UNIT 2 MANAGEMENT OF BUSINESS
Crystal Cassie
WEBSITE: http://batcemob.weebly.com/
REFERENCE TEXTS: CAPE Management of Business: Kathleen Singh, Peter Stimpson
Business Studies: Bruce R Jewell
Business Studies: Dave Hall, Rob Jones, Carlo Raffo, Alain Anderton
MODULE 1: Production and Operations Management
Week
Objectives
Content
Teaching/learning
strategy
TERM 1
1
Describe the
major decisions
involved in the
nature of the
production
process
Nature of production
 Input (FOP) throughout (production process) output (finished
goods and services)
 Production methods: job, batch, flow and cell production
 Location of production: quantitative factors (site cost, transport
cost, labour cost, revenue cost), qualitative factors (infrastructure,
environmental and planning consideration, management
preferences)
Discussion
2
Explain
techniques
involved in
forecasting
3
Discuss the
strategies
involved in
product design
4
Explain the
concept of
capacity
planning
Forecasting techniques
 Sales force composite
 Delphi method
 Consumer surveys
 Jury of experts
 Moving average
 Least squares regression
Product design strategies
 Modularization
 Miniaturization
 Integration
 Value analysis
 Computer aided design (CAD), computer aided manufacturing
(basic principles)
Capacity Planning
 Definition of capacity
 Importance of capacity utilitization
 Design capacity
 Efficiency capacity
 Calculation of capacity utilization(simple calculations)
 Methods of improving capacity utilization
 Economies and diseconomies of scale
Brainstorming
location factors:
setting up a
NightClub in Trincity
Mall
Student presentations
in groups for each
technique
(posters)
Assessment
2004Q2A
2JUNE2008Q1
2012Q2C
2013Q2B
2014Q1
2009Q2A
2006Q1
2004Q2
2002Q2
PPTS:
Pictures of design
strategies
Discussion of value
analysis with
examples
Discussion
2014Q2
5
6
Examine
various
strategies used
in production
layout process
Assess the
importance of
costing in
production
7
Examine the
concept of
inventory
management
8
Explain the
concept of lean
production and
quality
management
9
Explain
methods of
measuring and
improving
productivity
Layout Strategies
 Process layout
 Production layout
 Fixed position layout
Costing
 Cost of production (direct/indirect variable/fixed)
 Approaches to costing (simple calculations): absorption,
contribution/marginal.
 Application of marginal costing: break-even point (definition,
uses, advantages and disadvantages, simple calculation of the
following: BEP for output and sales, contribution margin sales for
a desired profit, output for a desired profit and margin of safety).
Draw break even charts
Make or buy decisions
Inventory Management
 Importance of inventory (stock)
 Inventory (stock) control management: EOQ (Simple
calculations), Just in Time
Lean Production and Quality Management
 Importance of quality
 Dimension of quality: performance, features, reliability,
conformance, durability, serviceability, aesthetics, perceived
quality.
 Techniques for improving quality including difference between
quality control and quality assurance, benchmarking, ISO quality
standards, outsourcing, quality circles, TQM (Kaizen or
continuous improvement)
 Lean production (link between inventory management, quality
and capacity and employee roles)
Productivity
 Definition (express productivity as an equation)
 Factors that impact on productivity including technology,
training, market demand, competition, quality of labour supply,
level of pricing
PPT
Discussion
Accounting students
present to class
Specimen Paper
Question
Use of examples to
illustrate
Discussion
2011Q1B1,11
2010 Q1
Comparison of two
goods/services on
dimensions of quality
2013Q1
2012Q2A,B
2011 Q1A1,11
2009Q1
30JUNE 2008Q2
2007Q1
2005Q2
2003Q1
Video
Discussion
Case study
2011Q2
2010Q2
2JUNE2008Q2
2006Q2
2005Q1
2003Q2
10
Assess the
importance of
project
management
Project Management: prepare and interpret diagrams of models
 Critical Path Method
 Decision trees
Use of examples to
illustrate
2013Q2A
2012Q1
2009Q2B
30JUNE 2008Q1
2007Q2
2004Q2B
2002Q1
Teaching/learning
strategy
Assessment
MODULE 2: Fundamentals of Marketing
Week
Objectives
11
Define the term
marketing and
relate it to the
concepts of
market,
exchange and
value added
Assess the
implications of
the marketing
concepts
The Concept of Marketing
 Definitions of marketing
 Related concepts: markets, value added, exchange transactions
Distinguish
between the
micro and
macro
environments in
which a firm
operates and
their effects on
the marketing
strategy of the
firm
The marketing environment
 Composition of the marketing environment: micro and macro
environment
 Forces in the micro environment: company suppliers,
competitors, marketing intermediaries, customers
 Forces in the macro environment: demographic, economic,
natural, political, cultural factors
12
13
Content
Implications of different marketing concepts
 The product concept and implications
 The production concept and implications
 The selling concept and implications
 The societal marketing concept and implications
Discussion
Students brainstorm
and present posters in
class on each concept
in groups
(COMICS)
30JUNE 2008Q3
SUBWAY:
the micro and macro
factors that impact
the marketing
strategy
2003Q3
14
15
TERM 2
1
2
Describe the
elements of the
marketing
research process
Explain the
principles of
market
segmentation
Explain the
principles of
product
management
Evaluate various
pricing
strategies
Marketing research
 Role and importance of market research
 Importance of developing a research plan
 Describe the stages of market research: management problem
identification, research objectives, sources of data( primary and
secondary), sampling (probability and non-probability), research
techniques (focus groups, surveys, in depth interviews,
observation), analysis and presentation of results
 Limitations of market research
Market research
project to conduct in
school population
Principles of market segmentation
 Importance of segmentation
 Niche, target, mass marketing
 Bases of segmentation: demographic, geographic, behavioural
 Consumer buying behavior: the buying process, factors
influencing buying behaviour
Students choose a
good/service to
market to segments
Product Management
 the concept of product: core, formal/actual, augmented
 dimensions of the product mix: product line and product
extension
 Boston matrix
 new product development process
 product life cycle
 branding and packaging
 characteristics of services compared to goods
Pricing decision
 Introduction to pricing: definition, role and importance
 Factors influencing pricing decisions (elasticity of demand,
demand, income, consumer preference)
 Pricing strategies: cost plus, competition, perceived value, going
rate, penetration pricing and price skimming
PPT
Consumer buying
behavior illustrated
while purchasing a
new PC
Students create a
product to illustrate
concept, dimension
Videos
Group presentations
Case study
Discussion
Presentation by
Economics students
2013Q4
2011Q3,Q4A
2010Q3
30JUNE 2008Q4A
2JUNE2008Q4
2007Q4
2006Q4
2003Q4
2002Q3A
2014Q3A
2011Q4B,C
2010Q4
30JUNE2008Q4B,C
2006Q3
2014Q3B
2005Q4
2002Q3B
3
Discuss the
major principles
of distribution
Distribution management
 Role of distribution in an organisation
 Factors influencing distribution decisions
 Types of distribution channels (direct, indirect)
 Introduction to logistics strategy
 Types of distribution strategies (intensive, selective, exclusive)
Discussion
2014Q4A
2012Q4
2009Q4
2004Q4
4
Examine the
major tools of
promotion and
their
implications
Promotion strategy
 Objectives of promotion

Tools of promotion and their relative advantages: advertising,
personal selling, sales promotion, publicity
Students role play
tools of promotion
2014Q4B
2013Q3
2012Q3
2009Q3
2JUNE2008Q3
2007Q3
2005Q3
2004Q3
2002Q4
5
Discuss the
importance of
internet
marketing
decisions
Internet Marketing
 Development of internet marketing
 Opportunities created by internet marketing
 Challenges posed by internet marketing
 Importance of ecommerce to business organisations
Student written
research project
MODULE 3: Small Business Management
Week
Objectives
6
Explain the nature
and characteristics
of
entrepreneurship
Content
The nature and characteristics of entrepreneurship
 Definitions of entrepreneurship
 Intrapreneurship
 Corporate entrepreneurship
 Social entrepreneurship
 Characteristics of successful entrepreneurs
Teaching/learning
strategy
Assessment
Nina Programme
PPTs
Brainstorming
Past papers
2002-2014
Q5,6
7
Explain the
relationship
between business
organisations and
the economic
system in which
they operate
Assess the criteria
for measuring size
and growth of
business
Business and economic systems
 Economic systems in which businesses operate (free economy,
mixed economy, planned economy)
 The impact of the economic system on business decision
making
Economics students
in class present on
economic systems
Video
Discussion
Size and growth of business
 Criteria for measuring size and growth: output, labour force,
market share, capital structure
 Advantages and disadvantages of small vs large firms: size and
financial requirements, economies of scale, strategies for
growth, management and control, lack of record keeping,
working capital deficiencies, poor management skills,
regulation and legislation
Comparison of a
small and large firm
9
Assess the
challenges and
opportunities
faced by small
businesses
Major challenges and opportunities faced by small businesses
 Identifying successful business opportunities
 Sourcing capital (finance)
 Selection of business types (sole trader, partnership, company)
 Determining a location
 Globalization and trade liberalization
 Ecommerce
 Intellectual property
Interviewing a small
business owner in
their community
(reporting)
10
Describe the types
of assistance
agencies offer to
small businesses
Types and nature of assistance available to small firms
 Agencies that assist small businesses: government, nongovernment, financial institutions
 Types of assistance offered to small businesses: financial,
technical, education and training
Leaflets and
information booklets
from existing
organisations
8
11
Develop a
business plan
TESTS EVERY THREE TOPICS
Preparation of a business plan for a small business
 Executive summary
 Business description: legal establishment, start up plans
 Business environment analysis: target market, customer needs,
location
 Industry background
 Competitor analysis: who are your competitors
 Market analysis: customer needs, where they are, how to reach
them
 Marketing plan: pricing strategy, promotion strategy,
distribution strategy
 Operations plan: cost of production, machinery
 Managerial summary: management personnel, staffing
 Financial plan: profit and loss, cash flows, break even analysis,
source of funds, business ratios, assumptions
Preparation of a
business plan by each
student