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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
Markets and Market Research
- 17 subtopics
- 45 things to know
- AS Unit 1
What Markets and Market Research covers
Markets and Market Research is examined in Unit 1, Business Opportunities, and again in Units 2 and 4, which assess the whole of the content. It covers types of market, market size, market share and market trends, market segmentation, the degree of competition in a market, perfect competition and monopolistic competition, oligopoly and monopoly, consumer protection, demand and the demand curve, supply and the supply curve, market equilibrium and changes in price and quantity, price and income elasticity of demand, inferior, normal and luxury goods, the value of market research, primary market research, secondary market research, qualitative and quantitative data and sampling and avoiding bias.
The 17 subtopics
Each one has its own page.
- Types of marketLocal and a global market, mass market and niche market.Open →
- Market size, market share and market trendsMarket size, market share and formula for market growth.Open →
- Market segmentationMarket segmentation, target market and five bases on which markets are commonly segmented.Open →
- The degree of competition in a marketDegree of competition in a market, four market structures used to describe the degree of competition and four features used to distinguish one market structure from another.Open →
- Perfect competition and monopolistic competitionMain features of perfect competition, main features of monopolistic competition and markets close to monopolistic competition.Open →
- Oligopoly and monopolyMain features of an oligopoly, interdependence in an oligopoly and price war.Open →
- Consumer protectionInformation asymmetry between a business and a consumer, unfair contract term and role of a competition authority.Open →
- Demand and the demand curveShape and slope of a typical demand curve, why demand curves normally slope downwards and movement along the demand curve.Open →
- Supply and the supply curveShape and slope of a typical supply curve, why supply curves normally slope upwards and movement along and a shift of the supply curve.Open →
- Market equilibrium and changes in price and quantityMarket equilibrium, excess demand and excess supply.Open →
- Price and income elasticity of demandPrice elasticity of demand and income elasticity of demand.Open →
- Inferior, normal and luxury goodsNormal good, inferior good and luxury good.Open →
- The value of market researchRecall questions on why a business researches before committing money, what research can and cannot tell it, the cost of getting it wrong, and the limits of any sample.Open →
- Primary market researchPrimary market research, open and closed questions in a questionnaire and focus group.Open →
- Secondary market researchSecondary market research, internal and external secondary data and EPOS data and how is it used in research.Open →
- Qualitative and quantitative dataQuantitative data and qualitative data.Open →
- Sampling and avoiding biasSampling in market research, population in a sampling exercise and sampling frame.Open →
What you need to know
Answer each one before you reveal it.
Your recallNot started
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Explain why location matters so much to a firm in monopolistic competition.
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Why are prices often stable in an oligopoly?
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Why do consumers sometimes need protection from businesses?
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Explain why demand curves normally slope downwards.
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A poor harvest coincides with a fashion for a particular crop. Explain the effect on price and quantity.
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Explain why the availability of substitutes is the most important influence on price elasticity.
Evaluation
Give two disadvantages of quota sampling.
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How does the size of a sample affect the reliability of the findings?
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Distinguish between measuring market size by volume and by value.
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What is a target market?
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What is meant by a barrier to entry?
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Describe the shape and slope of a typical supply curve.
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What is a normal good?
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Name two questions market research is used to answer.
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What is primary market research?
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What is secondary market research?
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What is qualitative data?
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Distinguish between a local and a global market.
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State how market size by value is calculated from volume.
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Name five bases on which markets are commonly segmented.
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Give four examples of barriers to entry.
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What happens in perfect competition if existing firms are earning high profits?
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What is an oligopoly?
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What is meant by information asymmetry between a business and a consumer?
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Why does demand require ability as well as willingness to buy?
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Explain why supply curves normally slope upwards.
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What is meant by excess demand?
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What is meant by price elasticity of demand?
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Give two examples of inferior goods and explain why they qualify.
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Why is market research particularly important before launching a new product?
Evaluation
Give two advantages of primary research.
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Distinguish between internal and external secondary data.
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Give two methods that produce mainly quantitative data.
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Give an example of a business operating in a local market and explain why it is local.
Numbers
A market sells 400,000 units at an average price of £25. Calculate the market size by value.
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Give three examples of demographic segmentation.
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How do economies of scale act as a barrier to entry?
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Give examples of markets close to monopolistic competition.
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Name the main features of an oligopoly.
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Why does the law restrict misleading advertising?
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Describe the shape and slope of a typical demand curve.
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Distinguish between a movement along and a shift of the supply curve.
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What is meant by excess supply?
Numbers
State the formula for price elasticity of demand.
Take Markets and Market Research further
The same content, four other ways.
Commonly confused
Pairs that lose marks when they are blurred together.
Market size vs Market share
Market size: the total value or total volume of sales of a product made by all suppliers in a market over a period of time. Market share: The proportion of the total sales in a market that is accounted for by one business or one brand, usually stated as a percentage.
Mass market vs Niche market
Mass market: a large market for a standardised product bought by a very wide range of consumers. Niche market: A small, specialised segment of a wider market whose customers have particular requirements, usually served at higher prices and with less competition.
Excess demand vs Excess supply
Excess demand: a shortage, which occurs when the price is below equilibrium so consumers wish to buy more than producers are offering. Excess supply: A surplus, which occurs when the price is above equilibrium so producers are offering more than consumers wish to buy.
Questions from this topic
Each one with the model answer underneath.
- 1
What is meant by a market?
Model answer
A market is any arrangement that brings buyers and sellers of a product into contact so that an exchange can take place, whether or not it has a physical location.
- 2
Distinguish between a local and a global market.
Model answer
A local market serves customers within a small geographical area, while a global market sells to customers in many countries around the world.
- 3
Give an example of a business operating in a local market and explain why it is local.
Model answer
A village hairdresser operates locally because customers will not travel far for the service and it cannot be delivered from a distance.
- 4
What is a mass market?
Model answer
A mass market is a large market for a standardised product bought by a very wide range of consumers.
- 5
What is a niche market?
Model answer
A niche market is a small, specialised segment of a wider market whose customers have particular requirements not met by the mass-market product.
- 6
Give two advantages of operating in a niche market.
Model answer
Competition from large firms is limited, and customers who value the specialised product will pay a premium price for it.
What is inside Levo
Six ways to work the same material.
Markets and Market Research revision questions
- What does Markets and Market Research cover in WJEC A-Level Business?
- 17 subtopics: types of market, market size, market share and market trends, market segmentation, the degree of competition in a market, perfect competition and monopolistic competition, oligopoly and monopoly, consumer protection, demand and the demand curve, supply and the supply curve, market equilibrium and changes in price and quantity, price and income elasticity of demand, inferior, normal and luxury goods, the value of market research, primary market research, secondary market research, qualitative and quantitative data and sampling and avoiding bias. Each one has its own page with questions and model answers.
- How is Markets and Market Research organised?
- By the WJEC 601-5238-2 specification, subtopic by subtopic, so it matches the order you are taught it in.
Every question in Markets and Market Research, 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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