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
Data and Market Analysis
- 9 subtopics
- 27 things to know
- Component 2
What Data and Market Analysis covers
Data and Market Analysis is examined in Component 2, Business Analysis and Strategy, and can be drawn on in the synoptic Component 3. It covers presenting and interpreting business data, index numbers and comparing figures over time, calculating price elasticity of demand, Interpreting price elasticity and its effect on revenue, income elasticity of demand, sales forecasting and the reliability of a forecast, moving averages and time-series analysis, correlation, scatter graphs and extrapolation and qualitative forecasting techniques.
The 9 subtopics
Each one has its own page.
- Presenting and interpreting business dataPie chart used to show, frequency density and why is it used on a histogram and one danger of presenting data selectively.Open →
- Index numbers and comparing figures over timeSetting a base period at 100, converting figures to the index and back, rebasing a series, and the trap of reading a rise from 120 to 150 as thirty per cent.Open →
- Calculating price elasticity of demandThe coefficient as percentage change in quantity over percentage change in price, why the sign is negative, and what the number has to be for demand to count as elastic.Open →
- Interpreting price elasticity and its effect on revenueWhat a price rise does to total revenue under elastic and inelastic demand, and why the answer decides whether raising the price is the right move at all.Open →
- Income elasticity of demandMeasuring how demand responds to a change in earnings, and what the sign tells you about whether a good is normal, luxury or inferior.Open →
- Sales forecasting and the reliability of a forecastSales forecasting and two quantitative forecasting techniques.Open →
- Moving averages and time-series analysisTime-series analysis, four components of a time series and trend in a time series.Open →
- Correlation, scatter graphs and extrapolationLine of best fit and one weakness of extrapolation as a forecasting technique.Open →
- Qualitative forecasting techniquesQualitative forecasting, intuition as a forecasting technique and one advantage of relying on managerial intuition.Open →
What you need to know
Answer each one before you reveal it.
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What happens to revenue when price rises under inelastic and under elastic demand?
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What is a pie chart used to show?
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State the formula for price elasticity of demand.
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State the formula for income elasticity of demand.
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What is sales forecasting?
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What is time-series analysis?
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How does a business create a scatter graph?
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What is qualitative forecasting?
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How is the angle of a segment on a pie chart calculated?
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What is an index number?
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Why is price elasticity of demand normally negative?
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Why does a price rise not automatically increase total revenue?
Numbers
Consumer income rises by 5% and demand rises from 800 to 880 units. Calculate income elasticity of demand.
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Why does a business forecast its sales before setting a budget?
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Name the four components of a time series.
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What is a line of best fit?
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When is qualitative forecasting more appropriate than a quantitative technique?
Numbers
A firm's annual sales of £480,000 include £120,000 from exports. Calculate the angle of the export segment on a pie chart of sales.
Numbers
State the formula for converting a figure into an index number.
Numbers
Price rises from £20 to £22 and quantity demanded falls from 5,000 to 4,500 units. Calculate price elasticity of demand.
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What is the impact on total revenue when a business with price elastic demand raises its price?
Numbers
Consumer income rises by 4% and demand falls from 2,500 to 2,400 units. Calculate income elasticity of demand.
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How does sales forecasting help operations managers?
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What information can a manager interpret from a completed time-series analysis?
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How should the axes of a scatter graph be arranged?
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What is meant by intuition as a forecasting technique?
Take Data and Market Analysis further
The same content, four other ways.
Questions from this topic
Each one with the model answer underneath.
- 1
What is a pie chart used to show?
Model answer
A pie chart shows how one total is divided between its component parts. Each slice is a share of the whole, so the slices always sum to 100%.
- 2
How is the angle of a segment on a pie chart calculated?
Model answer
The angle equals the component divided by the total, multiplied by 360°. A part worth a quarter of the total therefore takes an angle of 90°.
- 3
A firm's annual sales of £480,000 include £120,000 from exports. Calculate the angle of the export segment on a pie chart of sales.
Model answer
Exports of £120,000 divided by total sales of £480,000 gives 0.25. The segment angle is therefore 0.25 multiplied by 360°, or 90°.
- 4
State one limitation of using a pie chart to present sales data.
Model answer
A pie chart shows proportions but hides the absolute size of the figures behind them. Two businesses with identical slices can differ enormously in total sales.
- 5
What is a histogram?
Model answer
A histogram displays the frequency distribution of continuous data such as age, income or spending. The bars touch each other because the classes run continuously with no gaps.
- 6
How does a histogram differ from a bar chart?
Model answer
A bar chart compares separate categories and leaves gaps between the columns. A histogram covers continuous class intervals, so the columns touch and the area shows frequency.
What is inside Levo
Six ways to work the same material.
Data and Market Analysis revision questions
- What does Data and Market Analysis cover in Eduqas A-Level Business?
- 9 subtopics: presenting and interpreting business data, index numbers and comparing figures over time, calculating price elasticity of demand, interpreting price elasticity and its effect on revenue, income elasticity of demand, sales forecasting and the reliability of a forecast, moving averages and time-series analysis, correlation, scatter graphs and extrapolation and qualitative forecasting techniques. Each one has its own page with questions and model answers.
- How is Data and Market Analysis organised?
- By the Eduqas A510QS specification, subtopic by subtopic, so it matches the order you are taught it in.
Every question in Data and Market Analysis, on a schedule.
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