Key term
Eduqas A-Level Business A510QS
Enterprise, Business Plans and Location
Topic overviewEnterprise, entrepreneurs and SMEsNeeds, wants and spotting a business opportunityThe role of the entrepreneur in setting up and running a businessFinancial and non-financial motives of entrepreneursCharacteristics and skills of entrepreneursEntrepreneurs, SMEs and the sectors of the UK economyStakeholders and their interestsBusiness plans and sources of adviceChoosing a business location
Markets, Demand and Market Research
Topic overviewMarkets and competitionTypes of marketMarket size, market share and market trendsMarket segmentationMarket structures and degrees of competitionConsumer protectionDemand and the factors that shift itSupply and the factors that shift itEquilibrium price and shifts in the marketPrice and income elasticity of demandPrimary and secondary market researchQualitative and quantitative dataSampling and bias in market research
Business Structure and Sources of Finance
Topic overviewThe private sector and the public sectorAims of private sector businessesSole traders and partnershipsPrivate and public limited companiesUnlimited and limited liabilityChoosing a legal structureNot-for-profit organisationsInternal and personal sources of start-up financeBorrowing, equity and grants for a small business
Revenue, Costs and Break-Even
Topic overviewRevenue, costs and profitFixed, variable and semi-variable costsDirect costs, indirect costs and overheadsCalculating revenue, costs and profitContribution and its usesCalculating the break-even pointBreak-even charts and the margin of safetyWhat-if analysis of changes in costs and revenueThe usefulness and limits of break-even
Marketing and the Marketing Mix
Topic overviewThe purpose of marketing and market orientationThe marketing mix and the four PsProduct, brand, USP and differentiationThe product life cycleExtension strategiesThe product life cycle and cash flowThe Boston matrixPricing strategiesChoosing the right pricing strategyPromotion above the line and below the linePlace and distribution channelsThe marketing mix in different contextsNew technology in marketing
Financial Planning and Accounts
Topic overviewThe role of the finance departmentBudgets and the purpose of budgetingThe benefits and drawbacks of budgetsInternal sources of financeExternal sources of financeChoosing the right source of financeCash flow and cash flow forecastsConstructing and interpreting a cash flow forecastCash flow problems and how to improve cash flowThe income statement, gross profit and net profitGross and net profit margins
People in Organisations
Topic overviewThe role of the human resource departmentThe flexible workforceNew technology and changing working patternsWorkforce planningThe recruitment process, job analysis and job descriptionsInternal and external recruitmentMethods of selecting employeesMethods of trainingThe value of training to a businessAppraisal and its methodsMeasuring workforce performanceOrganisational structures and the chain of commandDelegation, empowerment and delayering
Motivation, Management and Employee Relations
Topic overviewMotivation and the benefits of a motivated workforceTaylor and scientific managementMayo and the Hawthorne studiesMaslow's hierarchy of needsHerzberg's two factor theoryExpectancy theories of Vroom, Porter and LawlerFinancial methods of motivationNon-financial methods of motivationManagement, management by objectives and Theory X and YLeadership and leadership stylesLeadership theories and choosing a styleEmployment rights, contracts and equal opportunitiesTrade unions, industrial conflict and dispute resolution
Operations Management
Topic overviewOperations management and added valueJob, batch and flow productionProductivity and how to raise itCapacity utilisationTechnology in operations: IT, CAD, CAM and roboticsLean production, kaizen and just-in-timeQuality control and quality assuranceTotal quality managementPurchasing, suppliers and methods of stock controlStock control diagrams and stock levelsInnovation, research and developmentInternal and external economies of scaleDiseconomies of scale and the survival of small firms
Data and Market Analysis
Topic overviewPresenting and interpreting business dataIndex numbers and comparing figures over timeCalculating price elasticity of demandInterpreting price elasticity and its effect on revenueIncome elasticity of demandSales forecasting and the reliability of a forecastMoving averages and time-series analysisCorrelation, scatter graphs and extrapolationQualitative forecasting techniques
Analysing Business Performance
Topic overviewBudget variances and how to calculate themAnalysing and evaluating budget variancesThe balance sheet and how it is constructedWorking capital, capital employed and depreciationLiquidity ratios: the current ratio and the acid testReturn on capital employed and gearingComparing accounts over time and between businessesEvaluating the financial position of a businessNon-financial measures of performance and vision statements
Aims, Objectives and Strategy
Topic overviewAims, objectives and SMART targetsMission and vision statementsStrategy, tactics and corporate plansSWOT analysisPorter's Five ForcesThe Ansoff matrixOrganic growthExternal growth: mergers and takeoversHorizontal and vertical integrationFranchising as a method of growthRationalisation and relocationOutsourcing production
Decision-Making and Investment Appraisal
Topic overviewTypes of business decisionScientific and intuitive decision-makingDecision trees: constructing and calculatingEvaluating decision tree analysisCritical path analysis: building the networkInterpreting and evaluating critical path analysisCost benefit analysisPayback and the average rate of returnDiscounted cash flow and net present valueChoosing between investmentsSpecial orders
Change and Risk Management
Topic overviewCauses of change in a businessInternal and external causes of changePlanned and unplanned changeEffects of change on a businessManaging change and Storey's four approachesResistance to change and how it is overcomeEvaluating change and its impact on stakeholdersTypes of risk a business facesRisk assessment, prevention and insuranceContingency planning and crisis management
PEST Factors and the External Environment
Topic overviewPolitical factors and the role of governmentTaxation and subsidiesFiscal and monetary policyEconomic growth, GDP and the business cycleInflation and how it is measuredInterest rates and exchange ratesUnemploymentDemographic changeSocial and cultural changeTechnological factors and automation
Ethical, Legal and Environmental Factors
Topic overviewBusiness ethics and ethical objectivesEthical issues facing a businessCorporate social responsibilityEthics, profitability and stakeholder viewsCompany law, intellectual property and pay lawEmployment, discrimination and health and safety lawConsumer, competition and data protection lawEnvironmental costs of business activityControlling environmental costs and business responses
International Trade, Globalisation and the European Union
Topic overviewInternational trade and why it happensFree trade and protectionismTrading blocs and the single marketEntering new international marketsGlobalisation and its causesThe effects of globalisation on businessStrategies for global growthGlocalisation and adapting to local marketsMultinational companiesThe European Union and the single European marketThe euro, the Eurozone and membership
Aims, Objectives and Strategy
- 12 subtopics
- 36 things to know
- Component 2
What Aims, Objectives and Strategy covers
Aims, Objectives and Strategy is examined in Component 2, Business Analysis and Strategy, and can be drawn on in the synoptic Component 3. It covers aims, objectives and SMART targets, mission and vision statements, strategy, tactics and corporate plans, SWOT analysis, Porter's Five Forces, the Ansoff matrix, organic growth, external growth: mergers and takeovers, horizontal and vertical integration, franchising as a method of growth, rationalisation and relocation and outsourcing production.
The 12 subtopics
Each one has its own page.
- Aims, objectives and SMART targetsBusiness aim and business objective.Open →
- Mission and vision statementsWhat a business says it does against what it hopes to become, how each relates to aims and objectives, and the case that both are public relations rather than management.Open →
- Strategy, tactics and corporate plansBusiness strategy, relationship between objectives and strategy and corporate strategy.Open →
- SWOT analysisSWOT analysis, business strength and business weakness.Open →
- Porter's Five ForcesPorter's Five Forces framework, five forces in Porter's framework and threat of new entrants.Open →
- The Ansoff matrixNature and purpose of the Ansoff matrix, two axes of the Ansoff matrix and four strategies in the Ansoff matrix.Open →
- Organic growthOrganic growth and two ways a retailer can grow organically.Open →
- External growth: mergers and takeoversHostile takeover, two advantages of growth by takeover and synergy in a merger.Open →
- Horizontal and vertical integrationHorizontal integration, vertical integration and conglomerate integration.Open →
- Franchising as a method of growthNature and purpose of franchising, two advantages of franchising for the franchisor and two disadvantages of franchising for the franchisor.Open →
- Rationalisation and relocationTwo costs of rationalisation to a business, four factors that influence a decision to relocate and two costs of relocating a business.Open →
- Outsourcing productionTwo further advantages of outsourcing production and two risks to quality when production is outsourced.Open →
What you need to know
Answer each one before you reveal it.
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How does corporate strategy differ from divisional strategy?
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What does the M in SMART objectives stand for?
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What is a mission statement?
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What is a SWOT analysis?
Numbers
What is Porter's Five Forces framework?
Numbers
What is the nature and purpose of the Ansoff matrix?
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What is meant by organic growth?
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Why do businesses choose external growth rather than expanding from within?
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What is horizontal integration?
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What is the nature and purpose of franchising?
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What is rationalisation?
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What is outsourcing?
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What is a business aim?
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What does a mission statement usually contain?
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Which two elements of SWOT are internal?
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Name the five forces in Porter's framework.
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What are the two axes of the Ansoff matrix?
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How does organic growth differ from external growth?
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What happens to the two companies in a merger?
Evaluation
State two advantages of horizontal integration.
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Who is the franchisor?
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Why do businesses rationalise?
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Why is outsourcing not the same as moving production abroad?
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What is a business objective?
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State two purposes of a mission statement.
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What is business strategy?
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Which two elements of SWOT are external?
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What determines the intensity of competitive rivalry in an industry?
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Name the four strategies in the Ansoff matrix.
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Name two ways a retailer can grow organically.
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What is meant by a takeover?
Evaluation
State two disadvantages of horizontal integration.
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Who is the franchisee?
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How does rationalisation affect unit costs?
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Why do businesses outsource production?
Take Aims, Objectives and Strategy further
The same content, four other ways.
Commonly confused
Pairs that lose marks when they are blurred together.
Market penetration vs Market development
Market penetration: selling more of an existing product to existing buyers. Market development: taking an existing product to a new group of buyers.
Product development vs Diversification
Product development: launching a new line for the customers already served. Diversification: launching a new line for an unfamiliar set of buyers.
Horizontal integration vs Vertical integration
Horizontal integration: joining two firms at the same stage of production. Vertical integration: joining two firms at different stages of the supply chain.
Questions from this topic
Each one with the model answer underneath.
- 1
What is a business aim?
Model answer
A business aim is the broad long-term purpose that a business intends to achieve. Growth, survival and profit maximisation are common aims.
- 2
What is a business objective?
Model answer
A business objective is a specific target set to move the business towards its aim. Objectives are usually measurable and given a deadline.
- 3
How do objectives help a business achieve its aims?
Model answer
Objectives break a broad aim into steps that departments can actually work on. Progress towards the aim can then be measured at each stage.
- 4
Give two examples of common business aims.
Model answer
Survival is a common aim for a new or struggling business. Growth in sales and market share is a second common aim.
- 5
What does the S in SMART objectives stand for?
Model answer
The S stands for specific, meaning the objective states exactly what must be achieved. A vague instruction to improve sales fails that test.
- 6
What does the M in SMART objectives stand for?
Model answer
The M stands for measurable, so progress can be checked against a number. A target of 12% higher output is measurable; a target of higher output is not.
What is inside Levo
Six ways to work the same material.
Aims, Objectives and Strategy revision questions
- What does Aims, Objectives and Strategy cover in Eduqas A-Level Business?
- 12 subtopics: aims, objectives and smart targets, mission and vision statements, strategy, tactics and corporate plans, swot analysis, porter's five forces, the ansoff matrix, organic growth, external growth: mergers and takeovers, horizontal and vertical integration, franchising as a method of growth, rationalisation and relocation and outsourcing production. Each one has its own page with questions and model answers.
- How is Aims, Objectives and Strategy organised?
- By the Eduqas A510QS specification, subtopic by subtopic, so it matches the order you are taught it in.
Every question in Aims, Objectives and Strategy, on a schedule.
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