9771 Business and Management Teacher Guide v1

Teacher Guide
Cambridge Pre-U
Business and Management
9771
For examination from 2019
In order to help us develop the highest quality Curriculum Support resources, we are undertaking a
continuous programme of review; not only to measure the success of our resources but also to
highlight areas for improvement and to identify new development needs.
We invite you to complete our survey by visiting the website below. Your comments on the quality and
relevance of Cambridge Curriculum Support resources are very important to us.
www.surveymonkey.co.uk/r/GL6ZNJB
Do you want to become a Cambridge consultant and help us develop support materials?
Please follow the link below to register your interest.
www.cie.org.uk/cambridge-for/teachers/teacherconsultants/
Cambridge International Examinations retains the copyright on all its publications. Registered Centres are
permitted to copy material from this booklet for their own internal use. However, we cannot give permission
to Centres to photocopy any material that is acknowledged to a third party even for internal use within a
Centre.
© Cambridge International Examinations 2017

Version 1
Updated 11. 01. 17
Contents
Introduction .......................................................................................................................... 2
Why choose the Cambridge Pre-U Business and Management?
Teacher support
Section 1: Resources guide ................................................................................................. 3

1: The business environment
2: Marketing
3: Accounts and finance
4: Operations and project management
5: People in organisations
Section 2: Personal Investigation ....................................................................................... 48

Introduction
The proposal
The research and referencing
The writing process
Personal Investigation administration and guidelines
Personal Investigation checklist
Section 3: Additional assistance to teachers...................................................................... 54

Real world business examples
Suggested resources
Teaching a new topic: lesson structure
Ratio formulas
Levels of response trigger words
Resource list
Introduction
Introduction
This guide offers useful supplementary material to the syllabus in the form of ideas for teaching and course
planning.
Section 1: A resources guide listing teaching topics against their learning objectives and suggested
resources
Section 2: Advice and guidance on the planning, delivery and management of the Personal Investigation
component
Section 3: Suggestions on how to integrate real work business examples into your teaching.
Why choose the Cambridge Pre-U Business and Management?

Built on best practice, the Cambridge Pre-U Business and Management qualification uses a variety of
assessment types such as multiple-choice questions, extended essays and a personal investigation to test
the full range of skills required by the syllabus. This approach to assessment provides learners with the best
opportunity to achieve the full range of marks available to them. In addition, the examinations are designed
to alleviate time-pressure so that candidates have the chance to produce their best work.
The stimulating and pertinent content of the syllabus has been reviewed by a number of universities and
professional bodies.
The focus on real businesses is a key theme throughout the syllabus. Section 3 on Paper 1 requires
candidates to write an extended essay using real world business examples to support their ideas. Paper 2
will usually feature a company listed on the FTSE All-Share Index.
The linear nature of the course means teachers can structure delivery to best suit the needs and abilities of
their learners.
While the course does include stretch and challenge, the range of marks available mean that less able
candidates will not be disadvantaged by taking this course as compared to a similar A Level. Exam grading
is benchmarked against A Levels to ensure fairness and parity.
Teacher support
Cambridge provide a secure online support site for teachers at https://teachers.cie.org.uk. Logins for this
site can be obtained from your Examination Officer. Here you will find a range of support resources
including:
 syllabuses  Teacher Guide
 notification of any specific changes to syllabuses  Schemes of Work
 past papers  Example Candidate Responses
 specimen papers  resource list
 examiner reports
 grade thresholds
 community resources offering teaching advice and documents posted by teachers themselves
2 Cambridge Pre-U Business and Management (9771)

Section 1: Resources guide
The total guided learning hours (GLH) for the syllabus is 380 hours per Principal Subject, but this is for
guidance only. This includes approximately 40 guided learning hours for skills development and preparation
for the Personal Investigation. The linear nature of the course means that a large degree of flexibility exists
when planning learning.
This list of resources in this section of the Teacher Guide is flexible to the individual user and is intended to
act as a guide only.
The resources referred to in this table include:
9771 past examination papers available at

https://teachers.cie.org.uk
Cambridge International AS and A Level Business: Coursebook with CD-ROM, P Stimpson and
A Farquharson (Cambridge University Press 2014)
Business Studies Review published by Philip Allan

www.philipallan.co.uk/
TV Choice Educational Films

www.tvchoice.uk.com
Times 100 Business Case Studies

http://businesscasestudies.co.uk/#axzz3ZXxQ3q4Z
Business Review Magazine

www.hoddereducation.co.uk/magazines
Cambridge Pre-U Business and Management (9771) 3

4

1: The business environment (GLH: 60–70)
1.1 Enterprise (GLH: 2–4)
Entrepreneurship and business start-ups Suggested resources
 Role and motives of entrepreneurs. Business Studies Review published by Philip Allan
Vol.20 no.1 p. 32 Sept 13 Entrepreneurs
Vol.19 no.1 p. 8 Sept 12 It’s not all about the money
Cambridge Pre-U Business and Management (9771)
 Practicalities of start-ups and government support: www.tvchoice.uk.com
– entrepreneurs as innovators, leaders, wealth creators  92 The Internet Business
– government initiatives to promote new businesses  93 The Tea Room
– the realities of setting up a business, from business plan onwards  94 The Fitness Business
– the key challenges faced by start-ups, and why many fail Business Studies Review published by Philip Allan
– franchising as a method of reducing risk.  Vol.20 no.1 p. 8 Sept 13 Buying a McDonald’s franchise
 Vol.19 no.2 p. 14 Nov 12 Business start-up

1.2 Business and the economy (GLH: 18–22)
The market and competition Suggested resources
 The impact of competition, price and non-price competition, anti-competitive 9771 past examination papers:
behaviour and legal restrictions:
 2014 Paper 1 Q18
– the need for innovation, possibly lowering prices, efficiency, customer service, improved
quality  2011 Paper 1 Q4
–
predatory pricing, cartels, collusion, market sharing, price fixing  Specimen Paper 1 Q13
– regulation by the Office of Fair Trading and the Competition Commission. Business Studies Review published by Philip Allan
 Vol.20 no.2 p. 10 Competitiveness
 Supply and demand: 9771 past examination papers:
– the determinants of demand: price, disposable income, advertising, population changes, 2012 Paper 1 Q2
interest rates, tastes, price of substitutes and complements, availability of credit
2011 Paper 2 Q4
– the determinants of supply: number of firms, technological change, subsidies and
taxation, other factors such as weather, management and business-specific.

5
6

 Competition, globalisation and developing markets in economic regions e.g. southern 9771 past examination papers:
Africa or the European Union (EU), the emergence of India and China (BRICS) as
global economic powers, the growth of the EU as a single market:  2012 Paper 1 Q17
– the increasing integration of the world market for goods and services and further  2011 Paper 2 Q26
integration of world capital markets, the increasing power of multinationals, increased
price competition, globalisation and structural change within economies, the increased www.tvchoice.uk.com
importance of international trade
 52 Nokia Moves to Romania
– the effects of globalisation on businesses, competition, increased economies of scale,
location of the business, mergers and joint ventures, currency movements, pros and

cons of globalisation
 Vol.19 no.4 p. 5 April 13 Diageo: doing business in
– the Chinese and Indian economies, the EU as a single economy, the implication of their emerging markets
growth for the UK including enlargement of labour markets.
 Vol.19 no.4 p. 31 April 13 What next for China.
The business cycle Suggested resources
 Causes, phases and implications for businesses: 9771 past examination papers:
– the causes, which could include external shocks such as oil price spikes and  2014 Paper 1 Q19
inappropriate government policies
 2013 Paper 1 Q16
– phases of the business cycle: boom, recession, slump, recovery and long-run trend
 2013 Paper 2 Q3
– implications for businesses such as potential increased price sensitivity in a recession.
 2011 Paper 1 Q26
Taxation Suggested resources
 Types of taxation, direct and indirect, and their impact on consumers and businesses: 9771 past examination papers:
– types of taxes such as Value Added Tax (VAT), corporate or income tax, business rates,  2014 Paper 1 Q13
National Insurance (NI)
 2011 Paper 1 Q5
– distinction between direct tax, such as income tax, and indirect tax, such as VAT
– impact of taxation on businesses may include potentially higher selling prices, increased
costs and falling demand. Impact on consumers may mean falling disposable incomes,
changing purchasing patterns
– impact on business resulting from changes in the level and pattern of tax revenue and
expenditure by the Government.
Interest rates Suggested resources
 Impact on businesses, the currency, investment decisions, consumers and demand, 9771 past examination papers:
foundation knowledge of interest rate decisions:
 2012 Paper 1 Q18
– impact of rising interest rates could include some consumers facing falling incomes,
increased saving and reduced spending, trade payables will want faster payment and  2012 Paper 2 Q2
trade receivables will want to delay payment, inventory may fall in line with the increased
opportunity cost, the currency may appreciate  Specimen Paper 2 Q3
– basic understanding of the role of the Monetary Policy Committee of the Bank of England
and its independence.

7
8

Exchange rates Suggested resources
 Appreciation and depreciation and its impact on businesses, imports and exports: 9771 past examination papers:
– factors influencing the exchange rate such as interest rate movements  2013 Paper 1 Q4
– impact of appreciation on business such as increased difficulty of exporting and reduced  2011 Paper 1 Q17
costs of imported components, impact of depreciation.
 2011 Paper 2 Q3

Specimen Paper 1 Q5
 Vol.20 no.2 p. 30 Nov 13 Currency wars
Unemployment Suggested resources
 Types and impact on businesses: 9771 past examination paper:
– types of unemployment: structural and cyclical (demand deficient), frictional, seasonal  2011 Paper 1 Q28
– impact on business such as reduced demand for goods and services, easier to recruit
high calibre staff.
Inflation Suggested resources
 Measurement, causes and impact, deflation, Consumer Price Index (CPI), cost push 9771 past examination paper:
and demand pull:
 Specimen Paper 1 Q20
– basket of goods as a weighted index and the CPI
– Retail Price Index (RPI)
– inflation transmission through costs and/or demand

– impact of deflation on businesses and the general economy such as seen in Japan
– impact of inflation on businesses such as difficulty with planning, competitiveness

overseas, wage-price spiral
– impact on real incomes and level of real debts.
1.3 Objectives (GLH: 4–6)
Government macro-economic objectives Suggested resources
 Low inflation, sustained trend growth and low unemployment:
– the Government’s 2.0% (1–3%) target for CPI inflation
– objective to maintain trend economic growth of 2.5%
– the desire to keep unemployment low
– impact of these government objectives on policy, the business.

9
10

Types of business objective Suggested resources
 Tactical, strategic and corporate: 9771 past examination papers:
– broad time periods involved and the nature of these objectives  2013 Paper 1 Q22
– examples of business objectives. Cambridge International AS and A Level Business:

Coursebook with CD-ROM, P Stimpson and A Farquharson
(Cambridge University Press 2014) Multiple-choice question
and mind map 4
Uses and problems of objectives Suggested resources
 How objectives can help or hinder businesses and what makes a good objective Cambridge International AS and A Level Business:
(SMART – specific, measurable, attainable, relevant and time-bound): Coursebook with CD-ROM, P Stimpson and A Farquharson
(Cambridge University Press 2014)
– goal setting, motivational, review tool
– problems may arise over suitable objectives and/or what is achievable, who sets the
objectives and the consultation procedure.
1.4 Stakeholders (GLH: 4–6)
Stakeholders in a business Suggested resources
 Owners, customers, managers, shareholders, pressure groups, suppliers, employees 9771 past examination papers:
and community:
 2011 Paper 2 Q2
– who are the key stakeholders in a particular business
 Specimen Paper 2 Q1 (d)
– which stakeholders have any real control over business actions.
Cambridge International AS and A Level Business:
(Cambridge University Press 2014) Multiple-choice and mind
map 5
Stakeholder objectives Suggested resources
 The variety of objectives that stakeholders have and their differing priorities:
– different stakeholders will have different priorities such as employees maximising wages
and owners maximising profits, corporate social responsibility.
1.5 Classification of business (GLH: 9–11)

Legal structure Suggested resources
 Sole trader, partnership, private limited company, public limited company: Cambridge International AS and A Level Business:
– knowledge of the key characteristics of the legal structures and the necessary (Cambridge University Press 2014) multiple-choice and mind
documents they require. map 2
Sector Suggested resources
 Public and private, differing objectives and ownership: Cambridge International AS and A Level Business:
– ownership such as individuals, franchises or government, and objectives such as profit (Cambridge University Press 2014)
and/or service.
Size Suggested resources
 How size can be measured and how businesses can expand, the reasons for and Cambridge International AS and A Level Business:
methods of growth and the benefits of small firms: Coursebook with CD-ROM, P Stimpson and A Farquharson
(Cambridge University Press 2014) multiple-choice question
– typical measures of size include turnover, number of employees and mind map 3
– methods of expansion include organic growth, mergers and acquisitions/takeovers

– reasons for growth include economies of scale, market power, prevention of hostile bids,
survival
– small firms are still important and survive because government policy has promoted their
establishment and personal service is valued.
11
12

Economic sectors Suggested resources
 Primary, secondary and tertiary, trends within the sectors, emergence of the 9771 past examination paper:
service/knowledge economy:
 2013 Paper 1 Q7
– sectors of the economy and typical businesses within sectors such as farming within the
primary sector
– trends in the sectors such as the growth of the service sectors and the implications and
reasons for this.
1.6 Business opportunities and constraints (GLH: 6–8)
Social Suggested resources
 Demographic changes, such as ageing population and falling birth rates, impact on 9771 past examination paper:
businesses:
 2012 Paper 1 Q25
– knowledge of changes in the size and structure of the population
– impact on businesses such as the growth of Saga to cater for an ageing population
– other social changes such as the growth of single person households, and changes in
the pattern of employment such as the participation of women in the workforce, the
increasing role of part time work.
Legal Suggested resources
This topic is also assessed in the relevant functional areas. 9771 past examination papers:
 Legislation and its impact on business, basic knowledge of key legislation facing  2013 Paper 1 Q24
businesses such as the Data Protection Act, Employment Equality (Age) Regulations
and Disability Discrimination Act:  2012 Paper 1 Q24
– knowledge of purpose and impact on businesses of legislation such as potentially  Specimen Paper 1 Q24
increasing costs in the short run but decreasing costs in the long run
www.tvchoice.uk.com
– examples of legislation impacting upon functional areas such as the minimum wage and
people management  106 Data Protection Case Study
– protecting business ideas/patents, trademarks and copyright. Business Studies Review published by Philip Allan
 Vol.19 no. 3 p. 29 Feb 13 Health and safety
Technology Suggested resources
 Benefits and threats of technology, new technologies and their impact on business 9771 past examination paper:
and customer behaviour:
 2014 Paper 1 Q26
– technologies such as computerised inventory control – electronic point of sale (EPOS),
computer aided manufacturing (CAM), computer aided design (CAD), robotics, Business Studies Review published by Philip Allan
automation
 Vol.19 no.2 p. 6 Nov 12 Setting up online
– the use of information and communications technology, e-commerce.

13
14

Environmental Suggested resources
 External costs, environmental policy and audits, the growth of the ‘green pound’ and 9771 past examination paper:
the response of business:
 2014 Paper 1 Q25
– examples of external costs such as congestion and pollution
– business response to environmental concerns such as reduced packaging
– the growth of consumer interest in ‘green’ goods and services such as organic products,
and the response of business to this demand
– sustainability and business decisions.
Business ethics Suggested resources
 Possible conflicts and resolutions, ethical code, ethical investments, Fair Trade: Cambridge International AS and A Level Business:
– the increasing role of ethics in customer behaviour, the impact on businesses of this shift (Cambridge University Press 2014), multiple-choice
questions and mind map 6
– other social changes such as the growth of single person households and changes in the
pattern of employment such as the participation of women in the workforce, increasing
role of part time work.
1.7 Planning (GLH: 4–6)
Suggested resources
 Strategic planning, important decisions and the long term effects: 9771 past examination paper:
– communication of plans through mission statements and corporate plans.  2012 Paper 2 Q4
 Contingency plans, preparing for unlikely or unwanted scenarios such as a severe 9771 past examination papers:
recession or a global flu epidemic:
 2013 Paper 1 Q26
– preparing for the unexpected – role, purpose and limitations of contingency plans.
 2011 Paper 1 Q27
 Porter’s Five Forces model – business behaviour and success is affected by five key Business Studies Review published by Philip Allan
factors: buyer power, supplier power, entry threat, substitute threat and rivalry:
 Vol.18 no.3 p. 22 Feb 12 Porter’s generic strategies
– knowledge of Porter’s model and its uses and limitations including Porter’s generic
strategies
– risk assessment, risk identification, risk management; trading, financial and transactional
risks.
1.8 Corporate issues (GLH: 2–4)
Suggested resources
 Corporate culture – the values, attitudes and beliefs associated with a business: 9771 past examination papers:
– corporate culture influences strategies such as the decision-making process and  2014 Paper 1 Q28
management style
 2013 Paper 2 Q2
– corporate culture’s importance in terms of its impact on motivation and consumer
perception www.tvchoice.uk.com
– changing corporate culture takes time, commitment and consultation.  73 Organisational Cultures

 103 The Culture of a Workplace
 Vol.19 no.4 p. 19 Culture

15
16

 Corporate governance, who has power in practice, the role of shareholders, 9771 past examination papers:
institutional investors and managers:
 2011 Paper 1 Q10
– the control of boardrooms in theory and practice, key players such as institutional
investors, various shareholder groups, company directors  Specimen Paper 2 Q4
– corporate social responsibility (CSR) – a critical understanding of CSR. Cambridge International AS and A Level Business:
(Cambridge University Press 2014), multiple-choice
questions and mind map 34–37
1.9 Equities (GLH: 4–6)
Suggested resources
 The stock market, impact of share price movements on a business, determinants of 9771 past examination papers:
share prices, private equity:
 2013 Paper 2 Q4
– share price movements can influence areas such as bonuses and the likelihood of being
a takeover target  2012 Paper 2 Q3
– share prices are affected by investor sentiment, company accounts, prospects,  Specimen Paper 2 Q1 (d)
valuations and external stocks.
2: Marketing (GLH: 65–75)

2.1 Marketing and objectives (GLH: 14–16)
Suggested resources
 Definition of marketing, marketing objectives: Cambridge International AS and A Level Business:

– what is meant by marketing, review suitable marketing objectives. (Cambridge University Press 2014)
 Customer relationship management (CRM) 9771 past examination paper:
– the implications for business and consumers of loyalty cards, personalised marketing,  2014 Paper 1 Q1
consumer databases
– identification and treatment of the customers who are most profitable to a business.
 Market and product orientation: www.tvchoice.uk.com
– distinction between market and product orientation  14 Product v Market Orientated

– examples and suitability of both approaches.
 Market segmentation, reasons for and examples:
– methods of market segmentation, reasons for, relative merits and problems of market
segmentation.
 Market growth and share, calculation: 9771 past examination papers:
– definition of market share and growth, calculation using appropriate data, interpreting  2014 Paper 1 Q11
these data and results of calculations.
 2011 Paper 1 Q15
 Niche and mass marketing, examples in practice and relative merits: 9771 past examination paper:
– distinction between niche and mass marketing, ability to identify niche marketing such as  Specimen Paper 1 Q26
Tie Rack, relative merits of both approaches
 Vol.18 p. 28 Feb 12 Niche marketing
 Market positioning and re-positioning, unique selling point (USP) Cambridge International AS and A Level Business:

Coursebook with CD-ROM, multiple-choice question and
– reasons for market positioning and re-positioning mind map 14
– the importance of the unique selling point and product differentiation.

17
18

2.2 Market research (GLH: 12–16)
Types of research Suggested resources
 Methods of market research, primary and secondary: Cambridge International AS and A Level Business:
– reasons for and types of research, the usefulness of techniques. (Cambridge University Press 2014)
Sampling Suggested resources

 Sampling methods and their relative merits and problems, pros and cons of sampling Cambridge International AS and A Level Business:
in general: Coursebook with CD-ROM, P Stimpson and A Farquharson
– suitable sampling methods such as convenience, quota, stratified, cluster, random, multi-
stage
– reasons for sampling and the potential problems of sampling discrepancy and human
bias.
 Use of normal distribution and calculation of standard deviation, significance of 9771 past examination papers:
results, problems and benefits of using normal distribution analysis:
 2013 Paper 1 Q5
– definition of normal distribution and interpretation of the normal distribution curve, the
uses of the normal distribution for businesses, the limitations of the normal distribution,  2011 Paper 1 Q20
calculation and interpretation of standard deviation results. Using confidence level tables.
Forecasting Suggested resources
 Quantitative and qualitative methods of forecasting, such as the Delphi technique and 9771 past examination papers:
time series analysis moving averages, trend, variation, plotting, line of best fit and
predicting future values/ extrapolation:  2014 Paper 1 Q21 (a) and (b)
– qualitative techniques such as the Delphi method, historical analogy, market surveys,  Specimen Paper 1 Q21
personal insight and panel consensus
www.tvchoice.uk.com
– calculation and interpretation of time series analysis data, construction of 3, 4 and 12
period moving averages, trend, lines of best fit, variation and future values  35 Forecasting
– relative merits of forecasting methods in a business context.

2.3 Elasticity (GLH: 6–8)
Price elasticity of demand (PED) Suggested resources
 Definition, diagrams, calculation, determination of optimal pricing policy (total 9771 past examination papers:
revenue changes), general uses and problems of the method, factors affecting PED,
how PED is estimated:  2013 Paper 1 Q15
– full use and limitations of PED for a business, definition, calculation and interpretation of  2011 Paper 1 Q11
data gained from relevant calculations.
 Vol.20 no.4 p. 8 April 2014 Football ticket prices
Income elasticity of demand Suggested resources
 Definition, calculation and interpretation of income elasticity of demand. 9771 past examination paper:
 2014 Paper 1 Q12
Advertising elasticity of demand Suggested resources
 Definition, calculation and interpretation of advertising elasticity of demand.

19
20

2.4 The marketing mix (GLH: 14–16)
Price Suggested resources
 Pricing strategies based on cost, such as contribution (also see section 3.1 ‘Costs, 9771 past examination papers:
revenue, contribution and profit’), including special order decisions,
customers/market such as price discrimination, and competition based such as  2011 Paper 1 Q3
destroyer pricing:
– identification, calculation and discussion of pricing strategies based on cost, customers
and competition www.tvchoice.uk.com
– cost-based pricing such as contribution and mark-up, absorption, target based  26 Contribution
– market-based pricing such as penetration, skimming, loss leaders, price discrimination,  27 Cash and Contribution
discounts and sales, psychological
– competition-based pricing such as going rate, destroyer.
 Vol.18 no.2 p. 20 Nov 11 Psychological pricing
Place Suggested resources
 Channels of distribution, e-commerce, intermediaries, wholesalers, agents, choosing www.tvchoice.uk.com

a distribution channel:
 12 Place
– location, types of distribution channel and their appropriateness, physical distribution.
Product Suggested resources
 The product life cycle, the product mix, extension strategies, the Boston Matrix and 9771 past examination papers:
new product development:
 2013 Paper 1 Q20
– the product life cycle and its stages from development to decline
 2011 Paper 1 Q19
– the product mix/portfolio and potential extension methods such as finding new markets
for existing products.  Specimen Paper 1 Q2
www.tvchoice.uk.com
 11 Product
 Vol.18 no.4 p. 12 April 12 Tata’s product portfolio
Promotion Suggested resources
 Above- and below-the-line and constraints on advertising: 9771 past examination papers:
– methods of above and below-the-line promotion and their merits  2013 Paper 1 Q14 and 25
– regulation of advertising such as the Advertising Standards Authority (ASA).  Specimen Paper 1 Q8
www.tvchoice.uk.com
 13 promotion
 AIDA (awareness, interest, desire, action), from awareness to action, reviewing Cambridge International AS and A Level Business:
advertising, the uses and problems of the model: Coursebook with CD-ROM, P Stimpson and A Farquharson

– usefulness of the AIDA model.
 DAGMAR (Defining Advertising Goals for Measured Advertising Results), assessing 9771 past examination paper:
the effectiveness of advertising, from unawareness to action:
 2014 Paper 1 Q2
– relative merits of the DAGMAR model using the communication spectrum of
unawareness, awareness, comprehension, conviction, action.
21
22

2.5 The marketing plan (GLH: 2–4)
Suggested resources
 The elements of the marketing plan such as the marketing audit, SWOT (strengths, 9771 past examination paper:
weaknesses, opportunities, threats):
 2014 Paper 1 Q14
– stages of the plan from the marketing audit, marketing budget objectives, strategy,
review, the use of SWOT analysis. Cambridge International AS and A Level Business:
mind map 18
2.6 Marketing law (GLH: 1–3)
Suggested resources
 Marketing and the law such as the Sale of Goods Act and the Trade Descriptions Act: Cambridge International AS and A Level Business:
– how legislation relating to marketing impacts upon a business. (Cambridge University Press 2014)
2.7 International marketing (GLH: 2–4)
Suggested resources
 International marketing, the pros and cons of selling in overseas markets whether it Cambridge International AS and A Level Business:
be the EU or non-EU: Coursebook with CD-ROM, P Stimpson and A Farquharson
– why overseas markets can be different, methods of entering overseas markets such as
joint ventures, motives for selling in overseas markets such as increasing profits. Articles
2.8 Marketing strategy (GLH: 4–6)
Suggested resources
 The Ansoff Matrix, reviewing risk with products and markets, from market penetration 9771 past examination papers:
to diversification:
– the usefulness of the Ansoff Matrix when businesses are considering growth strategies.

Vol.18 no.3 p. 30 Feb 12 Diversification
 Offensive marketing strategies, examples of and reasons for. Online research
 Marketing myopia, the danger of a short-sighted approach, recognising and changing 9771 past examination paper:
to consumer wants:
 2011 Paper 1 Q2
– consumer wishes should be at the core of decision-making and businesses must
carefully monitor consumer trends.

23
24

3: Accounts and finance (GLH: 60–70)
3.1 Costs, revenue contribution and profit (GLH: 4–6)
Costs Suggested resources
 Variable cost, average cost, fixed cost, total cost, marginal cost, direct cost, indirect 9771 past examination papers:
cost, definition and examples:
 2014 Paper 1 Q4
– identification and explanation of different types of costs, use of cost data in appropriate
calculations.  2011 Paper 1 Q21
 Specimen Paper 1 Q23 and 25
 Specimen Paper 2 Q1 (d)

mind map 28
www.tvchoice.uk.com
 20 Costs
 26 Contribution and decision making
 27 cash and contribution
Revenue Suggested resources
 Total revenue, marginal revenue: 9771 past examination paper:
– calculation and interpretation of revenue data in a business context.  Specimen Paper 1 Q11
Contribution and profit Suggested resources
 Calculation of contribution and profit; distinction between the two. 9771 past examination papers:
 2013 Paper 1 Q8 and 9
 2012 Paper 1 Q4

www.tvchoice.uk.com
 19 Difference between cash and profit
 22 What is profit
 23 How to use profits
 Cost and profit centres, their purpose and usefulness in organisations.
3.2 Budgets (GLH: 4–6)
Types of budget Suggested resources
 Historical and zero-based budgets: Cambridge International AS and A Level Business:

– the various types of budgets and their relative merits. mind map 30
www.tvchoice.uk.com
 40–43 Budgets

 Vol.20 no.2 p. 26 Nov 13 A guide to budgeting

25
26

Purpose of budgets Suggested resources
 Problems of setting budgets, uses of budgets: Cambridge International AS and A Level Business:
– the purpose of budgeting as an aid to decision-making and control, problems of setting (Cambridge University Press 2014)
budgets.
Variances Suggested resources
 Calculation and meaning of favourable and adverse variances:

– calculation and interpretation of variances, their usefulness in assessing business

performance.
3.3 Sources of finance (GLH: 6–8)
Types of finance Suggested resources
 Internal versus external sources, external long term sources and short term sources: 9771 past examination paper:
– internal sources of finance such as retained profit and asset sales  2014 Paper 1 Q24 and 27
– long term sources such as shares, mortgages, venture capital Cambridge International AS and A Level Business:
– short term sources such as loans repayable within 12 months, debt factoring mind map 26
– micro-finance as an alternative source of funds. www.tvchoice.uk.com
 37–39 Sources of Finance
 Vol.20 no.1 p. 18 Sept 13 New sources of finance-crowd

funding
Determinants of source of funds Suggested resources
 Interest rates, gearing, size of business: 9771 past examination paper:
– key determinants of the choice of funds for a given business.  Specimen Paper 1 Q9
3.4 Investment decisions (GLH: 8–10)

Methods of investment appraisal Suggested resources
 Payback Period (PBP) and Average Rate of Return (ARR), Discounted Cash Flow 9771 past examination papers:
(DCF), Net Present Value (NPV), Internal Rate of Return (IRR):
 2014 Paper 1 Q10
– calculation, interpretation and evaluation of these investment appraisal techniques.
 2013 Paper 1 Q21
 2012 Paper 1 Q21
 2011 Paper 2 Q1 (a)–(c)
 2011 Paper 1 Q9

mind map 33
www.tvchoice.uk.com
 24 What is Investment Appraisal?

 25 Investment Decisions at ACME Whistles
27
28

Factors influencing investment decisions Suggested resources
 Motives, business confidence, interest rates: Cambridge International AS and A Level Business:
– the range of factors that influence investment decisions. (Cambridge University Press 2014)
3.5 Cash flow (GLH: 4–6)

Suggested resources
 Methods of improving cash flow, cash flow forecasts: 9771 past examination papers:
– the importance of cash flow and ways of improving cash flow, calculation and  2014 Paper 1 Q5
interpretation of cash flow forecasts.
 2012 Paper 1 Q11

mind map 27
www.tvchoice.uk.com
 16 Cash Flow Gamble
 17 Why Cash is King
 18 Working Capital
 43 Budget and Cash Flow Budgeting

3.6 Break-even analysis (GLH: 5–7)
Suggested resources
 Break-even analysis, margin of safety, calculation of the break-even output: 9771 past examination papers:
– calculation and interpretation of break-even data, break-even point, margin of safety,  2014 Paper 1 Q15
profit
 2013 Paper 1 Q11
– evaluation of break-even analysis as a decision-making tool.
 2011 Paper 1 Q13
www.tvchoice.uk.com
 36 Breakeven Analysis
3.7 Accounts (GLH: 18–22)
Suggested resources
 The Balance Sheet and Income Statement, the components of the financial statements Review recent company accounts such as J Sainsbury plc
and their uses and problems:
www.tvchoice.uk.com
– purpose, role and relative merits of the Balance Sheet and Income Statement.
 33 Introducing Accounts
 34 What is Accounting

Coursebook with CD-ROM, multiple-choice question 31
29
30

 Ratio analysis, profitability, activity, liquidity, gearing and shareholder ratios, 9771 past examination papers:
calculation and interpretation of, uses and problems with:
 2013 Paper 1 Q3
– calculation, interpretation and discussion of profitability ratios: Return on Capital
Employed (ROCE), Gross Profit Margin, Net Profit Margin (and commonly used  2013 Paper 2 Q1 (a)–(c)
equivalent terms)
 2012 Paper 1 Q9 and Q10
– activity ratios: Asset Turnover, Inventory Turnover, Debt Collection Period, creditor
payment period  2012 Paper 2 Q1 (a)–(c)
– liquidity ratios: Current Ratio, Acid Test Ratio 

2011 Paper 1 Q12 and Q14
– gearing and interest cover ratios  Specimen Paper 1 Q6 and 15

– shareholder ratios: Dividend Per Share, Dividend Yield, price/earnings, dividend cover,  Specimen Paper 2 Q1 (a)–(d)
earnings per share.
mind map 29 and 32
3.8 Depreciation (GLH: 4–6)
Suggested resources
 Depreciation straight line and declining balance, calculation of, reviewing the book 9771 past examination papers:
value of a non-current (fixed) asset:
 2013 Paper 1 Q13
– calculation, interpretation and discussion of the straight line and declining balance
methods.  2012 Paper 1 Q5
 2011 Paper 1 Q6
www.tvchoice.uk.com
 32 Depreciation
4: Operations and project management (GLH: 55–65)
4.1 Production methods (GLH: 4–6)
Production methods Suggested resources
 Job, batch, flow, cell, lean, just in time (JIT), flexible specialisation: 9771 past examination paper:
– appropriate production methods and their links with inventory, quality, continuous  2013 Paper 1 Q10
improvement, Kanban.

mind map 20 and 24
www.tvchoice.uk.com
 58 Making Watches
4.2 Efficiency (GLH: 2–4)
Efficiency Suggested resources
 Economies and diseconomies of scale, diagrammatic representation, types of 9771 past examination papers:
economies of scale, internal and external sources:
 2013 Paper 2 Q1 (d)
– economies of scale such as managerial, marketing, purchasing, technical, risk bearing,
financial  2013 Paper 1 Q2
– diseconomies of scale and the role of communication and coordination failure  2012 Paper 1 Q12

– distinction between internal and external economies of scale, interpretation and drawing  2011 Paper 1 Q18
of the appropriate scale diagrams.
mind map 21
31
32

4.3 Capacity (GLH: 2–4)
Suggested resources
 Over- and under-capacity utilisation, reasons for, the coping zone: 9771 past examination papers:
– explanation of short-run over- and under-capacity production, implications for a business  2012 Paper 1 Q13
– calculation of capacity utilisation.  Specimen Paper 1 Q12


mind map 23
4.4 Quality (GLH: 8–10)
Suggested resources
 Quality assurance, built-in and inspected quality, total quality management, Kaizen, 9771 past examination papers:
benchmarking, customer service, quality circles:
 2013 Paper 1 Q19
– methods of ensuring quality, understanding quality standards such as benchmarking,
analysis of the distinction between inspection and prevention.  2011 Paper 1 Q25

mind map 24
4.5 Inventory (GLH: 4–6)
Suggested resources
 Types of inventory, inventory control charts, buffer inventory, re-order levels (ROL), 9771 past examination papers:
re-order quantities (ROQ), lead times, vendor rating, stock out:
 2014 Paper 1 Q8 and Q9
– identification of the types of inventory such as components, work in progress and
finished goods, construction and interpretation of inventory control charts, calculation Cambridge International AS and A Level Business:
and discussion of buffer inventory levels, ROL, ROQ, lead times, vendor rating. Coursebook with CD-ROM, multiple-choice question and
mind map 22
www.tvchoice.uk.com
 49 Stock Control
4.6 Managing projects (GLH: 10–12)
Suggested resources
 Project management, critical path analysis (CPA): 9771 past examination papers:
– the integrative nature of project management, calculation, manipulation and  2014 Paper 1 Q8 and Q9
interpretation of CPA, node construction, earliest start time (EST), latest finish time
(LFT), the critical path, total float, free float, dummy activities. Candidates do not need to  2013 Paper 1 Q1
be able to construct a critical path chart.
 2012 Paper 1 Q20
 2011 Paper 1 Q24 (a) and (b)

mind map 25
33
34

 Location of businesses, infrastructure, business parks, industrial inertia, grants and 9771 past examination papers:
subsidies:
 2014 Paper 1 Q23
– factors influencing the location or relocation of a business
– the benefits of business parks, agglomeration, grants and subsidies and their role in the
location of business.  Specimen Paper 1 Q23

mind map 21
4.7 Competitive advantage (GLH: 2–4)
Suggested resources
 Research and development (R & D), its role in keeping a competitive edge, 9771 past examination paper:
in-house and externally sourced:
 2013 Paper 1 Q18
– the benefits of R & D, sources of innovation from within and/or external links such as
university departments.
4.8 Reducing waste (GLH: 4–6)
Suggested resources
 Waste management and control, waste minimisation, benefits and problems of waste 9771 past examination paper:
management and factors influencing waste management:
 2012 Paper 1 Q28
– methods of reducing waste, legal issues, ethical concerns, cost reduction.
4.9 Trends in cost control (GLH: 4–6)
Suggested resources
 Outsourcing, cutting costs and/or better service, examples of and reasons for:
– motives behind outsourcing, reducing costs v. level of service.
 Off-shoring, reasons for and examples: Online research

– off-shoring, relative merits, trends in and business examples.
 Reshoring, reasons for and relative merits. Business Studies Review published by Philip Allan
 Vol.19 no.1 p. 19 Sept 12 Reshoring

35
36

5: People in organisations (GLH: 55–65)
5.1 Motivation (GLH: 10–12)
Monetary and non-monetary motivation Suggested resources
 Monetary methods: www.tvchoice.uk.com
– remuneration methods such as hourly, salary, bonuses, performance related pay (PRP),  66 Remuneration
profit sharing, share ownership, fringe benefits, commission, piece rates, suitability of
payment methods in different business scenarios. Business Studies Review published by Philip Allan:
 Non-monetary methods:  Vol.13 no.3 Remuneration
– non-monetary methods such as delegation, job enrichment, job enlargement, team 9771 past examination papers:
working, empowerment, job rotation.
 2013 Paper 1 Q27
 2011 Paper 1 Q8
www.tvchoice.uk.com
 18 Working Capital
 19 The Difference Between Cash and Profit
 120 Motivation Case Study: Joe’s Leaving Soon
 121 Motivation Case Study: Imran ‘Everything’s Fine’
Times 100
 16 ed CMI p. 41 (c )
Employee participation Suggested resources
 Worker directors, consultative committees, works councils, suggestion boxes: 9771 past examination paper:
– the pros and cons of participative decision-making, merits of methods, link to collective  2011 Paper 1 Q7
bargaining.
www.tvchoice.uk.com
 63 employee participation

37
38

Motivational theory Suggested resources
 Taylor, Maslow, Mayo, Herzberg, McClelland, Vroom, Equity theory: 9771 past examination papers:
– motivational theories, relative merits of individual theories.  2014 Paper 1 Q3 and 22
 The Hackman and Oldham job characteristics model, evaluating job enrichment,  2013 Paper 1 Q6
psychological states and core job dimensions:
 2012 Paper 1 Q14
– understanding of this model, assessment of the model

2011 Paper 1 Q28
www.tvchoice.uk.com
 62 Guide to Motivational Theory
 68 Motivation and Demotivation

(Cambridge University Press 2014), multiple-choice question
and mind map 9
 Vol.13 no.3 Herz
 Vol.12 no.1 motivation or drive
 Vol.12 no.2 motivation and productivity
 Vol.12 no.3 high st motivation
Times 100
 16 ed ARM: motivation p. 17 (c)
 16 ed Kellogg’s p. 65 (c)
5.2 Leadership and management styles (GLH: 4–6)
Styles of management Suggested resources
 Autocratic, paternalistic, democratic, laissez-faire, McGregor’s Theory X and Y, Cambridge International AS and A Level Business:
suitability in different business environments, leadership and facilitation: Coursebook with CD-ROM, multiple-choice question and
mind map 8
– leadership styles, suitability in business scenarios, functions of management.

Vol.12 no.3 Clive WW Management Style
 Vol.12 no.3 McGregor
Times 100
 16 ed: Tesco p. 109 (leadership styles)
www.tvchoice.uk.com
 104 Leadership and Management
 105 Lead and Management in Action
 51 Management Styles
5.3 Management by objective (GLH: 2–4)
Suggested resources
 Drucker and MBO, inflexibility of approach, ideas and strategy from all levels: 9771 past examination papers:

– problems and advantages of MBO.  2013 Paper 1 Q22
 2012 Paper 1 Q7
39
40

5.4 Labour turnover (GLH: 2–4)
Suggested resources
 Impact on the business and determinants, calculation, methods of reducing: 9771 past examination paper:
– calculation and definition of labour turnover, causes, solutions, pros and cons of a high  2011 Paper 1 Q23
rate of labour turnover.

Vol.18 no.2 p. 12 Nov 11 Labour turnover
5.5 Absenteeism (GLH: 2–4)
Styles of management Suggested resources
 Absenteeism, calculation, causes and remedies: 9771 past examination paper:
– calculation and discussion of absenteeism, primary causes, potential solutions, impact  2011 Paper 1 Q16
on a business.
 Vol.12 no.2 Absenteeism

5.6 Human resource management and workforce planning (GLH: 18–22)
Human resource management Suggested resources
 Human resource management 9771 past examination paper:
 Specimen Paper 1

mind map 10 and 11
www.tvchoice.uk.com
 122 Brompton Bikes
 123 ACME Whistles
 59 Human Resources Strategy
 71 Measuring Workforce Performances
 96 Human Resources Objectives and Strategies in Action
 97 Human Resources Objectives and Strategies in Action
 98 Voices from The Human Resources Department

41
42

Recruitment Suggested resources
 Internal and external recruitment, methods of selection: www.tvchoice.uk.com
– job analysis, job evaluation, description, person specification, attracting applicants,  70 Recruitment
curriculum vitae, selection procedures, interviews, intelligence tests, personality tests,
relative merits of internal v. external recruitment, assessing recruitment procedures,  78 How they find a Centor Person
recycling employees – recruiting ex-employees.
 79 The Centor Approach
 Vol.19 no.3 p. 14 Feb 13 Picking the right employees
Training Suggested resources
 Induction, on and off the job training: Business Review Magazine
– the role, mechanics and relative merits of induction training and its link to  Vol.13 no.2
competitiveness, quality and participation, Training Needs Analysis (TNA), training
methods and evaluation, Investor in People (IiP). Times 100
 16ed, ASDA p. 21 (train/dev) (c)
www.tvchoice.uk.com
 80 Training
 Vol.18 no.3 p. 32 Feb 12 Vocational Education and

Training
The workforce plan Suggested resources
 The elements of the workforce plan, assessing the effectiveness of people 9771 past examination paper:
management, impact of flexible working practices:
 2012 Paper 1 Q22
– the elements of the workforce plan, staff audit – analysing current employees, staff
targets – forecasting demand for employees, planning internal and external supply of www.tvchoice.uk.com
staff
 115 Mark’s Big Idea
– implications and benefits of flexible working on employers/employees.
 116 Ruth – Just the Right Person
 117 The Problem with George
 125 Keep Up The Good Work
 60 What is Appraisal?
 61 Appraisal in The Spotlight
 66 Introduction to Remuneration
 67 Appraisal More Voices

43
44

Organisational structure Suggested resources
 Span of control, hierarchy, chain of command, delayering/downsizing, relative merits of 9771 past examination papers:
delegation, centralised and decentralised.
 2013 Paper 1 Q17
 2011 Paper 1 Q8


mind map 12
www.tvchoice.uk.com
 111 Organisation Structures
 124 Changing Structure
 72 Organisational Structures
5.7 Change management (GLH: 4–6)
Suggested resources
 The management of change, internal or external change, managing change and 9771 past examination papers:
resistance to it:
 2012 Paper 1 Q27
– management of change, reasons for change such as competitor actions, why change is
resisted such as preserving current hierarchy, strategies for effective change, change  2011 Paper 1 Q23
culture.
 Vol.18 no.2 p. 2 Nov 11 Managing change
 Vol.18 no.2 p. 26 Nov 11 Leading people through change
Times 100
 T100 corus (c)
 T100 CIMI (c)

45
46

5.8 Employment law and collective bargaining (GLH: 2–4)
Suggested resources
 The main types of employment legislation and the costs and benefits of these for www.tvchoice.uk.com
business.
 86,109 Termination
 Trade unions, collective labour law, union recognition and union density, pros and
cons of union involvement in business activity.  110 Redundancy
 75,112 Contract of Employment
 113 Sex Discrimination,
 69 A Hard Case to Prove
 76 Discrimination at Work
 77 Bullying and Grievance
 114 Take it Further
 64 Introduction to Employment Law
 65 The Employment Tribunal
www.tvchoice.uk.com
 100 Employment Representation and Trade Unions

5.9 Business communication (GLH: 2–4)
Suggested resources
 Purpose of communication: Cambridge International AS and A Level Business:

– purpose, i.e. to ensure the desired response, simple examples to show this. mind map 13
 Barriers to effective communication: Cambridge International AS and A Level Business:

– barriers such as attitudes, perceptions, noise, inappropriate media. (Cambridge University Press 2014)
 Communication methods: Business Review Magazine
– standard methods, strengths and weaknesses of each method, their relative  Vol.8 no.4
appropriateness in different circumstances and for different people.
www.tvchoice.uk.com
 101 Communication Voices
 102 Communication in Action
 74 Group Norms
 84 Communications in Business

47
Section 2: Personal Investigation
Introduction
The guidance in this Teacher Guide should be used alongside the syllabus document. It can be appropriate
to give learners copies of parts of the Teacher Guide.
The Personal Investigation is an individual project by each candidate, which will culminate in an ICT-based
report of up to 3500–4000 words, plus up to six pages of appendices (appendices not included in the word
count). The investigation will be based on recommending solutions to a business problem faced by a small
company. The candidates should ideally have a reliable contact within the business concerned, to facilitate
co-operative working and access to data, which may otherwise be sensitive, for example sales statistics.
The emphasis on independent research and selection of data to suggest solutions to a business problem, as
well as the enforced upper-word limit, will be excellent preparation for the demands of university-level work.
Assessment of the investigations focuses on a variety of skills with 20% of the marks awarded for
communication.
Examples of Personal Investigation titles

The following list supplements the titles seen in the syllabus.
 Should the Nupur Indian restaurant diversify into offering Thai food on its menu?
 How might Clive Miller butcher shop improve staff morale?
 Should Munchies sandwich shop introduce an on-line ordering system?
 How might Rosanne Florist compete with the local supermarkets in the cut-flower market?
 Should the owner of the Identity hair salon close her shop and work from home?
 Should the Bespoke Designs T-shirt manufacturer introduce a computerised stock-control system?
 Should West End Farm open a farm produce shop in order to sell directly to consumers?
 Should the Shoreline campsite invest in some static mobile homes?
 How might the Fitness First sports club increase long term membership?
Proposals for each candidate’s investigation must be submitted to Cambridge for approval and the final
report will be marked externally. A copy of the approved proposal form should ideally be included when the
Personal Investigation is submitted. Teacher input into the choice of business and title will be an essential
part of ensuring that candidates embark on appropriate investigations.
Early on in the planning, Centres will need to decide how they want to teach and facilitate candidates’ work
for this paper. Time spent on preparation will save time and problems later, as well as reinforcing business
knowledge in areas such as market research techniques, methodologies and ethics. Departments may plan
to spend one hour per week for a half term on this preparation. Typically, research methodologies and data
collection skills will need to be practised, as well as familiarisation with business report format, use of
referencing and appendices.
At the outset, a culture of working co-operatively with businesses should be encouraged, rather than
students adopting a purely outside observer role. This could be practised by a group investigation, perhaps
using an in-house business function, such as the Snack Shop, in which all potential research sources are
considered, with the teacher giving guidance on what constitutes good quality data, e.g. facts worth more
than opinion. The practice writing-up exercise could be undertaken individually, using group primary and
secondary data.

Candidates will need guidance on how to use the data collected, to argue for and against a range of possible
solutions. It is important not to make assumptions about the probable outcome from the start, as this will be
obvious to the examiner. A practice exercise will be an excellent time and opportunity to raise the problem of
plagiarism and the necessity of attributing data which has not been solely obtained by the candidate.
Feedback in this instance could be from the teacher and/or peer review. The vital thing is that Centres find a
way for teaching this unit that suits their own needs. As the final marking will be done by Cambridge, it is
important to remember that much of the stress associated with the latter phases of coursework is avoided –
also see guidelines for teachers in terms of supervision and marking of reports.
The proposal
The ultimate success of the Personal Investigation will very much depend on getting the title right in the first
place. Candidates should be encouraged, in the first instance, to identify small/medium-sized businesses
within which they have or can make a personal contact. Candidates should be encouraged to carry out a
well-prepared, in-depth visit to the business, including interviews with key personnel, in order to ascertain the
project potential. Teachers may help in this regard, both with suitable questions to ask and areas to
investigate within a business, but also with contacts, as many Centres have business links with local
businesses. It would be possible for more than one candidate to base their investigation on the same
company but the problem and focus must be different.
Candidates should be prepared to assure and manage confidentiality of data given as this is often an issue.
The final report will only be seen by the candidate, teacher and external marker and sensitive data can be
excluded for any public presentation of the work. A letter from the head teacher on school letter-head may
help in this connection.
The scope of the investigation should be limited by the precise nature of the business problem. Candidates
must be encouraged to focus their work finely on answering the question they have set, narrowing the
options for specific solutions to this specific business. As with the examples given, proposals are best
expressed as a question. This may suggest a number of possible answers or solutions for analysis and
recommendations to be made as to the way forward.
As teachers are not allowed to intervene once the process of writing has begun, the groundwork needs to be
carefully laid. It is recommended that teachers plan a couple of individual tutorial sessions with candidates to
discuss ideas and establish robust research plans. At this early stage, it is vital that the Assessment Criteria
be kept in mind as, for example, a project without written and numerate analysis cannot go beyond a certain
level, so the ability to obtain numerical data in this connection is essential. Candidates should be monitored
regularly, ideally once a week, and encouraged to raise any problems or misunderstanding at an early stage.
It should be clear that the teacher can be approached for advice at this stage.
The research and referencing

The quality and choice of references will add greatly to the depth of analysis and credibility of the final
recommendations. The ability to differentiate between fact and opinion will be vital, although both may be
valuable, for instance sales figures as against the ideas of a business owner as to where the market is
heading. Historical figures may be accurate, but less useful in a dynamic situation than forecasts based on
research. The value of the opinions of commentators in different newspapers and on the internet need to be
discussed, in terms of their possible respective worth and freedom from bias, e.g. Who are they? What may
be the motive behind their comments?
Referencing will be important so that sources of data may be checked if necessary and to enable a critique
of the sources. The Harvard System should be used, so that accurate information about books, journal
articles and electronic articles may be recorded. For example an internet news article must be referenced by
subject, date and precise address, rather than just a website address. Any direct quotes must be placed in
quotation marks and referenced clearly. It will be well worth spending a whole session on referencing,
perhaps with examples of good/not so good practice, as well as encouraging candidates to research
‘Harvard System’ on the internet, where there is plenty of advice and material.
Cambridge Pre-U Business and Management 49

The writing process

For many candidates, the Personal Investigation will be their first experience of a fully independent extended
piece of work, as opposed to (I)GCSE style coursework, in which they may have been carefully guided
throughout. While each section must be planned and may be drafted in rough, the final report is best written
all at once, so that the narrative flows and ideas follow each other logically. Candidates need to be reassured
that selectivity is more important than quantity, where use of data is concerned. A typical report will comprise
the following sections:
 Cover page with title, candidate details and word count
 Copy of the approved proposal form
 Copy of the candidate declaration form
 Introduction and background (to the business and the problem)
 Research objectives
 Research methodology (including justification of methods and sources used)
 Results and analysis (of a range of possible solutions)
 Conclusions and recommendations (the best solution, limitations including critique of research)
 Bibliography
 Appendices (indexed).
It will be important to set internal deadlines to discourage candidates from leaving everything until the last
possible moment. Time must also be allowed for editing, as this can be as time-consuming as the original
writing, given the need for selectivity, succinct writing and tight arguments.
Problems
It is inevitable that some candidates will have problems and, while internal deadlines will help with planning,
further support may be needed for those who are not making sufficient progress. Centres will already have
procedures in place for this type of problem, but the importance of monitoring candidates while they are
completing an extended piece of work cannot be underestimated.
Individual or ‘surgery’ sessions where candidates are not embarrassed in front of others to admit to problems
may be a good solution, but this will depend on circumstances and, once the writing stage has begun, work
must be fully independent.
Lastly, teachers should encourage candidates to develop a report of which they will be proud and make it
clear that this will depend very much on the clarity of thinking, grasping of opportunities, willingness to
discuss and hard work that the candidate does during the whole course of the project. Teachers may plan an
event for parents and school leaders in which candidates present their projects, or publish reports as a
Business Journal, but confidentiality of data must be maintained.

Personal Investigation administration and guidelines

Pre-University context
It is worth remembering that five or six months after candidates present their Cambridge Pre-U Personal
Investigations in Business and Management, they are likely to be writing university assignments employing
the same skills, but without the guidance of a teacher. All the practice they have gained during this time will
help to ensure their success at university essay writing.
Pre-U Diploma context

Not all Centres will be aiming for the Diploma at the outset. However, two of its core elements, the Global
Perspectives course and the Independent Research Report, are intended to be taught as one-year courses
and may be pursued independently of the full Diploma. Both of these Pre-U core elements will help develop
the research and presentation skills so useful for subject-based Personal Investigations in year two of the
subject course.
Syllabus context
In Business and Management, the Personal Investigation is one of three papers and carries a 25 per cent
weighting. Emphasis of assessment is on communication, analysis and evaluation, with 20 per cent of the
total marks awarded for communication. The Investigation offers candidates the opportunity to focus on an
area of the syllabus which interests them and apply these concepts analytically to a ‘live’ business problem.
Plagiarism
Universities and schools have been rightly concerned by the relative ease with which candidates can obtain
material from the internet and other sources which can be used illegitimately in the place of personal thought
and analysis. The following reminders and suggestions are made in the knowledge that most Centres have
their own procedures for dealing with the problem:
 The Cambridge Pre-U course has, by the time candidates are writing the Personal Investigation,
developed individual thinking and individual writing and analytical skills to a high degree. Confident
candidates do not try and pass off someone else’s work as their own.
 Teachers help candidates to formulate unique proposals based on local business contacts.
 The requirement to submit proposed titles to Cambridge for approval may provide an overview and throw
up any duplication of titles at an early stage, even if these originate from different Centres and different
series.
 Final reports are externally marked.
 Most Centres already have a culture in which plagiarism is seriously discouraged, with appropriate
measures to suit their circumstances.
Candidates will need to fill in a Cambridge Pre-U Cover Sheet form which includes a declaration that the
work is their own.
What teachers can do
 Offer detailed early guidance on choice of business, title of investigations, range of research
methodologies and appropriate presentation styles.
 Give early individual guidance on structure and content of different sections of the report and
requirements of assessment criteria.
 Set internal deadlines to help with planning and keep candidates on track.

 Read a maximum of one draft of the report and indicate which parts of the draft they consider to be weak
in terms of the assessment objectives. In the context of the Personal Investigation, this means a
complete version of the final report, which will be very similar to the final submission.
 Draw candidates’ attention to the importance of the declaration they will be required to make about the
work being their own.
 Feel confident, in the light of these measures, about countersigning candidates’ declarations.
What teachers must not do
 Check and correct early versions of individual sections or the completed report.
 Contribute research or writing to the candidate’s report.
Further guidance
In addition to the syllabus and Teacher Guide, Centres should review the examiner reports that are
completed after every entry session.

Personal Investigation checklist

Cambridge Pre-U Business and Management: Personal Investigation 9771–03
Learner name:
Class:
Form:
PI: Title:
Section Due date Completed Teacher comments
1. Title page
2. Contents page
3. Problem in context
4. Research objectives
5. Methodology
6. Results of research
7. Functional review 1
10. Conclusions
11. Recommendations
12. Bibliography
13. Appendix
14. 1st full draft
15. Final submission

Section 3: Additional assistance to teachers
Real world business examples

A key feature of the Cambridge Pre-U in Business and Management is the use of real world examples. This
is formally required on Section 3 of Paper 1 (Business Concepts). Additionally, the case study used in
Paper 2 (Strategic Decisions) will use a real world company.
There are many ways to integrate this aspect of the syllabus into the teaching of this syllabus. There is not
one correct approach but the following is a list of suggestions that could be used.
1. An in-depth study of a few selected businesses. This would involve reviewing how a company dealt with
a large variety of issues from marketing strategies through to waste management and customer service.
2. Regular reviews of real world business examples throughout the course using the context of the currently
taught material. For example, a topic on price sensitivity may lead to a review of UK supermarkets.
3. A hybrid approach of (1) and (2) listed above.
Suggested resources
It is important for learners to be exposed to real world business examples on a regular basis. The weekly
Tutor2U biz quiz is a good starting point. The Times 100 series is also excellent. The Business Review
magazine has some excellent articles on specific companies.
Teaching a new topic: lesson structure

Marketing: Income elasticity of Demand (YED)
What How Why
Re-cap of previous topic (price Q&A Check previous learning.

elasticity of demand)
Introduction to YED Verbal or short video This sets the scene.
Body of knowledge YED Textbooks and other sources A basic requirement. Use more
than one source as this helps
prepare learners for university
study.
Review of YED knowledge Q&A, peer exercise Teacher can check that learners
understand the topic.
Test of YED Past papers Good test of knowledge and gets

learners accustomed to the
requirements of specific
questions.
YED in the real world Articles and/or discussion. For This helps learners prepare for
example, has Aldi increased its the specific demands of Paper 1
market share? Section 3.

Ratio formulas
The following ratio formulas are used by this syllabus.
Profitability
Gross Profit Margin Gross Profit

 100
Revenue
Net Profit Margin Net Profit

 100
Revenue
(Guidance: Net Profit Margin now called Operating Profit
Margin. Candidates should be credited for appropriate use of
either term)
Return on Capital Employed (ROCE) Operating Profit

 100
Capital Employed
(Guidance: learners should know that Capital Employed can
be found using Total Assets - Current Liabilities or
Shareholder Equity + Non-Current Liabilities)
Activity
Asset Turnover Ratio Revenue

Net Assets
Inventory Turnover Ratio Cost of Sales

Inventories
Debt Collection Period Trade Receivables

 365
Revenue
Creditor Payment Period Trade Payables

 365
Cost of Sales
Liquidity
Current Ratio Current Assets

Current Liabilities
Acid Test Ratio Current Assets  Inventories

Current Liabilities
Gearing
Gearing Ratio Non-Current Liabilities

 100
Capital Employed
Interest Cover Ratio Operating Profit

Finance Costs
(Guidance: Finance Costs is also known as Annual Interest
Paid)

Shareholder
Dividend per share Total annual dividends

Total number of issued shares
Dividend yield Dividend per share

 100
Current share price
Price/Earnings Ratio Current share price

Earnings per share
Dividend Cover Ratio Profit for the year

Annual dividends
Earnings per share Profit for the year

Total number of issued shares
Levels of response trigger words

This list is for guidance only.
Level 1 Knowledge (K)

Definitions
Level 2 Application (P)

Use of specific case context
 Use line references (L37)
 Size and scope
 Ownership and objectives
 Customers
 Competitors
 External environment
 Resources (financial, capacity, staffing)
 Use the case data and tables and manipulate the information
 (Application marks are awarded differently on Paper 1 Section 3. Please refer to the mark schemes).

Level 3 Analysis (A)

A balanced view that may use theories/concepts
 Therefore
 Consequently
 Implication(s)
 React
 However
 On the other hand
 Short run
 Long run
 Constraint(s)
 Pros/Cons.
Level 4 Evaluation (E)

A judgement followed by supporting reasoning
 Short run v Long run
 Priority
 Most important
 Most immediate
 Best option
 What may happen
 How success is measured
 Key constraint
 Feasibility
 Chance of success
 Validity of the data
 Supported decision
 It depends on.

Resource list
The textbooks listed below have not been through the Cambridge endorsement process for this syllabus, but
have been found suitable for use with various parts of the syllabus by teachers.
This resource list includes website links providing direct access to internet resources. Cambridge
International Examinations is not responsible for the accuracy or content of information contained in these
websites. The inclusion of a link to an external website should not be understood to be an endorsement of
that website or the site’s owners (or their products/services).
Textbooks
Title Cambridge International Business Studies AS and A Level Business:

Coursebook with CD-ROM
Brief description Essential material for understanding Business Studies principles and techniques.
Activities and case studies based on actual businesses. Includes examination-style
questions.
Author Stimpson, P and Farquharson, A
Publisher Cambridge University Press (2014)
Publisher URL http://education.cambridge.org/uk
Resource URL http://education.cambridge.org/uk/subject/business-and-economics/cambridge-

international-as-and-a-level-business-(third-edition)/cambridge-international-as-and-a-
level-business-coursebook-with-cd-rom-(third-edition)
Title Cambridge International AS and A Level Business Studies: Teacher’s Resource

CD-ROM
Brief description This CD accompanies the textbook and features answers and key activities.

international-as-and-a-level-business-studies-(second-edition)/cambridge-international-
as-and-a-level-business-studies-teachers-resource-cd-rom
Title Cambridge International AS and A Level Business Studies: Revision Guide
Brief description Concise revision guide

international-as-and-a-level-business-studies-(second-edition)/cambridge-international-
as-and-a-level-business-studies-revision-guide

Title Business Studies
Brief description The textbook covers all specifications of all awarding bodies. Selections that focus on
the latest key debates in Business Studies. Comprehensive key terms providing a
dictionary of Business Studies. Diagrams, graphs and charts using the latest material.
Author Hall, D, Jones, R, Raffo, C and Anderton, A
Publisher Causeway Press (2008)
Publisher URL www.pearsonelt.ch/index.aspx
Resource URL www.pearsonelt.ch/1471/9781405892315/Business-Studies.aspx
Title AS and A Level Business Studies through Diagrams
Brief description The expert author has taken the content of the AS and A Level syllabuses and
presented them in a refreshingly clear and concise format. Simple illustrations are used
to present information in a particularly clear and memorable way, and all content is
broken down into short one-page sections.
Author Gillespie, A
Publisher Oxford University Press (2005)
Publisher URL https://global.oup.com/education/?region=uk
Resource URL https://global.oup.com/education/product/9780199150687?region=international
Title An Integrated Approach to Business Studies
Brief description Encompassing all AS and A Level syllabuses, in a clear and consistent style. Provides
guidance on project work, exam practice, study skills and tackling case studies.
Author Jewell, B
Publisher Longman (2000)
Publisher URL www.pearsonelt.ch/index.aspx
Resource URL www.pearsonelt.ch/1449/9780582405424/Default.aspx?artikel=40542LON
Websites
Title Business Review
URL http://magazinesonline.philipallan.co.uk/
Brief description A magazine available in print, plus an online archive, aimed at sixth form learners and
their teachers.
Title Business Review extra resources
URL www.hoddereducation.co.uk/Product-Landing-Pages/Magazines/Magazines-
extras/Business-Review-extras
Brief description Free extra resources on the topics explored in the magazine.

Title The Times 100
URL http://businesscasestudies.co.uk
Brief description Learn business theory online with extensive revision pages, download free case
studies from real world companies and associated lesson materials and worksheets for
teachers and learners.
Title Tutor2u
URL http://tutor2u.net/
Brief description eLearning resources for Economics, Business.
Title Management Today
URL www.managementtoday.co.uk/
Brief description A practical guide to business success. Content includes business news analysis,
management tips and techniques, the latest and best management thinking as well as
the lighter side of business.
Title Financial Times
URL www.ft.com
Brief description The Financial Times is one of the world’s leading business news organisations. It
provides news, comment, data and analysis for the global business community.
Title Biz/ed
URL www.bized.co.uk/
Brief description A combination of teaching and learning resources. Simulations, worksheets,

glossaries, spreadsheets, resource databases, online chat with examiners and a series
of Virtual Worlds providing support for teachers, lecturers and learners.
Title TES Connect
URL www.tes.co.uk
Brief description TES Connect is a digital community with shared teaching resources, forums for
teachers and news.
Title S-cool
URL www.s-cool.co.uk
Brief description A revision site aimed at both A Level and (I)GCSE learners, including subject guides
and forums.

Title TV Choice Educational Resources
URL www.tvchoice.uk.com
Brief description Video library of clips and films. Annual subscription to the clips is available.

Cambridge International Examinations
1 Hills Road, Cambridge, CB1 2EU, United Kingdom
tel: +44 1223 553554 fax: +44 1223 553558
email: info@cie.org.uk www.cie.org.uk

9771 Business and Management Teacher Guide v1

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

9771 Business and Management Teacher Guide v1

Uploaded by

Copyright:

Available Formats

Teacher Guide

Please follow the link below to register your interest.

© Cambridge International Examinations 2017

Section 1: Resources guide ................................................................................................. 3

Section 2: Personal Investigation ....................................................................................... 48

Section 3: Additional assistance to teachers...................................................................... 54

Why choose the Cambridge Pre-U Business and Management?

 syllabuses  Teacher Guide

 notification of any specific changes to syllabuses  Schemes of Work

 past papers  Example Candidate Responses

 specimen papers  resource list

2 Cambridge Pre-U Business and Management (9771)

Section 1: Resources guide

The resources referred to in this table include:

9771 past examination papers available at

Business Studies Review published by Philip Allan

TV Choice Educational Films

Times 100 Business Case Studies

Business Review Magazine

Cambridge Pre-U Business and Management (9771) 3

Section 1: Resources guide

Entrepreneurship and business start-ups Suggested resources

 Practicalities of start-ups and government support: www.tvchoice.uk.com

– entrepreneurs as innovators, leaders, wealth creators  92 The Internet Business

– government initiatives to promote new businesses  93 The Tea Room

 Vol.19 no.2 p. 14 Nov 12 Business start-up

The market and competition Suggested resources

 Vol.20 no.2 p. 10 Competitiveness

 Supply and demand: 9771 past examination papers:

Section 1: Resources guide

Section 1: Resources guide

Business Studies Review published by Philip Allan

The business cycle Suggested resources

changing purchasing patterns

Interest rates Suggested resources

Section 1: Resources guide

Section 1: Resources guide

Business Studies Review published by Philip Allan

 Vol.20 no.2 p. 30 Nov 13 Currency wars

Unemployment Suggested resources

 Types and impact on businesses: 9771 past examination paper:

– Retail Price Index (RPI)

– inflation transmission through costs and/or demand

– impact of inflation on businesses such as difficulty with planning, competitiveness

– impact on real incomes and level of real debts.

1.3 Objectives (GLH: 4–6)

Government macro-economic objectives Suggested resources

 Low inflation, sustained trend growth and low unemployment:

– the Government’s 2.0% (1–3%) target for CPI inflation

– objective to maintain trend economic growth of 2.5%

– the desire to keep unemployment low

– impact of these government objectives on policy, the business.

Section 1: Resources guide

Section 1: Resources guide

 Tactical, strategic and corporate: 9771 past examination papers:

– examples of business objectives. Cambridge International AS and A Level Business:

Uses and problems of objectives Suggested resources

1.4 Stakeholders (GLH: 4–6)

Stakeholders in a business Suggested resources

1.5 Classification of business (GLH: 9–11)

Legal structure Suggested resources

Sector Suggested resources

Size Suggested resources

– methods of expansion include organic growth, mergers and acquisitions/takeovers