AQA AS BUSINESS STUDIES
ADVICE ON DELIVERY AND TWO-TEACHER SCHEME OF WORK
WHAT ARE THE KEY FEATURES OF THE NEW AS SPECIFICATION?
1.
The underlying story
In line with QCA requirements, the new AS specification is divided into two units. AQA’s AS Business Studies specification has a
story underpinning it. Unit 1 at AS level looks at the creation of new businesses and is written from the perspective of managing a
business prior to the commencement of trading. In other words, planning is at the heart of this unit. Any activities and actions that
relate to the actual operation of the business belong to other units within the AS and A2 specification.
The story unfolds further in Unit 2. In this unit the business is trading, but all the material relates to a small to medium-sized
business. (Large and multinational businesses are studied at A2 to allow a more rigorous treatment of more complex material.) It is
also important to understand that the Unit 2 materials should be taught actively. The underlying theme of the unit is to consider
how the various theories and concepts could be applied to improve the performance of a business. Thus, as an example, when
delivering the marketing mix it is recommended that you consider how decisions on pricing or promotion might help the business
to gain market share or improve profits.
2.
The content of the units

Unit 1: Planning and Financing a Business. This is intended as an introductory unit (in some ways replacing the part of
the old Unit 3 that many centres used to deliver first). It provides a broad introduction and has been written to
emphasise the range of subjects that make up Business Studies. The core of the unit is business plans, from which all the
other subject matter evolves. It is split into two elements: ‘Starting a Business’ and ‘Financial Planning’.

Unit 2: Managing a Business. This builds on the first unit and covers the internal functions of business: marketing,
people, operations management and finance. It considers how a small to medium-sized business might manage these
functions to improve the overall performance of the business by taking tactical decisions.
HOW IS AS BUSINESS STUDIES ASSESSED?
There are two, compulsory units of assessment.

Unit 1. This is a 75-minute examination worth 40% of the AS marks – or 20% of the A level. The examination will be based
on a mini case study setting out the story of an entrepreneur setting up a business. Students will be assessed through shortanswer and extended questions.

Unit Two. This examination lasts for 90 minutes and carries 60% of the marks for AS, or 30% of the total A level marks. The
examination will comprise two data response questions which will cover the internal functions of the business. There is a
total of 80 marks available on this paper and there will be questions on each of the four internal functions worth
approximately (but not necessarily exactly) 20 marks.
If you do not have a copy of the new AS specification or the sample assessment materials, they are available online by clicking on
the link below and following the instructions:
http://www.aqa.org.uk/qual/gce/business_studies_new.php
General advice
The AS specification is deliberately lighter in content than in the past. This is in response to the feedback from teachers and
students that they were having to move from one topic to the next at breakneck speed without ever having the time to discuss
issues in much depth or relate them to real business. The aim of this specification is to provide plenty of opportunities for
discussions, visits, speakers and use of real-world material. This should make the delivery and learning more enjoyable and more
meaningful.
For those teachers who have taught the old AQA specification there is much that is familiar:

Most of the topics that remain are the same.

The examining philosophy and approach are the same.

The marking approach is essentially the same.
However, the development of the new specification has been an opportunity to freshen up the subject. For example, there are new
topic areas that should enthuse students and teachers, such as entrepreneurship, competitiveness and branding. There is also a
greater focus on the service sector, exemplified perhaps by the inclusion of customer service as a topic.
Using the AQA specification
When using the specification you will see that there are two columns. The left-hand side lists the different elements of each section.
The right-hand side provides some more detail on the level of depth required and the issues involved in this section. The
amplification notes have been provided to help you as teachers. In some cases if the material is very familiar there may be few
amplification notes. In other areas, such as new topics on the specification or topics where changes have been made, the
amplification notes are more detailed. In some cases specific lists are made, such as the types of sampling needed. These instances
are the only examples where we would ask directly (e.g. for a definition question); however, accurate reference to other forms of
sample would be credited.
Marking approach
The marking approach for this specification is exactly the same as it was for the old one. This means that four skills (knowledge
and understanding, application, analysis and evaluation) are assessed over the two units. The marks available for each skill depend
on the question (e.g. a state question assesses only understanding whereas a discuss question assesses all four skills).
For each of the skills there will be different levels of response (e.g. limited analysis or good analysis) which will determine the mark
awarded.
The only real change in marking from previous specifications is that the quality of language mark is awarded as part of the
evaluation marks on specific questions (these are always stated on the front of the examination paper and mean that the candidate
should answer these in continuous prose).
Overall there is no real change in the marking approach and the aim as always is to reward what students do know rather than
penalise them for what they don’t know!
OVERVIEW OF UNIT 1
This module focuses on starting up a business and the financial planning involved in this. It covers questions such as: is there a
market for my product? How can I protect my idea? How can I raise the necessary finance? How many customers will I need to
break even?
It is a forward-looking module, meaning that we are imagining that you are an entrepreneur thinking about the issues that have to
be understood and the decisions that have to be made prior to starting up. In the case of budgeting, for example, we consider why
budgeting might be useful and how an entrepreneur might budget; we do not focus on interpreting the findings of a budget
because this appears in Unit 2. Unit 1 concentrates on setting up a business; Unit 2 concentrates on running an established business.
Unit 1 should be a really interesting unit to deliver. There will be plenty of opportunities for students to produce business ideas, to
put forward a business plan and to assess the feasibility of a product idea. You can easily imagine a Dragon’s Den-type
competition, a link with Young Enterprise or local entrepreneurs talking about their experiences. You will want to keep your eyes
open for stories of local business people, how they came up with their ideas and how they went about setting up. Organisations
such as Business Link will also provide an invaluable source of resources.
OVERVIEW OF UNIT 2
This module continues the story that underpins the AQA A level. The planning process is complete and the business has started
trading. Unit 2 builds on the work completed in Unit 1. It looks at the internal functions of a business and considers how making
tactical decisions in relation to these functions can improve the performance of the business. It requires teachers not just to deliver
topics such as the marketing mix but to invite and encourage students to think about how the topics they are covering can be used
to enhance a firm’s performance. This ‘active’ approach must be offered in the context of a small or medium-sized business trading
in a national market.
Although the four functions are presented separately, it is important to consider the links that exist between functions such as
marketing and finance, people and operations. For example, when delivering customer service (part of the operations management
specification) it is worthwhile considering that good quality customer service depends on training, has financial implications and
can also be a central part of the business’s marketing mix. Do look at the material in this unit in relation to a range of businesses.
Students should be familiar with the theories, models and concepts in relation to businesses operating in primary, secondary and
tertiary sectors.
The unit has a numerical theme running through it. Each of the functions contains a numerical element (productivity and capacity
utilisation, for example) with which performance can be measured and also offers vital information in taking relevant decisions to
improve performance.
THE SCHEME OF WORK
This scheme of work is not in any way prescriptive. It is intended as guidance as to delivery, examples of relevant resources,
sequencing, time allocations and possible ways to combine the subject matter.
TEACHER ONE
Teaches mainly the marketing and people aspects of the AS specification.
TEACHER TWO
Delivers the more numerically based materials, encompassing principally
finance and operations management.
UNIT 1: PLANNING AND FINANCING A BUSINESS
This unit is about planning. It considers the development of a business idea into a business which is on the verge of trading. The focus should be on small
businesses operating in a local market.
TOPIC
HOURS
TOPIC
HOURS
Enterprise and entrepreneurs.
Developing business plans.
This section focuses on why people set up in business, what the
In this section students should consider the purpose and benefits of
risks of being an entrepreneur are and what the possible rewards
business planning and what a business plan would usually involve.
are. It considers the motives of entrepreneurs and the possible
The different elements of a business plan, such as financial
characteristics – are there special qualities that make you a
planning, market research and an understanding of the market, are
successful entrepreneur or not? It introduces the fundamentally
covered in more detail in other areas of the unit. You might,
important concept of opportunity cost – is it worth giving up
therefore, introduce the basic outline of a plan and then gradually
your full-time job? What sacrifices will you have to make? It also
fill in the detail as you work through the other topics. A good
considers the types of government support that are available to
starting point for business planning is the various start-up packs
would-be entrepreneurs. You do not need detailed knowledge of
produced by the major banks or the Business Link website.
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the specific schemes on offer but do need to be aware of the
Students should consider the different sources of information that
general ways in which a government might help entrepreneurs
might be used to produce a business plan and be aware of the
and why.
advantages, disadvantages and limitations of each. This section
This should be an engaging first topic, should it be delivered first.
provides an interesting starting point – or even centrepiece – of the
It will be important to consider case studies of entrepreneurs.
delivery of Unit 1. Do encourage students to think – even at this
(Look on the Shell Livewire site for suitable examples.)
early stage – about what will make a good business plan. At some
Explaining opportunity cost in terms of the decision to become an
point they will also have to think about the value of business
entrepreneur will be a useful illustration of this concept. Inviting
planning and its likely impact on business success.
in a local entrepreneur would seem the best way to cover the
motives for entrepreneurship as well as to provide an active start
to the delivery of the specification.
www.shelllivewire.org/?PHPSESSID=ea696dabefe18567cf52b1684538cfcc
Transforming resources.
In some ways this could be the starting point for the course. It
considers the basic elements of the business transformation
process: taking inputs and transforming them in some way into
outputs and hopefully in the process adding value. This provides a
valuable model that can be used throughout the first year – how do
operations decisions, HRM decisions, marketing decisions and
finance decisions affect this process and help the business to add
value? What are the various ways in which organisations
“transform” resources? You could compare a school, hairdresser,
retailer outlet, garage and so on. What resources are used and what
are the various outputs produced? This section provides a very
useful analytical framework on which you can hang other topics.
In terms of the amount of learning for this section, it is meant to
provide a brief introduction to the notion of transformation,
although as we have said it can provide a theme for much else that
is covered. To consider the notion of added value, have a look at
the Tyrrells crisps website for the way in which this company adds
value to the humble potato:
http://www.tyrrellspotatochips.co.uk/about_us2.php
Generating and protecting ideas.
Where do entrepreneurs get their ideas from? Is it all sudden
inspiration or do they adapt something they have seen elsewhere?
Is it always linked to their own interests and skills? This section
considers where ideas come from.
Obviously if you are going to set up in business and you have a
good idea you would like to keep it for yourself, so this section also
examines the ways in which entrepreneurs can protect their
business ideas. It considers the different ways of protection (e.g.
depending on whether it is a new product or a logo that they want
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Raising finance.
In this section students need to be aware of the different sources
of finance open to entrepreneurs. A list of possible sources is
provided in the specification and only these will be asked about
directly, although in a more general answer other forms would,
of course, get credit. Remember, as ever, that the focus is on
starting up rather than on the ways in which more established
businesses might raise finance.
There is no new content here. Do encourage your students to
consider the value of the various sources of finance in different
contexts – application really matters on this topic.
Teachnet offers a lot of information and a quiz:
www.teachnet-uk.org.uk/2007%20Projects/BizGCSE%20Finance/sources/index.htm
Calculating costs, profits and revenues.
More familiar territory. Students should understand the relevant
relationships (and formulae) and be able to carry through
calculations. The Small Business Advice Service considers
whether an enterprise will make a profit at:
www.smallbusinessadvice.org.uk/busplan/suplan.asp
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to protect) and you need a general understanding of how these
work. The Intellectual Property Office is a good starting point for
this.
Much material here has been carried over from the previous
specification. It is important to limit the generation of ideas to those
that could be achieved by an entrepreneur planning to start a small
business. The new element in this topic is franchising. Students
should understand the advantages and disadvantages of franchises
and how they operate. A useful website for this is The British
Franchise Association (www.thebfa.org.uk).
Understanding markets.
Entrepreneurs will naturally be interested in what determines the
demand for their products and the nature of the market in which
they operate. (For example, are they going to be selling online, face
to face, locally or nationally? Where are their customers based? Will
their customers physically visit them?) Entrepreneurs will want to
establish the size of the market, the market share of different
businesses and the likely growth of the market in future. This is an
obvious area for calculation questions. They will also be interested
in the different types of market segment and the case for and
against segmenting a market.
A word of warning: you do not need to deliver economic theory
here, for example, in the form of price determination. Students just
need to know what a market is and the forms of markets that exist.
You can look at the Biz/ed website for a useful presentation on
types of markets:
www.bized.co.uk/educators/1619/business/external/presentation/typesmarket.ppt#12
Conducting start-up market research.
Some entrepreneurs may be fortunate enough to happen upon an
idea and watch it take off without ever conducting any research.
However, many others will need to undertake some market
research to understand issues such as their customers, their
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Using break-even analysis to make decisions.
Two changes here. Firstly, this section includes simple and more
complex (i.e. dynamic) break-even. The latter topic was formerly
part of the A2 specification. Also note the active element called
for in the teaching. Students should be aware of how break-even
analysis can be used to take decisions on prices and the
consequences of changes in costs. Biz/ed has a valuable
simulation on changing variables:
www.bized.co.uk/virtual/vla/break_even_analysis/index.htm
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Using cash flow forecasting.
This section considers what cash flow is and why and how
businesses forecast it. Students should also be familiar with the
structure of a cash flow forecast, including simple calculations.
The focus on this topic should be on the planning element of cash
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competitors and market trends. This section focuses on the
difference between primary and secondary research, quantitative
and qualitative research and the various issues involved in
sampling. In the specification there is a list of specific forms of
sampling and a direct definition-type question would only ever be
on one of these. However, reference to other forms would be
credited in a more general question.
Remember when teaching this section that the focus is on start-up
research – what information is needed by an entrepreneur and
what limitations there are (for example, there may be limited time,
experience and money).
The Market Research Society offers useful advice to newcomers:
www.mrs.org.uk/mrindustry/downloads/newcomers.pdf
Choosing the right legal structure for the business.
When establishing a business entrepreneurs will want to consider
the appropriate legal form. This section highlights choices such as
whether to be a sole trader, partnership or private limited
company. Students should be aware of the advantages and
disadvantages of each of these options. Students should be aware
of the difference between a private limited and a public limited
company as a means of comparison, although obviously an
entrepreneur is not able to set up as a plc at the start. Students
should also be aware of not-for-profit organisations which can help
to highlight the many different objectives of business.
Look at the following website for information on not-for-profit
businesses:
www.socialenterprise.org.uk/Default.aspx
Locating the business.
This section focuses on the factors that might influence a start-up
location decision – should you choose a high street location or be
further outside of the centre? Can you operate from your own
home or not? Again, it is about making the right choice as an
flow – monitoring and improving is part of Unit 2. Business Link
considers why firms forecast their cash flow:
www.businesslink.gov.uk/bdotg/action/detail?type=RESOURCES
&itemId=1076801242
Students must be able to produce, complete and amend a cash
flow. This is an important part of financial planning and should
highlight whether any cash flow problems are likely to occur.
Remember that in Unit 2 we will focus on improving cash flow; in
this section we are more concerned with why and how businesses
forecast their cash flow. However, many teachers will want to
“teach through” on this section and cover the Unit 2 materials on
improving cash flow.
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Setting budgets.
A similar philosophy to the above topic is required here. The
focus is on setting and not monitoring budgets. Calculations such
as completing incomplete budgets will be expected. Topics such
as variance analysis are included in Unit 2. Business Link’s advice
on creating budgets can be found at:
www.businesslink.gov.uk/bdotg/action/detail?type=RESOURCES
&itemId=1076801242
In Unit 1 the focus is on developing budgets; in Unit 2 the
emphasis is on interpreting variances and taking appropriate
actions. However, it is likely that many teachers will want to
“teach through” this section and consider the process of
budgeting and variance analysis at the same time.
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entrepreneur by weighing up the different factors involved.
Employing people in the business.
It may well be that you need extra help when you set up your
business. In this section students need to consider the case for and
against employing other people. For example, an employee may
provide specialist or complementary skills but at the same time will
involve extra costs and legal obligations. No detailed knowledge of
employment law is needed, but an awareness of the general types
of responsibilities (such as minimum wage and health and safety)
would be helpful.
Students should be able to discuss the case for and against different
types of employees, such as part time, temporary and consultants.
This is a new topic, but a straightforward one. Practical advice on
employing different types of worker can be found at the Business
Link, but be careful not to get into too much detail:
www.businesslink.gov.uk/bdotg/action/layer?r.l1=1073858787&top
icId=1079568262&r.s=tl
TOTAL UNIT 1 HOURS
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Assessing business start-ups.
This is a new topic and an important summary of all the
foregoing material. The objectives of business start-ups provide a
useful yardstick against which to assess the success of a business
plan. New material here includes a treatment of risk and
consideration of why businesses may fail. Find out nine reasons
why businesses fail at:
http://www.growingyourownbusiness.co.uk/businessadvice/article-view.php?AdviceId=6
In many ways this section provides an overview of much of Unit
1. To what extent is the plan the business has produced likely to
work or not? If the business has failed, to what extent was this
due to bad planning? To what extent can planning help a
business? This is an area rich in evaluative opportunities and
should help pull together the whole unit.
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30
TOTAL UNIT 1 HOURS
30
UNIT 2: MANAGING A BUSINESS
This unit considers how the internal functions of a business (people, marketing, operations and finance) can be used to improve the performance of a small to
medium-sized business. It covers tactical decisions that can be taken by managers. Strategic decisions and change are covered at A2. All the internal functions
have a numerical element which can be used to measure performance – and also to measure improvement.
Developing an effective workforce: recruitment, training and
Using budgets.
selection.
This builds on the work completed in Unit 1 and concentrates on
This first topic considers the ways in which managers can adapt
analysing and monitoring data once trading has commenced.
and enhance their workforces to improve performance. Students
Keep the numbers simple and encourage students to look at
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should be aware of the recruitment process as well as the
trends in the figures. It is important that they understand the
advantages and disadvantages of various types of recruitment and
links and relationships between the elements of variance analysis.
be able to assess their appropriateness in diverse situations. They
For example, if sales revenue shows a positive variance, it is not
should also understand why businesses use different methods of
surprising (or necessarily a problem) if expenditure budgets
selection and the range available to them. They should understand
different types of training and be able to assess their worth in
different situations. ACAS has valuable information on training:
http://www.hrmguide.co.uk/hrm/chap8/ch8-links.html
The key overall issue is that students should understand how
managers can use these techniques to improve the quality and
performance of their workforces. It is important to cover how
different elements of this topic can be used to enhance different
workforces in different situations.
Developing an effective workforce: motivating employees.
This is a large and important topic, but do not spend too long on it
– this is easy to do. Ensure that students understand that
motivation comes from within or as the result of external stimuli.
There are no specified motivational theorists to be used, but
students should be aware of theories relating to financial and nonfinancial approaches to enable them to relate these to practical
methods that businesses may use. This gives an opportunity to
look at some more recent writers on motivation, for example
Vroom or Adams. An excellent portal on motivation can be found
at Businessballs:
http://www.businessballs.com/motivation.htm
There are some important concepts in the latter stages of this topic.
It is vital that students understand the nature of concepts such as
empowerment and teamworking and also how they can be used
within businesses to improve the performance of employees. This
section builds on a clear understanding of a range of relevant
theories.
Effective marketing.
Although this is the first topic in marketing, the AS specification is
based around the marketing mix – it is this which managers use to
effect tactical decisions relating to marketing. However, changes in
the marketing mix have implications for other functions.
It is intended as an introduction to allow students to appreciate the
reveal adverse variances. This topic also covers the advantages
and disadvantages of the use of budgets in a business, including
the delegation of budgets. This might take teaching beyond
purely “financial” topics to consider issues such as motivation.
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Improving cash flow.
As with ‘Using budgets’ this builds on the work completed in
Unit 1. Students should be familiar with the causes of cash flow
problems as experienced by small and medium-sized businesses.
They should also understand methods of improving cash flow –
overdrafts, short-term loans, factoring and sale and leaseback as a
minimum.
Application is very important here: make sure that students select
appropriate causes of problems and/or methods of improvement
when constructing answers to examination-style questions. This
can be achieved only by using a variety of examples to deliver the
relevant theory and setting appropriate questions.
Business Link provides valuable and practical advice on issues
relating to cash flow:
http://www.businesslink.gov.uk/bdotg/action/detail?type=RESO
URCES&itemId=1074407631
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Improving organisational structures.
This topic encompasses the basics of organisational structures
and covers only a part of the material covered in the previous AS
specification. Workforce roles, spans of control and levels of
hierarchy should be delivered first. Students should be familiar
with the roles of directors, managers, supervisors and team
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scope of marketing and the variety of people within an
organisation who can be involved in some aspect of marketing. It
also considers the issues that relate to marketing in the context of
niche and mass markets and the differences that exist between
these two circumstances. One particular aspect to be considered are
the implications for a small to medium-sized business of marketing
in a mass market. A general article on the purpose of marketing
(and how it is changing) can be found at:
http://www.mycustomer.com/cgi-bin/item.cgi?id=133471
leaders and also appreciate the significance of a business moving
from using supervisors to using team leaders. Do ensure that
students understand the relationship between spans of control
and levels of hierarchy and that they have an understanding of
the case for and against the use of “flat” and “tall” organisational
structures.
Later concentrate on how altering the structure of a business
might improve its performance. An interesting presentation on
organisational structures can be found at:
http://www.bized.co.uk/educators/1619/business/strategy/presentation/orgstructures.ppt#2
Using the marketing mix: product.
This covers familiar territory such as USPs, the product life cycle
and product portfolio analysis. Students should have a clear
understanding of these topics and how managers use them to
inform tactical decision-making. They should understand their
strengths and limitations and their links to other aspects of the
specification (e.g. cash flow and the product life cycle).
The richness of this topic comes from consideration of these issues
in relation to different scenarios. Students should understand how
the techniques can be utilised to improve the effectiveness of a
business. Directors’ Briefing offers detailed advice on new product
development:
www.iod.com/intershoproot/eCS/Store/en/pdfs/ST13NEW.pdf
Using the marketing mix: promotion.
This topic is based on the promotional mix, which represents a
substantial change in approach from the previous specification.
Students should understand the elements that comprise the
promotional mix and how they can be used together to promote a
business or a product. They should appreciate how they can be
adapted to reflect different businesses that are operating in
different markets. It is also important to appreciate what makes a
Measuring the effectiveness of the workforce.
The essential measures are labour turnover and labour
productivity, though this is only a minimum and other
approaches could be covered, although questions will not be
asked on them directly. Students should be able to conduct
calculations as well as interpret data and appreciate the
limitations of this data in assessing workforce performance. It can
provide guidance on the necessary actions that should be taken to
improve the performance of the workforce.
The Chartered Institute of Personnel and Development (CIPD)
has much relevant material. See:
http://www.cipd.co.uk/subjects/hrpract/turnover/empturnretent.
htm?IsSrchRes=1
Making operational decisions.
This is the numerical element of operations management and
provides the basis for judgements and also for taking decisions
on what might be the most effective way to improve operational
performance. Calculations and interpretations of capacity
utilisation and unit costs are essential here. Equally it is important
to look at these numerical concepts in different situations and to
assess their relevance and value.
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business use PR rather than advertising or merchandising as the
major element of its promotional mix and students should
understand the influence of factors such as finance, competitors’
actions and the nature of the product.
The Chartered Institute of Marketing (CIM) offers a ten-minute
guide to the promotional mix at:
www.cim.co.uk/MediaStore/knowhub/FactFiles/10_minute_guides
/Promotional_mix.pdf
Using the marketing mix: pricing.
This topic includes pricing strategies and pricing tactics as well as
factors that might influence such decisions. An important aspect of
the delivery of this topic is to consider the factors that influence a
firm when taking pricing decisions. Relevant factors might include
the business’s financial position, the nature of the product, the
structure of the market and the likely reactions of competitors to
price changes.
Price elasticity of demand is a central element in this topic and
students should understand how price elastic and price inelastic
demand affect total revenue when prices are changed. They should
understand the numerical side of this concept and its implications
for total revenue when price is changed. They will not be required
to simply calculate the coefficient of price elasticity.
Using the marketing mix: place.
The different types of distribution channels are at the centre of this
topic. Students should also be aware of the factors that influence
the choice of distribution outlets for a range of businesses. It is
important to consider place as part of an integrated marketing mix
and this will help to explain what is meant by an “appropriate”
outlet or distributor.
A further element here is to examine the actions that businesses
can take to match production with the level of demand. Teaching
here should include HR responses such as the use of part-time
and temporary employees as well as “operational” responses
including rationalisation and sub-contracting. There should be
discussion of the strengths and weaknesses of these approaches
in different situations.
Varied examples can be found at Revision Guru:
http://www.revisionguru.co.uk/business/capacity.htm
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Developing effective operations: quality.
This is a familiar topic from the previous specification, with
similar content covering quality control and quality assurance.
Students should understand both approaches, the implications of
their introduction for other internal functions as well as the
advantages and disadvantages of each. In addition they should
have an understanding of quality standards and the reasons why
businesses acquire these. They do not need to have detailed
knowledge of the operation of standards – just an overview and a
clear appreciation of the implications and benefits they can offer.
Another good portal from Businessballs, this time on quality:
http://www.businessballs.com/qualitymanagement.htm
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Developing effective operations: customer service.
This is a new topic and one which reflects the importance of
services to the UK economy. As with quality this has implications
for other functions such as marketing and people. How
businesses meet customer expectations is the obvious starting
point and this should be wide-ranging to cover approaches such
as the use of market research (to discover customer expectations)
and training. Understanding the ways in which businesses can
improve customer service is a vital part of this topic and should
be delivered in a variety of contexts, allowing a contrast in
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Designing an effective marketing mix.
This is a natural conclusion to considering how the elements of the
marketing mix can be used to improve performance of a business.
Consider the marketing mixes of very different businesses such as
easyJet and Rolls-Royce. A key element is to consider what
influences a business when making decisions about its marketing
mix. Influences could include finance available, the results of
market research, the actions of competitors and the nature of the
product. It is essential for students to understand the nature and
importance of an integrated marketing mix.
The Times 100 offers useful material on Vodafone’s marketing mix:
http://www.thetimes100.co.uk/case-study--sponsorship-marketingmix--41-131-3.php
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Marketing and competitiveness.
This is a topic that offers great potential for integration and is a
natural conclusion for Unit 2. Market conditions and the degree of
competition should be delivered in general terms and not draw on
economic theory to distinguish between types of markets.
Contrasting a market with a dominant supplier with one where a
number of smaller suppliers operate is an example of a fruitful
approach.
Do call on material from all of the internal functions when
considering what makes a business competitive and how a
business can improve its competitiveness. It is worth spending
some time on the precise meaning of competitiveness and how this
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approaches between, say, an airline and a retailer. This approach
should lead naturally to consideration of the benefits to diverse
businesses of high-quality customer service.
The Times 100 has a case study based on Portakabin:
http://www.thetimes100.co.uk/case-study--the-importanceexcellent-customer-service--35-235-2.php
Working with suppliers.
Businesses choose suppliers for a range of factors. For some small
businesses trade credit terms might be vital due to problems with
cash flow. Other businesses (with very different marketing mixes)
may place greater emphasis on quality. An interesting question to
consider is what makes an effective supplier for a range of
different businesses. Students should understand how having
effective suppliers can improve the competitiveness and
performance of a business.
Using technology in operations.
Consider a range of ways in which technology can be used to
enhance business operations – not just on the production line.
This topic calls for the examination of several different scenarios –
manufacturing and service businesses. Communications and
design are other aspects that may be considered.
Measuring and increasing profit.
Two simple measures of profitability have been included in this
topic. Both are intended to allow students to make some
assessment of how profitable a business is by comparison with
some other figure. Students should be able to carry out relevant
calculations and to interpret their answers. The calculation of
return of capital does not require any knowledge of the balance
sheet or capital employed. Instead students should be able to
compare returns (in the form of profits) with the amount invested
into a project.
As with marketing and competitiveness this topic has been put at
the end because it has the potential to integrate the whole unit.
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varies between different firms operating in a range of markets. This
should naturally lead students to consider relevant ways of
enhancing competitiveness for any given business.
The Times 100 has a case study on maintaining competitiveness:
http://www.businesslink.gov.uk/bdotg/action/detail?type=CASE%2
0STUDIES&itemId=1075067257
TOTAL UNIT 2 HOURS
45
Good answers to questions on improving profitability are likely
to draw on more than financial issues – it is easy to see how this
could encompass issues such as quality control, pricing, training,
customer service and capacity utilisation. Breadth of delivery is
important here.
Interesting advice can be found at the Business Eye website:
www.businesseye.org.uk/4756.html
TOTAL UNIT 2 HOURS
45