Your journey to excellence in
By Revision Genie
Introduction to Business
Unit 1
What an Entrepreneur Is
Enterprise vs Entrepreneurship
The Four Factors of Production
Land as a Factor of Production
Labour as a Factor of Production
Capital as a Factor of Production
Enterprise as a Factor of Production
Why Access to Factors of Production Matters
Primary, Secondary and Tertiary Sectors
Private, Public and Third Sector Organisations
Local, National and Global Markets
Multinational Businesses
Sole Traders: Features and Risks
Partnerships: Features and Risks
Limited Liability and Why It Matters
Limited Liability Partnerships
Private Limited Companies (Ltd)
Public Limited Companies (plc)
Choosing a Legal Structure
Franchising: What It Is
Franchisors vs Franchisees
Pros and Cons of Franchising
Co-operatives: How They Work
Business Functions: An Overview
Marketing Function
Production and Operations Function
Accounting and Finance Function
Customer Service, Sales and Support Functions
Measuring Business Size
Small vs Medium vs Large Businesses
Why Businesses Grow and Change Size
Joint Ventures: Purpose and Risks
Strategic Alliances: Purpose and Risks
Unit 2
Business objectives and strategy
Aims vs Objectives
Corporate, Strategic, Tactical and Operational Objectives
Why SMART Objectives Matter
The Hierarchy of Objectives
How Sector Affects Objectives
Communicating Objectives Inside a Business
Communicating Objectives to External Stakeholders
Problems Caused by Miscommunication
Changing Objectives Over Time
Implementing Changes to Objectives
Who Stakeholders Are
Internal vs External Stakeholders
Stakeholder Objectives and Priorities
Why Stakeholder Conflict Happens
Managing Stakeholder Conflict
Stakeholder Power and Influence
Impact of Decisions on Different Stakeholders
Mission Statements: Purpose and Features
Writing a Strong Mission Statement
Benefits of a Mission Statement
Limitations of a Mission Statement
Corporate Social Responsibility (CSR): Meaning
CSR vs Profit and Other Objectives
Benefits of CSR for a Business
Downsides and Risks of CSR
Improving a CSR Profile
Objectives, Strategy and Tactics: The Link
Evaluating a Current Strategy
Choosing Between Strategic Options
Planning Implementation
How Strategy Changes Affect Stakeholders
What a Business Plan Is For
What Goes in a Business Plan
Benefits and Drawbacks of Business Plans
Plan–Do–Review: How It Works
Strategic Review: Why It Matters
Risk and Reward in Business
Quantifiable vs Unquantifiable Risk
Reducing Risk: Practical Methods
Poor Risk Management: Consequences
Risks Faced by Entrepreneurs
Uncertainty: Meaning and Causes
Internal vs External Uncertainty
How Uncertainty Affects Decisions and Forecasts
Opportunity Cost: Meaning
Identifying Opportunity Cost in Decisions
Opportunity Cost and Decision Making
Contingency Planning: Purpose
Writing a Contingency Plan
Costs and Benefits of Contingency Planning
Crisis Management: Purpose and Methods
Evaluating Crisis Management
Competitive Advantage: Meaning
Porter’s Five Forces: The Model
Applying Five Forces to a Market
Limits of Five Forces
Porter’s Generic Strategies: The Options
Applying Generic Strategies
Limits of Generic Strategies
Financial vs Non-Financial Performance Measures
Why Businesses Measure Performance
Liquidity, Profitability and Efficiency: The Difference
Cash Flow vs Profit
Why Published Accounts Don’t Tell the Whole Story
Non-Financial Measures: Examples and Uses
Performance Measures for Different Stakeholders
Forecasting: Purpose in Business
Qualitative vs Quantitative Forecasting
Delphi Method and Expert Opinion
Brainstorming and Intuition Forecasts
Pros and Cons of Qualitative Forecasting Methods
Building Financial Forecasts (Sales, Costs, Profit, Cash Flow)
Seasonal Variation and Its Impact
Cyclical Variation and Its Impact
Using Correlation to Spot Trends
Extrapolating Trends from Data
Time Series (Moving Averages) Forecasting
Strengths and Weaknesses of Time Series
Responding to Forecasts
Why Forecast Accuracy Matters
Decision Making: Purpose and Process
Short-, Medium- and Long-Term Decisions
Strategic vs Tactical vs Operational Decisions
Quantitative vs Qualitative Decision Tools
Bias, Volatility and Risk in Decisions
Choosing Between Options Using Evidence
Deciding What “Success” Means for a Business
Decision Trees: What They Show
Probabilities: Decimals and Percentages
Expected Value: Calculating Outcomes
Interpreting and Evaluating a Decision Tree
Limits of Decision Trees
Ansoff’s Matrix: Purpose
Market Penetration Strategies
Market Development Strategies
Product Development Strategies
Diversification Strategies
Risk Levels Across Ansoff’s Matrix
Using Ansoff to Recommend a Strategy
When Decision Tools Conflict
Balancing Quantitative and Qualitative Evidence
Evaluating Decision Tools: Strengths and Limitations
Explaining Success or Failure After Decisions
Unit 3
External influences
What a Market Is
Competition: Meaning and Impact
Market Size: Meaning and Importance
Market Growth: Meaning and Importance
Increasing Market Share: Options
Market Structures: Monopoly, Oligopoly and Monopolistic Competition
Market Structure and Decision-Making Power
Demand, Supply and Equilibrium
Determinants of Demand
Determinants of Supply
Shifts in Demand and Supply Diagrams
Excess Demand and Excess Supply
Market Forces and Business Strategy
Physical vs Digital Markets
Why Businesses Use Physical and Digital Channels
Competitive Strength and Business Behaviour
Entering and Exiting Markets
Barriers to Entry and Exit
Market Dominance: Meaning
Mergers and Acquisitions vs Organic Growth
Monopoly Power and Its Effects
Regulation of Dominant Firms in the UK
Globalisation: What It Means
Drivers of Globalisation (Tech, Trade and Transport)
Multinationals and Globalisation
Global Strategy vs Globalisation
Opportunities and Threats of Globalisation
Global Branding: Meaning and Impact
International Trade: Reasons and Benefits
Barriers to Trade: Types and Effects
Trading Internationally: Culture, Language and Buying Habits
Trading Internationally: Logistics and Currency Risk
Exchange Rates: Meaning and Conversions
Exchange Rate Changes: Winners and Losers
Support for International Trade (Financial and Non-Financial)
Free Trade: Pros and Cons
Trading Blocs: Pros and Cons
The European Union’s Influence on Business
UK Outside the EU: Implications for Firms
The Single European Market: Why It Matters
Emerging Markets: Meaning
Opportunities and Risks in Emerging Markets
Responding to Global Environmental Changes
Political Factors Affecting Business
Political Stability vs Uncertainty
Government Policy and Business Decisions
Economic Indicators: What They Show
UK Taxation: Direct vs Indirect
Government Spending and Business Impact
Subsidies: Meaning and Effects
Monetary, Fiscal and Supply-Side Policy
Interest Rates and Exchange Rates: The Link
GDP: Meaning and Significance
The Business Cycle: Phases
Using the Business Cycle in Planning
Why Some Industries Are More Cycle-Sensitive
Social Factors and Changing Consumer Behaviour
Technological Factors and Competitive Advantage
Hardware and Software: Pros and Cons
The Digital Revolution: Meaning
Opportunities and Threats from Digital Change
Why Digital Change Hits Some Firms Harder
Ethics vs Law: The Difference
Ethical Issues for Businesses
Ethical Trading and Working Practices
Building an Ethical Profile
Conflicts Between Ethical and Other Objectives
Managing Ethical Trade-Offs
Employment Law: Key Areas
Equality and Discrimination Law
Health and Safety Law
Data Protection Law
Consumer Protection and Contract Law
Intellectual Property: Protecting Ideas and Brands
Environmental Regulation and Planning Rules
Financial Conduct Regulation: Why It Matters
Compliance: Costs, Benefits and Risks
Consequences of Non-Compliance
Environmental Issues Affecting Business
Environmental Policies: Purpose and Practice
Sustainability: Meaning and Business Actions
Conflicts Between Green Goals and Profit Goals
Managing Environmental Trade-Offs
The Cost of Ignoring External Factors
Unit 4
Change
Why Businesses Need to Change
Internal Drivers of Change
External Drivers of Change
Types of Change: Strategic, Tactical and Operational
Types of Change: Catastrophic, Crisis and Contingency
Problems Caused by Change
Barriers to Change in Organisations
Impacts of Change on Stakeholders
Change Management: Meaning
Why Effective Change Management Matters
Techniques for Managing Change
Lewin’s Change Model
McKinsey 7-S Model
Kotter’s 8-Step Model
Leadership and Change Success
Using External Consultants: Pros and Cons
Choosing an Appropriate Change Strategy
Costs of Poor Change Management
Benefits of Successful Change Management
Unit 5
Accounting and finance within a business environment
Accounting and Finance Objectives: What They Are
Why Finance Objectives Must Link to Business Objectives
Setting Clear Finance Objectives
Evaluating Finance Objectives for Stakeholders
Internal Sources of Finance
External Sources of Finance
Short-Term vs Long-Term Finance
How Time Affects Finance Choice
How Legal Structure Affects Finance Choice
Quantitative Factors in Finance Choice
Qualitative Factors in Finance Choice
External Influences on Finance Choice
Comparing Finance Options for Different Stakeholders
True and Fair View: Meaning
GAAP: Why Standards Matter
Consistency Convention
Going Concern Convention
Accruals (Matching) Convention
Materiality Convention
Objectivity Convention
Prudence Convention
Realisation Convention
Applying Conventions to Real Business Data
Unit 6
Management accounting
Costs, Revenue and Profit: Core Definitions
Fixed vs Variable Costs
Total vs Average Cost
Direct vs Indirect vs Overhead Costs
Total Revenue and Pricing Basics
Calculating Costs, Revenue and Profit
Why Cost Structures Affect Decisions
Cost and Profit Centres: Why They Exist
Full, Absorption and Marginal Costing
Choosing a Costing Method
How Cost Allocation Changes Reported Profit
Break-Even: Meaning
Contribution and Contribution per Unit
Margin of Safety
Target Profit Calculations
Stepped Fixed Costs
Drawing a Break-Even Chart
Reading a Break-Even Chart
How Cost Changes Shift Break-Even
How Price and Sales Changes Shift Break-Even
Using Break-Even to Make Decisions
Limits of Break-Even Analysis
Special Order Decisions Using Contribution
Investment Appraisal: Why It’s Used
Payback Period: Calculation and Interpretation
Average Rate of Return (ARR): Calculation and Interpretation
Net Present Value (NPV): Discounting Basics
Interpreting NPV Results
Quantitative vs Qualitative Factors in Investment Decisions
Choosing the Best Appraisal Method
Budgets: Purpose
Types of Budgets (Sales, Production, Cash)
Variances: Meaning
Calculating Variances
Favourable vs Adverse Variances
Using Variances to Control Performance
Limits of Budgeting and Variance Analysis
Cash Flow: Meaning
Cash Flow Forecast vs Cash Flow Statement
Completing a Cash Flow Forecast
Analysing Net Cash Flow and Closing Balance
Causes of Cash Flow Problems
Improving Cash Flow (Practical Methods)
Evaluating Cash Flow Forecasting
Working Capital: Meaning
Working Capital Cycle: Stages and Timing
Unit 7
Financial accounting
Income Statements: Purpose
Gross Profit, Operating Profit and Net Profit
Building an Income Statement
Interpreting Profit Figures Over Time
Uses and Limits of Income Statements
Statement of Financial Position: Purpose
Assets, Liabilities and Equity: Key Terms
Non-Current Assets vs Current Assets
Inventory, Receivables and Payables
Working Capital in the Statement of Financial Position
Non-Current Liabilities and Net Assets
Retained Earnings and Shareholders’ Equity
Valuing Assets: Methods and Judgements
Bad Debts and Doubtful Debts: Treatment
Depreciation: Why It Exists
Straight-Line Depreciation
Reducing-Balance Depreciation
Depreciation and Business Decisions
Liquidity Ratios: Current Ratio
Liquidity Ratios: Acid Test
Solvency Ratios: Gearing
Solvency Ratios: Interest Cover
Efficiency Ratios: Stock Turnover
Efficiency Ratios: Debtor and Creditor Turnover
Efficiency Ratios: Non-Current Asset Turnover
Profitability Ratios: Gross Profit Margin
Profitability Ratios: Net Profit Margin
Profitability Ratios: ROCE
Profitability Ratios: Return on Equity
Shareholder Ratios: EPS
Shareholder Ratios: Dividend per Share and Dividend Yield
Shareholder Ratios: P/E Ratio
Using Ratios to Judge Financial Health
Limits of Ratio Analysis
Unit 8
Accounting and finance within the external environment
How External Factors Affect Finance Decisions
Social Influences on Finance
Legal Influences on Finance
Ethical Influences on Finance
Environmental Influences on Finance
Economic Influences on Finance
Political Influences on Finance
Technological Influences on Finance
International Influences on Finance
What a Financial Strategy Is
Building a Financial Strategy for Growth
Evaluating a Financial Strategy for Stakeholders
Unit 9
Human resource management within a business environment
HR Objectives: What They Are
Linking HR Objectives to Business Objectives
Setting Clear HR Objectives
Evaluating HR Objectives for Stakeholders
Organisational Structure: Key Features
Chain of Command and Span of Control
Authority, Responsibility and Delegation
Centralisation vs Decentralisation
Delayering: Reasons and Risks
Structures by Function, Product and Division
Matrix Structures: Pros and Cons
Tall vs Flat Structures
Organisational Culture: Meaning
Factors Shaping Culture
Culture and Business Performance
Formal vs Informal Communication
Group Norms and Workplace Behaviour
Group vs Individual Objectives
Verbal vs Non-Verbal Communication
Choosing Communication Methods
Communication Media: Written, Oral, Face-to-Face, Digital
Communication Models: Source to Feedback
Barriers to Communication
Impacts of Poor Communication
Workforce Planning: Purpose
Building a Workforce Plan
Flexible Working: Types and Uses
Benefits and Risks of Flexible Working
Recruitment: Meaning and Triggers
Job Descriptions and Person Specifications
Writing Job Adverts
Internal vs External Recruitment
Selecting Recruitment Methods
Selection: Meaning
Applications, CVs and Letters
Tests, Interviews and Work Trials
References: Value and Risks
Choosing the Best Selection Method
Training: Meaning
On-the-Job vs Off-the-Job Training
Induction Training
Academic, Vocational and Apprenticeship Routes
Training Needs Analysis (TNA)
Evaluating Training Methods
Appraisal: Purpose
Appraisal Methods (360, Self, Peer, Targets)
Measuring Workforce Performance: Key Indicators
Calculating Absenteeism and Labour Turnover
Calculating Productivity Measures
Performance-Related Pay: Uses and Risks
Using Performance Data to Improve Results
Redundancy vs Dismissal
Fair Reasons for Dismissal
Unfair Dismissal: Examples
Dismissal Procedures
Grievance Procedures
Employment Tribunals: Purpose and Impact
Evaluating Redundancy and Dismissal Decisions
Unit 10
Management
What Management Is
Core Functions of Management
Constraints on Management Decision Making
Evaluating Management Success
Leadership vs Management
Trait Theory (Carlyle and Galton)
McGregor’s Theory X and Theory Y
Blake and Mouton’s Managerial Grid
Lewin’s Leadership Styles
Tannenbaum and Schmidt’s Continuum
Adair’s Three Circles
Autocratic, Democratic, Laissez-Faire and Paternalistic Styles
Choosing a Leadership Style for Context
Motivation: Meaning
Maslow’s Hierarchy of Needs
Herzberg’s Two-Factor Theory
McClelland’s Need Theory
Vroom’s Expectancy Theory
Goal-Setting Theory and MBO (Locke and Drucker)
Peters and Excellence Theory
Monetary vs Non-Monetary Motivation
Designing a Motivation Strategy
Employer–Employee Relations: Meaning
Benefits of Strong Employee Relations
Costs of Poor Employee Relations
Employment Law in Employee Relations
Employee Participation: Meaning
Industrial Democracy and Works Councils
Participative Decision Making
Trade Unions: Role and Influence
Pros and Cons of Trade Union Membership
Changing Union Membership and Impact
Unit 11
Human resources within the external environment
Social Influences on HR
Legal Influences on HR
Ethical Influences on HR
Environmental Influences on HR
Economic Influences on HR
Political Influences on HR
Technological Influences on HR
International Influences on HR
What an HR Strategy Is
Building a Workforce Strategy for Growth and Change
Evaluating an HR Strategy for Stakeholders
Unit 12
Marketing within a business environment
Marketing Objectives: What They Are
Linking Marketing Objectives to Business Objectives
Setting Clear Marketing Objectives
Evaluating Marketing Objectives for Stakeholders
Marketing Resources: What Businesses Need
Resource Limits and Marketing Choices
SWOT Analysis: Purpose and Structure
Building a SWOT for a Business
Evaluating SWOT Usefulness
Unit 13
Customer needs
Market Research: Purpose
Primary vs Secondary Research
Methods of Primary Research
Methods of Secondary Research
Sampling: Why It Matters
Random, Stratified and Cluster Sampling
Systematic, Quota and Convenience Sampling
Evaluating Sampling Methods
Trial Marketing: Uses and Limits
Analysing Market Research Results
Market Analysis: Quantitative vs Qualitative
Market Share and Market Growth: Meaning
Calculating Market Share
Calculating Market Growth
Using Market Data to Make Decisions
Risks of Ignoring Market Data
Standard Deviation: What It Shows
Calculating Standard Deviation
Using Standard Deviation in Market Decisions
Consumer Buying Behaviour: Impulse vs Planned
Niche vs Mass Marketing
AIDA Model
Hierarchy of Effects / DAGMAR
ATR Model
Customer Orientation vs Product Orientation
Customer Service and Buying Behaviour
Market Segmentation: Meaning
Ways to Segment a Market
Evaluating Segmentation Strategies
Recommending a Segmentation Strategy
Customers vs Consumers
B2C vs B2B Marketing: Key Differences
Choosing Methods for B2C Marketing
Choosing Methods for B2B Marketing
Unit 14
Product Life Cycle: Meaning and Purpose
Stages of the Product Life Cycle
Interpreting a Product Life Cycle Diagram
Using PLC to Make Marketing Decisions
Extension Strategies: Meaning
Types of Extension Strategy
Evaluating Extension Strategies
Unit 15
The marketing strategy
Marketing Mix: Meaning
What a Marketing Strategy Is
Local vs National vs Global Marketing
Adapting the Mix for Different Contexts
Product: Meaning in the Mix
Unique Selling Point (USP): Finding and Using It
Branding: Meaning and Value
Product Differentiation: Why It Works
Product Portfolio Tools: Overview
Using the Boston Matrix
Using Value Analysis
Using Ansoff for Product Decisions
Choosing a Product Mix
Price: Meaning in the Mix
Skimming and Penetration Pricing
Competition-Based and Psychological Pricing
Cost-Plus Pricing
Marginal and Contribution Pricing
Price Elasticity of Demand: Meaning
Income and Cross Elasticity: Meaning
Calculating and Interpreting Elasticities
Using Elasticity to Set Prices
Place: Meaning in the Mix
Channels of Distribution
Digital vs Physical Distribution Choices
Patterns of Distribution (Intensive, Selective, Exclusive)
Promotion: Meaning in the Mix
Above-the-Line vs Below-the-Line Promotion
Branding and Personal Selling
Internet and Social Media Promotion
Drip Marketing and Viral Marketing
Advertising Elasticity of Demand: Meaning
Calculating Advertising Elasticity
Building a Promotional Mix
Service Marketing: Why It’s Different
The 7Ps: Process, People and Physical Evidence
Designing a Marketing Mix for Services
Unit 16
Marketing within the external environment
Social Influences on Marketing
Legal Influences on Marketing
Ethical Influences on Marketing
Environmental Influences on Marketing
Economic Influences on Marketing
Political Influences on Marketing
Technological Influences on Marketing
International Influences on Marketing
Building a Coherent Marketing Strategy
Evaluating a Marketing Strategy for Stakeholders
Unit 17
Operations management within a business environment
Operations Objectives: What They Are
Linking Operations Objectives to Business Objectives
Setting Clear Operations Objectives
Evaluating Operations Objectives for Stakeholders
Added Value: Meaning
Calculating Added Value
Using Added Value to Improve Competitiveness
Innovation and R&D: Meaning
Reasons for R&D
Product vs Process Innovation
The Innovation Cycle
Risks and Rewards of Innovation
Job, Batch, Flow and Cell Production
Choosing a Production Method
Specialisation and Division of Labour
Benefits and Drawbacks of Specialisation
The Service Production Process
Customer Service in Service Operations
Project Management: Meaning and Uses
Gantt Charts: Building and Reading Them
Network Diagrams: Purpose
Critical Path Analysis: EST, LFT and Float
Finding the Critical Path
PERT: O, P, M and Expected Time
Comparing CPA and PERT
Qualitative Factors in Project Success
Productivity: Meaning
Calculating Productivity
Improving Productivity
Economies and Diseconomies of Scale: Meaning
Internal Economies of Scale
Internal Diseconomies of Scale
External Economies of Scale
External Diseconomies of Scale
Capacity Utilisation: Meaning
Calculating Capacity Utilisation
Capacity Management: Improving Use
Changing Capacity: Options and Risks
Stock Control: Purpose
Stock Control Charts: Buffer Stock and Reorder Level
Lead Time and Reorder Quantities
Just-in-Time (JIT)
Kanban Systems
EOQ and Fixed Reorder Systems
Electronic Stock Control Systems
Stock Control and Production Method Choice
Lean Production: Meaning
Lean Methods in Practice
Pros and Cons of Lean Production
Technology in Operations: Uses
Benefits and Risks of Operations Technology
Quality Control vs Quality Assurance
Measuring Wastage and Defects
Total Quality Management (TQM)
Training and Quality Improvement
External Standards: BS, EN and ISO (What They Mean)
Benchmarking: Purpose and Use
Services as an Output: Meaning
Measuring Service Quality
Improving Customer Service Quality
Location Decisions: Key Factors
Comparing Location Options
Logistics: Meaning
Supply Chain and Distribution Management
Warehousing and Distribution Centres
Digital Logistics and Fulfilment
Outsourcing, Subcontracting, Offshoring and Re-shoring
Building a Logistics Strategy
Unit 18
Operations management within the external environment
Social Influences on Operations
Legal Influences on Operations
Ethical Influences on Operations
Environmental Influences on Operations
Economic Influences on Operations
Political Influences on Operations
Technological Influences on Operations
International Influences on Operations
What an Operations Strategy Is
Building an Operations Strategy for Performance
Evaluating an Operations Strategy for Stakeholders
Unit 19
Quantitative skills used across the course
Ratios, Averages and Fractions in Business Context
Percentages and Percentage Change in Business Context
Interpreting Business Graphs and Charts
Index Numbers in Business Data
Break-Even Calculations in Decision Making
Investment Appraisal Calculations in Decision Making
Elasticity Calculations in Pricing Decisions
Using Quantitative and Qualitative Data Together
Analysing Written, Numerical and Graphical Information Together
