1. Business & Its Environment (AS Level)
1.1 Nature and Objectives of Business
Enterprise: creating value by combining resources to produce goods/services.Common objectives – profit maximisation, growth, market share, survival, corporate social responsibility.Stakeholders – owners/shareholders, employees, customers, suppliers, government, community.
1.2 External Environment
Factor Key Questions
Political Regulations, taxes, trade policies, stability. Economic Inflation, interest rates, exchange rates, consumer confidence. Social Demographics, lifestyle trends, cultural attitudes. Technological Innovation, automation, R&D, diffusion of technology. Legal Employment law, health & safety, consumer protection. Environmental Sustainability, resource scarcity, carbon legislation.
1.3 Business Structure & Size
Ownership forms – sole trader, partnership, private limited, public limited.Organisational structures – functional, divisional, matrix, network.Scale – small, medium, large (based on turnover, staff numbers, assets).
2. Human Resource Management (AS Level)
2.1 HR Planning & Recruitment
Forecast labour demand (production plans, market growth).
Analyse labour supply (internal vs external).
Recruitment methods – internal promotion, advert, agency, online portals.
2.2 Training, Development & Appraisal
Induction, on‑the‑job, off‑the‑job, e‑learning.
Performance appraisal – objectives, 360° feedback, development plans.
2.3 Motivation & Leadership
Theory Key Drivers
Maslow’s Hierarchy Physiological → Safety → Social → Esteem → Self‑actualisation Herzberg’s Two‑Factor Hygiene (salary, conditions) vs Motivators (recognition, achievement) McGregor’s Theory X/Y Assumptions about employee nature → management style
2.4 Employee Relations & Legal Issues
Trade unions, collective bargaining, industrial action.
Key legislation – Employment Rights Act, Equality Act, Health & Safety at Work.
3. Marketing (AS Level)
3.1 Role of Marketing & Market Types
Creates, communicates, delivers value; links production with demand.
Market types – consumer, industrial, service, global, niche.
3.2 Market Segmentation, Targeting & Positioning (STP)
Segmentation criteria – demographic, geographic, psychographic, behavioural.Targeting – undifferentiated, differentiated, concentrated, micromarketing.Positioning – perceptual mapping, unique selling proposition (USP).
3.3 Market Research – Purposes (Re‑written)
Learning Objective
Identify the main features of a market – its size, growth, competitive environment, and the characteristics, wants and needs of its customers – and understand how reliable market data are gathered, evaluated and used to support strategic decision‑making.
Why Conduct Market Research?
Provides reliable evidence for strategic choices (entry, product development, pricing).
Reduces uncertainty by testing assumptions about demand and competition.
Enables benchmarking against rivals.
Uncovers opportunities for new products, market segments or repositioning.
Helps build detailed customer profiles (demographics, psychographics, buying behaviour).
1. Defining the Market
A clear market definition determines the denominator for size and share calculations.
Geographic scope – local, regional, national, international.Product scope – single product, product line, whole industry.Customer segment – age, income, business size, usage frequency.
2. Determining Market Size
Market size = total volume (units) or value (£/€, $…) sold in the defined market.
Sources: industry reports, trade associations, government statistics, company accounts, market‑research databases.
Example: UK soft‑drink market – 2 million hl of sales = £1.2 billion (value).
3. Measuring Market Growth
Growth shows change over time, usually as a percentage.
Growth‑rate formula
$$\text{Growth Rate (\%)}=\frac{\text{Size}_{\text{Current}}-\text{Size}_{\text{Previous}}}{\text{Size}_{\text{Previous}}}\times100$$
Use constant‑currency figures; adjust for inflation where relevant.
4. Analysing the Competitive Environment
Identify major rivals and estimate market shares.
Conduct a SWOT analysis for each key competitor.
Assess barriers to entry, pricing tactics, product differentiation, and likely reactions.
5. Identifying Customer Characteristics & Needs
Aspect What to Investigate
Demographics Age, gender, income, education, occupation, family size. Psychographics Lifestyle, values, attitudes, interests. Buying behaviour Purchase frequency, brand loyalty, price sensitivity, decision‑making process. Wants & needs Functional benefits, emotional benefits, unmet needs, desired improvements.
6. Primary vs Secondary Research
Research Type Strengths Weaknesses / When to Use
Primary (surveys, interviews, focus groups, observation)Tailored to the problem, up‑to‑date, control over methodology.
Costly, time‑consuming, possible small sample, risk of bias.
Secondary (published statistics, company reports, trade journals, online databases)Quick, inexpensive, large datasets, useful for benchmarking.
May be outdated, not specific to the problem, reliability varies.
7. Sampling Techniques
Why sample? Saves time/money while providing a representative picture.Common techniques
Random sampling – every element has equal chance; reduces selection bias.Stratified sampling – population divided into sub‑groups (e.g., age bands) and sampled proportionally; improves representativeness.Convenience sampling – easy to reach participants; quick but prone to bias.
Limitations – sampling error, non‑response bias, coverage error.
8. Assessing Data Reliability & Validity
Reliability Checklist What to Look For
Source credibility Reputable publisher, author expertise, peer‑reviewed. Timeliness Data collected recently; adjust for inflation or currency changes. Consistency Similar results across different sources or periods. Bias Identify commercial, political or methodological bias.
9. Quantitative vs Qualitative Analysis
Quantitative Qualitative
Numerical data – surveys with closed questions, sales figures, market‑share percentages.
Non‑numerical data – interviews, focus groups, observations, open‑ended responses.
Outputs: tables, charts, statistical measures (mean, median, variance), regression.
Outputs: themes, patterns, narratives, sentiment analysis.
Answers “how much?” or “how many?”
Answers “why?” and “how?”
10. Ethical Considerations
Obtain informed consent; explain purpose and use of data.
Guarantee anonymity or confidentiality where required.
Comply with data‑protection legislation (GDPR, Data Protection Act).
Avoid deceptive questioning or manipulation.
Store data securely and destroy it when no longer needed.
11. Sample Calculations
Market‑Growth Example
Year Market Value (£ million)
2022 120 2023 138
Growth rate = ((138‑120)/120)×100 = 15 %
Market‑Share Example
Firm Sales (£ million)
Alpha Ltd 55 Beta Co 35 Gamma plc 20
Total market = 55+35+20 = 110 million.
Alpha’s market share = (55/110)×100 = 50 % .
If a fourth competitor with £30 million sales is added, total = 140 million and Alpha’s share falls to ≈39 % – showing the importance of a clear market definition.
4. Operations Management (AS Level)
4.1 The Transformational Process
Inputs → Transformation (production, service delivery) → Outputs.
Key performance indicators – cost, quality, speed, flexibility, reliability.
4.2 Methods of Production
Method Typical Use Advantages Disadvantages
Job production Custom, low volume Highly flexible, high quality High cost, low efficiency Batch production Medium volume, similar products Economies of scale, moderate flexibility Setup time, inventory Flow (mass) production High volume, standardised Low unit cost, high efficiency Low flexibility, high capital Continuous production Utilities, chemicals Very low unit cost Very high capital, inflexible
4.3 Capacity, Inventory & Quality
Capacity planning – design capacity, effective capacity, utilisation rate.Inventory management – safety stock, EOQ (Economic Order Quantity) model.Quality tools – TQM, Six Sigma, benchmarking, ISO standards.
4.4 Outsourcing & Offshoring
Reasons – cost reduction, focus on core activities, access to expertise.
Risks – loss of control, quality issues, cultural differences.
5. Finance & Accounting (AS Level)
5.1 Need for Finance & Sources
Start‑up, working capital, expansion, research & development.
Sources – equity (share capital, retained earnings), debt (bank loans, bonds), internal (cash reserves).
5.2 Working Capital & Cash‑Flow Forecasting
Working capital = Current assets – Current liabilities.
Cash‑flow forecast – monthly inflows (sales, finance) vs outflows (costs, repayments). Positive cash flow = ability to meet short‑term obligations.
5.3 Break‑Even Analysis
Break‑Even (units) = Fixed Costs ÷ (Selling price per unit – Variable cost per unit).
Break‑Even (value) = Fixed Costs ÷ Contribution margin ratio.
5.4 Budgeting & Variance Analysis
Types – static, flexible, rolling forecasts.
Variance = Actual – Budgeted; analyse favourable/unfavourable causes.
6. External Influences & Business Strategy (A Level)
6.1 PESTLE & Porter’s Five Forces
Tool Purpose
PESTLE Analyse macro‑environment (Political, Economic, Social, Technological, Legal, Environmental). Porter’s Five Forces Assess industry attractiveness – threat of new entrants, bargaining power of buyers & suppliers, threat of substitutes, rivalry.
6.2 SWOT & Strategic Options
SWOT – internal Strengths/Weaknesses vs external Opportunities/Threats.Strategic options – Ansoff matrix (Market Penetration, Market Development, Product Development, Diversification).
Other models – BCG Growth‑Share, GE/McKinsey matrix, Blue‑Ocean strategy.
6.3 Corporate Planning & Crisis Management
Long‑term vision, mission, objectives, KPI setting.
Scenario planning – best case, worst case, most likely.
Crisis plan – risk identification, communication protocol, business‑continuity steps.
7. Human Resource Management (A Level)
7.1 Organisational Structures & Delegation
Flat vs tall hierarchy; centralised vs decentralised decision‑making.
Delegation – authority, responsibility, accountability, empowerment.
7.2 Leadership Theories
Theory Key Features
Trait Theory Innate qualities – confidence, integrity. Behavioural (e.g., Blake & Mouton Managerial Grid) Concern for people vs task. Situational/Contingency (e.g., Hersey‑Blanchard) Leadership style adapts to follower readiness. Transformational Inspires vision, encourages innovation.
7.3 HRM Strategy – Hard vs Soft
Hard HRM – people as resources, focus on performance, cost control.Soft HRM – people as valued assets, emphasis on commitment, development.
7.4 Managing Change & Technology
Change models – Lewin’s Unfreeze‑Change‑Refreeze, Kotter’s 8‑step.
Impact of AI, automation, remote working on recruitment, training and performance management.
8. Advanced Marketing (A Level)
8.1 Price Elasticity of Demand
Elasticity (E) = % Change in Quantity demanded ÷ % Change in Price.
E > 1 = elastic (price cuts increase revenue).
E < 1 = inelastic (price rises increase revenue).
8.2 Sales Forecasting Techniques
Qualitative – Delphi method, market surveys.
Quantitative – Time‑series analysis, moving averages, regression.
8.3 Full Marketing Plan (8‑step)
Situation analysis (SWOT, market research).
Marketing objectives (SMART).
Target market selection.
Positioning statement.
Marketing mix – product, price, place, promotion.
Budget & resource allocation.
Implementation timetable.
Control & evaluation (KPIs, ROI).
8.4 International Marketing & Entry Modes
Exporting, licensing, franchising, joint venture, wholly‑owned subsidiary.
Consider cultural, legal, economic differences; adapt the 4 Ps accordingly.
9. Operations Strategy (A Level)
9.1 Location Decisions
Factors – market proximity, labour costs, transport links, taxes, government incentives.
Techniques – centre‑of‑gravity, factor‑rating, break‑even location analysis.
9.2 Economies of Scale & Scope
Scale – lower average cost as output rises.
Scope – cost savings from producing a range of related products.
9.3 Quality Management Systems
TQM – continuous improvement, customer focus.
Lean – waste reduction (Muda), value‑stream mapping.
Six Sigma – DMAIC cycle (Define, Measure, Analyse, Improve, Control).
ERP – integrated information system for planning and control.
9.4 Capacity Planning & Bottleneck Management
Identify the constraint, exploit it, subordinate other processes, elevate capacity, repeat (Theory of Constraints).
10. Advanced Finance (A Level)
10.1 Financial Statements & Ratio Analysis
Statement Main Components
Income Statement Revenue, cost of sales, gross profit, operating expenses, profit before tax, net profit. Balance Sheet Assets (current & non‑current), Liabilities (current & long‑term), Equity. Cash‑Flow Statement Operating, investing, financing cash flows.
Key ratios – profitability (ROE, gross margin), liquidity (current ratio, quick ratio), solvency (debt‑to‑equity), efficiency (inventory turnover).
10.2 Investment Appraisal
Pay‑back period – time to recover initial outlay.Average Rate of Return (ARR) – average accounting profit ÷ initial investment.Net Present Value (NPV) – Σ (Cash inflowₜ / (1+r)ᵗ) – Initial outlay.Internal Rate of Return (IRR) – discount rate that makes NPV = 0.Decision rule – accept projects with NPV > 0, IRR > required rate of return.
10.3 Budgetary Control & Variance
Flexible budgets – adjust for actual activity levels.
Variance analysis – sales, material, labour, overhead; investigate causes.
11. Cross‑Topic Integration
Market research → Product Development : Customer needs identified in research feed directly into the new‑product stage of the product life‑cycle.Financial forecasts → HR planning : Projected sales growth determines recruitment and training requirements.Operations capacity → Pricing strategy : Excess capacity may justify a penetration‑price; limited capacity may support a premium price.Strategic analysis → Risk management : SWOT and PESTLE outcomes shape contingency plans and affect financing decisions.
12. Summary Checklist for the Whole Syllabus
Define the business’s purpose, objectives and stakeholder expectations.
Analyse the external environment (PESTLE, Porter) and internal strengths/weaknesses (SWOT).
Choose an appropriate organisational structure and HR strategy; plan recruitment, training and motivation.
Segment the market, select target customers, and position the offering.
Conduct market research – define market, measure size & growth, assess competition, understand customer needs; ensure data reliability and ethical standards.
Develop the marketing mix (4 Ps) and a full marketing plan, including budgeting and control.
Design an efficient operations system – select production method, manage capacity, inventory and quality, consider outsourcing.
Determine financing needs, evaluate sources, prepare cash‑flow forecasts and break‑even analysis.
Prepare financial statements, calculate key ratios and perform investment appraisal for strategic projects.
Integrate insights across functions to support coherent business strategy and risk‑managed decision‑making.
Suggested diagram: Flow from External Analysis → Internal Analysis → Strategic Options → Functional Plans (Marketing, Operations, HR, Finance) → Implementation → Monitoring & Control.