highlighting successfully implement
some practical examples and manage strategic
change, referring to
practical examples from
different business
sources
Unit Content
In order for the learner to meet each learning outcome, they need to be taught the following:
Learning Outcome 2: Understand the various frameworks and models used in internal and external
strategic analysis
3. How techniques are used in business environment analysis (STEEPLE/PEST, SWOT and competitor
analysis)
a. Definition of each process
17
b. Social, Technological, Environmental, Economic, Political, Legal and Ethical (STEEPLE), Political,
Economic, Social and Technological (PEST), Strengths, Weaknesses, Opportunities and Threats
(SWOT)
c. Purposes of each process
d. Stages involved for each process
e. Methods and techniques used
f. Models and templates
g. Comparing uses in different examples from business
Learning Outcome 3: Understand how the Ansoff Matrix is used in strategic choice and decision making.
18
e. Identifying capabilities and resources needed in business strategy
Learning Outcome 4: Understand the process of implementing strategy and the factors affecting the
effectiveness of implementation
Teaching Guidance
Delivery Guidance
It is recommended that the teaching/learning approach for this unit is participative and interactive. While
the teacher should provide an overview of the key elements of each part of the unit, the emphasis should
be on encouraging learners to look at a range of strategic and business planning techniques used in a
variety of different business contexts. Learners should be encouraged to share ideas in order to discuss and
analyse key points before drawing their own conclusions.
19
For best results it is recommended that the teaching and learning activities are informed by the following:
Suggested Assignments
A list of suggested assignments methods are listed below in order for learners to practice and demonstrate
to their lecturer that they are effectively learning the content. Unit criteria has been provided for your
reference.
Each learner should be asked to research the various frameworks and models 1.1, 1.2,
used in strategic planning and business plans. They are asked to prepare a 2.1, 2.2, 2.3, 2.4, 2.5, 2.6, 2.7, 2.8
presentation to contribute to a group discussion on the theories and practices 3.1, 3.2, 3.3
of business strategy and planning. The learner should make written notes of key 4.1, 4.2, 4.3, 4.4, 4.5
discussion points.
For example, each learner is asked to gather information from websites and
printed texts. They should also obtain copies or examples of strategic and
business plans for small, medium or large businesses. Where possible, copies can
be shared amongst the group to increase the pool of resources.
Written notes
Each learner will provide written explanations of the practice of the various
concepts and techniques applied to business strategy and planning, including
examples from existing business practice.
Essay or Written Answers: Business Strategy and Planning Theories and Practice
Essay or responses to a set of questions about the concepts and practice of 1.1, 1.2,
business strategy and planning, including relevant examples to illustrate how 2.1, 2.2, 2.3, 2.4, 2.5, 2.6, 2.7, 2.8
they are applied in different contexts. 3.1, 3.2, 3.3
4.1, 4.2, 4.3, 4.4, 4.5
Project: Business Strategy and Planning Theories and Practice
Each learner obtains or is given three different business examples. They are also 1.1, 1.2,
given a scenario of working for a change management consultant who is 2.1, 2.2, 2.3, 2.4, 2.5, 2.6, 2.7, 2.8
helping the three business to develop their strategy and business plan. The 3.1, 3.2, 3.3
learner is asked to provide relevant background information about strategic 4.1, 4.2, 4.3, 4.4, 4.5
analysis techniques (e.g. Ansoff’s Matrix) to provide information about the
businesses.
For example the learner might be given:
20
Resources
Books
Campbell, D., Edgar, D. and Stonehouse, G., 2011. Business Strategy: An Introduction. 3rd ed. Basingstoke;
New York: Palgrave Macmillan.
Evans, V., 2011. Financial Times Essential Guides: Writing a Business Plan: How to Win Backing to Start Up Or
Grow Your Business. Harlow: Person Education.
McKeown, M., 2012. The Strategy Book. Harlow; New York: Pearson Education.
Oslen, E. 2012. Strategic Planning Kit for Dummies. 2nd ed. Hoboken; Chichester: John Wiley & Sons.
Tiffany, P., Peterson, S. D. and Barrow, C. 2010. Business Plans for Dummies 2nd ed. Chichester: John Wiley &
Sons.
Journals
International Journal of Business Strategy, International Academy of Business and Economics. [online]
Available at: <www.iabe.org/domains/iabe/journal.aspx?journalid=7> [Accessed 12 December 2012].
Journal of Small Business and Entrepreneurship (JSBE). Canadian Council for Small Business &
Entrepreneurship (CCSBE). [online] Available at: <www.jsbe.com/> [Accessed 10 December 2012].
Websites
Changing Minds, n.d. Change Techniques. Changing Minds. [online] Available at:
<http://changingminds.org/disciplines/change_management/creating_change/creating_change.htm>
[Accessed 31 October 2012].
Chapman, A., 2009. Strategy Implementation and Realisation. Businessballs.com. [online] Available at:
<www.businessballs.com/businessstrategyimplementation.htm> [Accessed 31 October 2012].
Chapman, A., 2012. Business Plans and Marketing Strategy. Businessballs.com. [online] Available at:
<www.businessballs.com/freebusinessplansandmarketingtemplates.htm> [Accessed 31 October 2012].
Gov UK, updated 2012. Guide: Write a Business Plan. Gov UK. [online] Available at: <www.gov.uk/write-
business-plan> [Accessed 30 October 2012].
My Strategic Plan, n.d Internal and External Analysis. My Strategic Plan. [online] Available at:
<http://mystrategicplan.com/resources/internal-and-external-analysis/> [Accessed 31 October 2012].
Chapman, A., 2009. Porter’s Five Forces Model. Businessballs.com. [online] Available at:
<www.businessballs.com/portersfiveforcesofcompetition.htm> [Accessed 31 October 2012].
Chapman, A., 2010. PEST Market Analysis Tool. Businessballs.com. [online] Available at:
<www.businessballs.com/pestanalysisfreetemplate.htm> [Accessed 31 October 2012].
21
Chapman, A., 2012. SWOT Analysis. Businessballs.com. [online] Available at:
<www.businessballs.com/swotanalysisfreetemplate.htm> [Accessed 31 October 2012].
Mind Tools, n.d. Porter’s Five Forces: Assessing the Balance of Power in a Business. Mind Tools. [online]
Available at: <www.mindtools.com/pages/article/newTMC_08.htm> [Accessed 31 October 2012].
Mind Tools, n.d. The Ansoff Matrix. Mind Tools. [online] Available at:
<www.mindtools.com/pages/article/newTMC_90.htm> [Accessed 31 October 2012].
NetMBA Business Knowledge Center, 2010. The BCG Growth-Share Matrix. NetMBA Business Knowledge
Center. [online] Available at: <www.netmba.com/strategy/matrix/bcg/> [Accessed 31 October 2012].
Other
McNamara, C., n.d. Developing Your Strategic Plan. Free Management Library. [online] Available at:
<http://managementhelp.org/freebusinesstraining/strategic-planning.htm> [Accessed 31 October 2012].
Silva, N., 2012. SWOT Analysis vs PEST Analysis and When to Use Them. Creately Diagramming &
Collaboration. [online] Available at: <http://creately.com/blog/diagrams/swot-analysis-vs-pest-analysis/>
[Accessed 31 October 2012].
22
Business Management - Certificate
Unit Aim
This unit provides the learner with the knowledge, understanding and skills related to managing budgets
and the role of financial information in decision making.
Unit Overview
The unit is designed for those seeking a career in business and administration. It explores the reasons why
businesses need financial information and the different audiences this needs to serve, how budgets are
developed, analysed and revised and how costs can be used to determine pricing and hence break-
even in a business. The limitations of financial information and cost-based pricing are also considered.
Learning Outcomes
Unit Criteria
In order to pass this unit, the evidence that the learner presents for assessment needs to demonstrate that
they can meet the learning outcomes for the unit. The unit criteria demonstrate the level of achievement
required to meet the learning outcomes. Learners can be assessed on all or a combination of this unit
criteria. Learners must learn the full unit content as any part of this can be tested during the assessment.
Unit Criteria
Learning Outcomes Unit Criteria To achieve a merit grade the To achieve a distinction
learner will be assessed on all grade the learner will be
The learner will: To achieve a pass grade the or a combination of the assessed on all or a
learner will be assessed on all following criteria: combination of the
or a combination of the following criteria:
following criteria:
23
2.2 Analyse existing budgets Provide a detailed and Provide a well-
accurate analysis of an evidenced argument
existing budget by analysing for actions a business
the difference between could take to improve
expected and actual its financial
income/expenditure performance
2.3 Develop a new budget
Unit Content
In order for the learner to meet each learning outcome, they need to be taught the following:
1. Budgetary techniques
a. Centralised and decentralised budgets
b. Identifying types of control systems for responsibility centres: revenue, expense, profit and investment
c. Forecasting
d. Short-term target setting
e. Monitoring and reviewing budgets in a systematic way
24
2. Analysing budgets
a. Analysing predicted and actual income and expenditure to identify differences
b. Variance between expected and actual income/expenditure
c. Explaining the reasons for variance, taking remedial action and improving future estimates
3. Developing budgets
a. Types of budget: short/long term, basic/current, fixed/flexible, functional/master
b. Revenue and expense budgets
c. Capital expenditure budgets
d. Cash budgets
e. Budgets for different situations, such as zero, fixed and historical budgets
Learning Outcome 3: Understand how costs are used in making pricing decisions
2. Break-even analysis
a. Variable, semi-variable and fixed costs
b. Selling price and sales volumes
c. Total costs compared to sales revenue
d. Graphical representation
e. Time period
f. Assumptions and limitations of analysis
g. Margin of safety
3. Pricing decisions
a. Cost-based pricing
b. Profit margin
c. Price-based costing and competitor prices
d. Marginal pricing and impact of discounting
Teaching Guidance
Delivery Guidance
It is recommended that the teaching/learning approach for this unit is participative and interactive and
that this is achieved by relating basic concepts to real-life business examples. The role of the tutor at this
level should primarily be to introduce learners to key concepts and help them to engage with the elements
of the unit. Therefore emphasis should be on encouraging learners to explore the applications of financial
information, budgets and pricing in practical settings. The learner will also be encouraged to conduct their
own research to complement, extend and apply the core teaching. This will provide scope for learners to
undertake their own analyses and draw appropriate conclusions. This in turn will offer an opportunity for
learners to benefit from presenting their findings, discussing them with their peers and assessing what
improvements can be made from this critical review.
• Presenting foundational material on the use and value of financial information, budgets and pricing
• Giving direction to learners in terms of how and where to research
• Acting as a sounding board at different stages of the learning process
• Assisting with calculations and their interpretation
• Enabling learners to organise presentations and/or group discussions
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For best results it is recommended that the teaching and learning activities are informed by the following:
Independent research carried out using a variety of sources to enhance the learning opportunities for
learners
Studies of real examples of financial information, budgets and pricing calculations
Scenarios and case studies based on real examples that are current and topical. These can be
provided by either the learner or the tutor
Suggested Assignments
A list of suggested assignments methods are listed below in order for learners to practice and demonstrate
to their lecturer that they are effectively learning the content. Unit criteria has been provided for your
reference.
Learners review the needs of external stakeholders and the management of a 1.1, 1.2, 1.3
business to have access to financial information on the business to assist in
planning, performance management and meeting regulatory requirements.
Within each of these areas they are expected to recognise the potential
limitations of financial information.
Learners are required to use real or hypothetical data from which to develop 2.1, 2.2, 2.3
a budget, assess actual against expected performance, suggest how the
business may need to act to improve its performance and indicate how the
budget would be adjusted to account for these changes.
Learners are required to use real or hypothetical data from which to assess the 3.1, 3.2, 3.3
direct and indirect costs of a product or service, use this and profit information
to set prices and conduct break-even analysis. Within this exercise they must
also recognise the assumptions built in to their analyses and how this
approach to pricing contrasts with market, competitive-based pricing.
Project: Financial information planning and pricing
Learners undertake a comprehensive case study on how an organisation can 1.1, 1.2, 1.3
use cost information to determine its prices, develop, analyse and adjust 2.1, 2.2, 2.3
budgets, and forecast and evaluate their performance using financial 3.1, 3.2, 3.3
information. The value and limitations of financial information for internal and
external stakeholders is explained.
Resources
Books
Dyson, J. R., 2010. Accounting for Non-Accounting Students. 8th ed. Harlow: Financial Times Prentice Hall.
Irwin, D., 1995. Financial Control for Non-Financial Managers. Harlow: Pearson Education.
Quinn, M., 2010. Book-keeping and Accounts for Entrepreneurs. Harlow: Pearson Education.
Walker, J., 2009. Accounting in a Nutshell: Accounting for the Non-Specialist. 3rd ed. Amsterdam; Boston;
London: Elsevier.
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Journals
Websites
Fast4Cast, 2007. Break Even Analysis. Fast4Cast. [online] Available at: <http://fast4cast.com/break-even-
calculator.aspx> [Accessed 25 October 2012].
The Times 100, n.d. Planning a Budget: A Davis Service Group Case Study. The Times 100. [online] Available
at: <http://businesscasestudies.co.uk/davis-service-group/planning-a-budget/introduction.html>
[Accessed 25 October 2012].
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Business Management - Certificate
Unit Aim
This unit aims to enable learners to understand the principles of marketing, what is meant by the term
‘marketing mix’ and the factors that influence buyer behaviour.
Unit Overview
This unit covers the principles, purpose and approach of marketing. Particular emphasis is given to
identifying and responding to customer needs and preferences. This includes consideration of concepts
such as the marketing mix, the value of market segmentation to inform marketing effort, the nature of the
market and how organisations respond to this and an understanding of buyer behaviour.
Learning Outcomes
Unit Criteria
In order to pass this unit, the evidence that the learner presents for assessment needs to demonstrate that
they can meet the learning outcomes for the unit. The unit criteria demonstrate the level of achievement
required to meet the learning outcomes. Learners can be assessed on all or a combination of this unit
criteria. Learners must learn the full unit content as any part of this can be tested during the assessment.
Unit Criteria
Learning Outcomes Unit Criteria To achieve a merit grade the To achieve a distinction
learner will be assessed on all grade the learner will be
The learner will: To achieve a pass grade the or a combination of the assessed on all or a
learner will be assessed on all following criteria: combination of the
or a combination of the following criteria:
following criteria:
1. Understand the principles 1.1 Discuss the principles and Provide a compelling Explain why meeting
of marketing purpose of marketing statement of the need for customer needs leads to
customer focus a marketing focus on
customer benefits rather
than product features
1.2 Describe the areas of
marketing
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3.2 Discuss the elements that
influence the organisation
in the marketplace
4. Understand the main 4.1 Discuss the need for Describe in detail the role of Describe comprehensively
features of buyer market segments market research in helping to the ways in which of
behaviour define different segments of marketing may need to
the market respond to different
segments of the market
Unit Content
In order for the learner to meet each learning outcome, they need to be taught the following:
2. Areas of marketing
a. Market research, how to establish whether there is potential for a product or service
b. Marketing strategy, the steps that will be taken to take to product or service to market, e.g.
branding
c. Different ways of communicating with customers or potential customers
d. Promotion and advertising
e. Monitoring and evaluating marketing
1. Marketing mix
a. The four ‘P’s (i.e. Price, Place, Promotion, Product)
b. The importance of having the right product, sold at the right price, in the right place, using suitable
promotional activities
c. Identifying the unique selling point (USP) or proposition of a product or service
d. Market position, marketing strategy and objectives
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e. Profitability; product range and opportunities for cross-selling
f. Product position in the market
g. Competitive position i.e. extent of competition from similar products or services, including imports
internationally
h. Legislation and regulatory environment
i. Changes affecting the market e.g. availability of raw materials, seasonal factors where relevant,
trends
1. Market segments
a. Market segmentation as technique used to enable a business to better target its products or services
at the right customers
b. Segments identified through market research
c. Segments linked to geographic, demographic, behavioural and psychographic features in
consumer and business markets
d. Criteria for market segmentation
e. Targeted marketing
f. Market map and market gaps
2. Buyer behaviour
a. Factors that influence consumer buying behaviour
b. Social factors such as the groups to which customers belong (market segments) and social status
c. Importance of the family unit as significant buying organisation in society
d. Business and consumer buying behaviour
e. Awareness of need, information search, evaluation of alternatives, purchase decision
Teaching Guidance
Delivery Guidance
It is recommended that the teaching/learning approach for this unit is participative and interactive and
that this is achieved by relating basic concepts to real-life business examples. The role of the tutor at this
level should primarily be to introduce learners to key concepts and help them to engage with the elements
of the unit. Therefore emphasis should be on encouraging learners to explore what is meant by marketing,
the distinction between a product/sales orientation and a market orientation and the benefit this can offer
for customers and businesses. The learner should be encouraged to engage with and understand
concepts by conducting their own basic research and applying their learning to practical case studies.
Whilst the emphasis may be on ensuring a sound grasp of basic concepts, marketing offers a ready
environment within which learners can recognise the value and learn the skills of presentation. Presenting
aspects of their work, discussing this with peers and assessing the improvements that can be made are
important opportunities for learning that will be particularly valuable as learners progress.
Presenting foundational material on what marketing is (and is not), the critical importance of the
customer and their needs and how businesses can progress potential customers from awareness to
purchase
Giving direction to learners in terms of what, how and where to research
Acting as a sounding board at different stages of the learning process
Assisting with interpretation of material gathered from research
Enabling learners to organise presentations and/or group discussions
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For best results it is recommended that the teaching and learning activities are informed by the following:
Supported research carried out using a variety of sources to enhance the learning opportunities for
learners
Studies of real examples of the different aspects of marketing
Using practical examples to demonstrate key concepts
Suggested Assignments
A list of suggested assignments methods are listed below in order for learners to practice and demonstrate
to their lecturer that they are effectively learning the content. Unit criteria has been provided for your
reference.
Learners explain the need for businesses to convey the benefits of what they 1.1, 1.2
have to offer to potential customers and why this requires an understanding of 2.1, 2.2
customer needs and preferences. Within this they set out the stages of
marketing activity, from market research through to making the sale. This
includes an appreciation of the marketing mix of product, price, promotion
and place, how this can help define a unique selling point and influence the
overall marketing strategy.
Presentation and notes: The marketplace, buyer behaviour and segmentation
Learners are required to develop a presentation and discuss the factors that 3.1, 3.2
define a marketplace and how businesses position themselves and their 4.1, 4.2
products/services within this market.
Written notes
Each learner will provide written explanations of the practice of the various
concepts and techniques used in the marketing environment, including
examples from existing business practice.
Learners undertake a case study, based on a real or hypothetical business. 1.1, 1.2
Within this they explain how the basic principles of marketing and the 2.1, 2.2
marketing mix are to be applied in practice. This includes an assessment of the 3.1, 3.2
marketplace, customer needs and preferences, the relative position of the 4.1, 4.2
organisation within the market and the implications of market segmentation
for marketing strategy.
Resources
Books
Appleby, R. C., 1994. Modern Business Administration. 6th ed. Harlow: Pearson Education.
Hall, D., Jones, R., Raffo, C. and Anderton, A., 2008. Business Studies. 4th ed. Harlow: Pearson Education.
(See Chapter 2 for material on marketing).
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Marcousé, I. et al., 2011. Business Studies for A Level. 4th ed. London: Hodder Education. (See Section 3 for
material relevant to this unit).
Moore K. and Pareek, N., 2010. Marketing: The Basics. 2nd. ed. London; New York: Routledge.
Perreault, W. D., Cannon, J. P. and McCarthy, E. J., 2010. Basic Marketing. 18th ed. New York; London:
McGraw-Hill.
Journals
Websites
Chartered Institute of Marketing, n.d. Buyer Behaviour. Chartered Institute of Marketing. [online] Available
at: <www.cim.co.uk/marketingplanningtool/tech/tech1.asp> [Accessed 26 October 2012].
Riley, J., updated 2012. Buyer Behaviour – The Decision-Making Process. Tutor2U. [online] Available at:
<www.tutor2u.net/business/marketing/buying_decision_process.asp> [Accessed 26 October 2012].
Further useful material from this and other authors is available from the Tutor2u site:
Tutor2U. [online] Available at: <www.tutor2u.net> [Accessed 2 November 2012].
Another site with multiple relevant material is The Times 100. The following link is to a generic page for
marketing. Search beyond this page for basic theory and case study based resources:
The Times 100, n.d. Business Studies Teacher Resources by Topic – Marketing. The Times 100. [online]
Available at: <http://businesscasestudies.co.uk/teacher-resources/marketing.html> [Accessed 26 October
2012].
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