QCF Syllabus

Introduction to Business

Unit Title Introduction to Business

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

Unit purpose and aim(s):

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

Learning Outcome 1

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

Assessment Criteria Indicative Content

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

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

Assessment Criteria Indicative Content

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

Learning Outcome 3

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

Assessment Criteria Indicative Content

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

Learning Outcome 4

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

Assessment Criteria Indicative Content

The learner can:
4.1 Explain economies and
diseconomies of scale.
4.2 Describe the factors that
influence the location of a
business.
4.3 Describe and evaluate the
production process.
4.1.1 Explain, and give examples of, economies and diseconomies of scale.
4.2.1 Describe the factors that influence the location of a business: availability of land,
labour, closeness to market, transport routes, government grants, planning
permission and environmental factors.
4.3.1 Describe the production process and its associated advantages and disadvantages:
job, batch, flow, lean and cell.
Learning Outcome 5
The learner will: Understand the marketing process including marketing strategy, marketing planning and market research.
Assessment Criteria
The learner can:
5.1 Explain the importance of the
marketing process and define key
marketing terms, including
market segmentation, Product
Life Cycle, marketing mix, niche
market, mass market, Unique
Selling Point.
5.2 Explain marketing strategy in
terms of company objectives,
available resources and market
possibilities.
5.3 Describe alternative methods of
market research.
Learning Outcome 6
The learner will: Understand the main accounting concepts and sources of finance for business.
Assessment Criteria
The learner can:
6.1 Define and explain basic
accounting and budgeting
concepts.
6.2 Describe and evaluate different
sources of finance for business.
Learning Outcome 7
The learner will: Understand the need for human resource planning, and the importance of motivation in theory and in practice.
Assessment Criteria
The learner can:
7.1 Describe workforce planning in
action and calculate labour
turnover for a business.
7.2 Explain and evaluate the principal
motivation theories and different
practical approaches to
motivation, including the use of
remuneration as a motivator.
Indicative Content
5.1.1 Define and explain the importance of the marketing process.
5.1.2 Explain how a market for a product can be segmented e.g. clothes, vehicles, holidays
etc.
5.1.3 Illustrate with a diagram and describe the Product Life Cycle.
5.1.4 Discuss the role of the marketing mix (4 P’s) as part of a marketing plan.
5.1.5 Describe and explain how the marketing mix might change at different points of the
product life cycle.
5.1.6 Define other principle marketing terms: niche market, mass market, USP (Unique
Selling Point).
5.2.1 Explain marketing strategy in terms of company objectives, available resources and
market possibilities.
5.3.1 Describe alternative methods of market research: primary and secondary.
Indicative Content
6.1.1 Define basic accounting terms: fixed costs, variable costs, revenue, profit, break-
even, working capital. Candidates will be expected to produce numerical
calculations to demonstrate their understanding of the above terms.
6.1.2 Define and describe the purpose of budgets and cash flow forecasts; advantages
and disadvantages.
6.2.1 Describe short term, medium term and long term sources of finance.
6.2.2 Determine the appropriate source of finance to match a business need e.g.
overdraft for temporary expansion of stock levels.
6.2.3 Explain the relative benefits and disadvantages of each type of finance.
Indicative Content
7.1.1 Describe workforce planning in action and evaluate different approaches to
recruitment, selection, induction and training.
7.1.2 Define and give equation for labour turnover.
7.2.1 Explain the principal theories: Taylor, Mayo, Maslow and Herzberg.
7.2.2 Describe and give the benefits of motivation in practice: job enrichment, job
enlargement, empowerment, team working.
7.2.3 Comment upon the benefits and disadvantages of different means of remuneration:
piecework, time-based wage, salary, commission, profit sharing, share ownership,
fringe benefits.
Assessment:

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

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

Recommended Reading:

 Introduction to Business – ABE Study Manual.

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