QCF Syllabus

Introduction to Business

Unit Title Introduction to Business

Unit Reference Number J/600/0661
Guided Learning Hours 100
Level 4
Number of Credits 12

Unit purpose and aim(s):

This unit aims to give learners a sound understanding of:
 business objectives, resources and accountability
 the structure and classification of business
 the external environment
 the scale and location of production, different production processes
 marketing strategy, marketing planning and market research
 accounting concepts and sources of finance
 HR planning

Learning Outcome 1

The learner will: Understand the objectives of a business, what resources they need and to whom they are accountable.

Assessment Criteria Indicative Content

The learner can:
1.1 Define and show an 1.1.1 Define and show an understanding of the terms ‘corporate aims’, ‘corporate
understanding of the important objectives’ and ‘corporate strategy’.
business terms related to 1.1.2 Explain how objectives and aims might change through the life of a business:
corporate objectives. survival, break-even, growth, profit maximisation, market share, diversification.
1.2 Describe the human and other 1.2.1 Describe the inputs required by a business: labour, suppliers, finance, land,
resources required by a business, management skills.
and relate the resources to 1.2.2 Explain the relationship between organisational objectives and human resources.
corporate objectives.
1.3 Identify the needs and 1.3.1 Identify the needs of different stakeholders in a business: owners/shareholders,
accountabilities of different customers, employees, management, suppliers, creditors and government.
stakeholders in a business and 1.3.2 Explain the accountability and responsibility of different groups:
how their behaviour might affect owners/shareholders and other stakeholders.
the business. 1.3.3 Describe and assess the different objectives of the various stakeholders, including
government, and how they might conflict.
1.3.4 Demonstrate how stakeholder objectives might affect the behaviour and decisions
of a business.
Learning Outcome 2

The learner will: Understand the structure and classification of business.

Assessment Criteria Indicative Content

The learner can:
2.1 Classify an economy by sectors. 2.1.1 Classify an economy by sector: primary, secondary, tertiary.
2.1.2 Explain the difference between the private sector and the public sector in terms of
ownership and objectives.
2.2 Describe and evaluate different 2.2.1 Describe advantages and disadvantages of different forms of legal structure: sole
forms of corporate legal trader, partnership, franchise, private limited company, public limited company.
structure.

Learning Outcome 3

The learner will: Understand how the external environment creates opportunities and threats for a business.

Assessment Criteria Indicative Content

The learner can:
3.1 Describe the effect on businesses 3.1.1 Describe the effect on businesses of changes in external economic factors: interest
of changes in external factors. rates, exchange rates, inflation, unemployment, the business cycle, government
legislation, technology.
3.1.2 Describe other non-economic influences on business activity: environmental,
cultural, moral and ethical.
3.2 Explain how firms can use PESTEL 3.2.1 Explain how firms can use PESTEL (political, economic, social, technological,
analysis as part of a business environmental, legislative influences) analysis as part of a business strategy.
strategy.

Learning Outcome 4

The learner will: Understand the factors that influence the scale of production, the location of production and the choice
between different types of production process.

Assessment Criteria Indicative Content

The learner can:
4.1 Explain economies and 4.1.1 Explain, and give examples of, economies and diseconomies of scale.
diseconomies of scale.
4.2 Describe the factors that 4.2.1 Describe the factors that influence the location of a business: availability of land,
influence the location of a labour, closeness to market, transport routes, government grants, planning
business. permission and environmental factors.
4.3 Describe and evaluate the 4.3.1 Describe the production process and its associated advantages and disadvantages:
production process. job, batch, flow, lean and cell.
Learning Outcome 5

The learner will: Understand the marketing process including marketing strategy, marketing planning and market research.

Assessment Criteria Indicative Content

The learner can:
5.1 Explain the importance of the 5.1.1 Define and explain the importance of the marketing process.
marketing process and define key 5.1.2 Explain how a market for a product can be segmented e.g. clothes, vehicles, holidays
marketing terms, including etc.
market segmentation, Product 5.1.3 Illustrate with a diagram and describe the Product Life Cycle.
Life Cycle, marketing mix, niche 5.1.4 Discuss the role of the marketing mix (4 P’s) as part of a marketing plan.
market, mass market, Unique 5.1.5 Describe and explain how the marketing mix might change at different points of the
product life cycle.
Selling Point.
5.1.6 Define other principle marketing terms: niche market, mass market, USP (Unique
Selling Point).
5.2 Explain marketing strategy in 5.2.1 Explain marketing strategy in terms of company objectives, available resources and
terms of company objectives, market possibilities.
available resources and market
possibilities.
5.3 Describe alternative methods of 5.3.1 Describe alternative methods of market research: primary and secondary.
market research.

Learning Outcome 6

The learner will: Understand the main accounting concepts and sources of finance for business.

Assessment Criteria Indicative Content

The learner can:
6.1 Define and explain basic 6.1.1 Define basic accounting terms: fixed costs, variable costs, revenue, profit, break-
accounting and budgeting even, working capital. Candidates will be expected to produce numerical
concepts. calculations to demonstrate their understanding of the above terms.
6.1.2 Define and describe the purpose of budgets and cash flow forecasts; advantages
and disadvantages.
6.2 Describe and evaluate different 6.2.1 Describe short term, medium term and long term sources of finance.
sources of finance for business. 6.2.2 Determine the appropriate source of finance to match a business need e.g.
overdraft for temporary expansion of stock levels.
6.2.3 Explain the relative benefits and disadvantages of each type of finance.

Learning Outcome 7

The learner will: Understand the need for human resource planning, and the importance of motivation in theory and in practice.

Assessment Criteria Indicative Content

The learner can:
7.1 Describe workforce planning in 7.1.1 Describe workforce planning in action and evaluate different approaches to
action and calculate labour recruitment, selection, induction and training.
turnover for a business. 7.1.2 Define and give equation for labour turnover.
7.2 Explain and evaluate the principal 7.2.1 Explain the principal theories: Taylor, Mayo, Maslow and Herzberg.
motivation theories and different 7.2.2 Describe and give the benefits of motivation in practice: job enrichment, job
practical approaches to enlargement, empowerment, team working.
motivation, including the use of 7.2.3 Comment upon the benefits and disadvantages of different means of remuneration:
remuneration as a motivator. piecework, time-based wage, salary, commission, profit sharing, share ownership,
fringe benefits.
Assessment:

 Assessment method: written examination (unless otherwise stated).

 Written examinations are of three hours’ duration.
 All learning outcomes will be assessed.

Recommended Reading:

 Introduction to Business – ABE Study Manual.

 Please refer to the Tuition Resources section of the Members Area of the ABE website (www.abeuk.com) for further
recommended reading.