SHS
BUSINESS STUDIES
HANDBOOK
Welcome to Business Studies!
You will enjoy learning about how the companies around you make decisions
and why some are so very successful, whilst others just can’t seem to get it
right. In the future, perhaps you will put this knowledge to good use in your
own company. Maybe there is an entrepreneur in you just waiting to leap
into the world of business!
You will be following the AQA syllabus, which is broken down into four units;
two at AS and two at A2. In the first two units you will sweep through all
the basic concepts involved in starting up and then running businesses. At
A2 you will review some of these concepts, analysing them in more depth
and using them to formulate your own strategic decisions about the best
course of action for a wide variety of companies.
What to expect from Business Studies…
Business studies will take you through a range of elements that contribute to the
successful operation of businesses. All the topics will be interrelated and you will
find you already know more than you thought you did. You will, however, learn a lot
of new vocabulary and business jargon and it is crucial that you start to use this
vocabulary regularly, both in and out of lessons. Once you have been taken
through each concept, theory or idea, you will be expected to be able to apply it
to a variety of different case studies, identifying similarities and differences
between the various scenarios visited.
You must always…
1. Arrive at lessons on time. Time is short and we must make the most of our
limited lesson time so we do not have to rush through important topics
towards the end of the year.
2. Prepare assigned work by the date set by the teacher. This may be used as
the basis for the next lesson and you will not be able to take advantage of
that lesson if you have not done the necessary preparation.
3. Complete assessed homework on time – very important if you are to get the
quality feedback that will enable your success. (If you leave too long
between the lesson and the homework, you will find it much more difficult
to complete.)
4. Keep your notes organised. You will revise mostly from notes taken during
lessons and assigned work. If this is not well organised you will be lost when
it comes to preparing for examinations. (Many students find it useful to
copy out notes after each lesson… this may seem like a waste of time, but it
will actually cement the knowledge into your brain, and is a good habit to
develop; it will give your ongoing efforts a focus.)
5. Ask questions immediately if you are unsure of what is being discussed in
lessons. Don’t wait, hoping for it to make sense later. Information is
organised so it builds on previous material so you need to address problem
areas as soon as possible.
6. Find out what has been done in lessons you have missed (though there won’t
be many!) It is your responsibility to write up any notes and, more
importantly, to make sure you understand what was learned during that
lesson. Ask your peers to explain it to you, read about it in the textbook or
on the intranet and, if you are still uncertain, ask the teacher. You must not
fall behind – we will move quickly.
7. Keep up with current Business affairs discussed in the media. These will
include news about specific companies or products and general discussions
of trends or performance across the economy as a whole.
“I want to put a ding in the universe.” – Steve Jobs
“Business, more than any other occupation, is a continual dealing with the future;
it is a continual calculation, an instinctual exercise in foresight.” – Henry R Luce
“A budget tells us what we can’t afford, but it doesn’t keep us from buying it.” –
William Feather
AS Business Studies – Students Syllabus
Unit 1 – Starting a Business
Enterprise
(Mr. Smith)
• enterprise and entrepreneurs
• the importance of risk and rewards such as profit
• the notion of opportunity cost
• motives for becoming an entrepreneur
• government support for enterprise and entrepreneurs
Generating and
Protecting Business
Ideas
(Mr. Smith)
• sources of business ideas
• the identification of a product or market niche
• franchises
• copyright, patents and trademarks
Transforming Resources
into Goods and Services
(Mr. Smith)
• inputs, outputs
• the transformation of resources into finished products
• adding value
Developing Business
Plans
(Mr. Smith)
• the purpose and contents of business plans
• sources of information and guidance
Conducting Start-up
Market Research
(Mr. Smith)
• methods of primary and secondary market research
• qualitative and quantitative research
• size and types of samples
• factors influencing the choice of sampling methods
Understanding Markets
(Mr. Smith)
• the nature and types of markets
• the importance of demand
• types of market segmentation
• market size, growth and share
Choosing the Right Legal
Structure for the
Business
(Mr. Smith)
• sole traders, partnerships, private limited companies and
public limited companies
• not-for-profit businesses
Raising Finance
• sources of finance available to start businesses
(Mr. Monks or Ms. Brass)
Locating the Business
(Mr. Smith)
• factors influencing start-up location decisions
Employing People
(Mr. Smith)
• types of employees used in small businesses
• using consultants and advisors
Financial Planning
Calculating Costs,
Revenues and Profits
(Mr. Monks or Ms. Brass)
Using Break-Even
Analysis to Make
Decisions
(Mr. Monks or Ms. Brass)
Using Cash Flow
Forecasting
(Mr. Monks or Ms. Brass)
Setting Budgets
(Mr. Monks or Ms. Brass)
Assessing Business Startups
(Mr. Monks or Ms. Brass)
• fixed, variable and total costs
• price, total revenue and profit
• contribution and contribution per unit
• calculation of break-even output
• construction of break-even charts
• analysing the effects of changing variables on break-even
charts
• the nature of cash flow
• how to forecast cash flow
• the structure of a cash flow forecast
• why businesses forecast cash flow
• income, expenditure and profit budgets
• the process of setting budgets
• problems in setting budgets
• objectives of business start-ups
• strengths and weaknesses of a business idea and/or plan
• why start-ups can be risky
• why start-up businesses may fail
Unit 2: Managing a Business
Finance
Using Budgets
• the benefits and drawbacks of using budgets
(Mr. Monks or Ms. Brass) • the calculation and interpretation of favourable and
adverse variances
• using variance analysis to inform decision making
Improving Cash Flow
• causes of cash flow problems
(Mr. Monks or Ms. Brass) • methods of improving cash flow
Measuring and
• the calculation and understanding of net profit margins
Increasing Profit
• the calculation and understanding of return on capital
(Mr. Monks or Ms. Brass) • methods of improving profits/profitability
• the distinction between cash and profit
People in Business
Improving
Organisational
Structures
(Mr. Monks or Ms. Brass)
Measuring the
Effectiveness of the
Workforce
(Mr. Monks or Ms. Brass)
Developing an Effective
Workforce: Recruitment,
Selection, Training
(Mr. Smith)
Developing and
Retaining an Effective
Workforce: Motivating
Employees
(Mr. Smith)
• key elements of organisational structure
• workforce roles
• how organisational structure affects business
performance
• methods of measuring workforce performance
• the recruitment process
• internal and external recruitment
• selecting the best employees
• how recruitment and selection can improve a workforce
• methods of training
• using financial methods to motivate employees
• improving job design
• empowering employees
• working in teams
• theories of motivation
Operations Management
Making Operational
• operational targets
Decisions
• calculating and managing capacity utilisation
(Mr. Monks or Ms. Brass) • operational issues dealing with non-standard orders and
matching production and demand
Developing Effective
• the meaning of quality
Operations: Quality
• the distinction between quality control and quality
(Mr. Monks or Ms. Brass) assurance
• systems of quality assurance
• quality standards
Developing Effective
• methods of meeting customer expectations
Operations:
• monitoring and improving customer service
Customer Service
• the benefits of high levels of customer service
(Mr. Monks or Ms. Brass)
Working with Suppliers
• choosing effective suppliers
(Mr. Monks or Ms. Brass) • the role that suppliers play in improving operational
performance
Using Technology in
• types of technology in operations management
Operations
• issues in introducing and updating technology
(Mr. Monks or Ms. Brass)
Marketing and the Competitive Environment
Effective Marketing
• the purpose of marketing
(Mr. Smith)
• niche and mass marketing
Using the Marketing
• influences on the development of new goods and services
Mix: Product
• unique selling points (or propositions)
(Mr. Smith)
• product portfolio analysis
• product life cycle
Using the Marketing
• elements of the promotional mix
Mix: Promotion
• influences on the choice of promotional mix
(Mr. Smith)
Using the Marketing
• pricing strategies
Mix: Pricing
• pricing tactics
(Mr. Smith)
• influences on pricing decisions
Using the Marketing
• choosing appropriate outlets/distributors
Mix: Place
• types of distribution channels
(Mr. Smith)
Designing an Effective
• influences on the marketing mix
Marketing Mix
• the importance of an integrated marketing mix
(Mr. Smith)
Marketing and
• the possible impacts of market conditions and degree of
Competitiveness
competition
(Mr. Smith)
• determinants of competitiveness
• methods of improving competitiveness
“There is only one boss. The customer. And he can fire everybody in the company from the
chairman on down, simply by spending his money somewhere else.” - Sam Walton
Holiday Work
You need to start thinking like a Business person. Although you haven’t learned
any theory yet, you can start to become aware of the business environment that
is all around you. During the summer, you must complete the task below; this is to
be ready to present at the first lesson in September.
Collect a variety of newspaper clippings (8 - 10) that you think relate to Business
Studies. For each one, make some bullet points to summarise it. Why is each story
important or newsworthy? You will be presenting these to the class, using your
summaries as the basis of your presentation. (Some of the issues that would be
relevant would include firms merging or breaking apart, companies reporting
success or failure, business launching new products eg. Apple upgrading the
iPhone, etc.)