Scheme of Work Edexcel Business Studies AS Unit 2b. Business Economics. January – May 2009
Week
Edexcel specification
Edexcel amplification
1–3
How Businesses Respond to their Markets
1
The Nature of Markets
Dynamic nature of markets
Resources
IM B.S. 3rd Edn 2008 Chapter 32: Marketing and competitiveness
Topical Cases: Diet Coke Plus: focuses on why Coca-Cola is ‘scared’ of the changing
competition and the changes in consumer tastes and attitudes
2
Changes in Demand and Supply
The profit-signalling mechanism and the
allocation of resources
Changes in price
How changes in the conditions of
demand and supply affect price and
output, implications for business
Price elasticity of demand
Effect on businesses of price changes,
implications for pricing strategies,
effects on total revenue
Determinants of Price Elasticity of
Demand (PED) values
Business Review February 2004: Responding to Market Change, Nancy Wall
A-Z Worksheets: full set of questions on changes in supply, demand and price
IM B.S. 3rd Edn 2008 Chapter 29: Price elasticity: this has full coverage, plus
Section a, B1 and B2 questions
Business Review Nov 2004: Price (one of 4 articles on the Mix in Volume 11)
A-Z Worksheets: full set of questions on price elasticity
Topical Cases Dec 2006: nice, visual worksheet on price elasticity
Topical Cases Nov 2007 New York: pricing decisions for a business start-up
3
Changes in income
Effect on businesses of income
changes, implications for products and
marketing. Determinants of Income
Elasticity of Demand (YED) values
The purpose of marketing in changing
markets
Use of marketing to defend or gain
market share – relevant marketing
strategies, marketing ethics
4
How Does Market Structure Affect Business?
4.0
(half a
week)
How does competition affect the
market?
The effect on the degree of
competition on market price and output.
The effects of changes in the nature of
competition – the development of ecommerce and online retailing, the ‘long
tail’.
A-Z Worksheets: full set of questions on income elasticity
Topical cases: Pure It: strong case raising issues of marketing ethics
A-Z Worksheets: full set of questions on market conditions.
Business Review April 2007: The Long Tail – super article by Roger Williams
4.5
(half a
week)
Different market structures
Monopoly, oligopoly, imperfect and
perfect competition and the spectrum
of competition
Barriers to entry and exit
IM B.S. 3rd Edn 2008 Chapter 32: Marketing and competitiveness, including Revision
questions A 1-10 and a terrific case study on Indian restaurants
A-Z Worksheets: full set of questions on Barriers to Entry and Exit
Likely effect on profit levels, pricing,
promotion, company efficiency and
consumer choice of products
5-8
What Makes Firms Effective?
5-5.5
Half a
week
How managers can get the best from
their staff
5.5-6
Half a
week
Different Types of Organisational
Structures
Delegation, consultation, empowerment,
team working, job enrichment, flexible
working, Total Quality Management as
part of company culture
How the organizational structure, for
example the chain of command, span of
control, decentralisation and
centralisation affects the ability to
manage the business effectively
IM B.S. 3rd 2008: Chapter 35: useful chapter, especially the Section A questions 110 and Data Response Q B1 on Empowerment
The Truth About Managing People: Ch.33 – What makes teams work; Ch.43 4 Job
Design actions to improve productivity
Business Review February 1998: aged article on Teamworking by Ian M: hasn’t dated
at all; still worth digging up.
IM B.S. 3rd 2008: Chapter 37 covers all this material very effectively and fully.
B.Review: Feb 2004: ‘Is there a right span of control?’ Good article by S Harrison;
November 2002: Decentralisation – The arguments For and Against
Business Case Studies 3rd Edn: No 48 ‘Management Structure’ A highly
accessible case study covering all the key areas: lines of authority, spans of
control and drawing an organizational chart.
Topical Cases: ‘Ida’ (real case about a student’s experiences working at a Bingo Club: good
on organizational structure)
7
Productivity and efficiency
Capacity utilisation
8
Lean Management
Amount of capital and labour intensity
used.
Implications of under- and overutilization of capacity, ways of
improving capacity utilisation
Minimising waste of resources to give
competitive advantage
IM B.S. 3rd 2008: Ch 47 Capacity utilisation. This chapter also incorporates capital
and labour intensity.
Business Review Sept 2005: ‘Capacity utilisation’ by A Gillespie; November 2003:
‘Labour and Capital Intensity’
A-Z Worksheets: full set of questions on Capacity utilisation and intensity
Business Case Studies: number 36 ‘Robot Hel’ covers capacity utilization and labour v
capital intensity (get them to do Qs 2, 4 and 5 as class discussion then write-up for
homework)
IM B.S. 3rd 2008: Ch 46 gives full coverage, including of the minimization of resource
usage.
Just-In-Time management of stock
Competitive advantage of short product
development lead times
Business Case Studies: Case 43 For JIT, don’t be afraid of the huge case on JIT –
the Japanese Way. It’s a highly explanatory case, i.e. it tells students about JIT in
theory and practice. If they read it, you wouldn’t need extra teaching on JIT.
Business Review Sept 2002: useful article on the downsides to lean production; it
hasn’t really dated. Business Review Sept 2001: article by Ian M on First Mover
Advantage (included as a Word file in case you wish to update some examples; the
text remains rock solid)
Business Case Studies 3rd Edn. Cases 37 and 38 are very useful on time-based
management
9 – 10
9.
Businesses Big & Small
Reasons for bigger businesses
Increased market share, profitability,
sales turnover and power
How increasing size affects costs
Economies of scale and falling average
cost, implications for business and links
to competitive advantage
Minimum Efficient Scale
10.
How size affects market power
Diseconomies of scale
Characteristics of monopoly/monopsony
power, effects of monopoly power on
business and stakeholders,
disadvantages and advantages
Small is beautiful
11-14
11
IM B.S. 3rd 2008: Ch 81, including the section A and B questions. The chapter
includes min efficient scale and diseconomies of scale.
A-Z Worksheets: full set of questions on Economies and Diseconomies of Scale
A-Z Worksheets: full set of questions on monopoly and monopsony power.
Why small businesses exist and flourish
despite the lack of economies of scale;
niche markets and micro-marketing
How Does Macro-economic Change Affect Business?
Business Review February 2000: ‘Does Size Matter? This Ian Marcouse article is old
but still well worth using; contains some super data
What is the economic cycle?
Cycles of changes in growth and output
of Gross Domestic Product, implications
for business of stages of the economic
cycle
IM B.S. 3rd 2008: Ch 88 Impact on firms of economic variables
Why some businesses are affected
more than others by the economic cycle
and in different ways.
Business Review April 2006: Interpreting Economic Data
Real and nominal values
A-Z Worksheets: full set of questions on real and nominal values
Business Review, November 2004: Business in the Next Recession
12
13
14
15
15
How does inflation affect us all?
What is unemployment and how does
it affect us all?
What is structural change?
What are the implications for
business?
Uncertainty, re-distribution of wealth,
loss of competitiveness, skills shortages
Unemployment, costs to the economy,
opportunity cost, social cost
IM B.S. 3rd 2008: Ch 88 Impact on firms of economic variables
Business Review November 2001: UK Business and Low Inflation
IM B.S. 3rd 2008: Ch 88 Impact on firms of economic variables
Business Review February 2002: UK Business and Low Unemployment, N Wall
Responding and adapting to change,
implications of change for the future,
the rise of the knowledge economy
Business Review November 2002: The Learning Organisation
Shock, macroeconomic change,
exchange rate movements, government
intervention
IM B.S. 3rd 2008: Ch 91 Govt policies affecting business
An Uncertain Future
Causes of uncertainty
Why uncertainty is a problem
Effects of uncertainty on business
planning and strategic decisions
Business Review September 2006: Has Gordon Brown Been Good For Business? N
Wall
The desire by organisations to minimize
uncertainty and therefore risk
How businesses can try to reduce
uncertainty
16
Revision & Exam Practice, including
exam timing and technique
Use of macro-economic indicators,
planning, research and development
(R&D), market orientation and market
research
IM B.S. 3rd 2008: Ch 92 How Firms Respond to Actual Changes
Introduction to Enterprise Ch 14 ‘Calculated risks’ It’s aimed at GCSE, but this short
chapter is worthwhile, including the Practice Question on page 58
Business Review February 2005: The Importance of R&D (by Tim Mason)
IM B.S. 3rd 2008: Ch 50: A Grade Business Concepts for AS
IM B.S. 3rd 2008: Ch 51: What the examiner wants – assessment objectives
IM B.S. 3rd 2008: Ch 52: Tackling Data Response exam questions
IM B.S. 3rd 2008: Ch 53: AS Mock exam
IM B.S. 3rd 2008: Ch 54: Answers to the Mock plus examiner’s comments
Resources for Edexcel 2008 Specification*
*Obviously many more books will come out in the coming months, but at present these are the only ones for which there are full details available.
Title
How They Started
Author
Publisher
potted review
Lester D
Crimson Publishing 2007
30 stories of business start-ups, including super ones
such as Moneysupermarket.com, Bebo and Friends
Reunited
ISBN: 1864 58400-6
Starting Your Own Business
Lester D
Crimson Publishing 2008
ISBN: 185458401-4
Business Case Studies 3
Edition**
rd
Lines D and Marcouse I
Longman 2002
ISBN 0 582 40636 6
Business Studies, 3rd
Edition**
Marcouse I. Ed and lead author
Hodder Arnold April 2008
Surridge M, Gillespie A et al
ISBN 0 340 966 904
A-Z Worksheets
(Photocopiable pack plus CD)
Marcouse I and Marcouse C
A-Z Business Training Ltd May 2008
Pack 101 Edexcel Economics and
Business AS Level
Pack 102 Edexcel Business Studies
AS Level
Introduction to Enterprise
Marcouse I.
Hodder Arnold 2007
ISBN 0 340 92698 8
Organisational Theory 5th
Edn
Pugh D.S.
The Truth About Managing
People 2nd Edn
Robbins S
Financial Times Guide to
Business Start Up
Williams S
Penguin Books 2007
ISBN 0 141 03270 2
Pearson Books 2008
0 273 71532 0
Prentice Hall 2007
ISBN: 0 273 71487 3
An easily accessible text on how to start up; full of
cases and insight
Not to be ignored. Some cases have dated, but many
are timeless and some are ageing classics!
Not really a 3rd Edition, as almost everything is 100%
freshly written to match the new 2008 Specs. As
before, plenty of student activities/homeworks
100 worksheets on specific topics for Edexcel Business
and Economics or Edexcel Business Studies. Printed on
high grade paper in ring binder for copying and comes
with a CD for printing straight from your computer.
A GCSE book, but still fantastic to have on the
bookshelf; in the first half of the AS, you’ll use this
more often than you’d expect!
A new edition of the classic book. With a new (awful)
cover, but still has key texts (terrific ‘stretch and
challenge’ material)
Short, sharp insights into People Management. Ideal
for this AS course
Very detailed book, for of authority and often insight;
for staff, not students
** With Teacher’s Guides (answer books plus other resources)
Other key contacts: Business Review, Turpin Distribution, Pegasus Drive, Stratton Business Park, Beds SG18 8TQ or phone 01767 604974
Topical Cases, A-Z Business Training Ltd, 3 Rayleigh Road, London SW19 3RE, email marcouse@btopenworld.com or see www.a-zbusinesstraining.com
Tutor2U, at www.tutor2u.com – currently their classroom materials are poorly suited to the 2008 specs; doubtless that will change.