Business Transition work

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"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)?
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(2 marks)
1 (b) What is meant by the term ‘electronic market’ (line 9)?
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(2 marks)
1 (c) Explain one reason why personalising T-shirts might be an effective way to add
value.
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(4 marks)
1 (e) Explain possible reasons why Pierre carried out primary market research.
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(6 marks)
2 (a) Analyse the benefits to Pierre’s business of having the bank overdraft.
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(10 marks)
3 (a) Do you think Pierre’s business will be successful. Justify your view
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(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
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