NATIONAL QUALIFICATIONS CURRICULUM SUPPORT Business Management Management of Marketing and Operations Advice and Guidance for Practitioners [NATIONAL 5] This advice and guidance has been produced to support the profession with the delivery of courses which are either new or which have aspects of significant change within the new national qualifications (NQ) framework. The advice and guidance provides suggestions on approaches to learning and teaching. Practitioners are encouraged to draw on the materials for their own part of their continuing professional development in introducing new national qualifications in ways that match the needs of learners. Practitioners should also refer to the course and unit specifications and support notes which have been issued by the Scottish Qualifications Authority. http://www.sqa.org.uk/sqa/34714.html Acknowledgement © Crown copyright 2012. You may re-use this information (excluding logos) free of charge in any format or medium, under the terms of the Open Government Licence. To view this licence, visit http://www.nationalarchives.gov.uk/doc/open-government-licence/ or e-mail: psi@nationalarchives.gsi.gov.uk. Where we have identified any third party copyright information you will need to obtain permission from the copyright holders concerned. Any enquiries regarding this document/publication should be sent to us at enquiries@educationscotland.gov.uk. This document is also available from our website at www.educationscotland.gov.uk. 2 MARKETING AND OPERATIONS (NATIONAL 5, BUSINESS MANAGEMENT) © Crown copyright 2012 Contents Introduction 4 Guidance on Learning and Teaching Approaches 4–11 Appendix 1: SuperJam video transcript 12 Appendix 2: Quality production 16 MARKETING AND OPERATIONS (NATIONAL 5, BUSINESS MANAGEMENT) © Crown copyright 2012 3 MARKETING AND OPERATIONS Introduction Guidance on potential learning and teaching approaches A range of suggested potential learning and teaching approaches accompany this guidance to support the delivery of the Management of Marketing and Operations unit in National 5 Business Management. The potential learning and teaching approaches focus on existing materials available from the Education Scotland website and other web -based sources. The suggested learning and teaching approaches are intended to support learners in adding value to the core knowledge delivered within the s ubject area, and to help learners develop skills of communication, investigation, presentation, analysis and research. The suggested learning and teaching approaches focus on learners working together, seeking opinions from others and forming and offering their own opinions based on their research, analysis and discussion of information given to them. The suggested learning and teaching approaches for the Management of Marketing and Operations unit are contained in a PowerPoint presentation with supplementary documents and information provided where appropriate. Hyperlinks provide key information within the exemplification presentation and learners would benefit from access to the internet while undertaking the learner activities. The exemplification of learning and teaching approaches seeks to support learning and to provide a platform for further thought, discussion, investigation and evaluation of core and supplementary knowledge. Many of the suggested learning and teaching approaches employ active learning strategies in their approach. A guide to the exemplification presentation is provided below. This highlights the detail of each suggested approach, the knowledge required to support the activity and the skills that may be developed. Although some of the approaches suggest group or partner work specifically, this is at the discretion of the practitioner and learners and, in the main, activities have been created to be flexible in nature and to accommodate a range of working methods. In addition, suggestion is made as to the media learners may use to 4 MARKETING AND OPERATIONS (NATIONAL 5, BUSINESS MANAGEMENT) © Crown copyright 2012 MARKETING AND OPERATIONS present findings or produce evidence of research from activities. This too is open to interpretation dependant on the resources available and the choices made by practitioners and learners. Slide no. Topic Detail and supporting knowledge Skills development Management of marketing 4 Welcome to SuperJam 5 What do customers want? (1) 6 What do customers want? (2) Introduces SuperJam and provides a hyperlink to the video resource from the Education Scotland website. Learners could view the interview with the business founder, Fraser Doherty, and/or use the transcript of the interview to support further activities or research. This slide suggests that learners could discuss or investigate how SuperJam may have researched their market early on or prior to the business start-up. Learners could work in groups or pairs to summarise the range of methods of market research that are available and to determine which of these methods are primary and which are secondary. As a topic for further discussion or research, learners could decide how the business may have used the market research information to support effective decision making. As an alternative, a local business or well-known national business could also be used as a context for this research and/or discussion. Learners could use the hyperlinks to internet survey generators to produce their own market research questionnaire. The focus used for this could be SuperJam, the learner’s own business idea, or a local or familiar business. This approach could be used with learners working individually, in pairs or in small groups. Supporting guidance on the content of surveys and wording of research questions is provided to some extent through the sites hyperlinked here. MARKETING AND OPERATIONS (NATIONAL 5, BUSINESS MANAGEMENT) © Crown copyright 2012 Listening Literacy Remembering and understanding Working with others Communication Using ICT effectively Analysing and evaluating Information handling Working with others Using ICT effectively Evaluation of information Research Applying knowledge Literacy 5 MARKETING AND OPERATIONS 7 What do customers want? (3) 8 From launch to decline (1) 9 From launch to decline (2) 10 Promoting the product (1) 6 Learners could discuss what other methods of market research may be available in addition to surveys. Learners could use a range of resources to investigate the other methods of market research available. Learners could decide on the three methods most appropriate for either SuperJam or their own business enterprise idea. Learners could present their findings in an appropriate manner, perhaps using a form of ICT. Learners could include justification of why they have chosen these methods. Reflective questions are shown on this slide to promote initial discussion on product life cycles and/or to support more in-depth investigation of this topic. Learners could be encouraged to research the different stages of the product life cycle and to provide examples for each stage from real life. Learners could expand their knowledge by producing diagrams of the product life cycles for their chosen products, perhaps for a diverse range of products to illustrate the differences between each. Learners could use the information on SuperJam to produce a product life cycle diagram for the business, indicating what stage of the life cycle the product may occupy currently. Additional information on product life cycles, including a case study of Kelloggs, is provided via a hyperlink to The Times 100 web resource. Three hyperlinks to web resources are provided here as an introduction to marketing and various methods of marketing effectively. Each link shows a guerrilla marketing stunt for a major organisation. Learners could then engage in finding similar examples of this type of shock marketing using the internet, and could decide on the most effective example, presenting this to the group and explaining their reasons for selecting this example, ie why is it effective marketing? A further activity is also shown on this slide where learners could devise their own marketing event to promote SuperJam or their own business enterprise. MARKETING AND OPERATIONS (NATIONAL 5, BUSINESS MANAGEMENT) © Crown copyright 2012 Thinking Communication Using ICT effectively Analysing and evaluating Information handling Communication Using ICT effectively Evaluation of information Presentation of information Information handling Understanding Evaluation of information Thinking Understanding Presentation of Information Communication Using ICT effectively Evaluation of information Creativity Literacy Remembering Understanding Applying MARKETING AND OPERATIONS 11 Promoting the product (2) 12 Promoting the product (3) 13 Brand beautiful (1) A link is provided here showing 200 marketing tools. Learners could use this resource to select the most appropriate or suitable marketing tools for SuperJam, their own business enterprise, or a product or local business familiar to them. Learners could produce a mini-pitch on why the organisation should use the marketing tools suggested. This could support a group discussion or individual ‘pitches’ given and evaluated by the group. Learners could research promotional pricing strategies using a range of resources and find as many different real examples of promotional pricing as possible. This information can be shared as a group. Learners could then produce a group ‘top five’ of the pricing strategies they feel are most effective and decide why this is the case within the group. Learners could then link the real examples of promotional pricing to defined methods of pricing (destroyer, cost plus, competitive etc). A link is given to support this activity showing both theory on methods of pricing and a further activity on pricing in marketing. Learners could begin by researching a definition of branding and linking this definition to an example of a real branded product that they feel demonstrates the key features of branding well. This information could take the form of a short presentation using appropriate media. As an extension to this work, learners could also be asked to develop a brand for their own business enterprise and present this to the rest of the group, inviting comment from peers in order to evaluate the effectiveness of their new brand. This could be undertaken using various forms of ICT to research and present the information. MARKETING AND OPERATIONS (NATIONAL 5, BUSINESS MANAGEMENT) © Crown copyright 2012 Working with others Communication Using ICT effectively Evaluation of information Thinking Understanding Using ICT effectively Evaluation of information Understanding Applying Working with others Communication Working with others Communication Using ICT effectively Understanding Applying 7 MARKETING AND OPERATIONS 14 Brand beautiful (2) 15 Brand beautiful (3) 16 Marketing and ICT (1) 17 Marketing and ICT (2) 8 Learners could further investigate the benefit s of branding to a business organisation by using a well-known Scottish product, for example IrnBru, Walkers Shortbread etc. Local products could also be used as a context for this approach. Learners could use a variety of means to research the brand, what it represents, its history etc, and summarise this information effectively to present to others if required. Learners could be asked to review and comment on the SuperJam brand using the company web resource and other sources of information. Reflective questions are provided here to promote further investigation/discussion. Hyperlinks also provide access to the websites of possible competitors to SuperJam, allowing learners to compare the brand image of each company and comment on the effectiveness of each. A link to a list of marketing tools is given h ere to allow learners to review how many of these tools may rely on the use of ICT. Learners could then establish how the use of ICT is of benefit in these marketing tools and overall how ICT can enhance marketing for an organisation. Learners could summarise their findings using appropriate media. Learners could use an appropriate mode of ICT to produce or suggest three marketing strategies that could be employed by SuperJam, their own business enterprise, or a local or familiar business. For example, learners could decide to design a direct mail leaflet using word processing, compose a marketing email or produce posters using desk-top publishing software. Learners could present their information accordingly and justify why they have selected these methods and what benefits they may bring to the organisation chosen. MARKETING AND OPERATIONS (NATIONAL 5, BUSINESS MANAGEMENT) © Crown copyright 2012 Handling information Understanding Evaluating information Using ICT effectively Evaluating information Using ICT effectively Understanding Literacy Thinking Using ICT effectively Presentation of information Evaluation of information Understanding Communication Thinking Using ICT effectively Presentation of information Literacy Applying Evaluation MARKETING AND OPERATIONS Management of operations 19 Getting it right (1) 20 Getting it right (2) 21 Too little or too much? (1) 22 Too little or too much? (2) Learners could explore the factors to consider when choosing a supplier or working partner for SuperJam, their own business idea or a local business they are familiar with. Learners could list these factors through discussion and/or research. This approach could be used with learners working in pairs, small groups or a whole group. Learners could build on the previous approach and collate the ideas that they have created , deciding through discussion what the top three priorities are when choosing a supplier or working partner in business. Learners could then summarise these three factors, justifying their reasons for selecting them. This approach could use an appropriate form of ICT or be conducted through discussion or debate with the group. Learners could explore how a business organisation decides on the correct level of production, basing the initial discussions on information from SuperJam or their own business idea. Learners may consider the consequences of producing too many or too few products and the possible effect this may have on the business organisation. Learners are introduced to the idea of stocking products and could engage in research, discussion or investigation as to the costs involved in stocking products. Learners could be guided here to think about the more detailed costs of insurance, security and loss of stock through damage or theft when in storage. Learners could consider the consequences for the business of over or under stocking products. Reflective questions are suggested here for additional discussion or research. MARKETING AND OPERATIONS (NATIONAL 5, BUSINESS MANAGEMENT) © Crown copyright 2012 Working with others Communication Evaluation of information Analysis Understanding Thinking Communication Working with others Evaluation of information Using ICT effectively Communication Thinking Understanding Evaluating information Problem solving Thinking Understanding Problem solving Evaluation of information 9 MARKETING AND OPERATIONS 23 Ethical production (1) Hyperlinks are provided here to support initial discussion or research by learners on what ethical production may mean. Learners could use this information to support further research on ethical production practices and to find reallife examples of it. 24 Ethical production (2) 25 Ethical production (3) 26 Quality production (1) Learners could build on their previous activity by researching an example of ethical production in a Scottish organisation and also an example of non-ethical production. Additionally, learners could review local business organisations and decide whether they practice ethical production or not. Learners could then discuss or summarise the benefits that ethical practice brings to the Scottish (or local) organisation and the impact that the non-ethical practice may have on the organisation studied. Learners could now direct their knowledge to SuperJam and decide whether this company employs ethical practices. Learners could suggest a possible ethical practice that the company could use and highlight the potential benefits of this practice to the business, summarising this information in the form of a report to Fraser Doherty, the company’s owner. Learners could work individually or in pairs with this approach and could use an appropriate media to summarise and present their information. A suggested exemplar activity is provided here to introduce or support the concept of quality in production. An additional worksheet is provided in Appendix 2 for the practitioner’s use, with detailed instructions included. The objective of this approach is to engage learners in a production process where quality will be under scrutiny and to allow learners to develop their ideas as to methods of quality improvement and the impact that these may have on the production of a business organisation. 10 MARKETING AND OPERATIONS (NATIONAL 5, BUSINESS MANAGEMENT) © Crown copyright 2012 Reviewing information Evaluating information Using ICT effectively Thinking Understanding Applying Using ICT effectively Understanding Thinking Applying Problem solving Analysing and evaluating Literacy Thinking Understanding Applying Problem solving Presentation of information Analysing and evaluating Problem solving Working with others Evaluating Understanding Applying MARKETING AND OPERATIONS 27 Quality production (2) 28 Technology in production (1) 29 Technology in production (2) 30 Technology in production (3) Following their practical exercise, learners could be directed to research formal methods of quality assurance (total quality management, quality circles, quality control etc) and to decide which methods would be most appropriate to SuperJam, their own business idea or a local business familiar to them. Learners could summarise their ideas in a short report or presentation, outlining the costs and benefits of the method(s) of quality assurance they recommend. Learners are asked to use resources to find three examples of technology use in production. Learners could summarise this information using an appropriate form of ICT. Learners could then apply this knowledge to SuperJam and decide where the use of technological practices could benefit the business. This information could be presented as a mind map , allowing learners to work in pairs or small groups. Hyperlinked information is provided in order to support this approach and shows a summary of technologies used in business operations. Learners could be asked to find three real -life examples of some of the technology practices given in the web resource provided and to present this information, including the costs and benefits to the business, using an appropriate method. Sample case studies are also provided in the hyperlink. Learners could apply the knowledge they have gathered on technological practice in business to their own business idea or to a local business familiar to them. Learners could decide how adopting technological practices may benefit the organisation and also what the potential costs may be. Learners could be guided to consider the deeper implications of technological practices over and above financial costs, for example. This information could be presented in a range of appropriate ways as directed by the practitioner and/or learners. MARKETING AND OPERATIONS (NATIONAL 5, BUSINESS MANAGEMENT) © Crown copyright 2012 Using ICT effectively Communication Analysing and evaluating Presentation of information Evaluation of information Problem solving Literacy Thinking Using ICT effectively Working with others Literacy Using ICT effectively Analysing and evaluating Presentation of information Evaluation of information Understanding Thinking Problem solving Using ICT effectively 11 MARKETING AND OPERATIONS Appendix 1: SuperJam video transcript Fraser Doherty: I run a business called SuperJam. SuperJam is a range of jams that are made entirely from fruit and fruit juice so it ’s a bit better for you than normal jams and I sell SuperJam to the big supermarkets all over the country. I started SuperJam when I was about fourteen after my Gran taught me how to make jam using her secret recipes. I just started out making jam in the kitchen at home and selling it to the neighbours and at church fairs and farmers markets and came up with more and more recipes until I had the whole range of products and it grew and grew for months and months, then I decided to leave school when I was 16 and work on the business full-time and I soon found myself making up to 1000 jars of jam a week in my parents’ tiny little kitchen and needless to say they were rarely getting into the kitchen to cook their dinner and I soon had to come up with an imaginative idea in order to move production into a factory. Obviously as a teenager trying to set up a jam company it ’s quite difficult to get a million pound loan from the bank to build your own jam factory so I had to convince another jam company to work with me to let me use their factory for a few days at a time and that was difficult and I had to visit more or less all the jam factories in the country from the little islands off the north coast of Scotland to the big cities of England trying to convince somebody to work with me to produce SuperJam. I got helped by mostly entrepreneurs who had been successful and who w ere willing to spend an afternoon once a month just giving me advice and telling me the lessons that they learned from setting up their own companies. I also got a bit of help from my university, when I was at university last year at Strathclyde and The Prince’s Trust lent me, lent me some money to help me get things off the ground, so there’s definitely a lot of help out there if you’re trying to start a business. I’ve been amazed by just the number of people who are willing to give you a helping hand and share their experiences with you, and put you in touch with people that they think might be able to help you, so I’d definitely say that business isn’t the ruthless, cut-throat, dog-eat-dog world that some TV 12 MARKETING AND OPERATIONS (NATIONAL 5, BUSINESS MANAGEMENT) © Crown copyright 2012 MARKETING AND OPERATIONS programmes make it out to be, but actually you know there’s a whole community of people out there who are willing to help others get their idea off the ground. When I was about 16 I decided that I wanted to start supplying supermarkets, which was something that no teenager had ever done before. I had to go and convince a factory to work for me to make the jam and I had to convince designers to work with me to design the labels and obviously I had to convince the supermarkets to take it on. And a 16-year-old kind of turning up at one of the biggest supermarkets in the country and asking them if they would sell your jam is, er, quite daunting and it takes a lot of convincing to get people to follow a teenager in trying to set up a business, so certainly at first getting people to take my idea serious ly was a big challenge. When I was first trying to come up with ideas for the labels I thought it would be really fun to create the branding around a sort of comic book theme, you know, there’s a link between SuperJam and Superman, and I thought that would be really funny to build on, so we came up with labels and a website and so on based on that and even thought about having a costume for me, the Jam Boy, to wear at the launch of SuperJam. We spent, you know, months and months developing that and then I went along to the supermarkets and they didn’t think it would work very well, er, you know they felt that I’d – the whole fact that SuperJam is made entirely from fruit, better for you than other brands of jam, generally very high quality, would be completely lost in amongst that humour so they said for me to just go away and simplify it and that’s what I did and we came up with the labels that we’ve got now. And then Waitrose agreed to take them on and try them out in all of their shops across the country which was a huge step and was, you know, probably one of the biggest points of my life, I guess. And, er, we didn’t know if they would sell, but they flew off the shelves and the newspapers went, you know, went crazy for the story and I found myself goin g on TV and, you know, football chat shows and I was being interviewed by radio stations in Canada and, you know, all kinds of stuff. Tesco, one of the biggest supermarkets in the world, phoned up and asked if they could sell my jam as well and without even needing to meet with them they’d agreed to try it out in a few hundred of their shops . I don’t sell very much jam online, it costs quite a lot of money to post jam, but certainly the internet’s powerful from the point of view that anybody can MARKETING AND OPERATIONS (NATIONAL 5, BUSINESS MANAGEMENT) © Crown copyright 2012 13 MARKETING AND OPERATIONS go on the internet and find out about me and my business and you know I write a blog every week where I update people about what I’ve been doing and, you know, thousands of people kind of log on and just follow the story as it develops. Starting my own business really appeals to me because I like the freedom and the sense of being in control of my own destiny that comes from running my own company. I decided to leave university and work on my business full -time. I had been studying accountancy so I kind of imagine that there are two paths that my life could have gone, you know, one is that in five years ’ time I could be sitting in an office with a huge accountancy firm tapping away on a computer, and the other is that I could be running a jam business full -time, and it’s pretty clear which one is more fun. When I was in fifth year I really enjoyed all the business subjects and was actually the youngest person that’s ever done Advanced Higher Business Management in Scotland, so it was quite clear that I was going to be interested in business later in life. I can get up in the morning and more or less do what I want to do with my life, you know, and running a business I’m finding hugely fun doing and that’s an amazing thing to be doing with my life. It’s down to you to motivate yourself to get up in the morning and go and make the phone calls you have to make, and drive the business forward. There’s not anybody telling you what you need to do and how you need to do it, you have to figure it out yourself and that’s sometimes very difficult. For me it’s not – running my own business isn’t really about making lots of money so that I can buy a big car or a big house, and I just really love the process of coming up with an idea and turning it into reality, so for me mone y is not a big motivating factor. By sharing my story with other young people, hopefully some of them might be inspired to come up with their own ideas to start a business and I think if I can, you know, perhaps encourage other people to think about start ing their own business, then that’s a positive role that I could have on other people ’s lives. If I could go back to myself when I was just starting out, with the jam business, I would have told myself to just stick at it and keep giving it a shot. Not to take it too seriously, to just enjoy the fun that you ’re having and not really worry about whether it’s going to be a big success or not, or whether 14 MARKETING AND OPERATIONS (NATIONAL 5, BUSINESS MANAGEMENT) © Crown copyright 2012 MARKETING AND OPERATIONS it’s going to fail, and just enjoy the learning experience and the day -to-day fun that running a business is. I’d say the most important thing if you’re thinking about starting a business is that you go into it with the right attitude, er, you have to be willing to fail. You have to go into starting your own business with the attitude that you ’re going to learn something and you can have a lot of fun, and so I think you just have to take a punt on it and not really worry about whether or not it ’s going to be a success, but enjoy the process of trying to make it a success. I guess an entrepreneur is just somebody who has an idea and just does everything that they can to turn it into reality. MARKETING AND OPERATIONS (NATIONAL 5, BUSINESS MANAGEMENT) © Crown copyright 2012 15 MARKETING AND OPERATIONS Appendix 2: Quality production Suggested learning and teaching approach Resources required: scissors, glue sticks, paper/card templates Note: The templates attached here are simple examples. More complex templates are available from www.papertoys.com. Templates should be copied or printed onto card in order to produce more stable models. Using the range of cut-out templates provided, learners form production groups and decide on how many models they will produce in the time given. All groups should make the same model for easy comparison of quality standards. Before production begins, the whole group should decide on a list of factors that will mean their models are of acceptable quality. Groups could decide on their own methods of production or could be allocated different methods of production according to practitioner preference. At the end of the production time, each group’s products should be quality checked by a quality group made up of one representative from each production group. This group should accept or reject models following the quality guidelines drawn up by the whole group in advance. The groups should then review their performance against the quality indicators and discuss how they could improve the quality of their production in future. This activity could be completed twice to gauge improvements in quality and/or more efficient production. Discussion following this activity could centre around methods of quality assurance or quality control, 16 MARKETING AND OPERATIONS (NATIONAL 5, BUSINESS MANAGEMENT) © Crown copyright 2012 MARKETING AND OPERATIONS - Could the group have employed total quality management practices where every group member was responsible for quality at each stage of production? Would this have had a positive or a negative effect on their volume of output and/or the quality of each product? - Could the group have used traditional quality control where products are checked at the end of the production process? What impact could this approach have had on their volume and quality of pro duction? - What could improve the group’s product quality? - What factors influenced the quality of the product? MARKETING AND OPERATIONS (NATIONAL 5, BUSINESS MANAGEMENT) © Crown copyright 2012 17