3.1.1 Corporate objectives3.1.2 Theories of corporate strategy3.1.3 SWOT analysis3.1.4 Impact of external influences 3.2.1 Growth3.2.2 Mergers and takeovers3.2.3 Organic growth3.2.4 Reasons for staying small
The long term goals of a business as a whole which form the guiding principles of a business
Medium to long term plans of a business, details how objectives will be met through decisions and activities relating to all aspects of the business
A diagnostic tool used to identify the internal strengths and weaknesses and the external opportunities and threats to a business
All of the factors outside of a business’ control that will affect its behaviour and objectives
An increase in the scale of operations of a business It is one of the main corporate objectives of a business and may take place through organic or inorganic methods
Two or more firms agree to become integrated to form one firm under one management
A form of inorganic growth when one firm gains control over another and becomes the owner, this can be achieved by obtaining 51% of the shares
Internal, or organic, growth occurs when a business expands in size by opening new stores, branches, functions or plants
Growth that occurs when a business expands in size by either merging with or taking over another business
A target set focused on keeping the business alive i.e. achieving business continuity Survival is the first objective of all businesses, without this no other objective can be achieved
Students will gain a greater understanding of Corporate strategy and looking at why firms decide to grow or remain small depending on aims and objectives.
Students will be working in different groups and on an individual level to explore how firms are impacted by external influences and why some firms can choose to remain small.
3.3.1 Quantitative sales forecasting 3.3.2 Investment appraisal 3.3.3 Decision trees 3.3.4 Critical Path Analysis3.4 3.4.1 Corporate influences3.4.2 Corporate culture3.4.3 Shareholders versus stakeholders3.4.4 Business ethics
Numerical techniques used to predict future sales volumes and values
Numerical techniques that analyse the predicted financial outcomes of potential capital investments Techniques include: Payback Average (Accounting) Rate of Return Discounted Cash Flow (Net Present Value)
A quantifiable model that visually presents the alternative courses of action when making a decision
A technique used to identify which tasks can be completed simultaneously and the order in which they need to be completed when planning a complex project
The values and standards shared by people and groups within an organisation
Investors who are part owners of a company, they provide equity capital in return for a percentage ownership Shareholders will receive a dividend, a share of the profit, in return for their investment
Anyone with an interest in the actions of a business
Morality in decision-making, inferring doing what is ‘right’ Peoples’ views can differ on what is right or wrong
This will give student's the chance to experience real life finance, understand the balance between various stakeholders and look at business ethics.
Its helps the students recognise various points of view and practice balancing demands of various groups and people.
3.5.1 Interpretation of financial statements 3.5.2 Ratio analysis 3.5.3 Human resources. Students will also be introduced to the pre-released information for paper 3.
Measures the performance of a business that is financed from long term borrowing. Highly geared is over 50%. Calculated as non current liabilities/capital employed x100
The profit of a business as a percentage of the total amount of money used to generate it. Calculated as Operating profit/Capital employed x100
The number of staff who are absent as a percentage of the total workforce. Calculated as number of staff absent on a day/ total number of staff x100
A measure of how efficiently a business uses its employees to produce output and is expressed as output per employee per time period. Calculated Total output/average number of employees
Measures the percentage of employees leaving a business over a period of time.
The number of employees that remain in the business over a period of time
The students will be introduced to factors that impact a business through financial documents and look at resource management can help make businesses run smoothly.
Students develop and practice evaluative and analytical skills. Students discuss case studies and develop alternative strategies and challenge each other as to the validity, taking on board other students views and opinions.
3.6.1 Causes and effects of change3.6.2 Key factors in change3.6.3 Scenario planning
A course of action designed to help a business respond successfully to a major future event that may or may not happen
Where the full cost of mitigation is greater than the cost of the risk itself. This is often the case for small businesses
Identifying and evaluating the potential risks that may be involved in an activity that a business proposes to undertake, ensuring compliance with health and safety legislation
This is the opposite of risk acceptance. It could involve ceasing to follow a particular action altogether; for example, a multinational pulling out of an unstable country
The process of anticipating possible changes in a business’s situation and devising ways of dealing with them
A human resourcing process for identifying and developing new leaders who can replace old leaders when they leave, retire or die
Students will understand the impact of how businesses implement change and the affect it has on different stakeholders.
Group and individualised work coupled with case studies enable students to put their point of view across and discuss alternatives when it comes to trading abroad.
Students will go over any misconceptions of both theme 3 and 4 through knowledge retrieval practice.
The adaptation of a marketing strategy to target all markets on a worldwide scale
Glocalisation is the adaptation of a global marketing strategy in order to meet the requirements of local geographic markets
When a firm targets a small subsection or previously unexploited gap in a larger market
Subcultures in world society that share common interests and can be identified as market segments on a global scale
The lifestyle, customs and values of a group of people in different countries or from different ethnic groups
The key social factors that influence the behaviour of businesses and their customers These include: Demographic factors Environmental issues
A business that operates in more than one country
Morality in decision-making, inferring doing what is ‘right’
Stakeholders have different objectives and therefore when a firm makes a decision there will be disagreements between some stakeholders
The actions by Government that influence the behaviour of businesses and their customers
Students will explore how to build on their essay writing through assessment objectives.
Students will be looking at relevant exemplar answers and working together to build a model response to certain questions.