By Revision Genie
Business activity and influences on business
Unit 1
Financial business objectives: survival, profit, sales, market share, financial security
Non-financial business objectives: social aims, satisfaction, challenge, independence, control
Why business objectives change as a business evolves
Sole traders: key features, pros and cons
Partnerships: key features, pros and cons
Private limited companies: key features, pros and cons
Public limited companies: key features, pros and cons
Public corporations: reasons for and against public ownership
Risk, ownership and limited liability: what they mean in practice
Ownership vs control in different business forms
Stakeholders and shareholders: who they are and why they matter
Choosing the most appropriate form of ownership for a business scenario
Franchises: what they are and why firms use them
Social enterprises: purpose and how they operate
Multinationals: what they are and why firms become multinationals
Primary sector: what it is, typical businesses and examples
Secondary sector: what it is, typical businesses and examples
Tertiary sector: what it is, typical businesses and examples
Location factors: proximity to market, labour, materials and competitors
Location decisions and relocation: how business activity affects the decision
Impact of the internet on location: e-commerce vs fixed premises
Location and the external environment: legal controls and trade blocs
Globalisation: what it is and why it happens
Globalisation: opportunities and threats for businesses
Multinationals: benefits to the business
Multinationals: benefits to a host country/economy
Multinationals: possible drawbacks to a host country/economy
Exchange rates: calculating exchange rates (worked method)
Exchange rates: impact on international competitiveness
Exchange rates: impact on importers and exporters
Government spending: why governments spend and limits on spending
How government affects business activity: infrastructure provision
How government affects business activity: legislation
Trade policy: trading blocs and tariffs
Interest rates: effects on businesses
Interest rates: effects on consumer spending
External factors: social influences on business decisions
External factors: technological influences on business decisions
External factors: environmental influences on business decisions
External factors: political influences on business decisions
Measuring business success: revenue
Measuring business success: market share
Measuring business success: customer satisfaction
Measuring business success: profit
Measuring business success: growth
Measuring business success: owner/shareholder satisfaction
Measuring business success: employee satisfaction
Reasons for business failure: cash flow problems and lack of finance
Reasons for business failure: not competitive
Reasons for business failure: failure to adapt to market changes
Unit 2
People in business
Why effective communication matters in business
Internal communication: purposes and examples
External communication: purposes and examples
Communication methods (including IT): choosing the right method
Benefits and limitations of different communication methods
How communication barriers arise
Problems caused by ineffective communication
How to remove communication barriers
Types of employment: full-time and part-time
Types of employment: flexitime and zero-hours contracts
Types of employment: job share
Types of employment: casual, seasonal and temporary
Recruitment documents: job description
Recruitment documents: person specification
Recruitment documents: application form
Recruitment documents: CV/résumé
Internal recruitment: advantages and disadvantages
External recruitment: advantages and disadvantages
Recruitment process: job advertisement
Recruitment process: shortlisting
Recruitment process: interviewing
Legal controls: equal opportunities (protected characteristics)
Legal controls: minimum wage laws and their effects
Why training matters for the business and for workers
Induction training: purpose and examples
On-the-job training: purpose, benefits and limitations
Off-the-job training: purpose, benefits and limitations
Training and compliance with health and safety laws
Motivation: why it matters (attracting, retaining, productivity)
Taylor’s view of motivation (scientific management)
Maslow’s hierarchy of needs (workplace application)
Herzberg’s two-factor theory (workplace application)
Financial motivation: remuneration
Financial motivation: bonus and commission
Financial motivation: promotion and fringe benefits
Non-financial motivation: job rotation and job enrichment
Non-financial motivation: autonomy
Organisational structures: hierarchical vs flat
Organisational structures: centralised vs decentralised
Span of control: what it is and why it matters
Chain of command: what it is and why it matters
Delegation: what it is and when it works well
Functional areas: human resources (what HR does)
Functional areas: finance (what the finance function does)
Functional areas: marketing (what the marketing function does)
Functional areas: production/operations (what operations does)
Unit 3
Business finance
Why businesses need finance: short-term needs
Why businesses need finance: long-term needs
Finance for start-up vs finance for expansion
Internal finance: personal savings
Internal finance: retained profit
Internal finance: selling assets
External finance: overdrafts and trade payables
External finance: loans (loan capital)
External finance: share capital and stock market flotation
External finance: venture capital
External finance: crowdfunding
Why cash is vital: paying suppliers, overheads and employees
Cash vs profit: spotting the difference in exam questions
Cash-flow forecasts: cash inflows
Cash-flow forecasts: cash outflows
Cash-flow forecasts: net cash flow
Cash-flow forecasts: opening and closing balances
Interpreting a cash-flow forecast to identify problems and solutions
Revenue: what it is and how to calculate it
Fixed costs vs variable costs (with business examples)
Total costs: how to calculate and interpret
Profit and loss: calculating profit and understanding losses
Break-even: what it means for a business
Break-even output: calculating using a formula
Break-even output: finding it from a break-even diagram
Interpreting break-even charts: margin of safety and profit/loss areas
Break-even changes: impact of changing revenue
Break-even changes: impact of changing costs
Limitations of break-even charts: why results aren’t always reliable
Statement of comprehensive income: what it is used for
Income statement features: sales, cost of sales and gross profit
Income statement features: expenses and operating profit
Using an income statement for decision making (no construction)
Profit: what it is, why it matters, and how it differs from revenue
Statement of financial position: what it is used for
Balance sheet features: current and non-current assets
Balance sheet features: current and non-current liabilities
Capital employed: what it represents
Interpreting a statement of financial position (no construction)
Gross profit margin: calculating and interpreting
Operating profit margin: calculating and interpreting
Markup: calculating and interpreting
ROCE: calculating and interpreting
Current ratio: calculating and interpreting
Acid test ratio: calculating and interpreting
Liquidity: what it means and why it matters
Comparing ratios over time and against other businesses
Using financial documents to assess performance and make decisions
Unit 4
Marketing
Why businesses do market research: needs, gaps, risk reduction, decisions
Primary research: surveys
Primary research: questionnaires
Primary research: focus groups
Primary research: observation
Primary research: test marketing
Secondary research: internet sources (benefits and risks)
Secondary research: market reports
Secondary research: government reports
Qualitative vs quantitative data in market research
Using social media to collect market research data
Reliability of market research data: bias, sample size, outdated data
Why marketing matters: satisfying customer needs
Building customer relationships and customer loyalty
Market orientation vs product orientation
Market share: meaning and basic analysis
Niche marketing vs mass marketing
Responding to changing customer needs
Responding to changing customer/consumer spending patterns
Responding to increased competition
Market segmentation: why businesses segment markets
Segmenting by location: geographic segmentation
Segmenting by demographics
Segmenting by lifestyle: psychographic segmentation
Segmenting by income
Segmenting by age
Targeting: choosing a segment and justifying the choice
Product: developing a new product or service
Goods vs services: key differences for marketing decisions
Packaging: why it matters (protection, branding, information)
Product life cycle: the main stages
Product life cycle: extension strategies (how firms extend sales)
Managing a product portfolio: Boston Matrix basics
Price: cost-plus pricing
Price: penetration pricing
Price: competition pricing
Price: price skimming
Price: promotional pricing
Place: distribution channels and choosing methods of distribution
Retailers as a distribution channel
E-tailers and e-commerce as a distribution channel
Promotion strategies: advertising
Promotion strategies: sponsorship
Promotion strategies: product trials and special offers
Promotion strategies: branding as promotion
Above-the-line vs below-the-line promotion
Public relations: improving company image and brand
Technology in promotion: targeted online advertising
Technology in promotion: viral advertising via social media
Technology in promotion: e-newsletters
Brands: why branding is valuable to a business
Unit 5
Business operations
Economies of scale: what they are and why average costs fall
Internal economies of scale: examples (purchasing, technical, managerial, financial)
External economies of scale: what they are and examples
Diseconomies of scale: what they are and why growth can create problems
Limits of growth: when bigger stops being better
Production methods: job production
Production methods: batch production
Production methods: flow production
Labour-intensive vs capital-intensive production: how to tell the difference
Choosing a production method: impact on cost, quality and flexibility
Productivity: what it is and how to calculate it
Productivity improvements: how higher productivity affects a business
Lean production: what it is and why it matters
Just-in-time (JIT): how it works and risks
Kaizen: continuous improvement in practice
Using resources effectively: reducing waste and improving efficiency
Technology in production: robotics and automation
Balancing cost, productivity, quality and flexibility in operations decisions
Factors of production: enterprise (role of the entrepreneur)
Factors of production: land, labour and capital (roles and examples)
Changing relationships between enterprise, capital, land and labour
Quality: what “quality” means for goods and services
Quality control: how it works and when it’s used
Total quality management (TQM): whole-business approach to quality
Quality and competitive advantage: why quality can help win customers
Unit 6
Assessment and exam skills (Paper 1 + Paper 2)
What Paper 1 tests: investigating small businesses (using context)
What Paper 2 tests: investigating large businesses (using context)
Using data and information sources to support analysis and judgement
Command words: calculate, analyse, discuss, evaluate (what each needs)
Building strong evaluation: balanced arguments and justified decision
Full marks on calculations: show workings, state units, clear answers