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
Strategy and Implementation
- 14 subtopics
- 42 things to know
- A2 Unit 3
What Strategy and Implementation covers
Strategy and Implementation is examined in Unit 3, Business Analysis and Strategy, and again in Unit 4. It covers aims and objectives, SMART objectives, mission and vision statements, corporate, divisional and functional strategy, strategy, tactics and corporate plans, SWOT analysis, Porter's Five Forces, the Ansoff matrix, organic growth, mergers and takeovers, horizontal and vertical integration, franchising as a method of growth, location and relocation decisions and rationalisation and outsourcing production.
The 14 subtopics
Each one has its own page.
- Aims and objectivesBusiness aim, business objective and relationship between an aim and an objective.Open →
- SMART objectivesWhat makes an objective specific, what makes an objective measurable and difference between an achievable and a realistic objective.Open →
- Mission and vision statementsRecall questions on what each is for, how they differ from objectives, who they are written for, and whether they change what a business actually does.Open →
- Corporate, divisional and functional strategyBusiness strategy, corporate strategy and strategic direction.Open →
- Strategy, tactics and corporate plansStrategy and tactics, tactical marketing decision and strategic marketing decision.Open →
- SWOT analysisPurpose of carrying out a SWOT analysis, how a business can turn a strength into a strategy and one weakness of SWOT analysis as a technique.Open →
- Porter's Five ForcesPurpose of Porter's Five Forces framework, five forces in Porter's framework and what determines the threat of new entrants.Open →
- The Ansoff matrixAnsoff matrix, market penetration and product development.Open →
- Organic growthOrganic growth and three ways a business can grow organically.Open →
- Mergers and takeoversExternal growth, merger and a takeover and hostile takeover.Open →
- Horizontal and vertical integrationHorizontal integration and vertical integration.Open →
- Franchising as a method of growthTwo main payments a franchisee normally makes, three things a franchisor typically provides and why franchisees are often more committed than employed branch managers.Open →
- Location and relocation decisionsFour factors that influence where a business locates, why a retailer weights proximity to customers most heavily and how the availability of skilled labour influences location.Open →
- Rationalisation and outsourcing productionThree forms rationalisation can take, main financial aim of rationalisation and when rationalisation typically becomes necessary.Open →
What you need to know
Answer each one before you reveal it.
Your recallNot started
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Define vertical integration, say what makes it backward rather than forward, and give an example from coffee.
Evaluation
State two advantages to the franchisee of buying a franchise.
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Define a business aim.
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What does the acronym SMART stand for?
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What is a mission statement?
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Define business strategy.
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Define a tactic.
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What does SWOT stand for?
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Name the five forces in Porter's framework.
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State another term used for organic growth.
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Define external growth.
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State four factors that influence where a business locates.
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Define rationalisation.
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Define a business objective.
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Explain the difference between an achievable and a realistic objective.
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Distinguish between a mission statement and a vision statement.
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What is corporate strategy?
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Distinguish between strategy and tactics.
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Which two elements of a SWOT analysis are internal to the business?
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Explain what determines the threat of new entrants.
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Name the four strategies in the Ansoff matrix.
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Explain how organic growth protects the culture of a business.
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Distinguish between a merger and a takeover.
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Define horizontal integration.
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Define the franchisor.
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Explain why a retailer weights proximity to customers most heavily.
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Explain when rationalisation typically becomes necessary.
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State four common business objectives.
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Explain why an objective must be time-bound.
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Explain how a mission statement can influence day-to-day decisions.
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What is divisional strategy?
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Explain why tactics are easier to reverse than strategy.
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Which two elements of a SWOT analysis are external?
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Explain the effect on profitability of low barriers to entry.
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Define market penetration.
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Explain why organic growth carries less financial risk than a takeover.
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What is a hostile takeover?
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Give an example of horizontal integration.
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Define the franchisee.
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Explain why a business that produces a bulky finished product locates near its market.
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Explain the effect of rationalisation on the employees who remain.
Take Strategy and Implementation further
The same content, four other ways.
Commonly confused
Pairs that lose marks when they are blurred together.
Aim vs Objective
Aim: a broad, long-term goal stating what a business is ultimately trying to achieve. Objective: A specific, measurable, time-bound target stating exactly what must be reached and by when.
Mission statement vs Vision statement
Mission statement: a short published declaration setting out a business's present purpose: what it does, who it serves and what it stands for. Vision statement: A short published declaration setting out what a business aspires to become in the future, which is deliberately aspirational and need not be measurable.
Strategy vs Tactic
Strategy: a long-term plan that decides the direction a business takes, commits major resources and is hard to reverse once begun. Tactic: A short-term action taken to deal with an immediate situation, cheap to try and easily changed.
Questions from this topic
Each one with the model answer underneath.
- 1
Define a business aim.
Model answer
An aim is a broad, long-term goal that states what a business is ultimately trying to achieve.
- 2
Define a business objective.
Model answer
An objective is a specific, measurable target set in order to move the business towards one of its aims.
- 3
Explain the relationship between an aim and an objective.
Model answer
The aim gives the general direction and the objectives break it into concrete targets, so achieving the objectives moves the business towards the aim.
- 4
State four common business objectives.
Model answer
Survival, profit maximisation, growth in sales or market share, and improving the firm's social or environmental record.
- 5
Why is survival usually the first objective of a new business?
Model answer
A new business has little cash, no reputation and no customer base, so establishing itself and staying solvent has to come before anything else.
- 6
Explain why a business might pursue growth rather than short-term profit.
Model answer
A larger business gains economies of scale, bargaining power over suppliers and a stronger market position, which can produce greater profit later.
What is inside Levo
Six ways to work the same material.
Strategy and Implementation revision questions
- What does Strategy and Implementation cover in WJEC A-Level Business?
- 14 subtopics: aims and objectives, smart objectives, mission and vision statements, corporate, divisional and functional strategy, strategy, tactics and corporate plans, swot analysis, porter's five forces, the ansoff matrix, organic growth, mergers and takeovers, horizontal and vertical integration, franchising as a method of growth, location and relocation decisions and rationalisation and outsourcing production. Each one has its own page with questions and model answers.
- How is Strategy and Implementation organised?
- By the WJEC 601-5238-2 specification, subtopic by subtopic, so it matches the order you are taught it in.
Every question in Strategy and Implementation, 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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