Introduction to Business

Aims

1. Understand the nature and purpose of business activity.
2. Describe the structure of business.
3. Understand the business objectives of the various stakeholders.
4. Understand the environment within which business operates and the services available to assist.
5. Define and describe the functional activities within an organisation and understand the importance of their interdependence.
6. Apply business theory and concepts to practical business problems.

I . Understand the nature and purpose of business and its classification by sector, activity and size.

2. Identify the advantages and disadvantages of different organisations in the private sector (sole trader, partnership, limited companies, PLC’s, franchises, charities); identify the advantages and disadvantages of different organisation in the public sector (nationalised industries, central government and local government departments).

3. Understand the hierarchy of objectives that exist in a business and appreciate the different stakeholder perspectives.

4. Understand the general influences on an organisation by conducting a PEST analysis (political, economic, social and technological influences); understand the specific influences that arise from stakeholder groups (employees, suppliers, customers, competitors, financial institutions government agencies and the public).

5. Identify and explain the services available to assist business (insurance, banking, sources of finance, consultancy, and government assistance).

6. Describe the factors that influence the location of a business. Demonstrate an understanding of the factors that influence the scale of production and the choice between different types of productive process (job, batch, flow, lean and cell production). Describe the need for and means to achieving quality. Demonstrate an understanding of the costs and benefits of holding stock and the need to control stock levels. Identify the benefits of a JIT (just in time) system of stock management and its role in promoting quality.

7. Define marketing, demonstrate its importance in terms of customer needs and the achievement of business objectives. Describe various methods of market research. Demonstrate an understanding of the marketing mix and how it relates to the product life cycle.

8. Identify sources of short, medium and long term finance available for business. Justify the use of different sources of finance in different situations. Define and understand the purpose of balance sheet and profit and loss statements. Differentiate between financial accounting and management accounting. Demonstrate an understanding of the use to which accounts may be put by the various stakeholders.

9. Understand the importance of human resources to an organisation and the need for human resource planning. Describe different methods of recruiting and selecting staff. Describe and comment upon the various means of remunerating employees (output-based wage, time-based wage, salary, commission etc.). Understand the health and safety issues concerning staff. Demonstrate an understanding of the importance of training and development both as a means of acquiring skills and as a means of motivating employees.

Method of Assessment:

By written examination. The pass mark is 40%. Time allowed 3 hours.

Seven questions of which four must be answered. All questions carry equal marks.