Supporting Significant Life Events

Edexcel BTEC Levels 4 and 5

Edexcel BTEC Levels 4 and 5 Higher Nationals specification in Business

Contents

Unit 1:

Business Environment

1

Unit 2:

Managing Financial Resources and Decisions

7

Unit 3:

Organisations and Behaviour

13

Unit 4:

Marketing Principles

19

Unit 5:

Aspects of Contract and Negligence for Business

25

Unit 6:

Business Decision Making

29

Unit 7:

Business Strategy

33

Unit 8:

Research Project

39

Unit 9:

Management Accounting: Costing and Budgeting

43

Unit 10:

Financial Accounting and Reporting

47

Unit 11:

Financial Systems and Auditing

51

Unit 12:

Taxation

55

Unit 13:

Personal and Professional Development

59

Unit 14:

Working with and Leading People

65

Unit 15:

Managing Business Activities to Achieve Results

69

Unit 16:

Managing Communications, Knowledge and

Information

73

Unit 17:

Marketing Intelligence

77

Unit 18:

Advertising and Promotion in Business

83

Unit 19:

Marketing Planning

89

Unit 20:

Sales Planning and Operations

95

Unit 21:

Human Resource Management

101

Unit 22:

Managing Human Resources

107

Unit 23:

Human Resources Development

113

Unit 24:

Employee Relations

117

Unit 25: English Legal System

121

Unit 26:

Business Law

125

Unit 27: Further Aspects of Contract and Tort

131

Unit 28:

European Law

135

Unit 29: The Internet and E-Business

139

Unit 30:

Internet Marketing

145

Unit 31:

E-Business Operations

151

Unit 32: Quality Management in Business

157

Unit 33: Small Business Enterprise

163

Unit 34: Operations Management in Business

169

Unit 35:

European Business

173

Unit 36:

Employment Law

177

Unit 37:

Company Law

181

Unit 38: Business Events Management

185

Unit 39: Financial Investment Opportunites

191

Unit 40: Business Work Experience

195

Unit 41: Contemporary Issues in Marketing Management

199

Unit 42: Project Management for Business

205

Unit 43:

Administrative Services

211

Unit 44:

Business Psychology

217

Unit 45:

Business Ethics

221

Unit 46: Corporate Environmental and Social Management

225

Unit 47:

Employability Skills

231

Unit 48: Project Design Implementation and Evaluation

237

Unit 49:

Work-based Experience

241

 UNIT 1: BUSINESS ENVIRONMENT

Unit 1:

Business Environment

Unit code:

Y/601/0546

QCF level:

4

Credit value:

15 credits

Aim

The aim of this unit is to provide learners with an understanding of different organisations, the influence of stakeholders and the relationship between businesses and the local, national and global environments.

Unit abstract

Organisations have a variety of purposes that depend on why they were established. Some operate for profit, whilst others do not. Organisations structure themselves and operate in ways that allow their objectives to be met. Every organisation has a range of stakeholders whcheap_assignment_help_uk-copyose interests need to be satisfied, but stakeholders have competing interests that may be hard to reconcile.

Businesses operate in an environment shaped by the government, competitors, consumers, suppliers, and international factors. Learners will understand that some influences on the business environment are direct and clear, for example taxation policies on corporate activities. Other influences are less clear, perhaps coming from the international arena and sometimes with only an oblique impact on the national business environment.

It is within this business environment that organisations function and have to determine strategies and a modus operandi that allow them to meet their organisational purposes in ways that comply with the relevant legal and regulatory frameworks. In addition, business markets take various forms and the structure of a market enables an understanding of how organisations behave. In this unit learners will consider how different market structures shape the pricing and output decisions of businesses, as well as other aspects of their behaviour.

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Learning outcomes

  • On successful completion of this unit a learner will:
  • 1Understand the organisational purposes of businesses
  • 2Understand the nature of the national environment in which businesses operate
  • 3Understand the behaviour of organisations in their market environment

4Be able to assess the significance of the global factors that shape national business activities.

 UNIT 1: BUSINESS ENVIRONMENT

Understand the organisational purposes of businesses Categories of organisation: legal structure; type eg private company, public company, government, voluntary organisation, co-operative, charitable; sector (primary, secondary tertiary)

Purposes: mission; vision; aims; objectives; goals; values; profits; market share; growth; return on capital employed (ROCE); sales; service level; customer satisfaction; corporate responsibility; ethical issues

Stakeholders: owners; customers; suppliers; employees; debtors; creditors; financial institutions (banks, mortgage lenders, credit factors); environmental groups; government agencies (central government, local authorities); trade unions

Responsibilities of organisations: stakeholder interests; conflict of expectations; power- influence matrix; satisfying stakeholder objectives; legal responsibilities eg consumer legislation, employee legislation, equal opportunities and anti-discriminatory legislation, environmental legislation, health and safety legislation; ethical issues eg environment, fair trade, global warming, charter compliance eg Banking Code

2Understand the nature of the national environment in which businesses operate

Economic systems: the allocation of scarce resources; effective use of resources; type of economic system eg command, free enterprise, mixed, transitional

The UK economy: size (gross domestic product, gross national product); structure; population; labour force; growth; inflation; balance of payments; balance of trade; exchange rates; trading partners; public finances (revenues, expenditure); taxation; government borrowing; business behaviour eg investment, objectives, risk awareness; cost of capital; consumer behaviour; propensity to save; propensity to spend; tastes and preferences

Government policy: economic goals; fiscal policy: control of aggregate demand; central and local government spending; Public Sector Net Borrowing (PSNB) and Public Sector Net Cash Requirement (PSNCR); euro convergence criteria, monetary policy; interest rates; quantitative easing; private finance initiative (PFI); competition policy (up-to-date legislation including Competition Act 1998, Enterprise Act 2002); Competition Commission, Office of Fair Trading; Directorate General for Competition); European Commission); sector regulators eg Ofgem, Ofwat, Civil Aviation Authority; Companies Acts; regional policy; industrial policy; enterprise strategy; training and skills policy

 UNIT 1: BUSINESS ENVIRONMENT

Understand the behaviour of organisations in their market environment

Market types: perfect competition, monopoly, monopolistic competition, oligopoly, duopoly; competitive advantage, strategies adopted by firms; regulation of competition

Market forces and organisational responses: supply and demand, elasticity of demand; elasticity of supply; customer perceptions and actions, pricing decisions; cost and output decisions; economies of scale, the short run; the long run, multi-national and transnational corporations; joint ventures, outsourcing; core markets; labour market trends; employee skills, technology; innovation; research and development; core competencies; business environment (political, economic, social, technical, legal, environmental); cultural environment

4Be able to assess the significance of the global factors that shape national business activities

Global factors: international trade and the UK economy; market opportunities; global growth; protectionism; World Trade Organisation (WTO); emerging markets (BRIC economies – Brazil, Russia, India, China); EU membership; EU business regulations and their incorporation in to UK law; EU policies eg agriculture (CAP), business, competition, growth, employment, education, economics and finance, employment, environment, science and technology, regional); labour movement; workforce skills; exchange rates; trading blocs (eg monetary unions, common markets; customs unions, free trade areas); labour costs; trade duties; levies; tariffs; customs dues; taxation regimes; international competitiveness; international business environment (political, economic, social, technical, legal, environmental); investment incentives; cost of capital; commodity prices; intellectual property; climate change eg Kyoto Protocol, Rio Earth Summit; third world poverty; the group of 20 (G-20); global financial stability

UNIT 1: BUSINESS ENVIRONMENT

Learning outcomes and assessment criteria

Learning outcomes

Assessment criteria for pass

On successful completion of

The learner can:

this unit a learner will:

LO1 Understand the

1.1

identify the purposes of different types of organisation

organisational purposes of

1.2

describe the extent to which an organisation meets the

businesses

objectives of different stakeholders

1.3

explain the responsibilities of an organisation and

strategies employed to meet them

LO2 Understand the nature of the

2.1

explain how economic systems attempt to allocate

national environment in

resources effectively

which businesses operate

2.2

assess the impact of fiscal and monetary policy on

business organisations and their activities

2.3

evaluate the impact of competition policy and other

regulatory mechanisms on the activities of a selected

organisation

LO3 Understand the behaviour of

3.1

explain how market structures determine the pricing

organisations in their market

and output decisions of businesses

environment

3.2

illustrate the way in which market forces shape

organisational responses using a range of examples

3.3

judge how the business and cultural environments

shape the behaviour of a selected organisation

LO4 Be able to assess the

4.1

discuss the significance of international trade to UK

significance of the global

business organisations

factors that shape national

4.2

analyse the impact of global factors on UK business

business activities

organisations

4.3

evaluate the impact of policies of the European Union on

UK business organisations.

UNIT 1: BUSINESS ENVIRONMENT

Guidance

This unit has links with other business and economics-focused units such as Unit 3: Organisations and Behaviour, Unit 7: Business Strategy, Unit 35: European Business and Unit 45: Business Ethics.

This unit also links to the Management and Leadership NOS as mapped in Annexe B.

  • Essential requirements
  • There are no essential or unique resources required for the delivery of this unit.
  • Employer engagement and vocational contexts

Centres can develop links with local employers. Many businesses look to employ learners when they finish their programmes of study and may provide information about the business environment which they operate in. They will have a view about the impact of the governmental and EU factors that shape how they behave.

Many learners are, or have been, employed and will be able to draw on their experience of employment and will have had experience of the nature of the business environment and the ways in which organisations respond to and determine the nature of that environment.

UNIT 2: MANAGING FINANCIAL RESOURCES AND DECISIONS

Unit 2:

Managing Financial Resources and

Decisions

Unit code:

H/601/0548

QCF level:

4

Credit value:

15 credits

Aim

The unit aim is to provide learners with an understanding of where and how to access sources of finance for a business, and the skills to use financial information for decision making.

Unit abstract

This unit is designed to give learners a broad understanding of the sources and availability of finance for a business organisation. Learners will learn how to evaluate these different sources and compare how they are used.

They will learn how financial information is recorded and how to use this information to make decisions for example in planning and budgeting.

Decisions relating to pricing and investment appraisal are also considered within the unit. Finally, learners will learn and apply techniques used to evaluate financial performance.

Learning outcomes

  • On successful completion of this unit a learner will:
  • 1Understand the sources of finance available to a business
  • 2 Understand the implications of finance as a resource within a business
  • 3 Be able to make financial decisions based on financial information
  • 4Be able to evaluate the financial performance of a business.

UNIT 2: MANAGING FINANCIAL RESOURCES AND DECISIONS

Unit content

1Understand the sources of finance available to a business

Range of sources: sources for different businesses; long term such as share capital; retained earnings; loans; third-party investment; short/medium term such as hire purchase and leasing; working capital stock control; cash management; debtor factoring

Implications of choices: legal, financial and dilution of control implications; bankruptcy

Choosing a source: advantages and disadvantages of different sources; suitability for purpose eg matching of term of finance to term of project

2Understand the implications of finance as a resource within a business

Finance costs: tangible costs eg interest, dividends; opportunity costs eg loss of alternative projects when using retained earnings; tax effects

Financial planning: the need to identify shortages and surpluses eg cash budgeting; implications of failure to finance adequately; overtrading

Decision making: information needs of different decision makers

Accounting for finance: how different types of finance and their costs appear in the financial statements of a business; the interaction of assets and liabilities on the balance sheet and on international equivalents under the International Accounting Standards (IAS)

3Be able to make financial decisions based on financial information

Budgeting decisions: analysis and monitoring of cash and other budgets

Costing and pricing decisions: calculation of unit costs, use within pricing decisions; sensitivity analysis

Investment appraisal: payback period; accounting rate of return; discounted cash flow techniques ie net present value; internal rate of return

Nature of long-term decisions: nature of investment importance of true value of money; cash flow; assumptions in capital investment decisions; advantages and disadvantages of each method

UNIT 2: MANAGING FINANCIAL RESOURCES AND DECISIONS

4Be able to evaluate the financial performance of a business

Terminology: introduction to debit, credit, books of prime entry, accounts and ledgers, trial balance, final accounts and international equivalents under the International Accounting Standards (IAS)

Financial statements: basic form, structure and purpose of main financial statements ie balance sheet, profit and loss account, cash flow statement, notes, preparation not required; changes to reporting requirements under the International Accounting Standards (IAS) eg statement of comprehensive income, statement of financial position; distinctions between different types of business ie limited company, partnership, sole trader

Interpretation: use of key accounting ratios for profitability, liquidity, efficiency and investment; comparison both external ie other companies, industry standards and internal ie previous periods, budgets

UNIT 2: MANAGING FINANCIAL RESOURCES AND DECISIONS

Learning outcomes and assessment criteria

Learning outcomes

Assessment criteria for pass

On successful completion of

The learner can:

this unit a learner will:

LO1 Understand the sources of

1.1

identify the sources of finance available to a business

finance available to a

1.2

assess the implications of the different sources

business

1.3

evaluate appropriate sources of finance for a business

project

LO2 Understand the implications

2.1

analyse the costs of different sources of finance

of finance as a resource

2.2

explain the importance of financial planning

within a business

2.3

assess the information needs of different decision

makers

2.4

explain the impact of finance on the financial statements

LO3 Be able to make financial

3.1

analyse budgets and make appropriate decisions

decisions based on financial

3.2

explain the calculation of unit costs and make pricing

information

decisions using relevant information

3.3

assess the viability of a project using investment

appraisal techniques

LO4 Be able to evaluate the

4.1

discuss the main financial statements

financial performance of a

4.2

compare appropriate formats of financial statements for

business

different types of business

4.3

interpret financial statements using appropriate ratios

and comparisons, both internal and external.

UNIT 2: MANAGING FINANCIAL RESOURCES AND DECISIONS

Guidance

This unit links with the following units within this specification Unit 6: Business Decision Making,

Unit 9: Management Accounting: Costing and Budgeting, Unit 10: Financial Accounting and Reporting, Unit 11: Financial Systems and Auditing and Unit 12: Taxation.

This unit also covers some of the underpinning knowledge and understanding for the NVQ in Accounting as set out in Annexe B.

The unit covers financial topics essential for learners who would like a career in this field and wish to gain membership of a professional accounting body.

Essential requirements

  • Learners will require access to financial and company reports.
  • Employer engagement and vocational contexts

Centres should develop links with local businesses. Many businesses and chambers of commerce want to promote local business and are often willing to provide work placements, visit opportunities, information about businesses and the local business context and guest speakers.

www.businessbritainuk.co.uk

provides information about business in Britain and has extensive

links to other business and business news sites.

www.fsb.org.uk

The Federation of Small Businesses provides information,

support and guidance about small businesses in the UK.

  UNIT 3: ORGANISATIONS AND BEHAVIOUR

Unit 3:

Organisations and Behaviour

Unit code:

H/601/0551

QCF level:

4

Credit value:

15 credits

Aim

The aim of this unit is to give learners an understanding of individual and group behaviour in organisations and to examine current theories and their application in managing behaviour in the workplace.

Unit abstract

This unit focuses on the behaviour of individuals and groups within organisations. It explores the links between the structure and culture of organisations and how these interact and influence the behaviour of the workforce. The structure of a large multi-national company with thousands of employees worldwide will be very different from a small local business with 20 employees. The way in which an organisation structures and organises its workforce will impact on the culture that develops within the organisation. This system of shared values and beliefs will determine and shape the accepted patterns of behaviour of an organisations workforce. The culture in organisations that differ in size, for example, or are from different sectors of the economy can be very different.

The structure and culture of an organisation are key factors which contribute to motivating the workforce at all levels of the organisation. The Japanese were instrumental in developing a culture of ‘continuous improvement through teamwork’ in their manufacturing industry. This culture has now been exported around the world and encapsulates the way in which structure and culture contribute to patterns of behaviour in the workplace. This unit will develop learner understanding of the behaviour of people within organisations and of the significance that organisational design has on shaping that behaviour.

Learning outcomes

  • On successful completion of this unit a learner will:
  • 1 Understand the relationship between organisational structure and culture
  • 2 Understand different approaches to management and leadership
  • 3Understand ways of using motivational theories in organisations
  • 4Understand mechanisms for developing effective teamwork in organisations.

UNIT 3: ORGANISATIONS AND BEHAVIOUR

Unit content

1Understand the relationship between organisational structure and culture

Types of organisation and associated structures: functional, product-based, geographically based, multi-functional and multi-divisional structures, matrix, centralisation and de- centralisation; organisational charts; spans of control; internal and external network structures; flexible working

Organisational culture: classification of organisational culture – power culture, role culture, task culture, person culture; cultural norms and symbols; values and beliefs; development of organisational culture

Diagnosing behavioural problems: concepts; principles; perspectives; methodology

Perception: definition; perceptual selection; perception and work behaviour; attitude; ability and aptitude; intelligence

Significance and nature of individual differences: self and self-image; personality and work behaviour; conflict

Individual behaviour at work: personality, traits and types; its relevance in understanding self and others

2Understand different approaches to management and leadership

Development of management thought: scientific management; classical administration; bureaucracy; human relations approach; systems approach; contingency approach

Functions of management: planning; organising; commanding; coordinating; controlling

Managerial roles: interpersonal; informational; decisional

Nature of managerial authority: power; authority; responsibility; delegation; conflict

Frames of reference for leadership activities: opportunist; diplomat; technician; achiever; strategist; magician; pluralistic; transformational; change

3Understand ways of using motivational theories in organisations

Motivation theories: Maslow’s Hierarchy of Needs; Herzberg’s Motivation – Hygiene theory; McGregor’s Theory X and Y; Vroom and Expectancy theories; Maccoby, McCrae and Costa – personality dimensions

Motivation and performance: rewards and incentives; motivation and managers; monetary and non-monetary rewards

Leadership: leadership in organisations; managers and leaders; leadership traits; management style; contingency approach; leadership and organisational culture

Leadership and successful change in organisations: pluralistic; transformational; communications; conflict

UNIT 3: ORGANISATIONS AND BEHAVIOUR

4Understand mechanisms for developing effective teamwork in organisations

Teams and team building: groups and teams; informal and formal groups; purpose of teams; selecting team members; team roles; Belbin’s theory; stages in team development; team building; team identity; team loyalty; commitment to shared beliefs; multi-disciplinary teams

Team dynamics: group norms; decision-making behaviour; dysfunctional teams; cohesiveness

Impact of technology on team functioning: technology; communication; change; networks and virtual teams; global and cross-cultural teams

UNIT 3: ORGANISATIONS AND BEHAVIOUR

Learning outcomes and assessment criteria

Learning outcomes

Assessment criteria for pass

On successful completion of

The learner can:

this unit a learner will:

LO1 Understand the relationship

1.1

compare and contrast different organisational structures

between organisational

and culture

structure and culture

1.2

explain how the relationship between an organisation’s

structure and culture can impact on the performance of

the business

1.3

discuss the factors which influence individual behaviour

at work

LO2 Understand different

2.1

compare the effectiveness of different leadership styles

approaches to management

in different organisations

and leadership

2.2

explain how organisational theory underpins the

practice of management

2.3

evaluate the different approaches to management used

by different organisations

LO3 Understand ways of using

3.1

discuss the impact that different leadership styles may

motivational theories in

have on motivation in organisations in periods of change

organisations

3.2

compare the application of different motivational

theories within the workplace

3.3

evaluate the usefulness of a motivation theory for

managers

LO4 Understand mechanisms for

4.1

explain the nature of groups and group behaviour within

developing effective

organisations

teamwork in organisations

4.2

discuss factors that may promote or inhibit the

development of effective teamwork in organisations

4.3

evaluate the impact of technology on team functioning

within a given organisation.

16

BH023329 – Edexcel BTEC Levels 4 and 5 Higher Nationals specification in Business

– Issue 1 – April 2010 © Edexcel Limited 2010

 UNIT 3: ORGANISATIONS AND BEHAVIOUR

Guidance

This unit links to the following units within this specification Unit 21: Human Resource Management, Unit 22: Managing Human Resources, Unit 23: Human Resources Developmentand Unit 24: Employee Relations.

This unit also links to the Management and Leadership NOS as mapped in Annexe B.

Essential requirements

There are no essential or unique resources required for the delivery of this unit.

Employer engagement and vocational contexts

Centres should develop links with local businesses. Many businesses and chambers of commerce want to promote local business and are often willing to provide guest speakers, visit opportunities and information about the operation of their businesses.

UNIT 4: MARKETING PRINCIPLES

Unit 4:

Marketing Principles

Unit code:

F/601/0556

QCF level:

4

Credit value:

15 credits

Aim

This unit aims to provide learners with understanding and skills relating to the fundamental concepts and principles that underpin the marketing process.

Unit abstract

This is a broad-based unit which gives learners the opportunity apply the key principles of marketing.

Firstly, the unit looks at the definitions of marketing, and what is meant by a marketing orientation and the marketing process.

Next, learners consider the use of environmental analysis in marketing and carry out their own analyses at both macro and micro levels. They will also investigate the importance of market segmentation and how this leads to the identification and full specification of target groups. Learners then consider buyer behaviour and positioning.

The unit looks at the main elements of both the original and the extended marketing mix. This includes an introduction to the concept of the product life cycle, new product development, pricing strategies, distribution options and the promotion mix.

Finally, learners will develop their own marketing mixes to meet the needs of different target groups. This includes considering the differences when marketing services as opposed to goods. A range of other contexts is examined including marketing to businesses instead of consumers and the development of international markets.

Learning outcomes

On successful completion of this unit a learner will:

1Understand the concept and process of marketing

2 Be able to use the concepts of segmentation, targeting and positioning

3 Understand the individual elements of the extended marketing mix

4Be able to use the marketing mix in different contexts.

UNIT 4: MARKETING PRINCIPLES

Unit content

1Understand the concept and process of marketing

Definitions: alternative definitions including those of the Chartered Institute of Marketing and the American Marketing Association; satisfying customer needs and wants; value and satisfaction; exchange relationships; the changing emphasis of marketing

Marketing concept: evolution of marketing; marketing orientations; societal issues and emergent philosophies; customer and competitor orientation; efficiency and effectiveness; limitations of the marketing concept

Marketing process overview: marketing audit; integrated marketing; environmental analysis; SWOT analysis; marketing objectives; constraints; options; plans to include target markets and marketing mix; scope of marketing

Costs and benefits: links between marketing orientation and building competitive advantage; benefits of building customer satisfaction; desired quality; service and customer care; relationship marketing; customer retention; customer profitability; costs of a too narrow marketing focus

2Be able to use the concepts of segmentation, targeting and positioning

Macro environment: environmental scanning; political, legal, economic, socio-cultural,ecological and technological factors

Micro environment: stakeholders (organisation’s own employees, suppliers, customers, intermediaries, owners, financiers, local residents, pressure groups and competitors); direct and indirect competitors; Porter’s competitive forces

Buyer behaviour: dimensions of buyer behaviour; environmental influences; personal variables – demographic, sociological, psychological – motivation, perception and learning; social factors; physiological stimuli; attitudes; other lifestyle and life cycle variables; consumer and organisational buying

Segmentation: process of market selection; macro and micro segmentation; bases for segmenting markets, (geographic, demographic, psychographic and behavioural); multi- variable segmentation and typologies; benefits of segmentation; evaluation of segments and targeting strategies; positioning; segmenting industrial markets; size; value; standards; industrial classification

Positioning: definition and meaning; influence over marketing mix factors

UNIT 4: MARKETING PRINCIPLES

3Understand the individual elements of the extended marketing mix

Product: products and brands – features, advantages and benefits; the total product concept; product mix; product life cycle and its effect on other elements of the marketing mix; product strategy; new product development; adoption process

Place: customer convenience and availability; definition of channels; types and functions of intermediaries; channel selection; integration and distribution systems; franchising; physical distribution management and logistics; ethical issues

Price: perceived value; pricing context and process; pricing strategies; demand elasticity; competition; costs, psychological, discriminatory; ethical issues

Promotion: awareness and image; effective communication; integrated communication process (SOSTT + 4Ms); promotional mix elements; push and pull strategies; advertising above and below the line including packaging; public relations and sponsorship; sales promotion; direct marketing and personal selling; branding, internet and online marketing

The shift from the 4Ps to the 7Ps: product-service continuum; concept of the extended marketing mix; the significance of the soft elements of marketing (people, physical evidence and process management)

4Be able to use the marketing mix in different contexts

Consumer markets: fast moving consumer goods; consumer durables; coordinated marketing mix to achieve objectives

Organisational markets: differences from consumer markets; adding value through service; industrial; non-profit making; government; re-seller

Services: nature and characteristics of service products (intangibility, ownership, inseparability, perishability, variability, heterogeneity – the 7Ps); strategies; service quality; elements of physical product marketing; tangible and intangible benefits

International markets: globalisation; cultural differences; standardisation versus adaptation; the EU; benefits and risks; market attractiveness; international marketing mix strategies

UNIT 4: MARKETING PRINCIPLES

Learning outcomes and assessment criteria

Learning outcomes

Assessment criteria for pass

On successful completion of

The learner can:

this unit a learner will:

LO1 Understand the concept and

1.1

explain the various elements of the marketing process

process of marketing

1.2

evaluate the benefits and costs of a marketing

orientation for a selected organisation

LO2 Be able to use the concepts

2.1

show macro and micro environmental factors which

of segmentation, targeting

influence marketing decisions

and positioning

2.2

propose segmentation criteria to be used for products in

different markets

2.3

choose a targeting strategy for a selected

product/service

2.4

demonstrate how buyer behaviour affects marketing

activities in different buying situations

2.5

propose new positioning for a selected product/service

LO3 Understand the individual

3.1

explain how products are developed to sustain

elements of the extended

competitive advantage

marketing mix

3.2

explain how distribution is arranged to provide customer

convenience

3.3

explain how prices are set to reflect an organisation’s

objectives and market conditions

3.4

illustrate how promotional activity is integrated to

achieve marketing objectives

3.5

analyse the additional elements of the extended

marketing mix

LO4 Be able to use the marketing

4.1

plan marketing mixes for two different segments in

mix in different contexts

consumer markets

4.2

illustrate differences in marketing products and services

to businesses rather than consumers

4.3

show how and why international marketing differs from

domestic marketing.

UNIT 4: MARKETING PRINCIPLES

Links

Learners who have achieved a BTEC Higher Nationals in Business have, for many years, been given entry to and exemptions from some parts of the Chartered Institute of Marketing’s professional examinations. Further information can be found in the Professional Body Recognitionbooklet available from the Edexcel website.

This unit forms the basis of the Higher National marketing pathway linking with other marketing units: Unit 17: Marketing Intelligence, Unit 18: Advertising and Promotion in Business, Unit 19: Marketing Planning and Unit 20: Sales Planning and Operations. There is also a link to Unit 1: Business Environment in relation to the areas of stakeholders, effects of demand elasticity on pricing and external market factors. The unit also provides links to Unit 30: Internet Marketingand

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Unit 41: Contemporary Issues in Marketing Management.

Essential requirements

There are no essential or unique resources required for the delivery of this unit.

Employer engagement and vocational contexts

Centres should develop links with local businesses. Many businesses and chambers of commerce want to promote local business and are often willing to provide work placements, visit opportunities, information about businesses and the local business context and guest speakers.

www.businessbritainuk.co.uk

provides information about business in Britain and has

extensive links to other business and business news sites.

www.fsb.org.uk

The Federation of Small Businesses provides information,

support and guidance about small businesses in the UK.

UNIT 5: ASPECTS OF CONTRACT AND NEGLIGENCE FOR BUSINESS

Unit 5:

Aspects of Contract and

Negligence for Business

Unit code:

Y/601/0563

QCF level:

4

Credit value:

15 credits

Aim

The aim of this unit is to provide learners with an understanding of aspects of the law of contract and tort and the skill to apply them, particularly in business situations.

Unit abstract

The unit introduces the law of contract, with a particular emphasis on the formation and operation of business contracts. Learners are encouraged to explore the content of these agreements and then develop skills relating to the practical application of business contracts, including offer, acceptance, intention, consideration and capacity. Relevant case law examples will be covered. Learners will consider when liability in contract arises, the nature of the obligations on both sides of the contract, and the availability of remedies when a contract is not fulfilled in accordance with its terms.

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Additionally, the unit will enable learners to understand how the law of tort differs from the law of contract and examine issues of liability in negligence relating to business and how to avoid it.

Learning outcomes

On successful completion of this unit a learner will:

1 Understand the essential elements of a valid contract in a business context

2 Be able to apply the elements of a contract in business situations

3Understand principles of liability in negligence in business activities

4Be able to apply the principles of liability in negligence in business situations.

BH023329 – Edexcel BTEC Levels 4 and 5 Higher Nationals specification in Business –

25

Issue 1 – April 2010 © Edexcel Limited 2010

UNIT 5: ASPECTS OF CONTRACT AND NEGLIGENCE FOR BUSINESS

Unit content

1Understand the essential elements of a valid contract in a business context

Essential elements: offer and acceptance; intention to create legal relations; consideration; capacity; privity of contract (note vitiating factors are included in Unit 27: Further

Aspects of Contract and Tort)

Types of contract: face to face; written; distance selling; impact

Types of terms: condition; warranty; innominate term; express; implied; exclusion clauses and their validity

2Be able to apply the elements of a contract in business situations

Elements: application of relevant principles and case law to business scenarios

Specific terms: contents of standard form business contracts; analysis of express terms, implied terms and exclusion clauses in a given contract

Effect of terms: breach of condition, warranty and innominate terms; legality of exemption clauses; outline of remedies; damages

3Understand principles of liability in negligence in business activities

Negligence: differences to contract; duty of care; breach of duty; damage – causation and remoteness of damage; personal injuries; damage to property; economic loss; occupier liability

Liability: employer’s liability; vicarious liability; health and safety issues

4Be able to apply principles of liability in negligence in business situations

Negligence: application of the legal principles of negligence and relevant statutory and case law to business scenarios including: personal injuries, damage to property, economic loss, occupier liability; defences; contributory negligence; remedies

UNIT 5: ASPECTS OF CONTRACT AND NEGLIGENCE FOR BUSINESS

Learning outcomes and assessment criteria

Learning outcomes

Assessment criteria for pass

On successful completion of

The learner can:

this unit a learner will:

LO1 Understand the essential

1.1

explain the importance of the essential elements

elements of a valid contract

required for the formation of a valid contract

in a business context

1.2

discuss the impact of different types of contract

1.3

analyse terms in contracts with reference to their

meaning and effect

LO2 Be able to apply the

2.1

apply the elements of contract in given business

elements of a contract in

scenarios

business situations

2.2

apply the law on terms in different contracts

2.3

evaluate the effect of different terms in given contracts

LO3 Understand principles of

3.1

contrast liability in tort with contractual liability

liability in negligence in

3.2

explain the nature of liability in negligence

business activities

3.3

explain how a business can be vicariously liable

LO4 Be able to apply principles of

4.1

apply the elements of the tort of negligence and

liability in negligence in

defences in different business situations

business situations

4.2

apply the elements of vicarious liability in given business

situations.

UNIT 5: ASPECTS OF CONTRACT AND NEGLIGENCE FOR BUSINESS

This unit links with all the law units in the BTEC Higher Nationals in Business.

Essential requirements

Learners will require access to law reports and contractual documents, such as existing business standard form contracts.

Employer engagement and vocational contexts

Centres should develop links with local businesses. Many businesses and chambers of commerce want to promote local business and are often willing to provide visit opportunities, guest speakers or information about their business and the local business context.

UNIT 6: BUSINESS DECISION MAKING

Unit 6:

Business Decision Making

Unit code:

D/601/0578

QCF level:

5

Credit value:

15 credits

Aim

The aim of this unit is to give learners the opportunity to develop techniques for data gathering and storage, an understanding of the tools available to create and present useful information, in order to make business decisions

Unit abstract

In business, good decision making requires the effective use of information. This unit gives learners the opportunity to examine a variety of sources and develop techniques in relation to four aspects of information: data gathering, data storage, and the tools available to create and present useful information.

ICT is used in business to carry out much of this work and an appreciation and use of appropriate ICT software is central to completion of this unit. Specifically, learners will use spreadsheets and other software for data analysis and the preparation of information. The use of spreadsheets to manipulate of numbers, and understanding how to apply the results, are seen as more important than the mathematical derivation of formulae used.

Learners will gain an appreciation of information systems currently used at all levels in an organisation as aids to decision making.

Learning outcomes

On successful completion of this unit a learner will:

1Be able to use a variety of sources for the collection of data, both primary and secondary

2Understand a range of techniques to analyse data effectively for business purposes

3Be able to produce information in appropriate formats for decision making in an organisational context

4Be able to use software-generated information to make decisions in an organisation.

UNIT 6: BUSINESS DECISION MAKING

1Be able to use a variety of sources for the collection of data, both primary and secondary

Primary sources: survey methodology; questionnaire design; sample frame; sampling methods; sample error

Secondary sources: internet research; government and other published data; by-product data

Storage: security of information; data protection issues; ethical issues

2Understand a range of techniques to analyse data effectively for business purposes

Representative values: mean, median, mode; calculation from raw data and frequency distributions using appropriate software; using the results to draw valid conclusions

Measures of dispersion: standard deviation for small and large samples; typical uses (statistical process eg control, buffer stock levels)

Calculation: use of quartiles, percentiles, correlation coefficient

3Be able to produce information in appropriate formats for decision making in an organisational context

Creation and interpretation of graphs using spreadsheets: line, pie, bar charts and histograms

Scatter (XY) graphs and linear trend lines: extrapolation for forecasting (reliability)

Presentations and report writing: use of appropriate formats; presentation software and techniques

4Be able to use software-generated information to make decisions in an organisation

Management information systems: computers and information processing tools for operational, tactical and strategic levels of the organisation

Project management: networking and critical path analysis, Gantt and Pert charts

Financial tools: net present value; discounted cash flow; internal rates of return

UNIT 6: BUSINESS DECISION MAKING

Learning outcomes and assessment criteria

Learning outcomes

Assessment criteria for pass

On successful completion of

The learner can:

this unit a learner will:

LO1 Be able to use a variety of

1.1

create a plan for the collection of primary and secondary

sources for the collection of

data for a given business problem

data, both primary and

1.2

present the survey methodology and sampling frame

secondary

used

1.3

design a questionnaire for a given business problem

LO2 Understand a range of

2.1

create information for decision making by summarising

techniques to analyse data

data using representative values

effectively for business

2.2

analyse the results to draw valid conclusions in a

purposes

business context

2.3

analyse data using measures of dispersion to inform a

given business scenario

2.4

explain how quartiles, percentiles and the correlation

coefficient are used to draw useful conclusions in a

business context

LO3 Be able to produce

3.1

produce graphs using spreadsheets and draw valid

information in appropriate

conclusions based on the information derived

formats for decision making

3.2

create trend lines in spreadsheet graphs to assist in

in an organisational context

forecasting for specified business information

3.3

prepare a business presentation using suitable software

and techniques to disseminate information effectively

3.4

produce a formal business report

LO4 Be able to use software-

4.1

use appropriate information processing tools

generated information to

4.2

prepare a project plan for an activity and determine the

make decisions in an

critical path

organisation

4.3

use financial tools for decision making.

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UNIT 6: BUSINESS DECISION MAKING

Guidance

Links

This unit is should be linked to the other core units in the programme in particular: Unit 1: Business Environment, Unit 2: Managing Financial Resources and Decisions; Unit 7: Business Strategy and Unit 8: Research Project.

There are also links with the following specialist units: Unit 9: Management Accounting: Costing and Budgeting, Unit 15: Managing Business Activities to Achieve Results, Unit 16: Managing Communications, Knowledge and Information; Unit 19: Marketing Planning and Unit 34: Operations Management in Business.

This unit also links to the Management and Leadership NOS as mapped in Annexe B.

Essential requirements

It is essential that learners have access to computers and the internet and specialist packages for statistical analysis and network planning.

Employer engagement and vocational contexts

Centres should try to develop links with local businesses. Many businesses and chambers of commerce are keen to promote local business and are often willing to provide visit opportunities, guest speakers, information about business and the local business context.

UNIT 7: BUSINESS STRATEGY

Unit 7:

Business Strategy

Unit code:

A/601/0796

QCF level:

5

Credit value:

15 credits

Aim

The aim of this unit is to give learners the knowledge and understanding of how a business unit can strategically organise and plan for likely future outcomes in order to be successful.

Unit abstract

One of the aims of this unit is to build on learners’ existing knowledge of the basic tools of business analysis such as PESTLE and draw it together so that the learners think strategically.

Learners will be introduced to further analysis tools needed for the process of strategic planning. They will be able to explain the significance of stakeholder analysis and carry out an environmental and organisational audit of a given organisation.

Learners will learn how to apply strategic positioning techniques to the analysis of a given organisation and prepare a strategic plan based on previous analysis. They will also learn how to evaluate possible alternative strategies (such as substantive growth, limited growth or retrenchment) and then select an appropriate future strategy for a given organisation.

Finally, learners will compare the roles and responsibilities for strategy implementation and evaluate resource requirements for the implementation of a new strategy for a given organisation. Learners will then be able to propose targets and timescales for implementation and monitoring of the strategy in a given organisation.

Learning outcomes

On successful completion of this unit a learner will:

  • 1 Understand the process of strategic planning
  • 2Be able to formulate a new strategy
  • 3 Understand approaches to strategy evaluation and selection
  • 4Understand how to implement a chosen strategy.

UNIT 7: BUSINESS STRATEGY

Unit content

1Understand the process of strategic planning

Strategic contexts and terminology: role of strategy; missions; visions; strategic intent; objectives; goals; core competencies; strategic architecture; strategic control

Strategic thinking: future direction of the competition; needs of customers; gaining and maintaining competitive advantage; Ansoff’s growth-vector matrix; portfolio analysis

Planning systems: informal planning; top-down planning; bottom-up planning; behavioural approaches

Strategic planning issues: impact on managers; targets; when to plan; who should be involved; role of planning

Strategic planning techniques: BCG growth-share matrix; directional policy matrices; SPACE, PIMS

2Be able to formulate a new strategy

Stakeholder analysis: stakeholder significance grid; stakeholder mapping

Environment auditing: political, economic, socio-cultural, technological, legal and environmental analysis (PESTLE); Porter’s 5 force analysis; the threat of new entrants; the power of buyers; the power of suppliers; the threat of substitutes; competitive rivalry and collaboration

Strategic positioning: the Ansoff matrix; growth; stability; profitability; efficiency; market leadership; survival; mergers and acquisitions; expansion into the global marketplace

The organisational audit: benchmarking; SWOT analysis; product positions;value-chain analysis; demographic influences; scenario planning; synergy culture and values

3Understand approaches to strategy evaluation and selection

Market entry strategies: organic growth; growth by merger or acquisition; strategic alliances; licensing; franchising

Substantive growth strategies: horizontal and vertical integration; related and unrelated diversification

Limited growth strategies: do nothing; market penetration; market development; product development; innovation

Disinvestment strategies: retrenchment; turnaround strategies; divestment; liquidation

Strategy selection: considering the alternatives; appropriateness; feasibility; desirability

UNIT 7: BUSINESS STRATEGY

4Understand how to implement a chosen strategy

The realisation of strategic plans to operational reality: communication (selling the concepts); project teams; identification of team and individual roles, responsibilities and targets; programme of activities; benchmark targets at differing levels of the organisation

Resource allocation: finance; human resources; materials; time

Review and evaluation: an evaluation of the benchmarked outcomes in a given time period in relation to corporate, operational and individual targets

UNIT 7: BUSINESS STRATEGY

Learning outcomes and assessment criteria

Learning outcomes

Assessment criteria for pass

On successful completion of

The learner can:

this unit a learner will:

LO1 Understand the process of

1.1

explain strategic contexts and terminology – missions,

strategic planning

visions, objectives, goals, core competencies

1.2

review the issues involved in strategic planning

1.3

explain different planning techniques

LO2 Be able to formulate a new

2.1

produce an organisational audit for a given organisation

strategy

2.2

carry out an environmental audit for a given organisation

2.3

explain the significance of stakeholder analysis

LO3 Understand approaches to

3.1

analyse possible alternative strategies relating to

strategy evaluation and

substantive growth, limited growth or retrenchment

selection

3.2

select an appropriate future strategy for a given

organisation

LO4 Understand how to

4.1

compare the roles and responsibilities for strategy

implement a chosen strategy

implementation

4.2

evaluate resource requirements to implement a new

strategy for a given organisation

4.3

discuss targets and timescales for achievement in a

given organisation to monitor a given strategy.

UNIT 7: BUSINESS STRATEGY

Guidance

This unit should be linked with the other core units in the programme. It draws on the underpinning knowledge gained in the core and specialist units in the programme. Pre-requisitesfor this unit are core Unit 1: Business Environment, Unit 2: Managing Financial Resources and Decisions, Unit 3: Organisations and Behaviour and Unit 4: Marketing Principles.

Essential requirements

There are no essential or unique resources required for the delivery of this unit.

Employer engagement and vocational contexts

Centres should try to develop links with local businesses. Many businesses and chambers of commerce are keen to promote local business and are often willing to provide visit opportunities, guest speakers and information about business and the local business context.

 

UNIT 8: RESEARCH PROJECT

Unit 8:

Research Project

Unit code:

K/601/0941

QCF level:

5

Credit value:

20 credits

Aim

To develop learners’ skills of independent enquiry and critical analysis by undertaking a sustained research investigation of direct relevance to their Higher Education programme and professional development.

Unit abstract

This unit is designed to enable learners to become confident using research techniques and methods. It addresses the elements that make up formal research including the proposal, a variety of research methodologies, action planning, carrying out the research itself and presenting the findings. To complete the unit satisfactorily, learners must also understand the theory that underpins formal research.

The actual research depends on the learner, the context of their area of learning, their focus of interest and the anticipated outcomes. The unit draws together a range of other areas from within the programme to form a holistic piece of work that will make a positive contribution to the learner’s area of interest. Learners should seek approval from their tutors before starting their research project.

Learning outcomes

On successful completion of this unit a learner will:

1Understand how to formulate a research specification

2 Be able to implement the research project within agreed procedures and to specification

3 Be able to evaluate the research outcomes

4Be able to present the research outcomes.

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UNIT 8: RESEARCH PROJECT

Unit content

1Understand how to formulate a research specification

Research formulation: aims and objectives; rationale for selection; methodology for data collection and analysis; literature review; critique of references from primary sources eg questionnaires, interviews; secondary sources eg books, journals, internet; scope and limitations; implications eg resources

Hypothesis: definition; suitability; skills and knowledge to be gained; aims and objectives; terms of reference; duration; ethical issues

Action plan: rationale for research question or hypothesis; milestones; task dates; review dates; monitoring/reviewing process; strategy

Research design: type of research eg qualitative, quantitative, systematic, original; methodology; resources; statistical analyses; validity; reliability; control of variables

2Be able to implement the research project within agreed procedures and to specification

Implement: according to research design and method; test research hypotheses; considering test validity; reliability

Data collection: selection of appropriate tools for data collection; types eg qualitative, quantitative; systematic recording; methodological problems eg bias, variables and control of variables, validity and reliability

Data analysis and interpretation: qualitative and quantitative data analysis – interpreting transcripts; coding techniques; specialist software; statistical tables; comparison of variable; trends; forecasting

3Be able to evaluate the research outcomes

Evaluation of outcomes: an overview of the success or failure of the research project planning, aims and objectives, evidence and findings, validity, reliability, benefits, difficulties, conclusion(s)

Future consideration: significance of research investigation; application of research results; implications; limitations of the investigation; improvements; recommendations for the future, areas for future research

4Be able to present the research outcomes

Format: professional delivery format appropriate to the audience; use of appropriate media

UNIT 8: RESEARCH PROJECT

Learning outcomes and assessment criteria

Learning outcomes

Assessment criteria for pass

On successful completion of

The learner can:

this unit a learner will:

LO1 Understand how to

1.1

formulate and record possible research project outline

formulate a research

specifications

specification

1.2

identify the factors that contribute to the process of

research project selection

1.3

undertake a critical review of key references

1.4

produce a research project specification

1.5

provide an appropriate plan and procedures for the

agreed research specification

LO2 Be able to implement the

2.1

match resources efficiently to the research question or

research project within

hypothesis

agreed procedures and to

2.2

undertake the proposed research investigation in

specification

accordance with the agreed specification and

procedures

2.3

record and collate relevant data where appropriate

LO3 Be able to evaluate the

3.1

use appropriate research evaluation techniques

research outcomes

3.2

interpret and analyse the results in terms of the original

research specification

3.3

make recommendations and justify areas for further

consideration

LO4 Be able to present the

4.1

use an agreed format and appropriate media to present

research outcomes

the outcomes of the research to an audience.

UNIT 8: RESEARCH PROJECT

Guidance

Links

This unit may be linked to single or several units in the programme, depending on the research topic and the context of the area of learning. It can be linked to Unit 49: Work-basedExperience and gives learners the opportunity to carry out research in the same organisation where they undertook their placement.

Essential requirements

Tutors will need to establish the availability of resources to support independent study before learners proceed with their proposal.

Employer engagement and vocational contexts

Centres should try to establish relationships with appropriate organisations in order to bring realism and relevance to learners’ research projects.

UNIT 9: MANAGEMENT ACCOUNTING: COSTING AND BUDGETING

Unit 9:

Management Accounting: Costing

and Budgeting

Unit code:

R/601/0836

QCF level:

4

Credit value:

15 credits

Aim

The aim of this unit is to provide learners with the understanding and ability to use cost information for budgeting and forecasting purposes in the management of business.

Unit abstract

This unit looks at the cost information, both current and future, of businesses. It looks at how cost data is collected, compiled and analysed, and processed into information that is useful for business managers. Learners will have the opportunity to apply these principles to practice.

The unit then deals with budgetary planning and control. It looks at how to prepare forecasts and budgets and to compare these to actual business results. Learners will again have practical experience of this.

Finally, the unit considers different costing and budgetary systems and the causes of resulting variances, together with the possible implications and the corrective action the business will need to take.

Learning outcomes

On successful completion of this unit a learner will:

  • 1Be able to analyse cost information within a business
  • 2 Be able to propose methods to reduce costs and enhance value within a business
  • 3Be able to prepare forecasts and budgets for a business
  • 4Be able to monitor performance against budgets within a business.

UNIT 9: MANAGEMENT ACCOUNTING: COSTING AND BUDGETING

Unit content

1Be able to analyse cost information within a business

Types of costs and classification: materials; labour; overheads; direct and indirect; fixed; variable and semi-variable

Costing methods: job costing; batch costing; process costing; contract costing; service costing

Cost measurement: absorption and marginal costing; traditional overhead absorption andactivity-based costing; stock valuation methods (FIFO, LIFO, AVCO, standard costing)

Costing as basis for pricing and stock valuation: cost plus pricing; market pricing; target costing

Data collection and analysis: sampling methods and purpose; presentation of data eg tabular, diagrammatical, graphical; index numbers

2Be able to propose methods to reduce costs and enhance value within a business

Cost reports: preparation; comparison with other data; explanation and implication of variances

Performance indicators: monitor and assess to identify potential improvements

Quality and value: definitions and interaction; added value; total quality management

3Be able to prepare forecasts and budgets for a business

The budgeting process: purpose; benefits; links with organisational objectives/strategy; the budget manual; budgets as planning, coordinating, motivation and control devices

Budget preparation: limiting or key factors; master, subsidiary and functional budgets; cash budgets; the preparation of sales budget, debtors’ budgets, creditors’ budgets, production costs, raw materials and finished goods budgets

Budgeting methods: incremental; zero-based; fixed and flexible

Behavioural consequences of budgets: padding the budget; spending to budget; creative budgets

4Be able to monitor performance against budgets within a business

Variances: types; analysis; calculation; possible causes; corrective action

Reporting: operating statement; reconciliation of budgeted and actual results

Responsibility centres: relevance to budgeting; identification of responsibility for variances

UNIT 9: MANAGEMENT ACCOUNTING: COSTING AND BUDGETING

Learning outcomes and assessment criteria

Learning outcomes

Assessment criteria for pass

On successful completion of

The learner can:

this unit a learner will:

LO1 Be able to analyse cost

1.1

classify different types of cost

information within a business

1.2

use different costing methods

1.3

calculate costs using appropriate techniques

1.4

analyse cost data using appropriate techniques

LO2 Be able to propose methods

2.1

prepare and analyse routine cost reports

to reduce costs and enhance

2.2

use performance indicators to identify potential

value within a business

improvements

2.3

suggest improvements to reduce costs, enhance value

and quality

LO3 Be able to prepare forecasts

3.1

explain the purpose and nature of the budgeting

and budgets for a business

process

3.2

select appropriate budgeting methods for the

organisation and its needs

3.3

prepare budgets according to the chosen budgeting

method

3.4

prepare a cash budget

LO4 Be able to monitor

4.1

calculate variances, identify possible causes and

performance against

recommend corrective action

budgets within a business

4.2

prepare an operating statement reconciling budgeted

and actual results

4.3

report findings to management in accordance with

identified responsibility centres.

UNIT 9: MANAGEMENT ACCOUNTING: COSTING AND BUDGETING

Guidance

Links

The unit links with the following units within the specification: Unit 2: Managing Financial Resources and Decisions, Unit 6: Business Decision Making, Unit 10: Financial Accounting and Reporting, Unit 11: Financial Systems and Auditing and Unit 12: Taxation.

Additionally it covers some of the underpinning knowledge and understanding for NVQ in Accounting as mapped in Annexe B.

The unit covers topics essential to learners aiming for a career in management accounting and who would like to become members of professional accounting bodies.

Essential requirements

There are no essential or unique resources required for the delivery of this unit.

Employer engagement and vocational contexts

Centres should develop links with local businesses. Many businesses and chambers of commerce want to promote local business and are often willing to provide work placements, visit opportunities, information about businesses and the local business context and guest speakers.

UNIT 10: FINANCIAL ACCOUNTING AND REPORTING

Unit 10:

Financial Accounting and Reporting

Unit code:

F/601/0864

QCF level:

4

Credit value:

15 credits

Aim

In this unit learners will prepare financial statements for different types of business, complying with relevant legal and regulatory provisions and the basic principles of group accounts. Learners will also develop tools for the interpretation of financial statements.

Unit abstract

It is essential for the success of any business that it has good financial control and record keeping. Lack of effective control, planning and recording can ultimately lead to poor financial results. Owners and managers need to be able to recognise the indications of potential difficulties and take remedial action when required.

The unit considers the current regulations governing financial reporting, the formats of financial statements and the purpose of these statements for different users.

Learners will use records to complete financial statements. They will consider various categories of business income and expenditure and use cash flow forecasts, monitoring and adjusting for the effective management of cash flow. They will measure financial performance using a profit and loss account and balance sheet and analyse the profitability, liquidity and efficiency of a business through the application of ratio analysis.

Learning outcomes

On successful completion of this unit a learner will:

1Understand the regulatory framework for financial reporting

2 Be able to prepare financial statements from complete or incomplete records

3 Be able to present financial information in accepted formats for publication

4Be able to interpret financial statements.

UNIT 10: FINANCIAL ACCOUNTING AND REPORTING

Unit content

1Understand the regulatory framework for financial reporting

User groups: owners; managers; employees; suppliers; customers; lenders; government; potential investors; different needs from financial statements

User needs: profitability; liquidity; gearing; cash flow; job security; Accounting Standards Board (ASBs) statement of principles; International Accounting Standards Board (IASBs) framework for the presentation of financial statements

Legislation: current legislation including Companies Acts 1985, 1989 and 2006; Partnership Act 1890; European directives

Other regulations: International Accounting Standards (IASs); International Financial Reporting Standards and the main differences from UK Statements of Standard Accounting Practice (SSAPs) and Financial Reporting Standards (FRSs); The Accounting Standards Board (ASB)

2Be able to prepare financial statements from complete or incomplete records

Statements: trial balance; assets, liabilities, income, expenses, capital; profit and loss accounts; balance sheet; cash flow statement; notes to the accounts; statement of recognised gains and losses; international equivalents under the International Accounting Standards (IAS)

Types of business: sole trader; partnership; limited company (public and private); manufacturing/service/retail, group of companies

Preparation: from trial balance with adjustments eg stock, prepayments, accruals, bad debts, depreciation; from incomplete records; basic consolidation of accounts; changes to reporting requirements under the International Accounting Standards (IAS) eg statement of comprehensive income, statement of financial position

3Be able to present financial information in accepted formats for publication

Types of business: different formats for the businesses described in learning outcome 2 above; annual report

Formats: requirements of law and generally accepted accounting practice; changes to reporting requirements under the International Accounting Standards (IAS)

4Be able to interpret financial statements

Ratios: calculate ratios to reflect profitability, liquidity, efficiency, gearing, investment; comparison of these ratios both externally (other companies, industry standards) and internally (previous periods); interpretation of results

Reporting: present findings in a format appropriate to users; weaknesses and limitations of analysis

UNIT 10: FINANCIAL ACCOUNTING AND REPORTING

Learning outcomes and assessment criteria

Learning outcomes

Assessment criteria for pass

On successful completion of

The learner can:

this unit a learner will:

LO1 Understand the regulatory

1.1

describe the different users of financial statements and

framework for financial

their needs

reporting

1.2

explain the legal and regulatory influences on financial

statements

1.3

assess the implications for users

1.4

explain how different laws/regulations are dealt with by

accounting and reporting standards

LO2 Be able to prepare financial

2.1

prepare financial statements for a variety of businesses

statements from complete or

from a trial balance, making appropriate adjustments

incomplete records

2.1

prepare financial statements from incomplete records

2.3

prepare a consolidated balance sheet and profit and

loss account for a simple group of companies

LO3 Be able to present financial

3.1

explain how the information needs of different user

information in accepted

groups vary

formats for publication

3.2

prepare financial statements in a form suitable for

publication by a sole trader, partnership and limited

company

LO4 Be able to interpret financial

4.1

calculate accounting ratios to assess the performance

statements

and position of a business

4.2

prepare a report incorporating and interpreting

accounting ratios, including suitable comparisons.

UNIT 10: FINANCIAL ACCOUNTING AND REPORTING

Guidance

Links

The unit links with the following units within the specification: Unit 2: Managing Financial Resources and Decisions, Unit 6: Business Decision Making, Unit 9: Management Accounting: Costing and Budgeting, Unit 11: Financial Systems and Auditing and Unit 12: Taxation.

Additionally, the unit covers some of the underpinning knowledge and understanding for the NVQ in Accounting as mapped in Annexe B.

The unit covers topics essential for learners aiming to make a career in this field and who would like to become members of professional accounting bodies.

Essential requirements

Published financial reports of public limited companies are essential and are available from the companies themselves, or from the free online service provided by The Financial Times.

Employer engagement and vocational contexts

Centres should develop links with local businesses. Many businesses and chambers of commerce want to promote local business and are often willing to provide work placements, visit opportunities, information about businesses and the local business context and guest speakers.

www.businessbritainuk.co.uk

provides information about business in Britain and has

extensive links to other business and business news sites.

www.fsb.org.uk

The Federation of Small Businesses provides information,

support and guidance about small businesses in the UK.

UNIT 11: FINANCIAL SYSTEMS AND AUDITING

Unit 11:

Financial Systems and Auditing

Unit code:

J/601/0901

QCF level:

5

Credit value:

15 credits

Aim

The aim of this unit is to enable learners to develop understanding and skills in the management of business accounting systems and the conduct and reporting of audits.

Unit abstract

In this unit learners will develop skills to evaluate the accounting systems of a business, using both computerised and manual records, and apply fundamental concepts. Learners will also analyse the management control systems of a business and evaluate their effectiveness, particularly in terms of controls and safeguards against error and fraud.

This unit will also enable learners to develop audit skills by contributing to the planning and performance of an audit and the preparation of an audit report.

Learning outcomes

On successful completion of this unit a learner will:

1 Understand the importance of keeping effective accounting systems within a business

2Be able to analyse the management control systems of a business

3 Be able to contribute to the planning and conduct of an audit assignment

4Be able to prepare audit reports.

UNIT 11: FINANCIAL SYSTEMS AND AUDITING

Unit content

1Understand the importance of keeping effective accounting systems within a business

Accounting records: books of prime entry (daybooks); accounts and ledgers (sales, purchases, nominal/general); trial balance; final accounts

Fundamental accounting concepts: accruals; prudence; consistency; going concern; materiality; business entity

Accounting systems: manual and computerised; effect of business size and structure

2Be able to analyse the management control systems of a business

Business risk: types eg operational, financial, compliance; identification of risk and responsibility for risk management; influences on corporate governance eg Cadbury Code

Control: control systems and procedures within the business eg segregation of duties, authorisation

Fraud: types; implications; detection

3Be able to contribute to the planning and conduct of an audit assignment

Regulatory environment: legal duties and status of auditors; liability of auditors; auditing standards and guidelines

Role of the auditor: internal and external audit and the relationship between the two; responsibilities of management as opposed to auditors

Audit planning: scope; materiality; risk

Audit testing: systems based (compliance) and substantive testing; sampling methods eg random, stratified, systematic; confidence intervals

Records: audit files and working papers; checklists and programmes; flow charts and questionnaires

4Be able to prepare audit reports

Statutory reports: purpose; content (opinion of auditor), qualified and unqualified, types of qualification

Management letters: purpose and content

UNIT 11: FINANCIAL SYSTEMS AND AUDITING

Learning outcomes and assessment criteria

Learning outcomes

Assessment criteria for pass

On successful completion of

The learner can:

this unit a learner will:

LO1 Understand the importance

1.1

explain the purpose and use of the different accounting

of keeping effective

records

accounting systems within a

1.2

assess the importance and meaning of the fundamental

business

accounting concepts

1.3

evaluate the factors which influence the nature and

structure of accounting systems

LO2 Be able to analyse the

2.1

identify the different components of business risk

management control

2.2

analyse the control systems in place in a business

systems of a business

2.3

evaluate the risk of fraud within a business suggesting

methods for detection

LO3 Be able to contribute to the

3.1

plan an audit with reference to scope, materiality and

planning and conduct of an

risk

audit assignment

3.2

identify and use appropriate audit tests

3.3

record the audit process in an appropriate manner

LO4 Be able to prepare audit

4.1

prepare a draft audit report

reports

4.2

draft suitable management letters in relation to a

statutory audit.

 UNIT 11: FINANCIAL SYSTEMS AND AUDITING

Guidance

Links

The unit links with the following units in the programme: Unit 2: Managing Financial Resources and Decisions, Unit 6: Business Decision Making, Unit 9: Management Accounting: Costing and Budgeting, Unit 10: Financial Accounting and Reporting and Unit 12: Taxation.

Learners should complete Unit 10: Financial Accounting and Reporting before starting this unit.

Additionally the unit covers some of the underpinning knowledge and understanding for the NVQ in Accounting as mapped in Annexe B.

The unit covers topics essential for learners aiming to make a career within finance and who would like to become members of professional accounting bodies.

Essential requirements

There are no essential or unique resources required for the delivery of this unit.

Employer engagement and vocational contexts

Centres should develop links with local businesses. Many businesses and chambers of commerce want to promote local business and are often willing to provide work placements, visit opportunities, information about businesses and the local business context and guest speakers.

www.businessbritainuk.co.uk

provides information about business in Britain and has

extensive links to other business and business news sites.

www.fsb.org.uk

The Federation of Small Businesses provides information,

support and guidance about small businesses in the UK.

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 UNIT 12: TAXATION

Unit 12:

Taxation

Unit code:

Y/601/0904

QCF level:

5

Credit value:

15 credits

Aim

This unit aims to give learners an understanding of the taxation of individuals and limited companies in the United Kingdom.

Unit abstract

Learners will understand the need for taxation and may already be familiar with the calculation and collection of income tax through the Pay as You Earn system applied to employees.

The unit introduces learners to the UK tax environment and explores the administration and collection of taxation in the UK and the duties of the tax practitioner.

The unit gives learners the skills needed to understand and compute the calculation of income tax for both individuals and businesses Learners will then consider the liability for and computation of corporation tax and capital gains tax.

Learning outcomes

On successful completion of this unit a learner will:

1 Understand the duties and responsibilities of the tax practitioner in the UK tax environment

2 Be able to calculate personal tax liabilities for individuals and partnerships

3Be able to calculate corporation tax liabilities for companies

4Be able to calculate capital gains tax payable for individuals and businesses.

UNIT 12: TAXATION

Unit content

1Understand the duties and responsibilities of the tax practitioner in the UK tax environment

UK tax environment: purpose and types of taxation (income tax, corporation tax, capital gains tax and inheritance); different methods of collection; tax legislation

Tax practitioner: dealing with the Inland Revenue; advising clients; calculating liabilities; implications for non-payment; respecting confidentiality and seeking advice when needed

2Be able to calculate personal tax liabilities for individuals and partnerships

Sources of income: income from employment including benefits in kind; income from self- employment eg sole trader or partnership; income from investments

Tax computations: relevant and allowable expenses; charges on income; payments to charities; tax free allowances; tax rates and payment dates

Tax of the self-employed: bases of assessment; adjustment of profits and losses eg disallowed expenditure; tax losses; capital expenditure and allowances

Documentation: tax returns, P60, P45 and P11D

3Be able to calculate corporation tax liabilities for companies

Bases of assessment: scope of corporation tax; accounting periods; chargeable profits; due dates

Computation: adjusted profits; treatment of losses; corporation tax rates; capital expenditure and allowances; treatment of income tax deductions

4Be able to calculate capital gains tax payable for individuals and businesses

Incidence and administration of capital gains tax: chargeable persons; assets and disposals; payment dates

Computation: layout of computation; allowable expenditure; indexation allowance and taper relief; dealing with losses; allowances; rates/assets/disposals

UNIT 12: TAXATION

Learning outcomes and assessment criteria

Learning outcomes

Assessment criteria for pass

On successful completion of

The learner can:

this unit a learner will:

LO1 Understand the duties and

1.1

describe the UK tax environment

responsibilities of the tax

1.2

analyse the role and responsibilities of the tax

practitioner in the UK tax

practitioner

environment

1.3

explain the tax obligations of tax payers or their agents

and the implications of non-compliance

LO2 Be able to calculate personal

2.1

calculate relevant income, expenses and allowances

tax liabilities for individuals

2.2

calculate taxable amounts and tax payable for employed

and partnerships

and self employed individuals and payment dates

2.3

complete relevant documentation and tax returns

LO3 Be able to calculate

3.1

calculate chargeable profits

corporation tax liabilities for

3.2

calculate tax liabilities and due payment dates

companies

3.3

explain how income tax deductions are dealt with

LO4 Be able to calculate capital

4.1

identify chargeable assets

gains tax payable for

4.2

calculate capital gains and losses

individuals and businesses

4.3

calculate capital gains tax payable.

UNIT 12: TAXATION

Guidance

Links

This unit links to the other accounting units Unit 9: Management Accounting: Costing and Budgeting, Unit 10: Financial Accounting and Reporting, and Unit 11: Financial Systems and Auditing and also core Unit 2: Managing Financial Resources and Decisions

This unit also has links to the Accounting NOS as mapped in Annexe B.

Essential requirements

There are no essential or unique resources required for the delivery of this unit.

UNIT 13: PERSONAL AND PROFESSIONAL DEVELOPMENT

Unit 13:

Personal and Professional

Development

Unit code:

T/601/0943

QCF level:

5

Credit value:

15 credits

Aim

This unit aims to help the learner become an effective and confident self-directed employee. This helps the learner become confident in managing own personal and professional skills to achieve personal and career goals.

Unit abstract

This unit is designed to enable learners to assess and develop a range of professional and personal skills in order to promote future personal and career development. It also aims to develop learners’ ability to organise, manage and practise a range of approaches to improve their performance as self-directed learners in preparation for work or further career development.

The unit emphasises the needs of the individual but within the context of how the development ofself-management corresponds with effective team management in meeting objectives.

Learners will be able to improve their own learning, be involved in teamwork and be more capable of problem solving through the use of case studies, role play and real-lifeactivities.

Learning outcomes

On successful completion of this unit a learner will:

1Understand how self-managed learning can enhance lifelong development

2Be able to take responsibility for own personal and professional development

3Be able to implement and continually review own personal and professional development plan

4Be able to demonstrate acquired interpersonal and transferable skills.

UNIT 13: PERSONAL AND PROFESSIONAL DEVELOPMENT

Unit content

1Understand how self-managed learning can enhance lifelong development

Self-managed learning: self-initiation of learning processes; clear goal setting, eg aims and requirements, personal orientation achievement goals, dates for achievement, self-reflection

Learning styles: personal preferences; activist; pragmatist; theorist; reflector, eg reflexive modernisation theory; Kolb’s learning cycle

Approaches: learning through research; learning from others, eg mentoring/coaching, seminars, conferences, secondments, interviews, use of the internet, social networks, use of bulletin boards, news groups

Effective learning: skills of personal assessment; planning, organisation and evaluation

Lifelong learning: self-directed learning; continuing professional development; linking higher education with industry, further education, Recognition of Prior Learning, Apprenticeships, Credit Accumulation and Transfer Schemes

Assessment of learning: improved ability range with personal learning; evidence of improved levels of skill; feedback from others; learning achievements and disappointments

2Be able to take responsibility for own personal and professional development

Self-appraisal: skills audit (personal profile using appropriate self-assessment tools); evaluating self-management; personal and interpersonal skills; leadership skills

Development plan: current performance; future needs; opportunities and threats to career progression; aims and objectives; achievement dates; review dates; learning programme/activities; action plans; personal development plan

Portfolio building: developing and maintaining a personal portfolio

Transcripts: maintaining and presenting transcripts including curriculum vitae

3Be able to implement and continually review own personal and professional development plan

Learning styles and strategies: types of styles; awareness of own personal style; impact of personal style and interactions with others

Learning from others: formal learning and training; observation; mentoring; supervision; tutorials; informal networks; team members; line managers; other professionals

Evaluation of progress: setting and recording of aims and objectives; setting targets; responding to feedback; re-setting aims and targets; establishing and recognising strengths and weaknesses; directions for change; cycles of activity (monitoring, reflecting and planning)

UNIT 13: PERSONAL AND PROFESSIONAL DEVELOPMENT

4Be able to demonstrate acquired interpersonal and transferable skills

Transferable skills: personal effectiveness (ability to communicate effectively at all levels, initiative, self-discipline, reliability, creativity, problem solving)

Verbal and non-verbal communication: effective listening, respect for others’ opinions; negotiation; persuasion; presentation skills; assertiveness; use of ICT

Delivery formats: ability to deliver transferable skills using a variety of formats

Working with others: team player; flexibility/adaptability; social skills

Time management: prioritising workloads; setting work objectives; using time effectively; making and keeping appointments; reliable estimates of task time

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Learning outcomes and assessment criteria

Learning outcomes

Assessment criteria for pass

On successful completion of

The learner can:

this unit a learner will:

LO1 Understand how self-

1.1

evaluate approaches to self-managed learning

managed learning can

1.2

propose ways in which lifelong learning in personal and

enhance lifelong

professional contexts could be encouraged

development

1.3

evaluate the benefits of self-managed learning to the

individual and organisation

LO2 Be able to take responsibility

2.1

evaluate own current skills and competencies against

for own personal and

professional standards and organisational objectives

professional development

2.2

identify own development needs and the activities

required to meet them

2.3

identify development opportunities to meet current and

future defined needs

2.4

devise a personal and professional development plan

based on identified needs

LO3 Be able to implement and

3.1

discuss the processes and activities required to

continually review own

implement the development plan

personal and professional

3.2

undertake and document development activities as

development plan

planned

3.3

reflect critically on own learning against original aims

and objectives set in the development plan

3.4

update the development plan based on feedback and

evaluation

LO4 Be able to demonstrate

4.1

select solutions to work-based problems

acquired interpersonal and

4.2

communicate in a variety of styles and appropriate

transferable skills

manner at various levels

4.3

evaluate and use effective time management strategies.

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UNIT 13: PERSONAL AND PROFESSIONAL DEVELOPMENT

Guidance

Links

The unit links with Unit 47: Employability Skills.

This unit also links to the Management and Leadership NOS as mapped in Annexe B.

Essential requirements

Activities carried out in this unit could be part of the mainstream academic activity and could be integrated into the whole programme of study. Learners would benefit from links with the learning outcomes of other units and if review meetings are held regularly.

A personal development portfolio or progress file should be put together, which contains all information and personal records ‘owned’ by the learner, including planning and monitoring progress towards the achievement of personal objectives. This could be web based, paper based or another format. Potentially this could form the basis of an extended record of a lifelong record of learning and achievement.

Tutors should be aware that textbooks are updated frequently and that they should use the latest editions where available. This is a practical unit and textbook materials should be used for reference purposes.

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UNIT 14: WORKING WITH AND LEADING PEOPLE

Unit 14:

Working with and Leading People

Unit code:

M/601/0908

QCF level:

5

Credit value:

15 credits

Aim

The aim of this unit is to develop the skills and knowledge needed for working with and leading others, through understanding the importance of recruiting the right people for the job.

Unit abstract

An organisation’s success depends very much on the people working in it, and recruiting the right people is a key factor. Organisations with effective recruitment and selection processes and practices in place are more likely to make successful staffing appointments. In competitive labour markets this is a major advantage that well-organised businesses will have over their competitors. It is important, therefore, for learners to appreciate that the processes and procedures involved in recruitment and selection to meet the organisation’s human resource needs are legal. This unit aims to develop learner knowledge and understanding of the impact of the regulatory framework on the recruitment process.

There are many benefits for both the individual and the organisation of working in teams for both the individual and the organisation, most importantly that the task is carried out better and more efficiently. An understanding of team development and the leadership function is crucial when working with others. A motivated workforce is more likely to be efficient and can contribute to thelong-term profitability of the business. In this unit learners will examine these key areas and appreciate how an effective team leader can motivate and develop individuals within teams.

Sometimes when people work in teams they have their own types of communication, which can affect others and cause conflict or tension. In this unit learners will have the opportunity to develop their own leadership skills as well as building on the skills and knowledge needed to manage and lead people and teams in an organisation. Learners will explore ways to manage teams and individuals as well as motivating staff to perform better whilst meeting the aims of the organisation.

Learning outcomes

On successful completion of this unit a learner will:

1 Be able to use recruitment, selection and retention procedures 2 Understand the styles and impact of leadership

3Be able to work effectively in a team

4Be able to assess the work and development needs of individuals.

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Unit content

1Be able to use recruitment, selection and retention procedures

Legislation and requirements relating to recruitment and selection: internal and external recruitment processes; selection processes including job descriptions, person specifications, interviewing, use of CVs, assessment centres; diversity issues, including legal requirements and obligations and business and ethical cases regarding diversity; legislation and requirements relating to employment, workers’ welfare and rights, health and safety, retention, succession planning

2Understand the styles and impact of leadership

Theories, models and styles of leadership and their application to different situations: impact of leadership styles; theories and practices of motivation eg Maslow, McGregor, Herzberg; influencing and persuading others; influence of cultural environment within the organisation; differences between leadership and management; leadership power and control eg French and Raven; delegation; emotional intelligence eg Higgs and Dulewicz

3Be able to work effectively in a team

Teamworking and development: flexible working practices; team formation eg Tuckman, structures and interactions eg Belbin’s Team Role Theory, Adair’s Action Centred Leadership model; benefits of team working; politics of working relationships; diversity issues; working cultures and practices; promotion of anti-discriminatory practices and behaviours; team building processes; conflict resolution; delegation and empowerment; coaching, support, mentoring; training, supervision, monitoring and evaluation

4Be able to assess the work and development needs of individuals

Identifying development needs: learning styles and processes; supporting individual learning and encouraging lifelong learning; planning, recording, monitoring and evaluating; group development processes and behaviour

Planning, work orientation and job design: application of motivation theories and empowerment techniques; communication styles and techniques; delegation techniques and processes; supervision styles, working culture and practices, regulations and codes of practice, diversity issues

Performance monitoring and assessment: measuring effective performance; providing feedback; appraisal processes; benchmarking performance processes; mentoring and counselling; methods of correcting under-performance; legislation, codes of practice and procedures relating to disciplinary situations; diversity issues; management principles; promotions of anti-discriminatory practices and behaviours

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UNIT 14: WORKING WITH AND LEADING PEOPLE

Learning outcomes and assessment criteria

Learning outcomes

Assessment criteria for pass

On successful completion of

The learner can:

this unit a learner will:

LO1 Be able to use recruitment,

1.1

prepare documentation to select and recruit a new

selection and retention

member of staff

procedures

1.2

assess the impact of legal, regulatory and ethical

considerations to the recruitment and selection process

1.3

take part in the selection process

1.4

evaluate own contribution to the selection process

LO2 Understand the styles and

2.1

explain the skills and attributes needed for leadership

impact of leadership

2.2

explain the difference between leadership and

management

2.3

compare leadership styles for different situations

2.4

explain ways to motivate staff to achieve objectives

LO3 Be able to work effectively in

3.1

assess the benefits of teamworking for an organisation

a team

3.2

demonstrate working in a team as a leader and member

towards specific goals, dealing with any conflict or

difficult situations

3.3

review the effectiveness of the team in achieving the

goals

LO4 Be able to assess the work

4.1

explain the factors involved in planning the monitoring

and development needs of

and assessment of work performance

individuals

4.2

plan and deliver the assessment of the development

needs of individuals

4.3

evaluate the success of the assessment process.

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Guidance

Links

The unit links with the management and human resources units in this specification.

This unit also links to the Management and Leadership NOS as mapped in Annexe B.

Essential requirements

There are no essential or unique resources required for the delivery of this unit.

Employer engagement and vocational contexts

Centres should develop links with local businesses. Many businesses and chambers of commerce want to promote local business and are often willing to provide work placements, visit opportunities, information about businesses and the local business context and visiting speakers. For this unit it would be useful for learners to investigate the recruitment and selection processes in different organisations, as well as the functions and performance of different types of team.

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UNIT 15: MANAGING BUSINESS ACTIVITIES TO ACHIEVE RESULTS

Unit 15:

Managing Business Activities to

Achieve Results

Unit code:

J/601/0946

QCF level:

4

Credit value:

15 credits

Aim

The aim of this unit is to provide learners with the understanding and skills to manage their activities in the business workplace to improve their effectiveness and efficiency.

Unit abstract

This unit focuses on the effective and efficient planning and management of business work activities. It gives learners with understanding and skills needed to design and implement operational systems to improve their effectiveness and efficiency and achieve the desired results for the business.

Learners are encouraged to consider the importance and interrelationship of business processes and the implementation of operational plans, together with quality systems and health and safety, in achieving satisfactory results.

Learning outcomes

On successful completion of this unit a learner will:

1Understand the importance of business processes in delivering outcomes based upon business goals and objectives

2 Be able to develop plans for own area of responsibility to implement operational plans 3 Be able to monitor appropriate systems to improve organisational performance

4Be able to manage health and safety in the workplace.

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UNIT 15: MANAGING BUSINESS ACTIVITIES TO ACHIEVE RESULTS

Unit content

1Understand the importance of business processes in delivering outcomes based upon business goals and objectives

Functions: interrelationships of functions, mission, aims, objectives and culture; interrelationship with processes

Processes: principles and models of effective process management; types of business process measures, output; quality gateways; how to evaluate suitability

2Be able to develop plans for own area of responsibility to implement operational plans

Areas of responsibility: internal and external customers; customer orientation; market research; product development, principles and methods of short- to medium-term planning; designing plans; PERT; critical path analysis; work flow, prioritising workloads; how to develop SMART objectives; time management; how to analyse and manage risk; how to align resources with objectives; legal, regulatory and ethical requirements

Operational plans: product and service specifications and standards; meeting quality, quantity, time and cost objectives; systems eg Just-in-Time; value-added chains; statistical process control; coordinating activities; working within organisational constraints and limitations

3Be able to monitor appropriate systems to improve organisational performance

Systems: Total Quality Management (TQM), TQM philosophy, principles, methods and techniques; quality systems, quality circles, ISO9000/EN29000 or subsequent current amendments, managing and monitoring quality

Organisational performance: principles of models which underpin organisational performance; types of performance measures and how to determine and set them; cost/benefit analysis; risk analysis; the value of a customer-focused culture; the importance of prevention rather than correction; importance of developing a continual improvement culture and how to involve others; planning, proposing, implementing and evaluating change; identifying wider implications of change within the organisation; Business Process Re- engineering (BPR)

4Be able to manage health and safety in the workplace

Health and safety: legislation and regulations relating to health and safety at work; organisational policies and procedures regarding health and safety; risk assessment and monitoring; practical application of regulations; public attitudes and concerns relating to health and safety

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UNIT 15: MANAGING BUSINESS ACTIVITIES TO ACHIEVE RESULTS

Learning outcomes and assessment criteria

Learning outcomes

Assessment criteria for pass

On successful completion of

The learner can:

this unit a learner will:

LO1 Understand the importance

1.1

evaluate the interrelationship between the different

of business processes in

processes and functions of the organisation

delivering outcomes based

1.2

justify the methodology to be used to map processes to

upon business goals and

the organisation’s goals and objectives

objectives

1.3

evaluate the output of the process and the quality

gateways

LO2 Be able to develop plans for

2.1

design plans which promote goals and objectives for

own area of responsibility to

own area of responsibility

implement operational plans

2.2

write objectives, which are specific, measurable,

achievable, realistic and time-based to align people and

other resources in an effective and efficient way

2.3

implement appropriate systems to achieve objectives in

the most efficient way, on time, to budget and meeting

organisational standards of quality

2.4

carry out work activities meeting the operational plan

through effective monitoring and control

LO3 Be able to monitor

3.1

design systems to manage and monitor quality

appropriate systems to

standards specified by the organisation

improve organisational

3.2

demonstrate a quality culture to ensure continuous

performance

monitoring, evaluation and development of the process

3.3

recommend improvements which align with the

organisation’s objectives and goals and which result in

improvements

3.4

report on the wider implications of proposed changes

within the organisation

LO4 Be able to manage health

4.1

carry out risk assessments as required by legislation,

and safety in the workplace

regulation and organisational requirements ensuring

appropriate action is taken

4.2

demonstrate that health and safety regulations and

legislation applicable in specific work situations are

correctly and effectively applied

4.3

carry out a systematic review of organisational health

and safety policies and procedures in order to ensure

they are effective and compliant

4.4

carry out practical application of health and safety

policies and procedures in the workplace.

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Guidance

Links

This unit links with all other management units within this specification.

This unit also links to the Management and Leadership NOS as mapped in Annexe B.

Essential requirements

Tutors must build a bank of resource materials to ensure there is a sufficient supply of relevant information across a range of activities and processes.

Employer engagement and vocational contexts

Learners can generate evidence from a work placement or work experience. Some learners may have access to information from family owned and run businesses.

Centres should develop links with local businesses. Many businesses and chambers of commerce want to promote local business and are often willing to provide work placements, visit opportunities, information about businesses and the local business context and guest speakers.

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UNIT 16: MANAGING COMMUNICATIONS, KNOWLEDGE AND INFORMATION

Unit 16:

Managing Communications,

Knowledge and Information

Unit code:

L/601/0950

QCF level:

4

Credit value:

15 credits

Aim

The aim of this unit is to show how communications, knowledge and information can be improved within an organisation including making better use of IT systems.

Unit abstract

This unit recognises that communications do not automatically take place effectively in organisations and that both information and work-based knowledge is often insufficient when decisions are made. Learners will look at how managers can improve the planning of their communications processes as well as their communication skills. Learners will understand why managers need to adopt a more inclusive approach to stakeholders affected by the decisions they make and why they need to network on a more structured basis. The unit also looks at how managers can make the information and knowledge they gain accessible to other parts of the organisation.

The unit is designed to develop learner understanding of the interaction between communications, knowledge and information. It also covers how IT systems can be used as a management tool for collecting, storing, disseminating and providing access to knowledge and information.

Learning outcomes

On successful completion of this unit a learner will:

1Understand how to assess information and knowledge needs

2Be able to create strategies to increase personal networking to widen involvement in thedecision-making process

3Be able to develop communication processes

4Be able to improve systems relating to information and knowledge.

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UNIT 16: MANAGING COMMUNICATIONS, KNOWLEDGE AND INFORMATION

Unit content

1Understand how to assess information and knowledge needs

Sources: internal and external, primary and secondary, formal and informal, team workers, customers and other stakeholders

Types: qualitative and quantitative, tacit and explicit, official and unofficial, policy and opinion

2Be able to create strategies to increase personal networking to widen involvement in the decision-making process

Sources: stakeholders and useful contacts, internal and external

Methods: formal, informal

Strategies: formal and informal, direct or via media, relating and interacting, trust and confidentiality, forming business relationships, decision making and decision taking

3Be able to develop communication processes

Types: meetings and conferences, workshops and training events, internet and email, written, telephone, video conferencing, one-to-one meetings

Approaches: structured and coordinated, planned, formal and informal

Strategy: advantages, disadvantages; informal, face-to-face, formal in writing, emotional, intelligence

4Be able to improve systems relating to information and knowledge

Type: hard and soft, websites and mailings, access and dissemination

Style: trends and patterns, diagrams and text, consistent and reliable, current and valid; legal and confidential

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UNIT 16: MANAGING COMMUNICATIONS, KNOWLEDGE AND INFORMATION

Learning outcomes and assessment criteria

Learning outcomes

Assessment criteria for pass

On successful completion of

The learner can:

this unit a learner will:

LO1 Understand how to assess

1.1

discuss the range of decisions to be taken

information and knowledge

1.2

examine the information and knowledge needed to

needs

ensure effective decision taking

1.3

assess internal and external sources of information and

understanding

1.4

justify recommendations for improvement

LO2 Be able to create strategies

2.1

identify stakeholders for a decision-making process

to increase personal

2.2

make contact with those identified and develop

networking to widen

business relationships

involvement in the decision-

making process

2.3

involve those identified in the decision making as

appropriate

2.4

design strategies for improvement

LO3 Be able to develop

3.1

report on existing processes of communication in an

communication processes

organisation

3.2

design ways to improve appropriateness

3.3

implement improvements to ensure greater integration

of systems of communication in that organisation

3.4

create a personal plan to improve own communication

skills

LO4 Be able to improve systems

4.1

report on existing approaches to the collection,

relating to information and

formatting, storage and dissemination of information

knowledge

and knowledge

4.2

carry out appropriate changes to improve the collection,

formatting, storage and dissemination of information

and knowledge

4.3

implement a strategy to improve access to systems of

information and knowledge.

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Guidance

Links

This unit links with all other management units within this specification.

This unit also links with the Management and Leadership NOS. See Annexe B for a mapping.

Essential requirements

There are no essential or unique resources required for the delivery of this unit.

Employer engagement and vocational contexts

Centres should develop links with local businesses. Many businesses and chambers of commerce want to promote local business and are often willing to provide work placements, visit opportunities, information about businesses and the local business context and guest speakers.

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UNIT 17: MARKETING INTELLIGENCE

Unit 17:

Marketing Intelligence

Unit code:

K/601/0955

QCF level:

4

Credit value:

15 credits

Aim

The aim of this unit is to enable learners to understand the purchase decision-making process and how marketing research techniques are used to contribute to the development of marketing plans.

Unit abstract

This unit explores buyer behaviour and how this is influenced by a range of factors and situations. Learners will explore the marketing research process and assess the importance of different types of information. The approach is practical and learners will learn how to prepare and present a research proposal, assess the reliability of market research findings, and use secondary sources of data.

Learners will then develop the skills needed to assess trends and carry out competitor analysis.

Finally, learners will consider customer relationship management and how to assess levels of customer satisfaction.

The unit seeks to combine a sound theoretical framework with the development of useful business skills.

Learning outcomes

On successful completion of this unit a learner will:

1 Understand buyer behaviour and the purchase decision-making process

2Be able to use marketing research techniques

3 Be able to assess market size and future demand

4Be able to measure customer satisfaction.

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UNIT 17: MARKETING INTELLIGENCE

Unit content

1Understand buyer behaviour and the purchase decision-making process

Customers and markets: purchase decision-making process; buying situations and types of buying decision; dimensions of buyer behaviour

Buyer behaviour: influences on buyer behaviour; stimulus response model; models of purchase behaviour; diffusion and innovation; model unitary and decision-making units

Buying motives: psychological factors, socio-psychological factors, sociological factors, economic factors and cultural factors influencing customer behaviour; lifestyle and life-cyclefactors; customer and prospect profiling

Branding: relationship between brand loyalty, company image and repeat purchase

2Be able to use marketing research techniques

Market research: role and importance of marketing research; research process, objectives; issues relating to the use of primary and secondary data sources and methods; existing sources of primary and secondary market research; internal sources; external sources; competitor data and sources and customer data; ethics

Market research companies: benefits and limitations of use; cost; reliability and types

Research techniques: stages of the market research process; research proposals; qualitative and quantitative methods; surveys; sources of information; value and interpretation of data

Types: face to face, telephone/postal; data mining technique; focus groups; depth interviews; omnibus survey; psychological research; mystery shopper; sales, price and distribution research

Reliability of research: validity; sampling process; sample size; sample and interviewer bias; methods of recruitment

Researching developing and established markets: issues associated with researching the developing as well as the established consumer; industrial and service markets

Use of research data: research data supporting marketing planning; producing actionable recommendations; evaluating research findings for business decision making

3Be able to assess market size and future demand

Measuring: defining the market; estimating total market size, value and volume; growth and trends; forecasting future demand

Competitive analysis: competitor analysis – market/product profiles of competition, brand and market share; characteristics of the competition – market innovator/follower; objectives of the competition; strategies of the competition; strengths and weakness of competition; future behaviour of the competition and their strategic intent

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UNIT 17: MARKETING INTELLIGENCE

4Be able to measure customer satisfaction

Measuring customer satisfaction: post-sale surveys; data mining – web behaviour analysis; guarantees; complaint handling and suggestion systems; mystery shopping; product placement; service agreements; customer follow-up

Customer care: customer relationship management programmes, objectives, use and value in data collection, customer relationship management as a means of adding value and influencing purchase/repeat purchase behaviour, customer retention

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UNIT 17: MARKETING INTELLIGENCE

Learning outcomes and assessment criteria

Learning outcomes

Assessment criteria for pass

On successful completion of

The learner can:

this unit a learner will:

LO1 Understand buyer behaviour

1.1

describe the main stages of the purchase decision-

and the purchase decision-

making process

making process

1.2

explain theories of buyer behaviour in terms of

individuals and markets

1.3

explain the factors that affect buyer behaviour

1.4

evaluate the relationship between brand loyalty,

corporate image and repeat purchasing

LO2 Be able to use marketing

2.1

evaluate different types of market research techniques

research techniques

2.2

use sources of secondary data to achieve marketing

research objectives

2.3

assess the validity and reliability of market research

findings

2.4

prepare a marketing research plan to obtain information

in a given situation

LO3 Be able to assess market

3.1

assess market size trends within a given market

size and future demand

3.2

plan and carry out a competitor analysis for a given

organisation

3.3

evaluate an organisation’s opportunities and threats for

a given product or service

LO4 Be able to measure

4.1

evaluate techniques of assessing customer response

customer satisfaction

4.2

design and complete a customer satisfaction survey

4.3

review the success of a completed survey.

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BH023329 – Edexcel BTEC Levels 4 and 5 Higher Nationals specification in Business

– Issue 1 – April 2010 © Edexcel Limited 2010

UNIT 17: MARKETING INTELLIGENCE

Guidance

Links

This unit is part of the marketing pathway and forms a direct link with the other marketing units in the pathway – Unit 18: Advertising and Promotion in Business, Unit 19: Marketing Planning andUnit 20: Sales Planning and Operations.

The unit is also linked with Unit 4: Marketing Principles and Unit 6: Business Decision Making.

Essential requirements

Learners need access to market research and business information.

Employer engagement and vocational contexts

Centres should develop links with local businesses. Many businesses and chambers of commerce want to promote local business and are often willing to provide work placements, visit opportunities, information about businesses and the local business context and guest speakers, or assistance with case study material that could be used as a basis for the assignments for this unit.

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BH023329 – Edexcel BTEC Levels 4 and 5 Higher Nationals specification in Business

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UNIT 18: ADVERTISING AND PROMOTION IN BUSINESS

Unit 18:

Advertising and Promotion in

Business

Unit code:

J/601/1000

QCF level:

4

Credit value:

15 credits

Aim

The aim of this unit is to provide learners with the understanding and skills for using advertising, promotion and marketing communications effectively. Learners will put this into practice by planning an integrated promotional strategy.

Unit abstract

The effective use of advertising and promotion is a fundamental requirement for any business seeking to succeed in the modern business world. As they progress through the unit, learners will build up their understanding of advertising and promotion, which they can use to plan an integrated promotional strategy for a business or product.

The unit introduces learners to the wide scope of marketing communications and how the communications process operates. It includes a study of current trends and the impact that ICT has had on marketing communications. Learners will explore the marketing communications industry and how it operates. They will also develop some knowledge of how the industry is regulated to protect consumers.

Advertising and the use of below-the-line techniques are core components in the development of an integrated communications strategy. This unit covers both in detail. Learners will be introduced to the theory, as well as the practice, that is fundamental to understanding advertising andbelow-the-line techniques and how they can be used to their greatest effect.

On completion of this unit learners will be able to plan an integrated promotional strategy for a business or product. This will include budget formulation, creative and media selection, and how to measure the effectiveness of their plan.

Learning outcomes

On successful completion of this unit a learner will:

1 Understand the scope of marketing communications

2Understand the role and importance of advertising

3 Understand below-the-line techniques and how they are used

4Be able to plan integrated promotional strategies.

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UNIT 18: ADVERTISING AND PROMOTION IN BUSINESS

Unit content

1Understand the scope of marketing communications

Communication process: nature and components of marketing communications; models of communication; selection and implementation process; consumer buying decision-makingprocess; influences on consumer behaviour: internal (demographics, psychographics, lifestyle, attitude, beliefs), external (cultural, social, environmental factors); response hierarchy/hierarchy of effects models; integration of marketing communications

Organisation of the industry: structure and roles of marketing communications agencies; (advertising agencies, marketing agencies, creative agencies, media planning and buying agencies); media owners; advertisers; triangle of dependence; types of agency (full service, à la carte, specialist agencies, media independents, hot shops and boutiques, media sales houses); other supporting services (public relations (PR), sales promotion, marketing research)

Regulation of promotion: Consumer Protection From Unfair Trading Regulations, Sale of Goods Act, Supply of Goods and Services Act, Distance Selling Regulations, Consumer Credit Act, Data Protection Act; statutory authorities (Trading Standards, Ofcom, the Office of Communications); self-regulation (Advertising Standards Authority (ASA), Committee of Advertising Practice (CAP)); ethics, consumerism and public opinion as a constraint

Current trends: media fragmentation and the decline the power of traditional media;ambient/out-of-home media eg product and brand placement, posters, stickers, car park tickets, till receipts, petrol pumps; new media eg, texts, use of mobile phone, web-basedmedia, pop-ups; brand proliferation; niche marketing/micro-marketing; media inflation; maximising media spend; increased sophistication and use of marketing research; responding to globalisation (global marketing, global brands, global media); ethical marketing eg fair trade, cause-related marketing; e-commerce; viral marketing; use of social networking websites; search engine optimisation; web optimisation

The impact of ICT: role of ICT, internet and on channels of communication; global media reach; cyber consumers; online shopping (interdependence, disintermediation, reintermediation); the use of customer relationship management (CRM); online security issues

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UNIT 18: ADVERTISING AND PROMOTION IN BUSINESS

2Understand the role and importance of advertising

Role of advertising: definition, purpose and objectives of advertising; functions of advertising (remind, inform, persuade, sell); advantages and disadvantages of advertising; advertising process; role of advertising within marketing mix, within promotional mix; characteristics of advertising media (print, audio, moving image, ambient, new media)

Branding: definition, purpose, objectives, benefits and dimensions of branding; brand strategies (individual, blanket, family, multi-branding, brand extension, own brands, brand repositioning); brand image, personality and equity; brand value, brand evaluation techniques

Creative aspects of advertising: communication brief (positioning, targeting, messages,message-appeals); creative brief (advertisement design, visuals, copy writing, creative strategies and tactics testing); impact of ICT on advertisement design and dissemination; measuring advertising effectiveness; key media planning concepts (reach, duplication, frequency, flighting); principles in measuring media effectiveness (distribution, ratings, audience share, awareness, cost per thousand)

Working with advertising agencies: agency structures; role of account handler and account planner; process and methods of agency selection; agency appointment including contracts and good practice guidelines; agency/client relationships; remuneration (commission, fee, results), media planning; key account management and the stages in developing key account relationships

3Understand below-the-line techniques and how they are used

Primary techniques: sales promotion; public relations; loyalty schemes; sponsorship; product placement; direct marketing; packaging; merchandising; for each of the techniques detailed (consideration of role, characteristics, objectives, advantages/disadvantages, appropriate uses, evaluation measures)

Other techniques: an overview of the role and uses of corporate communications; image and identity; exhibitions; word-of-mouth; personal selling; use of new media

4Be able to plan integrated promotional strategies

Budget formulation: budget determination process; methods (percentage of sales, per unit,cost-benefit analysis, competitive parity, task, customer expectation, executive judgement); guidelines for budget allocation; overview of media costs; relative costs of various promotional techniques; comparing low and high-budget campaigns; new product considerations

Developing a promotional plan: situation analysis; objectives; communication goals, target audiences; creative strategy; promotional strategy and tactics; media selection; inter andintra-media decisions; scheduling; burst versus drip; budget allocation; evaluation measures; planning tools (AIDA, DAGMAR, SOSTT + 4Ms, SOSTAC, planning software)

Integration of promotional techniques: benefits; methods; role of positioning; positioning strategies; push and pull strategies; importance of PR; corporate identity and packaging in aiding integration; barriers to integration (company and agency organisational structures; cost); methods of overcoming these barriers; levels of integration; award-winning campaigns

Measuring campaign effectiveness: comparison with objectives; customer response; recall; attitude surveys; sales levels; repeat purchases; loyalty; cost effectiveness; degree of integration; creativity; quantitative and qualitative measures

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UNIT 18: ADVERTISING AND PROMOTION IN BUSINESS

Learning outcomes and assessment criteria

Learning outcomes

Assessment criteria for pass

On successful completion of

The learner can:

this unit a learner will:

LO1 Understand the scope of

1.1

explain the communication process that applies to

marketing communications

advertising and promotion

1.2

explain the organisation of the advertising and

promotions industry

1.3

assess how promotion is regulated

1.4

examine current trends in advertising and promotion,

including the impact of ICT

LO2 Understand the role and

2.1

explain the role of advertising in an integrated

importance of advertising

promotional strategy for a business or product

2.2

explain branding and how it is used to strengthen a

business or product

2.3

review the creative aspects of advertising

2.4

examine ways of working with advertising agencies

LO3 Understand below-the-line

3.1

explain primary techniques of below-the-line promotion

techniques and how they are

and how they are used in an integrated promotional

used

strategy for a business or product

3.2

evaluate other techniques used in below-the-line

promotion

LO4 Be able to plan integrated

4.1

follow an appropriate process for the formulation of a

promotional strategies

budget for an integrated promotional strategy

4.2

carry out the development of a promotional plan for a

business or product

4.3

plan the integration of promotional techniques into the

promotional strategy for a business or product

4.4

use appropriate techniques for measuring campaign

effectiveness.

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BH023329 – Edexcel BTEC Levels 4 and 5 Higher Nationals specification in Business

– Issue 1 – April 2010 © Edexcel Limited 2010

UNIT 18: ADVERTISING AND PROMOTION IN BUSINESS

Guidance

Links

This unit links to other marketing units within the pathway – Unit 17: Marketing Intelligence,

Unit 19: Marketing Planning and Unit 20: Sales Planning and Operations.

The unit is also linked with Unit 4: Marketing Principles and Unit 6: Business Decision Making.

Essential requirements

Learners must have access to the internet in order to carry out research. They will also require access to a range of current advertising and promotional media – print, audio, moving image, ambient and new media. Tutors must build a bank of resource materials to ensure there is a sufficient supply of relevant information across a range of business types and sectors.

Employer engagement and vocational contexts

Learners can generate evidence from a work placement or work experience. Some learners may have access to information from family owned and run businesses.

Centres should develop links with local businesses such as – businesses that run advertising and promotional campaigns as part of their marketing strategy, and agencies that are involved with providing the creative and planning input for advertising and promotional campaigns. Many businesses and chambers of commerce want to promote local business and are often willing to provide work placements, visit opportunities, information about businesses and the local business context and guest speakers.

Local Business Link organisations are another good source for employer engagement as they are in contact with a range of different businesses in different industries.

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 UNIT 19: MARKETING PLANNING

Unit 19:

Marketing Planning

Unit code:

Y/601/1259

QCF level:

5

Credit value:

15 credits

Aim

The aim of this unit is to provide learners with the understanding and skills to develop marketing plans that meet marketing objectives, and meet the needs of the target market.

Unit abstract

Effective planning is essential for any marketing activity to ensure that an organisation realises its marketing objectives. Without planning, marketing activity can be inappropriate and waste resources and opportunities.

This unit introduces learners to different ways of auditing, to looking at how internal and external factors can influence marketing planning for an organisation, in order to build up a picture of the marketplace.

Learners will gain an understanding of the main barriers to marketing planning, the effects of barriers, and how these can be avoided or overcome.

Ethical issues in marketing are important in terms of how an organisation and its products are perceived by customers and employees, and can affect the overall ethos and ultimate success of the organisation. This unit will enable learners to investigate and examine how exemplar organisations have been affected by ethical issues, how they deal with them, and how ethical issues should be taken into account when developing marketing plans.

On completion of this unit learners will be able to produce a marketing plan for a product, a service or an organisation that is realistic, in terms of objectives and resources, and effective in terms of the current situation in the marketplace.

Learning outcomes

On successful completion of this unit a learner will:

1Be able to compile marketing audits

2Understand the main barriers to marketing planning

3 Be able to formulate a marketing plan for a product or service

4Understand ethical issues in marketing.

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UNIT 19: MARKETING PLANNING

Unit content

1Be able to compile marketing audits

Changing perspectives: changing perspectives in marketing planning; market-led strategic change

Assessment of capability: evaluate issues relating to aspects of competing for the future and balancing strategic intent and strategic reality

Organisational auditing: evaluating and coming to terms with organisational capability; balancing strategic intent and strategic reality; the determinants of capability eg managerial, financial, operational, human resource and intangible (brand) capability; approaches to leveraging capability; aspects of competitive advantage

External factors: approaches to analysing external factors that influence marketing planning; the identification and evaluation of key external forces using analytical tools eg PEST (Political, Economic, Social, Technological), PESTLE (Political, Economic, Social, Technological, Legal, Ethical), STEEPLE (Social, Technological, Economic, Environmental, Political, Legal, Ethical); the implications of different external factors for marketing planning; Porter’s five forces analysis; identifying the organisation’s competitive position and relating this to the principal opportunities and threats; market, product and brand lifecycles

2Understand the main barriers to marketing planning

Barriers: objective/strategy/tactics confusion; isolation of marketing function; organisational barriers (organisational culture, change management, ethical issues, behavioural, cognitive, systems and procedures, resources); competitor strategy and activity; customer expectation

3Be able to formulate a marketing plan for a product or service

The role of marketing planning in the strategic planning process: the relationship between corporate objectives, business objectives and marketing objectives at operational level; the planning gap and its impact on operational decisions

The strategic alternatives for new product development: an overview of the marketing planning process; SWOT analysis (Strengths, Weaknesses, Opportunities, Threats); objectives in differing markets, products and services; product modification through to innovation; evaluation of product and market match; use of Ansoff’s matrix; product failure rates and implications for screening ideas against company capabilities and the market; product testing; test marketing; organisational arrangements for managing new product development; costs and pricing; encouraging an entrepreneurial environment; the importance of learning from failure

Pricing policy: price taking versus price making; the dimensions of price; approaches to adding value; pricing techniques (price leadership, market skimming, market penetration pricing, competitive market-based pricing, cost-based versus market-oriented pricing); the significance of cash flow; the interrelationships between price and the other elements of the marketing mix; taking price out of the competitive equation

UNIT 19: MARKETING PLANNING

Distribution: distribution methods; transport methods; hub locations, break-bulk and distribution centres; choice of distribution to point-of-sale; distribution and competitive advantage

Communication mix: evaluation of promotional mix to influence purchasing behaviour; media planning and cost; advertising and promotional campaigns; changes to advertising and promotional campaigns over the product lifecycle (PLC); sales planning

Implementation: factors affecting the effective implementation of marketing plans; barriers to implementation and how to overcome them; timing; performance measures (financial, non- financial, quantitative, qualitative); determining marketing budgets for marketing mix decisions included in the marketing plan; methods of evaluating and controlling the marketing plan; how marketing plans and activities vary in organisations that operate in a virtual marketplace

4Understand ethical issues in marketing

Ethical issues in marketing: ethics and the development of the competitive stance; different perspectives on ethics in the global marketplace; ethical trade-offs; ethics and managerial cultures

Ethics of the marketing mix: management of the individual elements of the marketing mix

Product: gathering market research on products; identification of product problems and levels of customer communication; product safety and product recall

Price: price fixing; predatory pricing; use of loss leaders; deceptive pricing; price discrimination

Promotion: media message impact; sales promotion; personal selling; hidden persuaders; corporate sponsorship

Distribution: abuse of power eg restriction of supply; unreasonable conditions set by distributors

Counterfeiting: imitation (fakes, knock-offs); pirate and bootleg copies; prior registration and false use of trade names, brand names and domain names

Consumer ethics: false insurance claims; warranty deception; misredemption of vouchers; returns of merchandise; illegal downloads, copying and distribution (music, videos, film, software)

 

UNIT 19: MARKETING PLANNING

Learning outcomes and assessment criteria

Learning outcomes

Assessment criteria for pass

On successful completion of

The learner can:

this unit a learner will:

LO1 Be able to compile marketing

1.1

review changing perspectives in marketing planning

audits

1.2

evaluate an organisation’s capability for planning its

future marketing activity

1.3

examine techniques for organisational auditing and for

analysing external factors that affect marketing planning

1.4

carry out organisational auditing and analysis of external

factors that affect marketing planning in a given

situation

LO2 Understand the main

2.1

assess the main barriers to marketing planning

barriers to marketing

2.2

examine how organisations may overcome barriers to

planning

marketing planning

LO3 Be able to formulate a

3.1

write a marketing plan for a product or a service

marketing plan for a product

3.2

explain why marketing planning is essential in the

or service

strategic planning process for an organisation

3.3

examine techniques for new product development

3.4

justify recommendations for pricing policy, distribution

and communication mix

3.5

explain how factors affecting the effective

implementation of the marketing plan have been taken

into account

LO4 Understand ethical issues in

4.1

explain how ethical issues influence marketing planning

marketing

4.2

analyse examples of how organisations respond to

ethical issues

4.3

analyse examples of consumer ethics and the effect it

has on marketing planning.

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BH023329 – Edexcel BTEC Levels 4 and 5 Higher Nationals specification in Business

– Issue 1 – April 2010 © Edexcel Limited 2010

UNIT 19: MARKETING PLANNING

Guidance

Links

This unit links to other marketing units within the pathway – Unit 17: Marketing Intelligence,

Unit 18: Advertising and Promotion in Business and Unit 20: Sales Planning and Operations.

The unit is also linked with Unit 4: Marketing Principles and Unit 6: Business Decision Making.

Essential requirements

Learners must have access to the internet in order to carry out research. They will also require access to a range of case studies and exemplar material which illustrate the theories and practice covered in the learning outcomes.

Tutors must build a bank of resource materials to ensure there is a sufficient supply of relevant information across a range of business types and sectors.

Employer engagement and vocational contexts

Learners can generate evidence from a work placement or work experience. Some learners may have access to information from family owned and run businesses.

Centres should develop links with local businesses such as businesses that are involved in marketing planning as part of their overall strategy. Many businesses and chambers of commerce want to promote local business and are often willing to provide work placements, visit opportunities, information about businesses and the local business context and guest speakers. Local Business Link organisations are another good source for employer engagement as they are in contact with a range of different businesses in different industries.

 

UNIT 20: SALES PLANNING AND OPERATIONS

Unit 20:

Sales Planning and Operations

Unit code:

Y/601/1261

QCF level:

5

Credit value:

15 credits

Aim

The aim of this unit is to provide learners with an understanding of sales planning, sales management, and the selling process, which can be applied in different markets and environments.

Unit abstract

Selling is a key part of any successful business, and most people will find that they need to use sales skills at some point in their working life – if only to persuade or win an argument. For anyone who is interested in sales as a professional career it pays to understand the basics of selling, to practice, and plan. This unit will introduce learners to the theory of selling and sales planning, and give them the opportunity to put their personal selling skills into practice.

The unit starts with an overview of how personal selling fits within the overall marketing strategy for a business. Learners will be taken through the main stages of the selling process, and be expected to put them to use. Once they are confident about the selling process, learners will investigate the role and objectives of sales management. This is knowledge that can be applied to a wide range of organisations.

Finally, learners will be able to start planning sales activity for a product or service of their own choice – this is another valuable skill that is transferable to many different situations learners may find themselves in as they move into employment or higher education.

Learning outcomes

On successful completion of this unit a learner will:

  • 1 Understand the role of personal selling within the overall marketing strategy
  • 2 Be able to apply the principles of the selling process to a product or service
  • 3 Understand the role and objectives of sales management
  • 4Be able to plan sales activity for a product or service.

UNIT 20: SALES PLANNING AND OPERATIONS

1Understand the role of personal selling within the overall marketing strategy

Promotion mix: personal and impersonal communication; objectives of promotional activity;push-pull strategies; integrating sales with other promotional activities; evaluating promotion; allocation of promotion budget

Understanding buyer behaviour: consumer and organisational purchase decision-makingprocesses; influences on consumer purchase behaviour (personal, psychological, social); influences on organisational buyer behaviour (environmental, organisational, interpersonal, individual); purchase occasion; buying interests and motives; buyer moods; level of involvement; importance and structure of the DMU (Decision Making Unit); finding thedecision-taker; distinction between customers and users

Role of the sales team: definition and role of personal selling; types of selling; characteristics for personal selling; product and competitor knowledge; sales team responsibilities (information gathering, customer and competitor intelligence, building customer databases, prospecting and pioneering, stock allocation, maintaining and updating sales reports and records, liaison with sales office); sales team communications; the role of ICT in improving sales team communications

2Be able to apply the principles of the selling process to a product or service

Principles: customer-oriented approach; objective setting; preparation and rehearsal; opening remarks; techniques and personal presentation; need for identification and stimulation; presentation; product demonstration and use of visual aids; handling and pre- empting objections; techniques and proposals for negotiation; buying signals; closing techniques; post sale follow-up; record keeping; customer relationship marketing (CRM)

UNIT 20: SALES PLANNING AND OPERATIONS

3Understand the role and objectives of sales management

Sales strategy: setting sales objectives; relationship of sales, marketing and corporate objectives; importance of selling in the marketing plan; use of marketing information for planning and decision making (sources and collection methods); role of sales forecasts in planning; quantitative and qualitative sales forecasting techniques; strategies for selling

Recruitment and selection: importance of selection; preparing job descriptions and person specifications; sources of recruitment; interview preparation and techniques; selection and appointment

Motivation, remuneration and training: motivation theory and practice; team building; target setting; financial incentives; non-financial incentives; salary and commission-basedremuneration; induction training; training on specific products; ongoing training and continuous professional development (CPD); training methods; preparation of training programmes; the sales manual

Organisation and structure: organisation of sales activities (by product, by customer, by customer type; by area); estimation and targeting of call frequency; territory design; journey planning; allocation of workload; team building; creating and maintaining effective working relationships; sales meetings; sales conferences

Controlling sales output: purpose and role of the sales budget; performance standards: performance against targets (financial, volume, call-rate, conversion, pioneering); appraisals;self-development plans; customer care

Database management: importance of database building; sources of information; updating the database; use of database to generate incremental business and stimulate repeat purchase; use of database control mechanisms; importance of ICT methods in database management; security of data; Data Protection Act

4Be able to plan sales activity for a product or service

Sales settings: sales channels (retailers, wholesalers, distributors, agents multi-channeland online retailers); importance of market segmentation: business-to-business (BTB) selling; industrial selling; selling to public authorities; selling for resale; telesales; selling services; pioneering; systems selling; selling to project teams or groups

International selling: role of agents and distributors; sources, selection and appointment of agents/distributors; agency contracts; training and motivating agents/distributors; use of expatriate versus local sales personnel; role, duties and characteristics of the export sales team; coping in different cultural environments; the role of ICT in communicating with an international sales team

Exhibitions and trade fairs: role, types and locations of trade fairs and exhibitions; how trade fairs and exhibitions fit in with corporate strategy and objectives; setting objectives for participation in an exhibition; audience profile and measurement; qualification and follow-upof exhibition leads; evaluation of exhibition attendance; setting budgets; financial assistance for exhibition attendance; principles of stand design

 

UNIT 20: SALES PLANNING AND OPERATIONS

Learning outcomes and assessment criteria

Learning outcomes

Assessment criteria for pass

On successful completion of

The learner can:

this unit a learner will:

LO1 Understand the role of

1.1

explain how personal selling supports the promotion mix

personal selling within the

1.2

compare buyer behaviour and the decision making

overall marketing strategy

process in different situations

1.3

analyse the role of sales teams within marketing

strategy

LO2 Be able to apply the

2.1

prepare a sales presentation for a product or service

principles of the selling

2.2

carry out sales presentations for a product or service

process to a product or

service

LO3 Understand the role and

3.1

explain how sales strategies are developed in line with

objectives of sales

corporate objectives

management

3.2

explain the importance of recruitment and selection

procedures

3.3

evaluate the role of motivation, remuneration and

training in sales management

3.4

explain how sales management organise sales activity

and control sales output

3.5

explain the use of databases in effective sales

management

LO4 Be able to plan sales activity

4.1

develop a sales plan for a product or service

for a product or service

4.2

investigate opportunities for selling internationally

4.3

investigate opportunities for using exhibitions or trade

fairs.

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