Cambridge IGCSE BUSINESS STUDIES 0986 (9-1)/ 0450 (A-G)
Scheme of work for 2 Year Course
For the full syllabus go to http://www.cie.org.uk/images/400319-2019-syllabus.pdf
RESOURCES
Textbook: Cambridge IGCSE Business Studies, Fisher, Houghton and Jain
TEST and ASSESSMENTS
There will be four tests/assessments in the Christmas Term and 3 Test/Assessments in the other two terms.
IGCSE EXAMINATION
For Cambridge IGCSE Business Studies, candidates take two compulsory components, Paper 1 and Paper 2. Both question
papers will draw on topics taken from the whole of the syllabus content. All candidates are eligible for grades A* to G.
Components Weighting
Paper 1 1 hour 30 minutes 50%
Written examination consisting of four questions requiring a mixture of short answers and structured data responses.
Candidates answer all questions. 80 marks. Externally assessed.
Paper 2 1 hour 30 minutes 50%
Written examination consisting of four questions based on a case study, provided as an Insert with the paper.
Candidates answer all questions. 80 marks. Externally assessed.
Dates
YEAR 1
SECTION:
Enterprise
11 September
TOPIC
Content
Enterprise Dragons Quest
Ideas, planning,
pitch
Enterprise Dragons Quest
Marketing and
production, selling
SECTION:
Understanding Business Activity
KEY TERMS
ADDITIONAL
RESOURCES/
ACTIVITIES
GCSE POD - VIDEO
Students work in groups on
their enterprise project
Enterprise project
resources on VLE
GCSE pod video on
enterprise
Students work in groups on
their enterprise project
Enterprise project
resources on VLE
18 September
25 September
Understanding
Business Activity
Business and the environment
in which it operates:
• Concepts of needs, wants,
scarcity and opportunity cost
• Importance of specialisation
• Purpose of business activity
• The concept of adding value
and how added value can be
increased
Business activity in terms of
primary, secondary and
tertiary sectors:
• Basis of business
classification, e.g. by using
examples
• Reasons for the changing
importance of business
classification, e.g. in
developed and developing
economies
Classify business enterprises
between private sector and
public sector in a mixed
economy
Needs, wants, economic
problem scarcity,
opportunity cost, factor of
production, resources:
land, labour capital and
enterprise, specialisation,
division of labour, added
value
Enterprise and
entrepreneurship
Enterprise and
entrepreneurship
• Characteristics of successful
entrepreneurs
Enterprise, entrepreneur,
risk taking, initiative,
independence, creativity,
organisational skills, hard
working, optimistic,
effective communicator,
self confident
Measuring size
The methods and problems
of measuring business size:
• Methods of measuring
business size, e.g. number of
people employed, value of
output, capital employed
(profit is not a method of
measuring business size)
• Limitations of methods of
measuring business size
size: number of
employees, value of
output, turnover (value of
sales), value of capital
employed
Start-up: business
plan,
• Contents of a business plan business plan
and how business plans assist
entrepreneurs
The nature and
purpose of business
activity
Classification of a
business
Introduction to IGCSE
Business Studies,
Introduction to assessment
for Paper 1 and Paper2
Chapter 1, Worksheet 1
(CUP)
Chapter 2, Worksheet 2
Primary secondary and
tertiary, deindustrilisation, (CUP),
mixed economy,: private
sector, public sector
Businesses
Businesses
2 Oct
1
Chapter 3, Worksheet 3
CUP
Chapter 3
Business planning
Dates
YEAR 1
Government support Why and how governments
support business start-ups,
e.g. grants, training
unemployment,
competition, social
enterprise
Chapter 3
TEST WEEK
To week 4 first lesson
Expanding the
business 1
Why some businesses grow
and others remain small:
• Why the owners of a
business may want to expand
the business
• Different ways in which
businesses can grow
• Problems linked to business
growth and how these might
be overcome
internal growth, external
growth, takeover, merger,
vertical integration
forwards and backwards,
horizontal integration,
conglomerate integration,
diversification,
Chapter 3
Expanding a business,
changing aims and
objectives
Expanding the
business 2
Why some businesses grow
and others remain small:
• Why the owners of a
business may want to expand
the business
• Different ways in which
businesses can grow
• Problems linked to business
growth and how these might
be overcome
internal growth, external
growth, takeover, merger,
vertical integration
forwards and backwards,
horizontal integration,
conglomerate integration,
diversification,
Chapter 3
Expanding a business,
changing aims and
objectives
Business failure
• Why some businesses
remain small
• Causes of business failure,
e.g. lack of management
skills, changes in the
business environment
• Why new businesses are at
a greater risk of failing
market size, poor
management, over
expansion, business
failure, risk
Chapter 3.
ASSESSMENT
WEEK
Assessment Chapter 1-3
(Paper 1 type)
AIR BRICK
LESSON
Catch up time for any lessons
missed or topics that need
more work following the
assessment
Types of business
organisation
The main features of
different forms of business
organisation: • Sole traders,
partnerships,
Types of business
organisation
private and public limited
companies
•Differences between
unincorporated businesses
and limited companies
• Concepts of risk, ownership
and limited liability
EXAM
TECHNIQUE:
Answering 8 and 12 mark
questions
9 October
16 Oct
30 October
6 November
2
Sole trader, unlimited
Chapter 4, Worksheet 4
liability, partnership,
CUP
partnership agreement,
limited liability
partnership, capital
Private limited company,
incorporated business,
unincorporated business,
shareholders, Articles and
memorandum of
association, accounts,
legal formality, separate
legal entity, continuity,
regulations, divorce
between ownership and
control, AGM, directors,
dividends, stock
exchange. Joint venture,
franchise, franchisee,
franchisor, royalties,
brand. Public corporation,
monopoly, nationalise,
efficiency
Chapter 4, Worksheet 4
CUP
The importance of
limited liability,
choosing an
appropriate legal
structure
Dates
YEAR 1
Types of business
organisation
•Franchises
•joint ventures (1)
• Recommend and justify a
suitable form of business
organisation to owners/
management in a given
situation
• Business organisations in
the public sector, e.g. public
corporations
Sole trader, unlimited
Chapter 4, Worksheet 4
liability, partnership,
CUP
partnership agreement,
limited liability
partnership, capital
Private limited company,
incorporated business,
unincorporated business,
shareholders, Articles and
memorandum of
association, accounts,
legal formality, separate
legal entity, continuity,
regulations, divorce
between ownership and
control, AGM, directors,
dividends, stock
exchange. Joint venture,
franchise, franchisee,
franchisor, royalties,
brand. Public corporation,
monopoly, nationalise,
efficiency
The importance of
limited liability,
choosing an
appropriate legal
structure
Changing business
objectives
13 November
Business objectives
Discuss the importance of
business objectives. Identify
and explain different business
objectives, eg. survival,
growth, profit and market
share. Discuss the objectives
of social enterprise.
Demonstrate an awareness of
the differences in the aims
and objectives of private
sector and public sector
enterprises.
objectives: survival, profit, Chapter 5 Worksheet 5
return to shareholders,
CUP
growth, market share,
social enterprise, financial
objectives, service
objectives, social
objectives,
Stakeholders
The role of stakeholder
groups involved in business
activity:
• Main internal and external
stakeholder groups
• Objectives of different
stakeholder groups
• Use examples to illustrate
these objectives and how
they might
conflict
stakeholders, stakeholder
objectives, stakeholder
conflict
TEST WEEK
Chapters 1-5 Paper 1 and 2
type
Chapter 5 Worksheet 5 CUP
Business decisions and
stakeholders
20 Nov
Conflict between
stakeholders
SECTION 2
Business decisions and
stakeholders
PEOPLE IN
BUSINESS
Motivating workers
What is motivation? Theories of
motivation
Chapter 6 Worksheet 6 CUP
Methods of
motivation:
• Financial and nonfinancial rewards and
methods
• Recommend and
justify appropriate
method(s) of
motivation in
given circumstances
Motivation: money, security, Chapter 6
social needs, esteem needs,
job satisfaction, hierarchy of
needs, physiological needs,
self actualisation, motivators,
hygiene factors, financial
rewards,wages, time rate,
piece rate, salary,
commission, profit sharing,
bonus, performance related
pay, share ownership. non
financial rewards, share
option, expense account,
pension, working conditions,
fringe benefit, recognition,
status, job rotation, job
enlargement, job enrichment,
team working
Chapter 6 Worksheet 6 CUP
27 November
3
Joe and Sasha p 76
Dates
YEAR 1
Organisational chart Draw, interpret and
understand simple
organisational charts:
• Simple hierarchical
structures: span of control,
hierarchy, chain of
command and delegation
• Roles, responsibilities and
inter-relationships between
people in
organisations
organisational structure,
organisation chart, chain
of command, span of
control, levels roles and
responsibilities, line
manager, staff manager
Chapter 7 Worksheet 7
CUP
Management and
leadership
Planning, organising,
controlling, coordinating,
commanding, controlling.
delegation, leadership
style, Autocratic,
democratic, laissez faire
Chapter 7 Worksheet 7
CUP
Organisational
structure
4 December
The role of management:
• Functions of management –
planning, organising, coordinating,
commanding and controlling
• Importance of delegation;
trust versus control
Review
11 December
ASSESSMENT
WEEK
AIR BRICK
LESSON
Catch up time for any lessons
missed or topics that need
more work following the
assessment
Holiday work Tabanski p
69
Communication
Why effective
communication is important
and the methods used to
achieve it:
• Effective communication
and its importance to
business
• Benefits and limitations of
different communication
methods
including those based on
information technology (IT)
• Recommend and justify
which communication
method to use in
given circumstances
Demonstrate an awareness of
communication barriers:
• How communication
barriers arise and problems of
ineffective
communication; how
communication barriers can
be reduced or
removed
communication, message,
transmit, sender, receiver,
medium, feedback,
effective communication,
internal communication,
external communication,
one way, two way,
communication methods,
verbal, written, visual,
one to one, video
conferencing, business
letter, memo, , report,
notice, formal and
informal, direction of
communication, barriers
to communication
Recruitment and
Selection
The methods of recruiting
and selecting workers:
• Recruitment and selection
• Difference between internal
and external recruitment
• Main stages in recruitment
and selection of staff
• Benefits and limitations of
part-time and full-time
workers
recruitment, selection,
Chapter 8 Worksheet 8
health and safety,
CUP
redndancy, job analysis,
job description, job
specification, internal/
external recruitment,
application form, CV/
resume, interview, part
time, full time,
recruitment agency, job
centre, short list, contract
of employment
Training
The importance of training
and the methods of training:
• Importance of training to a
business and workers
• Benefits and limitations of
induction training, on-thejob training
and off-the-job training
training, induction, on
the job, off the job,
8 January
Chapter 9 Worksheet 9,
CUP Motivating theory:
Taylor and Motivating there”
Maslow. remuneration
Joe and Sasha p 76
15 Jan
22 Jan
4
Chapter 8 Worksheet 8,
CUP Qp 112
Recruitment and
selection
Dates
YEAR 1
Reducing the
workforce
Why reducing the size of the workforce planning,
workforce might be
dismissal, redundancy,
necessary:
retire, resign, downsize
• Difference between
dismissal and redundancy
with examples to
illustrate the difference
• Understand situations in
which downsizing the
workforce might
be necessary, e.g. automation
or reduced demand for
products
• Recommend and justify
which workers to recruit/
make redundant
in given circumstances
Chapter 8 Worksheet 8 CUP
Trade unions
Trade unions:
Trade union, closed shop,
• What a trade union is and
industrial action
the benefits of workers being
union members
Chapter 7 Worksheet 7,
CUP Sasha and PPb p 90
Legal controls
Legal controls over
employment issues and their
impact on
employers and employees:
• Legal controls over
employment contracts, unfair
dismissal,
discrimination, health and
safety, legal minimum wage
Chapter 8 Worksheet 8,
CUP Q128-129
29 Jan
Discrimination, health
and safety, ethical, unfair
dismissal, industrial
tribunal, minimum wage
5 Feb
Review
Precision Tooling Case
study for holiday work
ASSESSMENT WEEK
SECTION 3
MARKETING
19 Feb
Marketing, marketing
department, customer
loyalty, customer
awareness, image, market
share, ageing population,
globalisation,
competitiveness,
Chapter 10, worksheet 10
CUP
Satisfying customer
needs
The role of marketing:
• Identifying customer needs
• Satisfying customer needs
• Maintaining customer
loyalty; building customer
relationships
Market changes:
• Why customer/consumer
spending patterns may
change
• The power and importance
of changing customer needs
• Why some markets have
become more competitive
• How business can respond
to changing spending
patterns and
increased competition
Niche and mass
markets
Concepts of niche marketing mass market, niche
and mass marketing:
market, premium price
Benefits and limitations of
each approach to marketing
Chapter 10, worksheet 10
CUP
Market
segmentation
How and why market
segmentation is undertaken:
• How markets can be
segmented, e.g. according to
age,
socio-economic grouping,
location, gender
• Potential benefits of
segmentation to business
• Recommend and justify an
appropriate method of
segmentation
in given circumstances
Chapter 10, worksheet 10,
CUP qp141
TEST WEEK
Chapters 1-5 Paper 1 and 2
type
26 Feb
5 Mar
5
market segments; socio
economic group, usage,
lifestyle,
Protecting staff
through legislation
Dates
YEAR 1
Chapter 11, Worksheet 11
CUP
Market research
The role of market research
and methods used:
• Market-oriented businesses
(uses of market research
information
to a business)
• Primary research and
secondary research (benefits
and limitations
of each)
• Methods of primary
research, e.g. postal
questionnaire, online
survey, interviews, focus
groups; the need for sampling
• Factors influencing the
accuracy of market research
data. Presentation and use of
market research results:
• Analyse market research
data shown in the form of
graphs,
charts and diagrams: draw
simple conclusions from such
data
product and market
orientation, marketing
budget, market research,
primary, secondary,
accuracy, questionnaires,
interviews focus groups
observation, sampling,
random sample, quota,
sample, reliability, bias,
respondents, tally chart,
bar chart, pie chart
Marketing Mix
Product
Product:
• The costs and benefits of
developing new products
• Brand image – impact on
sales and customer loyalty
• The role of packaging
Chapter 12, worksheet 12
marketing mix, 4ps,
types of product - types of CUP
goods consumer goods,
consumer services,
producer goods, producer
services , design, product
development, unique
selling point, brand
image, brand name, brand
loyalty, packaging,
Product life cycle
The product life cycle: main
stages and extension
strategies;
draw and interpret a product
life cycle diagram
• How stages of the product
life cycle can influence
marketing
decisions, e.g. promotion and
pricing decisions
product life cycle,
development,
introduction, growth,
maturity, situation,
decline, extending the
product life cycle,
extension strategy,
Price:
• Pricing methods: cost plus,
competitive, penetration,
skimming
and promotional; their
benefits and limitations
• Recommend and justify an
appropriate pricing method
in given
circumstances
• Understand the
significance of price
elasticity: difference
between price elastic demand
and price inelastic demand;
importance of the concept in
pricing decisions (knowledge
of the
formula and calculations of
PED will not be examined)
Chapter 12, worksheet 12
Price, pricing, pricing
CUP
strategy, cost plus,
competitive, penetration,
skimming, promotional,
psychological, dynamic,
price elasticity of demand,
elastic, inelastic
Conducting market
research
12 Mar
Chapter 12, worksheet 12,
CUP Q p167
19 March
ASSESSMENT WEEK
16 April
Marketing Mix
(Price)
23 April
6
Product life cycle
Dates
YEAR 1
Marketing Mix
(Promotion)
Promotion:
• The aims of promotion
• Different forms of
promotion and how they
influence sales,
e.g. advertising, sales
promotion
• The importance of the
marketing budget in making
promotion
decisions; need for cost
effectiveness in spending the
marketing
budget
Promotion, advertising,
sales
promotion,advertising
media, publicity, gifts,
bogof, competitions,
point of sale display,
demonstration, after sales
service, free sample,
public relations,
sponsorship, technology
and marketing, cultural
differences
Chapter 13, worksheet 13
CUP
Marketing mix
promotion
Distribution/Place
Place – distribution channels:
• Advantages and
disadvantages of different
channels
• Recommend and justify an
appropriate distribution
channel in
given circumstances
distribution channels,
retailer, wholesaler, agent,
department store, chain
store, discount store,
superstore, supermarket,
direct sales
Chapter 13, worksheet 13
CUP
Marketing mix place
E-Commerce
Technology and the
marketing mix:
• Define and explain the
concept of e-commerce
• The opportunities and
threats of e-commerce to
business and
consumers
• Use of the internet and
social networks for
promotion
e-commerce, website
design, perishable
Chapter 13, worksheet 13,
CUP Q p 197
Marketing strategy
Justify marketing strategies
appropriate to a given
situation:
• Importance of different
elements of the marketing
mix in
influencing consumer
decisions in given
circumstances
• Recommend and justify an
appropriate marketing
strategy in
given circumstances
Marketing strategy,
Chapter 14, worksheet 14,
CUP Q1 p 205
Law and marketing
The nature and impact of
legal controls related to
marketing:
• Impact of legal controls on
marketing strategy, e.g.
misleading
promotion, faulty and
dangerous goods
legal controls and
Chapter 15 worksheet 15
marketing; weights and
CUP
meaures, trade
descriptions, sale of goods
and services, distance
selling regulations
Entering foreign
markets
The opportunities and
problems of entering new
markets abroad:
• Growth potential of new
markets in other countries
• Problems of entering
foreign markets, e.g. cultural
differences
and lack of knowledge
• Benefits and limitations of
methods to overcome such
problems,
e.g. joint ventures
Chapter 15 worksheet 15,
Lack of knowledge,
CUP Q2 p205
cultural differences,
exchange rate, import
restrictions, non payment,
risk, transport costs, joint
venture, licensing,
international franchising,
glocalisation
30 May
TEST WEEK
7 May
14 May
21 May
7
Dates
YEAR 1
OPERATIONS
MANAGEMENT
Production of goods
and services
The meaning of production:
• Managing resources
effectively to produce goods
and services
• Difference between
production and productivity
• Benefits of increasing
efficiency and how to
increase it,
e.g. increasing productivity
by automation and
technology,
improved labour skills
• Why businesses hold
inventories (stocks)
• Concept of lean
production; how to achieve
it, e.g. just-in-time
inventory control and
Kaizen; benefits of lean
production
Production, resources
effective, efficient, input,
output operations
department, productivity,
stock (inventory), buffer
inventory level, reorder
level, lean production,
overproduction, defects,
kaizen, just in time, cell
production,
Chapter 15 worksheet 15
CUP
Job, batch and flow
The main methods of
production:
• Features, benefits and
limitations of job, batch and
flow
production
• Recommend and justify an
appropriate production
method for a
given situation
4.1.3 How technology has
changed production
methods, e.g. using
computers in manufacturing
and design
job, batch, flow,
automation,
mechaniation, CAD,
CAM, CIM, EPOS,
EETPOS, contactless
payment
Chapter 15 worksheet 15
CUP Q p 221
REVISION
Teen Fashions for
holiday work
4 June
RERVISION
PROGRAMME
11 June
RERVISION
PROGRAMME
18 June
RERVISION
PROGRAMME
25 June
EXAM WEEK
YEAR 2
YEAR 2
1
Costs
Identify and classify costs:
• Classifying costs – fixed,
variable, average, total; use
examples to
illustrate these
• Use cost data to help make
simple cost-based decisions,
e.g. to
stop production or continue
costs, fixed, variable, total, Chapter 16 worksheet 16
average,
Economies and
diseconomies of
scale
Economies and diseconomies
of scale:
• The concepts of economies
and diseconomies of scale;
examples
of both
economies of scale:
purchasing, marketing,
financial, managerial,
diseconomies: poor
communication, low
morale, slow decision
making
2
8
Chapter 16. worksheet
16
Dates
YEAR 1
Breakeven
Explain, interpret and use a
simple break-even chart:
• The concept of break even
• Construct, complete or
amend a simple break-even
chart
• Interpret a given chart and
use it to analyse a situation
• Use a chart to help make
simple decisions, e.g. impact
of higher
price
• Understand the limitations
of break-even charts
Break even level of
output, brea even chart,
profit, loss, breakeven
point, breakeven formula
margin of safety
Chapter 16 worksheet 16 q
p 233
Achieving quality
production
Why quality is important and
how quality production
might be
achieved:
• What quality means; why it
is important for all businesses
• Concept of quality control
and how businesses
implement quality
control
• The concept of quality
assurance
quality, quality control,
quality assurance, TQM,
quality circle, quality
mark
Chapter 17 worksheet 17. q
p 240
Quality
Location
The main factors influencing
the location and relocation
decisions of a
business:
• Factors relevant to the
location decision of
manufacturing
businesses and service
businesses
• Factors that a business
could consider when deciding
which
country to locate operations
in
• The role of legal controls on
location decisions
• Recommend and justify an
appropriate location for a
business in
given circumstances
Factors affecting location
in UK and abroad, legal
controls and location,
multinational, incentives,
trade barriers, tariffs.
planning regulations,
government grant,
government subsidy, tax
rates
Chapter 18 worksheet 18, q
p254
Choosing the right
location
3
4
FINANCE
Sunshine Foods
Sources of finance
The need for business
finance:
• The main reasons why
businesses need finance, e.g.
start-up
capital, capital for expansion
and additional working
capital
• Understand the difference
between short-term and longterm
finance needs
5.1.2 The main sources of
capital:
• Internal sources and
external sources with
examples
• Short-term and long-term
sources with examples, e.g.
debt or
equity for long-term finance
• Importance of microfinance in developing
economies
• The main factors
considered in making the
financial choice, e.g.
size and legal form of
business, amount required,
length of time,
existing loans
• Recommend and justify
appropriate source(s) of
finance in given
circumstances
5
9
Chapter 19 worksheet 19, q
finance, capital and
revenue expenditure, start p 271
up capital,, short term.
long term, working
capital, internal finance,
external finance, retained
profit, sales of existing
assets, debenture, debt
factoring, microfinance,
overdraft, trade credit,
bank loan, hire purchase,
leasing, issue of shares,
risk, gearing, security
Financing growth,
financing for large
business
Dates
YEAR 1
Cash flow
The importance of cash and
of cash-flow forecasting:
• Why cash is important to a
business
• What a cash-flow forecast
is, how a simple one is
constructed
and the importance of it
• Amend or complete a
simple cash-flow forecast
• How to interpret a simple
cash-flow forecast
• How a short-term cash-flow
problem might be overcome,
e.g.
increasing loans, delaying
payments, asking debtors to
pay more
quickly
5.2.2 Working capital:
• The concept and
importance of working
capital
Chapter 20 worksheet 20,
cash, cash flow, inflow,
qp282
outflow, cash flow cycle,
cash flow forecast
(budget), cash flow
problems, working capital,
profit, opening cash, net
cash flow, closing cash
Income statement
(profit and loss)
5.3.1 What profit is and why
it is important:
• How a profit is made
• Importance of profit to
private sector businesses, e.g.
reward for
risk taking/enterprise, source
of finance
• Difference between profit
and cash
5.3.2 Income statements:
• Main features of an income
statement, e.g. revenue, cost
of
sales, gross profit, profit
(‘profit’ was known as ‘net
profit’ in the
2014 and previous syllabuses )
and retained profit
• Use simple income
statements in decision
making based on
profit calculations
(constructing income
statements will not be
examined)
Accounts, accountant,
final accounts, profit,
profit v cash, income
statement, gross profit,
sales revenue, cost of
goods sold, trading
account, net profit,
depreciation, retained
profit
Chapter 21 worksheet 21, q
p 293
Profit and loss
accounts
Balance sheet
The main elements of a
balance sheet:
• The main classifications of
assets and liabilities
• Examples to illustrate these
classifications
5.4.2 Interpret a simple
balance sheet and make
deductions from it,
e.g. how a business is
financing its activities and
what assets it
owns, sale of inventories to
raise finance (constructing
balance
sheets will not be examined)
balance sheet, assets and
liabilities; non current
assets, current assets, non
current liabilities, current
liabilities
Chapter 22 worksheet 22, q
p 301
Balance sheets
Forecasting cash flow
6
Week 6
Week 7
10
Dates
YEAR 1
Analysis of accounts
How to interpret financial
statements by calculating and
analysing
accounting ratios:
• Gross profit margin
• Profit margin (‘profit
margin’ was known as ‘net
profit margin’ in
the 2014 and previous
syllabuses )
• Return on Capital
Employed
• Current ratio
• Acid test ratio Liquidity:
• The concept and
importance of liquidity
5.5.3 Why and how accounts
are used:
• Needs of different users of
accounts and ratio analysis
• How users of accounts and
ratio results might use
information
to help make decisions, e.g.
whether to lend to or invest
in the
business
Liquidity, capital
employed, ratios ROCE,
gross profit margin, net
profit margin,
profitability, Current
ratio, acid test,
stakeholder
Q p 311
THE PARADISE GROUP
Week 8
Government
economic objectives
and policies,
environment
How government control
over the economy affects
business activity:
• Government economic
objectives, e.g. increasing
Gross
Domestic Product (GDP)
• Main stages of the business
cycle; growth, boom,
recession,
slump
inflation, real income,
Chapter 24, worksheet
unemployment, economic 24
growth , gross domestic
product, Balance of
payments, business cycle,
boom, recession, slump,
exports, imports, balance
of payments deficit
Government
economic objectives
and policies,
• How changes in taxes and
government spending can
affect
business activity
• How changes in interest
rates can affect business
activity
• How businesses might
respond to these changes
fiscal policy, direct taxes,
indirect taxes, disposable
income, income tax,
corporation tax , VAT,
tariff, quota, government
spending, monetary
policy, interest rates,
exchange rate
appreciation, supply side
policy, privatisation,
Chapter 24, worksheet
24,q p 328
Government
economic objectives
and policies,
• How changes in taxes and
government spending can
affect
business activity
• How changes in interest
rates can affect business
activity
• How businesses might
respond to these changes
fiscal policy, direct taxes,
indirect taxes, disposable
income, income tax,
corporation tax , VAT,
tariff, quota, government
spending, monetary
policy, interest rates,
exchange rate
appreciation, supply side
policy, privatisation,
Chapter 24, worksheet
24, q p 328
Week 9
Week 10
Term 2 Week 1 and 2
11
impact of interest
rates, and the business
cycle
Dates
YEAR 1
11/12 Environment and
ethics
Environmental concerns and
ethical issues as both
opportunities and
constraints for businesses:
• How business activity can
impact on the environment,
e.g. global
warming
• The concept of
externalities; possible
external costs and external
benefits of business decisions
• Sustainable development –
how business activity can
contribute
to this
• How/why business might
respond to environmental
pressures
and opportunities; pressure
groups
• The role of legal controls
over business activity
affecting the
environment, e.g. pollution
controls
• Ethical issues a business
might face; conflicts between
profits
and ethics
• How business might react
and respond to ethical issues,
e.g.
child labour
Social responsibility,
environment,
externalities, sustainable
development pressure
groups, legal controls,
ethical issues
Chapter 25, worksheet 25
q p 339
Globalisation
The importance of
globalisation:
• The concept of
globalisation and the reasons
for it
• Opportunities and threats
of globalisation for
businesses
• Why some governments
might introduce import
tariffs and
quotas
globalisation Chapter 26, worksheet
opportunities and threats, 26
tariffs and quotas,
multinationals, exchange
rates
Multinational
Corporations
Discuss benefits to a business
of becoming multinational
(MNC). Explain potential
benefits to a country and/ or
economy where a MNC is
located, eg. job, exports,
increased choice, investment.
Identify potential drawbacks
to a country and/ or economy
where a MNC is located, eg.
reduced sales of local
businesses, repatriation of
profits.
Chapter 26, worksheet
26
Exchange rates
The impact of exchange rate
changes:
• Depreciation and
appreciation of an exchange
rate
• How exchange rate changes
can affect businesses as
importers
and exporters of products,
e.g. prices, competitiveness,
profitability (exchange rate
calculations will not be
examined)
Chapter 26, worksheet
26, q p 348
Term 2 Week 3
EXTERNAL
INFLUENCES
Week 4
Week 5
HALO ENTERPRISES
REVISION
PROGRAMME
BEGINS
12
Impact of exchange
rate