Business & Management

Unit Description: In this unit you will gain knowledge and understanding of the environment in which organisations operate. This will support your understanding of the different and often complex contexts in which organisations function.

Unit Content:

Understand the range of people who have an interest and influence on a business

• Internal stakeholders: shareholders, employees, trade unions.
• External stakeholders: customers, suppliers, competitors, the local community.
• The interests of stakeholders: costs, profit, social impact, job security, health and safety, employee engagement (an investor would be interested in the financial health of the organisation, for example).
• The objectives of each stakeholder group: an investor may set an objective to achieve a 5% return on investment.
• Ways in which stakeholders' differing objectives may conflict.

Understand the sectors of an economy

• Sectors of the economy, including: primary, secondary, tertiary and quaternary.
• Different ways in which the size of each sector is measured, value of output and employment.
• Importance of each sector to future growth of the economy.
• Changes and trends within sectors, e.g. greater reliance on technology such as artificial intelligence in manufacturing.
• Changes and trends between sectors, e.g. the decline in manufacturing in the UK, greater reliance on the service sector for employment opportunities.

Conduct a STEEPLE analysis

• STEEPLE analysis of factors beyond the control of a business: Social - changes to social attitudes; Technological - new developments and methods, new products; Economic - the business cycle and level of demand, unemployment and inflation; Ethical - changing attitudes towards ethical and moral issues; Political - impact of government policies; Legal - changes to legislation that impact business and consumers; Environmental - sustainability.
• Four stages of the Business Cycle.

Understand the changing nature and pattern of employment

• Changing nature of work, e.g. balance of employment opportunities in the different sectors, the impact of technology on work - remote working, hybrid working, globalisation of businesses.
• Changes to working patterns e.g. male and female participation rates, full and part time working, employment contracts such as permanent, temporary, agency working, self-employed, flexible working, the gig economy.
• Global variation in employment patterns.

Unit Description: This unit will provide you with an overview of key aspects of business. You will develop knowledge and understanding of business objectives and structure, customer service, and resource requirements.

Unit Content:

Understand the objectives of organisations

• Different types of organisational objectives: strategic, operational and tactical.
• The focus of possible objectives in profit making businesses and organisations.
• The range of possible objectives in non-profit making businesses, organisations and social enterprises such as charities, public sector organisations: fundraising, campaigning, increasing membership and influence.
• Factors influencing the choice of objectives e.g. size and legal structure of organisations, influence of key stakeholders, market conditions, organisational culture and values.
• Reasons strategic objectives may change e.g. organisational growth, mergers and takeovers, changes in demand, changes in economic growth, market conditions.

Understand the importance of customers and customer service for organisations

• Types of customers and their different needs, e.g. final consumers (B2C), business customers (B2B).
• The elements of customer service, e.g. product quality, price, delivery time, after sales service, customer feedback, complaints handling.
• The skills of customer service: service skills, listening, patience, understanding customer needs, respect for customer.
• Customer service and business success: reduced complaints, increased reputation, improved awareness of customer needs and product development, repeat customers, lower marketing costs.
• Customer service for online businesses vs other business models.

Understand organisational structures and legal identities of businesses

• Organisational structures, e.g. hierarchical, flat, functional, divisional, matrix, team based.
• The advantages and disadvantages of each type of organisational structure.
• The reasons why businesses change their organisational structure, e.g. organisational growth, mergers and takeovers, responding to competition.
• The different forms of business legal identity, e.g. sole trader, partnership, private limited company, public quoted company, not for profit organisations.
• The advantages and disadvantages of each legal identity.
• Comparison of online business vs traditional organisational structure.

Understand the resources required by a business

• Physical resources, including land, buildings/offices, vehicles, machinery and equipment, raw materials, e.g. storage, stock out and stock piling.
• Sources of finance, e.g. personal savings, bank loan, overdraft, debenture, share issues, government or other grants.
• Human resources, e.g. the range and types of workers required, qualifications, skills, experience.
• External human resources, e.g. subcontractors, auditors, accountants, lawyers.
• Technological/digital resources, e.g. computing power, internet access, social media, analytics.
• Comparison of online business vs traditional organisational resource requirements.

Understand basic financial statements

• The purpose and importance of an income statement (profit and loss account); main headings of an income statement, i.e. turnover, costs, gross and net profit.
• The purpose and importance of a balance sheet; main headings of a balance sheet i.e. current assets, current liabilities, owners' equity.
• The purpose and importance of cash flow statements to a business; how cash flow is monitored.
• The purpose and importance of budgets; how budgets are monitored.

Unit Description: This unit will enable you to develop knowledge, skills and understanding of communication theory, and the importance of effective communication in business.

Unit Content:

Understand the principles of effective internal and external communication

• Communication process - transmitter, message, channel, decoding, receiver, feedback.
• Types of communication - formal and informal, verbal and non-verbal, written, internal and external.
• Channels of communication e.g. speaking, writing, digital methods, non-verbal methods.
• Use of technology e.g. email, telephones/mobile phones, social media, websites, Zoom/virtual meetings, presentation slides.
• Barriers to communication, e.g. physical, language, culture, media choice, emotion, disability (such as speech and hearing), technical, organisational structure.

Communicate complex business information effectively in both oral and written forms

• Simple versus complex information; complex business information as having several variables; presenting complex information.
• Characteristics of an effective slide presentations; dangers of over reliance on slide presentations; supporting written materials - layouts, use of images, graphs and charts.
• Managing question and answer sessions; body language and use of voice - tone and clarity; business language - use appropriate to audience needs.
• Use of technology e.g. email, social media, websites, virtual meetings, presentation slides.
• Awareness of different audience needs e.g. board directors, managers, employees, customers.
• Informal and formal business reports and when the use of each is appropriate; question and answer sessions - preparation and how to manage these.

Understand how organisations communicate with customers

• Factors to consider when communicating with customers e.g. courtesy, appropriate use of media, being proactive, attentiveness/listening, honesty, use of frequently asked questions (FAQ) on websites.
• Different media used e.g. websites, webchat, email, personal letters, newsletters, mail drops, point of sale materials, public relations, personal phone calls, use of mobile texting.
• Feedback options available to customers: customer surveys, feedback cards, suggestion boxes, complaints.

Review personal communication skills

• Obtaining feedback from peers and tutors; personal review of communication skills; responding to constructive criticism.
• Listening skills and personal review of these; reading skills and personal review of these; skills gap analysis.
• Ways to improve personal communication skills e.g. practice, training, observing others.
• Development planning - producing a personal development plan; objective setting - use of SMART objectives; monitoring development plans; reviewing developmental objectives and amending as appropriate.

Unit Description: This unit will provide you with an overview of key aspects of working with other people. You will gain knowledge and understanding of teams and team roles. There is also an opportunity for you to develop your own employability skills.

Unit Content:

Understand the key principles of working in teams

• Purposes and reasons for teams in organisations, e.g. project completion, problem solving, enhancing relationships, fostering creativity and innovation, improving morale.
• Stages of groups: Tuckman - forming, storming, norming, performing, adjourning.
• Roles within teams: Belbin - resource investigator, team worker and coordinator (the social roles); plant, monitor evaluator and specialist (the thinking roles); and shaper, implementer and completer finisher (the action or task roles).
• Benefits of team working on individuals and organisations, e.g. sense of ownership of team project, increased motivation and morale, greater responsibility, shared skills.
• The conditions for effective teamworking, e.g. good communication, clarity of purpose, diversity of membership, accountability, delegation and support.
• Impact of poor communication within teams, e.g. unclear aims and objectives, unresolved conflict, duplication of effort, poor commitment.

Understand leadership and motivation when working in teams

• Leadership theories and styles, e.g. McGregor, Great Man, Trait theory, Skills theory, Situational theory, Contingency theory, Transactional theory and Transformational theory.
• Motivation theories, e.g. Taylor, Mayo, Herzberg, Maslow, McClelland, Vroom and Pink.
• The principles of good working relationships: communication, trust, respect, transparency, non-judgement, empowerment and acceptance.
• The relationship between teamworking, motivation, productivity and business success.

Understand how to work in a team

• Identifying own role within a team, e.g. Belbin roles (social, thinking, and action or task roles).
• Conflict and conflict resolution in teams; formal and informal leadership in teams; reflection of own contribution to teams.

Review own employability skills

• The difference between generic transferable skills and job specific skills.
• Formats for constructing and conducting personal skills audits: online skills audits; honest identification and evidencing of own strengths and areas for development; receiving and interpreting feedback from others.
• Using job descriptions and personal specifications; formats of curriculum vitae and formal letters; compiling own curriculum vitae.
• Constructing realistic personal development action plans, e.g. effective use of SMART targets, researching options such as training, studying for qualifications, shadowing; managing own time, e.g. to fit in the development plan with other commitments.

Unit Description: You will develop knowledge and understanding of key marketing principles and practices with a focus on market research. You will also develop your research skills by applying these to the completion of the chosen market research project.

Unit Content:

Understand the principles of marketing

• Definitions and terminology of marketing; functions of marketing, e.g. distribution, financing, market research, pricing, product and service management, promotion and selling.
• Marketing objectives, e.g. build brand awareness, grow market share, launch new products or services, target new customers; market research objectives, e.g. to identify the needs, wants and demands of the target customer, measuring impact of promotional activities.
• Relationship of the marketing function with other organisational functions; elements of the marketing mix (7Ps).
• Market research techniques, e.g. surveys, focus groups, personal interviews, observation, field trials; primary (field) research, secondary (desk) research, target market, and market segmentation: demographic, psychographic, behavioural and geographic segmentation.
• Marketing strategy and how this fits with overall organisational strategy.

Understand how legislation and ethics impact on market research activity

• Legislation impact on marketing and market research e.g. data protection, consumer protection, advertising standards; anti-spam legislation; compliance with legislation.
• Awareness and avoidance of plagiarism; self-regulation.
• Research ethics, e.g. honesty, fairness, respect for others, abiding by legislation, obtaining consent.

Select and plan a market research project

• Setting marketing research objectives e.g. use of SMART criteria, clarity, tangibility; market research plans.
• Planning market research, e.g. problem definition, development of an approach to the problem, research design formulation, field work or data collection; importance of setting deadlines when carrying out market research.
• Constraints on market research e.g. scarcity of secondary (desk) research, suitability of secondary (desk) research, human resources, experience of researcher, time, competition; finance implications for market research, e.g. research budget.

Undertake market research for the chosen project and interpret the results

• Interviewing methods for market research, e.g. surveys, focus groups, personal interviews.
• Interpretation of market research results e.g. interpretation of data gathered, statistical analysis, logical reasoning to determine patterns, relationships or trends, awareness of bias; using analytical techniques to inform marketing decisions; ethical considerations.

Report on research results for the chosen project

• Market research reports; data preparation and analysis; presenting research results to a professional standard, e.g. use of appropriate media.
• Awareness of audience needs when presenting research results, e.g. prior knowledge and understanding; use of technology when presenting research results: data projectors; referencing conventions used in research reporting: Harvard system.
• Engaging in discussion of research undertaken: engaging in question and answer activities.
• Understand the wider implications of market research: organisational functions, e.g. finance, human resources, operations, customer service; relationship between marketing and other organisational functions; impact of research on resources available for other organisational functions; inter-functional communication, e.g. internal newsletters, emails, noticeboards; market research objectives and the relationship with the organisation's strategic objectives, including potential conflict; impact of market research on strategic decision taking.

Review own research skills

• Techniques used to identify own research skills, e.g. online surveys, self-reflection; obtaining feedback on own research skills, e.g. from peers and tutor.
• Analysis and evaluation of own research skills; recognising the shortfalls in own research skills, e.g. gap analysis.
• Planning for developing own research skills, e.g. personal development planning, setting short and long term goals, time management, training, obtaining qualifications.

Unit Description: You will develop knowledge and understanding of budgets, budgetary control, costings, cash flow, and basic ratio analysis. You will also have the opportunity to construct simple budgets and cashflows.

Unit Content:

Understand business costs and breakeven

• Definition and examples of fixed (indirect) costs: overheads, e.g. rent, insurance, utilities, machinery maintenance; definition and examples of variable (direct) costs, e.g. raw materials, packaging and delivery costs; definition and examples of semi variable costs, e.g. labour, repairs, power; definition of marginal cost.
• The figures required to calculate breakeven output: total fixed costs, variable cost per unit, selling price; the definition of contribution towards fixed costs; the impact of changing price on sales and the contribution towards breakeven; the significance of breakeven output.

Understand the importance of managing budgets

• The headings and most effective format for a required budget; the process of budgetary control: preparation, approval, execution, monitoring and evaluation; variance analysis, calculating and interpreting favourable and adverse variances.

Calculate and analyse basic financial ratios

• The gross and net profit ratio formulae; the return on capital ratio; the current and quick liquidity ratio formulae; the meaning and interpretation of the ratios.
• Ways of improving financial ratios, e.g. reducing costs, increasing income, reducing debt, increasing productivity of existing machinery.

Understand the importance of monitoring cash flow

• The difference between cash and profit; the importance of cash flow to a business; the components and formats of cash flow statements.
• The process of managing cash flow: cash flow forecasting, monitoring, reviewing costs and income, enacting decisions; the impact of cash flow management on other business functions, e.g. planning, monitoring and controlling departmental expenditure, in light of changes to cash flow.

Unit Description: You will develop knowledge and understanding of the concepts, principles and skills needed to lead and manage people.

Unit Content:

Understand the key elements of leadership and management

• Difference between management and leadership: leaders inspire and motivate, whereas managers plan, organise and coordinate; senior managers will set mission, vision, strategy and objectives in conjunction with the organisation's board of directors, leaders will inspire employees to meet these.
• Skills and qualities required for effective management: interpersonal skills; ability to communicate and motivate; ability to create a vision; ability to organise and delegate; ability to plan and think strategically; ability to problem solve and make decisions; commercial awareness; ability to mentor.
• Skills and qualities required for effective leadership: interpersonal skills; approachability; ability to inspire; ability to communicate and motivate; ability to create a vision; ability to influence; positivity; empathy; delegation; abdication of responsibility.

Understand how employees are led and managed

• Management theories: Frederick W. Taylor; Henri Fayol; Max Weber; Elton Mayo; Ludwig von Bertalanffy; Douglas McGregor.
• Leadership theories: Great Man; Trait Theory; Contingency; Situational Leadership Theory; Transformational Leadership Theory; Transactional Theories; Behavioural Theory.
• Key employee performance indicators: absenteeism; punctuality; meeting targets (sales, productivity); employee turnover; revenue per employee; profit per employee.
• Managing newly recruited employees: induction; probation period; mentoring; build positive working relationships.
• Managing teams and team performance: ensuring a balance of team skills and qualities; maintain communication; communicating objectives; regular progress meetings; foster a trust culture; celebrate success.
• Managing employees working remotely: regular one to one progress meetings; tracking progress; being flexible; setting expectations; ensuring contracted hours are met; regular communication opportunities; prompt response to employee needs; celebrate success.
• Managing conflict: talking with the parties involved; focus on behaviour and events, not on personalities; listening to all parties; identify points of agreement and disagreement; prioritise the areas of conflict; develop a plan to work on each conflict.

Understand how managers and leaders support employees

• Approaches to developing employees: developing employee strengths; listening to employees; providing constructive feedback; open door approach; employee welfare; buddy systems; foster a trust culture.
• Support for employees working remotely: setting expectations early to encourage healthy work schedules; daily 'virtual huddles'; regular video meetings which are short, but focused; tracking employees' progress; listen and act on employee concerns; offer praise and feedback.
• Support for teams: ensuring clear communication; listening to concerns about fair workload within the team; ensuring clarity of team roles; ensuring team members have opportunity to give their views; offer praise and feedback.

Understand how employees are motivated

• Motivation theories: Maslow; Herzberg; McClelland; Vroom; Porter and Lawler.
• How employees are motivated: use of targets; use of reward systems, e.g. remuneration package, bonuses; senior managers set mission, vision, strategy and objectives in conjunction with the board of directors, leaders inspire employees to meet these; managers use process, leaders use creativity; managers use a structured approach, leaders are more spontaneous; managers sympathise, leaders empathise.

Review own leadership and management skills

• Obtaining feedback on personal skills from peers and others; assessing own leadership skills; assessing own management skills; development planning to improve personal leadership and management skills.

Unit Description: You will develop knowledge and understanding of the HR function including recruitment, selection, retention, monitoring and development of employees.

Unit Content:

Understand the role of the Human Resource Function (HR)

• The role of the HR function to include: recruitment; selection; retention; support and development of employees; remuneration; termination of employee contracts; liaison with unions; compliance with legislation; management of grievance and disciplinary procedures.
• Relationship of HR to other organisational functions to include: management of budgets; organisational and functional skills needs analysis.
• Introduction to employment law to include compliance with: discrimination; health and safety; equality and diversity; data protection; employment legislation.

Understand HR responsibilities when recruiting employees or terminating employee contracts

• HR needs analysis; job analysis; preparing job description and personal specification documentation; interviewing potential employees; equality and diversity; disciplinary procedures.
• Termination of employee contracts to include: retirement, health grounds, misconduct, promotion, redundancy, employee leaving.

Understand how employees are supported and developed

• Induction of new employees; development of employees to include: training, coaching, mentoring and counselling methods; management shadowing; secondment opportunities; grievance procedures.
• Workplace welfare to include: managing workplace stress, supporting employees working remotely.
• The increased need for workplace welfare: increased pressures on workers as workloads increase due to staff shortages; increased costs of living pushing workers to take on more hours and overtime; increased use of remote working e.g. circumstances due to pandemic, leading to isolation of workers, lack of social interaction causing stress; improved understanding of welfare needs.

Understand how employees are monitored

• Employee observation; goal and target setting; appraisal process; peer appraisal; 360-degree appraisal; self-monitoring.
• Key Performance Indicators (KPIs), e.g.: absenteeism; punctuality; sales targets; productivity; employee turnover; revenue per employee; profit per employee.

Unit Description: You will develop knowledge and understanding of project management. You will also develop project management skills through the planning of a business-related project.

Unit Content:

Understand the principles of project management

• Principles of project management: aligning with organisational vision, mission and objectives; setting project aims and objectives; agreeing expected project outcomes; having a strategy for initiation and execution; project team roles and responsibilities; risk assessment and health and safety procedures; monitoring and measuring progress; accountability.
• Five steps for project management: initiation; planning; implementation; monitoring and controlling; closure.
• Project management skills: leadership; decision making; time management; technical expertise; meeting deadlines; ability to delegate; problem solving; negotiation; communication skills; liaising with others; planning skills.
• Project management qualities: enthusiasm; inspiring a shared vision; organised; patience; determination; able to cope with pressure; integrity; empathy.

Plan a project

• Planning process; importance of effective planning; contingency planning; funding a project: loans, grants, personal funds, sponsorship; project budgeting; simple investment appraisal - payback, ARR; identifying project resources.
• Planning tools, e.g.: Critical Path Analysis (CPA); Gantt charts; Project Evaluation and Review Technique (PERT); Work Breakdown Structure (WBS); Agile Project Management, Waterfall, Kanban; use of technology in project planning.
• Health and safety; risk assessments; publicity and advertising; procurement of resources, e.g. finance, venue, equipment, staff, refreshments, publicity; presenting project plans appropriately to different audiences.

Implement a project

• Implementation of a project according to the project plan; recording implementation of project, e.g. use of project log and activity tracking; monitoring a project; controlling a project; problem solving; conflict management; crisis management.

Review personal role and skills in managing a project

• Obtaining feedback from peers and project stakeholders on personal project management; review of project success against aims and objectives.
• Skills review to include: time management; liaising with other people when managing a project; project planning; implementing a project; identifying strengths and weaknesses.
• Skills development planning; preparing a skills development plan.