Business Studies 6-12
Business Studies 6-12
Business Studies 6-12
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BUSINESS STUDIES
CONTENTS
Page
INTRODUCTION 1
SYLLABUS AIMS 1
ASSESSMENT OBJECTIVES 2
SCHEME OF ASSESSMENT 3
CURRICULUM CONTENT 4
NOTES FOR GUIDANCE 9
RESOURCE LIST 30
TEACHERS’ RESOURCES 31
Exclusions
This syllabus must not be offered in the same session with the following syllabus:
INTRODUCTION
1.1 The aim of this syllabus is to enable Centres to develop Business Studies courses that are suitable both for
Advanced Level candidates and for those seeking a more limited study of the topic.
• to follow a staged assessment route to the Advanced Level by taking the Advanced Subsidiary
qualification in an earlier examination. Subject to satisfactory performance, such candidates are then
only required to take the final part of the assessment
SYLLABUS AIMS
The syllabus is intended to lead to courses that will encourage students:
2.1 To understand and appreciate the nature and scope of business, and its role in society.
2.2 To develop critical understanding of organisations, the markets they serve and the process of adding value.
This should involve consideration of the internal workings and management of organisations and, in
particular, the process of decision-making in a dynamic external environment.
2.3 To be aware that business behaviour can be studied from a range of stakeholders including customer,
manager, creditor, owner/shareholder and employee.
2.4 To be aware of the economic, environmental, ethical, governmental, legal, social and technological issues
associated with business activity.
The emphasis should be on the application of concepts and issues to the local context where appropriate.
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BUSINESS STUDIES 9707 A/AS LEVEL 2009
ASSESSMENT OBJECTIVES
Candidates are expected to demonstrate the following skills:
3.2 Application of this knowledge and critical understanding to problems and issues which are from both
familiar and unfamiliar situations
3.4 Evaluation of reliability of material, checking that conclusions drawn are consistent with given information
and discriminating between alternative explanations and assessing the role of the main concept and models
in business analysis.
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BUSINESS STUDIES 9707 A/AS LEVEL 2009
SCHEME OF ASSESSMENT
ADVANCED SUBSIDIARY QUALIFICATION (Core syllabus)
The Advanced Level syllabus INCLUDES the Core (AS) syllabus as well as the additional Advanced Level
material.
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BUSINESS STUDIES 9707 A/AS LEVEL 2009
CURRICULUM CONTENT
The Advanced Level syllabus will INCLUDE the Core (AS) syllabus as well as the additional Advanced
Level material:
Advanced Subsidiary Syllabus = Core
Advanced Level Syllabus = Core + Extension topics
- The Internet
- Stakeholders
Organisation behaviour, method of operation Link between culture and business behaviour
2. People in Organisations
- The need for and nature of organisational structure - The need for and nature of organisational structure
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BUSINESS STUDIES 9707 A/AS LEVEL 2009
Leadership: qualities, styles, effectiveness, roles Appropriateness of leadership styles, informal leadership
- Management
- Business Communication
Purpose and functions of human resource management Labour/management relations: labour legislation,
collective bargaining, dispute settlement, promotion of
Labour/management relations: description of the role of co-operation between management and workforce, need
trade unions, reasons for joining a trade union for negotiation, evaluation of the role of trade unions
Training
3. Marketing
- The nature and definition of the market and the role - The nature and definition of the market and the role
of marketing of marketing
Marketing planning
Breadth of marketing activity and its relationship with Market segmentation – appropriateness in different
other business activities circumstances
Analysing the market: location, size, segmentation, Market research information: cost effectiveness
share, competitors (treated descriptively)
Market research and primary and secondary research, Forecasting (graphical and time series analysis)
methods of information gathering, sampling methods
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BUSINESS STUDIES 9707 A/AS LEVEL 2009
Demand concepts: determinants of demand; price Demand elasticities of income and promotional spending
elasticity of demand Evaluation of the elasticity technique
Product development
Value analysis
Product, price, distribution channels (place), promotion Marketing mix within the organisation and in the wider
and packaging environment
4. Operations Management
Relation of inputs to outputs subject to cost and other Capital versus labour intensity
constraints
Adding value
Stock management
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BUSINESS STUDIES 9707 A/AS LEVEL 2009
- Operational efficiency
Lean production – a descriptive treatment only Lean production – an evaluation, including the
appropriateness of JIT in different circumstances
- Production planning
5. Business Finance
- The need for business finance - The need for business finance
Capital expenditure and revenue expenditure Understanding the significance of the distinction between
revenue and capital expenditure.
Working capital – meaning and significance Control of working capital – stock, debtor and creditor
control
Short and long term sources, both internal and external Selecting the appropriate sources of finance - the
sources of finance to meet particular requirements
- Money and capital market institutions - Money and capital market institutions
Banks; specialist institutions World Bank and the International Monetary fund as
sources of finance for governments and certain business
Stock exchange projects
6. Business Accounting
- The need for business accounts - The foundations of accounting (not a core item)
The main users of published company accounts - internal Simple treatment of the main concepts and conventions
and external and limitations of these accounts used when drawing up published accounts - double
entry, accruals, money measurement, conservatism,
The distinction between financial and management realisation. No numerical questions will be set on these
accounting
- What the published accounts contain - What the published accounts contain
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BUSINESS STUDIES 9707 A/AS LEVEL 2009
The purpose and structure of balance sheets and profit Simple amendments of Balance Sheets and Profit and
and loss accounts. Loss accounts from given data. Construction of balance
sheets and profit and loss accounts
Balance Sheets - main asset and liability categories Cash Flow Statement - description of contents and
purpose
Profit and Loss Accounts - layout and content of simple
versions Depreciation provisions - diminishing balance method.
Comparison of the two methods
Depreciation provisions - straight line method only Goodwill
Stock valuation - net realisable value only
Profitability and liquidity ratios only. Calculation from Financial efficiency ratios - stock turnover and debtor
data. Interpretation of results days
Gearing ratio - long term capital divided by capital
employed
Forecasting cash flows Discounted cash flow and internal rate of return (no
Quantitative appraisal - payback and average rate of calculation of IRR required)
return only
Qualitative factors influencing the final investment
decision
Purpose of and construction of cash flow forecasts Ways of improving cash flow including debt factoring,
Ways of improving a business’ cash flow – description leasing, sale and leaseback and improved control of
only working capital. Evaluation of these
- Collection of information
Methods for the visual and graphical presentation of Appropriateness of methods of presentation
information for business: tables, graphs, piecharts, bar
charts, pictograms
Measures of central tendency Decision trees, time series analysis, network analysis,
cost benefit analysis, investment appraisal, linear
programming - blending technique
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NOTES FOR GUIDANCE
- The need for and nature of A simple understanding of the nature of economic activity and problem of choice
business activity
Level of activity: primary, A classification of economic activity, e.g. primary, secondary, tertiary with examples drawn from the candidate’s own country
secondary, tertiary
Sector: public; private Public and private sectors of the economy, with examples drawn from the candidate’s own country
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Legal structure: sole trader; Ability to exemplify each of these from local structures and activity, with examples drawn from the candidate’s own country
partnership; limited companies
(private and public) The legal structures which should be studied are:
the sole trader
partnerships
private limited companies
public limited companies
state owned enterprises
Main features should be known and main legal elements (no requirement to refer to particular legislation). Among the principles which should be
emphasised are:
divorce between ownership and control which develops as structures get larger and more complex
nature of legal personality and limited liability and why they are necessary
Free market enterprise. Other A simple awareness of free market economies and alternative economic systems
economic systems
CORE NOTES FOR GUIDANCE
Candidates will be expected to know the following:
Nature and scope of international Importance of both international trading links and multinational companies by reference to local businesses and their management
and multinational businesses Relationship between multinationals and the nation state
- Size of business
Measurement Measuring size of a business, different criteria available, e.g. labour force, capitalisation, output, market share and appropriateness of each to
Role of the small business both as an independent organisation and as a part of the structure of some industries, e.g. components firms in motor
industry, and in engineering generally
State intervention to assist and How the State intervenes to assist or constrain business of different sizes, with particular reference to local schemes of assistance and methods
constrain business of different of control
sizes
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- Business strategy
Objectives and constraints: Objectives are central to the whole process of decision-making. Candidates will be expected to have a knowledge of the hierarchy of objectives,
political, legal, physical, their nature and the level within the organisation responsible for selecting them
technological, social,
environmental, ethical, economic,
constraints. Public and private Survival and profit
sector business objectives Growth as the normal objective, but a particular business may have special objectives at particular times, e.g. market penetration with a new
product may be more important than immediate profit
Businesses do not always seek to maximise profits but may operate on the basis of a reasonable return on capital employed
Surrounding every decision, and hence bound to influence both the way in which it is made, how it can be implemented and its effectiveness, are
a number of constraints
Constraints
Political
Objectives of the State, e.g. stability, growth, standard of life, etc. and the way in which these may require the State to constrain decisions of
others. This can be illustrated from a few simple situations and referred to as appropriate in other stages of the syllabus, e.g. location,
CORE NOTES FOR GUIDANCE
Candidates will be expected to know the following:
employment policy, conditions of work, relationships with other businesses, marketing behaviour. This is closely related to:
Legal
The law intervenes both to support and constrain business activity
Main legal controls/examples of their local application. Particularly relating to: financial structure; employment; conditions of work; association
with other firms; location; marketing. In each of these areas candidates will need to know what is done, but there will be no requirement to quote
the actual provisions of the law
Social/Ethical/Environmental
Businesses work within an environment where there must be consideration for needs of people in the locality, e.g. pollution by waste material and
by noise, and for people in the nation as a whole, e.g. location decisions and decisions about monopoly and mergers. There must also be some
products and activities where State control is essential or legal restrictions must be considerable.
Candidates will be expected to have an appreciation of the ethical issues involved in business activity
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Economic
Macro economic policies of governments and how these may impact on business objectives and strategies including fiscal policy, monetary policy
and exchange rates
- The Internet
Business opportunities/threats; How the Internet changes the way businesses compete.
e-commerce, e-business Opportunities for greater market reach, product/service delivery and cost reduction.
Threats such as new market entrants (competition) and disintermediation.
E-commerce/e-business
Websites as a channel to market; trading online; using computerised information systems in business processes
CORE NOTES FOR GUIDANCE
Candidates will be expected to know the following:
- Stakeholders
Groups involved in and affected by business activity e.g. their roles, rights and responsibilities
Owners, employees, customers,
suppliers, community, Conflicting and common aims of stakeholders
government bodies
2. People in Organisations Students are required to understand the significance of various management and organisation structures for a business and its employees.
Students should recognise the opportunities and constraints, in relation to people in organisations, created by the business/legal environment, and
to appreciate the contributions of selected management theories.
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Approaches to organisational The relationship between the objectives of the business and its organisational structure. The need to develop a structure which will:
structures: functional, matrix be flexible
structures meet the needs of the business
permit growth and development
The way in which organisational structures change with growth. This can be well illustrated by following a one-man business, e.g. a small snack
bar, through stages of growth to a large catering business (or any other business line which it is easy to illustrate locally)
Features of a formal structure: Features of the formal structures should begin with an organisation chart. Candidates should be able to draw such a chart and comment upon
hierarchy, chain of command, some of its main features, including the following:
span of control, responsibility, Delegation: its meaning and advantages and disadvantages
authority, delegation Levels of hierarchy: superiors and subordinates
Chain of Command
Centralisation/decentralisation: what each means with some examples of local activities
Span of Control: what it means, with some clear examples
CORE NOTES FOR GUIDANCE
Candidates will be expected to know the following:
The need to motivate. Motivation Simple understanding of human needs. Maslow’s pyramid of needs may be found helpful in teaching this
theory
Which needs do people seek to satisfy in the work situation?
Motivation in theory: the works of leading theorists which might include Taylor, Mayo and Herzberg. Other relevant references will be credited
Motivation theory and its Discussion of the appropriateness of motivation theory and methods in different circumstances
application to HRM
- Management
- Human Resource In considering this section, emphasis should be placed upon local conditions and procedures, and what is sought is an understanding of the main
Management features of the HRM function in a business rather than any detailed knowledge of terminology or specific working practices
Purpose and functions of human Purpose – definition of the function
resource management
Role – human resource planning; recruitment, selection, training, induction, advisory role, guidance roles
Labour/management relations Description of the role of trade unions. Reasons for joining a trade union
3. Marketing Study should focus on the processes of finding and satisfying customers with an emphasis on marketing objectives, strategy and tactics.
- The nature and definition of The nature and definition of the market and of particular markets. Understanding of a market as a process rather than as a place. The role of
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the market and the role of marketing and the need for most firms in the modern world to be market-orientated
marketing
Breadth of marketing activity and Marketing and its inter-relationship with other business activities e.g. production
its relationship with other
business activities
Analysing the market: location, Analysing the market for a product. Whilst this can be taught in general theoretical terms, it is best taught with reference to specific local and
size, segmentation, share, national products and the way their markets were discovered and developed
competitors
Location of market and its nature e.g. consumers/producers; national/regional; international
Size of market The importance of growth decline, technological change, fashion, cultural and demographic factors
Segments Meaning of market segmentation. How markets can be segmented e.g. by region, by age, by income, by occupation, by ethnic or
other characteristics of the customer, etc.
Niche versus mass marketing Business benefits and limitations of niche v mass marketing
Market research and primary and Market research and market information Primary and secondary research to discover the market. Methods of information-gathering including
secondary research, methods of questionnaires, interviews and consumer panels. Methods of sampling and the appropriateness of each to different circumstances (random,
information gathering, sampling stratified and quota sampling only). Sample size
methods
Demand concepts: determinants Demand Determinants of demand. This should include an ability to produce local examples of products for which certain considerations are more
Product life cycle; implications for Product life cycle: what it is and implications of a known cycle for market strategy. How and why product life cycles vary
market strategy; research and
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development Candidates should understand this concept, the stages of a typical cycle, why cycles vary from one product to another. They should be able to
draw a likely life cycle for a particular product and explain the relative importance of each stage. They should be able to make reasoned
judgements of likely action at a given stage of a life cycle
Evaluation of the usefulness of Evaluation of the usefulness of the product life cycle concept to functional managers
product life cycle
Pricing decisions The influence of costs, competition, demand, market conditions, business objectives
Candidates should be aware of alternative pricing strategies and be able to argue a likely strategy in a given situation
competitive pricing
penetration price strategy
skimming price strategy
price discrimination
CORE NOTES FOR GUIDANCE
Candidates will be expected to know the following:
Distribution Channels of distribution available to a business. How the choice is made considering:
Products
costs involved
nature of markets and their location
present distribution methods of the firm
This study does not include a detailed consideration of retail and wholesale outlets but is primarily concerned with the distribution choice which is
open to the business, and the most appropriate channels for given circumstances
Candidates are expected to gain an understanding of marketing in an integrated context within the organisation and the wider environment. The
ability to consider the marketing mix of businesses in given situations and given budgets and to evaluate these in the light of business objectives
will also be required
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4. Operations Management Study should focus on the way organisations use inputs and manage business processes efficiently to satisfy customers.
- Nature of production This section should be closely linked with marketing and is best taught at the same time, since many of the issues overlap
Location; regional and Location - factors which determine (a) location and (b) relocation, and which factors are most important in given circumstances. The influence of
international location decisions the State and other constraining influences upon this decision
Relation of inputs to outputs Conversion of inputs to outputs and the concept of ‘added value’. Appreciation that all activity which adds to value of a product, or promotes its
subject to cost and other availability to the consumer, is production. How the local labour market can influence a firm’s ability to convert inputs into outputs.
constraints, adding value.
Local labour market
- Organising production What shall be produced? Consumer research; consideration of the resources available and what alternative uses they may have; the need for
flexibility and innovation in a rapidly changing world
The costs of production
Classification of costs – the economists’ view: Fixed; Variable; Marginal
– the producers’ view: Direct and Indirect
CORE NOTES FOR GUIDANCE
Candidates will be expected to know the following:
Candidates should be able to exemplify and define these, as well as to appreciate some of the problems associated with allocating costs in this
way
Work study An understanding of how work study might be implemented and the usefulness of the results of work study with particular reference to effect on
productivity and workforce motivation
The use of cost information The need for accurate cost data:
Pricing decisions
Calculating profits
Determining resources requirements at different levels of output
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Break-even analysis – graphical Break-even analysis. Using cost and revenue data to determine the minimum level of production necessary to break even in given circumstances
method and simple calculations and the probable profit thereafter. Using this knowledge to solve simple problems
Stock management Role and purpose of stock within businesses. Costs and benefits of holding stock and need to control stock levels. Appreciation of the essential
problem of minimising the stock holding costs whilst reducing the chance of a ‘stock out’ decision. Descriptive treatment of the main methods of
stock control including JIT and of the factors which a firm will take into account when determining the level of stock to be held
- Operational efficiency
Scale – economies and Appropriate methods of production and the scale of operations. Economies to be gained/diseconomies suffered as a result of large-scale
diseconomies of scale production; whether or not new technology should be implemented and the best way of effecting this; labour intensity; capital intensity
Methods of quality control What Quality Control is, i.e. determining a level of quality and working to those standards. Methods of Quality Control, e.g. inspection, testing,
random sampling, involving the workforce in making their own decisions about this. Quality assurance standards
Start up capital and expansion of The different circumstances in which new and existing business require finance
the business
Capital expenditure and revenue The distinction between capital and revenue expenditure and the reasons why different sources are likely to be appropriate
expenditure
Working capital The meaning and significance of working capital. The management of working capital – treated descriptively
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- Sources of finance
Short and long term sources The distinction between short and long term sources of finance. Internal sources - retained profits and sale of assets. External – share capital,
ordinary and preference (not cumulative); venture capital loan capital-overdrafts, bank loans, debentures
Internal and external sources
- Money and capital market Banks and specialist lending institutions such as Merchant banks and Finance houses. The functions of these and the services they provide.
institutions Capital market - the role and significance of the Stock Exchange - examples drawn from candidate’s own country are encouraged
6. Business Accounting Emphasis should be on the use of accounting and financial information as an aid to decision-making and financial control.
The main users of published Candidates should be aware of the main stakeholder groups with an interest in a business' published accounts. The specific information looked
company accounts – internal and for by each group and the limitations of the usefulness of published accounts: may be out of date by the time they are used, absence of qualitative
CORE NOTES FOR GUIDANCE
Candidates will be expected to know the following:
external and limitations of these data about company performance such as health and safety and environmental record, possibility of window dressing of accounts, no detailed
accounts accounts for each product and division
The distinction between financial A simple recognition of the main distinctions between management and financial accounting
The purpose and structure of Candidates will be expected to draw up straightforward accounts from given data and to amend existing accounts based on data given
balance sheets and profit and
loss accounts
Balance Sheets - main asset and Candidates should be able to understand the main sections of a published balance sheet
liability categories
Profit and Loss Accounts - layout The main features of published profit and loss accounts - turnover, cost of goods sold, overhead expenses, gross profit, net profit, dividends and
and content of simple versions retained profit. Simple amendments based on data given will be required
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Depreciation provisions - straight Depreciation - simple calculations of depreciation using the straight line method. An understanding of the importance of depreciation to both the
line method only profit and loss accounts and the balance sheet
- Analysis of published
accounts
Profitability and liquidity ratios The emphasis should be on the concepts of liquidity and profitability but calculations will be required. Liquidity – Acid test and current ratio. How a
only. Calculation from data. business might improve its liquidity
Interpretation of results Profitability - Return on capital employed, gross and net profit margins. Interpretation of results
- Investment appraisal
Forecasting cash flows An awareness of the uncertainty regarding the calculation of future cash flows
Quantitative appraisal – payback The calculation and evaluation of the payback and average rate of return techniques
and average rate of return only
Qualitative factors influencing the An understanding of the qualitative factors which might influence investment decisions in given situations
final investment decision
CORE NOTES FOR GUIDANCE
Candidates will be expected to know the following:
Cash flow forecasts Drawing up simple cash flow forecasts based on given data. Amending forecasts provided in the light of changes in business circumstances
Ways of improving a business’ Ways of increasing cash inflow from debtors or reducing cash outflow by reducing costs or extending credit periods – description only required
cash flow – description only
- Sources and reliability of The main national and international sources of information. Candidates do not need to be able to refer to sources in detail but are expected to
information make sensible suggestions as to where information may be sought in a given situation, and what its value and reliability may be. The limitations
of using purely numerate data when making decisions and of ways in which such data may be misused
- Presentation of information Main methods for the visual presentation of information i.e. tables, graphs, pie charts, bar charts and pictograms. The ability to interpret
information presented in different formats will be required, though there will be no requirement for candidates to construct pie charts, bar charts or
pictograms
- Data analysis and evaluation Calculation of the mean, median and mode from ungrouped frequency distributions. Calculation of the mean only from grouped frequency
distributions. The use of these measures in given situations
Measures of central tendency
1. Business and the In relation to various business situations, students are required to recognise potential conflict between the objectives of different stakeholder
Environment interests and suggest and evaluate resolutions to such conflict. Students should be required to recognise the inter-relationship between
objectives and an uncertain business environment and to devise and evaluate strategies which aim to anticipate, respond to and manage change.
- Size of Business
The integration of businesses Types of and reasons for integration of businesses: horizontal, vertical (forward and backward), lateral. Why integration often fails to achieve
through mergers and take-overs objectives
- Business strategy
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Conflict of business objectives Business objectives are not always of the same degree of importance and may even conflict from time to time, hence priorities have to be
established. The need for realistic objectives and for their communication to the workforce in a manner which they can understand and work
towards
The need to translate objectives into targets and budgets so that they may become effective planning bases
Business v State Consideration of the objectives of business as compared with those of the State, and conflicts and common interests which might be expected to
develop
Management by objectives Management by objectives as a means of ensuring and developing a more effective management team
Link between culture and Objectives and culture influence behaviour and decision-making both at individual level and at organisational level
business behaviour Understand that strategy arises from objectives
EXTENSION TOPICS NOTES FOR GUIDANCE
(IN ADDITION TO CORE Candidates will be expected to know the following:
SYLLABUS)
2. People in Organisations Students are required to understand the inter-relationships between organisational structure, leadership style and motivation in a business, and to
evaluate the implications of these for the effective planning and management of human resources.
Centralisation: the advantages and disadvantages of centralisation for management, workers including managers, and customers
Line and staff Line and staff: what is the distinction between line and staff, with appropriate examples; conflict between line and staff managers
Delegation: conflicts that might arise between control and trust: impact on motivation. The difference between authority and responsibility
Chain of command: problems associated with chain of command which is too long/too short
- Business Communication
Purpose of communication Purpose of communication, i.e. to ensure the desired response. Simple examples to show this
Barriers to effective Barriers to effective communication, attitudes, perceptions, noise, inappropriate media etc.
communication
Methods of communication Communication methods; all the standard methods considered: interpersonal, general, and to and within groups
Methods should be considered from the point of view of the strengths and weaknesses of each one, their relative appropriateness in different
circumstances and for different people
EXTENSION TOPICS NOTES FOR GUIDANCE
(IN ADDITION TO CORE Candidates will be expected to know the following:
SYLLABUS)
Lines of communication - one/two The appropriateness of communication methods and communication nets to different business circumstances
way; vertical/horizontal; formal
and informal networks Communication within a formal organisation. One-and two-way communication. Problems of communicating upwards; vertical and horizontal
communication. The development of informal channels of communication and the effect this may have on efficiency and the people involved.
Role of management in facilitating communication
- Human Resource
Management
Job evaluation The necessity for job evaluation and its link with payments, responsibilities, and recruitment. Work study, treated descriptively as a method of job
evaluation
Health and safety in the Health and Safety: what the law says, and some consideration of the problems of health and safety which must be faced on the shop floor. Role
workplace of personnel department with relation to this, particularly training, education, provision of facilities, dealing with problems
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Training Training: an evaluation of different training methods and the importance of training in establishing a flexible workforce
3. Marketing Students should be able to analyse and evaluate the potential of different marketing strategies, tactics and techniques for enabling business to
identify and adapt to changing market opportunities and achieve their objectives.
Marketing planning A detailed statement of the company’s market strategy. The benefits of having a detailed plan
Market research information: cost Issues of cost, effectiveness and reliability in data collection
effectiveness (treated
descriptively)
EXTENSION TOPICS NOTES FOR GUIDANCE
(IN ADDITION TO CORE Candidates will be expected to know the following:
SYLLABUS)
Forecasting (graphical and time Forecasting Need for forecasts in order to plan. The information upon which forecasting can be based. Graphical and trend analysis methods of
series analysis) forecasting. Simple moving average calculations to establish trends and seasonal variations
Demand elasticities of income Elasticity of demand (income, cross and promotional spending). Simple calculation and interpretation of results. Significance of demand
and promotional spending elasticities to marketing decisions
Product development The development of a product from original concept. Sources of new product ideas. The importance of research and development
Boston Matrix Product portfolio analysis – evaluation of the usefulness of the Boston Matrix
- Marketing strategy
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Marketing mix within the Evaluation of a marketing plan in relation to objectives and the wider environment, e.g. competitors and the economy and the need for a co-
organisation and in the wider ordinated marketing mix
environment
The need for strategy to be based Market strategies should be focused towards achieving marketing objectives
on marketing objectives
4. Operations Management Students should analyse and evaluate the use of different operations management tools to enhance decision-making in order to improve
efficiency and quality.
- Nature of production This section should be closely linked with marketing and is best taught at the same time, since many of the issues overlap
The production process The processes of production from research and development through to the final product. Link up here with value analysis considered earlier and
with work study
Capital versus labour intensity An understanding of the benefits and limitations of capital and labour intensive production processes. An ability to justify the appropriateness of
each method in a given situation
EXTENSION TOPICS NOTES FOR GUIDANCE
(IN ADDITION TO CORE Candidates will be expected to know the following:
SYLLABUS)
- Organising production
Scale of operation Discuss and justify how a business might decide to organise its productive function in a given situation; Kaizen – continuous improvement
Production methods An evaluation of the appropriateness of job, batch and flow methods in different situations
Approaches to costing: absorption Absorption costing Nature of this technique involving allocation of all costs to units of output. Circumstances in which this method is appropriate
costing, contribution costing
(including the solution of Contribution costing Nature of this technique based only on the variable costs of production. Consideration of situations for which this costing
numerate problems) approach is suitable. Understanding of limitations of this approach and situations in which it would not be used. Simple calculations involving
Evaluation of costing approaches accept or reject order decisions
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Continuous improvement, training Total Quality Management (TQM). Kaizen groups – continuous improvement
and development. TQM and QA
Standards, benchmarking The importance of benchmarking in setting standards
Whilst candidates should appreciate the need for Quality Control and the general methods which may be employed, the mathematics of the
methods will not be required
- Production planning
Network analysis (CPA) An understanding of the main elements of a network diagram i.e. activities, dummy activities and nodes. Calculation of minimum project duration
and identification and significance of ‘critical path’
CPA – calculation and application Calculation of total and free float. The importance of project management and how both total float and free float might be used
of activity float times
EXTENSION TOPICS NOTES FOR GUIDANCE
(IN ADDITION TO CORE Candidates will be expected to know the following:
SYLLABUS)
5. Business Finance Emphasis should be on the different sources of business finance and the suitability of each in different circumstances.
Capital v revenue expenditure Understanding the significance of the distinction between revenue and capital expenditure
- Sources of finance
Selecting the appropriate sources Candidates will be expected to have a sound grasp of all sources of business finances and to evaluate the appropriateness of each of these in
of finance different business circumstances
The factors influencing the choice Candidates will be expected to discuss the factors influencing the final choice of sources of finance to be used in different business circumstances
of finance e.g. cost, flexibility, need to retain control, use to which finance is to be put. Importance of gearing
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6. Business Accounting Students should use a range of performance measures critically and evaluate the appropriateness of different financial techniques in shaping
decision-making in the context of wider strategic objectives of business.
Simple treatment of the main Definitions only will be required. No numerical questions will be set on these
concepts and conventions used
when drawing up published
accounts – double entry,
EXTENSION TOPICS NOTES FOR GUIDANCE
(IN ADDITION TO CORE Candidates will be expected to know the following:
SYLLABUS)
accruals, money measurement,
conservatism, realisation. No
numerical questions will be set on
these
- What the published accounts Candidates will not be expected to have knowledge of complex accounts or partnership accounts
contain
Depreciation provisions – An evaluation of the two depreciation methods. Simple calculations will be required but the calculation of the percentage needed for diminishing
diminishing balance method. balance will not be required
Comparison of the two methods
Stock valuation – net realisable LIFO and FIFO valuation of stocks will not be examined
value only
- Analysis of published
accounts
Financial efficiency ratios - stock A thorough understanding of the uses and limitations of ratio analysis will be expected. Candidates will be examined on the meaning of ratio
turnover and debtor days. results and on how the financial efficiency, gearing and investor ratios might be changed as a consequence of management action e.g. deciding
Gearing ratio - long term capital to raise capital from share issue rather than loans or a decision to raise the dividend payment whilst profits are not rising
divided by capital employed.
Investors ratios – dividend yield,
dividend cover. The limitations of
ratio analysis. Trend analysis of
ratios and inter firm comparisons
EXTENSION TOPICS NOTES FOR GUIDANCE
(IN ADDITION TO CORE Candidates will be expected to know the following:
SYLLABUS)
- Investment appraisal
Discounted cash flow and internal The calculation of NPV will be examined from simple data. The calculation of IRR will not be examined but a descriptive understanding of the
rate of return (no calculation of result will be expected. Evaluation of all four approaches to investment appraisal. Recognition of the importance of qualitative factors in the
IRR required) decision e.g. business objectives and the degree of risk acceptable to managers
The purpose of budgets The purpose of budgetary control. Benefits and drawbacks from the use of budgets. How budgets may be established. Descriptive treatment of
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Interpretation of variances – Interpretation of variances - both adverse and favourable. Questions will not be set which require candidates to numerically analyse variances
adverse and favourable but not into price, volume etc. variances
price/volume analysis
7. Information for Decision- Emphasis will be placed on the use of models in business situations and an evaluation of their effectiveness.
making
- Presentation of information
- Data analysis and evaluation Most of the techniques required are included in other areas of the syllabus, for which guidance has been provided
Decision trees, time series Decision trees – the construction and use of decision trees, including simple probability
analysis, network analysis, cost
benefit analysis, investment Time series analysis (see Marketing section) – note construction of index numbers is not required
appraisal, linear programming –
EXTENSION TOPICS NOTES FOR GUIDANCE
(IN ADDITION TO CORE Candidates will be expected to know the following:
SYLLABUS)
blending technique Network analysis (see Operations Management section)
Linear programming – blending method. Candidates will be expected to solve simple problems using graphical analysis
RESOURCE LIST
Some of these can be used as textbooks for a course, while others are intended for reference and selected
readings. The inclusion of books in this list does not imply a recommendation. It is simply a list from which
teachers may like to select.
Endorsed Texts
Introductory Texts
rd
Peter Stimpson and IGCSE Business Studies, 3 edition, 2006, John Murray,
Karen Borrington 034092649
General Texts
M Barratt and A Mottershead A level Business Studies Students’ Book, 2000, Longman,
0582405475
Ian Dorton and Alex Smith Business Studies, 1998, Hodder & Stoughton, 0340674016
David Dyer, Ian Dorton, Peter Business Strategy for AS, 2000, Cambridge University Press,
Stimpson and David Grainger 0521786061
David Dyer and Peter Stimpson Business Strategy for A2, 2001, Cambridge University Press,
0521003652
D Needham and R Dransfield Business Studies, 2nd edition, 1994, Nelson Thornes, 0748718761
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BUSINESS STUDIES 9707 A/AS LEVEL 2009
People in Organisations
D S Pugh and D J Hickson Writers on Organisations, 5th edition, 1997, Penguin, 0140250239
M Fardon and D Cox Accounting, 2nd edition, 1998, Osborne Books, 1872962289
CD ROMS
P Stimpson, K Borrington, P Vasey IGCSE Business Studies, 2002, John Murray, 0719572673
Websites
www.bized.ac.uk
www.tt100.biz (formerly www.thetimes100.co.uk)
www.projectalevel.co.uk/business/index.htm
Magazines
Business Review, Philip Allan Updates, Market Place, Deddington, Oxfordshire OX15 0SE, tel. 01869 338652
fax 01869 337590, email sales@philipallan.co.uk, www.philipallan.co.uk
TEACHERS’ RESOURCES
Karen Borrington Teaching and Assessing Skills in Business Studies, 2004,
Cambridge University Press, 0521543665
I. Marcousé, I. Gillespie, B. Martin, Business Studies – Teachers’ Book, 2nd edition, 2002, Hodder and
M. Surridge, N. Wall, M. Brewer, A. Stoughton, 0340811110
Hammond, I. Swift and N. Watson
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