68674150 AQA Business Specification

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GCEAS and A Level Specification

Business StudiesAS exams 2009 onwards

A2 exams 2010 onwards


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GCE Business Studies Specication for AS exams 2009 onwards and A2 exams 2010 onwards (version 1.2)

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1 Introduction 2

1.1 Why choose AQA? 21.2 Why choose Business Studies? 2

1.3 How do I start using this specication? 3

1.4 How can I nd out more? 4

2 SpecicationataGlance 5

3 Subject Content 63.1 Unit 1 BUSS1 Planning and Financing a Business 6

3.2 Unit 2 BUSS2 Managing a Business 9

3.3 Unit 3 BUSS3 Strategies for Success 12

3.4 Unit 4 BUSS4 The Business Environment and Managing Change 17

4 Scheme of Assessment 204.1 Aims 20

4.2 Assessment Objectives 20

4.3 National Criteria 21

4.4 Prior Learning 21

4.5 Synoptic Assessment and Stretch and Challenge 22

4.6 Access to Assessment for Disabled Students 22

5 Administration 235.1 Availability of Assessment Units and Certication 23

5.2 Entries 23

5.3 Private Candidates 23

5.4 Access Arrangements and Special Consideration 24

5.5 Language of Examinations 24

5.6 Qualication Titles 24

5.7 Awarding Grades and Reporting Results 24

5.8 Re-sits and Shelf-life of Unit Results 24

Appendices 25A Performance Descriptions 25

B Spiritual, Moral, Ethical, Social, and other Issues 28

C Overlaps with other Qualications 29

D Key Skills Teaching, Developing and Providing Opportunities for 30Generating Evidence

Vertical black lines indicate a signicant change or addition to the previous version of this specication.

Contents


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1 Introduction

1.1 Why choose AQA?

Its a fact that AQA is the UKs favourite examboard and more students receive their academicqualications from AQA than from any other board.But why does AQA continue to be so popular?

SpecicationsOurs are designed to the highest standards,so teachers, students and their parents canbe condent that an AQA award provides anaccurate measure of a students achievements.And the assessment structures have beendesigned to achieve a balance between rigour,

reliability and demands on candidates.

SupportAQA runs the most extensive programme ofsupport meetings; free of charge in the rst yearsof a new specication and at a very reasonablecost thereafter. These support meetings explainthe specication and suggest practical teachingstrategies and approaches that really work.

ServiceWe are committed to providing an efcient andeffective service and we are at the end of thephone when you need to speak to a person aboutan important issue. We will always try to resolveissues the rst time you contact us but, shouldthat not be possible, we will always come backto you (by telephone, email or letter) and keepworking with you to nd the solution.

EthicsAQA is a registered charity. We have noshareholders to pay. We exist solely for the goodof education in the UK. Any surplus income isploughed back into educational research and ourservice to you, our customers. We dont protfrom education, you do.

If you are an existing customer then we thank you foryour support. If you are thinking of moving to AQAthen we look forward to welcoming you.

1.2 Why choose Business Studies?This specication has been designed to providecandidates with a critical understanding of thefollowing:

the internal functions of contemporary businessorganisations of all types

the dynamic external environment within whichbusinesses operate and the effects this can haveupon decision-making within a business

major topical issues that can generate changefor business organisations and the ways in which

businesses respond to these issues the range of stakeholder perspectives that can be

taken on business activities.

It encourages candidates to acquire a range ofimportant and transferable skills:

data skills candidates will be expected tomanipulate data in a variety of forms and tointerpret their results

presenting arguments and making judgments andjustied recommendations on the basis of theavailable evidence

recognising the nature of problems, solvingproblems and making decisions using appropriate

business tools and methods planning work, taking into account the demands

of the task and the time available to complete it

conducting research into a specic theme inpreparation for one or more tasks

challenging their own assumptions using evidencethat has become available.

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TheBenetsofthisSpecication

Itencouragesthepracticalapplicationofbusinessconcepts

by providing teachers with the opportunity toexplore events in the business world as a meansof reinforcing understanding of theories andconcepts.

Itisintendedtopromoteactiveratherthanpassiveunderstanding

as it considers business theories and conceptswithin a framework that provides reasons forstudying the subject.

Itfocusesonthecontemporarybusiness

world

as it has been devised to reect contemporaryissues in the business world, eg entrepreneurship,customer service and emerging markets. TheA2 units also have a similar modern feel. Thetheme of change is central to Unit 4 and is furtheremphasised by the inclusion of topics such asglobalisation and migration.

Itisacandidate-friendlyassessmentpackage

as the style of assessment is designed toprovide a progression in terms of knowledge and

assessment objectives. The AS assessment isbased upon the use of relatively brief stimulusmaterials. The A2 assessment relies more uponthe use of case studies, requires some researchand more extended written responses.

ProgressionfromGCSEtoHigher

EducationAlthough not an entry requirement for thisspecication, candidates who have studied GCSE inBusiness Studies will nd that this specication buildson the concepts and skills that they have learnt.

AQA consulted with universities prior to thedevelopment of this new specication. Thecontent of degree courses in business subjectsvaries enormously between universities and theconsensus view emerging from the consultationwas that the precise content of the specicationwas less important than providing candidates withopportunities to develop important skills such as data

skills, using relevant tools to solve business problems,and research skills. The development team designedthis specication with these requirements in mind.

AlreadyusingtheexistingAQABusinessStudiesSpecication?

Register to receive further information, such asmark schemes, past question papers, details ofteacher support meetings, etc, athttp://www.aqa.org.uk/rn/askaqa.phpInformation will be available electronically or inprint, for your convenience.

Tell us that you intend to enter candidates. Thenwe can make sure that you receive all the materialyou need for the examinations. This is particularlyimportant where examination material is issuedbefore the nal entry deadline. You can let usknow by completing the appropriate Intention toEnter and Estimated Entry forms. We will send

copies to your Exams Ofcer and they are alsoavailable on our websitehttp://www.aqa.org.uk/admin/p_entries.html

NotusingtheAQASpecicationcurrently?

Almost all centres in England and Wales use AQAor have used AQA in the past and are approvedAQA centres. A small minority are not. If yourcentre is new to AQA, please contact our centreapproval team [email protected]

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1.3 How do I start using this specication?


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AskAQA

You have 24-hour access to useful information andanswers to the most commonly-asked questions athttp://www.aqa.org.uk/rn/askaqa.php

If the answer to your question is not available,you can submit a query for our team. Our targetresponse time is one day.

TeacherSupport

Details of the full range of current Teacher Supportmeetings are available on our website athttp://www.aqa.org.uk/support/teachers.html

There is also a link to our fast and convenient onlinebooking system for Teacher Support meetings athttp://events.aqa.org.uk/ebooking

If you need to contact the Teacher Support team,you can call us on 01483 477860 or email us [email protected]

1.4 How can I nd out more?

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2 Specication at a Glance

ASExaminations

Unit1BUSS1

PlanningandFinancingaBusiness

40% of AS, 20% of A Level1 hour 15 minutes examination60 marks

Short answer questions and extended responses based on a mini case study.

Available January and June

Unit2BUSS2ManagingaBusiness

60% of AS, 30% of A Level

1 hour 30 minutes examination80 marks

Compulsory, multi-part data response questions.


A2Examinations

Unit3BUSS3StrategiesforSuccess

25% of A Level1 hour 45 minutes examination

80 marks

Questions requiring extended answers based on an unseen case study drawing uponknowledge from AS units.


Unit4BUSS4TheBusinessEnvironmentandManagingChange

25% of A Level1 hour 45 minutes examination80 marks

Pre-release research tasks leading to the rst section of a two section examination.

Second section will consist of choice of essays. All questions will be essay style andsynoptic therefore drawing upon knowledge from all four units.


AS

Award1131

2

+AS A2 = ALevel

ALevelAward2131


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3 Subject Content

The AS units focus on small to medium-sized businesses operating within national, as opposed to international,markets.

Unit 1 covers the issues involved in a business start-up, such as research and planning, as well as the factorsthat determine success.

Unit 2 focuses on how established businesses might improve their effectiveness by making tactical decisions ata functional level.

ThetransferableskillsunderpinningtheseASunitsinclude: carrying out calculations, interpreting andanalysing data, applying knowledge to unfamiliar situations, developing arguments and making judgements anddecisions.

The A2 units build on the AS units by considering more complex business scenarios and focusing on strategy,as opposed to tactics.

Unit 3 focuses on larger businesses which may be trading in international markets, and how managers mightmeasure the performance of the business. This unit considers functional strategies that larger businesses may

adopt to achieve their objectives.Unit 4 assesses the external factors that can act as catalysts for change, and considers these in relation to arange of businesses. This unit also examines the ways in which businesses can manage change successfullywhen responding to external stimuli. Both A2 units are synoptic.

ThetransferableskillsunderpinningtheseA2unitsinclude: carrying out calculations, interpretingdata, making and presenting arguments, making and justifying business decisions, identifying problems andproposing solutions, recognising that a problem exists, conducting research and challenging assumptions.

3.1 Unit 1 BUSS1 Planning and Financing a Business

In the study of this unit candidates should examine the topic areas below in relation to the two core themes:Starting a Business and Financial Planning.

StartingaBusiness

This section provides candidates with an introduction to the scope of Business Studies within the contextof starting a new business. Candidates will be expected to have an understanding of the range of activitiesinvolved in setting up a small business.

SPECIFICATION AMPLIFICATION

Enterprise

enterprise and entrepreneurs

the importance of risk and rewards such asprot

the notion of opportunity cost

motives for becoming an entrepreneur

government support for enterprise andentrepreneurs.

Candidates should consider the role, importanceand characteristics of an entrepreneur in

establishing a new business.Entrepreneurship can take a number of formsincluding spotting a gap in the market or developinga new or innovative product or process.

Generating and Protecting Business Ideas

sources of business ideas

the identication of a product or market niche

franchises

copyright, patents and trademarks.

The sources of ideas may include brain-storming,own personal experience and business experience.The generation of business ideas must be in relationto a small business with limited resources.

Candidates should be familiar with the formation

and operation of franchises and understand thebenets and pitfalls to franchisors or franchisees ofoperating a franchise as opposed to starting a newbusiness.

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Transforming Resources into Goods and Services

inputs, outputs and the nature of thetransformation of resources into nishedproducts

adding value.

This topic should be considered within the context

of the tertiary, secondary and primary industries.

Developing Business Plans

the purpose and contents of business plans

sources of information and guidance.

Candidates should be aware of the benets andproblems of plans/planning for small businesses.

The planning process involves decisions basedon the resources to be used and factors providingcompetitive advantage.

The sources of information should include: smallbusiness advisors, accountants, bank managersand government agencies.

Conducting Start-up Market Research

methods of primary and secondary marketresearch

qualitative and quantitative research

size and types of samples

factors inuencing the choice of samplingmethods.

Candidates should be aware of the relative value ofdifferent approaches to market research.

Methods of sampling should include: random,quota and stratied.

Candidates should be aware that the availablenance, the nature of the product, the risk involvedand the target market will inuence the choice ofsampling method and size of sample.

Understanding Markets

the nature and types of markets

the importance of demand

types of market segmentation

market size, growth and share.

Candidates should be aware that markets take

different forms, eg local, national, physical andelectronic.

Candidates should know that demand is affected bya range of factors including the price of the product,competitor actions, consumer incomes, success ofbusinesses marketing and seasonal factors.

Candidates should be aware of the benets anddrawbacks of types of segmentation.

Candidates should be able to calculate market size,growth and share.

Choosing the Right Legal Structure for the Business

sole traders, partnerships, private limitedcompanies and public limited companies

not-for-prot businesses.

Candidates should be aware of the benets anddrawbacks of legal structures and understand plcsas a means of comparison.

Raising Finance

sources of nance available to start businesses.

Sources of nance should include: ordinary sharecapital, loan capital (bank loans, overdrafts only),venture capital and personal sources.

Candidates should be aware of the advantages anddisadvantages of these in specic contexts.

Locating the Business

factors inuencing start-up location decisions.

The factors should include: technology, costs,infrastructure, the market and qualitative factors.Candidates should understand that their relative

importance may vary according to the type ofbusiness.


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Employing People

types of employees used in small businesses

using consultants and advisors.

The types of employees should include: temporary,

permanent, full-time and part-time. Candidatesshould be aware of the reasons, drawbacks anddifculties of employing people and/or usingconsultants and advisors.

FinancialPlanning

This section provides candidates with an understanding of key nancial concepts essential for the planningof small businesses. Candidates will be expected to carry out calculations and to be able to interpret theirresults.


Calculating Costs, Revenues and Prots

xed, variable and total costs

price, total revenue and prot.

Candidates should understand the relationshipsbetween cost, price, revenue and prots.

Using Break-Even Analysis to Make Decisions

contribution and contribution per unit

calculation of break-even output

construction of break-even charts

analysing the effects of changing variables onbreak-even charts.

Candidates should understand how start-upbusinesses may use contribution and break-evento analyse the impact of different costs and prices,and make decisions on whether to start thebusiness.

Candidates should be aware of the strengths andweaknesses of break-even analysis.

Using Cash Flow Forecasting

the nature of cash ow

how to forecast cash ow

the structure of a cash ow forecast

why businesses forecast cash ow.

Candidates should understand the sources ofinformation for cash ow forecasts and understandthe signicance of the forecasts.

Candidates should be able to amend or complete acash ow forecast.

Setting Budgets

income, expenditure and prot budgets

the process of setting budgets

problems in setting budgets.

Candidates should be aware of the reasons forsetting budgets and the problems in so doing.

Candidates should be able to amend or complete abudget.

Assessing Business Start-ups

objectives of business start-ups

strengths and weaknesses of a business ideaand/or plan

why start-ups can be risky

why start-up businesses may fail.

Candidates should be aware that objectivesfor start-ups may vary and that determinantsof success and failure depend upon thecircumstances.

Causes of failure should include: unexpectedchanges in demand or costs, unavailability ofsupplies and delays.

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3.2 Unit 2 BUSS2 Managing a Business

In the study of this unit, candidates should examine the topic areas below in relation to the core theme ofimproving the effectiveness of a business. Candidates should be able to calculate and be able to interpretdata measuring the effectiveness of the business. These measurements should include: protability, labourproductivity, labour turnover, unit costs and market share.

Finance

This section introduces candidates to the importance of the management of nance. Candidates shouldunderstand that nancial measures can be used to indicate how well a business is managed and shouldunderstand actions that can be taken to improve nancial performance. Candidates will be expected tocarry out calculations and to be able to interpret their results. This section builds upon Financial Planningin Unit One.


Using Budgets

the benets and drawbacks of using budgets

the calculation and interpretation of favourableand adverse variances

using variance analysis to inform decision-making.

Candidates should be familiar with income,expenditure and prot budgets. They will not berequired to analyse budgets by price and volume,nor to use exible budgets.

Improving Cash Flow

causes of cash ow problems methods of improving cash ow.

Candidates should be familiar with a range oftechniques to improve cash ow including:

overdrafts and short-term loans, factoring and saleor sale and leaseback of assets.

Measuring and Increasing Prot

the calculation and understanding of net protmargins

the calculation and understanding of return oncapital

methods of improving prots/protability

the distinction between cash and prot.

Candidates do not need any understanding of thebalance sheet or income statements.

Candidates do not need any knowledge ofcapital employed. Return on capital relates to thepercentage return on a capital investment.

Methods of improving prots should include costreduction and price rises but also an understandingof the possible implications of these decisions.

PeopleinBusiness

This section considers the issues that managers face in relation to managing the human element to make abusiness more effective. Candidates should appreciate the value of these techniques in tactical decision-making.


Improving Organisational Structures

key elements of organisational structure

workforce roles

how organisational structure affects businessperformance.

Key elements should include:

levels of hierarchy/spans of control

work loads/job allocation

delegation

communication ows.

The workforce roles include: supervisor, teamleader, manager and director.


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Measuring the Effectiveness of the Workforce

methods of measuring workforce performance.

Candidates should be able to calculate and

interpret measures such as labour productivity andlabour turnover.

Developing an Effective Workforce: Recruitment,Selection, Training

the recruitment process

internal and external recruitment

selecting the best employees

how recruitment and selection can improve aworkforce

methods of training.

Types of recruitment and the recruitment processshould include the stages from identifying a vacancyto receipt of applications.

Candidates should understand benets anddrawbacks of internal and external recruitment andtraining.

Methods of selection include: interviews, assessmentcentres, and tests. Candidates should alsobe familiar with person specications and jobdescriptions.

Methods of training should include: on-the-job, off-the-job and induction.

Developing and Retaining an Effective Workforce:Motivating Employees

using nancial methods to motivate employees

improving job design

empowering employees

working in teams

theories of motivation.

Specic theories of motivation will not be examined.Candidates should use any relevant theories tosupport their arguments to consider inuences onmotivation.

Methods of improving job design should include:enrichment and enlargement.

Candidates should understand the links betweenthe organisational structure and the motivationaltechniques available to managers.

OperationsManagement

This section should promote understanding of the importance of operational decisions in managing abusiness in tertiary, secondary and primary sectors. Candidates should understand how operationsmanagement can help a business to be more effective, and the role that can be played in this by technology.


Making Operational Decisions

operational targets

calculating and managing capacity utilisation operational issues dealing with non-standard

orders and matching production and demand.

Operational targets relate to unit costs, quality andcapacity utilisation. Candidates should be able tocalculate and interpret unit costs.

Managing output to match orders should include:use of overtime, hiring temporary and part-timestaff, rationalisation and sub-contracting and theimportance of managing stocks efciently.

Developing Effective Operations: Quality

the meaning of quality

the distinction between quality control andquality assurance

systems of quality assurance

quality standards.

Systems of quality should include Total QualityManagement (TQM).

Candidates should be aware of the issues involvedand the possible benets of introducing and managingquality systems and/or achieving quality standards.

Issues in introducing and managing quality includecosts and other implications of training and thepossibility of disruption to production.

The importance of quality might be judged throughits impact on sales, its possible use as a UniqueSelling Point (USP), the exibility it can give inpricing decisions and costs.

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Developing Effective Operations:

Customer Service

methods of meeting customer expectations

monitoring and improving customer service

the benets of high levels of customer service.

Methods of meeting customer expectations should

include: market research, training, use of qualityassurance and control, quality standards.

Candidates should understand the ways in which arange of different businesses use customer serviceto improve their performance.

Working with Suppliers

choosing effective suppliers

the role that suppliers play in improvingoperational performance.

Factors affecting choice of and relationship withsuppliers should include: prices, payment terms,quality, capacity, reliability and exibility.

Using Technology in Operations

types of technology in operations management

issues in introducing and updating technology.

Types of technology should include: robotics,automation such as stock control, communicationsand design technology.

Candidates should be aware of the benets oftechnology such as: reducing costs, improvingquality, reducing waste and increasing productivity.

MarketingandtheCompetitiveEnvironment

In this section candidates should understand the importance of marketing to businesses and issuesaffecting their competitiveness. The study of marketing at AS Level should focus on using the results ofmarket research and developing an appropriate and integrated marketing mix. Consideration should be

given to how information technology might be used to assist marketing.


Effective Marketing

the purpose of marketing

niche and mass marketing.

Candidates should be aware of the benets anddrawbacks of niche and mass marketing.

Candidates should be aware of consumermarketing and business to business marketing.

Designing an Effective Marketing Mix

inuences on the marketing mix

the importance of an integrated marketing mix.

The inuences on the marketing mix may be wideranging encompassing, nance, technology andmarket research.

Using the Marketing Mix: Product

inuences on the development of new goodsand services

unique selling points (or propositions)

product portfolio analysis

product life cycle.

Inuences on the development of new goods andservices include: technology, competitors actionsand the entrepreneurial skills of managers andowners.

Product portfolio analysis should include the BostonMatrix.

Using the Marketing Mix: Promotion

elements of the promotional mix

inuences on the choice of promotional mix.

The promotional mix includes factors such as: PR,branding, merchandising, sales promotions, directselling and advertising.


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Using the Marketing Mix: Pricing

pricing strategies

pricing tactics

inuences on pricing decisions.

Pricing strategies should include: price skimming

and penetration, price leaders and price takers.

Pricing tactics should include: loss leaders andpsychological pricing.

Inuences on pricing decisions should includethe price elasticity of demand. Candidates mustunderstand the signicance, determinants andthe problems of measurement of price elasticity.Candidates should be able to use the price elasticitycoefcient to show the effects of price changeson total revenue. However, candidates will notbe required to calculate the coefcient of priceelasticity.

Using the Marketing Mix: Place

choosing appropriate outlets/distributors

types of distribution channels.

Marketing and Competitiveness

the possible impacts of market conditions anddegree of competition

determinants of competitiveness

methods of improving competitiveness.

Candidates should be aware of a range of marketswith differing numbers of businesses and degreesof competition such as one dominant business ormany smaller businesses. They should considerhow this impacts on the design of the marketingmix.

Methods of improving competitiveness includemarketing and non-marketing methods such asreducing costs, improving quality and staff training.

3.3 Unit 3 BUSS3 Strategies for Success

In the study of this unit candidates should examine the topic areas below in relation to the core themes ofsetting objectives, measuring performance and devising strategy. The assessment for this unit will draw uponAS material which candidates should use to respond to A2 questions.

FunctionalObjectivesandStrategies

This section introduces candidates to functional objectives and strategies, and examines theirappropriateness in the context of corporate objectives.


Using Objectives and Strategies

functional objectives and their relationship withcorporate objectives

the relationship between functional objectivesand strategies.

Candidates should understand a range of functionalobjectives that businesses might pursue (egminimising costs, gaining market share) and howthese contribute to the achievement of corporateobjectives.

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FinancialStrategiesandAccounts

This section examines the nancial objectives of larger businesses, the ways in which nancial performancemight be measured and the strategies they may deploy. It builds upon AS Finance material. The newInternational Financial Reporting Standards will be used where applicable. Old terminology will be in brackets.


Understanding Financial Objectives

nancial objectives

assessing internal and external inuences onnancial objectives.

Financial objectives should include: cash owtargets, cost minimisation, ROCE targets andshareholders returns.

Using Financial Data to Measure and Assess

Performance

analysing balance sheets

analysing income statements

using nancial data for comparisons, trendanalysis and decision making

assessing strengths and weaknesses of nancialdata in judging performance.

Analysing nancial data should focus on assessing

performance and potential. Candidates shouldunderstand the importance of working capital,depreciation, prot utilisation and prot quality.No construction of accounts or calculation ofdepreciation will be required.

Interpreting Published Accounts

conducting ratio analysis: the selection,calculation and interpretation of ratios to

measure nancial performance

assessing the value and limitations of ratioanalysis in measuring a businesss performance.

Candidates should understand the following ratios:liquidity (current and acid test ratios), protability(ROCE), nancial efciency (asset turnover,inventory [stock] turnover, payables [creditor] andreceivables [debtor] days), gearing and shareholderratios (dividend per share and dividend yield).

Candidates will be given a table of relevant formulaefor ratios as part of the examination paper whereappropriate.

Selecting Financial Strategies

raising nance

implementing prot centres

cost minimisation

allocating capital expenditure.

Candidates should understand how these strategiesinterrelate with other functions and be able toassess their value in given circumstances.

Making Investment Decisions

conducting investment appraisal: selectionof appropriate methods, calculation andinterpretation of ndings

investment criteria

assessing the risks and uncertainties ofinvestment decisions

evaluating quantitative and qualitative inuenceson investment decisions.

Candidates should understand the reasons whybusinesses invest and the ways in which investmentcan help businesses to reach functional objectives.

Quantitative measures of investment should include:payback, average rate of return, and net presentvalue.

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MarketingStrategies

This section considers the development of marketing strategies for larger businesses through a scienticapproach to decision making. It builds upon AS Marketing materials.


Understanding Marketing Objectives

marketing objectives

assessing internal and external inuences onmarketing objectives.

Internal inuences on marketing should includenance, HR, operational issues and corporateobjectives. External inuences should include:competitors actions, market factors andtechnological change.

Analysing Markets and Marketing

reasons for, and the value of, market analysis

methods of analysing trends

the use of information technology in analysingmarkets

difculties in analysing marketing data.

Reasons for analysing markets should include:gathering evidence for devising a new strategy,

identifying signicant patterns in sales.

Candidates should be familiar with movingaverages, test markets and extrapolation asmethods of measuring and forecasting sales.Candidates should understand how correlation canbe used in analysing markets.

Selecting Marketing Strategies

low cost versus differentiation

market penetration

product development and market developmentstrategies

diversication

assessing effectiveness of marketing strategies.

Ansoffs matrix should be used to assess marketingstrategies in a national and an international context.Marketing strategies should consider the methods,risks and benets involved in entering internationalmarkets.

Developing and Implementing Marketing Plans

components of marketing plans

assessing internal and external inuences onmarketing plans

issues in implementing marketing plans.

Components of marketing plans include: objectives,budgets and sales forecasts and marketingstrategies.

Inuences on the marketing plan might include:nance available, operational issues andcompetitors actions.

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OperationalStrategies

This section considers the operational objectives and strategies that a business may use to achievesuccess in its particular market. It builds upon AS Operations materials.


Understanding Operational Objectives

operational objectives

assessing internal and external inuences onoperational objectives.

Operational objectives should include: meetingquality, cost and volume targets, innovation,efciency (including time) and environmental targets.

Inuences on operational objectives might include:competitors performance, resources available, thenature of the product and demand.

Operational Strategies: Scale and Resource Mix

choosing the right scale of production:economies and diseconomies of scale

choosing the optimal mix of resources: capitaland labour intensity.

Candidates should be aware of a range of

economies of scale including: purchasing, technicaland specialisation. Diseconomies of scale includecommunication and co-ordination.

Candidates should understand the benetsand drawbacks of capital and labour intensivestrategies.

Operational Strategies: Innovation

innovation, research and development

purpose, costs, benets and risks of innovation.

Candidates should be aware that a strategy ofinnovation has implications for nance, marketingand human resources.

Operational Strategies: Location

methods of making location decisions

benets of optimal location

the advantages and disadvantages of multi-sitelocations

issues relating to international location.

The focus should be on expansion and/or relocation

(including off-shoring).

Methods of deciding on location should take intoaccount quantitative (investment appraisal, forexample) and qualitative factors.

Reasons for international location include: globalmarkets, cost reduction and avoidance of tradebarriers.

Operational Strategies: Lean Production

the effective management of time

assessing the value of critical path analysis

the effective management of other resourcesthrough methods of lean production.

Candidates should be able to interpret andcomplete critical path networks by entering ESTsand LFTs and understand the signicance of criticaland non-critical activities.

Candidates should be aware of lean productiontechniques, including just-in-time production andkaizen.


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HumanResourceStrategies

This section considers the strategies available to businesses in managing their human resources. It buildsupon AS Human Resources materials.


Understanding HR Objectives and Strategies

HR objectives

assessing internal and external inuences on HRobjectives

HR strategies.

HR objectives might include: matching workforceskills, size and location to business needs,minimising labour cost, making full use of theworkforces potential and maintaining goodemployer/employee relations. Candidates shouldbe aware of hard and soft strategies to HR andthe strengths and weaknesses of each.

Developing and Implementing Workforce Plans

components of workforce plans

assessing internal and external inuences onworkforce plans

issues in implementing workforce plans

the value of using workforce plans.

Candidates should be aware of the inuenceson workforce planning, including other functionaldecisions, eg innovation may require greaterdiversity, legislation and labour market trendsincluding migration.

Issues involved in implementing workforce plansmight include: employer/employee relations, cost,corporate image and training. Candidates shouldrecognise that these issues can have positive andnegative effects.

Competitive Organisational Structures

factors determining choice of organisational

structures

adapting organisational structures to improvecompetitiveness.

Methods of adapting organisational structuresto improve competitiveness should include:

centralisation and decentralisation, delayering andexible workforces. Candidates should be aware ofthe issues involved with implementing and operatingeach of these approaches.

Flexible workforces should include the notion ofcore and peripheral workers, outsourcing and homeworking.

Effective Employer/Employee Relations

managing communications with employees

methods of employee representation

methods of avoiding and resolving industrial

disputes.

Candidates should understand the importance ofcommunication in employer/employee relations.Candidates should know the advantages anddisadvantages of employee representation.Methods of employee representation might include:

works councils, employee groups as well as tradeunions.

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3.4 Unit 4 BUSS4 The Business Environment and Managing

Change

This unit is designed to be synoptic and draws upon all other units of the specication including the AS units.

It considers the relationship between businesses and external factors. It examines how external factors canimpact upon businesses, and the responses they may take. The unit also examines a number of themeswhich are important in the strategic management of businesses, for example, leadership and corporate culture.Candidates should consider how businesses can manage change successfully.

This unit should be studied through a variety of real business contexts to allow candidates to understand howthe impact and response to change varies.

CorporateAimsandObjectives

This section considers what the organisation is attempting to achieve, and how this helps to determine itsstrategies.


Understanding Mission, Aims and Objectives

mission statements

corporate aims and objectives

corporate strategies

differing stakeholder perspectives.

Candidates should understand the purpose andnature of corporate strategies and their relationshipwith aims and objectives.

They should understand differing stakeholderperspectives and the potential for conict and thepressure that stakeholders may bring to decisionmaking.

AssessingChangesintheBusinessEnvironment

This section examines the relationships between organisations and their external environment. Candidatesshould understand the opportunities and threats created by changes in the contemporary businessenvironment. The importance of acquiring and managing information and of communicating effectivelyshould be considered throughout.


The Relationship between Businesses and theEconomic Environment

assessing the effects of the following factors onbusiness organisations:

impact of economic factors

trends in key economic variables

globalisation of markets

developments in emerging markets

evaluating the strategies businesses mightdeploy in response to these changes.

Knowledge of the determinants of macroeconomicfactors is not required.

Candidates should be familiar with the followingeconomic factors: the business cycle, interestrates, exchange rates, ination, unemployment andeconomic growth.


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The Relationship between Businesses and the

Political and Legal Environment

assessing the effects of:

government intervention in the economy

government economic policies

political decisions affecting trade and accessto markets

the impact of legislation relating to businesses

evaluating responses of businesses to achanging political and legal environment.

Consideration might be given to the provision of

products by the government, government regulationand legislation and other forms of intervention suchas tax and subsidy. Monetary, scal policy andsupply side policies should also be considered.

Political decisions should include issues such as:the enlargement of the European Union and movestowards greater freedom of trade.

Legislation affecting businesses should include:employment law, consumer protection,environmental protection and health and safetylegislation on businesses. A broad understandingof scope and impact is all that is required.

The Relationship between Businesses and theSocial Environment

assessing the effects of:

changes in the social environment

the changing nature of the ethical environment

evaluating responses of businesses to achanging social environment including corporatesocial responsibility.

Changes in the social environment might includedemographic factors and environmental issues.

Candidates should be aware of the actions thatbusinesses can take to demonstrate corporatesocial responsibility and consider whether thesereect genuine values or are just a form of publicrelations.

The Relationship between Businesses and theTechnological Environment

assessing the effects of technological change

evaluating the response of businesses totechnological change.

The impact of technological change should beconsidered in terms of a range of issues including:

marketing opportunities, the culture of the businessand the processes and systems used within thebusiness.

The Relationship between Businesses and theCompetitive Environment

assessing the effects of changes in competitivestructure

evaluating responses of businesses to achanging competitive environment.

Changes in the competitive structure might include:new competitors, dominant businesses (eg throughtakeover or merger), changes in the buying powerof customers and/or changes in the selling power ofsuppliers.

3


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3

ManagingChange

Organisations operate in a changing environment and change creates opportunities and threats.Candidates should understand how businesses plan for and manage change, and how external andinternal change is linked.


Internal Causes of Change

change in organisational size

new owners/leaders

poor business performance.

Changes in organisation size may come aboutdue to mergers, takeovers, organic growth andretrenchment.

Planning for Change

purpose of corporate plans

assessing internal and external inuences oncorporate plans

assessing the value of corporate plans.

Corporate planning should include contingencyplanning.

Key Inuences on the Change Process:

Leadership

the meaning of leadership

the range of leadership styles

assessing internal and external factors

inuencing leadership style

the role of leadership in managing change

assessing the importance of leadership.

Candidates should consider the difference betweenthe roles of leaders and managers.

Key Inuences on the Change Process:

Culture

types of organisational culture

reasons for and problems of changingorganisational culture

assessing the importance of organisational

culture.

Types of organisational culture might include:power, entrepreneurial and task.

Making Strategic Decisions

the signicance of information management

the value of different approaches to decision-making

assessing inuences on corporatedecision-making.

Inuences on corporate decision-making includeethical position (real or perceived), resourcesavailable and relative power of stakeholders.

The range of management approaches to decision-making from scientic to intuition.

Implementing and Managing Change

techniques to implement and manage changesuccessfully

assessing the factors that promote and resistchange.

Techniques to implement and manage changemight include: project champions, project groups.Factors that promote and resist change might

include: clear objectives, resources and training.


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4.1 Aims

AS and A Level courses based on the BusinessStudies specication should encourage candidatesto:

develop a critical understanding of organisations,the markets they serve and the process ofadding value. This should involve considerationof the internal workings and management oforganisations and, in particular, the processof decision-making in a dynamic externalenvironment

be aware that business behaviour can be studiedfrom the perspectives of a range of stakeholdersincluding customers, managers, creditors,owners/shareholders and employees. In addition,candidates should be aware of the economic,environmental, ethical, governmental, legal, socialand technological issues associated with business

activity. Candidates should understand thatBusiness Studies draws on a variety of disciplinesand that these perspectives and disciplines areinterrelated

acquire a range of skills, including decision-making and problem solving in the lightof evaluation and, where appropriate, thequantication and management of information

be aware of the current structure of businessand business practice, as reected in eventsand issues affecting organisations in differentsectors and environments, recognising thatthey face varying degrees of competition.These organisations include: large and small,manufacturing and service, local, regional, nationaland multinational, prot-making and non prot-making.

4 Scheme of Assessment

4.2 Assessment Objectives (AOs)

The Assessment Objectives are common to AS andA Level. The assessment units will assess thefollowing Assessment Objectives in the context ofthe content and skills set out in Section 3, SubjectContent.

AO1 Demonstrate knowledge and understanding ofthe specied content.

AO2 Apply knowledge and understanding toproblems and issues arising from both familiar

and unfamiliar situations.AO3 Analyse problems, issues and situations.

AO4 Evaluate, distinguish between and assessappropriateness of fact and opinion, and judgeinformation from a variety of sources.

QualityofWrittenCommunication(QWC)

In GCE specications which require candidates toproduce written material in English, candidates must:

ensure that text is legible and that spelling,punctuation and grammar are accurate so thatmeaning is clear

select and use a form and style of writingappropriate to purpose and to complex subject

matter organise information clearly and coherently, using

specialist vocabulary when appropriate.

In this specication QWC will be assessed in all unitsby embedding QWC in Assessment Objective 4.

4


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4

AO1 14 16 30

AO2 11 14 25

AO3 8 17 25

AO4 7 13 20

AssessmentObjectives UnitWeightings(%) OverallWeightingofAOs(%)

Unit 1 Unit 2

Overall weighting of units (%) 40 60 100

WeightingofAssessmentObjectivesforALevel

The table below shows the approximate weighting of each of the Assessment Objectives in the AS and A2units.

WeightingofAssessmentObjectivesforAS

The table below shows the approximate weighting of each of the Assessment Objectives in the AS units.

AO1 7 8 5 5 25

AO2 5.5 7 7.5 5 25

AO3 4 8.5 6.25 6.25 25

AO4 3.5 6.5 6.25 8.75 25

Overall weighting of units (%) 20 30 25 25 100

AssessmentObjectives UnitWeightings(%) OverallWeightingofAOs(%)

Unit 1 Unit 2 Unit 3 Unit 4

4.3 National CriteriaThis specication complies with the following.

The Subject Criteria for Business Studies.

The Code of Practice for GCE.

The GCE AS and A Level Qualication Criteria.

The Arrangements for the Statutory Regulationof External Qualications in England, Wales andNorthern Ireland: Common Criteria.

There are no prior learning requirements.

We recommend that candidates should have

acquired the skills and knowledge associated with aGCSE course or equivalent.

4.4 Prior Learning


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4

Synoptic assessment in this specication is assessedin the A2 units by drawing on topics from all the otherunits.

The requirement that Stretch and Challenge isincluded at A2 is met by the award of an A*. To beawarded an A* candidates will need to achieve agrade A on the full A Level qualication and an A* onthe aggregate of the A2 units.

4.5 Synoptic Assessment and Stretch and Challenge

4.6 Access to Assessment for Disabled Students

AS/A Levels often require assessment of a broader

range of competences. This is because theyare general qualications and, as such, preparecandidates for a wide range of occupations andhigher level courses.

The revised AS/A Level qualication and subjectcriteria were reviewed to identify whether any of thecompetences required by the subject presented apotential barrier to any disabled candidates. If thiswas the case, the situation was reviewed again toensure that such competences were included onlywhere essential to the subject. The ndings of thisprocess were discussed with disability groups andwith disabled people.

Reasonable adjustments are made for disabled

candidates in order to enable them to access theassessments. For this reason, very few candidateswill have a complete barrier to any part of theassessment.

Candidates who are still unable to access a signicantpart of the assessment, even after exploring allpossibilities through reasonable adjustments, may stillbe able to receive an award. They would be given agrade on the parts of the assessment they have takenand there would be an indication on their certicatethat not all the competences had been addressed.This will be kept under review and may be amendedin the future.


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5.1 Availability of Assessment Units and Certication

Examinations and certication for this specication are available as follows:

5 Administration

January 2009 4

June 2009 4 4

January 2010 4 4 4

June 2010 4 4 4 4

January 2011 onwards 4 4 4 4

June 2011 onwards 4 4 4 4

Availabilityofunits Availabilityofcertication

AS A2 AS A Level

5.2 Entries

Please refer to the current version of EntryProcedures and Codes for up to date entryprocedures. You should use the following entrycodes for the units and for certication.

Unit 1 - BUSS1 Planning and Financing a BusinessUnit 2 - BUSS2 Managing a Business

Unit 3 - BUSS3 Strategies for Success

Unit 4 - BUSS4 The Business Environment andManaging Change

AS certication - 1131

A Level certication - 2131

5.3 Private Candidates

This specication is available to private candidates.Private candidates should write to AQA for a copy ofSupplementary Guidance for Private Candidates.

5


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5

5.4 Access Arrangements and Special Consideration

We have taken note of equality and discriminationlegislation and the interests of minority groups indeveloping and administering this specication.

We follow the guidelines in the Joint Councilfor Qualications (JCQ) document:AccessArrangements, Reasonable Adjustments andSpecial Consideration: General and VocationalQualifications. This is published on the JCQ website(http://www.jcq.org.uk) or you can follow the linkfrom our website (http://www.aqa.org.uk).

AccessArrangements

We can make arrangements so that candidateswith disabilities can access the assessment. Thesearrangements must be made before the examination.For example, we can produce a Braille paper for acandidate with a visual impairment.

SpecialConsideration

We can give special consideration to candidates whohave had a temporary illness, injury or indisposition atthe time of the examination. Where we do this, it isgiven after the examination.

Applications for access arrangements and specialconsideration should be submitted to AQA by theExaminations Ofcer at the centre.

5.5 Language of Examinations

We will provide units in English only.

5.6 Qualication Titles

Qualications based on this specication are:

AQA Advanced Subsidiary GCE in Business Studies and

AQA Advanced Level GCE in Business Studies.

5.7 Awarding Grades and Reporting Results

The AS qualication will be graded on a ve-pointscale: A, B, C, D and E. The full A Level qualicationwill be graded on a six-point scale: A*, A, B, C, Dand E. To be awarded an A*, candidates will need toachieve a grade A on the full A Level qualication andan A* on the aggregate of the A2 units.

For AS and A Level, candidates who fail to reachthe minimum standard for grade E will be recordedas U (unclassied) and will not receive a qualicationcerticate. Individual assessment unit results will becerticated.

5.8 Re-sits and Shelf-life of Unit Results

Unit results remain available to count towardscertication, whether or not they have already been

used, as long as the specication is still valid.Candidates may re-sit a unit any number of timeswithin the shelf-life of the specication. The bestresult for each unit will count towards the nalqualication. Candidates who wish to repeat a

qualication may do so by re-taking one or moreunits. The appropriate subject award entry, as well as

the unit entry/entries, must be submitted in order tobe awarded a new subject grade.

Candidates will be graded on the basis of the worksubmitted for assessment.


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A Performance Descriptions

These performance descriptions show the level ofattainment characteristic of the grade boundaries atA Level. They give a general indication of the requiredlearning outcomes at the A/B and E/U boundaries atAS and A2. The descriptions should be interpretedin relation to the content outlined in the specication;they are not designed to dene that content.

The grade awarded will depend in practice uponthe extent to which the candidate has met theAssessment Objectives (see Section 4) overall.Shortcomings in some aspects of the examinationmay be balanced by better performances in others.

Appendices

A


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Asse

Obje

Candevaluand aof facinformsourc

Cand

a) disopini

b) asof infsourc

c) maof the

Cand

a) mabetw

b) asapprfrom

c) mathe s

Assessment

Objective3

Candidates should be able toanalyse problems, issues andsituations.

Candidates characteristically:

a) analyse problems, issues andsituations by:

building up logicalarguments

using appropriate numericaland nonnumericaltechniques.


a) provide partial analysis ofproblems, issues and situationsby:

building up arguments

using appropriate numerical

and nonnumericaltechniques.

Assessment

Objective2

Candidates should be ableto apply knowledge andunderstanding to problems andissues arising from both familiarand unfamiliar situations.

Candidates characteristicallydemonstrate:

a) the ability to apply relevantknowledge to familiar and

unfamiliar business contexts

b) knowledge andunderstanding of the issuesarising from these situations.


a) the ability to apply a basiclevel of relevant knowledge tofamiliar business contexts

b) some knowledge andunderstanding of the issuesarising from these situations.

Assessment

Objective1

Candidates should be able todemonstrate knowledge andunderstanding of the speciedcontent.


a) demonstrate knowledge andunderstanding of key businessconcepts contained in the

AS specication, with fewsignicant omissions.


a) demonstrate a basicknowledge and someunderstanding of businessconcepts contained in the ASspecication.

Assessment

A/Bboundaryperformancedescriptions

E/Uboundary

performancedescriptions

ASPerformanceDescriptionsBusinessStudies

A


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A

AsseObje

Candevaluand aof facinformsourc

Cand

a) disopini

b) criapprfrom

c) maevalucons

Cand

a) disopini

b) asof inf

sourcc) masourc

AssessmentObjective3

Candidates should be able toanalyse problems, issues andsituations.


a) critically analyse businessproblems, issues and situationsby:

building up logicalarguments

using appropriate numericaland nonnumericaltechniques

b) analyse a business strategy

c) develop a business strategy.


a) provide a simple analysis ofbusiness problems, issues andsituations by:

building up arguments

using appropriate numericaland nonnumericaltechniques

b) outline a business strategy.


Candidates should be ableto apply knowledge andunderstanding to problems andissues arising from both familiarand unfamiliar situations.


a) effective application ofrelevant knowledge to familiarand unfamiliar businesscontexts.

b) knowledge andunderstanding of the issuesarising from these situations.


a) the application of relevantknowledge to familiar andunfamiliar business contexts.

b) some knowledge andunderstanding of the issuesarising from these situations.


Candidates should be able todemonstrate knowledge andunderstanding of the speciedcontent.


a) demonstrate preciseknowledge and understandingof key business conceptsdrawn from the A2specication, with few

omissionsb) demonstrate knowledgeand understanding of theinterconnections betweenbusiness concepts.


a) demonstrate knowledgeand some understanding ofbusiness concepts drawn fromthe A2 specication

b) demonstrate someknowledge and understandingof the interconnectionsbetween business concepts.

Assessment

A/Bboundaryperformance

descriptions

E/Uboundaryperformance

descriptions

A2PerformanceDescriptionsBusinessStudies


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B Spiritual, Moral, Ethical, Social and other Issues

EuropeanDimension

AQA has taken account of the 1988 Resolution of theCouncil of the European Community in preparing thisspecication and associated specimen units.

EnvironmentalEducation

AQA has taken account of the 1988 Resolution ofthe Council of the European Community and the

Report Environmental Responsibility: An Agenda forFurther and Higher Education 1993 in preparing thisspecication and associated specimen units.

AvoidanceofBias

AQA has taken great care in the preparation of thisspecication and specimen units to avoid bias of anykind.

B


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C

C Overlaps with other Qualications

There is a potential overlap between aspects of GCEBusiness Studies, GCE Accounting, GCE Economicsand GCE Law.


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D Key Skills - Teaching, Developing and ProvidingOpportunities for Generating Evidence

Introduction

The Key Skills Qualication requires candidates todemonstrate levels of achievement in the Key Skillsof Communication, Application of Number andInformation Technology.

The units for the wider Key Skills of Improving ownLearning and Performance, Working with Others andProblem Solving are also available. The acquisitionand demonstration of ability in these wider Key Skills

is deemed highly desirable for all candidates, but theydo not form part of the Key Skills Qualication.

The units for each Key Skill comprise three sections:

What you need to know

What you must do

Guidance.

Candidates following a course of study based onthis specication for Business Studies can be offeredopportunities to develop and generate evidence ofattainment in aspects of the Key Skills of:

Communication

Application of Number

Information Technology

Working with Others

Improving own Learning and Performance

Problem Solving.

Areas of study and learning that can be used toencourage the acquisition and use of Key Skills, andto provide opportunities to generate evidence forPart B of the units, are signposted on the next page.

The above information is given in the context of theknowledge that Key Skills at level 3 will be availableuntil 2010 with last certication in 2012.

Key Skills Qualications of Communication,Application of Number and Information and

Communication Technology will be phased out andreplaced by Functional Skills qualications in English,Mathematics and ICT from September 2010 onwards.For further information see the AQA website:http://web.aqa.org.uk/qual/keyskills/com04.php

D


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D

Unit1 Unit2 Unit3 Unit4

Communication

C3.1a 4 4 4 4

C3.1b 4 4 4 4

C3.2 4 4 4 4

C3.3 4 4 4 4

ApplicationofNumber

N3.1 4 4 4 4

N3.2 4 4 4 4

N3.3 4 4 4 4

InformationTechnology

ICT3.1 4 4 4 4

ICT3.2 4 4 4 4

ICT3.3 4 4 4 4

WorkingWithOthers

WO3.1 4 4 4 4

WO3.2 4 4 4 4

WO3.3 4 4 4 4

ImprovingOwnLearningandPerformance

LP3.1 4 4 4 4

LP3.2 4 4 4 4

LP3.3 4 4 4 4

ProblemSolving

PS3.1 4 4 4 4

PS3.2 4 4 4 4

PS3.3 4 4 4 4

KeySkillsOpportunitiesinBusinessStudies


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GCE Business Studies (2130) 2009 onwards

Qualification Accreditation Number: AS 500/2266/0 - A Level 500/2249/0

To obtain free specification updates and support material or to ask us a question register with Ask AQA:

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Copyright 2007 AQA and its licensors. All rights reserved.

Support meetings are available throughout the life of the specification.Further information is available at:

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Documents

68674150 AQA Business Specification