BUSINESS; AIMS, TYPES AND ORGANISATION by HC120918162519

VIEWS: 6 PAGES: 14

									       BUSINESS; AIMS, TYPES AND ORGANISATION

This section of the specification requires candidates to develop a knowledge and
understanding of the aims of businesses. They must show an understanding of the
different types of businesses, how they are organised and the ways by which they may
grow. Candidates should also be able to identify and explain the resources and assistance
available to a business

Business Context.

Candidates should be able to;

      Identify and explain the two main sectors - public and private – and recognise that
       there are mixed economies within Great Britain and Ireland;

      Distinguish between the main types of production – primary, secondary and
       tertiary;

      Examine the importance of the private sector to the Northern Ireland economy,
       particularly the significance of small and medium size enterprises (SME);

      Demonstrate a knowledge and understanding of the different groups involved in
       business – owners, producers, consumers, taxpayers, managers, shareholders,
       directors, Trade Unions, employers’ organisations – and consider business from
       the perspective of each of these stakeholders;

      Demonstrate a knowledge and critical understanding of the potential and
       implications of e-commerce, particularly for business activity in Northern Ireland.

Types of Business Organisation

Private sector

Candidates should be able to:

      Describe the different forms of business ownership: sole trader, partnership,
       private limited company, public limited company, franchises and workers’ co-
       operatives;

      Compare and contrast the different forms of business ownership.

Public sector

Candidates should be able to:
      Describe the main forms of public ownership – public corporations and municipal
       undertakings;

      Demonstrate a knowledge and understanding of public sector organisations,
       including contemporary developments such as the establishment of Trusts, for
       example, Hospital Trusts and public/private sector partnerships;

      Demonstrate a knowledge and understanding of the business orientated activities
       undertaken by local authorities such as the establishment and running of leisure
       centres.

Business Aims

Candidates should be able to:

      Identify and demonstrate an understanding of the following business aims:
               - survival;
               - profit improvement;
               - growth;
               - corporate image and public service;
               - concern for the environment;

      explain how the aims of a business affect its activities and why, on certain
       occasions, these aims may be in conflict;

      understand how the aims of businesses in the private sector differ from those
       organisations in the public sector;

      examine the ethical and moral issues associated with business aims, for example,
       concern for the environment.

Growth of Businesses

Candidates should be able to:

      describe the ways by which businesses may grow, including:

              -   internal/organic growth;
              -   external growth by amalgamation/integration (vertical, horizontal,
                  lateral) through mergers and takeovers;
              -   franchising;

      identify and explain the factors which may limit the growth of firms;

      demonstrate knowledge and understanding of the factors influencing the growth
       or decline of a business;
      analyse and evaluate the implications for a business of the different ways by
       which it may grow;

      examine the social and moral implications of the growth of very large firms
       particularly for small communities in Northern Ireland;

      explain the main purposes of current legislation relating to monopolies, mergers
       and restrictive practices and the circumstances in which it may be applied.

Organisation of Businesses in the Private Sector

Resources

Candidates should be able to:

      demonstrate a knowledge and understanding of the significance and importance of
       land, labour, capital and enterprise for a business;

      describe what it means to be enterprising;

      identify the essential qualities and skills required by today’s workforce.

Management

Candidates should be able to:

      identify the main functional areas of a business – human resources, production,
       finance, marketing;

      describe the two main management structures – flat and hierarchical – and
       examine the implications for a business of these two management structures;

      demonstrate a knowledge and critical understanding of the importance of effective
       communication within and between business;

      examine the impact of Information and Communications Technology (ICT) on
       communications within and between businesses.

Assistance

Candidates should be able to:

      identify and describe the main types of assistance available to business including
       that provided by the Local Economic Development Unit (LEDU), the Industrial
       Development Board (IDB), banks and the European Union (EU).
Business Planning

Candidates should be able to:

      explain the purpose of a business plan and identify assistance available in the
       writing of a business plan;

      demonstrate a knowledge and understanding of the components of a business
       plan and what is included within each component;

      evaluate a given business plan.
                            HUMAN RESOURCES

When studying this section of the subject content candidates should develop a knowledge
and critical understanding of the importance of people to business and in particular their
roles, relationships and management. Candidates should also develop knowledge and
critical understanding of the controls and procedures which govern the recruitment,
selection and motivation of employees, and the role of the trade unions.

Roles and relationships

Candidates should be able to:

      demonstrate knowledge and understanding of the complex roles people may play
       in business and how these roles inter-relate.

Contemporary Work Patterns

Candidates should be able to:

      show a knowledge and critical understanding of modern work patterns, for
       example, home working and flexitime, and the need for employees to be
       adaptable, flexible and be able to work in teams.

Recruitment, Selection and Training

Recruitment

Candidates should be able to:

      demonstrate a knowledge and understanding of the purposes and content of a job
       analysis, job description, person specification and contract of employment;

      identify, describe and evaluate the main methods of recruitment;

      explain the factors which influence the choice of recruitment method and examine
       how the effectiveness of any method of recruitment might be assessed;

      demonstrate a knowledge and understanding of types of employee, ie skilled,
       semi-skilled and multi-skilled, and of the factors affecting job satisfaction;

      show a knowledge and understanding of the legal controls which govern
       recruitment in Northern Ireland as well as the moral and ethical issues which
       underlie such legislation;
      show a knowledge and critical understanding of the role of the Equality
       Commission for Northern Ireland.

Selection

Candidates should be able to:

      demonstrate a knowledge and critical understanding of the main methods of
       selection and why they may be used;

      show a knowledge and critical understanding of the responsibilities of both
       employer and employees in the selection process;

      demonstrate an awareness of “fairness” in the selection procedure.

Training

Candidates should be able to:

      demonstrate a knowledge and critical understanding of the purpose and
       importance of training for both the business and the employees;

      describe and evaluate on-the-job training and off-the-job training and justify the
       most appropriate method of training for particular circumstances.

Motivation

Candidates should be able to:

      explain the importance of motivation among employees;

      identify, describe and evaluate the main methods of financial and non-financial
       motivation listed below.

      Financial methods of motivation:

              - bonus
              - commission
              - profit sharing
              - piece work.

      Non-financial methods of motivation:
              - job rotation;
              - job sharing;
              - team working;
              - status;
              -   consultation;
              -   quality circles;
              -   fringe benefits.

      identify the most appropriate methods of motivation in a particular situation.

Appraisal

Candidates should be able to:

      explain the reasons for and importance of appraisal, including its benefits for
       employers and employees;

      identify, describe and evaluate the main methods of appraisal.

Employer/Employee Relations

Candidates should be able to:

      demonstrate a critical understanding of the role of trade unions in relation to
       negotiating pay and conditions, giving advice and information, defending
       employees’ rights, and resolving conflict;

      demonstrate a critical understanding of the impact of legislation on trade unions;

      describe and explain the role of the Labour Relations Agency (LRA) in relation to
       conciliation and arbitration;

      show an understanding of the purpose and role of the Trades Union Congress
       (TUC) and the Irish Congress of Trade Unions (ICTU);

      show an understanding of the moral and ethical issues which are associated with
       industrial action in particular circumstances;

      identify and explain the purpose of the employers’ organisation – the
       Confederation of British Industry (CBI)
                                PRODUCTION
In studying this section of the specification, candidates need to develop a knowledge
and understanding of the main factors influencing product development and the main
methods of production. They also need to appreciate the impact of technology on
production as well as the implications of relevant legislation.

Candidates should be able to:

      demonstrate a critical understanding of division of labour/specialisation;

      show an understanding of the changing trends across the types of production
       in Northern Ireland;

      identify and describe examples of small and large scale production, and the
       trends in the scale of production;

      identify and describe the influences on product development – consumer
       demand, product life cycle, technological innovation and changes in
       legislation;

      demonstrate a knowledge and understanding of economies of scale – market,
       technical and financial;

      describe the main methods of production – job, batch, flow and Just-in-Time
       (JIT) – and evaluate the impact of technology on production;

      explain and justify the most appropriate method of production for particular
       circumstances;

      explain and examine the importance of quality assurance in production
       including the value to an organisation of attaining a recognised quality
       standard;

      evaluate the implications for a business of social and environmental
       considerations in production and its location;

      demonstrate an understanding of the factors influencing the location of
       production;

      demonstrate a knowledge and understanding of the implications for a business
       of the Health and Safety (Northern Ireland) Order 1978 on business, and of
       the rights and responsibilities of both employers and employees in the area of
       health and safety.
                                   MARKETING
When studying this section, students should focus on the process of identifying and
satisfying customers in a changing and competitive environment. They should also be
aware that marketing policy will be partly determined by the size and nature of the
business. Candidates need to examine the implications of legal and ethical constraints
on marketing, and to consider the marketing issues for Northern Ireland firms operating
in a global economic environment.

Market Research

Candidates should be able to:

       demonstrate a critical understanding of the different methods of market research
        and sampling, and the most appropriate method for particular circumstances;

       explain market segmentation;

       interpret, analyse and evaluate the results of market research and examine their
        influence.

The Marketing Mix

Price

Candidates should be able to:

       identify and discuss a range of pricing policies (market-led, cost-based,
        skimming, penetration, destruction, price wars);

       demonstrate knowledge and critical understanding of the relationship between
        price and demand;

       identify and explain the main factors which affect price.

Promotion

Candidates should be able to:

       demonstrate knowledge and understanding of the most commonly used methods
        of advertising, publicity and sales promotion;

       identify the most appropriate methods of promotion in particular circumstances;
       examine the legal constraints on promotion, and their role in protecting consumers
        and organisations – Trade Descriptions Acts, 1968 and 1972, Consumer
        Protection Act, 1987;

       examine the constraints on promotion imposed by relevant bodies in protecting
        consumers and organisations – Advertising Standards Authority (ASA),
        Independent Television Commission (ITC), Office of Fair Trading(OFT);

       explain the responsibilities of business organisations in meeting the requirements
        of the legal and other constraints;

       discuss the ethical and moral issues relating to the promotion of goods and
        services.

Place

Candidates should be able to:

       demonstrate a knowledge and understanding of the most commonly used channels
        of distribution of goods and services, including changing trends in such channels;

       identify and explain some of the implications of the Internet for existing channels
        of distribution;

       demonstrate an understanding of the main methods of transport used to distribute
        goods and explain the reason for choice of method in particular circumstances.

Product

Candidates should be able to:

       demonstrate a knowledge of the product life cycle and discuss the strategies used
        to extend it;

       show understanding of how the product life cycle assists a business in its
        decision-making;

       demonstrate knowledge and understanding of the inter-relationship of the
        elements of the marketing mix;

       identify and explain the legal and other constraints on products;

       examine the implications for a business of these constraints and their role in
        protecting consumers and organisations.
International marketing

Candidates should be able to:

      demonstrate a knowledge and critical understanding of the benefits and
       drawbacks of marketing abroad;

      consider the implications of the global market for businesses in Northern Ireland;

      demonstrate an awareness of the opportunities and competition in international
       marketing created by technology;

      recognise that, in the context of international marketing, it will be necessary to
       consider the cultural dimension.
                      FINANCE AND ACCOUNTING
When studying this section, candidates should develop a knowledge and critical
understanding of business financial needs and of the sources, uses and management of
finance. Candidates also need to show how accounting and financial information is used
as an aid to decision-making.

Business Financial Needs

Candidates should be able to:

      demonstrate knowledge and understanding of different types of capital – start-up,
       additional and working capital;

      demonstrate a knowledge and understanding of the internal and external sources
       of finance listed below:

Internal sources:

              -     owner’s own capital;
              -     retained profits;
              -     sale of fixed assets;
              -     sale of stocks;
              -     debt collection.
External sources:

               -    bank loan/overdraft;
               -    additional partners;
               -    share issue;
               -    leasing assets;
               -    hire purchase;
               -    mortgage;
               -    trade credit;
               -    factoring;
               -    government grants.

      identify and examine the most appropriate source of finance in particular
       circumstances.

Final Accounts and Balance Sheet

Candidates should be able to:

      explain and interpret a trading account, profit and loss account, and vertical
       balance sheet (Candidates will not be required to prepare accounts).
Interpretation of Accounts

Candidates should be able to:

      interpret and analyse final accounts and vertical balance sheet for assessing
       business performance using ratios:

              -   gross profit percentage;
              -   net profit percentage;
              -   stock turnover rate;
              -   return on capital employed;
              -   current working capital ratio;
              -   acid test ratio.

Costing

Candidates should be able to:

      distinguish between fixed and variable costs;

      calculate breakeven both graphically and by formula;

      analyse a breakeven chart;

      explain the significance for a business of the breakeven point;

      calculate the margin of safety, and understand its significance for a business.


Forecasting

Candidates should be able to:

      demonstrate knowledge and understanding of the purpose of forecasts;

      demonstrate knowledge and understanding of the importance of adequate cash
       flow within the context of forward planning;

      interpret a simple cash flow statement;

      examine the consequences of incorrect forecasting.

								
To top