Y12 Business Studies - Unit 2 Interactive Specification

8/9/2019 Y12 Business Studies - Unit 2 Interactive Specification

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AQA - BUSS2tutor2u Business Blog Specification Map

Tutor2u Limited 2010

FinanceThis section introduces candidates to the importance of the management of finance. Candidates

should understand that financial measures can be used to indicate how well a business is managed and

should understand actions that can be taken to improve financial performance. Candidates will be

expected to carry out calculations and to be able to interpret their results. This section builds upon

Financial Planning in Unit One.

Specification Amplification

UsingBudgets

the benefits and drawbacks of usingbudgets

the calculation and interpretation offavourable and adversevariances

usingvariance analysisto inform decision

making.

Candidates should be familiar with income,

expenditure and profit budgets. They will not be

required to analyse budgets by price and volume,

nor to use flexible budgets.

ImprovingCash Flow

causes ofcash flow problems

methods ofimproving cash flow

Candidates should be familiar with a range of

techniques to improve cash flow including:

overdraftsandshort-term loans,factoringand sale

orsale and leasebackof assets.

Measuring and IncreasingProfit

the calculation and understanding ofnet profit

margins

the calculation and understanding ofreturn on

capital

methods of improvingprofits/profitability

the distinction between cash and profit.

Candidates do not need any understanding of the

balance sheet or income statements. Candidates

do not need any knowledge of capital employed.Return on capital relates to the percentage return

on a capital investment. Methods ofimproving

profitsshould includecost reductionandprice rises

but also an understanding of the possible

implications of these decisions.

People in Business

This section considers the issues that managers face in relation to managing the human element to

make a business more effective. Candidates should appreciate the value of these techniques in tactical

decision- making.


Improving Organisational Structures

key elements oforganisational structure

workforce roles

howorganisational structureaffects business

performance.

Key elements should include:

levels ofhierarchy/spans of control

workloads/job allocation

delegation

communicationflows.

Theworkforce rolesinclude: supervisor, team

leader, manager and director.

Measuring the Effectiveness of theWorkforce methods of measuring workforce performance.

Candidates should be able to calculate andinterpret measures such aslabour productivityand
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labour turnover.

Developing an Effective Workforce:Recruitment,

Selection,Training

therecruitmentprocess

internal and externalrecruitment

selecting the bestemployees

howrecruitmentandselectioncan improve a

workforce

methods oftraining.

Types of recruitment and the recruitment process

should include the stages from identifying avacancy to receipt of applications.

Candidates should understand benefits and

drawbacks ofinternal recruitmentandexternal

recruitmentandtraining.

Methods of selection include:interviews,

assessment centres, and tests. Candidates should

also be familiar withperson specificationsandjob

descriptions.

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

the-joband induction.

Developing and Retaining an Effective

Workforce:

MotivatingEmployees

using financial methods to motivate employees

improvingjob design

empoweringemployees

working in teams

theories of motivation.

Specific theories ofmotivationwill not be

examined. Candidates should use any relevant

theories to support their arguments to consider

influences on motivation.

Methods of improving job design should include:

enrichmentandenlargement.

Candidates should understand the links between

theorganisational structureand the motivational

techniques available to managers.

Operations Management

This section should promote understanding of the importance of operational decisions in managing a

business in tertiary, secondary and primary sectors. Candidates should understand how operations

management 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 managingcapacity utilisation

operational issues dealing withnon-standard

ordersand matchingproductionanddemand.

Operational targets relate tounit costs,qualityand

capacity utilisation. Candidates should be able to

calculate and interpretunit costs.

Managingoutputto match orders should include:

use ofovertime, hiringtemporaryandpart-time

staff,rationalisationandsub-contractingand the

importance of managingstocksefficiently.

Developing Effective Operations:Quality

the meaning ofquality

the distinction betweenquality controland

quality assurance

systems ofquality assurance

quality standards.

Systems of quality should include Total Quality

Management (TQM).

Candidates should be aware of the issues involved

and the possible benefits of introducing and

managing quality systems and/or achieving quality

standards.

Issues in introducing and managing quality include
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costs and other implications of training and the

possibility of disruption to production.

The importance of quality might be judged throughits impact on sales, its possible use as aUnique

Selling Point (USP), the flexibility it can give in

pricing decisionsand costs.

Developing Effective Operations:

Customer Service

methods of meetingcustomer expectations

monitoring and improvingcustomer service

the benefits of high levels ofcustomer service.

Methods of meeting customer expectations should

include:market research,training, use ofquality

assuranceand control,quality standards.

Candidates should understand the ways in which a

range of different businesses usecustomer service

to improve their performance.

Working withSuppliers choosing effective suppliers

the role that suppliers play in improving

operational performance.

Factors affecting choice of and relationship withsuppliers should include:prices,payment terms,

quality,capacity,reliabilityandflexibility.

Using Technology in Operations

types oftechnologyin operations management

issues in introducing and updatingtechnology.

Types of technology should include:robotics,

automationsuch asstock control, communications

and design technology.

Candidates should be aware of the benefits of

technology such as: reducing costs, improving

quality, reducingwasteand increasingproductivity.

Marketing and the Competitive Environment

In this section candidates should understand the importance of marketing to businesses and issues

affecting their competitiveness. The study of marketing at AS Level should focus on using the results of

market 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

nicheandmass marketing.

Candidates should be aware of the benefits and

drawbacks ofnicheandmass marketing.

Candidates should be aware of consumer

marketing andbusiness to businessmarketing.

Designing an EffectiveMarketing Mix

influences on themarketing mix

the importance of an integratedmarketing

mix.

The influences on themarketing mixmay be wide

ranging encompassing, finance, technology and

market research.

Using the Marketing Mix:Product

influences on the development ofnew goods

and services

unique selling points(or propositions)

product portfolioanalysis

product life cycle.

Influences on the development of new goods and

services include:technology, competitors actions

and theentrepreneurialskills of managers and

owners.

Product portfolio analysis should include the

Boston Matrix.
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4/4



Using the Marketing Mix:Promotion

elements of thepromotional mix

influences on the choice ofpromotional mix.

The promotional mix includes factors such as:PR,

branding,merchandising,sales promotions,direct

sellingandadvertising.

Using the Marketing Mix:Pricing

pricing strategies

pricing tactics

influences onpricing decisions.

Pricing strategies should include:price skimming

andpenetration,price leadersandprice takers.

Pricing tactics should include:loss leadersand

psychological pricing.

Influences on pricing decisions should include the

price elasticity of demand. Candidates must

understand the significance, determinants and the

problems of measurement ofprice elasticity.

Candidates should be able to use the price

elasticity coefficient to show the effects of pricechanges on total revenue. However, candidates will

not be required to calculate the coefficient of price

elasticity.

Using the Marketing Mix:Place

choosing appropriate outlets/distributors

types ofdistribution channels.

Marketing and Competitiveness

the possible impacts of market conditions and

degree ofcompetition determinants ofcompetitiveness

methods of improvingcompetitiveness.

Candidates should be aware of a range of markets

with differing numbers of businesses and degrees

of competition such as one dominant business or

many smaller businesses. They should consider

how this impacts on the design of the marketing

mix.

Methods of improving competitiveness include

marketing and non-marketing methods such as

reducing costs, improvingqualityand stafftraining.
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Documents

Y12 Business Studies - Unit 2 Interactive Specification