GCSE Business New Specification Comparison - …s3-eu-west-1.amazonaws.com/tutor2u-media/subjects/... · GCSE Business New Specification ... This document provides an overview of

GCSE Business

New Specification Briefing

An overview of the three main exam board specifications

for GCSE Business (for first teaching from September

2017)

Author: tutor2u GCSE Business Team

GCSE Business Specification Briefing

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tutor2u & the new GCSE Business Specifications

The tutor2u GCSE Business team is already working hard on a comprehensive series of

teaching & learning resources to support the new specifications. We anticipate that these will

be available early in 2017 and certainly well before you dive into the detailed planning for Sept

2017 and beyond. Our resources will include:

Digital Study Companions for each Unit and Theme

Lesson and Topic PowerPoints

Key Topic Worksheets and Case Studies

Unit Assessments and other Exam Practice Material

We highly recommend that you defer any commitment to buying expensive textbooks until

you have taken a look at the tutor2u resources for new GCSE Business.

In addition, the tutor2u team will be providing comprehensive webinar and CPD support for all

colleagues preparing to deliver the new specifications.

Please make sure you are signed up for a my tutor2u account to receive resource updates +

join one of our GCSE Business Teacher Groups on Facebook:

AQA GCSE Business Teacher Group

Edexcel GCSE Business Teacher Group

http://www.tutor2u.net/

http://www.tutor2u.net/mytutor2u

https://www.facebook.com/groups/aqagcsebusinessteachers/

https://www.facebook.com/groups/aqagcsebusinessteachers/

https://www.facebook.com/groups/edexcelgcsebusinessteachers/

https://www.facebook.com/groups/edexcelgcsebusinessteachers/


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Introduction & Overview

The specifications for the new GCSE Business qualification (for first teaching from September

2017) were accredited during the summer/early September 2016.

This document provides an overview of the new GCSE Business specifications for AQA and

Pearson Edexcel and OCR.

Background to the new GCSE in Business

All awarding bodies were instructed to revise their GCSE specifications in Business by the

Department for Education. This means that there are certain elements/topic areas that must

be included in every business specification, regardless of the specific exam board. The subject

content sets out the knowledge, understanding and skills common to all GCSE specifications in

business. The DfE guidance on assessment objectives as well as content, ensures progression

from key stage 3 national curriculum requirements, and the possibility for progression to A

level. Details of this framework is below:

Apply knowledge and understanding to different business contexts. These include businesses ranging from small enterprises to large multinationals and businesses operating in local, national and global contexts

The interdependent nature of business activity, influences on business, business operations, finance, marketing and human resources, and how these interdependencies underpin business decision making

How different business context affect business decisions

The use and limitation of quantitative and qualitative data in making business decisions

Develop problem solving and decision making skills relevant to business

Investigate, analyse and evaluate business opportunities and issues

Make justified decisions using both qualitative and quantitative data, including its selection of, interpretation, analysis and evaluation, and the application of appropriate quantitative skills

Use business terminology to identify and explain business activity

Apply business concepts to familiar and unfamiliar contexts

Quantitative skills:

Calculations in a business context, including:

percentages and percentage changes

averages

revenue, costs and profit

gross profit margin and net profit margin ratios

average rate of return

cash-flow forecasts, including total costs, total revenue and net cash flow

Interpretation

information from graphs and charts

profitability ratios (gross profit margin and net profit margin)

financial data, including profit and loss, average rate of return and cash-flow forecasts

marketing data, including market research data



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market data, including market share, changes in costs and changes in prices

Which exam boards are currently most popular for GCSE Business?

Candidate entry numbers for the main exam boards in summer 2016 were:

Candidates Share

Board Specification Number %

Edexcel Business Studies (Full) 35,121 33.6%

AQA Business Studies (Full) 23,714 22.7%

OCR Business Studies (Full) 11,975 11.5%

Edexcel Applied Business (Double Award) 8,103 7.8%

AQA Business & Communication Systems (Full) 7,705 7.4%

WJEC Business Studies (Full) 5,268 5.0%

Edexcel Business Studies & Econ (Full) 4,146 4.0%

OCR Applied Business (Double Award) 2,598 2.5%

Edexcel Business & Communication Systems (Full) 2,010 1.9%

WJEC Applied Business (Double Award) 1,417 1.4%

OCR Business & Communication Systems (Full) 1,239 1.2%

AQA Applied Business (Double Award) 1,227 1.2%

Total 104,523 100.0%

Key Point Summary

AQA key points:

- Introduction of MCQs - Leads well into the A level - Longer time allowed in the exam to answer the same total number of marks as Edexcel

(this is key, as timing is a real issue at GCSE) - Case studies, according to the specimens, are longer for AQA, perhaps to indicate extra

time reading – KEY POINT – English skills need to be strong - Each case study is split into two sections; students will read one part and then answer a

series of questions based on that section – helps with issue of literacy - Appears to be more potential/topic areas for quantitative skills to be assessed - Clear split in terms of which functional areas appear on which paper, making it easier for

students to prepare for the terminal exams – finance only appears on one paper which is together with marketing, to avoid students being “put off” by the finance topics and traditionally students like marketing, why these two functional areas are coupled together

- Quant skills can be tested in any area e.g. staff discount calculation linked to HR; students must not think that because the finance section is only in one exam, there will not be calculation or interpretation of quant skills in other parts of the paper

- A mixture of different type/size businesses will appear in each exam i.e. small businesses will not just appear in paper 1 and large businesses will not just appear in paper 2

- Moves away from looking at functional areas in isolation and promotes the integrated nature of business



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- Lots of new and challenging topics: influences on business is consistent across both papers, economic aspects new and more emphasis on ethical/environmental influences on business/Boston Matrix

- The new course aspires to link business theory to real life content, to encourage students to listen to the business news

- Will attempt to use real life businesses in assessment (dependent on copyright)

Edexcel key points:

- Shorter exams compared to AQA – 90 mins compared to 105 mins, but same amount of marks for AQA and Edexcel

- Consistent command words used across both papers - Case studies are written on one page; no split of text like AQA; case studies are shorter –

not so much reading - Appear to be fewer places for quantitative skills to be assessed - The specification is comparable with the legacy; recognise the structure of the old spec in

the new spec; so can make the transition seamless; new units are investigating small businesses (theme 1) and building a business (theme 2) old units are Introduction to small business (unit 1) and building a business (unit 3)

- Businesses used are “real businesses” in the exam and will focus on contemporary business issues

- Questions become increasingly challenging as candidates move through the papers - Candidates can easily be prepared for the exams as theme 1 assessed in paper 1 and

theme 2 assessed in paper 2 - Small businesses assessed in paper 1, focus on looking at business as an entrepreneur,

whereas larger businesses (how a business develops past the start-up phase) are assessed in paper 2; candidates may be better prepared for the exam if one size of business is in each exam

OCR Key Points:

Introduction of MCQ’s in both papers

Exams are 90 minutes, same as Edexcel compared with 105 minutes for AQA

Mark allocation for per paper is 80 marks compared with AQA 105 marks and Edexcel 90 marks for both papers

Consistent command words across both papers.

Three pieces of short text stimulus material in each paper -all based on real businesses.

The specification more streamlined and coherent compared with the OCR legacy. The points to include section on the specification adds clarity. Re-organisation and addition of new content has led to amplification of the finance (previously included in production) and the operations sections particularly.

Less additional content compared to other boards. Easier transition from the legacy to the new specification perhaps?

Certainly appears “lighter” with a number of topic omissions that are present in both the AQA and Edexcel specifications. E.g. product portfolio analysis and product life cycle are not included. For break-even analysis the OCR specification simply requires students to understand “the concept of break-even”, do a “simple calculation of break-even quantity” and understand “the usefulness of break-even in business decision making”. No mention of identifying the breakeven level of output and margin of safety from a chart. Does this mean this is easier to deliver or simply less robust?



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Interesting and very useful to see exemplar answers included as part of the mark scheme. Useful annotation of the assessment objectives throughout.

All boards:

- Consistent papers in terms of marks, length and style for each exam board - Two case studies will appear in each paper for AQA and Edexcel, OCR have 3. - Levels based mark scheme: examiners will use a best fit approach to decide which level

most closely describes the quality of the answer - 9-1 grading system - AOs weighting the same across exam boards:

AO1 35% AO2 35% AO3 30%

- No controlled assessment 100% exam - Introduction of quantitative skills (calculation and interpretation) minimum of 10% subject

marks allocated to these skills (KS3 level) - More emphasis on the inter-related nature of business activity - Increased breadth and depth – can be seen by the new content list and very little removal

of topics, especially AQA - More content to cover, but with removal of the controlled assessment, there is time to

deliver this - Without controlled assessment, there is the introduction of the 12 mark questions for AQA

& Edexcel and 9 marks for OCR exam boards, encouraging the assessment of extended writing in the exam

- Many materials/resources that teachers have developed already for legacy specifications will be valid for the new specs – the choice may be decided by which exam board centres follow already?

- Key to choice is the board that students already study at A level (if applicable), as the transition from GCSE to A level will be easier if exam boards are consistent – so in some respects is the choice already made for centres if they operate at KS5?

-



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Appendix 1: Unit Overview

AQA Pearson Edexcel OCR

Number of Units 2 2 2

Unit 1 Title & Code

Paper 1: Influences of operations and HRM on business activity – 8132/1

Paper 1: Investigating small business Paper 1: Business activity, marketing and people

Unit 2 Title & Code

Paper 2: Influences of marketing and finance on business activity – 8132/2

Paper 2: Building a business Paper 2: Operations, finance and influences on business

Unit 1 Paper: Content, Timing & Format

What is assessed:

Business in the real world

Influences on business

Business operations

Human resources

105 minutes: 90 marks/50% of GCSE

Section A: mixture of MCQs and short answer questions (20 marks)

Section B: one case study/data response stimuli with questions (approximately 34 marks)

Section C: one case study/data response stimuli with questions (approximately 36 marks)

What is assessed:

Theme 1 – Investigating small business

90 minutes: 90 marks

Section A mixture of MCQs and short answer questions (35 Marks)

Section B: short answer and extended-writing questions based on a business context (30 Marks)

Section C: short answer and extended-writing questions based on a business context (25 marks)

What is assessed: Business 1

Business Activity

Marketing

People


Section A MCQ (15 marks)

Section B Mixture of short, medium and extend response questions using 3 case study/data response stimuli. (65 Marks)



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Unit 2 Paper: Content, Timing & Format

What is assessed:

- Business in the real world

- Influences on business

- Marketing

- Finance


Section A: mixture of MCQs and short answer questions (20 marks)

Section B: one case study/data response stimuli with questions (approximately 34 marks)

Section C: one case study/data response stimuli with questions (approximately 36 marks)

What is assessed: Spec

Theme 2 – Building a business


Section A mixture of MCQs and short answer questions (35 Marks)

Section B:) short answer and extended-writing questions based on a business context (30 Marks)

Section C: short answer and extended-writing questions based on a business context : (25 marks)

What is assessed: Business 2

Operations

Finance

Influences on Business

Interdependent nature of business


Section A MCQ’s (15 marks)

Section B short, medium and extend response questions using 3 case study/data response stimuli. (65 Marks)



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Appendix 2: Specification Content Structure


The AQA GCSE specification is organised into 6 sections:

The Pearson Edexcel GCSE specification is split into two “Themes”, each with separate sub-sections.

The OCR GCSE specification is split into two sections, Business 1 and Business 2 with separate sub-sections

3.1 Business in the real world

3.2 Influences on business

3.3 Business operations

3.4 Human resources

3.5 Marketing

3.6 Finance

Theme 1: Investigating small business

1.1 Enterprise and entrepreneurship

1.2 Spotting a business opportunity

1.3 Putting a business idea into practice

1.4 Making the business effective

1.5 Understanding external influences on business

Theme 2: Building the business

2.1 Growing the business

2.2 Making marketing decisions

2.3 Making operational decisions

2.4 Making financial decisions

2.5 Making human resource decisions

Business 1, business activity, marketing and people

1.Business activity

1.1 The role of business enterprise and entrepreneurship

1.2 Business planning

1.3 Business ownership

1.4 Business aims and objectives

1.5 Stakeholders in business

1.6 Business growth

2 Marketing

2.1 The role of marketing

2.2 Market research

2.3 Market segmentation

2.4 The marketing mix

3. People

3.1 The role of HR

3.2 Organisational structures and different ways of working

3.3 Communication in business

3.4 Recruitment and Selection

3.6 Training and development

3.7 Employment law

Business 2: Operations, finance and influences on business



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4.Operations

4.1 Production processes

4.2 Quality of goods and service

4.3 Consumer law

4.4 Business location

4.5 Working with suppliers

5 Finance

5.1 The role of the finance function

5.2 Sources of finance

5.3 Revenues, cost and profit and loss

5.4 Breakeven

5.5 Cash Flow

6 Influences on business

6.1 Ethical and environmental considerations

6.2 The economic climate

6.3 Globalisation

7 The interdependent nature of business



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Appendix 3: What is new to each exam board? Updated

New elements of specification content for each exam board compared with the existing GCSE legacy specifications are summarised below:


Factors of production

Opportunity cost

Primary, secondary and tertiary sectors of production

Characteristics of an entrepreneur

Not for profit organisations

Fixed, variable and total costs (referred to but not named in the legacy spec)

Economies and diseconomies of scale (referred to but not named in the legacy spec)

Calculate and interpret average unit costs

Digital technology/communication

Increased emphasis on ethical and environmental considerations incl. sustainability

The economic climate on business; interest rates, level of employment, consumer spending

Globalisation including exchange rates

The role of procurement: managing stock - just-in-case

Logistics & factors affecting choice of suppliers

Supply chain management

Sales process

Social media

Contracts of employment

Job share/zero hour contracts

Types of segmentation

Market size/market share

Boston Matrix

M-commerce

Difference between cash and profit

Average rate of return

Break-even

Why new business ideas come about

The use of social media and reliability of data in market research

The role and importance of a business plan

Technology and business

Business growth

The impact of globalisation and how businesses compete internationally

The role of procurement and the sales process

Gross profit margin/net profit margin

Average rate of return

Understanding business performance

Different ways of working

Different job roles and responsibilities

Effective training and development

Interpretation of market data

The role of human resources

Difference between cash and profit

Calculations of profit and loss – gross and net.

Calculation and interpretation of profitability ratios – gross profit margin, net profit margin

ARR

Influence of technology on production and impact on business

Quality of goods and services – methods and importance

Role of procurement and the sales process

Impact of logistical and supply decisions on business



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Appendix 4: What is gone from each exam board?

Some key elements of legacy specification content that have been removed by each exam board are summarised below:


Market/product niche

Sources and types of advice available to a small business

Factors that determine the level of wages/salaries paid to employees

Current and acid test ratios

Appraisal/performance review system

Thinking creatively, lateral thinking and deliberate creativity

What questions do entrepreneurs ask?

Protecting ideas through patents and copyright

The principle of calculated risk and seeing mistakes as part of the process

Other important enterprise skills

Start-up legal and tax issues

Market demand and supply

Maslow’s Hierarchy of Needs

Income distribution internationally and subsidies

Primary, Secondary, Tertiary Sectors

Social Enterprise

SWOT analysis

Adding value

Trade Unions

Calculate changes in employee remuneration



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Appendix 5: What is distinctive to each exam board?

Unique elements of each specification (i.e. teaching content not featured by the other exam board) is summarised below:


Not-for-profit organisations

M-commerce

Factors of production

Opportunity cost

Primary, secondary, tertiary sectors

Economies and diseconomies of scale

Lean production

Just- in-case

Factors affecting the choice of suppliers

TQM

Customer service

Contracts of employment

Induction training

Boston Matrix

Statement of financial position

Interest

Crowdfunding/venture capital

Inflation

Stock market flotation

Tariffs/trade blocs

Batch production

Bar gate stock graphs

Business Communication

Interdependent nature of business as a sub-section.



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Appendix 6: OFQUAL Core Subject Content

The mandatory content that must be included by all awarding bodies in the GCSE Business

specifications is as follows:

Area of Study Amplification

Business activity The purpose of business activity, the role of business enterprise and entrepreneurship, and the dynamic nature of business • the competitive environment and the impact of risk and reward on business activity • the purpose of planning business activity, including the role and importance of a business plan • the factors influencing business location, including proximity to market, labour and materials • the types of business ownership, including business start-ups and the concept of limited liability • business aims and objectives, how and why they differ between businesses, and how and why they change as businesses evolve • methods of business growth, including organic and external growth • business stakeholders, including owners, employees and customers; their different objectives, how they are affected by business activity and how they affect business • the interdependent nature of business operations, finance, marketing and human resources within a business context

Influences on business

The importance of external influences on business and how businesses change in response to these influences, including:

how technology, including e-commerce and digital communication, influences business activity

the impact of ethical and environmental considerations on businesses, including sustainability

the impact of the economic climate on businesses, including changing levels of consumer income and unemployment

the impact of globalisation on businesses, including how businesses compete internationally

the impact of legislation on businesses, including employment law and consumer law

Business operations

What business operations involve, their role within the production of goods and the provision of services, and how they influence business activity, including:

the impact of different types of production processes on businesses

the role of procurement and the impact of logistical and supply decisions on businesses

the concept of quality and its importance to a business, including the production of goods and the provision of services

the sales process and the importance to businesses of providing good customer service, including product knowledge, customer engagement and post-sales service



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Finance The purpose of the finance function, its role within business and how it influences business activity, including:

what different sources of business finance are available and their suitability for new and established businesses

the concept of revenue, costs, profit and loss, including break even and gross and net profit ratios

the importance of cash to a business, the difference between cash and profit, and cash-flow forecasting

the use of financial information in understanding business performance and making business decisions

Marketing The purpose of marketing, its role within business and how it influences business activity, including:

the importance to a business of identifying and understanding its customers

how businesses use segmentation to target customers

the purpose and methods of market research, and the use of qualitative and quantitative market research data

the marketing mix and the importance of each of the four elements – price, product, promotion and place – and how they work together

how the marketing mix is used to inform and implement business decisions

Human Resources The purpose of human resources, its role within business and how it influences business activity, including:

how and why businesses have different organisational structures, including the importance of effective communication, different job roles and responsibilities, and different ways of working

how businesses recruit people, including methods used to meet different business needs

the importance of retaining and motivating employees and how businesses achieve this, including financial and non-financial methods

how and why businesses train and develop their employees


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GCSE Business New Specification Comparison - …s3-eu-west-1.amazonaws.com/tutor2u-media/subjects/... · GCSE Business New Specification ... This document provides an overview of