Higher Business Management

Course code: C810 76

Course assessment code: X810 76

SCQF: level 6 (24 SCQF credit points)

Valid from: session 2018–19

This document provides detailed information about the course and course assessment to
ensure consistent and transparent assessment year on year. It describes the structure of
the course and the course assessment in terms of the skills, knowledge and understanding
that are assessed.

This document is for teachers and lecturers and contains all the mandatory information you
need to deliver the course.

The information in this publication may be reproduced in support of SQA qualifications only
on a non-commercial basis. If it is reproduced, SQA must be clearly acknowledged as the
source. If it is to be reproduced for any other purpose, written permission must be obtained
from [email protected].

This edition: May 2018 (version 2.0)

© Scottish Qualifications Authority 2013, 2018

Contents
Course overview 1
Course rationale 2
Purpose and aims 2
Who is this course for? 2
Course content 3
Skills, knowledge and understanding 3
Skills for learning, skills for life and skills for work 8
Course assessment 9
Course assessment structure: question paper 9
Course assessment structure: assignment 10
Grading 13
Equality and inclusion 14
Further information 15
Appendix: course support notes 16
Introduction 16
Developing skills, knowledge and understanding 16
Approaches to learning and teaching 17
Preparing for course assessment 40
Developing skills for learning, skills for life and skills for work 40
Course overview
The course consists of 24 SCQF credit points which includes time for preparation for course
assessment. The notional length of time for candidates to complete the course is 160 hours.

The course assessment has two components.

Component Marks Duration

Component 1: question paper 90 2 hours and 45 minutes

Component 2: assignment 30 8 hours — see ‘Course

assessment’ section

Recommended entry Progression

Entry to this course is at the discretion of  Advanced Higher Business

the centre. Management course
 other qualifications in business
Candidates should have achieved the management or related areas
National 5 Business Management course or
 further study, employment and/or
equivalent qualifications and/or experience
training
prior to starting this course.

Conditions of award
The grade awarded is based on the total marks achieved across all course assessment
components.

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Course rationale
National Courses reflect Curriculum for Excellence values, purposes and principles. They
offer flexibility, provide time for learning, focus on skills and applying learning, and provide
scope for personalisation and choice.

Every course provides opportunities for candidates to develop breadth, challenge and
application. The focus and balance of assessment is tailored to each subject area.

Business plays an important role in society, as it creates wealth, prosperity, jobs, and
choices for consumers. It is therefore essential to have effective businesses and business
managers to sustain this role.

This course helps candidates understand the dynamic, changing and competitive
environment of industry and commerce, and the environments that organisations operate in.
It develops skills in communicating and presenting business-related information to
stakeholders of an organisation.

Purpose and aims

The course highlights the different ways in which large organisations operate. Candidates
learn to understand and make use of business information to interpret and report on overall
business performance, in a range of contexts. Using current business theory and practice,
the course reflects the integrated nature of large organisations, their functions and decision-
making processes.

Candidates develop understanding of:

 the ways in which society relies on organisations and how external influences can affect
them
 a range of methods that businesses and other organisations use to meet customer needs
 enterprising skills and attributes
 how to analyse and interpret business information and communicate it in a clear and
concise way

Who is this course for?

The course is suitable for candidates who are interested in entering the world of business, as
a manager, employee or self-employed person, and exploring the activities of different types
of business.

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Course content
The course consists of five areas of study:

Understanding business
Candidates develop their understanding of how large organisations in the private, public and
third sectors operate, make decisions and pursue their strategic goals. They analyse the
impact that internal and external environments have on an organisation’s activity, and
consider the implications of these factors.

Management of marketing
Candidates develop their understanding of the importance of effective marketing systems to
large organisations. They learn about the relevant theories, concepts and procedures used
by organisations to improve competitiveness and customer satisfaction.

Management of operations
Candidates develop their understanding of the importance of effective operations systems to
large organisations. They learn about the relevant theories, concepts and procedures used
by organisations to improve and/or maintain quality, and the importance of satisfying both
internal and external customers’ needs.

Management of people
Candidates develop their understanding of the issues that large organisations face when
managing people. They learn about the relevant theories, concepts and procedures used by
organisations when dealing with staff, including retention, training, leadership and motivation.

Management of finance
Candidates develop their understanding of the issues that large organisations face when
managing finance. They learn about the relevant theories, concepts and procedures used by
organisations in financial situations.

Skills, knowledge and understanding

Skills, knowledge and understanding for the course
The following provides a broad overview of the subject skills, knowledge and understanding
developed in the course:

 applying knowledge and understanding of the impact of business activities on society, in

contexts which have complex features
 applying the ideas of ethical and effective business decision making to solve strategic
business-related problems
 communicating relatively complex business ideas and opinions from a range of
information relating to the effects of opportunities and constraints on business activity,
some of which may be unfamiliar
 understanding how entrepreneurial attributes can help business development and risk
management

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 analysing the effectiveness of a range of marketing activities and understanding how they
can be used to enhance customer satisfaction
 analysing a range of activities which can be used during the production process to
maximise the quality of goods/services
 understanding leadership styles and how they can be used to enhance the contribution of
staff to business success
 analysing business financial data to draw conclusions and suggest solutions where
appropriate
 analysing the use of existing and emerging technologies to improve business practice

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Skills, knowledge and understanding for the course assessment
The following provides details of skills, knowledge and understanding sampled in the course
assessment:

Understanding business

Role of business in society  sectors of industry

 sectors of the economy
Types of organisations  public sector organisations
 private limited companies
 public limited companies
 franchising
 multinationals
 third-sector organisations
Objectives  corporate social responsibility
 growth
 satisficing
 managerial objectives
Methods of growth  organic
 horizontal
 vertical (forwards and backwards)
 lateral
 conglomerate
 diversification
External factors  impact of PESTEC external factors, including
economic and competition policy
Internal factors  corporate culture
 availability of finance
 staffing
 technology
Stakeholders  conflicts of interest and interdependence

Structures  features, benefits and drawbacks of different

organisational structures
Decision making  types of decisions
 quality decisions
 SWOT analysis
 role of a manager

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 Management of marketing

Customers  market-led versus product-led

 consumer behaviour
Market research  market research methods (including justification for
use)
 sampling
Marketing mix  product
 price
 place
 promotion
 people
 process
 physical evidence
Product  product life cycle (including sales revenue and
profitability at each stage)
 extension strategies
 product portfolio
Price  pricing strategies

Place  channels of distribution

 role of wholesaler and retailer
 types of retailers
Promotion  into and out of the pipeline
 public relations
People  people involved in delivering customer satisfaction
 levels of after-sales service
Process  systems in place to ensure satisfactory delivery of
the service to the customer
Physical evidence  physical environment used to deliver a service

Technology  role of technology in marketing

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 Management of operations

Inventory management  inventory management systems

 just-in-time
 storage, warehousing
 logistics
Methods of production  capital- and labour-intensive production methods

Quality  quality management

 quality standards and symbols
 benchmarking
 quality circles
 mystery shopping
Ethical and environmental  fair trade
 environmental problems and solutions
 ethical issues
Technology  role of technology in operations

Management of people

Workforce planning  elements of workforce planning (including costs and

benefits of recruitment and selection)
Training and development  staff development
 training schemes
 work-based qualifications
 appraisal
Motivation and leadership  theories of motivation
 leadership styles
Employee relations  institutions involved
 processes
Legislation  impact of current employment legislation

Technology  role of technology in human resources

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 Management of finance

Sources of finance  appropriate for larger organisations

Cash budgeting  analysis

 cash flow issues and solutions
Note: preparation of cash budget not required
Financial Statements  interpretation of Income Statements and Statements
of Financial Position
Note: preparation of financial statements not required
Ratios  profitability
 liquidity
 efficiency
Note: calculation of ratios not required
Technology  role of technology in finance

Skills, knowledge and understanding included in the course are appropriate to the SCQF
level of the course. The SCQF level descriptors give further information on characteristics
and expected performance at each SCQF level, and can be found on the SCQF website.

Skills for learning, skills for life and skills for work
This course helps candidates to develop broad, generic skills. These skills are based on
SQA’s Skills Framework: Skills for Learning, Skills for Life and Skills for Work and draw from
the following main skills areas:

1 Literacy

1.2 Writing

2 Numeracy

2.3 Information handling

4 Employability, enterprise and citizenship

4.1 Employability
4.4 Enterprise

5 Thinking skills

5.3 Applying
5.4 Analysing and evaluating

You must build these skills into the course at an appropriate level, where there are suitable
opportunities.

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Course assessment
Course assessment is based on the information provided in this document.

The course assessment meets the key purposes and aims of the course by addressing:

 breadth — drawing on knowledge and skills from across the course

 challenge — requiring greater depth or extension of knowledge and/or skills
 application — requiring application of knowledge and/or skills in practical or theoretical
contexts as appropriate

This enables candidates to:

 assess the impact of business activities on society in unfamiliar contexts

 make decisions by applying business concepts and ideas to resolve business-related
issues
 research, interpret, analyse and evaluate relatively complex business information to draw
valid conclusions and suggest solutions where appropriate
 communicate relatively complex business ideas and opinions from a wide range of
sources

Course assessment structure: question paper

Question paper 90 marks
The question paper gives candidates the opportunity to demonstrate their ability to:

 apply and integrate knowledge and understanding of business concepts from all aspects
of the course
 use data handling techniques to interpret and analyse business information
 draw valid conclusions and suggest resolutions to business-related issues

All questions are mandatory and sample from the ‘Skills, knowledge and understanding for
the course assessment’ section of this document.

The question paper has a total mark allocation of 90 marks. This is 75% of the overall marks
for the course assessment.

The question paper has two sections.

Section 1 is worth 30 marks and contains one question. This is a multi-part question, with
each part attracting a mark from a range of 1–8 marks. The question is based on stimulus
material in the form of a case study and samples course content from any of the five areas of
study. In general, it assesses decision making and the application of knowledge and
understanding.

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The stimulus material is based on a real organisation and can include text, financial
information, graphs, diagrams and charts. The question generally relates to the stimulus,
although some could be based on topics surrounding the stimulus material.

Section 2 is worth 60 marks and contains four questions worth 15 marks each. These are
multi-part questions, with each part attracting a mark from a range of 1–8 marks. This section
samples course content from any of the five areas of study. In general, it assesses breadth of
knowledge and understanding from across the course.

Setting, conducting and marking the question paper

The question paper is set and marked by SQA, and conducted in centres under conditions
specified for external examinations by SQA.

Candidates have 2 hours and 45 minutes to complete the question paper.

Specimen question papers for Higher courses are published on SQA’s website. These
illustrate the standard, structure and requirements of the question papers candidates sit. The
specimen papers also include marking instructions.

Course assessment structure: assignment

Assignment 30 marks
The assignment gives candidates the opportunity to demonstrate their ability to:

 select an appropriate business and topic

 collect information/evidence relating to the context of the assignment, from a range of
sources
 apply relevant business concepts and theories to the context of the assignment
 analyse and evaluate the business data/information
 solve problems by applying relatively complex business ideas and concepts relevant to
the context of the assignment
 communicate valid, justified conclusions and/or recommendations
 produce a business report relating to the context of the assignment

Candidates research and analyse information, and produce a business report using given
headings. The report is based on an analysis of the research findings and details appropriate
conclusions and/or recommendations.

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Candidates choose a topic to research. Teachers and lecturers may wish to encourage
candidates to frame their report title as a question, for example:

Is the product portfolio of xxx effective?

Have the product extension strategies used by xxx been successful in

maintaining/increasing its market share of yyy (a product)?
Have the quality measures used by xxx maintained/increased customer satisfaction?

An analysis of the extended marketing mix of xxx.

The assignment has a total mark allocation of 30 marks. This is 25% of the overall marks for
the course assessment. Marks are awarded for:

 introduction 2 marks
 research 4 marks
 analysis and interpretation 13 marks
 conclusions and recommendations 10 marks
 structure 1 mark

Setting, conducting and marking the assignment

The assignment is:

 set by SQA
 conducted in centres under some supervision and control
 submitted to SQA for external marking

All marking is quality assured by SQA.

Assessment conditions
Time
The assignment is designed to be completed over a notional period of 8 hours. This includes
time for research and producing the final business report. Candidates can complete their
research and write-up simultaneously.

Candidates who choose to carry out field research may need more than the notional 8 hours
to complete their research.

Assessment should start at an appropriate point, normally once most of the content has been
delivered.

Supervision, control and authentication

Candidates must carry out the assignment on an individual basis. Research, data collection
and analysis must be completed independently.

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Desk research should be carried out in centres — field research can be conducted outwith
the classroom setting.

Candidates carry out the assignment under some supervision and control, to ensure that
work presented is their own. Teachers and lecturers must put in place mechanisms to
authenticate candidate evidence and/or research not completed within the classroom setting.
For example:

 regular checkpoint meetings with candidates

 short spot-check interviews with candidates
 checklists which record activity/progress

Resources
The assignment is open-book — there are no restrictions on the resources that candidates
may have access to when undertaking the assignment.

Candidates do not need to make direct contact with organisations as part of their research.
They may find that information on websites and elsewhere is enough for the level of research
required.

Reasonable assistance
Candidates must complete the assignment independently. However, reasonable assistance
may be provided by teachers and lecturers at relevant stages in the process, as identified
below. The term ‘reasonable assistance’ is used to try to balance the need for support with
the need to avoid giving too much help. If any candidate requires more than what is thought
to be ‘reasonable assistance’, they may not be ready for assessment, or they may have been
entered for the wrong level of qualification.

Reasonable assistance may include:

 clarifying the instructions/requirements of the assignment

 advising candidates on a suitable topic to research
 advising candidates on which organisation to choose
 advising candidates on the likely availability and accessibility of resources for their
chosen topic
 advising candidates on possible sources of information
 advising candidates on how best to structure their business report

Reasonable assistance does not include:

 providing candidates with full exemplar assignments

 directing candidates to specific text within a source of information
 telling candidates what analysis they can draw from a research finding
 reading and marking drafts

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Evidence to be gathered
Candidates produce a business report including supporting appendices. The appendices
should show a list of all the sources of information used, which may include:

 website addresses used in research

 details of newspaper and/or magazine articles (publication name, date, article title) or
books (title, chapter, author)
 statistical, graphical or numerical data
 interview questions and/or responses
 questionnaire/survey questions and/or results
 appropriate photos/images
 notes taken from a visit or a talk
 notes taken from an audio-visual source

Volume
The business report should be no longer than 2,000 words (excluding appendices). If the
word count exceeds the maximum by more than 10%, a penalty will be applied.

There should be no more than four pages of appendices attached to the report.

Grading
Candidates’ overall grades are determined by their performance across the course
assessment. The course assessment is graded A–D on the basis of the total mark for all
course assessment components.

Grade description for C

For the award of grade C, candidates will typically have demonstrated successful
performance in relation to the skills, knowledge and understanding for the course.

Grade description for A

For the award of grade A, candidates will typically have demonstrated a consistently high
level of performance in relation to the skills, knowledge and understanding for the course.

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Equality and inclusion
This course is designed to be as fair and as accessible as possible with no unnecessary
barriers to learning or assessment.

For guidance on assessment arrangements for disabled candidates and/or those with
additional support needs, please follow the link to the assessment arrangements web page:
www.sqa.org.uk/assessmentarrangements.

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Further information
The following reference documents provide useful information and background.

 Higher Business Management subject page

 Assessment arrangements web page
 Building the Curriculum 3–5
 Guide to Assessment
 Guidance on conditions of assessment for coursework
 SQA Skills Framework: Skills for Learning, Skills for Life and Skills for Work
 Coursework Authenticity: A Guide for Teachers and Lecturers
 Educational Research Reports
 SQA Guidelines on e-assessment for Schools
 SQA e-assessment web page

The SCQF framework, level descriptors and handbook are available on the SCQF website.

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Appendix: course support notes
Introduction
These support notes are not mandatory. They provide advice and guidance to teachers and
lecturers on approaches to delivering the course. You should read these in conjunction with
this course specification and the specimen question paper and coursework.

Developing skills, knowledge and understanding

This section provides further advice and guidance about skills, knowledge and understanding
that you could include in the course. You have considerable flexibility to select contexts that
will stimulate and challenge candidates, offering both breadth and depth.

The following tables suggest activities to support the delivery of the course and are suitable
for candidates with different learning styles.

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Approaches to learning and teaching
Learning in this course should be contextualised to large private-sector businesses, public-sector and third-sector organisations.

Understanding business
Topic Further advice and guidance about skills, knowledge Suggested experiences and activities for candidates
and understanding
Role of Candidates should be aware of how business activity:  carrying out independent or group research tasks and/or
business in case studies to look at the different industrial and
society  adds value economic sectors
 helps satisfy the needs of customers in a changing  presenting findings to the class
competitive environment

Candidates should be able to classify and describe the

following:

 sectors of industry
— business activity in the primary sector, secondary
sector, tertiary sector and quaternary sector
 sectors of the economy
— organisations in the public, private and third sectors

Types of From the range below, candidates should:  carrying out independent or group research tasks and/or
organisations case studies to look at the different types of organisations
 be able to describe the similarities and differences in terms of how they are organised, what they do and how
between structures in terms of ownership, control and they do it
finance:  carrying out surveys of parents, carers, relatives about
— public sector organisations their employers

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 Understanding business
Topic Further advice and guidance about skills, knowledge Suggested experiences and activities for candidates
and understanding
— private limited companies  using online mapping to examine the distribution of local
— public limited companies businesses
— franchising
— multinationals
— third-sector organisations

Objectives Candidates should:  accessing case studies to understand how commercial

business works
 be aware of the aims and objectives of the types of  using current businesses as case studies to demonstrate
organisations listed above the reasons behind their objectives
 be able to explain any similarities or differences in these  listening to guest speakers explain their business
aims and objectives objectives and the reasons for choosing them
 be aware of what organisations do to achieve objectives
 understand why objectives may change as
circumstances change

Main objectives:

 corporate social responsibility

 growth
 satisficing
 managerial objectives
— working within a budget

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 Understanding business
Topic Further advice and guidance about skills, knowledge Suggested experiences and activities for candidates
and understanding
Methods of Candidates should:  accessing case studies to understand the different
growth methods of growth used
 be aware of methods of growth available to  using current businesses as case studies to demonstrate
organisations the reasons for choosing the method of growth
 be able to describe the methods  listening to guest speakers explain their methods of
 understand reasons for using each method growth and the reasons for choosing them
 be aware of the disadvantages of each method

Methods of growth include:

 organic
 horizontal
 forwards vertical
 backwards vertical
 lateral
 conglomerate
 diversification

Ways to achieve growth include:

 mergers, acquisitions, takeovers

 franchising
 becoming a multinational
 product development, advertising, increasing staffing

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 Understanding business
Topic Further advice and guidance about skills, knowledge Suggested experiences and activities for candidates
and understanding

Ways of funding growth include:

 retained profits
 divestment
 deintegration
 asset stripping
 demerger
 buy-in
 buy-out
 outsourcing

External Candidates should be aware of:  using current businesses as case studies to illustrate how
factors external factors can positively and negatively affect
 the impact that external factors might have on business activities, for example how tobacco companies,
organisations bars, restaurants, garden furniture sellers have been
affected by the smoking ban
Factors include:  researching how external factors influence a business of
their choice
 political (including economic policy and competition  presenting findings to the class
policy)
 using business stories to illustrate the impact of external
 economic factors on business activity
 social (including ethical)  listening to guest speakers explain how factors have affected
 technological (new innovations that become available) their businesses, for example competition, competition policy
and economic policy

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 Understanding business
Topic Further advice and guidance about skills, knowledge Suggested experiences and activities for candidates
and understanding
 environmental
 competitive

Internal Candidates should be aware of:  using analytical techniques to illustrate how internal
factors factors can positively and negatively affect business
 the impact that internal factors might have on activities, for example how workers’ striking affects a
organisations’ abilities to meet their objectives business
 the ways organisations might be able to overcome any  researching how internal factors influence choices made
constraints by businesses
 presenting findings to the class
Factors include:  using business stories to illustrate the impact of
contemporary technology on business activity
 corporate culture (including methods of promoting and
 listening to guest speakers explain how internal factors
the costs and benefits)
affect their businesses, for example corporate culture
 finance (budget constraints and availability)
 staffing (skill set, availability and motivation)
 technology (that is currently available in an organisation)

Stakeholders Candidates should be aware of:  using current businesses as case studies to provide
examples of stakeholder conflict and interdependence
 the differing objectives of groups of stakeholders in terms  using business stories to illustrate contemporary examples
of: of stakeholder conflict and interdependence
— conflicts of interest  listening to guest speakers explain how they manage
— interdependence stakeholder conflict and interdependence

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 Understanding business
Topic Further advice and guidance about skills, knowledge Suggested experiences and activities for candidates
and understanding
Structures Candidates should:  using current businesses as case studies to provide
examples of staff and management structures and
 be aware of the different organisational structures and groupings
groupings available  listening to guest speakers explain how they organise their
 be able to describe these structures and groupings managers and staff, and their reasons for doing so
 be aware of any advantage and/or disadvantage of the
structures and groupings
 be aware of the effect of downsizing on an organisation’s
structure

Structures include:

 tall and flat (including delayering)

 centralised and decentralised
 matrix
 entrepreneurial

Staff groupings include:

 function
 place/territory
 product
 technological
 customer

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 Understanding business
Topic Further advice and guidance about skills, knowledge Suggested experiences and activities for candidates
and understanding
Decision Candidates should be aware of:  using current businesses as case studies to provide
making examples of strategic, tactical and operational decisions
 types of decisions:  listening to guest speakers explain the skills needed by a
— strategic, tactical and operational decisions manager in order to make effective decisions
— centralised and decentralised decision making  preparing a SWOT analysis on a business and using the
 factors that affect quality decisions: analysis to suggest a suitable action the business could
take
— ways of measuring the success of decisions
 SWOT analysis and its use as a decision-making tool
 the role of a manager in making decisions:
— plan, organise, command, control, coordinate,
delegate, and motivate

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Management of marketing
Topic Further advice and guidance about skills, knowledge and Suggested experiences and activities for candidates
understanding
Customers Candidates should be aware of:  using the internet to research organisations that have had
successful or unsuccessful marketing campaigns
 what is meant by market-led and product-led, and the  using the internet to compare market-led organisations
differences between them with product-led organisations
 consumer behaviours, for example:  conducting a class survey to find out what products, and
— routine/habitual in what circumstances, consumer behaviour differs when
making buying decisions
— informed
— impulsive

Market Candidates should be aware of:  preparing and conducting market research
research  analysing market research data to aid decision making
 the different methods of field research, and their costs and
 researching and justifying suitable sampling activities
benefits
 using technological resources appropriately to assist in
 the different methods of desk research, and their costs
preparing and analysing market research, for example
and benefits
word processing, online survey tools and spreadsheet
 how random and quota sampling can be used in market software
research
 how market research information can be used by a
business

Marketing mix Candidates should be aware of:  investigating the use of successful and unsuccessful
marketing strategies involving the marketing mix
 the impact of one element of the marketing mix on  using websites to gather information about a current
another, for example: successful marketing mix
 listening to guest speakers explain their marketing mix

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Management of marketing
Topic Further advice and guidance about skills, knowledge and Suggested experiences and activities for candidates
understanding
— starting to sell online may mean having to charge a
lower price to compete — one way to do this is to use
cheaper materials which may result in a lower quality
product

Product Candidates should be aware of:  investigating the different lifecycle stages of various
products
 the sales revenue and profit levels at each stage of a  suggesting and justifying appropriate extension strategies
product’s lifecycle
 evaluating the costs/benefits product portfolios from case
 using extension strategies to enhance product sales and study material
profits
 product portfolios:
— costs and benefits
— the Boston Matrix and its use

Product lifecycle:

 research and development (R&D)

 introduction
 growth
 maturity/saturation
 decline

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Management of marketing
Topic Further advice and guidance about skills, knowledge and Suggested experiences and activities for candidates
understanding
Price Candidates should be aware of:  discussing real contexts and experiences to exemplify
how product type, business size, business objectives,
 pricing strategies and market structure affect the pricing strategy of a
— advantages and disadvantages of each strategy product
 using price-comparison websites to assist in analysing
Pricing strategies: pricing strategies used by different businesses
 listening to guest speakers explain the importance of their
 cost-based (cost plus) pricing strategies
 skimming
 penetration
 price discrimination
 destroyer/predatory (an illegal practice)
 loss leaders
 promotional
 psychological

Place Candidates should be aware of:  surveying local businesses about channels of distribution
used
 the overall channels of distribution available to  researching and justifying suitable channels of distribution
organisations: for different scenarios
— reasons for choosing different channels  attending field trips to local business areas to investigate
— costs and benefits of different channels reasons for their channel of distribution choices
 the costs and benefits of using:  listening to guest speakers talk about the importance of
— wholesalers their channel of distribution

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Management of marketing
Topic Further advice and guidance about skills, knowledge and Suggested experiences and activities for candidates
understanding
— different types of retailers
— direct sales (including different methods)

Promotion Candidates should be aware of:  investigating the key features that make promotions
effective
 into the pipeline promotions (offered by manufacturers to  surveying local businesses for promotions being used
retailers), for example:
 listening to guest speakers explain the importance of their
— point of sale materials promotional activities
— sale or return
— dealer loaders
— promotional gifts
— staff training
 out of the pipeline promotions (offered by retailers to
consumers), for example:
— BOGOF
— free trial/sample packs
— vouchers/money-off coupons
— competitions
 public relations

People Candidates should be aware of:

 investigating the use of successful and unsuccessful
marketing strategies involving people and/or processes
 the way people can be used as part of an extended
and/or physical evidence
marketing mix when providing a service, for example:

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Management of marketing
Topic Further advice and guidance about skills, knowledge and Suggested experiences and activities for candidates
understanding
— delivering customer satisfaction  listening to guest speakers explain their marketing
— providing after-sales service strategy involving people and/or processes and/or
physical evidence
— training staff in customer service
— having helpful staff

Process Candidates should be aware of:

 the processes that can be used as part of an extended

marketing mix when providing a service, for example:
— the process of delivering the product or service
— the impression left on the customer
— short waiting times
— user-friendly websites
— helpful information given to customers

Physical Candidates should be aware of:

evidence
 the physical evidence that can be used as part of an
extended marketing mix when providing a service, for
example:
— the physical environment experienced by the customer
— the layout and design of premises
— the layout and design of websites
— ambience

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Management of marketing
Topic Further advice and guidance about skills, knowledge and Suggested experiences and activities for candidates
understanding
Technology Candidates should be aware of:  using current businesses as case studies to illustrate how
technology is used when managing marketing
 how technology can be used in marketing, and the costs  using business stories to keep up to date with
and benefits of using it, for example: contemporary examples of technology being used by
— electronic point of sale (EPOS) for market research business and its impact on business activity
— online survey  listening to guest speakers explain how the marketing of
— internet advertising their business is affected by technological factors
— e-commerce
— e-mail
— databases
— social media
— desktop publishing (DTP)
— text alerts
— apps
— quick response (QR) codes

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Management of operations

Topic Further advice and guidance about skills, knowledge and Suggested experiences and activities for candidates
understanding
Inventory Candidates should be aware of:  choosing suitable inventory storage for businesses from a
management case study or scenario
 the purpose of an inventory management control system:  listening to guest speakers talk about their inventory
— maximum/economic inventory level management choices
— minimum inventory level
— re-order level
— re-order quantity
— buffer inventory
— lead time
 features, costs and benefits of just-in-time inventory
control
 inventory storage and warehousing (including centralised
and decentralised)
 logistical management of inventory — the process of
dealing with the whole order from start to finish

Methods of Candidates should be aware of:  investigating production methods used by different
production businesses
 the costs and benefits of capital-intensive, mechanised  recommending suitable production methods for products
and automated production
 using business stories to demonstrate different methods
 the costs and benefits of labour-intensive production of production
 the reasons for production choices  attending field trips to businesses to examine production
methods

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Management of operations

Topic Further advice and guidance about skills, knowledge and Suggested experiences and activities for candidates
understanding
 listening to guest speakers explain their production
methods
Quality Candidates should be aware of:  investigating methods used by different businesses to
provide quality products
 the importance of quality to organisations and customers  recommending suitable methods to enhance the quality
 the distinction between quality control methods of products
(inspection) and quality assurance methods (prevention)  watching consumer affairs programmes to consider
 quality standards and symbols as a way of documenting consumer viewpoints on quality
and displaying quality, for example:  reading consumer affairs magazines to consider
— CE Marking consumer viewpoints on quality
— BSI Kitemark  attending field trips to businesses to examine quality
— trade logos activities employed
 the costs and benefits of a range of methods of ensuring  listening to guest speakers explain how they ensure
quality, for example: quality in their products
— quality control
— quality assurance
— benchmarking
— quality circles
— mystery shoppers
— continual improvement of process and system

Ethical and Candidates should be aware of:  investigating environmental activities of large businesses
environmental  investigating fair trade activities carried out by businesses
 the costs and benefits of environmental responsibility
 investigating the work of The Fairtrade Foundation

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Management of operations

Topic Further advice and guidance about skills, knowledge and Suggested experiences and activities for candidates
understanding
 the costs and benefits of fair trade activities (including The  investigating unethical activities of large businesses
Fairtrade Foundation)  listening to guest speakers explain what they do to be
 the costs and benefits of ethical operations ethical and environmentally responsible

Technology Candidates should be aware of:  using current businesses as case studies to illustrate how
technology is used to manage operations
 how technology can be used in operations and the costs  using business stories to keep up to date with
and benefits of using it, for example: contemporary examples of technology being used by
— computer-aided design (CAD) business and its impact on business activity
— computer-aided manufacture (CAM)  listening to guest speakers explain how the operations of
— electronic point of sale (EPOS) their business are affected by technological factors
— robotics
— barcodes and QR codes
— e-mail
— internet
— databases

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Management of people

Topic Further advice and guidance about skills, knowledge Suggested experiences and activities for candidates
and understanding
Workforce Candidates should be aware of:  exploring different careers, researching job
planning specifications and the desirable and/or essential
 elements of workforce planning, for example: attributes for different job roles
— skills analysis of current staff  using business case studies that illustrate workforce
— staffing forecasts to meet demand planning
— planning internal and external supply of staff  listening to guest speakers explain how their business
implements workforce planning
— costs and benefits of internal and external
recruitment
— costs and benefits of selection methods

Training and Candidates should be aware of:  investigating training methods and recommending
development suitable methods for different scenarios
 the relevance of staff development and training to  listening to guest speakers explain the costs and
organisations and employees benefits of staff training, and the different training types
 different ways of training staff, for example: and methods they use in their business
— apprenticeships  using business stories to illustrate how organisations
— graduate training schemes have used appraisal methods and the effect these have
had on the organisation and its employees
— corporate training schemes
— work-based qualifications
— continuing professional development (CPD)
 the costs and benefits of different ways of training staff
 different types of appraisal, for example:
— one-to-one
— 360-degree

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Management of people

Topic Further advice and guidance about skills, knowledge Suggested experiences and activities for candidates
and understanding
— peer-to-peer
 the costs and benefits of appraisal to organisations and
employees

Motivation and Candidates should be aware of:  using current businesses as case studies to provide
leadership examples of motivation in the workplace
 motivation theories:  justifying leadership styles for different scenarios
— Maslow  taking part in team-building activities
— Herzberg  listening to guest speakers talk about what their
 the benefits of motivation business does to motivate and lead staff
 the role of management in motivating employees
 styles of leadership and their costs and benefits:
— autocratic
— democratic
— laissez-faire
 how leadership styles are used and justified in a given
business scenario

Employee relations Candidates should be aware of:  using current businesses as case studies to provide
examples of the impact of employee relation activities
 the meaning of employee relations  participating in mock wage negotiation activities
 the impact of positive employee relations  listening to guest speakers talk about how they manage
 legal and company policies and processes, and their employee relations
impact on employee relations, for example:

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Management of people

Topic Further advice and guidance about skills, knowledge Suggested experiences and activities for candidates
and understanding
— grievance
— discipline
— dismissal
— absenteeism
— redundancy
 the role of external institutions and their impact on
organisations and employees, for example:
— Trades Unions
— ACAS
 how organisations use employee participation and their
costs and benefits, for example:
— works councils
— worker directors
— consultative committees

Legislation Candidates should be aware of:  use examples to illustrate how organisations have
changed their behaviour to comply with current
 impact of current employment legislation on employee legislation
organisations and employee relations, for example:
— Health and Safety at Work Act
— Equality Act
— National Minimum Wage Regulations
— National Living Wage Regulations

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Management of people

Topic Further advice and guidance about skills, knowledge Suggested experiences and activities for candidates
and understanding
Technology Candidates should be aware of:  using current businesses as case studies to illustrate
how technology is used when managing people
 how technology can be used in human resource  using business stories to keep up to date with
management, for example: contemporary examples of technology being used by
— database business and its impact on business activity
— video conferencing
— online application form
— job advertising
— e-diary
— presentation software
— virtual learning environment (VLE) training
— electronic testing
 the costs and benefits of using technology

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Management of finance

Topic Further advice and guidance about skills, knowledge and Suggested experiences and activities for candidates
understanding
Sources of Candidates should be aware of:  investigating the role and operation of the stock market in
finance providing finance for public limited companies
 how different sources of finance can be suitable for large  researching and justifying suitable finance for different
organisations scenarios
 sources of finance, for example:  participating in stock market investment simulations
— retained profit  visiting banks and stock exchanges
— sale of assets  listening to guest speakers talk about sources of business
— share issue finance
— bank loan
— commercial mortgage
— debt factoring
— debentures
— grants
— venture capital
— crowd funding
 determining factors for selecting sources of finance, for
example:
— finance costs (interest rates)
— payback term

Cash budgeting Candidates should be aware of:  interpreting cash budgets and identifying any cash flow or
profitability problems
 the purpose of budgeting as an aid to decision making  justifying suitable solutions to problems identified
 the interpretation and analysis of cash budgets  using spreadsheets to interpret cash budgets
 the solutions to cash flow problems

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Management of finance

Topic Further advice and guidance about skills, knowledge and Suggested experiences and activities for candidates
understanding
Financial Candidates should be aware of:  using Income Statements and Statements of Financial
Statements position to illustrate profits, losses and net worth
 the purpose, main elements and interpretation of an  using spreadsheets to interpret Income Statements and
Income Statement Statements of Financial Position
 the purpose, main elements and interpretation of the
Statement of Financial Position
 who uses financial information and what they use it for

Ratios Candidates should be aware of:  using Income and Statements of Financial Position to
illustrate how to calculate and interpret profitability,
 the purpose of ratio analysis liquidity and efficiency ratios
 the limitations of ratio analysis  using spreadsheets to help prepare and interpret ratios
 the interpretation of profitability, liquidity and efficiency
ratios to make evaluative comments on business
performance

Ratios include:

 Gross Profit Percentage

 Profit for the Year Percentage
 Current Ratio
 Acid-test Ratio
 Return on Equity Employed Percentage
 Rate of Inventory Turnover

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Management of finance

Topic Further advice and guidance about skills, knowledge and Suggested experiences and activities for candidates
understanding
Technology Candidates should be aware of:  using current businesses as case studies to illustrate how
technology is used to manage finance
 how technology can be used in financial management, for  using appropriate technological and media resources (for
example: example technology business stories) to keep up to date
— spreadsheets with contemporary examples of technology being used by
— internet banking business and its impact on business activity
— BACS payments
— Sage software
— EFTPOS (for example, debit card, credit card,
contactless payment, and Apple Pay)
 the costs and benefits of using technology when
managing finance

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Preparing for course assessment
The course assessment focuses on breadth, challenge and application. Candidates should
apply the skills they have learned during the course.

In preparation, you should provide opportunities for candidates to practise activities similar to
those expected in the course assessment. For example, you could develop tasks and
questions similar to those in the specimen and past papers.

Developing skills for learning, skills for life and skills

for work
You should identify opportunities throughout the course for candidates to develop skills for
learning, skills for life and skills for work.

Candidates should be aware of the skills they are developing and you can provide advice on
opportunities to practise and improve them.

SQA does not formally assess skills for learning, skills for life and skills for work.

There may also be opportunities to develop additional skills depending on approaches being
used to deliver the course in each centre. This is for individual teachers and lecturers to
manage.

Skill How it is developed

Literacy  creating structured responses to questions
 watching news updates
 reading newspapers
 looking at media
 communicating when working in groups, during discussions, question
and answer sessions, and through presentations
 carrying out mini investigations
 carrying out self and/or peer evaluation
 listening to business radio broadcasts or podcasts
 listening to guest speakers
 attending lectures
 presenting findings from research in a structured format to convey
ideas, thoughts and information
Numeracy  carrying out calculations, for example when completing cash budgets,
financial records and calculating ratios
 gathering and interpreting numerical information from a range of
sources and presenting it in a table, graph or diagram interpreting
and extracting information from tables, charts, graphs or diagrams to
help make informed decisions

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 Skill How it is developed
Employability,  investigating how commercial businesses work, particularly when
enterprise and looking at working practices, business structures and customer
citizenship satisfaction
 encouraging autonomy and initiative through personal research
 accessing the world of work, for example exploring career
opportunities
 improving ICT skills for a technology-driven society
 working with others
 using initiative and innovation, and displaying creativity, flexibility and
resourcefulness, for example when developing new and enhanced
products and working in groups
 meeting deadlines, being proactive in roles and being part of a team
Thinking skills  using business vocabulary in the correct setting
 using case studies and scenarios
 setting concepts using real examples
 completing personal research and team working
 sharing information and explaining its importance
 using information to solve problems
 planning, organising and completing tasks

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Administrative information

Published: May 2018 (version 2.0)

History of changes

Version Description of change Date

2.0 Course support notes added as appendix. May 2018

Note: you are advised to check SQA’s website to ensure you are using the most up-to-date
version of this document.

© Scottish Qualifications Authority 2013, 2018

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