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Accredited
Oxford Cambridge and RSA
GCSE (9-1)
Specification
BUSINESS
J204
For first assessment in 2019
5 Appendices 28
5a. Overlap with other qualifications 28
5b. Accessibility 28
5c. Quantitative skills requirement 29
Summary of updates 30
OCR’s GCSE (9–1) in Business should enable learners • develop as effective and independent students,
to: and as critical and reflective thinkers with
enquiring minds
• know and understand business concepts,
business terminology, business objectives, the • use an enquiring, critical approach to make
integrated nature of business activity and the informed judgements
impact of business on individuals and wider
society • investigate and analyse real business
opportunities and issues to construct
• apply knowledge and understanding to well-argued, well-evidenced, balanced and
contemporary business issues and to different structured arguments, demonstrating
types and sizes of businesses in local, national their depth and breadth of understanding
and global contexts of business
• develop as enterprising individuals with the • develop and apply quantitative skills relevant
ability to think commercially and creatively to to business, including using and interpreting
demonstrate business acumen, and draw on data.
evidence to make informed business decisions
and solve business problems
This section is intended for teachers using OCR GCSE (9–1) in Business (J204) for first teaching from
(9–1) in Business. It highlights the differences between September 2017:
the GCSE in Business Studies (J253) and the GCSE
• Assessment is at the end of the course • The assessment consists of two exams,
• The three Assessment Objectives remain 90 minutes each
similar with 35%, 35%, 30% allocations • There is no longer any controlled assessment
• Content and structure are familiar although or pre-release stimulus material
updated and streamlined • Explicit application and assessment of
• Key topic areas have stayed the same quantitative skills (minimum of 10% of overall
• Engaging introduction to Business. marks) at the level of Key Stage 3 Maths
• Both question papers have a section with
multiple choice questions
• Greater focus on business decision making.
Business 2:
• Operations operations,
finance and
• Finance influences on
50%
• Influences on business business (02)* of total
• The interdependent 80 Marks GCSE
nature of business 1 Hour 30 Minutes
paper
2
and businesses operating in local, national and global • use business terminology to identify and
contexts. Learners must develop an understanding of explain business activity
how these contexts impact on business behaviour.
• apply business concepts to familiar and
Learners should be able to make decisions based on unfamiliar contexts
the analysis and evaluation of information provided.
Learners should be able to recognise the use and • develop problem-solving and decision making
limitations of qualitative and quantitative data in skills relevant to business
business decision making.
• investigate, analyse and evaluate business
Knowledge and understanding opportunities and issues
Learners are required to apply their knowledge and • make justified decisions using both qualitative
understanding to business decision making. This and quantitative data, including its selection,
includes: interpretation, analysis and evaluation and
the application of appropriate quantitative
• the interdependent nature of business activity, skills.
influences on business, business operations,
finance, marketing and human resources and Please see Appendix 5c for details of the range and
how these interdependencies underpin extent of quantitative skills required.
business decision making
Business 1: business activity, marketing and people (01) Business 2: operations, finance and influences on business (02)
1. Business activity 1.1 The role of business enterprise and 4. Operations 4.1 Production processes
entrepreneurship 4.2 Quality of goods and services
1.2 Business planning 4.3 The sales process and customer service
1.3 Business ownership 4.4 Consumer law
1.4 Business aims and objectives 4.5 Business location
1.5 Stakeholders in business 4.6 Working with suppliers
1.6 Business growth
2. Marketing 2.1 The role of marketing 5. Finance 5.1 The role of the finance function
2.2 Market research 5.2 Sources of finance
2.3 Market segmentation 5.3 Revenue, costs, profit and loss
2.4 The marketing mix 5.4 Break-even
5.5 Cash and cash flow
3. People 3.1 The role of human resources 6. Influences on business 6.1 Ethical and environmental considerations
3.2 Organisational structures and different ways 6.2 The economic climate
of working 6.3 Globalisation
3.3 Communication in business
3.4 Recruitment and selection
3.5 Motivation and retention
3.6 Training and development
3.7 Employment law 7. The interdependent nature of business
7
2
2
2c. Content of Business 1: business activity, marketing and people (J204/01)
8
This component introduces learners to business concepts and issues concerning assessed in component 01. Throughout this component learners will need to
the activities of a business. It explores the purpose and role of a business from consider how different contexts affect business decisions.
first spotting an enterprising opportunity through to the growth of an established
business. It takes a closer look at the role of marketing and human resources. 1. Business activity
In this section, learners explore how and why businesses start and grow.
There are three sections covering content – section 1: business activity, section 2:
Knowledge and understanding of business activity must include the following:
marketing and section 3: people. Content from these three sections will be
1.1 The role of business • The purpose of business activity and enterprise spotting an opportunity, developing an idea for a business, satisfying
enterprise and the needs of customers
entrepreneurship
• Characteristics of an entrepreneur creativity, risk taking, determination, confidence
• The concept of risk and reward
1.2 Business planning • The purpose of planning business activity reducing risk, helping a business to succeed
• The role, importance and usefulness of a business identifying markets, help with obtaining finance, identifying
plan resources a business needs to operate, achieving business aims and
objectives
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GCSE (9–1) in Business
GCSE (9–1) in Business
Version 1.4 © OCR 2023
1.3 Business ownership • The features of different types of business ownership sole traders, partnerships, private and public limited
companies
• The concept of limited liability
• The suitability of differing types of ownership in different start-ups and established businesses
business contexts
1.4 Business aims and • The aims and objectives of business profit, survival, growth, providing a service, market share
objectives
• How and why objectives might change as businesses evolve
• Why different businesses may have different objectives
1.5 Stakeholders in • The roles and objectives of internal and external owners, employees, customers, suppliers, government, local
business stakeholder groups community
• The effect business activity has on stakeholders
• The effect stakeholders have on business
1.6 Business growth • Organic growth increasing output, gaining new customers, developing new
products, increasing market share
• External growth mergers, takeovers - including horizontal, vertical,
diversification
9
2
2
2. Marketing
10
In this section, learners explore the purpose and role of marketing within take. Knowledge and understanding of marketing must include the
business and how it influences business activity and the decisions businesses following:
2.1 The role of marketing • The purpose of marketing within business the importance to a business of identifying and
understanding its customers, informing customers,
increasing sales
2.2 Market research • The purpose of market research identifying and understanding customer needs
• Primary research methods questionnaires, interviews, trialling, focus groups
• Secondary research sources newspapers and magazines, census, websites, internal
data
• How appropriate different methods and sources of
market research are for different business purposes
• The use and interpretation of qualitative and
quantitative data in market research
2.3 Market segmentation • The use of segmentation to target customers age, gender, income, location, lifestyle
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GCSE (9–1) in Business
GCSE (9–1) in Business
Version 1.4 © OCR 2023
2.4 The marketing mix • The ‘four Ps’ of the marketing mix and their importance price, product, place, promotion
• Product design, invention, innovation
• Product - stages of the product life cycle introduction, growth, maturity, decline
• Pricing methods skimming, cost-plus, penetration, competitor, promotional
• Promotion - point of sale price reductions, loss leaders, competitions, free samples
• Promotion - advertising social media, websites, print media, television, radio
• Place - distribution of products and services digital and physical distribution channels
• How the four Ps of the marketing mix work together
• The use of the marketing mix to inform and implement
business decisions
• Interpretation of market data changes in demand, target market and market share, changes
in product and effects of promotion
11
2
2
3. People
12
In this section, learners explore the purpose and role of human resources businesses take. Knowledge and understanding of people must include
within business and how it influences business activity and the decisions the following:
3.1 The role of human resources • The purpose of human resources in business identifying and meeting the human resource needs of a
business
3.2 Organisational structures and • Different organisational structures tall, flat
different ways of working
• The terminology of organisation charts span of control, chain of command, delegation,
subordinates, authority
• Why businesses have different organisational
structures importance of effective communication, different job roles
and responsibilities, different ways of working
• Ways of working
full-time, part-time, flexible working, temporary work,
working from home, working whilst mobile, self-employed
3.3 Communication in business • Ways of communicating in a business context letter, email, text, phone, meeting/presentation, social
media, website
• The importance of business communications
• The influence of digital communication on
business activity
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GCSE (9–1) in Business
GCSE (9–1) in Business
Version 1.4 © OCR 2023
3.4 Recruitment and • Why businesses recruit replace employees who leave, business growth, skill gaps
selection
• The use of different recruitment methods to meet different internal methods, external methods, job description and
business needs person specification
• Methods of selection CV, application form, letter of application, interviews, tests,
group activities, references
3.5 Motivation and • Financial methods of motivation pay, bonuses, profit sharing, fringe benefits
retention
• Non-financial methods of motivation praise, award schemes, working environment
• The importance of employee motivation improved employee performance, helps employee retention
• The importance of employee retention already familiar with business and customers, saves time and
expense of recruitment
3.6 Training and • Different training methods induction, on-the-job, off-the-job
development
• Why businesses train their workers development of the business, improve productivity, skill
shortages, customer service, motivation and retention
• Staff development vocational and academic qualifications, apprenticeships
• T he benefits to employees and businesses of staff
development
3.7 Employment law • T he impact of current legislation on recruitment and d
iscrimination, employees’ right to a contract, holidays,
employment hours of work
13
2
2
2c. Content of Business 2: operations, finance and influences on business (J204/02)
14
This component takes a closer look at the role of operations and finance and business. Content from all these sections will be assessed in component 02.
introduces learners to external influences on business. It explores the importance Learners will also be required to draw on content from Business 1: business activity,
of these influences and how businesses change in response to them. Finally, marketing and human resources to answer synoptic questions in section B of the
learners will use content from both component 01 and component 02 to make component 02 examination.
connections between different elements of the subject.
Throughout this component learners will need to consider how different contexts
There are four sections covering content – section 4: operations, section 5: finance, affect business decisions.
section 6: influences on business and section 7: the interdependent nature of
4. Operations
In this section, learners explore what business operations involve, their role within business activity. Knowledge and understanding of business operations must
the production of goods and the provision of services, and how they influence include the following:
4.1 Production processes • Different production processes and their impact on job, batch, flow
businesses
• The influence of technology on production and the automation, computers and robotics
impact on businesses
4.2 Quality of goods and services • The concept of quality
• Methods of ensuring quality quality control, quality assurance
• The importance of quality in both the production of reputation of the business, to gain and retain customers,
goods and the provision of services reduce product returns and recalls
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GCSE (9–1) in Business
GCSE (9–1) in Business
Version 1.4 © OCR 2023
4.3 The sales process and customer • Methods of selling e-commerce, face to face, telesales
service
• The influence of e-commerce on business activity
• The importance to a business of good customer to gain and retain customers
service including after-sales service
• The contribution of product knowledge and customer
engagement to good customer service
4.4 Consumer law • The impact of consumer law on businesses reputation of the business, safety and satisfactory
quality of goods
4.5 Business location • Factors influencing business location costs, the proximity to market, labour and materials
4.6 Working with suppliers • The role of procurement identifying goods and services to buy, choosing
suppliers, ordering goods and services, receiving
deliveries from suppliers
• The impact of logistical and supply decisions on time, length of supply chain, reliability of supply, costs,
businesses customer service
15
2
2
5. Finance
16
In this section, learners explore the purpose of the finance function, its role in
business and how it influences business activity. Knowledge and understanding of
finance must include the following:
5.1 The role of the finance • The purpose of the finance function provide financial information, support business planning
function and decision making
• The influence of the finance function on business activity
5.2 Sources of finance • The reasons businesses need finance establishing a new business, funding expansion, to run
the business, recruitment, marketing
• Ways of raising finance loan, overdraft, trade credit, retained profit, sale of
• How and why different sources of finance are suitable for assets, owners’ capital, new partner, share issue,
new and established businesses crowdfunding
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GCSE (9–1) in Business
GCSE (9–1) in Business
Version 1.4 © OCR 2023
5.3 Revenue, costs, profit and • The concept of revenue, costs and profit and loss in
loss business and their importance in business decision-
making
• The different costs in operating a business fixed, variable, total
• Calculation of costs and revenue
• Calculation of profit/loss gross profit, net profit
• Calculation and interpretation of profitability ratios gross profit margin, net profit margin
• Calculation and interpretation of average rate of
return
5.4 Break-even • The concept of break-even total costs = total revenue
• Simple calculation of break-even quantity
• The usefulness of break-even in business decision- informs marketing and planning decisions
making
5.5 Cash and cash flow • The importance of cash to a business providing liquidity, enables business to meet short-term
debts/expenses
• The difference between cash and profit
• The usefulness of cash flow forecasting to a business planning tool, anticipates periods of cash shortage, enables
remedies to be put in place for shortages, provides targets
• Completion of cash flow forecasts
17
2
2
6. Influences on business
18
6.1 Ethical and environmental • Ethical considerations and their impact on businesses treatment of workers/suppliers/customers, sourcing of
considerations materials, marketing decisions
• Environmental considerations and their impact on sustainability, waste disposal, pollution, climate change
businesses
6.2 The economic climate • The economic climate and its impact on businesses changing levels of consumer income and unemployment
6.3 Globalisation • The concept of globalisation
• The impact of globalisation on businesses the growth of multinational companies, influences on
business location, international branding, how
businesses compete internationally
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GCSE (9–1) in Business
7. The interdependent nature of business
GCSE (9–1) in Business
Version 1.4 © OCR 2023
In this section, learners will need to use content from both component 01 and parts of the GCSE (9–1) course and apply their knowledge to business decision-
component 02 to make connections between different elements of the subject. making within a business context. Their knowledge and understanding must
They will need to draw together knowledge, skills and understanding from different include the following:
Content
• the interdependent nature of business operations, finance, marketing and human resources within a business context
• how these interdependencies underpin business decision making
• the impact of risk and reward on business activity
• the use of financial information in measuring and understanding business performance and decision making.
19
2
2d. Prior knowledge, learning and progression
No prior learning or knowledge of business is The qualification provides the ideal foundation for
required. Learners who are beginning a GCSE (9–1) in learners to progress to AS level and A Level Business
Business course might have studied some aspects of or other areas of vocational study.
personal finance during PSHE.
There are a number of Business specifications at
2
OCR. Find out more at: www.ocr.org.uk/Business
Command words
3
Section B in both components is assessed using the
command words below to signify the highest level of
skill required.
Identify and state requires learners to demonstrate Discuss and evaluate encompass the ability to explain
knowledge. and to analyse and refers to the ability to weigh up
both sides of the argument, or compare alternatives,
Explain refers to the ability to demonstrate and/or and to come to a supported judgement.
apply knowledge and understanding.
Recommend refers to the ability to make a supported
Calculate and complete refer to the ability to apply judgement.
quantitative skills as outlined in Appendix 5c of the
specification.
This component is worth 80 marks, split into two Section B includes short, medium and extended
sections and assesses content from business activity, response style questions which use stimulus material
marketing and human resources. that draws on real business contexts. This section
of the component is worth 65 marks.
Section A contains multiple choice questions. This
section of the component is worth 15 marks.
Assessment Objective
AO3
Analyse and evaluate business information and issues to demonstrate understanding of 3
business activity, make judgements and draw conclusions
In addition, learners will be required to demonstrate and not in isolation. At least 10% of the total marks for
competence in the quantitative skills within the the qualification will reward the use of quantitative
context of other areas of the GCSE (9–1) in Business skills as detailed in Appendix 5c.
The information in this section is designed to give an More information about these processes and
overview of the processes involved in administering deadlines involved at each stage of the assessment
this qualification so that you can speak to your cycle can be found in the Administration area of the
examinations officer. All of the following processes OCR website.
require you to submit something to OCR by a specific
deadline. OCR's Admin overview is available on the OCR
website at www.ocr.org.uk/administration.
4a. Pre-assessment
Estimated entries
Estimated entries are your best projection of the should be submitted to OCR by the specified
number of learners who will be entered for a deadline. They are free and do not commit your
qualification in a particular series. Estimated entries centre in any way.
4
Final entries
Final entries provide OCR with detailed data for each Final entries must be submitted to OCR by the
learner, showing each assessment to be taken. It is published deadlines or late entry fees will apply.
essential that you use the correct entry code,
considering the relevant entry rules. All learners taking a GCSE (9–1) in Business must
be entered for J204.
Business 1: business
External
01 activity, marketing and
Assessment
people
J204 Business
Business 2: operations,
External
02 finance and influences
Assessment
on business
The Head of Centre is required to provide a Any failure by a centre to provide the Head of Centre
declaration to the JCQ as part of the annual NCN Annual Declaration will result in your centre status
update, conducted in the autumn term, to confirm being suspended and could lead to the withdrawal of
that the centre is meeting all of the requirements our approval for you to operate as a centre.
detailed in the specification.
Private candidates
Private candidates may enter for OCR assessments. Private candidates need to contact OCR approved
centres to establish whether they are prepared to
A private candidate is someone who pursues a course host them as a private candidate. The centre may
of study independently but takes an examination or charge for this facility and OCR recommends that the
assessment at an approved examination centre. A arrangement is made early in the course.
private candidate may be a part-time student,
someone taking a distance learning course, or Further guidance for private candidates may be found
someone being tutored privately. They must be based on the OCR website: http://www.ocr.org.uk
in the UK.
GCSE (9–1) qualifications are graded on the scale: Only subjects in which grades 9 to 1 are attained will
9–1, where 9 is the highest. Learners who fail to reach be recorded on certificates.
the minimum standard of 1 will be Unclassified (U).
Results are released to centres and learners for The following supporting information will be
information and to allow any queries to be resolved available:
before certificates are issued.
• raw mark grade boundaries for each
Centres will have access to the following results component
information for each learner:
• weighted mark grade boundaries for the
• the grade for the qualification qualification.
• the raw mark for each component Until certificates are issued, results are deemed to be
provisional and may be subject to amendment.
• the total weighted mark for the qualification.
A learner’s final results will be recorded on an OCR
certificate. The qualification title will be shown
on the certificate as ‘OCR Level 1/Level 2 GCSE (9–1)
4
in Business’.
4f. Malpractice
Any breach of the regulations for the conduct of Detailed information on malpractice can be found in
examinations and non-examined assessment may the JCQ publication Suspected Malpractice in
constitute malpractice (which includes Examinations and Assessments: Policies and
maladministration) and must be reported to OCR as Procedures.
soon as it is detected.
5b. Accessibility
Reasonable adjustments and access arrangements The GCSE (9–1) qualification and subject criteria have
allow learners with special educational needs, been reviewed in order to identify any feature which
disabilities or temporary injuries to access the could disadvantage learners who share a protected
assessment and show what they know and can do, characteristic as defined by the Equality Act 2010.
without changing the demands of the assessment. All reasonable steps have been taken to minimise any
Applications for these should be made before the such disadvantage.
examination series. Detailed information about
eligibility for access arrangements can be found
in the JCQ Access Arrangements and Reasonable
Adjustments.
5
The list below states the range and extent of Interpretation and use of quantitative data in
mathematical techniques appropriate to GCSE (9–1) business contexts to support, inform and justify
in Business. Learners must draw on the knowledge business decisions, including:
and understanding in section 2 of the specification to
apply these skills to relevant business contexts. • information from graphs and charts
• revenue, costs and profit • market data, including market share, changes
in costs and changes in prices. 5
• gross profit margin and net profit margin ratios
At least 10% of the total marks for the qualification
• average rate of return will reward the use of quantitative skills at a level of
demand which is not lower than that which is
• cash flow forecasts, including total costs, total expected of learners at Key Stage 3 as outlined in the
revenue and net cash flow. Department for Education’s document Mathematics
programmes of study: Key Stage 3, document
reference DFE-00179-2013.
February 2023 1.4 3 Assessment of GCSE (9-1) in Insertion of new section 3d.
Business Total qualification time
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