Students will develop an understanding of:
3.1 Business objectives and strategy
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 Business growth
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.
Students will develop an understanding of:
3.3 Decision-making techniques
3.3.1 Quantitative sales forecasting
3.3.2 Investment appraisal
3.3.3 Decision trees
3.3.4 Critical Path Analysis
3.4 Influences on business decisions
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.
Students will develop an understanding of:
3.5 Assessing competitiveness
3.5.1 Interpretation of financial statements
3.5.2 Ratio analysis
3.5.3 Human resources
3.6 Managing change
3.6.1 Causes and effects of change
3.6.2 Key factors in change
3.6.3 Scenario planning
Students will also be exploring the pre released material throughout that will aid them in paper three.
Formal records that summarise a business’ financial performance, activities and worth over a specific period of time
A quantifiable technique that allows for a more meaningful analysis of published accounts by showing relationships between figures
The function within a business that relates to the management and strategies involved in dealing with individuals and groups that make up the workforce
The factors within the external environment that influence business behaviours, decision making and performance
The process of identifying uncertainties that may affect the future of the business and putting in place procedures to deal with these events if they occur
Stakeholders are often reluctant to accept any changes being made within an organisation
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.
Students will develop an understanding of:
4.1 Globalisation
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
4.2 Global markets and business expansion
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
Students will also be exploring the pre released material throughout that will aid them in paper three.
Globalisation is the integration of international economies leading to a world market
Countries with growing but low to middle average income per person
The exchange of goods and services between countries
Investment made by a business or other entity from one country into the production capacity of a business or other entity from another country e.g. factories
When a country takes protectionist action to protect its own industries by restricting trade with other countries
Actions taken by countries or trading blocs to encourage the free movement of goods and services between countries
The policies imposed by governments to restrict the free movement of goods and services between countries
A protectionist measure that involves placing taxes on imported goods that are not applied to domestic goods
A protectionist measure that involves placing a physical limit on the volume of imports entering a country
Economic units formed when the governments of a group of countries agree to trade together freely i.e. normally with no trade barriers
One that targets all of the world’s economies rather than individual countries
The relocation of a business process to another country
The practice of using the services of another organisation e.g. a recruitment consultancy or cleaning firm to work on behalf of a firm
The total income an individual has available to spend after paying income taxes and any other statutory payments
The expenditure incurred by a business when producing goods or services
When two or more businesses join together beyond the boundaries of a specific country
A form of inorganic growth when two or more businesses agree to act collectively to set up a new business venture with all parties contributing equity to fund the set up and purchase of assets
The ability of a business to compete in international markets to become a leader in a given industry across the world
Students will understand the impact of globalisation on different companies and how trading internationally can help businesses grow.
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 develop an understanding of:
4.3 Global marketing
4.3.1 Marketing
4.3.2 Niche markets
4.3.3 Cultural/social factors
4.4 Global industries and companies (multinational corporations)
4.4.1 The impact of MNCs
4.4.2 Ethics
4.4.3 Controlling MNCs
Students will also be exploring the pre released material throughout that will aid them in paper three.
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 different types of firms within an industry can exploit the global market. They will also look at how multinational companies differ from those that operate domestically.
Students will be looking at relevant examples of how multinational companies affect a countries business and economic polcies.