Specification points

Edexcel A-level Business 9BS0

342 points in 4 topics, with Edexcel's codes and titles.

Codes and titles are read by a script from Edexcel's published specification and have not been checked by a person. What each point covers is in the specification itself: Edexcel’s specification.

1 Marketing and people

1.1 Meeting customer needs
1.1.1 The market
1.1.1a Mass markets and niche markets
1.1.1b Dynamic markets
1.1.1c How competition affects the market
1.1.1d The difference between risk and uncertainty
1.1.2 Market research
1.1.2a Product and market orientation
1.1.2b Uses of primary and secondary market research
1.1.2c Limitations of market research, sample size and bias
1.1.2d Use of ICT to support market research
1.1.2e Market segmentation
1.1.3 Market positioning
1.1.3a Market mapping
1.1.3b Competitive advantage of a product or service
1.1.3c The purpose of product differentiation
1.1.3d Adding value to products/services
1.2 Market
1.2.1 Demand
1.2.1a Factors leading to a change in demand
1.2.2 Supply
1.2.2a Factors leading to a change in supply
1.2.3 Markets
1.2.3a The interaction of supply and demand
1.2.3b Supply and demand diagrams and price changes
1.2.4 Price elasticity of demand
1.2.4a Calculation of price elasticity of demand
1.2.4b Interpretation of numerical values of price elasticity of demand
1.2.4c The factors influencing price elasticity of demand
1.2.4d Price elasticity of demand and pricing
1.2.4e Price elasticity of demand and total revenue
1.2.5 Income elasticity of demand
1.2.5a Calculation of income elasticity of demand
1.2.5b Interpretation of numerical values of income elasticity of demand
1.2.5c The factors influencing income elasticity of demand
1.2.5d The significance of income elasticity of demand to businesses
1.3 Marketing mix and strategy
1.3.1 Product/service design
1.3.1a Design mix
1.3.1b Changes in the elements of the design mix to reflect social trends
1.3.2 Branding and promotion
1.3.2a Types of promotion
1.3.2b Types of branding
1.3.2c The benefits of strong branding
1.3.2d Ways to build a brand
1.3.2e Changes in branding and promotion to reflect social trends
1.3.3 Pricing strategies
1.3.3a Types of pricing strategy
1.3.3b Factors that determine the most appropriate pricing strategy for a particular situation
1.3.3c Changes in pricing to reflect social trends
1.3.4 Distribution
1.3.4a Distribution channels
1.3.4b Changes in distribution to reflect social trends
1.3.5 Marketing strategy
1.3.5a The product life cycle
1.3.5b Extension strategies
1.3.5c Boston Matrix and the product portfolio
1.3.5d Marketing strategies appropriate for different types of market
1.3.5e Consumer behaviour – how businesses develop customer loyalty
1.4 Managing people
1.4.1 Approaches to staffing
1.4.1a Staff as an asset; staff as a cost
1.4.1b Flexible workforce
1.4.1c Distinction between dismissal and redundancy
1.4.1d Employer/employee relationships
1.4.2 Recruitment, selection and training
1.4.2a Recruitment and selection process
1.4.2b Costs of recruitment, selection and training
1.4.2c Types of training
1.4.3 Organisational design
1.4.3a Structure
1.4.3b Types of structure
1.4.3c Impact of different organisational structures on business efficiency and motivation
1.4.4 Motivation in theory and practice
1.4.4a The importance of employee motivation to a business
1.4.4b Motivation theories
1.4.4c Financial incentives to improve employee performance
1.4.4d Non-financial techniques to improve employee performance
1.4.5 Leadership
1.4.5a Leadership
1.4.5b Types of leadership style
1.5 Entrepreneurs and leaders
1.5.1 Role of an entrepreneur
1.5.1a Creating and setting up a business
1.5.1b Running and expanding/developing a business
1.5.1c Innovation within a business (intrapreneurship)
1.5.1d Barriers to entrepreneurship
1.5.1e Anticipating risk and uncertainty in the business environment
1.5.2 Entrepreneurial motives and characteristics
1.5.2a Characteristics and skills required
1.5.2b Reasons why people set up businesses
1.5.3 Business objectives
1.5.3a Survival
1.5.3b Profit maximisation
1.5.3c Other objectives
1.5.4 Forms of business
1.5.4a Sole trader, partnership and private limited company
1.5.4b Franchising, social enterprise, lifestyle businesses, online businesses
1.5.4c Growth to PLC and stock market flotation
1.5.5 Business choices
1.5.5a Opportunity cost
1.5.5b Choices and potential trade-offs
1.5.6 Moving from entrepreneur to leader
1.5.6a The difficulties in developing from an entrepreneur to a leader

2 Managing business activities

2.1 Raising finance
2.1.1 Internal finance
2.1.1a Owner’s capital
2.1.1b Retained profit
2.1.1c Sale of assets
2.1.2 External finance
2.1.2a Sources of finance
2.1.2b Methods of finance
2.1.3 Liability
2.1.3a Implications of limited and unlimited liability
2.1.3b Finance appropriate for limited and unlimited liability businesses
2.1.4 Planning
2.1.4a Relevance of a business plan in obtaining finance
2.1.4b Interpreting cash-flow forecasts
2.1.4c Uses and limitations of cash-flow forecasts
2.2 Financial planning
2.2.1 Sales forecasting
2.2.1a Purpose of sales forecasts
2.2.1b Factors affecting sales forecasts
2.2.1c Difficulties of sales forecasting
2.2.2 Sales, revenue and costs
2.2.2a Calculation of sales volume and sales revenue
2.2.2b Calculation of fixed and variable costs
2.2.3 Break-even
2.2.3a Contribution
2.2.3b Break-even point
2.2.3c Break-even using contribution
2.2.3d Margin of safety
2.2.3e Interpretation of break-even charts
2.2.3f Limitations of break-even analysis
2.2.4 Budgets
2.2.4a Purpose of budgets
2.2.4b Types of budget
2.2.4c Variance analysis
2.2.4d Difficulties of budgeting
2.3 Managing finance
2.3.1 Profit
2.3.1a Calculating gross, operating and net profit
2.3.1b Statement of comprehensive income (profit and loss account)
2.3.1c Distinction between profit and cash
2.3.2 Liquidity
2.3.2a Statement of financial position (balance sheet)
2.3.2b Working capital and its management
2.3.3 Business failure
2.3.3a Internal and external causes of business failure
2.4 Resource management
2.4.1 Production, productivity and efficiency
2.4.1a Methods of production
2.4.1b Productivity
2.4.1c Efficiency
2.4.2 Capacity utilisation
2.4.2a Capacity utilisation
2.4.2b Implications of under- and over-utilisation of capacity
2.4.2c Ways of improving capacity utilisation
2.4.3 Stock control
2.4.3a Interpretation of stock control diagram
2.4.3b Buffer stocks
2.4.3c Implications of poor stock control
2.4.3d Just in time (JIT) management of stock
2.4.3e Waste minimisation
2.4.3f Competitive advantage from lean production
2.4.4 Quality management
2.4.4a Quality
2.4.4b Continuous improvement (Kaizen)
2.4.4c Competitive advantage from quality management
2.5 External influences
2.5.1 Economic influences
2.5.1a Effects of economic changes on businesses
2.5.1b The effect of economic uncertainty on the business environment
2.5.2 Legislation
2.5.2a Effects of legislation on businesses
2.5.3 The competitive environment
2.5.3a Competition and market size

3 Business decisions and strategy

3.1 Business objectives and strategy
3.1.1 Corporate objectives
3.1.1a Development of corporate objectives from mission statement/corporate aims
3.1.1b Critical appraisal of mission statements/corporate aims
3.1.2 Theories of corporate strategy
3.1.2a Development of corporate strategy
3.1.2b Aim of portfolio analysis
3.1.2c Achieving competitive advantage through distinctive capabilities
3.1.2d Effect of strategic and tactical decisions on human, physical, and financial resources
3.1.3 SWOT analysis
3.1.3a SWOT analysis
3.1.4 Impact of external influences
3.1.4a PESTLE (political, economic, social, technological, legal and environmental)
3.1.4b The changing competitive environment
3.1.4c Porter’s Five Forces
3.2 Business growth
3.2.1 Growth
3.2.1a Objectives of growth
3.2.1b Problems arising from growth
3.2.2 Mergers and takeovers
3.2.2a Reasons for mergers and takeovers
3.2.2b Distinction between mergers and takeovers
3.2.2c Horizontal and vertical integration
3.2.2d Financial risks and rewards
3.2.2e Problems of rapid growth
3.2.3 Organic growth
3.2.3a Distinction between inorganic and organic growth
3.2.3b Methods of growing organically
3.2.3c Advantages and disadvantages of organic growth
3.2.4 Reasons for staying small
3.2.4a Small business survival in competitive markets
3.3 Decision-making techniques
3.3.1 Quantitative sales forecasting
3.3.1a Calculation of time-series analysis
3.3.1b Scatter graphs and extrapolation
3.3.1c Limitations of quantitative sales forecasting techniques
3.3.2 Investment appraisal
3.3.2a Simple payback
3.3.2b Average (Accounting) Rate of Return
3.3.2c Discounted Cash Flow (Net Present Value only)
3.3.2d Calculations and interpretations of figures generated by these techniques
3.3.2e Limitations of these techniques
3.3.3 Decision trees
3.3.3a Constructing and interpreting decision tree diagrams
3.3.3b Calculations and interpretations of figures generated by these techniques
3.3.3c Limitations of using decision trees
3.3.4 Critical Path Analysis
3.3.4a Nature and purpose of Critical Path Analysis
3.3.4b Complete and interpret simple networks to identify the critical path
3.3.4c Calculate
3.3.4d Limitations of using Critical Path Analysis
3.4 Influences on business decisions
3.4.1 Corporate influences
3.4.1a Corporate timescales
3.4.1b Evidence-based versus subjective decision making
3.4.2 Corporate culture
3.4.2a Strong and weak cultures
3.4.2b Classification of company cultures
3.4.2c How corporate culture is formed
3.4.2d Difficulties in changing an established culture
3.4.3 Shareholders versus stakeholders
3.4.3a Internal and external stakeholders
3.4.3b Stakeholder objectives
3.4.3c Stakeholder and shareholder influences
3.4.3d The potential for conflict between profit-based (shareholder) and wider objectives (stakeholder)
3.4.4 Business ethics
3.4.4a Ethics of strategic decisions
3.4.4b Pay and rewards
3.4.4c Corporate Social Responsibility (CSR)
3.5 Assessing competitiveness
3.5.1 Interpretation of financial statements
3.5.1a Statement of comprehensive income (profit and loss account)
3.5.1b Statement of financial position (balance sheet)
3.5.2 Ratio analysis
3.5.2a Calculate
3.5.2b Using ratios in business decisions
3.5.2c The limitations of ratio analysis
3.5.3 Human resources
3.5.3a Calculate and interpret the following to help make business decisions
3.5.3b HR strategies for productivity and retention
3.6 Managing change
3.6.1 Causes and effects of change
3.6.1a Causes of change
3.6.1b Effects of change on businesses
3.6.2 Key factors in change
3.6.2a Organisational culture
3.6.2b Size of organisation
3.6.2c Time/speed of change
3.6.2d Managing resistance to change
3.6.3 Scenario planning
3.6.3a Identifying key risks through risk assessment
3.6.3b Planning for risk mitigation

4 Global business

4.1 Globalisation
4.1.1 Growing economies
4.1.1a Growth rate of the UK economy compared to emerging economies
4.1.1b Growing economic power of emerging regions
4.1.1c Implications of economic growth for individuals and businesses
4.1.1d Indicators of growth
4.1.2 International trade and business growth
4.1.2a Exports and imports
4.1.2b The link between business specialisation and competitive advantage
4.1.2c Foreign direct investment (FDI) and link to business growth
4.1.3 Factors contributing to increased globalisation
4.1.3a Reduction of international trade barriers/trade liberalisation
4.1.3b Political change
4.1.3c Reduced cost of transport and communication
4.1.3d Increased significance of global (transnational) companies
4.1.3e Increased investment flows (FDI)
4.1.3f Migration (within and between economies)
4.1.3g Growth of the global labour force
4.1.3h Structural change
4.1.4 Protectionism
4.1.4a Tariffs
4.1.4b Import quotas
4.1.4c Other trade barriers
4.1.5 Trading blocs
4.1.5a Expansion of trading blocs
4.1.5b Impact on businesses of trading blocs
4.2 Global markets and business expansion
4.2.1 Conditions that prompt trade
4.2.1a Push factors
4.2.1b Pull factors
4.2.1c Possibility of off-shoring and outsourcing
4.2.1d Extending the product life cycle by selling in multiple markets
4.2.2 Assessment of a country as a market
4.2.2a Factors in assessing a country as a market
4.2.3 Assessment of a country as a production location
4.2.3a Factors in assessing a country as a production location
4.2.4 Reasons for global mergers or joint ventures
4.2.4a Spreading risk over different countries/regions
4.2.4b Entering new markets/trade blocs
4.2.4c Acquiring national/international brand names/patents
4.2.4d Securing resources/supplies
4.2.4e Maintaining/increasing global competitiveness
4.2.5 Global competitiveness
4.2.5a The impact of movements in exchange rates
4.2.5b Cost competitiveness and differentiation
4.2.5c Skill shortages and their impact on international competitiveness
4.3 Global marketing
4.3.1 Marketing
4.3.1a Global marketing strategy and global localisation (glocalisation)
4.3.1b Different marketing approaches
4.3.1c Marketing mix and Ansoff's matrix in global markets
4.3.2 Niche markets
4.3.2a Cultural diversity
4.3.2b Features of global niche markets
4.3.2c Application and adaptation of the marketing mix (4Ps) to suit global niches
4.3.3 Cultural/social factors
4.3.3a Considerations for businesses
4.4 Global industries and companies (multinational corporations)
4.4.1 The impact of MNCs
4.4.1a Impact of MNCs on the local economy
4.4.1b Impact of MNCs on the national economy
4.4.2 Ethics
4.4.2a Stakeholder conflicts
4.4.2b Pay and working conditions
4.4.2c Environmental considerations
4.4.2d Supply chain considerations
4.4.2e Marketing considerations
4.4.3 Controlling MNCs
4.4.3a Factors in controlling multinationals