Key term
WJEC A-Level Business 601-5238-2
Enterprise and Starting a Business
Markets and Market Research
Topic overviewTypes of marketMarket size, market share and market trendsMarket segmentationThe degree of competition in a marketPerfect competition and monopolistic competitionOligopoly and monopolyConsumer protectionDemand and the demand curveSupply and the supply curveMarket equilibrium and changes in price and quantityPrice and income elasticity of demandInferior, normal and luxury goodsThe value of market researchPrimary market researchSecondary market researchQualitative and quantitative dataSampling and avoiding bias
Marketing
Topic overviewMarket orientation, product orientation and asset-led marketingThe marketing mixProduct and the product portfolioBranding, 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 contexts and global marketingNew technology in marketing
People in Business
Topic overviewThe flexible workforceNew technology and changing working practicesWorkforce planningThe recruitment process, job analysis and job descriptionsInternal and external recruitmentMethods of selectionTrainingAppraisalLabour productivity, absenteeism and labour turnoverOrganisational design and structuresDelegation, empowerment and delayeringMotivation theoriesFinancial and non-financial methods of motivationManagement and management by objectivesLeadership styles and theoriesEmployment rights, duties and equal opportunitiesTrade unions, conflict and dispute resolution
Operations Management
Topic overviewAdded valueJob, batch and flow productionChoosing the right method of productionProductivityCapacity utilisationNew technology in operationsLean production and kaizenJust-in-time and cell productionQuality control and quality assuranceTotal quality managementStock control and stock control diagramsPurchasing and working with suppliersInnovation, research and developmentInternal economies of scaleExternal economies of scaleDiseconomies of scale and the survival of small firms
Business Finance and Accounts
Topic overviewInternal sources of financeLoans, overdrafts and trade creditShare capital and venture capitalLeasing and debt factoringChoosing an appropriate source of financeFinance for entrepreneurs and SMEs in WalesRevenue, costs and profitTypes of costContribution and break-evenBreak-even charts and the margin of safetyBudgets and budgetingCash flow forecastingImproving cash flowThe income statementGross and net profit margins
Business Analysis and Decision-Making
Topic overviewPrice and income elasticity of demandSales forecasting and its reliabilityMoving averages and time-series analysisCorrelation, scatter graphs and extrapolationPresenting and interpreting data: pie charts, histograms and index numbersQualitative forecasting techniquesBudgets and budget variancesThe balance sheetWorking capital, capital employed and depreciationLiquidity ratios: the current ratio and the acid testReturn on capital employed and gearingInterpreting and comparing company accountsNon-financial measures and vision statementsDecision treesCritical path analysisCost benefit analysis and scientific decision-makingPayback period and average rate of returnNet present value and discounted cash flowSpecial orders and contribution
Strategy and Implementation
Topic overviewAims and objectivesSMART objectivesMission and vision statementsCorporate, divisional and functional strategyStrategy, tactics and corporate plansSWOT analysisPorter's Five ForcesThe Ansoff matrixOrganic growthMergers and takeoversHorizontal and vertical integrationFranchising as a method of growthLocation and relocation decisionsRationalisation and outsourcing production
Managing Change and Risk
Topic overviewInternal and external causes of changePlanned and unplanned changeThe effects of change on a businessManaging change effectivelyStorey's four approaches to managing changeResistance to changeLewin's three step processOrganisational culture and leadership in changeEvaluating the management of changeThe risks a business facesRisk assessment and preventative actionInsurable and uninsurable risksContingency planning and crisis management
The External Environment
Global Business
- 4 subtopics
- 12 things to know
- A2 Unit 4
What Global Business covers
Global Business is examined in Unit 4, Business in a Changing World, which assesses the whole A level content. It covers international trade and protectionism, globalisation and its causes, global growth strategies and multinationals and the European Union and the euro.
The 4 subtopics
Each one has its own page.
- International trade and protectionismComparative advantage, free trade and quota in international trade.Open →
- Globalisation and its causesFive factors that have driven globalisation, trade liberalisation and developing or emerging market.Open →
- Global growth strategies and multinationalsMultinational company, global branding and how a business glocalises.Open →
- The European Union and the euroFour freedoms of the EU single market and EU structural funds.Open →
What you need to know
Answer each one before you reveal it.
Your recallNot started
Evaluation
Define a multinational, weigh the advantage of a global brand against its weakness, and distinguish the two routes to growth.
Key term
Set out what common standards, free movement of labour and regional funding meant for business in Wales and the UK.
Evaluation
Evaluate the impact of globalisation on stakeholders.
Evaluation
What is meant by comparative advantage?
Key term
Define globalisation.
Key term
Define a multinational company.
Key term
What are the four freedoms of the EU single market?
Key term
Define free trade.
Key term
How did containerisation contribute to globalisation?
Evaluation
Give one advantage and one drawback of a global brand.
Key term
Give two benefits that tariff-free access to the single market gave UK businesses before 2021.
Take Global Business further
The same content, four other ways.
Commonly confused
Pairs that lose marks when they are blurred together.
Tariff vs Quota
Tariff: a tax on imports, which raises their price relative to home-produced goods so that domestic producers can compete. Quota: A physical limit on the quantity of a good that may be imported in a given period.
Free trade area vs Customs union
Free trade area: a group of countries that have removed tariffs on goods moving between them, while each keeps its own tariffs on goods from outsiders. Customs union: A group of countries that have removed tariffs on goods moving between them and apply one common external tariff to non-members.
Customs union vs Single market
Customs union: a group of countries that have removed tariffs on goods moving between them and apply one common external tariff to non-members. Single market: A bloc in which goods, services, capital and labour move freely between members, which also share common rules and standards.
Questions from this topic
Each one with the model answer underneath.
- 1
Give three reasons countries trade internationally.
Model answer
No country can produce everything it needs, some goods can be produced more cheaply elsewhere, and trade widens the choice available to consumers and the market available to producers.
- 2
What is meant by comparative advantage?
Model answer
A country gains by specialising in what it can produce at the lowest opportunity cost and trading for the rest, even if another country is better at producing everything.
- 3
Define free trade.
Model answer
International trade conducted without tariffs, quotas or other government barriers.
- 4
Define protectionism.
Model answer
The use of barriers such as tariffs, quotas and subsidies to shield domestic producers from foreign competition.
- 5
What is a tariff, and what is its effect?
Model answer
A tax on imports, which raises their price relative to domestic goods so that domestic producers can compete.
- 6
What is a quota in international trade?
Model answer
A physical limit on the quantity of a good that may be imported in a given period.
What is inside Levo
Six ways to work the same material.
Global Business revision questions
- What does Global Business cover in WJEC A-Level Business?
- 4 subtopics: international trade and protectionism, globalisation and its causes, global growth strategies and multinationals and the european union and the euro. Each one has its own page with questions and model answers.
- How is Global Business organised?
- By the WJEC 601-5238-2 specification, subtopic by subtopic, so it matches the order you are taught it in.
Every question in Global Business, 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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