Reference no: EM132685068

Learning aim A: Explore the features of different businesses and analyse what makes them successful
A1 Features of businesses
• Ownership and liability:
o private, e.g. sole trader, partnership, private limited company, public limited company, cooperative, limited and unlimited liability
o public, e.g. government department
o not-for-profit, e.g. charitable trust, voluntary.
• Purposes, e.g. supply of products or services, difference between for-profit and not-for-profit businesses.
• Sectors: primary, secondary, tertiary, quaternary.
• Scope of business activities: local, national, international.
• Size: micro - up to nine staff, Small and Medium Enterprises (SMEs): small - between 10 and 49 staff, medium - between 50 and 249 staff; large: more than 250 staff.
• Reasons for success how these differ depending on the type of business (profit or non-profit), and its aims and objectives, e.g. clarity of vision, innovative products or processes.

A2 Stakeholders and their influence
• Stakeholders:
o internal, e.g. managers, employees, owners
o external, e.g. suppliers, lenders, competitors, debtors, creditors, customers, government agencies and departments (local, national, international), communities (local, national, international), pressure groups, interest groups.
• The influence of stakeholders on business success, e.g. shareholder value; customers as long-term assets (strong customer service enables customer loyalty and retention); employee involvement, corporate social responsibility (community groups and interest groups).

A3 Effective business communications
Appropriate presentation and delivery of information to a given audience:
• written presentations, e.g. financial, non-financial, formal and informal reports
• oral presentations, e.g. computer projection/PowerPoint with speaker notes
• importance of communication to aid business success, e.g. social media, virtual communities.

Learning aim B: Investigate how businesses are organised
B1 Structure and organisation
• Organisational structure, e.g. hierarchical, flat, matrix, holacratic.
• Functional/operational areas, e.g. human resources, research and development, sales, marketing, purchasing, production and quality, finance, customer service, IT, administration.
B2 Aims and objectives
• Aims of businesses in different sectors - mission, vision and values:
o private, e.g. making profits, profit maximisation, break-even, survival, growth, market leadership
0 public, e.g. service provision, cost control, value for money, service quality, meeting government standards
0 not-for-profit, e.g. education, housing, alleviating poverty, healthcare.
• SMART (Specific, Measurable, Achievable, Relevant, Time constrained) objectives.

Learning aim C: Examine the environment in which businesses operate
Cl External environment
• Political, e.g. government support, membership of trading communities such as the European Union.
• Economic, fiscal, monetary and other government policies, e.g. supply side policy, economic growth, exchange rates.
• Social attitudes to saving, spending and debt; social responsibility requirements; change, e.g. to demographic trends, consumers' tastes/preferences.
• Technological change, e.g. automation, improved communications.
• Environmental factors and ethical trends, e.g. carbon emissions, waste, recycling, pollution.
• Legal environment, e.g. partnership legislation, companies acts, charities legislation, competition legislation, UK Corporate Governance Code, financial services regulation, industry regulators, government departments.
(Statutes and regulations current at the time of teaching should be used.
Outline understanding only is expected.)
C2 Internal environment
• Corporate culture.
• Corporate social responsibility (CSR), ethics.
C3 Competitive environment
• Competition (local, national and international).
• Factors influencing competitive advantage, e.g. differentiation, pricing policies, market leadership, reputation, market share, cost control, technology relationships with customers, suppliers, employees.
• Benefits and importance of establishing and maintaining a competitive advantage.
C4 Situational analysis
• Assessment of the business environment using various techniques, e.g. PESTEL (Political, Economic, Social, Technological, Legal, Environmental) analysis, SWOT (Strengths, Weaknesses, Opportunities, Threats) analysis, 5Cs (Company, Competitors, Customers, Collaborators, Climate) analysis, Porter's Five Forces.
Learning aim D: Examine business markets
DI. Different market structures
• Market structures: perfect competition, imperfect competition.
• Features of different market structures: number of firms, freedom of entry, nature of product.
D2 Relationship between demand, supply and price
• Influences on demand, e.g. affordability, competition, availability of substitutes,
level of Gross Domestic Product (GDP), needs and aspirations of consumers.
• Influences on supply, e.g. availability of raw materials and labour, logistics, ability to produce profitably, competition for raw materials, government support.
• Elasticity: price elasticity of demand.
D3 Pricing and output decisions
• Impact on pricing and output decisions in different market structures.
• Reponses by business to pricing and output decisions of competitors in different market structures.