Promoting active learning

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GCSE Business Studies Revision Foundation
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• Explain the difference between public/private
  sector, categorise businesses in each one
• Explain each type of ownership in terms of
  owners, control, sources of finance, liability,
  use of profits and how these affect choice of
  ownership (sole trader, partnerships, limited
  companies, franchises)

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• Explain the type of objectives of public sector
  organisations (nationalised industries, public
  services and public corporation)
• Define privatisation and explain the pros/cons

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• Define the term stakeholders identify the
  different stakeholder groups and their different
  objectives

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• Define and explain the various business
  objectives wealth creation, survival, market
  share, profitability, and growth, providing a
  service, using examples from business world.

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• JUDJING SUCCESS-
• Define and explain the various factors that firms
  judge their success against (size, turnover,
  shareholders, no of employees, consumer
  satisfaction)

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• Describe and give examples of the primary,
  secondary, tertiary stages of production
• Explain how the three stages of production add
  value based on a chain of production

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• Explain how the three stages of production add
  value based on a chain of production
• Advertising
• Branding
• Price
• Ethical policy (Coop Bank)
• Quality of products
• Differentiation

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• Identify and explain the internal factors that
  can influence the location decision of
  businesses private costs and benefits
• Identify and explain the external factors that
  can influence the location decision of
  businesses social costs and benefits,
  production, competition, availability of
  workforce, local environment constraints and
  opportunities

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• Government and EU influences of business activity
  and objectives
• Identify and explain the ways in which the
  Government and the EU can influence (provide
  opportunities for, or constrain) businesses
  employment, growth and regional policy
• EU constraints public expenditure, taxation,
  tariff/quotas

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HOW WOULD THE UKs ECONOMICS CHANGE? 1. A single
currency (the Euro) would replace the . The Euro
would be used throughout Europe 2. There would be
no exchange rates between Euro countries. This is
because the , Franc would no longer exist 3. A
central interest rate for the whole of Europe.
The UK would no longer have its own interest
rate ADVANTAGES DISADVANTAGES for joining the
Euro No need to change money into foreign
currencies. This will save time and money. This
is good for businesses and tourists. The UK
government will not be able to change interest
rates in order to manage our economy. It is
easier to compare prices in different countries.
This is because all figures are quoted in Euros.
Businesses have to change their tills and payment
systems. Reduced exchange rate uncertainty.
International trade becomes easier because
exchange rates cant effect prices. Businesses
have to change their tills and payment systems.
More foreign businesses may choose to set up in
the UK if we are using the same currency as the
rest of europe. At present the UK has not joined
EMU although it may do in the future The UK
trades for Euros when trading with its European
partners. Therefore changes in the exchange rate
between the and Euro are very important.
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• Define and explain the influences that surround
  business decisions social (pressure groups,
  changing attitudes), economic (taxation, interest
  rates, currency changes), environmental
  (legislation), technological (internet,
  e-commerce)

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• Define and explain the roles of business
  functions (production, marketing, personnel,
  finance), identifying the main responsibilities
  in each one
• Explain the links between the business functions
  (inter-dependence)
• Define and explain
• chain of command,
• Hierarchy
• delegation
• span of control

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• Explain the benefits of good communication, the
  effects of poor communication and the effect of
  both on the management of a business. Provide
  examples
• Identify different methods of communication.
  Explain how methods of communication have
  developed in changing business environment paper
  to electronic, people and organisations (internal
  external, formal informal)

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• Identify the recruitment procedure and explain
  internal and external recruitment
• Explain the purpose of job descriptions, job
  specifications, advertising and interviews.
• Define induction and on-the-job and off-the-job
  training. Explain their purposes and benefits
• Define and explain the purpose and benefits of
  government schemes.
• Assess the costs and benefits of training to for
  the employer and employee.

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• Motivation
• Motivation in practice is all about, how firms
  get the most out of their employees at work. The
  terms explained below are just some of ways in
  which business motivates 'in practice'
• Job enlargement - means increasing the scope of
  the job. Could be increasing the workload (job
  loading) more of the same or giving people more
  responsibility (job enrichment).
• Job enrichment - increasing the amount of
  responsibilities workers have. Giving workers a
  range of responsibilities and tasks, a complete
  unit of work, responsibility for quality and
  self-checking and opportunity to show their
  responsibility.
• Job rotation - proving a range of activities to
  decrease the boredom.

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Motivation in practice cont.. Team working -
the attempt to maximise worker satisfaction by
organising employees into teams. Characteristics
of teams might include multi-skilling,
self-checking, autonomous worker groups (Kaizen,
quality).   Empowerment - gives workers the
authority to carry out the task, how the want to
carry that task out and what the task should be.
By empowering workers they are given more control
over their working lives and greater
responsibility. This method involves delegating
power away, it is therefore not such a good idea
if control is important.
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• Motivation Financial and non-financial
  incentives
• Financial Incentives
• Piecework
• Workers paid per unit. Piecework encourages
  workers to produce more to meet targets and
  therefore might result in poor quality products.
  This form of payment might therefore not suit
  everyone and is not conducive to teamwork.
• Performance-related pay
• People's pay is related to how well they perform
  in their jobs. Often this is related to appraisal
  system. People might be awarded anywhere between
  0-7 depending on how well they've performed and
  met their targets. This method of pay could be
  open to abuse by managers and how can you measure
  the performance of some workers e.g. teachers,
  policemen, nurses etc.?

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Production Define and explain economies/
diseconomies of scale (bureaucracy, low morale,
poor communication) Describe the effects of
economies/diseconomies of scale on production
(inefficiency/efficiency)
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• ECONOMIES OF SCALE
• Are the factors that cause average cost to be
  lower in large-scale operations than in small
  scale ones
• Specialisation
• with a larger workforce it is possible to divide
  up the work and recruit and train individuals who
  exactly match the requirements. They can then
  become specialists.
• Technical
• firms benefit from being able to use machinery.
  Some items are only worthwhile being purchased
  and used when the fixed costs can be spread over
  a larger output.
• Purchasing
• As firms grow they can benefit from being able to
  buy in bulk.
•  

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• Production
• Explain and give examples of the methods of
  production (job/batch/flow)
• Define and explain division of labour,
  specialisation
• Explain lean production and its relevance to an
  increase in productivity
• Explain JIT, identifying the pros/cons

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• Finance
• Identify and explain business need of finance
  start-up, expansion, cash flow problems
• Define revenue expenditure and capital
  expenditure
• Identify sources of finance internal
  (retained profit, working capital, owners
  capital) and external (overdraft, loans,
  factoring, leasing, hire purchase, mortgage,
  government/EU grants, venture capital)
• Identify and apply appropriate criteria for
  choice of finance e.g. time, amount, type of
  business, control, risk, cost
• Identify and explain the advantages and
  disadvantages of each source and what each source
  is used for

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• Finance
• Define and give examples of direct/variable costs
  and fixed/overhead costs
• Firms must keep track of their costs to
  compare costs with profits in order to calculate
  profits see if they are on budget select and
  appraise courses of action provide information
  on pricing decisions
• Cost can either be fixed or variable, direct or
  indirect.
• Variable costs - vary directly with output e.g.
  raw materials, piece rates or direct labour.
• Fixed costs - stay constant no matter what the
  level of output e.g. rent, loan repayments, and
  management salaries.

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• Define break-even level of sales
• Explain the application of break-even analysis in
  decision making (determine level of sales
  required, securing finance, set targets)
• Define and calculate break-even using contribution

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• CALCULATING PROFITProfit TR - TC TR - (FC
  TVC) (P x Q) - (FC (VC per unit x Q))
• OR
• To increase profits, firms can either reduce
  costs, or increase their sales revenue
• BREAK--EVEN ANALYSISCalculating Break-even
• Contribution P - VC (per unit)Break-even
  (units) FC/contribution
• Anything over and above break-even, once the
  variable costs per unit have been covered is
  profit.

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• Finance
• Construct a cash flow forecast and interpret,
  identify cash flow problems
• Explain possible solutions to cash flow problems
• Define and explain liquidity

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• CASH FLOW FORECAST
• Firms need to provide detailed estimates of a
  firm's future cash inflows and outflows per month
  - from this the cash flow forecast can be
  calculated.
• Cash flow forecasts can be used for
•       planning and control
•       assessing the financial results of plans
  before making the definite commitments - an
  essential management tool for business planning
•       shows possible future needs to raise more
  capital which might take several months to
  arrange helps spot where resources are under used
  e.g. may detect an accumulation of cash

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• Reasons for cash flow problems
•       overtrading
•       investing too much in fixed assets
•       stockpiling
•       allowing too much credit
•       over borrowing
•       unforeseen expenditure
•       unexpected changes in demand
•       seasonal factors/external factors

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• MARKETS AND MARKETING
• Define markets (buyers and sellers trade goods
  and services) and marketing (2-way communication
  between buyers and sellers)
• Identify and explain consumer needs and wants
  (changing and infinite)
• Define and explain product and market
  orientated businesses
• Define competition within markets (number of
  firms and how they compete)
• Identify and explain the main objectives of
  marketing
• Identify and explain the functions of the
  marketing department market segmentation, market
  research, marketing mix

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• Define and explain the process of market
  segmentation
• (age, gender, race, religion, income, geographic
  location, socio-economic group, product use)
• Define and explain the use of market research
• Explain and identify methods of primary (field)
  research questionnaires, surveys, interviews,
  consumer panels, observation

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• Explain and identify methods of secondary (desk)
  research text-books, internet, trade and
  employers associations, specialist journals,
  research reports, newspapers, government reports
  and statistics, media reports, market research
  reports
• Explain advantages and disadvantages of primary
  and secondary research

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• Marketing Mix
• Explain the use of the marketing mix as a
  strategy to achieve the marketing objectives
• Explain the importance of "the right product" and
  what makes a product successful (design,
  branding, image, packaging, cost relative to
  price originality, product mix)

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• Marketing Mix
• Explain the importance of price as a marketing
  strategy
• Identify and apply the following pricing
  strategies to the various circumstances in which
  they would be used supply/demand (price
  determination in a free market) cost plus,
  penetration, skimming, competition, promotional

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• Marketing Mix
• Define and explain importance of promotion as
  part of the marketing mix
• Identify the aims of promotion (informative,
  increase sales, improve company image, improve
  brand image)
• Identify and explain above the line methods of
  promotion and their application (pros and cons)
  TV, radio, cinema, newspapers, magazines,
  posters, internet advertising

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Picture Coca-cola donating money to charity

• Marketing Mix
• Identify and explain below the line methods of
  promotion and their application (pros and cons)
  price reductions, gifts, point-of-sale, after
  sales, free samples, competitions
• Define and explain public relations and its
  purposes

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• Marketing Mix
• Explain the role of place in the marketing mix
• Define and explain channels of distribution
  traditional, modern and direct
• Identify the suitability of each channel
• Explain the advantages and disadvantages of each
  channel
• Identify methods of transporting goods road,
  rail, sea, air, pipelines

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• Marketing Mix
• Define and explain each stage of the product
  lifecycle
• Identify and explain possible methods of
  extending a products lifecycle
• Apply knowledge of the marketing mix to the
  various stages of the product lifecycle