Unit 1: Introduction to business management 1.1 What isa business? The nature of business Primary, secondary, tertiary and quaternary sectors Entrepreneurship Challenges and opportunities for starting up a business 1.2 Types of business entities Distinction between the private and the public sectors The main features of the following types of organizations. + Sole traders + Partnerships + Privately held companies + Publicly held companies The main features of the following types of for-profit social enterprises. + Private sector companies + Public sector companies + Cooperatives The main features of the following type of non-profit social enterprise. + Non-governmental organizations (NGOs) 1.3 Business objectives Vision statement and mission statement ‘Common business objectives including growth, profit, protecting shareholder value and ethical objectives Strategic and tactical objectives Corporate social responsibility (CSR) 1.4 Stakeholders Internal and external stakeholders Conflict between stakeholders1.5 Growth and evolution Internal and external economies and diseconomies of scale ‘The difference between internal and external growth Reasons for businesses to grow Reasons for businesses to stay small External growth methods. Mergers and acquisitions (MBAs) Takeovers Joint ventures Strategicalliances Franchising 1.6 Multinational companies (MNCs) ‘The impact of MNCs on the host countriesUnit 3: Finance and accounts 3.1 Introduction to finance Role of finance for businesses. + Capital expenditure + Revenue expenditure 3.2 Sources of finance The following internal sources of finance. + Personal funds (for sole traders) + Retained profit + Saleofassets ‘The following external sources of finance. + Share capital + Loan capital + Overdrafts + Trade credit + Crowdfunding + Leasing + Microfinance providers + Business angels Appropriateness of short- or long-term sources of finance for a given situation 3.3 Costs and revenues The following types of cost, using examples. + Fixed + Variable + Direct + Indirect/overhead Total revenue and revenue streams, using examples3.4 Final accounts ‘The purpose of accounts to different stakeholders Final accounts + Profit and loss account + Balance sheet Different types of intangible assets Depreciation using the following methods (HL only). + Straight line method + Units of production method Appropriateness of each depreciation method (HL only) 3.5 Profital ity and liquidity ratio analysis The following profitability ratios. + Gross profit margin + Profit margin + Return on capital employed (ROCE) Possible strategies to improve these ratios The following liquidity ratios. + Currentratio + Acid test (quick) ratio Possible strategies to improve these ratios 3.6 Efficiency ratio analysis (HL only) The following efficiency ratios. + Stock turnover + Debtor days + Creditor days + Gearing ratio Possible strategies to improve these ratios Insolvency versus bankruptcy3.7 Cash flow ‘The difference between profit and cash flow Working capital Liquidity position Cash flow forecasts ‘The relationship between investment, profit and cash flow Strategies for dealing with cash flow problems 3.8 Investment appraisal Investment opportunities using payback period, average rate of return (ARR) and NPV (HL only) 3.9 Budgets (HL only) The difference between cost and profit centres The roles of cost and profit centres Constructing a budget Variances The importance of budgets and variances in decision-makingUnit 4: Marketing 4.1 Introduction to marketing Market orientation versus product orientation Market share Market growth The importance of market share and market leadership (HL only) 4.2 Marketing planning ‘The role of marketing planning ‘Segmentation, targeting (target market) and positioning (position maps) ‘The difference between niche market and mass market ‘The importance of having a unique selling point/proposition (USP) How organizations can differentiate themselves and their products from competitors 4.3 Sales forecast 1g (HL only) The benefits and ions of sales forecasting 4.4 Market research Why and how organizations carry out market research The following methods/techniques of primary market research. Surveys + Interviews || Focus groups || Observations The following methods/techniques of secondary market research. + Market analyses + Academic journals Government publications | Media articles + Online content The difference between qualitative and quantitative research The following methods of sampling, + Quota + Random + Convenience4.5 The seven Ps of the marketing mi Product The relationship between the product life cycle, product portfolio and the marketing mix Extension strategies ‘The relationship between the product life cycle, investment, profit and cash flow 4.5 The seven Ps of the marketing mix The following aspects of branding. + Awareness + Development + Loyalty + Value ‘The importance of branding Price ‘The appropriateness of the following pricing methods. + Cost-plus (mark-up) pricing + Penetration pricing + Loss leader + Predatory pricing + Premium pricing + Dynamic pricing (HL only) + Competitive pricing (HL only) + Contribution pricing (HL only) + Price elasticity of demand (HL only) 4,6 International marketing (HL only) The opportunities and threats posed by entering and operating internationallyBusiness management toolkit Business plan Checklist [V) Executive summary [¥ Business description (V1 Human resource plan [Financial plan Y) Marketing plan ¥) Operational plan (uit 1, 2,3 4,5) SWOT analysis Ss O|T Strengths Opportunities | Threats + Thingsyour + Thingsyour + Underserved + ‘Emerging business does well busnesslacks markets for competitors Qualtiesthat_ + Thingsyour specificpurposes . Changing eparate yourffom competitors do + Faw competitors regulatory yourompetitorsbetterthanyou inyourarea ‘environment + Interal resources + Resource + Emerging needs + Negative such assklled, limitations foryour products press/media knowledgeable andservices coverage staff (units 1,2.3,4,5)Steeple analysis Demographics option growth ‘Age distribution Technological growth New innovation Skilled resources Economic growth Exchange rater interest rates Westher Climate change Environmental policy Government palcy Taxation Political stability + Thecourt ystem + Employment aw + Discrimination aw Bbery intellectual propery Reputation (ots 1,2,4) Force field analysis (HL only) Driving forces Restraining forces 4324 1234 Problem nee to be solved (nits 2,5)Circular business models design production remanufacturing circular economy ‘Circular business made!s willinclude the following, + Grcular supply models + Resource recovery models + Product life extension models + Sharing models + Product service system models (units 1,5) Ansoff Matrix Existing New products roducts Existing markets | penetration Ded Cees Boston Consulting Group (BCG) matrix The growth share matrix eave marketshare Cash generation High row ‘bo Peer Market growth ate ‘cash usageDecision trees Business decision: choice of three building sites (A, B or C) succeed, fail succeed, Enchoutcome has probabilty all ‘of being a success of faire, succeed fail Porter's generic strategies (HL only) Competitive ndvantage Lower cost Differentiation Cost leadership Differentiation (ict (units 1.4) Contribution (HL only) Contribution (HL ony) ill Include the following. + Mako or Buy analysis + Contribution costing + Absorption costing (units 3, 4,5)Gantt chart (HL only) Implementation Tato = (write 4,5) Critical path analysis (HL only) Critical path analysis (HL only) will include the following. + Completion and analyses of a critical path diagram (drawing of the diagram is not expected) + Identification of the critical path + Calculation of free and total float (units 4, 5)Simple linear regresion (HL only) Simple near regression ‘Simple linear regression (HL only) vl Include the following + Seater diagrams += Line of best it + Comrelation/Extrapolation (writs 1.4.5) Hofstede’s cultural dimensions (HL only) Mere oA restraint Hofstede’s cultural dimensions eon Peng Sci) a ec) Ud Vrercg Ee aes (units 2,4, 5)