Professional Documents
Culture Documents
Unit code:
Y/502/5408
QCF Level 3:
BTEC National
Credit value:
10
Unit introduction
Learners new to the studying of business will already be familiar with organisations through having dealt
with them as customers or employees. One of the aims of this unit is to help learners to build on these
experiences and learn to walk in the shoes of owners, stakeholders and managers of organisations.
The unit introduces learners to a range of business activities. They will consider the purposes of different
organisations and the influence of stakeholders and how businesses organise themselves through strategic
planning and organisational structures.
Learners will then explore the dynamic nature of organisations through studying the impact of external
(political, legal and social) influences on business operations.
Next, they will study the fundamental economic principles that impact on businesses.
By studying two different business environments learners will gain some insight into how businesses operate
in different parts of the world and how the development of a global marketplace impacts on all businesses.
Learning outcomes
On completion of this unit a learner should:
Unit content
1 Know the range of different businesses and their ownership
Range of different businesses: local; national; international; global; public; private; not-for-profit/voluntary;
sectors of business activity (primary, secondary and tertiary)
Business purposes: supply of products or services; difference between profit and not-for profit organisations
Ownership: public, private and voluntary sectors; types of ownership (sole trader, partnerships, private
and public limited companies, government departments, government agencies, worker cooperatives,
charitable trusts); main implications of different types of ownership on businesses (extent of liability,
limitations to operation for public and charitable organisations)
Key stakeholders: customers; employees; suppliers; owners; trade unions; employer associations;
local and national communities; governments; influence of stakeholders on organisations
P1
P2
P3
P4
P5
P6
D2
PLTS: This summary references where applicable, in the square brackets, the elements of the personal,
learning and thinking skills applicable in the pass criteria. It identifies opportunities for learners to demonstrate
effective application of the referenced elements of the skills.
Key
IE independent enquirers
RL reflective learners
SM self-managers
CT creative thinkers
TW team workers
EP effective participators
Assessment
This is an introductory unit and most groups of learners would benefit from a staged approach to assessment,
with several small assignments rather than one large one.
It is important that suitable organisations are chosen for investigation, so that learners can acquire the information
they need to achieve the assessment criteria.
For the first two learning outcomes the selected business organisations should include both profit and
not-for-profit sectors and some variation in size. Learners responses to P1 should include an accurate, but not
necessarily detailed statement, as to the extent of owners liability for debts. For P2 learners should describe
each of the different types of stakeholders listed in the unit content for their selected organisations. For P3,
learners should describe both the organisational structure with functional areas, and how the organisation
makes strategic plans. For P4, learners should explain how the organisational structure and strategic planning
help the businesses to achieve their purpose and aims.
For M1 learners explain the points of view of the different stakeholders and link the points of view with the
aims and objectives of each organisations.
For D1 learners should evaluate the influence exerted by the different types of stakeholders for one organisation.
As an evaluation this should go beyond stating an opinion and include higher level skills such as using evidence
from different sources and assessing the validity of the evidence.
For learning outcome 3, the selected organisation(s) need to encompass different economic environments.
This could be through using one organisation and two different phases in the economic cycle or using two
organisations operating in different economic environments, perhaps in different parts of the world.
For P5, learners should include descriptions of at least two economic topics.
In M2, P5 is developed further to compare the challenges to selected business activities in two different
economic environments.
For D2, learners should build on M2 and evaluate the responsiveness of an organisation to different economic
environments. The advice given for D1 on the assessment of evaluate applies equally to this criterion.
For learning outcome 4, there are two options. The first is to select one business that has operations
in two different business environments such as a UK-based business that has a call centre in the Indian
sub-continent. Alternatively, one business can be selected from each of two different business environments.
Greater differences in political and social environments are likely to be more interesting for learners.
However it could be possible to use different countries in Europe and for some industries the differences
between different countries in the UK could be explored, so long as the differences are sufficient to create
different business environments.
For P6, learners could describe the influence of two different political environments which should include
aspects, selected for their relevance, from the topics listed under both political and legal sub-headings in
the Unit content. Business activities can be read as any activities carried out by the organisation to achieve
its purposes. Examples include recruitment of staff, product design, transport of goods, promotion of products
etc. Learners need to explain the influence of two different social environments on the business activities
of the organisation(s). Learners could select at least three of the most influential social features from each
environment rather than attempting to explain the impact of a large range of social features.
To achieve M3, learners should build on P6 to explain how the organisation (s) has adapted their activities
to suit different business environments. Learners are not required to explain all activities comprehensively
but should select at least three activities that have been adapted because of the political, legal and social
aspects of the business environment.
For D2, learners should develop their work from M3 and make justified recommendations for the
development of business activities in the two different business environments.
Edexcel BTEC Level 3 Nationals specification in Business
Issue 2 June 2010 Edexcel Limited 2010
Assignment title
Scenario
Assessment method
Level 3
Business Purposes
Business Resources
Business Organisations
Introduction to Marketing
Business Communication
Business and the Economic Environment
International Business
Business Markets and the Economy
Essential resources
For this unit learners should have access to a suitable business teaching environment with access to the
internet to carry out research. Tutors may consider building a bank of resource materials to ensure there is a
sufficient supply of relevant information across a range of business types and sectors.
Learners can generate evidence from a work placement or work experience. Other learners may have access
to information from family owned and run businesses.
Bevan J, Dransfield R, Coupland-Smith H, Goymer J and Richards C BTEC Level 3 National Business Student
Book 1 (Pearson, 2009) ISBN 9781846906343
Bevan J, Goymer J, Richards C and Richards N BTEC Level 3 National Business Student Book 2
(Pearson, 2009) ISBN 9781846906350
Coupland-Smith H and Mencattelli C BTEC Level 3 National Business Teaching Resource Pack
(Pearson, 2009) ISBN 9781846906367
Dransfield and Needham GCE AS level Business ISBN 0435401149
Jewell B An Integrated Approach to Business Studies (Longman, 2000) ISBN 0582405424
Letts Revise AS Business Studies (Letts Educational Ltd, 2004) ISBN 1843154242
Marcouse, Surridge, Watson and Swift Business Studies for A level (Hodder, 2008) ISBN 0340966904
Marcouse I and Lines D Business Case Studies, AS and A Level, 3rd Edition (Longman, 2002)
ISBN 0582406366
Palmer and Hartley The Business Environment (McGraw-Hill, 2006) ISBN 0077109902
Worthington and Britton The Business Environment (Financial Times/Prentice Hall, 2006) ISBN 0273704249
Journals
Websites
www.bbc.co.uk/business
www.bbc.co.uk/news
www.becta.org.uk
www.bized.ac.uk
www.careers-in-business.com
www.carol.co.uk
www.direct.gov.uk
www.fenc.org.uk
www.eubusiness.com
www.examstutor.com/business
www.jisc.org.uk
www.lsda.org.uk
www.learnthings.co.uk
www.nln.ac.uk
www.projectalevel.co.uk
www.rdn.ac.uk/news/headlines
www.s-cool.co.uk
www.statistics.gov.uk
Official UK statistics
www.thetimes100.co.uk
Broadcasts
10
Independent enquirers
Creative thinkers
generating ideas about the links between the different functional areas in
business organisations
describing how work in different areas of organisations supports business purposes
Reflective learners
Although PLTS are identified within this unit as an inherent part of the assessment criteria, there are further
opportunities to develop a range of PLTS through various approaches to teaching and learning.
Skill
Independent enquirers
planning and carrying out research into the different types of organisation
planning and carrying out research into the aims of organisations
Creative thinkers
Reflective learners
Team workers
working in a group to discuss ideas about functional areas and prepare materials
for presentations
taking responsibility for their own role
managing activities to reach agreements and achieve results
Self-managers
Effective participators
taking part in group activities, working with colleagues, supervisors and managers.
11
images
numbers
records
Mathematics
Understand routine and non-routine problems in a wide using numerical data in relation to business objectives
range of familiar and unfamiliar contexts and situations
that are in SMART terms
Identify the situation or problem and the mathematical
methods needed to tackle it
Select and apply a range of skills to find solutions
Use appropriate checking procedures and evaluate
their effectiveness at each stage
Interpret and communicate solutions to practical
problems in familiar and unfamiliar routine contexts
and situations
Draw conclusions and provide mathematical justifications
12
Skill
English
Speaking and listening make a range of contributions
to discussions and make effective presentations in a
wide range of contexts
Writing write documents, including extended writing writing materials to provide information about
pieces, communicating information, ideas and opinions, organisations
effectively and persuasively
producing labelled charts and diagrams showing the
structure of organisations and the links between
sections within organisations.
13
Unit 2:
Business Resources
Unit code:
D/502/5409
QCF Level 3:
BTEC National
Credit value:
10
Unit introduction
At the core of every organisation are the human, physical, technological and financial resources that enable
it to function. This unit will give learners a broad understanding of the importance organisations place on
managing their resources efficiently in order to achieve their objectives. It is important that learners are able
to relate their understanding of resource management to a real organisation. This will provide an essential
link between theory and practice.
Understanding how these resources are managed is one of the keys to assessing how well the organisation
is performing. The first part of this unit explores the range of human, physical and technological resources for
a selected organisation. Learners will investigate the importance of managing these resources efficiently. The
contribution that recruiting and retaining suitable staff can make to the organisations performance is examined.
The importance of managing the organisations physical and technological resources efficiently is also explored.
For an organisation to survive its finances need to be sound and secure. The second part of the unit explores
the sources of financial resources available to organisations. The level of an organisations performance can be
seen in its financial statements. The unit aims to develop knowledge and understanding of the financial statements
and it underpins other financial units in the qualification. This part of the unit focuses on the interpretation and
analysis of financial documents in order to highlight the need for the monitoring and control of costs and budgets.
It is important that learners appreciate that poor management of resources can have a negative impact on an
organisations performance.
Learning outcomes
On completion of this unit a learner should:
Unit content
1 Know how human resources are managed
Human resources: staffing to meet changing business demands; coordination of team resources to meet
targets; monitoring of team performance; liaison with other departments; establishment of professional
culture eg levels of formality, separation of professional from private activities; provision of appropriate
incentives; encouraging creativity and initiative; outsourcing versus in-house decisions
Maintenance of operation: adequate resources to meet tasks eg staffing, equipment, working capital,
facilities, administration; monitoring; troubleshooting and problem solving
Human resources: recruitment and retention; suitably skilled staff; contracts of employment; job descriptions
Employability skills: suitable qualifications; experience in similar role; knowledge of products/services;
experience of specific industry; effectiveness in meeting personal and team/departmental targets; ability
to observe and raise professional standards of production/service delivery
Personal skills: patient; hardworking; able to work as part of a team; good interpersonal skills; cooperating
with others eg line managers, colleagues; negotiation eg in seeking agreements, resolving conflicts,
agreeing targets, agreeing budgets; interviewing skills
P1
D1
P2
P3
P4
P5
P6
D3
P7
PLTS: This summary references where applicable, in the square brackets, the elements of the personal,
learning and thinking skills applicable in the pass criteria. It identifies opportunities for learners to demonstrate
effective application of the referenced elements of the skills.
Key
IE independent enquirers
RL reflective learners
SM self-managers
CT creative thinkers
TW team workers
EP effective participators
A study of how organisations are run can be useful. If a supermarket shelf is empty, it could be because the
item is unavailable from the supplier, it was not ordered, or there is a shortage of supermarket staff. Other
relevant examples include people visiting an electrical shop and requesting help or information about an
item they want to buy. They could find that they are unable to attract a salespersons attention because they
are busy or avoiding work by talking to a colleague. They may also find that even when they get hold of a
member of staff, they are unable to answer their questions. This could initiate a discussion about suitability
of staff. Management of business resources, such as facilities and technology, may be introduced at this point
as learners need to be aware that organisations need suitable buildings, facilities and equipment. This can
be covered by case studies and a visit to a local organisation. Many organisations have changed the way
they work due to evolving technology. They need staff that can set up and maintain computer networks,
and work areas need to be suitable for computer set-ups. In recent years, supermarkets have been changing
over to using bar code readers at tills, which is quicker than having to tap in numbers or prices. This has led
to differently designed till areas and work patterns. Staff now need to be trained to keep an eye on how
quickly the food is stacking up at the other end of the conveyor belt and sometimes need to slow down
a little to avoid overloading the customer areas. Companies also now need to be aware of the need to
protect electronic works, for example music and video, via copyrights and patents.
The unit provides an opportunity for learners to consider the availability of internal and external sources of
finance for a business. Learners should be encouraged to obtain information from banks (either in person or
online) or via websites concerning overdrafts, business loans, mortgages, etc. The unit also provides an early
introduction to the importance of managing budgets. Learners can draw on their own experiences to look at
how they manage their own finances. They can easily identify sources of their own income and consider how
they decide what is available for food, transport, clothes, etc. This can then be extended to a small business
exercise. Learners could work in groups to look at starting a small business, its start-up costs and work out a
budget. Alternatively, learners could be given a business scenario and allocated a particular budget. Over time,
they could be given items that must be covered by this budget and make decisions on how it is to be handled.
Learners need to study the purpose and use of financial statements. Learners must understand the purpose
of all items included in these statements and should understand how the items are calculated. This knowledge
can be gained by looking at ready-prepared statements. With the use of spreadsheet templates, learners could
also support and help in the preparation of these documents.
Another important aspect of financial management involves determining the solvency and profitability of
companies by using accounting ratios. These may be introduced as early warning signs of trading difficulty.
These ideas may be applied to case studies, and real business accounts may be adapted and simplified to
offer comparisons and allow calculation of key ratios. Skills could also be developed by using the spreadsheet
template, which could calculate ratios automatically.
to identify resources
Group presentation
Preparing group presentation
Giving group presentation
Overview of financial resources. Whole class
Assignment 3: The Role of Financial Resources
costs
budgets
balance sheets
accounting ratios
Assessment
For P1 and P2, learners, describe the recruitment documentation for a specified job role. They start by
identifying a particular job role and obtaining application forms and job description. They then draw up a list
of the requirements for the post and describe the attributes they already possess or expect to possess by the
end of the course.
For P3, learners should be aware of the main physical and technological resources required for the operation
of a selected business. If the school or college is used as the business, classrooms and computer suites would
be obvious examples.
For P4, the range of internal and external sources of finance should be more than just a list. The sources
should be relevant to the selected business
For P5, learners should be given statements and be able to provide a brief written interpretation of the key
elements of the trading and profit and loss account and the balance sheet, explaining the purpose of each
element.
For P6, learners should be able to use break-even charts. They could be presented with a budget that has
not been managed properly and identify the problems and suggest remedies.
For P7 learners should be able to use accounting ratios to show the financial state of a given business
For M1, learners should be able to show their understanding of how resources are managed by explaining
how good management of human, physical and technological resources can improve the performance of
the selected organisation.
For M2, learners should assess the importance of employability and personal skills to the selected organisation
when they are recruiting new staff and attempting to retain existing staff. It is important that learners are able
to link this assessment to their selected organisation. This may involve the selecting key skills that are most
appropriate to the needs of the organisation
For M3, learners will extend their answer to P7, demonstrating that they can apply the use of various financial
ratios. They should show the formulae of the ratios and their workings to demonstrate how they have arrived
at their answer.
For M4, learners should show an awareness of the problems that can arise if costs are not controlled to
budget. This can be demonstrated by looking at a given scenario and breaking down the various elements
of the budget to determine why it is overspent and by identifying the problems that this will create for the
selected organisation.
For D1, learners should assess the relative merits of the methods of the managing resources and to make
judgements on the effectiveness of these methods in improving the performance of the selected business
For D2, learners will be expected to provide additional knowledge and understanding about accounting ratios.
They would be expected to provide judgements about the sufficiency of ratios as a measure of how well a
company is performing.
For D3, learners will build on the evidence provided for M4. They will evaluate the problems they have
identified from poorly controlled budgets by looking at the potential consequences for organisation arising
from the budget variances.
Scenario
Assessment method
Recruiting and
Retaining the Right
People.
Completion of documentation
for a specific job role.
P3, M1, D1
The Impact of
Non-Financial
Resources.
Level 3
Business Purposes
Business Accounting
People in Organisations
Accounting Systems
Human Resource Management in Business
Training in the Business Workplace
Managing Physical Resources in a Business Environment
It is suggested that this unit should be completed before starting the Unit, Business Accounting.
This unit also links to the following draft National Occupational Standards in Accounting (February 2009),
particularly PS1 and PS2.
Business and Administration NOS, particularly Unit 303.
Bevan J, Dransfield R, Coupland-Smith H, Goymer J and Richards C BTEC Level 3 National Business Student
Book 1 (Pearson, 2009) ISBN 9781846906343
Bevan J, Goymer J, Richards C and Richards N BTEC Level 3 National Business Student Book 2
(Pearson, 2009) ISBN 9781846906350
Coupland-Smith H and Mencattelli C BTEC Level 3 National Business Teaching Resource Pack
(Pearson, 2009) ISBN 9781846906367
Atkin B and Brooks A Total Facilities Management (Blackwell Publishing, 2005) ISBN 1405127902
Dransfield R BTEC National in Business Student Book (Heinemann, 2004) ISBN 0435455354
Dyson J R Accounting for Non-Accounting Students (FT Prentice Hall, 2007) ISBN 0273709224
Fardon M, Adcock F, Birth I et al Advanced Business (Osborne Books Ltd, 2000) ISBN 1872962041
Hall L, Torrington D and Taylor S Human Resource Management (FT Prentice Hall, 2004) ISBN 0273687131
Health and Safety Executive Successful Health and Safety Management, 2nd Edition (Health and Safety
Executive, 1997) ISBN 0717612767
Holman P and Snee D The Improving Efficiency Pocketbook (Management Pocketbooks, 2000)
ISBN 1870471776
Institute of Leadership and Management Controlling Physical Resources (ILM Super Series), 4th Edition
(Pergamon, 2002) ISBN 075065886X
Mason R Finance for Non-Financial Managers in a Week (Hodder Arnold, 2003) ISBN 0340849622
Journal
www.bbc.co.uk/business
www.bbc.co.uk/news
www.becta.org.uk
www.bized.ac.uk
www.careers-in-business.com
www.carol.co.uk
www.direct.gov.uk
www.eubusiness.com
www.examstutor.com/business
www.fenc.org.uk
www.ferl.org.uk
www.jisc.org.uk
www.learnthings.co.uk
www.lsda.org.uk
www.marketingteacher.com/
Lessonstore
www.nln.ac.uk
www.peoplemanagement.co.uk
www.projectalevel.co.uk
www.rdn.ac.uk/news/headlines
www.statistics.gov.uk
Official UK statistics
www.s-cool.co.uk
www.thetimes100.co.uk
10
Independent enquirers
carrying out research into the human, physical and technological resources of
a selected organisation
Reflective learners
Although PLTS are identified within this unit as an inherent part of the assessment criteria, there are further
opportunities to develop a range of PLTS through various approaches to teaching and learning.
Skill
Independent enquirers
Creative thinkers
Reflective learners
Team workers
working in a group to discuss ideas about resources and prepare materials for
presentations
taking responsibility for their own role
managing activities to reach agreements and achieve results
Self-managers
Effective participators
planning and carrying out research into the different resources used in business.
11
Mathematics
Understand routine and non-routine
problems in a wide range of familiar and
unfamiliar contexts and situations
Identify the situation or problem and the
mathematical methods needed to tackle it
Draw conclusions and provide mathematical
justifications
English
Speaking and listening make a range
of contributions to discussions and make
effective presentations in a wide range
of contexts
Writing write documents, including
extended writing pieces, communicating
information, ideas and opinions, effectively
and persuasively
12
giving presentations
Unit 3:
Introduction to Marketing
Unit code:
Y/502/5411
QCF Level 3:
BTEC National
Credit value:
10
Unit introduction
Marketing is at the heart of every organisations activity. Its importance is also growing in the non-commercial,
public and voluntary sectors. Also, at the heart of marketing is the customer. This unit will introduce learners
to some of the tools and techniques all types of organisations use to achieve their objectives.
Firstly, learners will explore how different types of organisations use marketing principles to meet the needs
of their customers and achieve their objectives. The constraints under which organisations operate are
important and learners will study the legal requirements and voluntary codes that affect marketing.
Learners will then go on to investigate how organisations collect data through market research and turn
it into useful information which can be analysed and used to plan their marketing activities.
The segmentation and targeting of groups of customers is a key marketing technique and this is studied
in detail. This includes the different bases for segmentation of both consumer and business markets.
Next, learners will examine how a marketing mix is developed to meet the needs and aspirations of a
targeted group of prospective customers, before going on to develop a marketing mix for a new product
or service.
The unit gives a brief overview of the principles of marketing or can be used as a basis for further study
of specialist marketing units.
Learning outcomes
On completion of this unit a learner should:
Unit content
1 Know the role of marketing in organisations
Role: overall concept; marketing definitions
Objectives: private sector aims and objectives (survival, growth); public and voluntary sector aims and
objectives (service provision, growth of range of provision, cost limitation, meeting quality standards);
marketing objectives, eg market leadership, brand awareness, perceptions of customers or users; link
between organisational objectives and marketing objectives
Techniques: growth strategies (diversification, product development, market penetration or market
development, Ansoffs Matrix); survival strategies; branding (importance in influencing buyer behaviour,
brand building, positioning, brand extension); relationship marketing (definition, difference between
transactional marketing and relationship marketing, value of lifetime customer)
Limitations and constraints: legal (Sale of Goods Act 1979, The Consumer Protection from Unfair Trading
Regulations 2008, Consumer Credit Acts 1974 and 2006, Consumer Protection (Distance Selling)
Regulations, Data Protection Act 1998); voluntary, eg Code of Advertising Practice and Advertising
Standards Authority; pressure groups and consumerism; acceptable language
P1
M1 compare marketing
D1
techniques used in marketing
products in two organisations
P2
P3
make justified
recommendations for
improving the validity
of the marketing research
used to contribute to the
development of a selected
organisations marketing
plans.
P4
P5
P6
develop a coherent
marketing mix for a new
product or service.
[CT]
PLTS: This summary references where applicable, in the square brackets, the elements of the personal,
learning and thinking skills applicable in the pass criteria. It identifies opportunities for learners to demonstrate
effective application of the referenced elements of the skills.
Key
IE independent enquirers
RL reflective learners
SM self-managers
CT creative thinkers
TW team workers
EP effective participators
Learning outcome 2 includes an introduction to marketing research, and learners may enjoy conducting their
own research. However, if there is insufficient time for this, an exercise where learners plan research to meet
specified needs could be used to consolidate the teaching. Marketing research is covered in a separate specialist
unit. The rest of the outcome is about the marketing planning process and delivery would be enhanced if
learners could play the role of business-decision makers in a business game or a detailed case study.
Learning outcome 3 is about segmenting markets and targeting groups of potential customers. Learners
may find it interesting to examine the geo-demographic descriptors for different local postcodes. A practical
exercise where pairs of learners define target markets for different products could be used. Learners should
also consider the different segmentation and targeting methods used in business and again, a targeting exercise
could be useful.
In learning outcome 4 learners need to understand about the principles of a coherent marketing mix and there
are many examples of products where the marketing mix is targeted to the younger consumer. Learners could
analyse all aspects of the marketing mix and suggest how it has been designed to appeal to the target group.
This may be clearer if learners also examine products targeted to a different group. For the assessment of this
outcome, learners need to design their own marketing mix, so it would be useful for learners to be given a
step-by-step analysis of the process and perhaps a small group exercise in designing a marketing mix.
Small group work: analysis of a case study showing use of marketing research in the development of a new
product, leading to exercise on planning marketing research for a new market
Introduction to the marketing planning process model and development of plan for known organisation
Assignment 2: A Listed Marketeers, Part 2 pick one of the organisations studied in Assignment 1 and
research the organisations use of marketing research to contribute to the development of their marketing plans
Introduction to the use of PESTLE and exercise on using it for an organisation known to the whole class
Introduction to use of SWOT and exercise on using it for an organisation known to the whole class
Introduction to concepts of segmentation and targeting
Use of instruments eg ACORN for learners to assess the segments into which customers would be classified
Introduction to business-to-business (b2b) segments
Group exercise based on a case study where learners have to present proposals for segmenting and targeting
a business market
Introduction to the principles of branding
Exercise where learners identify the positioning of brands and examples of brand building and brand extension
Introduction to concept of relationship marketing
Assignment 3: Segmentation and Targeting learners select ranges of products from the organisations they
have been studying and analyse the target groups, branding and relationship marketing for six different products
Introduction to marketing mix
Discussion of a range of examples of different marketing mixes and how they have been designed to satisfy
different groups of customers
Assignment 4: Marketing Mix learners develop their own marketing mix for a selected new product
or service
Assessment
For most groups of learners, a staged approach to assessment would help them to achieve the unit. Most
of the criteria need to be investigated in the context of one or more real organisations and learners may
need support in selecting the organisations to use for their assignments.
For P1, learners should describe how the marketing techniques listed in the unit content are used in
marketing products or services in two different organisations. It is sufficient to select one product/service or
product/service range in each organisation. For P2, learners need to describe the limitations and constraints
under which marketers operate; this should include legal requirements and the use of voluntary codes and
constraints. Learners should relate these constraints to examples.
To achieve M1, learners need to demonstrate higher-level skills through comparing or finding the similarities and
differences between the use of marketing techniques in marketing products or services in two organisations.
For D1, this will be developed further into an evaluation of the effectiveness of the use of marketing
techniques in one organisation. Evaluation requires more than stating an opinion and should demonstrate
higher-level skills such as researching and interpreting data and using logical judgements about the validity
and reliability of the data used to evaluate the effectiveness of the marketing techniques.
For P3, learners should investigate the marketing research used by one organisation and link this to the
development of the organisations marketing plans. This could be based on the school or colleges own
marketing research and plans, as this would provide a good opportunity to obtain the information required
for P4. Alternatively, this could be based on a link with a local commercial or not-for-profit organisation.
For M2, learners should identify and explain the limitations of the marketing research methods used in the
selected organisation investigated.
To achieve D2, learners should make, and justify, recommendations for improving the validity of the
marketing research used in the selected organisation. Three sound recommendations with justifications
would be sufficient to achieve the criterion.
For P5, learners should explain why the different types of target groups are chosen for different products
or services. This should include products for both consumer and business to business markets and different
methods of segmenting the market. Six different target groups will be sufficient to achieve the criterion.
For P6, learners should develop a coherent marketing mix for a new product or service. The product
or service does not have to be entirely new; it could be an established product or service introduced
to a new market. The marketing mix should include at least the 4 Ps.
For M3, the marketing mix must be clearly targeted to a defined group of potential customers and needs to
be detailed and coherent so that product, price, place and promotion are all designed to appeal to the clearly
defined needs and aspirations of the target group of customers.
Assessment method
A Listed Marketers,
Part 1.
A Listed Marketers,
Part 2.
P5
Segmentation and
Targeting.
P6, M3
Marketing Mix.
Level 3
Business Purposes
Business Organisations
Business Resources
Business Communication
Creative Product Promotion
Market Research in Business
Relationship Marketing
Internet Marketing in Business
This unit also links to the following National Occupational Standards for Marketing and Sales for Non-Specialists,
particularly Units 1, 2, 3, 4, 5, 7.
Many businesses provide information about themselves. For example, Unilever, can be found at:
www.unilever.co.uk.
Bevan J, Dransfield R, Coupland-Smith H, Goymer J and Richards C BTEC Level 3 National Business Student
Book 1 (Pearson, 2009) ISBN 9781846906343
Bevan J, Goymer J, Richards C and Richards N BTEC Level 3 National Business Student Book 2
(Pearson, 2009) ISBN 9781846906350
Coupland-Smith H and Mencattelli C BTEC Level 3 National Business Teaching Resource Pack
(Pearson, 2009) ISBN 9781846906367
Cave S Consumer Behaviour in a Week (Hodder Arnold, 2002) ISBN 0340849711
Dibb S, Simkin L, Pride W M and Farrell O C Marketing Concepts and Strategies (Houghton Mifflin (Academic),
2005) ISBN 061853203X
Hall D, Jones R and Raffo C Business Studies, 3rd Edition (Causeway Press Ltd, 2004) ISBN 1902796837
Proctor T Essentials of Marketing Research (FT Prentice Hall, 2005) ISBN 0273694944
Journals
www.adassoc.org.uk
www.amazon.com
www.asa.org.uk
www.bized.ac.uk
www.cadburys.co.uk
www.cim.co.uk
www.easyjet.com
www.marketingteacher.com
www.statistics.gov.uk
Official UK statistics
www.swatch.com
www.tesco.com
10
Independent enquirers
Creative thinkers
Reflective learners
Although PLTS are identified within this unit as an inherent part of the assessment criteria, there are further
opportunities to develop a range of PLTS through various approaches to teaching and learning.
Skill
Independent enquirers
Creative thinkers
Reflective learners
Team workers
Self-managers
Effective participators
11
images
numbers
records
12
Skill
English
Speaking and listening make a range of contributions
to discussions and make effective presentations in a
wide range of contexts
Writing write documents, including extended writing writing materials to provide information about
pieces, communicating information, ideas and opinions, organisations marketing activities
effectively and persuasively
producing labelled charts and diagrams.
13
Unit 4:
Business Communication
Unit code:
H/502/5413
QCF Level 3:
BTEC National
Credit value:
10
Unit introduction
A business needs accurate and relevant information from internal and external sources in order to operate
profitably. Proper collection of data creates an environment where informed decisions can be taken for
the benefit of the business. In order to manage information effectively, there must be good communication
systems within the organisation. Staff must possess good verbal and written skills in order to communicate
and share information
Business information can be used to obtain competitive advantage and promote efficiency. Organisations generate
information internally, recording details of products manufactured, purchased and sold, and their associated costs.
Businesses use information to manage not only what is currently happening in the organisation but also to plan
for the future and ensure their survival. Information is collected, stored, manipulated, analysed and reported
to those who need to use it. People need to become skilled manipulators and users of information to ensure
organisations become more efficient and succeed in achieving their stated purposes. Since the development
of the personal computer and more recently the internet, communication methods have changed significantly.
Gathering relevant information from a range of sources is a skill that needs to be developed using electronic and
non-electronic sources.
Learning outcomes
On completion of this unit a learner should:
Understand the issues and constraints in relation to the use of business information in organisations
Unit content
1 Understand different types of business information
Types of information: verbal; written; onscreen; multi-media; web based
Purpose of information: updating knowledge; informing future developments; strategic direction; SWOT
analysis; offering competitive insight; communicating sales promotions; inviting support for activities
Sources of information: internal, eg financial, human resources, marketing, purchasing, sales, manufacturing,
administration; external, eg government, trade groupings, commercially provided, databases, research;
reliability of data sources
3 Understand the issues and constraints in relation to the use of business information
in organisations
Legal issues: relevant data protection legislation eg Data Protection Act 1998, Freedom of Information
Act 2000; other relevant legislation, eg Computer Misuse Act 1990
Ethical issues: codes of practice, eg on use of email, internet, whistle blowing; organisational policies;
information ownership
Operational issues: security of information; backups; health and safety; organisational policies; business
continuance plans; costs, eg additional resources required, cost of development; impact of increasing
sophistication of systems, eg more trained personnel, more complex software
P1
D1
P2
D2
P3
produce corporate
communications
[SM]
P4
P5
P6
P7
PLTS: This summary references where applicable, in the square brackets, the elements of the personal,
learning and thinking skills applicable in the pass criteria. It identifies opportunities for learners to demonstrate
effective application of the referenced elements of the skills.
Key
IE independent enquirers
RL reflective learners
SM self-managers
CT creative thinkers
TW team workers
EP effective participators
Presentation of information
Learners will receive or participate in:
a DVD/video on presentations
Assessment
For P1, learners need to investigate a business organisation in order to explain the different types of information
that are being used, where this information originates and its purpose.
For P2, learners need to present information using three different methods. This could be a verbal presentation
combined with a report on the information they obtained. The information could be a financial report from
a business which the learner could manipulate into a spreadsheet or chart. Alternative methods could include
a web page and a leaflet. Learners can then submit the information, indicating the nature of its intended
audience and its likely purpose. The information could be from the business organisation used for P1.
For P3, learners need to produce a corporate communication for a business organisation which could be an
advert for a poster or a leaflet communicating information about the business or one of its products or services.
The communication could be the information to be incorporated on a products packaging or a design for the
livery on delivery vehicles. The same business organisation used for P1 and P2 can be used.
For P4, learners will evaluate existing corporate communications for a product or service.
For P5, learners need to explain the legal and ethical issues relating to the use of business information. Learners
can use the same business, organisation or any other organisation, especially if it is difficult to obtain the
necessary information. Learners need to try and obtain the business organisations policies on ethical issues
in relation to business information and explain how that organisation complies with their legal obligations.
For P6, for the same or any other business organisation, the learner needs to explain the operational issues
in relation to business information. This would include how the organisation ensures their information is secure.
In addition, learners need to explain the health and safety issues associated with information management and
also the development of new systems to manage information, the possible need for more complex software
and staff training.
M1 requires learners to analyse different types of information and their sources. Again this can be based on
the information obtained from the business organisation that they have chosen to research and builds on the
work undertaken for P1.
M2 requires learners to analyse the legal, ethical and operational issues in relation to the use of information.
Again, learners will need to obtain information from a local organisation and build on the work for P5 and P6.
For D1, the learner has to evaluate the appropriateness of information used to make important strategic
decisions. They could look at marketing decisions made in an organisation and evaluate whether the information
used to make these decisions was appropriate. Similarly, financial performance of the company can lead to
strategic decisions being made. The learner should evaluate at least two sets of information which have been
used to make strategic decisions.
D2 requires learners to evaluate the effectiveness of business information and its communication as key
contributors to the success of a business organisation. Learners need to use illustrative examples as part
of their evaluation and should be encouraged to investigate organisations who have excellent communication
and information management systems. Comparisons can then be made with the situation in the organisation
that they have studied.
Scenario
Assessment method
Written report.
As above.
As above.
Written report.
As above.
Written report.
Assignment Task 1
Individual work describing
types of information, where
the information originates
from and the purpose of the
information.
Assignment Task 2
Individual work on corporate
communications of chosen
business.
P5, P6, M3
Assignment Task 3
Presentation of information
using two methods.
Assignment Task 4
Individual exercise outlining
electronic and nonelectronic communication.
Level 3
Business Purposes
This unit also links to the following National Occupational Standards for Business and Administration,
particularly Units 301, 310, 318, 320.
Essential resources
For this unit learners should have access to a suitable business teaching environment with access to the
internet to carry out research. Tutors may consider building a bank of resource materials to ensure there
is a sufficient supply of relevant information on the subjects of business communication and information
management. Learners can generate evidence from a work placement or work experience.
Bevan J, Dransfield R, Coupland-Smith H, Goymer J and Richards C BTEC Level 3 National Business Student
Book 1 (Pearson, 2009) ISBN 9781846906343
Bevan J, Goymer J, Richards C and Richards N BTEC Level 3 National Business Student Book 2
(Pearson, 2009) ISBN 9781846906350
Coupland-Smith H and Mencattelli C BTEC Level 3 National Business Teaching Resource Pack
(Pearson, 2009) ISBN 9781846906367
Argenti P Corporate Communication (Irwin McGraw-Hill, 1998) ISBN 0256-21723-8
Davies C Finding and Knowing: psychology, information and computers (Routledge, 2004) ISBN 0851424546
Lowe M Business Information at Work (Europa Publications, 1999) ISBN 0851424031
Niederst J Web Design in a Nutshell: A Desktop Quick Reference (OReilly, 2001) ISBN 0596001967
Websites
news.bbc.co.uk/1/hi/business
www.bized.co.uk
www.thetimes100.co.uk
10
Independent enquirers
Creative thinkers
asking questions to extend their thinking when researching their chosen organisation
Reflective learners
reviewing progress and acting on the outcomes when obtaining information from
an organisation
Effective participators
Although PLTS are identified within this unit as an inherent part of the assessment criteria, there are further
opportunities to develop a range of PLTS through various approaches to teaching and learning.
Skill
Independent enquirers
planning and carrying out research into communication and information within
organisations
Creative thinkers
Reflective learners
Team workers
Self-managers
Effective participators
11
images
numbers
records
12
Skill
Mathematics
Understand routine and non-routine problems in a wide using numerical data in relation to business information
range of familiar and unfamiliar contexts and situations
Identify the situation or problem and the mathematical
methods needed to tackle it
Select and apply a range of skills to find solutions
Use appropriate checking procedures and evaluate
their effectiveness at each stage
Interpret and communicate solutions to practical
problems in familiar and unfamiliar routine contexts
and situations
Draw conclusions and provide mathematical justifications
English
Speaking and listening make a range of contributions
to discussions and make effective presentations in a
wide range of contexts
Writing write documents, including extended writing writing reports about business information
pieces, communicating information, ideas and opinions,
producing labelled charts and diagrams showing
effectively and persuasively
business information.
13
Unit 5:
Business Accounting
Unit code:
M/502/5415
QCF Level 3:
BTEC National
Credit value:
10
Unit introduction
Understanding how a business operates and what makes it successful, requires knowledge of the accounting
process. Accounting involves recording business transactions and, this in turn, leads to the generation of financial
information which can be used as the basis of good financial control and planning. Inadequate record keeping
and a lack of effective planning ultimately lead to poor financial results. It is vital that owners and managers of
businesses recognise the indications of potential difficulties. Remedial action can then be taken.
The unit is divided into two parts. The first develops an understanding of the accounting processes necessary
to provide accurate and relevant financial information. The second part covers the practical aspect of carrying
out those accounting activities.
Learners will be introduced to accounting terminology as they study the purpose and function of accounting
and consider the various categories of business income and expenditure. It is important to know the sources of
an organisations income and the nature of its expenditure, as this clarifies the basis of its profitability and enables
more effective control of the business. Control begins with the planning process and learners will study the use
of a cash flow forecast which requires managers to set cash flow targets that can be monitored and adjusted on
a regular basis. Learners will consider the effective management of cash flow and the implications of cash flow
problems. The link between business failure and cash flow problems will be highlighted.
The measurement of an organisations financial performance and position requires an understanding of a basic
profit and loss account and balance sheet with this understanding learners can analyse profitability, liquidity and
efficiency of the organisation through the application of ratio analysis. Analysis will always require comparison
of current figures with those from a previous accounting period, or those of a similar business organisation.
Learners will discover how to carry out ratio analysis as well as the meaning and implication of the figures.
Learning outcomes
On completion of this unit a learner should:
Understand the purpose of accounting and the categorisation of business income and expenditure
Unit content
1 Understand the purpose of accounting and the categorisation of business income
and expenditure
Purpose: record transactions; monitor activity; control; management of the business (planning,
monitoring, controlling); measurement of financial performance (gross profit, net profit, value
owed to and by the business)
Capital income: sole traders; partners; shares; loans; mortgages
Revenue income: sales (cash and credit transactions); rent received; commission received
Capital expenditure: fixed assets (land and buildings; office equipment; machinery; furniture and fittings;
motor vehicles); intangibles eg goodwill, patents, trademarks
Revenue expenditure: premises costs eg rent, rates, heating and lighting, insurance; administrative costs
eg telephone charges, postage, printing, stationery; staff costs eg salaries, wages, training, insurance,
pensions; selling and distribution costs eg sales staff salaries, carriage on sales, marketing; finance costs
eg bank charges, loan and mortgage interest; purchase of stock (cash and credit transactions)
P1
P2
P3
P4
P5
D1
D2
PLTS: This summary references where applicable, in the square brackets, the elements of the personal,
learning and thinking skills applicable in the pass criteria. It identifies opportunities for learners to demonstrate
effective application of the referenced elements of the skills.
Key
IE independent enquirers
RL reflective learners
SM self-managers
CT creative thinkers
TW team workers
EP effective participators
Simple calculations and exercises, using appropriate performance ratios and based on simulations, must be
used to help build up learners analytical skills. They will use profitability ratios to analyse the profit and loss
account, and liquidity and efficiency ratios to analyse the balance sheet. The subsequent review of business
performance will be based on case studies of real businesses, although simulation could be used where this
is not possible. Analysis and evaluation of the results must be carried out through group work, which will
be used to produce a multi-media presentation.
Learners should understand the new requirements under IAS and be aware that although at the time of
accreditation of this specification only public companies have to comply with IAS.
Research
Tutorial support and feedback
Supervised assignment work
Non-supervised study time and completion of assignments
Assessment
To achieve P1, learners will describe clearly the main purpose of accounting for an organisation. The
description may be brief but should be accurate and incorporate historical data in order to be able to check
on current financial performance and position, as well as the planning aspect of management accounting.
For P2, learners will be expected to explain the different categories of capital income, capital expenditure,
revenue income and revenue expenditure as listed in the unit content. This may be achieved in a number
of ways. For example, learners could examine a specific type of organisation, identifying the likely income
and revenue and indicating in each case whether it is of a capital or revenue nature. They should also describe
clearly what each category means. At this stage, learners are not expected to calculate profit or to know the
impact of income and expenditure items on profit.
For P3, learners should construct a 12-month cash flow forecast from the information given in a scenario,
accurately calculating each months receipts, payments, opening and closing balances. For M1, learners should
comment on the cash flow, highlighting any problems that are evident, such as a shortage of cash resulting
from costly capital expenditure in one month. For D1, learners will make appropriate recommendations
to solve the cash flow problems, such as re-timing large payments or arranging an overdraft. Learners
should show awareness of the dangers and costs of poor financial planning.
For P4, learners will prepare a profit and loss account and balance sheet for an organisation. They will also
show how gross profit and net profit are calculated by indicating the kinds of income and expenditure that
are included. Learners will be presented with a trading and profit and loss account and a balance sheet for
a business organisation, which should be set out using the vertical style. Learners will label the cost of goods
sold section and the overheads section of the profit and loss account.
For P5, learners will use ratio analysis to measure profitability, liquidity and efficiency of a given organisation,
outlining clearly what is meant by these terms including the meaning and relevance of each ratio. For M2,
learners will identify the accounting ratios they will use to analyse profitability, liquidity and efficiency and
calculate these accurately, based on the trading and profit and loss account and balance sheet. The relevant
accounting ratios from the previous year, or from another similar type of business organisation, will be given
to learners. For D2, learners will demonstrate a good understanding of the meaning of the accounting
ratios used by comparing the figures calculated with those given. Learners will work in groups to evaluate
the performance and position of the business organisation, based on the ratio analysis, giving appropriate
supporting evidence for any conclusions. Learners could present their evidence and findings as part of
a group using a PowerPoint presentation or OHTs.
Assignment title
Scenario
Assessment method
Cash Flow.
Controlled assignment in
class. Individual assignment
covering costs and expenses,
completing a cash flow, then
something happens to cause
cash flow problems, actions
recommended.
P4
P5, M2, D2
Using Ratios.
Level 3
Business Resources
Financial Accounting
Management Accounting
Accounting Systems
Computer Applications for Financial Management.
This unit should be delivered before any other specialist finance units.
This unit also links to the following draft National Occupational Standards for Accounting, particularly FA1,
FA2, FA3, FA4, FA5, MA4.
Essential resources
Learners can find information using company annual reports, journals, magazines, company websites
and newspapers.
Access to a range of information resources to complete investigative assignments and case studies will be
essential, including relevant CD ROMs and the internet, as will be access to computers for research and
preparing cash flows (using a spreadsheet package) This will enhance the delivery of this unit. Learners will
also need access to relevant paper-based research material including published financial reports and books.
Brammer J, Cox D, Fardon M and Penning A Active Accounting (Osborne Books, 2002) ISBN 1872962378
Cox D Business Accounts (Osborne Books, 2004) ISBN 1872962634
Cox and Fardon M Management of Finance (Osborne Books, 1997) ISBN 1872962238
Dyson J R Accounting for Non-Accounting Students (FT Prentice Hall, 2007) ISBN 0273709224
Journals
www.accountingtechnician.co.uk
www.accountingweb.co.uk
news.bbc.co.uk/1/hi/business
www.bized.co.uk
www.canterbury.gov.uk
www.thetimes100.co.uk
www.tutor2u.net/business/accounts
Broadcasts
Independent enquirers
Creative thinkers
Reflective learners
Team workers
Self-managers
Although PLTS are identified within this unit as an inherent part of the assessment criteria, there are further
opportunities to develop a range of PLTS through various approaches to teaching and learning.
Skill
Independent enquirers
planning and carrying out research into the different types of business finances
Creative thinkers
Reflective learners
Team workers
Self-managers
Effective participators
tabulating information
preparing accounts
images
numbers
records
10
Skill
Mathematics
Understand routine and non-routine problems in
a wide range of familiar and unfamiliar contexts and
situations
English
Speaking and listening make a range of contributions
to discussions and make effective presentations in a
wide range of contexts
Writing write documents, including extended writing writing materials to provide information about business
pieces, communicating information, ideas and opinions, change
effectively and persuasively.
producing accounts and diagrams showing business.
11
Unit 7:
Management Accounting
Unit code:
J/502/5419
QCF Level 3:
BTEC National
Credit value:
10
Unit introduction
Whether an organisation is successful and long established or a business start-up, one of the most important
aspects of its management is effective financial planning and control. This is known as management accounting
and it builds on historical accounting information provided by financial accounts. A sound understanding of
costs and cost accounting is an essential part of managing finances.
Learners need to understand the nature of costs and the impact on those costs of expanding the organisation
or increasing business activity. Appropriate pricing of an organisations products or services will play a large part
in its future profitability. This unit aims to help learners to understand how management accounting begins with
planning the activity levels and establishing the costs, incomes and profits for future periods. Break-even analysis
allows managers to assess optimum activity levels whilst historical data can be used to look for trends that can
forecast more accurately the figures that are used in budgets.
Simply preparing financial forecasts is not sufficient to keep control of a business organisation will then want to
compare actual activity levels, costs and incomes with those that were planned. The management accountant
will calculate and consider the differences between budgeted and actual figures. This will form the basis of
management decisions which are used to steer the business back towards its planned targets.
On completion of this unit, learners will have a good appreciation of the skills and understanding necessary
to manage the finances of an organisation. They will be able to assess the problems highlighted by variance
analysis and make realistic decisions on the likely courses of action.
Learning outcomes
On completion of this unit a learner should:
Understand how production costs are determined and used to calculate prices
Be able to use appropriate statistical information to review and predict business performance
Unit content
1 Understand how production costs are determined and used to calculate prices
Costs: direct costs (raw materials, unfinished goods, direct labour costs, direct expenses); variable costs;
depreciation; semi-variable costs; stepped costs; indirect costs; fixed costs; cost centres; profit centres;
non-production (service) department overheads; overhead allocation; apportionment; overhead
absorption rate; absorption costing; activity-based costing; marginal costing; standard costing
Prices: cost plus; discounting; impact of pricing policies on production and costs; income
D1
D2
P1
P2
P3
P4
P5
PLTS: This summary references where applicable, in the square brackets, the elements of the personal,
learning and thinking skills applicable in the pass criteria. It identifies opportunities for learners to demonstrate
effective application of the referenced elements of the skills.
Key
IE independent enquirers
RL reflective learners
SM self-managers
CT creative thinkers
TW team workers
EP effective participators
More importantly, current business performance can be analysed and better understood by considering
historical accounting data and statistical data. Comparative results are always more meaningful, and this
is where ratio analysis is so important. Interpretation of the final accounts from previous years enables an
organisation to calculate liquidity, profitability, efficiency and gearing ratios. Compared over time, these ratios
give an accurate picture of past performance which can be compared with current performance. Eventually,
they will provide an accurate basis to predict future performance.
For learning outcome 3, learners will be presented with statistical information that allows them to calculate
relative changes over time. They will be able to observe trends and seasonal variations through calculating
moving averages. Price indices will be used to remove the effects of inflation from previous periods data,
giving a more accurate picture of actual current performance. Learners will learn how to calculate moving
averages and use past and current trends to predict future trends. The impact of these trends on future
sales and costs will be calculated to provide informed forecasts. Learners will work on case studies in small
groups and will use the internet to check on current relevant indices, while making budget adjustments.
Case studies from websites such as Bized will give learners more relevant accounting information about
individual companies. Learners will read, and combine, information about a company from two different
sources, including the internet and published financial reports. They will produce a report of the key
accounting information.
Learning outcome 4 covers the initial preparation of budgets and their subsequent comparison with actual
figures. Organisations begin with a sales budget and all other budgets will follow from this, including budgets
for production, purchases, debtors, creditors and cash. Departmental budgets may be consolidated to produce
one company budget. Ultimately, these budgets give the information needed for the master budget and it is vital
that learners understand how they are so closely linked. Budget preparation will be demonstrated and learners
will then continue the calculations using case studies and simulations. The use of computerised spreadsheets will
allow learners to link budgets directly and then observe the effects on the budgets of changes to sales volume,
prices or costs. Learners will discuss, in small groups, any assumptions made for each budget and consider any
strengths and weaknesses. Learners will also calculate and comment on variances between budgeted and actual
figures. Group discussion will enable learners to consider the implications of adverse and favourable variances
before suggesting decisions that might be made to address the differences. For an organisation, budgetary
control is a key factor in many financial decisions. Learners must be encouraged to examine budgets and
variances critically.
Formal theory input on using appropriate statistical information to review and predict business performance
Practical class exercises for application of theory work on scenarios
Research and group work
Assignment 3: Measuring Business Performance
Research
Supervised assignment work
Non-supervised study time and completion of assignments
Assessment
The practical activities should generate assessment evidence. Carefully planned assignments will include a
number of calculations and some analytical or evaluative comments. Assessment of the learning outcomes
might involve three or four assignments, but could be combined into two assignments.
For P1, learners must explain clearly the main costs elements and the nature of those costs including variable,
fixed and semi-fixed (semi-variable). They should give examples of costs relevant to the product in question.
They should mention the absorption of overheads as well as marginal costs, although a distinction between
traditional and modern absorption costing methods (ABC) is not required. They should describe at least two
methods of setting the price, including cost.
For P2, learners should be given the relevant information in a case study and they will explain what is meant
by break-even analysis. They will carry out break-even analysis, calculating the accurate break-even point from
the information on direct costs, selling price and overheads, using the correct formula. They will also calculate
margin of safety and target profit levels of activity. They will prepare a break-even chart to show the same
results in diagrammatic form, labelling break-even point, budgeted activity level, margin of safety, area of profit
and area of loss. P2, M1 and D1 are linked. P1 could be linked with P2, M1 and D1 using a larger assignment.
For P3, learners will need to describe how an organisations previous years data on sales income and costs
can be used initially to monitor current business performance and assess its relative success based on current
data. They will also need to explain how historical data can be used to detect trends, through the use of
moving averages and appropriate indices. They should explain how this statistical information is used in
forecasting future trends and business performance. P3 links with P4 and M2.
For P4, learners will be given a case study with some historical accounting information as well as an appropriate
price index. Learners will calculate any relevant trend and then apply that trend when calculating the budgeted
figures for a future accounting period. The budget might be for sales, production or cash. Learners should
prepare a budget in an appropriate tabular format and show evidence of having calculated the moving average
accurately and applied a trend to the forecast figures. P4 links with criteria P3 and M2.
For P5, learners will describe clearly the target-setting nature of preparing budgets and the subsequent
monitoring process involving comparing budgeted figures with actual figures. Learners will emphasise the
importance of calculating and analysing the variances, by trying to understand their likely causes. They will
need to describe how management action or decision making will follow in order to ensure budgetary control.
P5 links with D2.
For M1, learners will work with the break-even figures calculated in the case study for P2 and will decide on
an appropriate selling price for a product and an activity (production) level. Learners will make their decisions
on the basis of appropriate cost mark-up, current market prices, break-even point and the required margin
of safety. Other factors might be included in the information, but learners are expected to identify the most
important ones when making their decisions.
For M2, learners will identify the different factors that can influence the figures used in a budget including
production, sales, costs and profits in previous accounting periods, changes over time, moving averages,
seasonal variations, price indices and performance and trends detected in previous accounting periods.
For M3, learners will identify the likely effects of changes that would occur in a budget if costs and selling
price increased or decreased. Learners would base this on the budget prepared for P4 and would be
expected to identify cost increases causing increases in overall costs and reductions in profits. They would
also be expected to identify that an increase in costs might require a change to the selling price, where that
price is based on cost plus. Learners might add that changes in costs would impact on the break-even point,
necessitating an increase in budgeted activity levels to maintain profits.
For D1, learners will review the information used in carrying out break-even analysis and they will explain the
limitations of these techniques. They should draw out any inaccurate assumptions the relationship between
costs and income remaining the same at all levels of activity. They should also identify other limitations, such as
assumptions that all units produced will be sold, that there is only one product and that all products make the
same contribution. External factors such as the effects of inflation and interest rates might also be pertinent.
For D2, learners are expected to suggest possible budget variances, such as an increase in direct materials
costs, and to consider likely causes such as the purchase of faulty materials causing wastage. Learners
should then go on to suggest, for each possible variance, suitable management decisions or actions such as
changing the supplier or buying better-quality materials. This criterion could be achieved through a case study
where budgeted and actual figures are already given so that the learner has to calculate variances and make
appropriate observations. Learners will be asked to work in groups and make a presentation. Learners must
demonstrate a good understanding of the issues and the fact that this is probably the most important aspect
of budgeting and budgetary control.
Scenario
Assessment method
P1
Production Costs.
P2, M1, D1
Breakeven.
P3, M2
Measuring Business
Performance.
Level 3
Business Resources
Business Accounting
Financial Accounting
Accounting Systems
Computer Applications for Financial Management
Essential resources
Learners can find information using company annual reports and websites, journals, magazines and newspapers.
Access to a range of information resources to complete investigative assignments and case studies will be
essential, including relevant CD ROMs and the internet, as will be access to computers for research and
preparing cash flows (using a spreadsheet package) This will enhance delivery of this unit. Learners will also
need access to relevant paper-based research material including published financial reports and books.
Brammer J, Cox D, Fardon M and Penning A Active Accounting (Osborne Books, 2002) ISBN 1872962378
Dyson J R Accounting for non-Accounting Students (Prentice Hall, 2007) ISBN 0273709224
Fardon M and Cox D Accounting (Osborne Books, 1998) ISBN 1872962289
Journals
Accountancy (CCH)
Accountancy Age (VNU Business Publications)
Accounting Technician (Centurion Publishing Group)
PQ Magazine (PQ Publishing)
Websites
www.accountancyage.com
www.accountingtechnician.co.uk
www.accountingweb.co.uk
news.bbc.co.uk/1/hi/business/default.stm
www.bized.co.uk
www.bizhelp24.com
www.businesslink.gov.uk
www.canterbury.gov.uk
www.statistics.gov.uk
www.thetimes100.co.uk/
www.tutor2u.net
Broadcasts
Independent enquirers
Creative thinkers
Reflective learners
Although PLTS are identified within this unit as an inherent part of the assessment criteria, there are further
opportunities to develop a range of PLTS through various approaches to teaching and learning.
Skill
Independent enquirers
planning and carrying out research into the different types of businesses
Creative thinkers
Reflective learners
setting goals, with success criteria, for researching business finances and frameworks
inviting feedback on their own work and dealing positively with praise, setbacks
and criticism
evaluating their experiences and learning to inform future progress
Team workers
Self-managers
Effective participators
10
tabulating information
images
numbers
records
11
Skill
Mathematics
Understand routine and non-routine problems in
a wide range of familiar and unfamiliar contexts and
situations
English
Speaking and listening make a range of contributions
to discussions and make effective presentations in a
wide range of contexts
Writing write documents, including extended writing writing materials to provide information about business
pieces, communicating information, ideas and opinions, change
effectively and persuasively.
producing accounts, graphs and tables, together with
reports.
12
Unit 16:
Human Resource
Management in Business
Unit code:
K/502/5445
QCF Level 3:
BTEC National
Credit value:
10
Unit introduction
Human resource management is a dynamic activity in any organisation as it takes place against a changing
economic, technical, legal and social background. It is important for learners to appreciate that effective human
resource management means getting the best out of the people who work for an organisation in order to
ensure the organisation fulfils its purposes, whether it is a football club winning the premiership, or a hospital
increasing the success rates for medical operations.
Many organisations say that their employees are their most valuable resource because of their skills, knowledge
and attitudes. As labour is both an expensive and valuable resource, it is important to ensure it is planned and
that the best value is obtained from employees contributions. Human resource managers have to plan their
human resource requirements against a background of internal and external factors which are dynamic and
constantly changing. The first part of this unit introduces learners to the factors that influence human resource
managers when they are planning current and future human resource requirements. It is important to ensure
that once staff have been recruited, their contribution to the organisation is maximised. Learners will develop
their understanding of the importance organisations place on gaining the cooperation and commitment of their
employees. Managers need to understand how to motivate employees and gain their commitment to the
organisation. The unit introduces learners to motivational theory, employee involvement techniques and the
role that reward systems can play in gaining commitment from employees. Learners will explore the methods
that managers use to measure and manage the performance of their employees.
Learning outcomes
On completion of this unit a learner should:
Know the factors that are involved in human resource planning in organisations
Unit content
1 Know the factors that are involved in human resource planning in organisations
Internal planning factors: organisational needs eg demand for products and services, new products and
services, new markets, technological change, location of production; skills requirements; workforce
profiles (age, gender, ethnicity, ability)
External planning factors: supply of labour (international, national, regional, local, long-term trends,
short-term trends); labour costs; workforce skills; government policy; labour market competition;
changing nature of work; employee expectations eg full-time, part-time, permanent, temporary, casual
work; impact of automation; demand for products and services
Employee skills: people as organisational resources; skill sets eg job specific, generic; skill acquisition; skills
audit, skill transferability; impact of technology
P1
P2
P3
P4
P5
D1
D2
PLTS: This summary references where applicable, in the square brackets, the elements of the personal,
learning and thinking skills applicable in the pass criteria. It identifies opportunities for learners to demonstrate
effective application of the referenced elements of the skills.
Key
IE independent enquirers
RL reflective learners
SM self-managers
CT creative thinkers
TW team workers
EP effective participators
Visiting speaker from local organisation on motivational practice and reward systems
Assignment launch
Writing up report
Assessment
For P1, learners should examine how an organisation is developing and how changes which may arise from
internal decisions and external events can affect the direction the organisation is moving in. This means human
resourcing needs to be planned accordingly. There may be a gap between the demand for and supply of
particular skills. Skills of existing staff can be audited and measures can be taken to bridge the perceived skills
gap. As supermarkets move into selling financial services or pharmaceutical dispensing, different employee
skills are needed.
Competition might lead to leaner, fitter organisations with flatter hierarchies where employees have more
autonomy and a wider range of skills. Regulatory pressures (such as in the caring professions) mean that only
employees with specific certificated skills can be employed to do certain jobs. Nurses are now trained to
take over more work from doctors and can write prescriptions. The consequences of slimming down the
civil service and merging Customs and Excise and the Inland Revenue require human resources to plan 10
years ahead, as significant expertise at a senior level is being lost. There will be examples of national and local
organisations that are planning to use human resources in a way that takes account of the internal and external
changes that impact on them. Evidence is likely to be in the form of a report or an article resulting from an
investigation into an organisation. (P1, P2 and M1are linked.)
For P2, learners will need to look at an organisation and consider the skill sets required of the employees.
Employees begin work with a set of skills that will need to be adapted and modified as their skill requirements
develop as organisations develop. Technological change, for example, has required many people to retrain
or acquire new capabilities. Airline pilots learn to use fly-by-wire technologies and shelf stackers use hand-held
data terminals to count and re-order stock. These are techniques that were not used a decade ago. Evidence
is likely to be in the form of a report or an article resulting from an investigation into an organisation. (P1, P2
and M1 are linked.)
For P3, learners will show how the ideas of writers on motivation have shaped the way organisations motivate
their employees. Some reward systems emphasise payment by results and are influenced more by ideas
of scientific management and Taylorism. Other reward systems emphasise the personal and social nature
of motivation and draw on ideas from Maslow and Herzberg. Organisations use reward systems because
they believe they work in motivating employees, so a case study is likely to illustrate why an organisation
chooses a particular approach to motivation. Learners can use their employer, the centre where they study
or another suitable organisation as a case study. (P3, M2 and D1 are linked. It would also be possible to
use a larger case study covering P3, P4, P5, M2, M3, D1 and D2).
For P4, learners need to understand what contracts of employment stipulate and how adherence to
a contract can be managed. Most employees commit to an organisation by meeting their contractual
obligations. At times it may be necessary to enforce the contract through disciplinary measures. A wide
variety of schemes exist to tie employees to an organisation and learners should consider how employers
involve their employees. Many people identify themselves strongly with their work and often define themselves
in terms of the work they do and the company they work for. When asked what do you do? most people
are more likely to reply with their job title then say Im a music lover. The culture of an organisation makes
its own demands on employees. Consideration should be given to how organisations create and maintain
their culture. They may, for example, have strong community links (sponsoring sporting activities and clubs)
or there may be an open management style with few signs of hierarchy (personal offices, reserved parking).
A case study on a specific organisation, or different organisations, about how employee cooperation is
obtained would be acceptable. For P5, learners will need to appreciate that the maximum contribution is
required from each employee at work. Jobs often have specific performance criteria associated with them,
so sales staff may have to generate 50,000 of sales per month. This may be because there is a business
objective showing a sales target of 6 million for a sales team of 10 people. Individuals need to be monitored
to ensure they are working effectively and meeting targets and standards set for them. Both above par and
below par performance must be managed. A case study for a specific organisation, or different organisations,
would be acceptable. (P5, M3 and D2 are linked.)
For M1, learners must explain why human resource planning is needed to ensure an organisation has employees
with the necessary skills, knowledge and abilities to fulfil its purposes. The failure of Golden Wonder Crisps
shows how a lack of marketing skills saw the market leader first lose its pre-eminent position and then fail
over a period of 20 years.
For M2, learners must compare how different theories of motivation contribute to the techniques
used for employee motivation in an organisation. The wage earned by a crew member at McDonalds is
motivating in itself because it offers a reasonably well-paid hourly rate for a 16 year old. Being part of a crew
recognises a persons social need to belong to a group. Managing a branch is not particularly well paid but
has associated status.
For M3, learners must be able to identify suitable performance indicators to use with individual employees
and show how the individuals performance can be improved through the use of performance management.
Experienced teachers are not judged in the same ways as chefs, so different performance indicators are used
to manage them. Examination pass rates might be used for the former and passing through a pay threshold
may be the reward. The latter may be judged on good reviews, gaining Michelin stars or the gross profit
margin of dishes. Attending a course on portion control may be needed to remedy poor profit performance.
However, they might both have their punctuality and attendance monitored as these are basic requisites for
working satisfactorily in both occupations.
For D1, learners must reach justified conclusions about how an organisation might modify and develop the
motivational techniques and associated reward systems it uses.
For D2, learners must make judgements about the value of monitoring and managing employees. The benefits
of performance management should be contrasted with the consequences of failing to manage performance.
Programme of suggested assignments
The table below shows a programme of suggested assignments that cover the pass, merit and distinction
criteria in the grading grid. This is for guidance and it is recommended that centres either write their own
assignments or adapt any Edexcel assignments to meet local needs and resources.
Criteria covered
Assessment method
P1, P2, M1
Human Resource
Planning.
P3, 4, 5
M2, 3
D1, 2
Human Resource
Management.
Level 3
Business Purposes
Business Resources
People in Organisations
Business Communication
Recruitment and Selection in Business
Aspects of Employment Law
Development Planning for a career in Business
Training in the Business Workplace
Developing Teams in Business
This unit links to the Level 3 National Occupational Standards for Management and Leadership, particularly
Units D1 and D2.
Essential resources
Learners will need access to organisations in order to research human resource management policies and
practices. They will need access to computers to conduct web-based research.
Cole G A Personnel Management: Theory and Practice (Thomson Learning, 2003) ISBN 1844800881
Graham H T and Bennett R Human Resources Management (FT Prentice Hall, 1998) ISBN 0273634011
Hall L, Torrington D and Taylor S Human Resource Management (FT Prentice Hall, 2004) ISBN 0273687131
Journal
Personnel Today
Website
www.Personneltoday.com
Independent enquirers
Creative thinkers
Self-managers
Although PLTS are identified within this unit as an inherent part of the assessment criteria, there are further
opportunities to develop a range of PLTS through various approaches to teaching and learning.
Skill
Creative thinkers
Reflective learners
inviting feedback and dealing positively with praise, setbacks and criticism when
working in groups
Team workers
Self-managers
Effective participators
act as an advocate for views and beliefs that may differ from their own in group
discussions.
English
Speaking and listening make a range of contributions
to discussions and make effective presentations in a
wide range of contexts
Reading compare, select, read and understand texts
and use them to gather information, ideas, arguments
and opinions
Writing write documents, including extended writing writing reports and assignments on human resource
pieces, communicating information, ideas and opinions, management in organisations.
effectively and persuasively
10
Unit 36:
Unit code:
Y/502/5487
QCF Level 3:
BTEC National
Credit value:
10
Unit introduction
Starting a small business is an ambition for many people. The business idea could be almost anything such as
a coffee shop, a courier service, a hairdresser, a motor vehicle repair workshop, a DJ service, a painting and
decorating business, an equipment hire operation, or an organic smallholding producing fruit and vegetables.
However, starting a small business can be fraught with difficulties and the idea may not always be successfully
realised. Those setting out on this venture need to consider the business idea, where funding will come from,
the potential market, the competition and a host of other issues that must be addressed if the business startup is to be successful.
This unit gives learners the opportunity to consider their business idea within structured business parameters,
such as the type of business, the attractiveness of the business idea, the target market and the need to balance
personal and business needs. Learners will also consider their ability to run the business, including the skills
they already have to support the business idea and what personal development they may have to undertake
in order for the venture to be successful.
Learners will also develop their knowledge and understanding of the legal status and trading terms and
conditions of their proposed business, legal aspects such as fire regulations, taxation, VAT and HM Revenue
and Customs, and financial aspects such as start-up and operational costs, as well as personal needs.
Learners will have the opportunity to devise an outline proposal for a business start up. This will cover the
reasons for preparing a business proposal and will include the components expected by financial advisers,
including the type of business, its target market, available resources, financial information and forward
planning.
Learning outcomes
On completion of this unit a learner should:
Understand the skills and personal development needed to run the business successfully
Know the legal and financial aspects that will affect the start up of the business
Unit content
1 Be able to present the initial business idea using relevant criteria
Criteria: type eg new, purchase an existing business, franchise; aims; business planning; attractiveness of
idea eg unique selling point, demand for new business, competitive edge; balancing personal/business
needs; checking profitability; business trends; external influences eg commercial, political, local, national,
international; self-esteem eg work for self, independence, power, achievement
Identifying target market: eg market research, published research, sales forecasts, customers actions and
choices, effect on business, competition, strengths and weaknesses, market trends; environmental issues
2 Understand the skills and personal development needed to run the business
successfully
Skills: own contribution; technical/operational relating to products/services, management, recording and
checking performance of business, personal selling, administration, previous experience, strengths and
weaknesses
Development: identify skills gap/shortages; professional help; training; planning; cost implications;
accessibility; timescales
3 Know the legal and financial aspects that will affect the start up of the business
Legal aspects: legal status eg sole trader, partnership, limited company, co-operative; legal liabilities; trading
terms and conditions; trading standards; licences; record keeping; resolving problems; national/local
laws; regulations and bylaws; health and safety; fire regulations; licensing; liabilities; planning permission,
contracts, duties and responsibilities; regulatory bodies; sources of advice
Financial aspects: personal survival budget; cost of premises, equipment and supplies; running costs;
employing staff; pricing policy; break even; cash flow forecasting; profit and loss budgets/accounts; sources
of finance eg grants, loans, borrowing, sponsorship; record keeping
P1
D1
P2
P3
P4
P5
produce a proposal
M3 assess the implications of the
containing the essential
legal and financial aspects that
information for the start up of
will affect the start up of the
a business.
business.
[TW, EP]
present a comprehensive
business proposal that
addresses all relevant aspects
of business start up.
PLTS: This summary references where applicable, in the square brackets, the elements of the personal,
learning and thinking skills which are embedded in the assessment of this unit. By achieving the criteria,
learners will have demonstrated effective application of the referenced elements of the skills.
Key
IE independent enquirers
RL reflective learners
SM self-managers
CT creative thinkers
TW team workers
EP effective participators
national/local laws
fire regulations
licensing
regulatory bodies for example Environmental Health Office, HM Revenue and Customs
sources of advice for example Business Link centres, solicitors and the Small Business Service.
When considering legal and financial aspects of small business start-ups, learners would benefit from guest
speakers such as those operating a small business, business start-up advisors, accountants, and representatives
from banks, the HM Revenue and Customs, training and advice services and local enterprise agencies.
Visits to local small businesses or presentations by representatives from local trade associations, such as the
Chamber of Commerce, would help learners to develop an awareness of what is needed to run a small
business.
Delivery of the unit must ensure that learners understand the full implications of setting up a small business.
It will be important for learners to know what skills they have and would need, their survival needs and how
much money, and other resources, will be required to start up the business. Learners should develop a clear
outline for a business start-up proposal as a result of completing the unit. Learners can select from a wide
range of supporting materials available in a variety of formats, for example the internet or small business
start-up packs available from banks and building societies. However, it is important they understand that this is
only an outline and not a fully-fledged business plan.
Assessment
Learners will be expected to produce evidence that shows their knowledge and understanding of how small
businesses are started. It may include:
findings from their analysis of the skills and personal development needed to run the business
an explanation of the legal and financial aspects that will affect the start up of their business
Evidence for this unit should primarily be formal due to the nature of the unit. Initial ideas can be evidenced
either through an oral or written presentation, or through a short report. Other evidence such as records of
discussions and notes of meetings would provide useful support.
To meet P1, learners must present the initial business idea using relevant criteria. These criteria should be
clear from the business idea, for example the type of business, what its unique selling points may be, any
external influences (eg location) and so on. Learners should discuss the development of their evidence with
their tutor and, where possible, a business mentor. This presentation can be in the form of a formal report or
a presentation to a group. Where this is the case, tutors should ensure that any business mentors used are
present. For P2, the presentation should include an explanation of how to identify the target market, which
will be informed by the business idea and the criteria used to define it.
For P3, learners must be realistic about their skills and personal development analysis. Although the small
business idea may not come to fruition, intentions should be realistic and evidence should highlight learners
awareness of their skills and development opportunities. Learners are not expected to undertake additional
development work but need to be aware of what the requirements would be.
For P4, learners must produce a proposal which describes the legal and financial aspects that will affect the
start up of the business. They may need to consult with specialists (this should be guided by the delivery of the
unit) and should address aspects such as the legal status of the business, the form of trading it will undertake,
together with specific relevant legal and financial issues. Learners should presume that their ideas can become
reality and should consider these areas accordingly.
For P5, the outline business plan should follow a formal report format and can be developed into a
comprehensive document. This should reflect legal aspects relating to the start up of a new business,
but monetary aspects will need to involve some simulation. The report should be supported by an oral
discussion, which may be undertaken with a specialist such as a bank manager.
For M1, learners need to demonstrate their understanding of the methods used to identify the target market
for the proposed business. This will require them to consider a range of methods that could actually be used
and to provide reasons for their choice. Market research will almost certainly be included but learners need to
explain why. Other methods may prove more challenging but the selection and justification should contribute
to a possible business launch, rather than just being a descriptive account of how they could be applied.
For M2, if learners were to launch a business, they would certainly need to undertake further personal
development. P3 has already addressed what areas require further development. At merit level, learners
need to analyse these areas of development and explain how they would pursue each in order to strengthen
their ability to start a business. Examples could include sources of training with appropriate timelines that fit
with the business launch dates.
For M3, learners also need to consider the impact of legal and financial aspects. This may require them to
describe systems they will have in place for addressing such issues, such as recording systems for tax and VAT
liabilities. Learners may wish to include a summary of how these will be embedded within the overall business
plan.
To meet D1, learners need to draw all their evidence together into a comprehensive business proposal that
addresses all relevant aspects of business start up. Other pass and merit criteria will already have covered
much of the evidence they will need. For distinction level, they need to present all the evidence in a fluent
proposal. Learners should be encouraged to seek guidance on the preparation of their proposal, much as
they would do in the real world. They should discuss a draft with their tutor and/or business mentor, making
improvements and revisions, before presenting the final version.
Programme of suggested assignments
The table below shows a programme of suggested assignments that cover the pass, merit and distinction
criteria in the grading grid. This is for guidance and it is recommended that centres either write their own
assignments or adapt Edexcel assignments to meet local needs and resources.
Criteria covered
Assignment title
Scenario
Assessment method
P1, P2, M1
Setting up a Business.
P3, P4, M2
Required Skills
Setting up a Business.
P5, M3, D1
Business Plan
Setting up a Business.
Level 3
Business Purposes
Business Organisations
Financial Forecasting
Business Online
Essential resources
Many of the learning outcomes for this unit require learners to undertake research. To enable research skills
to be developed effectively, they should be introduced to as many different forms of information as possible,
eg libraries and other research facilities including the internet, national newspapers, local banks, start-up
business training agencies.
Learners will also benefit from case study materials, which may focus on specific aspects of developing small
business ideas.
Most clearing banks offer small business packs which could be useful teaching and learning resources.
Additionally, Business Links and Chambers of Commerce can provide additional information to complement
learning activities.
Learners can find information using company annual reports, journals, magazines, company websites and
newspapers.
Learners will need access to a range of information resources to complete investigative assignments and case
studies will be essential, including relevant CD ROMs and the internet.
Team workers
Effective participators
Although PLTS are identified within this unit as an inherent part of the assessment criteria, there are further
opportunities to develop a range of PLTS through various approaches to teaching and learning.
Skill
Independent enquirers
Reflective learners
Team workers
Self-managers
organising time and resources and prioritising actions when producing coursework,
whether on their own or in a group
deal with competing pressures, including personal and work-related demands
responding positively to change, seeking advice and support when needed
Effective participators
images
numbers
records
producing reports
English
Reading compare, select, read and
understand texts and use them to gather
information, ideas, arguments and opinions
writing reports.
10
Unit 39:
International Business
Unit code:
F/502/5502
QCF Level 3:
BTEC National
Credit value:
10
Unit introduction
Apples iPods and insurance from Aviva are products that have a global identity. Brand names are often
recognised across the world as organisations seek to increase demand for their products, by expanding
from a national to an international market. Initially, the nature of the international business environment will
be considered by looking at the size and importance of international markets. Governments encourage
businesses to trade internationally but protectionism is also common. International business is regulated by
national governments and also by transnational trading arrangements promoted by trading blocs such as the
European Union and global agencies such as the World Trade Organization (WTO).
Both large and small businesses trade internationally but this is often more complex than doing business in
the home market. Consideration will be given to the issues facing a business when it expands its operations
internationally. However, additional insight is provided by considering issues faced by overseas businesses as
they have expanded their operations by moving into the UK market. Tesco has had very limited success in
extending operations into France but has had more success in Malaysia and China. The business environment
needs to be considered with its mix of political, economic and legal issues. Cultural questions about how
best to operate in international settings, as individual markets have unique characteristics that need to be
understood before they can be exploited, need to be explored.
Support is available to businesses that want to work internationally. It includes trade delegations, voluntary
industry-specific groups, government assistance and help from commercial businesses for example how
to finance international business activities. Working internationally requires businesses to look at strategies
and techniques that promote international working. Should factories be built or should local partnerships
be developed using local businesses in joint ventures or licensing deals? Activities such as production, sales,
marketing, human resource management and purchasing will need to be adapted. Each venture needs to be
considered on its own merit. The next time you have a drink on holiday, read the label on the bottle it comes
in and think about the significance of the production information.
Learning outcomes
On completion of this unit a learner should:
Unit content
1 Understand the international business environment
International business: economic value of international trade (to individual businesses, to the economy);
imports; exports; balance of trade; balance of payments; value of world trade; trends; globalisation;
multinational corporations; competition; economies of scale; labour movement; foreign investment;
developing countries
Economic activities that encourage/restrict international trade: free trade; barriers to trade; embargoes;
quotas; tariffs; economic blocs, eg European Union; World Trade Organization (WTO)
P1
D1
P2
P3
D2
P4
P5
P6
PLTS: This summary references where applicable, in the square brackets, the elements of the personal,
learning and thinking skills which are embedded in the assessment of this unit. By achieving the criteria,
learners will have demonstrated effective application of the referenced elements of the skills.
Key
IE independent enquirers
RL reflective learners
SM self-managers
CT creative thinkers
TW team workers
EP effective participators
investigate the significance of imports and exports to the economy and trends in imports and exports.
gather information on the factors that promote and/or restrict international business.
Pair work on the environmental and cultural issues that affect international business. This will be supported by
tutor input on technical topics. Learners:
undertake PESTLE analyses of new countries in which a business might choose to operate in
analyse the cultural factors in different countries that might affect businesses choosing to operate in those
countries.
Pair work (group work) on the how international business is supported. This will be supported by tutor input on
technical topics. Learners:
investigate the range of services offered by government agencies in support of international business.
Pair work on the strategies and techniques used by businesses that operate internationally. This will be supported
by tutor input on technical topics. Learners:
identify the range of factors that an organisation needs to consider when operating internationally
examine how selected organisations respond to the demands of establishing international business activities.
Assignment 3b: The Monetary Environment and Business Strategies strategies and techniques used by
organisations when working internationally Research and presentations
Assessment
For P1, learners will need to consider the importance of international business to a selected organisation
and to the economy. They will need to look at data on the value and volume of activity together with
recent trends in activity. National data needs to be considered together with evidence of the significance of
international activity for specific organisations. Both import and export information needs to be explored as
different international business are involved with both of these activities.
For P2, the factors that encourage and/or restrict international trade need to be reviewed. A variety of
mechanisms exist. For example membership of the EU alongside non-membership of European Monetary
Union, could be considered in relation to the international business environment.
For P3, learners should look at the significance of the international business environment and international
cultures for businesses that operate internationally. Familiar environments allow businesses to operate
internationally but within their comfort zone. Large and emerging markets offer more of a challenge. Legal
and regulatory contexts are likely to be codified but cultural issues are less formally defined. So, selling a TV
format such as Who wants to be a Millionaire presents problems in China as Chinese TV is largely state
controlled and game shows on TV are novel for many Chinese. In Australia, by contrast, TV is run mainly by
public companies and the cultural influences are, in many cases, similar to those in the UK.
For P4, learners need to consider some of the mechanics of international business such as how business is
established, promoted, financed and payments are made. International trade carries risks, such as fluctuating
currencies and operating in different legal jurisdictions, and learners should know how government agencies
offer a range of support to mitigate the possible effects of risk. Again, both domestic businesses importing
goods and services as well as establishing export presences need to be considered.
For P5, learners should look at why a business might want to work internationally and there is a wide variety
of reasons. There are problems and these may be difficult to resolve but international operations are viewed
positively by business and government.
For P6, learners should look at how a business operating internationally approaches the task and makes
arrangements using a range of techniques to work successfully in an international market. Learners should
consider how businesses can develop strategies to operate internationally. Drinks companies usually seek a
local joint venture since the basic ingredient in many drinks is water and water is expensive to ship. Soft drinks
and beer are almost always produced and bottled under licence but spirits are not. Cars need to be made
with a left hand drive and chocolates need to be labelled in the local language. Mainstream products in the UK
may be premium products in international markets and so are promoted differently.
This can be linked to P3 which looks at different counties in general terms whereas P6 is about many of the
specific issues. Having chosen a new country, is a start up the best option rather than establishing a partnership
with an existing business in the new country? The focus is on establishing an international presence.
For M1, learners should consider the purpose of methods of promoting and restricting international trade and
identify how and why they might be used.
For M2, learners need to look at how different international business and cultural environments affect
organisations. Products may need to be adapted and marketing techniques modified in order to sell
successfully in a different market which has different expectations and requirements.
For D1, learners need to assess the possible impact of problems posed by operating in international markets.
Rather than build complex car assembly plants in too many countries, where there may be insufficient skilled
labour, vehicle manufacturers supply vehicles in knock down form that are re-assembled locally saving on
capital costs and shipping costs.
For D2, learners should evaluate the impact of cultural issues on international business performance. Health,
welfare, social considerations, environmental issues and belief systems all influence how well organisations do
in different international settings.
Edexcel BTEC Level 3 Nationals specification in Business
Issue 2 June 2010 Edexcel Limited 2010
Assignment title
Scenario
Assessment method
Case Study
Case Study
P3, M2, D2
Cultural Differences
Case Study
Case Study
P4, P5, P6
Case Study
Case Study
This unit also links with the following units of the Level 3 National Occupational Standards in Supply Chain
Management:
Essential resources
For this unit learners should have access to a suitable business teaching environment and access to current
resources about international business activities. Current and specific advice and information is easy to come
by. Government websites provide definitions of processes and documentation. Data for PESTLE analyses of
specific countries is available in many reference works as well as online. Local organisations and businesses can
provide information from personal experience.
The books are aimed at undergraduates and are expensive. They are best for dipping in to.
Czinkota M R, Ronkainen I A and Moffett M H International Business (Thompson Learning, 1998)
ISBN 0030223784
Czinkota M R Fundamentals of International Business (Cram101 Textbook Outlines, 2003)
ISBN-10 1428805521
Monir Tayeb International Business: Theories, Policies and Practices, (Financial Times/Prentice Hall, 2000)
ISBN-10 0273637126
Morrison J International Business Environment: Global and Local Marketplaces in a Changing World (Palgrave
Macmillan, 2006) ISBN 1403936919
Wild J and Kenneth Wild International Business, The Challenges of Globalization (Prentice Hall, 2007)
ISBN10: 0135032814
Journal
The Economist
The Financial Times
Websites
http://europa.eu
http://news.bbc.co.uk
www.bbc.co.uk/learning/subjects/business_studies.
shtml
www.bized.co.uk
www.britishchambers.org.uk
www.businesslink.gov.uk
www.cadbury.co.uk
www.direct.gov.uk
www.wto.org
Independent enquirers
Creative thinkers
describing how the environment and culture of another country affects a business
operating internationally
Reflective learners
describing how the environment and culture of another country affects a business
operating internationally
describing how the monetary environment affects businesses that operate
internationally.
Although PLTS are identified within this unit as an inherent part of the assessment criteria, there are further
opportunities to develop a range of PLTS through various approaches to teaching and learning.
Skill
Independent enquirers
planning and carrying out research into the international business environment
investigating the mechanisms that regulate international trade
researching the environment and culture of other countries
Creative thinkers
Reflective learners
looking at how international cultures affect the choice of location for businesses
operating internationally
inviting comment on own researches in to the issues associated with international
business operations
evaluating own experiences and learning to inform future progress
Team workers
10
Skill
Self-managers
Effective participators
acting as an advocate for own views and opinions when working in groups.
11
images
numbers
records
12
Skill
Mathematics
Understand routine and non-routine
problems in a wide range of familiar and
unfamiliar contexts and situations
English
Speaking and listening make a range of
contributions to discussions and make
effective presentations in a wide range of
contexts
Reading compare, select, read and
understand texts and use them to gather
information, ideas, arguments and opinions
13