"Contrary to popular belief, my experience has shown me that the people who are exceptionally good in business aren't so because of what they know but because of their insatiable need to know more." ~ Michael E Gerber Congratulations, a smart choice!! Studying A level Business can be used as a stepping stone into virtually any type of vocation or career. That’s because the knowledge acquired by Business students is equally relevant whether they want to enter human resources, sales and marketing, financial services, learning and development or any one of the vast range of different jobs. Even chemists and doctors have to know how to manage people, display leadership and provide an efficient service. Business studies will give you an insight into how! The course covers a wide variety of areas including Finance, Marketing, Human Resource management, Operations management and Strategic management. Course Structure At AS students focus on small to medium sized businesses operating within national as opposed to international markets. Unit 1 - BUSS1 Planning and Financing a Business 40% of AS, 20% of A Level 1 hour 15 minutes examination 60 marks Short answer questions and extended responses based on a mini case study. Unit 2 – BUSS2 Managing a Business 60% of AS, 30% of A Level 1 hour 30 minutes examination 80 marks Compulsory, multi-part data response questions. At A2 units build on AS knowledge by considering more complex business scenarios and focusing on strategy. Unit 3 – BUSS3 Strategies for Success 25% of A Level 1 hour 45 minutes examination 80 marks Questions requiring extended answers based on an unseen case study drawing upon knowledge from AS units. Unit 4 – BUSS4 The Business Environment and Managing Change 25% of A Level 1 hour 45 minutes examination 80 marks Pre-release research tasks leading to the first section of a two section examination. Second section will consist of choice of essays. All questions will be essay style and synoptic therefore drawing upon knowledge from all four units. Enterprise Project: At AS all students will take part in an enterprise challenge. In small teams they will plan the start up of a small business. They will conduct research, draw up a Business plan and ultimately pitch to ‘The Moorlands Dragons’ to see which small Business would secure the Dragons investment. This is a superb opportunity for students to develop team working skills, leadership skills and build confidence whilst applying their learning to a practical task. Destinations for former students & Careers linked to Business Studies Many former students have chosen to continue their study of Business at University and have taken one of the many and varied degree courses available. Examples include: Business with Human Resource Management Business & Marketing Business & Law Business & Management Business with Accounting Business with IT Trips & Fun The department run several trips during the two years which normally include: Cadburys World – tour of factory looking at production & lecture on managing a visitor attraction. Chester Zoo – tour of zoo, lecture on marketing of the zoo. Trafford Centre – customer service MOD Teambuilding Day Drayton Manor Park – Marketing presentation & park visit Students also take challenge run by University part in a Management CIPFA at Staffordshire Reading List This list contains a set of articles, videos and books that you are asked to view before you begin the Business Studies AS course at Moorlands! http://www.tutor2u.net/blog/index.php/businessstudies/comments/innovation-and-ideas-what-makes-a-successfulbusiness-concept/#extended http://www.tutor2u.net/blog/index.php/business-studies/comments/fromcrisps-to-vodka-a-profile-of-a-down-to-earth-entrepreneur/ http://www.tutor2u.net/blog/index.php/business-studies/comments/anawfully-good-start-up-story/ http://www.tutor2u.net/blog/index.php/businessstudies/comments/entrepreneur-video-an-interview-with-fraser-doherty/ http://tutor2u.net/blog/index.php/business-studies/comments/aqa-asbusiness-unit1-recommended-websites/ http://tutor2u.net/business/gcse/finance_business_costs.htm http://tutor2u.net/blog/index.php/business-studies/comments/what-isprofit-and-why-is-it-important/ http://tutor2u.net/business/gcse/finance_profit.htm http://www.bized.co.uk/reference/glossary/Entrepreneurship http://www.bbc.co.uk/dragonsden/dragons/hilarydevey.shtml http://www.hilarydevey.com/about-hilary-about-hilary/ http://www.telegraph.co.uk/finance/newsbysector/retailandconsumer/775 3166/Sir-Philip-Green-the-billionaire-who-wont-waste-a-penny.html http://en.wikipedia.org/wiki/Philip_Green Compulsory Tasks 1. Print off the AQA specification by following the given link to the website: a. You need to click on key materials b. Select Specification V1.2 c. Print off pages 6-12. d. This will give you the entire topic breakdown for Unit 1 and Unit 2. Link: http://web.aqa.org.uk/qual/gce/business/business_materials.php?id=05& prev= 2. Read the Case study and answer the following questions. You may need to do some research to understand the terms and theory. Please handwrite the answers and hand in during the first lesson. Pierre’s Personalised T-Shirts Pierre planned to purchase T-shirts and print slogans and messages on them as requested by customers. He wanted to start up a business quickly because he had been told that sales for new businesses in this market grew at 30% per annum. Furthermore, he was aware of a number of businesses planning to enter this market. He also knew that a major competitor, with a 20% market share, was in financial difficulties and expected to stop trading in 2012. Pierre had limited funds available but was able to use his skills in website design to create a website to promote his business and, once the business started trading, to allow online purchasing in the electronic market. Pierre’s secondary market research indicated that: -shirts appealed to every market segment and was an effective way of adding value to basic T-shirts buy in bulk through the electronic market competitors allowed customers, such as clubs, to delay payment by three months. Pierre would need to match these terms in order to compete Pierre’s. In December 2011, Pierre decided to carry out some primary market research which included views on his website. He interviewed 15 individuals. This research showed that: repeat sales would depend more on the quality of the T-shirt than on the price sales would be very seasonal, with peaks at Christmas and the summer 60% of his sample believed that Pierre’s website looked good and was easy to use. Pierre had some crucial decisions to make (see Figure 1). Figure 1: Pierre’s decisions Pierre believed that renting premises would make it easier to store the Tshirts and to control stock and organise deliveries. He also decided to employ two part-time workers who would be paid a higher rate than his competitors. Pierre thought that this would keep the employees loyal and morale high. Pierre estimated that fixed costs, including rent, would be £48 000 per annum. In addition to the cost of the T-shirt, Pierre’s other variable costs (labour, power and printing costs) would be 50p per T-shirt. Based on his forecast of sales increasing by 30% each year, Pierre produced a cash flow forecast for the first three years. Pierre then calculated the ‘opening balance’ for each quarter (see Figure 2). The bank manager offered Pierre a £20 000 bank overdraft. Pierre accepted this offer and started trading on 3 January 2012. Pierre set himself one primary objective – to achieve an annual profit of £15 000 in his second year. 1 (a) What is meant by the term ‘market segment’ (line 11)? ....................................................................................................................................... ....................................................................................................................................... ....................................................................................................................................... ....................................................................................................................................... (2 marks) 1 (b) What is meant by the term ‘electronic market’ (line 9)? ....................................................................................................................................... ....................................................................................................................................... ....................................................................................................................................... ....................................................................................................................................... (2 marks) 1 (c) Explain one reason why personalising T-shirts might be an effective way to add value. ....................................................................................................................................... ...................................................................................................................................... ....................................................................................................................................... ....................................................................................................................................... ....................................................................................................................................... ....................................................................................................................................... ....................................................................................................................................... ....................................................................................................................................... (4 marks) 1 (e) Explain possible reasons why Pierre carried out primary market research. ....................................................................................................................................... ....................................................................................................................................... ....................................................................................................................................... ....................................................................................................................................... ....................................................................................................................................... ....................................................................................................................................... ....................................................................................................................................... ....................................................................................................................................... ....................................................................................................................................... ....................................................................................................................................... ....................................................................................................................................... ....................................................................................................................................... (6 marks) 2 (a) Analyse the benefits to Pierre’s business of having the bank overdraft. ...................................................................................................................................... ....................................................................................................................................... ....................................................................................................................................... ....................................................................................................................................... ....................................................................................................................................... ....................................................................................................................................... ....................................................................................................................................... ....................................................................................................................................... ....................................................................................................................................... ....................................................................................................................................... ....................................................................................................................................... ....................................................................................................................................... ....................................................................................................................................... ....................................................................................................................................... ....................................................................................................................................... ....................................................................................................................................... ....................................................................................................................................... ....................................................................................................................................... ....................................................................................................................................... ....................................................................................................................................... (10 marks) 3 (a) Do you think Pierre’s business will be successful. Justify your view ...................................................................................................................................... ....................................................................................................................................... ....................................................................................................................................... ....................................................................................................................................... ....................................................................................................................................... ....................................................................................................................................... ....................................................................................................................................... ....................................................................................................................................... ....................................................................................................................................... ....................................................................................................................................... ....................................................................................................................................... ....................................................................................................................................... ....................................................................................................................................... ....................................................................................................................................... ....................................................................................................................................... ....................................................................................................................................... ....................................................................................................................................... ....................................................................................................................................... ....................................................................................................................................... ....................................................................................................................................... ....................................................................................................................................... ....................................................................................................................................... ....................................................................................................................................... ....................................................................................................................................... ....................................................................................................................................... ....................................................................................................................................... ....................................................................................................................................... ....................................................................................................................................... ....................................................................................................................................... ....................................................................................................................................... ....................................................................................................................................... ....................................................................................................................................... ....................................................................................................................................... ....................................................................................................................................... ....................................................................................................................................... ....................................................................................................................................... (15 marks) Induction Task Information During the first two weeks on the course you will be asked to research a topic in preparation for an assessment. 50% of the assessment will be based on the material taught in class and the further 50% on your own research. The transition reading you are completing during the summer will aid your performance in this assessment. Business Studies: Classroom Policy Before you begin your Business Studies course, please read and sign the Business classroom policy as stated below. These are a set of standards that we expect all our students to adhere to in all Business Studies lessons. Behaviour: o I will act in a Business like fashion at all times whilst in the classroom, including listening to other people’s ideas and answers, but also contributing towards discussion myself o I will work towards my LAT grades at all times, to achieve the best I can from the Business Studies course Equipment: o I will bring the following equipment with me to every lesson: Pen Pencil Calculator Revision Guide Homework pack Homework: o I will complete all homework set, and hand it in on time to the correct location o I will complete all homework to the best of my ability, and seek help and/or advice prior to the hand in date should I find difficulties with the task set Files: o I will ensure that my file is kept up to date with all handouts, notes and marked pieces of work in preparation for any file spot checks o I will ensure that I complete all notes and write-ups sufficiently to provide me with as much information as possible for revision Merits/Demerits: o I understand that any outstanding work and/or behaviour will be rewarded using the college merit system o I understand that failure to adhere to any of the above points will result in being de-merited using the college system, and that 3 demerits will result in a red slip being issued. Name: Signature: Date: AS Student Scheme of Work The Business Studies AS course is split up into 2 different units. You will have an exam on Unit 1 material in January and an exam in Unit 2 in June. Unit 1 is mainly focused around setting up and running your own small business, whereas Unit 2 is mainly focused about planning and managing a medium sized organisation. Please note that this scheme is a general guide and must be used in conjunction with the specification for full detail! UNIT 1 Specification Reference 1.1 1.2 1.3 1.4 1.5 1.6 1.7 Topics Enterprise Enterprise and entrepreneurs, risk and rewards, opportunity cost, motives for becoming an entrepreneur, government support Generating and Protecting Business Ideas Sources of ideas, identifying niches, franchises, copyright, patents and trademarks Transforming Resources into Goods and Services The transformation process and adding value. Developing Business Plans Purpose and contents, sources of information Conducting Start-Up Market Research Methods of primary, secondary, quantitative and qualitative research, size and types of samples, factors influencing sampling. Understanding Markets Nature, segmentation and the importance of demand and types of markets and market size, growth and share Choosing the Right Legal Structure Sole-traders, partnerships, LTD’s, PLC’s and not-for-profit businesses. CGP Revision Guide reference 6 8 4 24 12 10 14 1.8 1.9 1.10 1.11 1.12 1.13 1.14 1.15 Raising Finance Sources of finance: ordinary share, capital, loan capital (bank loans, overdrafts only), venture capital and personal sources. Locating the Business Factors influencing the decision: technology, costs, infrastructure, the market and qualitative factors. Employing People Types of employees including consultants and advisors. Costs, Revenues and Profits Fixed, variable and total costs, price, total revenue and profit Break-even analysis Contribution, calculating break-even and constructing charts, analysing impact of changing variables strengths and weaknesses Cash Flow Forecasting Nature of cash flow and how to forecast structure of a forecast and reasons for forecasting. Budgets Types of budgets, the process and problems. Assessing Business Start-Ups Objectives, strengths and weaknesses of a plan, risks and causes of failure. 18 20 22 26 28 30 32 UNIT 2 Specification Reference 2.1 2.2 2.3 2.4 2.5 2.6 2.7 Topics Using Budgets Benefits and drawbacks, calculation of variances, using variances to make decisions. Improving Cash Flow Causes of cash flow problems and methods of improvement: overdrafts and short-term loans, factoring and sale or sale and leaseback of assets. Measuring and Increasing Profit Calculation and understanding of net profit margin and return on capital, methods of improving profits/profitability, cash/profit distinction Improving Organisational Structures Key elements, workforce roles, how structure affects business performance levels of hierarchy/spans of control workloads/job allocation delegation communication flows Measuring the Effectiveness of the Workforce Methods of Measurement: labour productivity and labour turnover. Developing an Effective Workforce Recruitment, selection and training. • the recruitment process • internal and external recruitment • selection :interviews, assessment centres, tests • how recruitment and selection can improve a workforce • on the job / off the job training Developing an Effective Workforce Motivating employees • using financial methods to motivate employees • improving job design • empowering employees • working in teams • theories of motivation CGP Revision Guide reference 32, 34 30,31 36,37 38 40 42 44 2.8 2.9 2.10 2.11 2.12 2.13 2.14 2.15 Making Operational Decisions Operations targets, calculating and managing capacity utilisation, operational issues. Developing Effective Operations Quality: meaning, control V’s assurance, systems of quality, assurance, quality standards. Developing Effective Operations Customer service • methods of meeting customer expectations • monitoring and improving customer service • the benefits of high levels of customer service Working with Suppliers Choosing effective suppliers, role played by suppliers in improving performance Using Technology in Operations Types of technology and issues in use: robotics, automation such as stock control, communications and design technology. Effective Marketing The purpose of marketing Niche and mass marketing Using the Marketing Mix Product • influences on the development of new goods and services • unique selling points (or propositions) • product portfolio analysis • product life cycle Using the Marketing Mix Promotion • Elements of the promotional mix: PR, branding, merchandising, sales promotions, direct selling and advertising. • influences on the choice of promotional mix 46 48 50 52 54 56 58, 60 64 2.16 2.17 2.18 2.19 Using the Marketing Mix Pricing • pricing strategies • pricing tactics • influences on pricing decisions Using the Marketing Mix Place • choosing appropriate outlets/distributors • types of distribution channels Designing an Effective Marketing Mix • influences on the marketing mix • the importance of an integrated marketing mix Marketing and Competitiveness • the possible impacts of market conditions and degree of competition • determinants of competitiveness • methods of improving competitiveness 66 70 59 72