3.1.1 Corporate objectives 3.1.2 Theories of corporate strategy 3.1.3 SWOT analysis 3.1.4 Impact of external influences 3.2.1 Growth 3.2.2 Mergers and takeovers 3.2.3 Organic growth 3.2.4 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 Analysis 3.4.1 Corporate influences 3.4.2 Corporate culture 3.4.3 Shareholders versus stakeholders 3.4.4 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 from the exam board.
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 change 3.6.2 Key factors in change 3.6.3 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.
4.1.1 Growing economies
4.1.2 International trade and business growth
4.1.3 Factors contributing to increased globalisation
4.1.4 Protectionism
4.1.5 Trading blocs
Economies are considered to be: Brazil, Russia, India, China and South Africa.
Economies are considered to be Mexico, Indonesia, Nigeria and Turkey
Gross Domestic Product. Measures the output of goods and services in an economy over a period of time
growth An increase in the GDP - value of output of goods and services produced in an economy over time
Foreign Direct Investment, when a business invests by setting up operations or buying assets in businesses in another country
When an economy or a business concentrate on a specific range of products or services.
A process by which economies and cultures have been drawn deeper together and have become more interconnected through networks of trade and the rapid spread of technology
Companies that own or control production or service facilities outside the country in which they are based
A physical limit on the quantity of imports allowed into a country
Policies used by a government to protect domestic businesses by making foreign owned products less attractive. Examples include tariffs, quotas, subsidies and regulation
A market where almost all trade barriers between member have been removed and common laws or policies aim to make the movement of goods, services, capital and labour between countries easy
A group of countries that trade freely with reduced or no tariffs and quotas on trade between businesses in these countries
Students will gain an insight into how the world of business operates in a global scale and how globalisation can be beneficial as well as having limitations depending on countries status.
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 choose to operate on a large scale.
4.2.1 Conditions that prompt trade
4.2.2 Assessment of a country as a market
4.2.3 Assessment of a country as a production location
4.2.4 Reasons for global mergers or joint ventures
4.2.5 Global competitiveness
Moving a business function or department to a specialist external provider which may or may not be overseas
The conditions that exist elsewhere that appear to be more advantageous and may cause a business to move to those areas to take advantage of them
The conditions that make a business’ current location less desirable and may cause it to leave and move elsewhere
The amount of money that households have available for spending and saving after taxes have been paid
A payment to a producer to offset/lower the costs of production
When two or more businesses come together for a specific project. It is not a formal takeover or merger, and the businesses remain independent of each other
Legal rights to a monopoly on a new product or process. The innovator applies to the patent office. Businesses cannot legally copy the patented product without permission
When employers cannot find enough workers with a particular skill
Students will gain an insight into how the different markets across the world work as well seeing how business can join together to increase market power globally.
Students will be working in different groups and on an individual level to explore how different business around the world operate and how merger and takeovers can impact different stakeholders.
4.3.1 Marketing
4.3.2 Niche markets
4.3.3 Cultural/social factors
Where a business approaches the world primarily from the perspective of its own culture. Products and marketing are not adapted
A combination of both Ethnocentric and Polycentric marketing. Maintain and promote the global brand name, but tailor its products to local markets
A marketing strategy that adapts a global product or service to suit differing tastes and preferences in different regions e.g. ‘think global, act local’
Where a business considers each host country to be unique. Businesses adapts their marketing mix to these individual markets to maximise sales
Smaller, specialised parts of a global market where there are specific customer needs in more than one country are not met by the global mass market.
Recognition that people across the globe have different interests and values
The students will be introduced to global marketing and how this differs from domestic marketing depending on the industry they are operating in.
Students will work collectively and individually on how marketing works on a global scale.
4.4.1 The impact of MNCs
4.4.2 Ethics
4.4.3 Controlling MNCs
A record of all transactions associated with imports and exports and all international capital movements
A multi national company i.e. a business that operates in more than one country
When a business is able to meet present needs without damaging or compromising the needs of the future
Government policy that exists to promote competition and ensure that firms don’t abuse their market power, do not attempt to fix prices or use pricing strategies to drive out competition
Using illegal methods to avoid paying taxes that are owed
he World Trade Organisation that supervises world trading arrangements and trade negotiations and promotes the benefits of free trade
The way a business treats and monitors the labour involved in the production of raw materials, components and services
Students will gain an insight into how MNCs operate around the world and weighing up the advantages and disadvantages of having them operate in a country.
Students will work collectively and individually to see if MNCs are worth operating in foreign nations depending on whether they are a developed or developing economy.
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.