Level 2 Business Studies externals
2.1 ~ internal operations (AS 90843)
Coverage as indicated in Curriculum Guide, and fleshed out
Organisational structure
Production process
Growth strategies
Management and
leadership
Organisational culture
Financial information
Internal controls
Corporate social
responsibility and
philanthropy
Maori concepts
 Types and features of organisational structure – the various
ways a large business can be structured
 How organisational structure may affect decision-making,
communication, efficiency and competitiveness of the
business
 Organisational charts
 Decentralisation of decision-making
 Productivity and efficiency, lean production, economies of
scale, capacity issues
 Increasing productivity efficiency
 Impact of globalisation
 Growth strategies and their benefits
 Internal goals and objectives, e.g. product diversification,
innovation
 External, e.g. acquisition/mergers; vertical and horizontal
integration
 How a large business should be organised, co-ordinated
and controlled
 Management vs leadership; characteristics of successful
managers and leaders
 Leadership styles – advantages and disadvantages
 Importance of having a strong organisational culture if the
management and leadership of a large business is to
succeed
 Types of organisational culture – power, task, role, person
 Changing business culture
 For controlling, reporting and decision-making
 Purpose of income statement, statement of cash flows,
balance sheet
 Breakeven analysis, costing methods, budgets, ratio
analysis, variance analysis, annual accounts
 Asset management
 Accuracy of data
 Adherence to management policy
 Why businesses are expected to exercise social
responsibility to their community and to the environment
 Triple bottom line
 Tikanga - custom, obligations
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(comprehensive
explanations in Curriculum
Guide
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Putake – origin or reason for being
Turanga - The positioning/anchor of the business
Kaitiakitanga – Guardianship of natural resources
Rangatiratanga - Exercise of leadership, authority,
guardianship and ownership rights
Exam Coverage
Organisational structure
Production process
Growth strategies
Management and leadership
2011
 … has a tall organisational structure. Explain the
characteristics of this type of structure
 Fully explain how a tall organisational structure can
create problems for a business in relation to chain of
command, span of control
 Discuss the impact of … decentralising their decisionmaking – explain one advantage; fully explain how …
might decentralise the decision-making in this business;
justify the decision to decentralise the decision-making as
an appropriate course of action
2011
 Explain the term productivity
 Fully explain why international free trade and
globalisation have increased the importance of improved
productivity for businesses in relation to competitiveness
and efficiency
 Discuss the impact on … on operating above normal
capacity for a long period of time; explain one benefit of
operating above normal capacity; fully explain the
disadvantages of operating above normal capacity, and
the likely consequences of these for customer service
2012
 Why would …. choose product diversification as a growth
strategy?
 Explain link between product diversification and market
share in relation to existing product range, sales and
profit growth
 Fully explain why it is important for product
diversification to match the company’s vision in relation
to company reputation, brand loyalty
 Discuss which product diversification option (two given)
would be better for overall growth – state option chosen
and explain its suitability; fully explain one advantage and
disadvantage of the option; justify why the option would
be more appropriate
2012
 Describe leadership style that best suits …(resource
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Organisational culture
Financial information
Internal controls
Social responsibility
Maori concept
material)
Explain the skills & attributes and personal values of an
effective leader
Fully explain benefits of a CEO knowing every employee
in terms of staff loyalty, motivation and job satisfaction
Discuss impact of good leadership in context of business
studied … example of good leadership, effect of good
leadership on customers, justify why good leadership
important in long term
2011
 Explain the term budget
 Fully explain how budgeting can help … with planning in
relation to budgeted figures, resourcing.
 Discuss the effects of variances on …; explain one
advantage to … of using variance analysis; fully explain
two ways in which the business could correct the large
negative budget variance in the bakery department’s
budget within the financial year; justify the better way to
correct the variance
2011
Explain another way in which … could demonstrate CSR in the
community
Fully explain the similarities between a business exercising
CSR and a philanthropist, in relation to citizenship and
community development
Fully explain and justify why a large business [you have
studied] might choose to exercise CSR; include the effects on
customers of the named business, and one short and one
long-term consequence for the named business.
2012 – kaitiakitanga (definition given)
 Explain one way in which … would practise kaitiakitanga
in their daily operations
 Fully explain how kaitiakitanga influences … decisions in
relation to natural resources, processing operations
 Fully explain why there may be an increase in the number
of businesses practising kaitiakitanga in relation to
company values and business success
 Discuss the impact of practising kaitiakitanga for … by
explaining one immediate effect of kaitiakitanga for …;
fully explaining why consumers would be more likely to
purchase products produced by … if the company
practises kaitiakitanga; justifying with reasons and the
long-term consequences for … the decision to practice
kaitiakitanga
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2.2 ~ external factors (AS 90844)
Coverage as indicated in Curriculum Guide, and fleshed out
Supply chain
Trade unions and employer
associations
Economic sustainability
Political influences
Social influences
Technological influences
Enterprise culture
Ethical expectations and
issues
Maori concepts
(comprehensive
explanations in Curriculum
Guide
 Components and the effects of a change to one part of the
supply chain on the other parts
 Supply chain problems
 Impact of supply chain on revenue, profit, customers
 Functions of unions – collective bargaining, protection of
members’ interests, pressure group
 Negotiation and industrial action
 Role of employer organisations
 Constructive relationships between unions and employer
associations
 How economic sustainability is measured
 How sustainability affects competitiveness
 Sustainable business practices
 Impact of globalisation; multinational corporations
 Government deregulation; free trade
 Specific political issues relevant to business such as: 90
day trial period, Kiwisaver, cashing in a week’s holiday,
changing tax rates, increasing minimum wage
 Change in demographics e.g. ageing population
 Business responses to social trends and consumer attitudes
 Development of new technologies and impact on
businesses – manufacturing, tertiary industries
 Benefits and costs of new technologies; impacts on
personnel, productivity, customers, profit
 Innovation and risk-taking
 Rewards of successful enterprise
 Advantages; costs of high ethical standards, e.g. reduced
profitability
 Promoting high ethical standards, e.g. ethical selling
techniques, high safety standards, high product standards,
social responsibility, environmental concern, animal rights
 Business code of ethics
 Tikanga - custom, obligations
 Putake – origin or reason for being
 Turanga - The positioning/anchor of the business
 Kaitiakitanga – Guardianship of natural resources
 Rangatiratanga - Exercise of leadership, authority,
guardianship and ownership rights
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Exam Coverage
Supply chain
Trade unions and employer
associations
2011
 Explain the term supply chain
 Fully explain how value may be added at different stages
of the supply chain, in relation to production processes,
distribution channels
 Discuss how the loss of their … could impact on … supply
chain; explain one effect on … supply chain; fully explain
the impact on … sales revenue; fully explain one flow-on
effect for … customers
2012
 Explain why an employee might choose to join a trade
union
 Fully explain concerns that the Union of Meat Processors
may have regarding the changes at …, in relation to
redundancies and restructuring and changes to working
conditions
 Fully explain the methods that a trade union has to
address workers’ issues and concerns, in relation to
collective bargaining, legal representation and strikes
 Discuss how the Union and … could work together to
ensure benefits for both the employer and its employees;
explain the actions that the Union could take to affect
change that benefits its members; fully explain how …
could use the Union to best communicate the changes in
the workplace; justify with reasons the maintenance of a
good working relationship between the workers and the
employer, in terms of the benefits for each party
2012
 Explain the business term employer association
 Fully explain the role of an employer association in
relation to lobbying, networking opportunities, business
information and advice
 Fully explain why Meat Manufacturers NZ would
encourage its members to improve health and safety
standards, in relation to productivity and industry
reputation
 Discuss why a large business [you have studied] should
belong to an employer association; explain how
membership could assist with daily operations of the
named business; fully explain how membership could
lead to survival and future growth; justify with reasons
continued membership of the employer association with
reference to the reputation of the named business within
its industry
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Economic sustainability
Political influences
Social influences
Technological influences
Enterprise culture
2011
 Explain the term economic sustainability
 Fully explain how … is economically sustainable in relation
to production, distribution
 Fully explain and justify why … should operate in an
economically sustainable manner; include the effect of
operating in an economically sustainable manner on the
relationship between … and its suppliers; the effect on
consumers of … operating in an economically sustainable
manner; consequences for the recruitment, retention and
motivation of … staff
2011
Explain one possible benefit that … could gain from current
trends in consumer attitudes towards health
Fully explain the difference between a social trend and a
belief, in relation to attitudes and culture
Fully explain and justify why it is important for a large
business [you have studied] to consider social trends and
consumer attitudes when making decisions; include one way
the business has increased sales by responding to changing
social trends and consumer attitudes; one impact on the
business other than increasing sales, the consequences of not
responding to social trends and consumer attitudes when
making business decisions
2012
 Explain the role technology plays in a business
 Fully explain two benefits of the new automated meat
processing technology for …, in relation to meat
processing time, worker productivity
 Fully explain two costs to … associated with creating and
using this new technology, in relation to research and
development costs, employee-related costs
 Discuss the long-term effects of this new technology on
the meat processing industry in NZ; explain one way in
which the new technology could help NZ exports; fully
explain how the new technology could set the standard
for NZ meat quality in the industry; justify with reasons
how the adoption of the new technology could contribute
to the growth of the NZ meat processing industry
2011
 Explain the term enterprise culture
 Fully explain the importance of having an enterprise
culture in NZ, in relation to risk-taking, innovation
 Fully explain and justify the impact on … of having a
strong enterprise culture; include how this culture could
affect decision-making in the business; the benefits of …
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of a strong enterprise culture
Ethical expectations/issues
2.3 ~ critical problems (AS 90845)
Coverage as indicated in Curriculum Guide, and fleshed out
Business acquisition
Human resource issues
Investment decisions
Failure of internal controls
Global trends
Technology issues
Ethical issues
 Why merge with another firm – fast method of achieving
business growth, economies of scale, market power,
integration synergies, break into new markets, to asset
strip
 Poorly executed merger or takeover
 Poor decision-making re employment
 Loss of key personnel; how planning and a succession plan
can overcome this
 Recruitment, training, discipline, administration of staff
 Raising capital finance – the options in relation to business
sustainability
 Share issues or capital expenditure
 Fraud, carelessness, negligence
 Issues such as poor security over assets, spending limits not
being observed, inaccurate data, lack of job descriptions,
poor staff performance
 Changes in consumer awareness or buyer behaviour greater choice empowers the customer which can be at the
expense of business
 Global recession and credit crunch
 A high degree of specialisation in the international supply
chain has increased product quality and lowered costs for
many New Zealand businesses. But it has made the chain
more vulnerable – problems with one specialised
component maker can disrupt production further down the
chain.
 Iwi protocol such as kaitiakitanga conflicting with business
operations
 Cost of setting up and installing new technology - hardware
costs, programming, training
 Competitive disadvantage caused by failure to adopt a new
technology
 Rapid pace of technological change and impact on capital
investment
 Security issues
 Ethical responsibilities towards customers – duty of care
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Maori concepts
(comprehensive
explanations in Curriculum
Guide
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problems such as: dishonest/error-prone staff, inadequate
systems or cost-cutting, inadequate or dangerous premises
Ethical responsibilities towards employees: unfair
treatment or unjustified dismissal, unsafe/unhealthy
workplace conditions, privacy issues, breakdowns in
employment relations
Ethical responsibilities towards shareholders and investors:
not declaring a potential liability, overstating profit or
understating debt
Ethical responsibility towards the environment and
community
Tikanga - custom, obligations
Putake – origin or reason for being
Turanga - The positioning/anchor of the business
Kaitiakitanga – Guardianship of natural resources
Rangatiratanga - Exercise of leadership, authority,
guardianship and ownership rights
Exam Coverage
Business acquisition
Human resource issues
2011
 Explain how an external audit can be a useful source of
information for a business
 Discuss how the issues with human resources have
contributed to the safety problem that … faces; describe
two human resource factors, issues or situations that
caused the safety problem; fully explain how each factor,
issue or situation contributed to the problem
 Discuss solutions for … that would address the causes you
wrote about in part b; explain at least two appropriate
solutions; fully explain how each solution would deal with
the causes; explain and justify why it could be better to
implement both solutions together to solve the problem,
rather than using only one solution.
2012
 Explain the importance of key personnel in any
organisation
 Discuss the reasons for the loss of key personnel at …;
describe two factors that have caused the human
resource problem; fully explain how each factor has
contributed to this problem
 Discuss solutions for … that would address the causes you
wrote about in part b; explain two appropriate solutions;
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Investment decisions
Failure of internal controls
Global trends
Technology issues
fully explain how each solution would deal with the
causes; justify with reasons why one solution would be
better than the other to solve the solution
2011
 Explain why investment expenditure is important for a
business
 Discuss the causes of the investment decision problem
that … faces; describe two factors, issues or situations
that caused the investment decision problem; fully
explain how each factor, issue or situation contributed to
the problem
Discuss solutions for … that would address the causes you
wrote about in part b; explain at least two appropriate
solutions; fully explain how each solution would deal with
the causes; explain and justify why it could be better to
implement both solutions together to solve the problem,
rather than using only one solution
2012
 Explain why it is important for an organisation to have
strict policies and procedures
 Discuss the issues leading to the fraud and dishonesty
problem that … had to deal with; describe two factors
that have caused the fraud and dishonest problem; fully
explain how each factor has contributed to the problem
 Discuss solutions for … that would address the causes you
wrote about in part b; explain two appropriate solutions;
fully explain how each solution would deal with the
causes; justify with reasons why one solution would be
better than the other to solve the problem
2011
 Explain one way in which global trends impact on a
company’s success.
 Discuss the causes of the tourism problem that is
affecting …; describe two factors, issues or situations that
caused the problems; fully explain how each factor, issue
or situation contributed to the problem
 Discuss solutions for … that would address the causes you
wrote about in part b; explain at least two solutions; fully
explain how each solution would deal with the causes;
explain and justify why it could be better to implement
both solutions together to solve the problem, rather than
using only one solution
2012
 Explain why customers may prefer to use their mobile
phone for banking services
 Discuss the causes of the technology problem that …
faces; describe two factors that have caused the
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technological problem; fully explain how each factor has
contributed to the problem
Discuss solutions for … that would address the causes you
wrote about in part b; explain two appropriate solutions;
fully explain how each solution would deal with the
causes; justify with reasons why one solution would be
better than the other to solve the problem
Ethical issues
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