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
Change and Risk Management
- 10 subtopics
- 30 things to know
- Component 3
What Change and Risk Management covers
Change and Risk Management is examined in Component 3, Business in a Changing World. It covers causes of change in a business, internal and external causes of change, planned and unplanned change, effects of change on a business, managing change and Storey's four approaches, resistance to change and how it is overcome, Evaluating change and its impact on stakeholders, types of risk a business faces, risk assessment, prevention and insurance and contingency planning and crisis management.
The 10 subtopics
Each one has its own page.
- Causes of change in a businessChange in a business context, how developments in technology cause change in a business and market change.Open →
- Internal and external causes of changeInternal and external causes of change, three internal causes of change and three external causes of change.Open →
- Planned and unplanned changePlanned and unplanned change, incremental change and disruptive change.Open →
- Effects of change on a businessFinancial implications for a business of updating its equipment and effect of change on a business's organisational structure.Open →
- Managing change and Storey's four approachesStorey's approach known as top-down systemic change, storey's approach known as piecemeal initiatives and storey's approach known as bargaining for change.Open →
- Resistance to change and how it is overcomeThree steps in Lewin's three step process for managing change, force field analysis and organisational culture.Open →
- Evaluating change and its impact on stakeholdersJudging change by figures and by opinion, and tracing the effect on employees, customers, suppliers and owners, who rarely gain or lose together.Open →
- Types of risk a business facesRisk in a business context, risk arising from employee error and supply risk.Open →
- Risk assessment, prevention and insuranceRisk assessment and insurable and an uninsurable risk.Open →
- Contingency planning and crisis managementContingency planning, crisis management and contingency fund.Open →
What you need to know
Answer each one before you reveal it.
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Key term
How does planned change differ from unplanned, and what is incremental change?
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Distinguish between internal and external causes of change.
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Why does change often force a business to alter its production methods?
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Why is it important for a business to manage change effectively?
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Why is resistance to change common among employees?
Evaluation
How can a business evaluate whether a change has been managed well?
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What is meant by risk in a business context?
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What is meant by risk assessment?
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What is meant by contingency planning?
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What is meant by change in a business context?
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Name three internal causes of change.
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Distinguish between planned and unplanned change.
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Why does change create a need to update equipment?
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What two dimensions distinguish J. Storey's four approaches to managing change?
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Why might managers themselves resist change?
Evaluation
Give three quantitative measures used to evaluate a change programme.
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How can a natural disaster put a business at risk?
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Why is risk assessment described as a tool for avoiding risk?
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What is meant by crisis management?
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How does growth in the size of a business cause change?
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Name three external causes of change.
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Give two examples of planned change.
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What are the financial implications for a business of updating its equipment?
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Describe Storey's approach known as top-down systemic change.
Process
What are the three steps in Lewin's three step process for managing change?
Evaluation
Give two qualitative measures used to evaluate a change programme.
Key term
How does failure of equipment or technology create risk for a business?
Process
Outline the main steps in carrying out a risk assessment.
Key term
Distinguish between contingency planning and crisis management.
Take Change and Risk Management further
The same content, four other ways.
Questions from this topic
Each one with the model answer underneath.
- 1
What is meant by change in a business context?
Model answer
Change is any alteration to the way a business operates, its objectives, its markets or its structure. Change can be gradual or sudden, and can begin inside or outside the firm.
- 2
How does growth in the size of a business cause change?
Model answer
Growth adds employees, sites and layers of management, so communication and control must be reorganised. A larger business also tends to move from an informal structure to a formal hierarchy.
- 3
How can a change of ownership cause change within a business?
Model answer
A takeover or merger brings owners with different objectives and a different management style. New owners often restructure departments, cut duplicated jobs or rebrand the business.
- 4
Explain how developments in technology cause change in a business.
Model answer
New technology changes how a product is made, sold and delivered, so equipment and skills must be updated. Firms that ignore technological developments lose cost advantages to rivals that adopt them.
- 5
What is meant by a market change?
Model answer
A market change is a shift in the size, structure or competitiveness of the market a business sells in. Entry of a low-cost competitor is one common example.
- 6
How do changes in consumer tastes force a business to change?
Model answer
Consumer tastes decide what will sell, so a product that falls out of fashion loses sales quickly. Firms respond by redesigning products, changing promotion or withdrawing lines that no longer sell.
What is inside Levo
Six ways to work the same material.
Change and Risk Management revision questions
- What does Change and Risk Management cover in Eduqas A-Level Business?
- 10 subtopics: causes of change in a business, internal and external causes of change, planned and unplanned change, effects of change on a business, managing change and storey's four approaches, resistance to change and how it is overcome, evaluating change and its impact on stakeholders, types of risk a business faces, risk assessment, prevention and insurance and contingency planning and crisis management. Each one has its own page with questions and model answers.
- How is Change and Risk Management organised?
- By the Eduqas A510QS specification, subtopic by subtopic, so it matches the order you are taught it in.
Every question in Change and Risk Management, on a schedule.
Attempt a question from memory, write the correct version, then attempt it again. Levo records the jump between your first attempt and your last, and brings each question back on the day you are due to forget it.
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