Spec Detail

p1 Paper 1 - Short Answer and Data Response

Duration 90 min · Marks 80 · Weighting 50.00 · Structure fixed_question_blocks_with_flexible_parts · Question count fixed 4 · Assembly fixed_question_blocks_with_flexible_parts

Patterns: 4

p2 Paper 2 - Case Study

Duration 90 min · Marks 80 · Weighting 50.00 · Structure fixed_question_blocks_with_case_study · Question count fixed 4 · Assembly fixed_question_blocks_with_flexible_parts

Patterns: 4

1 Understanding business activity

• 1.1 Business activity 5 outcomes
  • 1 Define business activity and explain how businesses combine factors of production to meet needs and wants. p1, p2
  • 2 Explain scarcity, opportunity cost and the need for business choices. p1, p2
  • 3 Describe added value and ways businesses can increase added value. p1, p2
  • 4 Analyse how business activity creates goods, services, employment and income. p1, p2
  • 5 Consider how business objectives affect decisions in a business context. p1, p2
• 1.2 Classification of businesses 5 outcomes
  • 1 Classify business activity into primary, secondary and tertiary sectors. p1, p2
  • 2 Explain changes in sector importance as economies develop. p1, p2
  • 3 Interpret data showing employment or output by economic sector. p1, p2
  • 4 Compare public sector and private sector business activity. p1, p2
  • 5 Analyse reasons why businesses operate in different sectors. p1, p2
• 1.3 Enterprise, business growth and size 5 outcomes
  • 1 Define enterprise and entrepreneurship and identify characteristics of successful entrepreneurs. p1, p2
  • 2 Explain the role of risk, initiative and business planning in enterprise. p1, p2
  • 3 Calculate and interpret measures of business size including employees, output, sales, capital employed and market share. p1, p2
  • 4 Analyse reasons for business growth, remaining small and business failure. p1, p2
  • 5 Consider internal and external growth methods and problems caused by growth. p1, p2
• 1.4 Types of business organisation 5 outcomes
  • 1 Describe sole traders, partnerships, private limited companies, public limited companies, franchises, joint ventures and public corporations... p1, p2
  • 2 Compare unlimited liability and limited liability for business owners. p1, p2
  • 3 Explain advantages and disadvantages of different forms of business organisation. p1, p2
  • 4 Analyse factors influencing the choice of legal structure. p1, p2
  • 5 Recommend a suitable form of organisation for a business scenario. p1, p2
• 1.5 Business objectives and stakeholder objectives 5 outcomes
  • 1 Identify common business objectives including survival, profit, growth, market share, service and social aims. p1, p2
  • 2 Explain why business objectives change over time. p1, p2
  • 3 Identify stakeholder groups and their objectives. p1, p2
  • 4 Analyse conflicts between stakeholder objectives. p1, p2
  • 5 Consider how businesses may respond to stakeholder pressure. p1, p2

2 People in business

• 2.1 Motivating employees 5 outcomes
  • 1 Define key terms and concepts for motivating employees. p1, p2
  • 2 Explain the main features and reasons for motivating employees in a business context. p1, p2
  • 3 Interpret business information, tables or graphs related to motivating employees. p1, p2
  • 4 Analyse advantages, disadvantages and effects of decisions about motivating employees. p1, p2
  • 5 Consider and justify suitable recommendations about motivating employees for a business. p1, p2
• 2.2 Organisation and management 5 outcomes
  • 1 Define key terms and concepts for organisation and management. p1, p2
  • 2 Explain the main features and reasons for organisation and management in a business context. p1, p2
  • 3 Interpret business information, tables or graphs related to organisation and management. p1, p2
  • 4 Analyse advantages, disadvantages and effects of decisions about organisation and management. p1, p2
  • 5 Consider and justify suitable recommendations about organisation and management for a business. p1, p2
• 2.3 Recruitment, selection and training of employees 5 outcomes
  • 1 Define key terms and concepts for recruitment, selection and training of employees. p1, p2
  • 2 Explain the main features and reasons for recruitment, selection and training of employees in a business context. p1, p2
  • 3 Interpret business information, tables or graphs related to recruitment, selection and training of employees. p1, p2
  • 4 Analyse advantages, disadvantages and effects of decisions about recruitment, selection and training of employees. p1, p2
  • 5 Consider and justify suitable recommendations about recruitment, selection and training of employees for a business. p1, p2
• 2.4 Internal and external communication 5 outcomes
  • 1 Define key terms and concepts for internal and external communication. p1, p2
  • 2 Explain the main features and reasons for internal and external communication in a business context. p1, p2
  • 3 Interpret business information, tables or graphs related to internal and external communication. p1, p2
  • 4 Analyse advantages, disadvantages and effects of decisions about internal and external communication. p1, p2
  • 5 Consider and justify suitable recommendations about internal and external communication for a business. p1, p2

3 Marketing

• 3.1 Marketing, competition and the customer 5 outcomes
  • 1 Define key terms and concepts for marketing, competition and the customer. p1, p2
  • 2 Explain the main features and reasons for marketing, competition and the customer in a business context. p1, p2
  • 3 Interpret business information, tables or graphs related to marketing, competition and the customer. p1, p2
  • 4 Analyse advantages, disadvantages and effects of decisions about marketing, competition and the customer. p1, p2
  • 5 Consider and justify suitable recommendations about marketing, competition and the customer for a business. p1, p2
• 3.2 Market research 5 outcomes
  • 1 Define key terms and concepts for market research. p1, p2
  • 2 Explain the main features and reasons for market research in a business context. p1, p2
  • 3 Interpret business information, tables or graphs related to market research. p1, p2
  • 4 Analyse advantages, disadvantages and effects of decisions about market research. p1, p2
  • 5 Consider and justify suitable recommendations about market research for a business. p1, p2
• 3.3 Marketing mix 5 outcomes
  • 1 Define key terms and concepts for marketing mix. p1, p2
  • 2 Explain the main features and reasons for marketing mix in a business context. p1, p2
  • 3 Interpret business information, tables or graphs related to marketing mix. p1, p2
  • 4 Analyse advantages, disadvantages and effects of decisions about marketing mix. p1, p2
  • 5 Consider and justify suitable recommendations about marketing mix for a business. p1, p2
• 3.4 Marketing strategy 5 outcomes
  • 1 Define key terms and concepts for marketing strategy. p1, p2
  • 2 Explain the main features and reasons for marketing strategy in a business context. p1, p2
  • 3 Interpret business information, tables or graphs related to marketing strategy. p1, p2
  • 4 Analyse advantages, disadvantages and effects of decisions about marketing strategy. p1, p2
  • 5 Consider and justify suitable recommendations about marketing strategy for a business. p1, p2

4 Operations management

• 4.1 Production of goods and services 5 outcomes
  • 1 Define key terms and concepts for production of goods and services. p1, p2
  • 2 Explain the main features and reasons for production of goods and services in a business context. p1, p2
  • 3 Interpret business information, tables or graphs related to production of goods and services. p1, p2
  • 4 Analyse advantages, disadvantages and effects of decisions about production of goods and services. p1, p2
  • 5 Consider and justify suitable recommendations about production of goods and services for a business. p1, p2
• 4.2 Costs, scale of production and break-even analysis 5 outcomes
  • 1 Define fixed costs, variable costs, total costs and average costs. p1, p2
  • 2 Calculate break-even output using fixed costs, selling price and variable cost per unit. p1, p2
  • 3 Calculate and interpret margin of safety from business data. p1, p2
  • 4 Construct or interpret break-even charts showing costs, revenue, break-even output and profit or loss. p1, p2
  • 5 Analyse the uses and limitations of cost information and break-even analysis in decision-making. p1, p2
• 4.3 Achieving quality production 5 outcomes
  • 1 Define key terms and concepts for achieving quality production. p1, p2
  • 2 Explain the main features and reasons for achieving quality production in a business context. p1, p2
  • 3 Interpret business information, tables or graphs related to achieving quality production. p1, p2
  • 4 Analyse advantages, disadvantages and effects of decisions about achieving quality production. p1, p2
  • 5 Consider and justify suitable recommendations about achieving quality production for a business. p1, p2
• 4.4 Location decisions 5 outcomes
  • 1 Define key terms and concepts for location decisions. p1, p2
  • 2 Explain the main features and reasons for location decisions in a business context. p1, p2
  • 3 Interpret business information, tables or graphs related to location decisions. p1, p2
  • 4 Analyse advantages, disadvantages and effects of decisions about location decisions. p1, p2
  • 5 Consider and justify suitable recommendations about location decisions for a business. p1, p2

5 Financial information and decisions

• 5.1 Business finance: needs and sources 5 outcomes
  • 1 Define key terms and concepts for business finance: needs and sources. p1, p2
  • 2 Explain the main features and reasons for business finance: needs and sources in a business context. p1, p2
  • 3 Interpret business information, tables or graphs related to business finance: needs and sources. p1, p2
  • 4 Analyse advantages, disadvantages and effects of decisions about business finance: needs and sources. p1, p2
  • 5 Consider and justify suitable recommendations about business finance: needs and sources for a business. p1, p2
• 5.2 Cash-flow forecasting and working capital 5 outcomes
  • 1 Explain the purpose of cash-flow forecasts and working capital. p1, p2
  • 2 Complete a simple cash-flow forecast using inflows, outflows, net cash flow and closing balance. p1, p2
  • 3 Amend and interpret cash-flow forecasts to identify cash-flow problems. p1, p2
  • 4 Analyse causes of cash-flow problems and ways to improve cash flow. p1, p2
  • 5 Consider the importance of working capital for business survival. p1, p2
• 5.3 Income statements 5 outcomes
  • 1 Define revenue, cost of sales, gross profit, profit and retained profit. p1, p2
  • 2 Calculate gross profit and profit from income statement data. p1, p2
  • 3 Explain the difference between profit and cash. p1, p2
  • 4 Interpret income statements to assess business performance. p1, p2
  • 5 Analyse how changes in revenue and costs affect profit and retained profit. p1, p2
• 5.4 Statement of financial position 5 outcomes
  • 1 Define key terms and concepts for statement of financial position. p1, p2
  • 2 Explain the main features and reasons for statement of financial position in a business context. p1, p2
  • 3 Interpret business information, tables or graphs related to statement of financial position. p1, p2
  • 4 Analyse advantages, disadvantages and effects of decisions about statement of financial position. p1, p2
  • 5 Consider and justify suitable recommendations about statement of financial position for a business. p1, p2
• 5.5 Analysis of accounts 5 outcomes
  • 1 Identify users of accounts and explain why they analyse financial statements. p1, p2
  • 2 Calculate gross profit margin, profit margin and return on capital employed. p1, p2
  • 3 Calculate current ratio and acid test ratio. p1, p2
  • 4 Interpret profitability and liquidity ratios to assess financial performance. p1, p2
  • 5 Consider limitations of ratio analysis and recommend actions to improve financial performance. p1, p2

6 External influences on business activity

• 6.1 Economic issues 5 outcomes
  • 1 Define key terms and concepts for economic issues. p1, p2
  • 2 Explain the main features and reasons for economic issues in a business context. p1, p2
  • 3 Interpret business information, tables or graphs related to economic issues. p1, p2
  • 4 Analyse advantages, disadvantages and effects of decisions about economic issues. p1, p2
  • 5 Consider and justify suitable recommendations about economic issues for a business. p1, p2
• 6.2 Environmental and ethical issues 5 outcomes
  • 1 Define key terms and concepts for environmental and ethical issues. p1, p2
  • 2 Explain the main features and reasons for environmental and ethical issues in a business context. p1, p2
  • 3 Interpret business information, tables or graphs related to environmental and ethical issues. p1, p2
  • 4 Analyse advantages, disadvantages and effects of decisions about environmental and ethical issues. p1, p2
  • 5 Consider and justify suitable recommendations about environmental and ethical issues for a business. p1, p2
• 6.3 Business and the international economy 5 outcomes
  • 1 Define key terms and concepts for business and the international economy. p1, p2
  • 2 Explain the main features and reasons for business and the international economy in a business context. p1, p2
  • 3 Interpret business information, tables or graphs related to business and the international economy. p1, p2
  • 4 Analyse advantages, disadvantages and effects of decisions about business and the international economy. p1, p2
  • 5 Consider and justify suitable recommendations about business and the international economy for a business. p1, p2