5th Edition

Rob JonesKeith HirstJennifer LeeAndrew RedfernDave HallCarlo RaffoAlain Anderton

Edexcel AS/A Level BUSINESS

DRAFT

ii

Published by Pearson Education Limited, 80 Strand, London, WC2R 0RL. www.pearsonschoolsandfecolleges.co.uk

Copies of official specifications for all Edexcel qualifications may be found on the website: www.edexcel.com

Text © Rob Jones, Keith Hirst, Jennifer Lee, Andrew Redfern, Dave Hall, Carlo Raffo and Alain Anderton 2015 Edited by Julia Bruce Designed by Pearson Education Typeset by Tech-Art Original illustrations © Pearson Education 2015 Illustrated by Tech-Art Cover design by Elizabeth Arnoux for Pearson Education Picture research by Rebecca Sodergren Cover photo/illustration © Fancy Images (George Hammerstein) / Plainpicture Ltd The rights of Rob Jones, Keith Hirst, Jennifer Lee, Andrew Redfern, Dave Hall, Carlo Raffo and Alain Anderton to be identified as authors of this work have been asserted by them in accordance with the Copyright, Designs and Patents Act 1988.

First published 2015

18 17 16 15 10 9 8 7 6 5 4 3 2 1

British Library Cataloguing in Publication Data A catalogue record for this book is available from the British Library

ISBN 978 1 447 98352 1

Copyright notice All rights reserved. No part of this publication may be reproduced in any form or by any means (including photocopying or storing it in any medium by electronic means and whether or not transiently or incidentally to some other use of this publication) without the written permission of the copyright owner, except in accordance with the provisions of the Copyright, Designs and Patents Act 1988 or under the terms of a licence issued by the Copyright Licensing Agency, Saffron House, 6 –10 Kirby Street, London EC1N 8TS (www.cla.co.uk). Applications for the copyright owner’s written permission should be addressed to the publisher.

Printed in Slovakia by Neografia

Websites Pearson Education Limited is not responsible for the content of any external internet sites. It is essential for tutors to preview each website before using it in class so as to ensure that the URL is still accurate, relevant and appropriate. We suggest that tutors bookmark useful websites and consider enabling students to access them through the school/college intranet.

A note from the publisher In order to ensure that this resource offers high-quality support for the associated Pearson qualification, it has been through a review process by the awarding body. This process confirms that; this resource fully covers the teaching and learning content of the specification or part of a specification at which it is aimed. It also confirms that it demonstrates an appropriate balance between the development of subject skills, knowledge and understanding, in addition to preparation for assessment.

Endorsement does not cover any guidance on assessment activities or processes (e.g. practice questions or advice on how to answer assessment questions), included in the resource nor does it prescribe any particular approach to the teaching or delivery of a related course.

While the publishers have made every attempt to ensure that advice on the qualification and its assessment is accurate, the official specification and associated assessment guidance materials are the only authoritative source of information and should always be referred to for definitive guidance.

Pearson examiners have not contributed to any sections in this resource relevant to examination papers for which they have responsibility.

Examiners will not use endorsed resources as a source of material for any assessment set by Pearson.

Endorsement of a resource does not mean that the resource is required to achieve this Pearson qualification, nor does it mean that it is the only suitable material available to support the qualification, and any resource lists produced by the awarding body shall include this and other appropriate resources.

DRAFT

iii

Contents About this book iv Introduction AS/A Level Business viii

Theme 1: Marketing and People1 The market 12 Market research 93 Market positioning 194 Demand 245 Supply 286 Markets 327 Price elasticity of demand 368 Income elasticity of demand 419 Product/service design 4510 Branding and promotion 5011 Pricing strategies 5812 Distribution 6413 Marketing strategy 7014 Approaches to staffing 7815 Recruitment, selection and training 8516 Organisational design 9317 Motivation in theory and practice 10018 Leadership 11019 Role of an entrepreneur 11520 Entrepreneurial motives and characteristics 12221 Business objectives 12722 Forms of business 1 13123 Forms of business 2 13824 Business choices 14225 Moving from entrepreneur to leader 146

Theme 2: Managing business activities 26 Internal finance 15027 External finance 15428 Liability 15929 Planning 16430 Sales forecasting 17131 Sales, revenue and costs 17732 Break-even 18233 Budgets 18634 Profit 19235 Liquidity 19736 Business failure 20437 Production, productivity and efficiency 20938 Capacity utilisation 21639 Stock control 22040 Quality management 22641 Economic influences 23342 Legislation 24343 The competitive environment 251 AS Level: Preparing for your exams 257

Theme 3: Business decisions and strategy 44 Corporate objectives 26745 Theories of corporate strategy 27346 SWOT analysis 27947 Impact of external influences 28348 Growth 29049 Mergers and takeovers 29650 Organic growth 30251 Reasons for staying small 30652 Quantitative sales forecasting 31253 Investment appraisal 31754 Decision trees 32455 Critical Path Analysis 33156 Corporate influences 33757 Corporate culture 34258 Shareholders versus stakeholders 34959 Business ethics 35560 Interpretation of financial statements 36161 Ratio analysis 36862 Human resources 37363 Causes and effects of change 38064 Key factors in change 38665 Scenario planning 392

Theme 4: Global business 66 Growing economies 39667 International trade and business growth 40668 Factors contributing to increased globalisation 41569 Protectionism 42270 Trading blocs 42671 Conditions that prompt trade 43472 Assessment of a country as a market 44273 Assessment of a country as a production location 45074 Reasons for global mergers or joint ventures 45675 Global competitiveness 46276 Marketing 46877 Niche markets 47478 Cultural/social factors 48079 The impact of MNCs 48680 Ethics 49181 Controlling MNCs 497 A Level: Preparing for your exams 502 Index 536 Acknowledgements 551

DRAFT

iv

About this book‘Questions’ Throughout each unit you will find questions that will test your understanding of topics and help you to build your analytical and critical thinking skills.

This Student Book contains a wealth of features that will help you to access the course content, prepare for your exams, and take your knowledge and understanding further. The pages below show some of the key features and explain how they will support you in developing the skills needed to succeed on your A level Business course.

Features‘Key points’ These provide a clear overview of the content covered in the topic, clearly matched to the specification.

‘Getting started’ These activities are designed to help you start thinking about the topics and issues you will be covering in the unit.

‘Thinking bigger’ These features provide opportunities for you to explore an aspect of business studies in more detail. The information in these features goes beyond the specification and will help you to deepen your understanding and think like a business person.

‘Worked examples’ and ‘Maths tips’ Practical worked examples will help you apply new methods or formulae to your own work. Maths tips will help you to simplify complex calculations. A ‘calculator’ icon on any question identifies opportunities for you to practise your maths skills and signposts topics where calculations and formulae are found.

Key points1. Market mapping.2. Competitive advantage of a product or service.3. The purpose of product differentiation.4. Adding value to products and services.

Getting started

The prices of some goods change slowly over time; others are more volatile. For example, it was widely reported that the global price of oil was around $90 per barrel in October 2014. By the end of December the price had fallen to around $55. The price of flowers can increase greatly in the few days leading up to Mother’s Day. On Christmas Day and New Year’s Eve it is common for taxi drivers to double their prices. In general, prices are determined by the interaction of supply and demand.

What market factor do you think has the most influence on the price of oil? Why does the price of flowers rise by so much in the run up to Mother’s Day? Why can’t taxi drivers double their prices all year round?

Question 1

Coolpop Ltd sells fizzy citrus drinks in the very competitive soft drinks market. In 2013, the company sold 2,000,000 cans of Lemon Coolpop at a price of 50p. In 2014, the company decided to reduce the price of Lemon Coolpop to try and win a bigger market share. The price was reduced to 40p and sales rose to 2,600,000.

(a) Calculate the price elasticity of demand for Coolpop.

(b) State whether demand is price elastic or price inelastic.

Thinking biggerEvery year the FA Cup Final is played at Wembley Stadium. Unfortunately, there are never enough tickets for all the supporters that would like to go; there is always a shortage. The English FA are aware of this, but don’t set the price very high as they say that they would prefer to keep the tickets ‘reasonably priced’ so that genuine football supporters can afford to go to the match. Evidence of ticket shortages is shown by the price of tickets on the ‘black market’ (an illegal market where touts sell tickets above face value). In some years a ticket with a face value of £60 might be sold for £500 or more. Figure 8 is an illustration of what is happening in the market. Note that the supply curve is vertical because supply is fixed. The capacity of Wembley Stadium is 90,000.

Worked example

For product A in Figure 1, the price elasticity of demand would be:

20%= ––––– = – 0.5 – 40%

For product B in Figure 1, the price elasticity of demand would be:

100% = ––––– = – 2.5 – 40%

Maths tip

There is a minus number in the calculation above because the price fell by 40 per cent (from £10 to £6). Since the price change was negative a minus sign must be shown. Whenever price or demand falls in the calculation, it is proper, and may be helpful, to show the minus sign.

DRAFT

v

About this book

‘Exam tips’ Within units you will find tips that give practical advice and guidance to ensure you’re well prepared for your exams.

‘Key terms’ These are highlighted in the text and complex terminology or specialist business terms are clearly defined in a handy box at the end of each unit.

‘Case study’ These exam-style, data response questions contain an authentic piece of writing that provides you with an opportunity to practise your own extended writing and to develop your ability to combine your knowledge, skills and understanding with the breadth and depth of the subject of business studies.

Case study

THE MARKET FOR READY MIXED CONCRETEThe construction industry has suffered badly since the financial crisis of 2008 and the subsequent recession. Output in the construction sector fell faster than the economy as a whole in 2008. 2009 saw the sector recover faster than the economy as a whole, but during 2010 and 2011 growth was flat. There was another contraction in 2012 but the sector grew through 2013. In 2014 the industry was still 11.6 per cent down on the 2007 level.

Many of the companies operating in the sector have struggled to remain profitable. Some of the marginal operators have left the market. One important part of the supply chain in the construction industry is the contribution made by suppliers of ready mixed concrete. This is concrete that can be transported to building sites and pumped directly to where it is needed. When the construction industry declined, demand for ready mixed concrete naturally fell. The price of ready mixed concrete can vary depending on how much is purchased, but a builder can expect to pay around £100 per cubic metre.

Source: adapted from Parliament briefing papers: The construction industry: statistics and policy, House of Commons

(a) Explain one factor that might cause excess supply of ready mixed cement. (4 marks)

(b) Using a supply and demand diagram, illustrate the impact on the market for ready mixed concrete of the decline in the construction industry. (4 marks)

(c) Using a supply and demand diagram, illustrate the impact on the market for ready mixed concrete if a number of suppliers are forced out of business. (4 marks)

(d) Assess the impact on the price of ready mixed concrete of both a decline in the construction industry and the collapse of several suppliers. (8 marks)

Exam tip When drawing supply and demand curves you need to remember that demand curves always slope down from left to right and supply curves slope up from left to right (unless supply is fixed). You also need to remember to label the axes correctly. Marks may be awarded in examinations for labelling axes correctly, showing clearly the units measured.

‘Knowledge check’ Questions at the end of each unit provide a quick test of your understanding of the unit content.

‘Links’ This feature in Themes 3 and 4 helps you to develop the synoptic skills required in your exam for Paper 4 by suggesting ways that the topics in one unit link to others. The links feature helps you to understand how to demonstrate your accumulated knowledge and understanding of a topic or subject area.Knowledge check

1. What is meant by price elasticity of demand?

2. Give two examples of products that might have inelastic demand.

3. What is the formula for calculating price elasticity of demand?

4. The price of a product is increased by 8 per cent; as a result demand falls by 12 per cent. Calculate price elasticity of demand.

5. The price elasticity of demand for a product is –0.67. What will happen to total revenue if price is reduced?

6. The price elasticity of demand for a product is –2.7. What will happen to total revenue if price is raised?

7. State two factors that affect the price elasticity of demand for a product.

Key terms

Monopoly – a market dominated by a single business.Oligopoly – a market dominated by a few large businesses.PESTLE analysis – analysis of the external political, economic, social, technological, legal and environmental factors affecting a business.

LinksTo demonstrate your synoptic skills you could link information in this unit to answers relating to global competitiveness, for example. UK businesses trying to compete globally may try to improve productivity and staff retention to gain a competitive edge. Information in this unit might also be linked with issues covered in Motivation in theory and practice (Unit 17), Business objectives (Unit 21), Production, productivity and efficiency (Unit 37) and Corporate culture (Unit 57).

DRAFT

vi

About this book

‘Preparing for your exams’ At the end of Themes 1 and 4 you’ll find detailed exam preparation sections to help consolidate your learning. Exam-style questions, mark schemes and answers, together with useful tips for how to approach the exams, will give you extra confidence in your performance.

A Level Paper 2

6

If the government increases taxes, the restaurant industry could be adversely affected. For example, if income tax is increased then disposable incomes will be reduced. This could result in a fall in demand for restaurant services. Frankie’s might be affected by such a measure (depending on the income elasticity of fish and chips). Restaurants will also be affected if the government decides to raise VAT. This will increase costs for restaurants and marginal operators will be squeezed. Some may go out of business. However, Frankie’s is the number one fish and chip shop in the UK, so it could probably cope with higher VAT. Finally, government might increase businesses taxes, such as corporation tax. This would have a negative impact on restaurants that trade as limited companies or plcs.

To conclude, the overall impact of economic influences on businesses like Frankie’s depends on a range of factors. If the influence of economic factors is favourable, such as higher economic growth, the restaurant industry is likely to benefit. However, cuts in government expenditure and higher taxes will have a negative effect. The overall impact is very difficult to assess because it is impossible to predict with any accuracy how economic influences will develop. The effect on Frankie’s might also depend on the income elasticity of demand for fish and chips. But, since Frankie’s is the number one fish and chip shop in the UK, it is probably strong enough to survive a range of negative influences, and would probably do very well in a strengthening economy.

Comment, Question 1 (e)This question requires an extended answer and you need to demonstrate knowledge, application, analysis and evaluation. Four marks might be awarded for demonstrating knowledge, such as understanding the meaning of economic influences like economic growth and identifying other possible economic influences, such as taxation and government expenditure. Four marks might be awarded for application. This answer focuses throughout on the impact of economic influences on the restaurant industry and Frankie’s fish and chip shop in particular. Income elasticity is also applied to the demand for fish and chips.

Six marks might be awarded for analysis. Examples of analysis in this answer are the explanation of how economic growth, cuts

in government expenditure and higher taxes are likely to impact on the restaurant industry and Frankie’s in particular. Six marks might be awarded for evaluation. In this case, one approach is to weigh up the possible economic influences and decide which is most likely to have an impact on businesses like Frankie’s. It is an impossible task to draw a definitive conclusion because the possible economic influences cannot be predicted – some might be positive (economic growth) and some negative (cuts in government expenditure and higher taxes). However, this is clearly stated and there is still an attempt to make a judgement. It is recognised that Frankie’s is in a good position because it is the UK’s number one fish and chip shop. However, overall, the impact might depend on the income elasticity of demand for fish and chips.

Section B, Question 2

Read the following extracts (E–H) before answering Question 2.

Rapid growth at Concrete Canvas

Extract EConcrete Canvas produces a special concrete impregnated construction material that was developed by Peter Brewin and Will Crawford when they were at the Royal College of Art together. In 2014, according to a survey by the Sunday Times, Concrete Canvas was ranked the 16th fastest-growing company in the UK. Between 2010 and 2013 sales grew at an average annual rate of 118 per cent. In 2013 it employed 26 people and enjoyed sales of £5.1 million.

Concrete Canvas is a fabric that hardens when sprayed with water, creating a waterproof and fireproof concrete layer. It was first developed as a material from which concrete shelters could be made. The idea was to design shelters that could be dropped into disaster zones or areas of military conflict and swiftly assembled. However, this idea encountered difficulties and consequently the pair explored new markets for the product.

It is now sold in large rolls, which can be manipulated into shape onto the ground, on slopes and on existing concrete. It is used in mining, civil infrastructure and the petrochemicals industry.

Source: www.concretecanvas.com

A Level Paper 2

8

2 (a) Calculate the return on capital employed for Barratt Homes in 2014. (4 marks)

Question 2 (a), student answerThe return on capital employed for Barratt Homes is given by:

Net profit is £305.4 million

Capital employed = total assets – current liabilities = (£1,248.4m + £,3895.9m) – £1,160.1m = £5,114.3m – £1,160.1m = £3,984.2m

ROCE = Net profit x 100 = £305.4m x 100 = 7.7 % Capital employed £3,984.2

Verdict, Question 2 (a)You need to remember the formula for calculating return on capital employed (ROCE) in this question. You also need to remember how to identify capital employed. You should write down the

formula and show all your working out. Even if you get the wrong answer you may still be awarded some marks for stating the correct formula and identifying some relevant information.

2 (b) Explain one reason why Wates might want to take over Shepherd. (4 marks)

Question 2 (b), student answerA takeover occurs when one business buys another from its current owners. Once the business has been bought, its resources are absorbed by the buyer and the name usually disappears. There are several motives for takeovers. In this case, Wates may take over a close rival in the construction industry, Shepherd Construction. If the takeover is agreed, Wates will have a bigger market share since it will have absorbed one of

its competitors. This means that it will increase its revenue by over 70 per cent and have less competition in the construction market. This will make Wates stronger and more resourceful. It might be able to win bigger contracts, raise prices or be more selective when bidding for contracts, i.e. choosing those that are most lucrative. This should help the business improve its financial performance in the long term.

Comment, Question 2 (b)Questions like this require you to demonstrate knowledge, application and possibly analysis. One or two marks might be awarded for showing that you understand the nature of a takeover and identifying one reason why Wates may want to take over Shepherd Construction. Up to two application marks might be

awarded for keeping the answer in context. This answer focuses on the construction industry. Finally, credit may be given for analysis. In this case, explaining how the financial performance of Wates might be improved as a result of the takeover is an example of analysis.

2 (c) Assess two possible growth objectives for Concrete Canvas. (10 marks)

Question 2 (c), student answerMost businesses start small and then grow. In this case, Concrete Canvas grew very quickly in the three years between 2010 and 2013. Indeed, the annual growth rate was 118 per cent. Generally, businesses like to grow because the benefits can be very attractive. For example, revenues will be higher, unit costs are likely to be lower and the business will have a higher profile with a larger market share.

One specific growth objective is the ability to enjoy economies of scale. As Concrete Canvas gets larger it will be able to secure lower unit costs. Costs might fall for a number of reasons. For example, there may be purchasing economies. This means that Concrete Canvas will probably get discounts for buying larger quantities of inputs such as fabric, cement and other raw materials. The company may also exprience managerial economies. This means that it will

be cost-effective to employ specialist managers, such as accountants, marketing managers and production managers. These people will be experts in their fields and will help to raise productivity and therefore reduce average costs.

Another growth objective might be to increase market share. Concrete Canvas is a relatively new company so its market share would be low to begin with. A higher market share will eventually give Concrete Canvas more power, which means it might be able to raise price. However, it will also benefit from having a greater brand recognition. This might be because customers are more likely to see the brand advertised or on business websites. As the brand becomes stronger, Concrete Canvas may be able to charge higher prices, differentiate the product from those of other producers of concrete products, create customer loyalty in the construction industry, develop Preparing for your exams

9

an image and launch new products more easily. A business with a larger market share is also more likely to attract media attention. In this case, because the product is a fairly new innovation, the business might attract quite a lot of media attention – particularly if the product is considered unique and used throughout the whole of the construction industry.

It might be argued that the main growth objective for Concrete Canvas would be to increase market share. This

is because the company is new and needs to establish itself in the industry. Other growth objectives, such as economies of scale, might become more important once Concrete Canvas has established a solid market share. Evidence suggests that Concrete Canvas is already making very good progress in this respect. Its average annual growth rate in the last three years has been a huge 118 per cent.

Comment, Question 2 (c)You will need to demonstrate knowledge, application, analysis and evaluation. Two marks might be awarded for demonstrating knowledge, such as identifying two specific growth objectives – economies of scale and increased market share. Two marks might be awarded for application. The whole of this answer is focused on the growth objectives of Concrete Canvas and the construction industry. For example, there is the suggestion that the media might be interested in Concrete Canvas because its product is innovative. Three marks might be awarded for analysis.

One example of analysis in this answer is the explanation of how Concrete Canvas might benefit from specific economies of scale, such as purchasing economies and managerial economies. Three marks might be awarded for evaluation. An example of evaluation in this answer is the judgement suggesting which growth objective might be most important to Concrete Canvas. It is suggested that building market share is most important because the business is relatively new in the market. The judgement here is clearly supported with an argument.

2 (d) Assess the usefulness to companies like Wates and John Laing of using quantitative investment appraisal techniques before investing their money in new projects. (12 marks)

No sample answer has been provided for question 2 (d) so that you can answer it yourself, for exam practice.

2 (e) Evaluate the importance of external sources of funding, such as issuing shares, to a company like John Laing. (20 marks)

Question 2 (e), student answerFew businesses can rely entirely on internal financing to fund all business activity. Initially, external finance, which is finance from sources outside the business, may not be available. This is because business start-ups have no trading record and present too much risk for many lenders. However, once a business has survived the initial ‘uncertain’ stages of business development, external sources of finance are likely to become a realistic option. In this case, John Laing is an established business. It plans to raise £130 million by selling some shares.

Issuing shares is a common external source of finance for companies. Issuing shares can raise huge amounts of money. In this case, £130 million is being raised to help finance new overseas construction projects. Share capital is permanent capital, which means that it is never repaid by the business. Once John Laing has sold the shares and raised the £130 million, the money will never be repaid. If shareholders want their money back from buying the shares they must sell them on the stock market. This is one of the main advantages of raising money by issuing shares – there is no debt burden. However, shareholders will expect a return and John Laing will be obliged to pay dividends to shareholders when the company makes sufficient profit. Shareholders would also hope that the share price increases in the future. This means they can make a capital gain if they sell them. The share price is likely to rise if John Laing grows and performs well.

One drawback of selling shares is the initial cost of the share issue. A number of costs will be incurred, such as fees to an investment bank to process share applications. The share issue has to be underwritten (which means that the company must insure against the possibility of some shares remaining unsold) and a fee is paid to an underwriter who must buy any unsold shares. Finally, the company will also have to meet advertising and administrative costs. However, once these costs have been met, there are no further charges on the finance, except for dividends.

John Laing could have used other external sources of finance, such as bank loans, debentures, venture capital or a mortgage. However, these sources may have been considered unsuitable by John Laing. This might be because they incur costs. For example, if bank loans and mortgages are taken out, interest has to be paid. Interest charges will reduce profits. Also, any money borrowed will eventually have to be repaid. This places a financial burden on the company. The advantage of share capital is that it does not have to be paid.

Another option that may have been open to John Laing is internal finance. This usually comes from retained profit or the sale of assets. The main advantage of using internal sources is that there is no financial cost – there is no interest to pay because the money used belongs to the business. However, there is an opportunity cost when using internal sources. For example, if John Laing used retained profit to fund the

DRAFT

vii

About this book

Getting the most from your online ActiveBookThis book comes with 3 years’ access to ActiveBook* – an online, digital version of your textbook. Follow the instructions printed on the inside front cover to start using your ActiveBook.

Your ActiveBook is the perfect way to personalise your learning as you progress through your A level Business course. You can:●● access your content online, anytime, anywhere.●● use the inbuilt highlighting and annotation tools to

personalise the content and make it really relevant to you.

Highlight toolUse this to pick out key terms or topics so you are ready and prepared for revision.

Annotations toolUse this to add your own notes; for example, links to your wider reading, such as websites or other files. Or make a note to remind yourself about work that you need to do.

*for new purchases only. If this access code has already been revealed, it may no longer be valid. If you have bought this textbook secondhand, the code may already have been used by the first owner of the book.

DRAFT

viii

IntroductionThe 5th edition of Edexcel AS/A level Business does not provide a step-by-step guide to how to be ‘good at business’. There is no simple set of rules that can be applied at all times which will always be successful. However, by being analytical, rigorous and critical it may be possible to develop skills and approaches which can be useful, at certain times and in certain situations, when making business decisions. It is possible that different approaches will be used by different people in business and there may be disagreement as to which approach to take.

Business is integrated and different areas of business are interdependent. There are links, for example, between:

●● what is being produced and the funds available to pay for it (production and finance);

●● the selling of the product and ethical considerations (marketing and ethics);

●● the type of business and many aspects of its operation.

Being aware of these aspects of business will help us to understand how and why business decisions are made, and how they affect a variety of people, both within and outside the business. The aim of the 5th edition of Business is to help those studying Edexcel AS Level and A Level Business to understand business decisions and to be analytical, rigorous and critical in their business thinking. A number of features are included in the book which we believe will help this task – see About this book, page iv.

Comprehensive course coverage

This book covers the material found in all four themes of the Edexcel A level Business specification:

●● Theme 1 Marketing and people

●● Theme 2 Managing business activities

●● Theme 3 Business decisions and strategy

●● Theme 4 Global business

By covering all four themes of the specification in detail, Business takes students through the course, ensuring they gain all the skills and understanding they need to be able to be successful in their exams. Units in Theme 1 and Theme 2 allow students to gain an in-depth understanding of core business concepts, with the content in Theme 3 and Theme 4 building on these topics. Theme 3 and Theme 4 extend breadth and depth of knowledge through focusing on business strategy and decisions, and exploring the global context in which modern businesses operate. This focus on developing a breadth and depth of knowledge across the course will allow students to develop the synopticity needed for their final paper.

DRAFT