Term 1: What is business?
In this unit, students explore the fundamental nature and purpose of business. It delves into the core concepts of business activities, the role of businesses in society, and the distinction between various types of organizations, including sole traders, partnerships, and corporations. The unit emphasizes the importance of business objectives, such as profit maximization and social responsibility. Students will learn about the functions of business, including production, marketing, finance, and human resources, and how these functions interconnect to drive overall business success. The unit also highlights the significance of entrepreneurial skills and innovation in fostering competitive advantage.
After completion of Unit 1 - What is business, students will sit an end of topic assessment to check their knowledge. This will include multiple choice questions, 3 - 5 mark questions, as well as 9,16,25 mark questions
Markets
A place where buyers and sellers come together to exchange goods and services There is normally an exchange of money at a set price Price is normally set based on market forces i.e. the interaction between demand and supply Markets can be local/global
Mass Market
When a firm targets the whole of a market rather than a particular segment Mass marketing can give a business a high volume of sales but often at lower prices High degrees of competition may mean a firm has to use tactics such as branding to stand out
Business objective
A stated goal or target of a business (note: a business can have more than one objective!)
Social enterprise
A business that has objectives other than making profit. Part of a group of organisations in the not-for-profit sector
Aims / goals:
General statements of what a business intends to achieve. Precise details of those intentions are set out in objectives
Business unit strategy:
How a business attempts to compete successfully in a particular market
Corporate objectives:
Objectives that relate to the business as a whole. Usually set by top management.
Corporate strategy:
Concerned with the overall purpose and scope of the business activities
Cost leadership:
A business strategy concerned with aiming to be the lowest-cost producer in an industry. Usually requires exploitation of economies of scale
Functional objectives:
Set for each major business function designed to ensure that the corporate objectives are met
Mission statement:
A statement of the overall purpose of the business
Shareholder value:
Where shareholders earn a return from their investment which is greater than their required rate of return
SMART objectives:
Objectives that are more likely to be achieved because they are Specific, Measurable, Achievable, Realistic and Timed
Social responsibility:
The way in which a business meets its responsibilities to society as a key external stakeholder
SWOT analysis:
Assessment of the internal strengths and weaknesses of a business and the external opportunities and threats that the business needs to consider
Targets:
Similar to objectives. Targets are often set at an individual or team level
Financial Strategies and Accounts
Acid-test ratio: A liquidity ratio that looks at whether a business can pay for current liabilities out of cash and near-cash assets (it ignores the value of stocks)
Asset turnover:
A ratio that calculates the relationship between revenues and the total assets employed in a business
Assets:
Amounts owned by, or owed to a business
Average rate of return:
A measure of the total accounting return from an investment project
Balance sheet:
The financial statement that provides a snapshot of the assets and liabilities of a business at a particular date
Capital expenditure:
Expenditure on assets which are intended to be kept in the business (e.g. IT systems, machinery) rather than sold or turned into products
Cash flow targets:
Specific objectives set by a business for cash-flow generated by a business
Corporation tax:
The tax levied on the profits of companies. The percentage varies depending on the size of the profits earned; typically 20-30%
Cost minimisation:
A strategy of achieving the most cost-effective way of delivering goods and services to the required level of quality
Creditor days:
A ratio that estimates the average period (in days) taken to settle amounts owed by a business to suppliers
Develop the individual:
Students will look at the different motive and characteristics of individuals and firms that will enable success. Different forms of businesses will have different aims and objectives and students will explore that in various business context
Create a supportive community:
Students will be working in different groups and on an individual level to explore how firms and business leaders of today can influence us as potential customers
Term 2: Managers, leadership and decision making
This unit focuses on the various forms of business ownership and their implications for decision-making and operations. Students examine sole proprietorships, partnerships, limited liability companies, and public versus private sector organizations. The advantages and disadvantages of each structure are analyzed, particularly in relation to liability, taxation, and regulatory requirements. Additionally, the unit addresses how business ownership can influence a company's culture, strategies, and growth potential. By understanding these differences, students gain insight into how organizations position themselves in the market and respond to challenges
After completion of Unit 1 - What is business, students will sit an end of topic assessment to check their knowledge. This will include multiple choice questions, 3 - 5 mark questions, as well as 9,16,25 mark questions
Competitive Advantage
A competitive advantage is an advantage over competitors gained by offering consumers greater value, either by means of lower prices or by providing greater benefits and service that justifies higher prices.
Obsolete
A product or service that is out of date or not used anymore.?
Consumer
Someone who buys and uses goods and services?
Original Idea
Ones that have not been used before to put a product or service into production.?
Financial Reward
Money received by an entrepreneur or investor when a business succeeds.?
Product
A product is anything that is capable of satisfying customer needs.?
Entrepreneur
Someone who creates a business and takes risks to start their business.?
Service
A service is an act that a business person carries out for you in exchange for money.?
Market Research
Gathering information about the market and customers needs and wants.?
Revenue Forecast
A prediction of future revenue based on expected sales.?
Investment
Putting money into a business with the intention of making a profit.?
Intuition
Knowing something instinctively or understanding something easily without conscious thought.?
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Develop the individual:
Students will learn what the role of a manager is, the importance of stakeholders to a business and tools that management can use to help them make better informed decisions.
Create a supportive community:
Students will work in groups to consider the different leadership types and the benefits and drawbacks in each case
Term 3: Decision making to improve marketing performance
In this unit, students delve into the principles of marketing and the importance of understanding consumer behavior. The unit outlines the marketing mix—product, price, place, and promotion—and how each element contributes to a business's overall marketing strategy. Students learn to conduct market research to gather data on consumer preferences and market trends, enabling them to make informed marketing decisions. Additionally, the unit explores digital marketing and its impact on consumer engagement, highlighting the need for businesses to adapt to an increasingly digital marketplace.
After completion of Unit 1 - What is business, students will sit an end of topic assessment to check their knowledge. This will include multiple choice questions, 3 - 5 mark questions, as well as 9,16,25 mark questions
The Marketing Mix
A combination of the four Ps of marketing Price, Product, Place, Promotion - used to attract customers.?
Price War
When competing businesses try to undercut each other by lowering prices. This leads to an ongoing battle where only the customer benefits, not the businesses.?
Brand Loyalty
A customers willingness to buy a product from a particular business rather than from its competitors.?
Market Share
The percentage of the total sales of a product in a market that is taken by one business in that market.
M-Commerce
Using mobile technologies, such as smartphones and tablets, to carry out business transactions.?
Recession
A period of economic decline characterised by the fact the economy has failed to grow for 6 consecutive months.?
Promotional Mix
The combination of promotional activities that a business uses to make customers aware of a product, with the aim of increasing sales.?
Business Plan
A document that outlines how an entrepreneur is going to set up a new business.
Budget
Pre-set financial targets for a business to achieve, like a sales budget, or abide by, such as an expenditure budget, in a given period of time.?
Bank Loan
A fixed sum of money lent by a bank to an individual or a business for a specific purpose, which must be repaid with interest in set payments over an agreed period of time.?
SMART Objective
Objectives that are Specific, Measurable, Achievable, Realistic, and Time-bound.
Develop the individual:
Students will be introduced to marketing techniques that help businesses influence potential customers as well as looking at how effective management of the labour force will help productivity and motivation
Create a supportive community:
Student's will have the knowledge to be able to discuss how key functional areas within a business help different businesses in different industries
Term 4: Decision making to improve operational performance
This unit centers on the operational aspects of businesses, emphasizing the processes involved in transforming resources into goods and services. Students explore different production methods, including batch, flow, and job production, and assess how these methods affect efficiency and quality. The unit also covers supply chain management, inventory control, and the significance of technology in operations. By understanding operational processes, students can evaluate how businesses optimize resources, reduce costs, and enhance customer satisfaction through effective service delivery.
After completion of Unit 1 - What is business, students will sit an end of topic assessment to check their knowledge. This will include multiple choice questions, 3 - 5 mark questions, as well as 9,16,25 mark questions
Correlation:
A measure of how close the relationship it (positive or negative) between an independent variable and a dependent variable
Customer relationship management (CRM):
The process of building a long-term, profitable relationship between a business and its customers
Diversification:
The strategy of trying to enter new markets with new products (from Ansoff matrix)
Extrapolation:
The use of trends established by historical data to make predictions about future values
Growth rate:
The percentage growth over a particular period. Market growth rates are typically quoted in terms of percentage growth per year
Market analysis:
The process of analysing the size, structure and growth of a market in order to support marketing decisions
Market development:
A growth strategy where the business seeks to sell its existing products into new markets - e.g. exporting (from Ansoff matrix)
Market penetration:
A relatively low-risk growth strategy where a business focuses on selling existing products into existing markets (from Ansoff matrix)
Market share:
The proportion of a market revenue or sales volume that is captured by a business or brand
Marketing budget:
Specific amounts that are allocated to activities in the marketing plan
Marketing plan:
The actions that management intend to take via the marketing mix in order to achieve marketing objectives
Moving average:
A calculation that takes a data series and smoothes" the fluctuations in data to show a trend average
Product development:
A growth strategy where a business aims to introduce new products into existing markets (from Ansoff matrix)
Product positioning:
The way in which the marketing function tries to create an image or identity in the minds of the target market
Repositioning:
Changing the marketing mix for a product to appeal to a different market segment
Sales forecasting:
Techniques for estimating the likely demand (revenue and volume) for a product in future periods
Target market:
The market segment or segments which a business is attempting to enter with the chosen marketing mix
Test marketing;
Launching a new product or service in a limited part of the target market in order to gauge the viability of the product and assess the most appropriate marketing mix
Trend:
A general direction in which something tends to move
Develop the individual:
Students will be introduced to factors that impact a business and look at alternative options that a business can undertake. Students will develop analytical and evaluative skills to enable them to support their recommendations
Create a supportive community:
Through independent work, group work and class led discussion, students will have the confidence to discus and develop their business knowledge and apply to different scenarios
Term 5: Decision making to improve financial performance
This unit focuses on the financial aspects of business operations, including budgeting, forecasting, and financial analysis. Students learn about the importance of financial planning for ensuring business sustainability and growth. Key financial statements—such as income statements, balance sheets, and cash flow statements—are examined to assess business performance and make strategic decisions. The unit also covers the sources of finance available to businesses, evaluating the costs and benefits of different funding options, and the role of financial management in achieving business objectives.
After completion of Unit 1 - What is business, students will sit an end of topic assessment to check their knowledge. This will include multiple choice questions, 3 - 5 mark questions, as well as 9,16,25 mark questions
Profit quality:
The sustainability of profit from one period to the next. Higher quality profit is profit that is likely to be repeated rather than affected by one-off items
Profitability:
The amount of profit earned in a period (absolutely measure) or rate of profit earned compared with revenue (relatively measure)
Provisions:
Amounts set aside to cover future costs or liabilities (e.g. redundancies, business closures, legal disputes)
Ratio analysis:
Interpretation of financial performance by calculating and interpreting ratios
Retained earnings:
Profits earned by a business that are kept in the business rather than distributed as dividends
Revenue expenditure:
Spending on day-to-day operation of the business e.g. paying for materials, staff costs, management salaries, advertising
Rights issue:
The issue of new shares to existing shareholders in order to raise new finance. The new shares are usually offered at a significant discount to the existing share price to encourage take-up
ROCE:
A measure of the percentage return that a business earns from the capital employed in the business. Often referred to as the primary ratio"
Share capital:
The amount invested into a company by shareholders
Shareholder returns:
The rewards earned by shareholders = dividends paid to them + any increase in the value of their shares
Stock turnover:
A liquidity ratio that looks at how often a business rotates its stock during a year
Trade creditors:
Amounts that a business owes to its suppliers
Trade debtors:
Amounts that are owed to a business from its customers
Working capital:
The net amount invested by a business to finance day-to-day trading: usually calculated as current assets less current liabilities
Marketing Strategies
Ansoff's Matrix:
A strategic model for helping a business analyse the relationship between general strategic direction and suitable marketing strategies
Competitive advantage:
Skills, competences, resources and other advantages that enable a business to out-perform its competition
Develop the individual:
Students will be introduced to the financial side of the course looking at how finances impact businesses and individuals scope for growth
Create a supportive community:
The students will work together to discover how financial processes work
Term 6: Decision making to improve human resource performance
In this unit, students explore the critical role of human resource management (HRM) in organizational success. The unit discusses the recruitment, selection, and training of employees, emphasizing the importance of aligning human resources with business goals. Students analyze various motivational theories and their application in the workplace, as well as the impact of organizational culture on employee performance. The unit also addresses contemporary HR issues, such as workforce diversity, employee relations, and the implications of labor laws and regulations on HR practices.
After completion of Unit 1 - What is business, students will sit an end of topic assessment to check their knowledge. This will include multiple choice questions, 3 - 5 mark questions, as well as 9,16,25 mark questions
Arbitration:
An alternative to a court of law in determining legal and employment disputes. Involves a specialist outsider being asked to make a decision on a dispute
Centralisation:
An organisational structure where authority rests with senior management at the centre of the business
Communication:
The process by which a message or information is exchanged from a sender to a receiver
Conciliation:
A way of mediating industrial disputes to gain agreement without going to arbitration
Core workers:
Employees who are part of the core workforce of a business central to the business activities
Decentralisation:
An organisational structure where authority is delegated further down the hierarchy, away from the centre
Delayering:
The process of removing one or more layers from the organisational structure
Downsizing:
The reduction in the scale and resources of a business, usually involving job losses and/or the sale or closure of business units
Flexible working:
The range of employment options designed to help employees balance work and home life (e.g. part-time, job-sharing, home-working, annualised hours contracts)
Gap analysis:
Analysis of the difference between the workforce needs or a business and its current capabilities
Hard HRM:
An approach to HRM based on treating employees as resources in the same way as any other business resource
Human resource management (HRM):
Strategies for managing people in order to achieve business objectives
Labour shortage:
Where a business finds it does not have sufficient employees in number, or with the right skills and experience, for its needs
Peripheral workers:
Employees who are on the fringe of the core workforce. They are not essential (core) workers, and their activities can often be outsourced or provided using flexible contracting
Soft HRM:
An approach to HRM based on treating employees as the most important resource in a business
Staff (Labour) turnover:
The proportion of staff that leave their employment with a business over a period usually measured over a year
Teamworking:
Individuals work in groups rather than focusing on their own specialised jobs
Trade union:
Organisations of employees who seek to negotiate their employment terms through collective bargaining
Workforce planning:
How a business determines how many and what kind of employees are required
Works council:
A formal meeting of employer and employees to consider issues affecting the business and workplace mandatory for larger businesses in the EU
Develop the individual:
Students will look at the different motives an characteristics of individual and firms that will enable success. Different forms of businesses will have different aims and objectives and students will explore that in various business context
Create a supportive community:
Students will be working in different groups and on an individual level to explore how firms and business leaders of today can influence us as potential customers