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
Markets, Demand and Market Research
- 13 subtopics
- 39 things to know
- Component 1
What Markets, Demand and Market Research covers
Markets, Demand and Market Research is examined in Component 1, Business Opportunities and Functions, and can be drawn on in the synoptic Component 3. It covers markets and competition, types of market, market size, market share and market trends, market segmentation, market structures and degrees of competition, consumer protection, demand and the factors that shift it, supply and the factors that shift it, equilibrium price and shifts in the market, price and income elasticity of demand, primary and secondary market research, qualitative and quantitative data and sampling and bias in market research.
Where it is assessed
Component 1
Business Opportunities and Functions.
Check the Eduqas specification ↗The 13 subtopics
Each one has its own page.
- Markets and competitionTerm market, term competition and price and non-price competition.Open →
- Types of marketLocal and a global market, business operating in a purely local market and mass market and a niche market.Open →
- Market size, market share and market trendsMarket size, market volume and formula for market share.Open →
- Market segmentationMarket segmentation, four bases on which markets are commonly segmented and demographic segmentation.Open →
- Market structures and degrees of competitionMarket structure, four features of perfect competition and main features of monopolistic competition.Open →
- Consumer protectionInformation asymmetry between a business and a customer, two industry regulators that protect consumers in the UK and cooling-off period.Open →
- Demand and the factors that shift itShape of a typical demand curve, law of demand and extension of demand.Open →
- Supply and the factors that shift itShape of a typical supply curve and why supply is often less responsive in the short run.Open →
- Equilibrium price and shifts in the marketMarket equilibrium and how a demand and supply diagram is set out.Open →
- Price and income elasticity of demandElastic demand, normal good and inferior good.Open →
- Primary and secondary market researchMarket research, test marketing and observation as a research method.Open →
- Qualitative and quantitative dataQuantitative data, qualitative data and open and a closed question in a questionnaire.Open →
- Sampling and bias in market researchSampling in market research, term population in market research and random sampling.Open →
What you need to know
Answer each one before you reveal it.
Your recallNot started
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What does inelastic demand mean, and what raises price elasticity?
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Define the term market.
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Distinguish between a local and a global market.
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What is meant by market size?
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Define market segmentation.
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What is meant by market structure?
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Why do consumers sometimes need protection from businesses?
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Define demand.
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Define supply.
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Define market research.
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Define quantitative data.
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What is meant by sampling in market research?
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Define the term competition.
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Give an example of a business operating in a purely local market.
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How is market size by value calculated?
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Name four bases on which markets are commonly segmented.
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State four features of perfect competition.
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What is meant by information asymmetry between a business and a customer?
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Describe the shape of a typical demand curve.
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Describe the shape of a typical supply curve.
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What is meant by market equilibrium?
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What does price elasticity of demand measure?
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State three reasons a business carries out market research.
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Define qualitative data.
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Why do businesses use samples rather than surveying everyone?
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Distinguish between price and non-price competition.
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Distinguish between a mass market and a niche market.
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What is meant by market volume?
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What is demographic segmentation?
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Why is a firm in perfect competition described as a price taker?
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How can monopoly power lead to consumer exploitation?
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Explain the law of demand.
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Why does the supply curve slope upwards?
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What is the equilibrium price also known as?
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What is meant by elastic demand?
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Define primary market research.
Evaluation
State two advantages of quantitative data.
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Define the term population in market research.
Take Markets, Demand and Market Research further
The same content, four other ways.
Commonly confused
Pairs that lose marks when they are blurred together.
Mass market vs Niche market
Mass market: selling a standard product to very large numbers. Niche market: serving a small specialised group.
Trade market vs Consumer market
Trade market: selling to other organisations for resale or processing. Consumer market: selling directly to households.
Questions from this topic
Each one with the model answer underneath.
- 1
Define the term market.
Model answer
A market is any place or arrangement where buyers and sellers come together to trade. Contact between the two sides can be physical or online.
- 2
Define the term competition.
Model answer
Competition is rivalry between businesses seeking the same customers. Firms compete on price, quality, service and brand.
- 3
Distinguish between price and non-price competition.
Model answer
Price competition means winning customers by charging less than rivals. Non-price competition uses quality, branding, service or advertising instead.
- 4
Explain two benefits of competition for consumers.
Model answer
Competition holds prices down because customers can always buy elsewhere. Choice and quality also improve as firms try to stand out.
- 5
Explain one drawback of intense competition for a business.
Model answer
Intense competition squeezes profit margins and leaves less money for investment. Small firms may be driven out of the market altogether.
- 6
What is meant by a competitive advantage?
Model answer
A competitive advantage is something that lets a firm outperform its rivals over time. Lower costs and a stronger brand are the two main sources.
What is inside Levo
Six ways to work the same material.
Markets, Demand and Market Research revision questions
- What does Markets, Demand and Market Research cover in Eduqas A-Level Business?
- 13 subtopics: markets and competition, types of market, market size, market share and market trends, market segmentation, market structures and degrees of competition, consumer protection, demand and the factors that shift it, supply and the factors that shift it, equilibrium price and shifts in the market, price and income elasticity of demand, primary and secondary market research, qualitative and quantitative data and sampling and bias in market research. Each one has its own page with questions and model answers.
- How is Markets, Demand and Market Research organised?
- By the Eduqas A510QS specification, subtopic by subtopic, so it matches the order you are taught it in.
Every question in Markets, Demand and Market Research, on a schedule.
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