Introduction to Business - Association of Business Executives

Unit Title: Introduction to BusinessUnit Reference Number: J/600/0661Guided Learning Hours: 100Level: Level 4Number of Credits: 12Unit 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 planningLearning Outcome 1The learner will: Understand the objectives of a business, what resources they need and towhom they are accountable.Assessment CriteriaThe learner can:1.1 Define and show anunderstanding of theimportant business termsrelated to corporateobjectives.Indicative Content1.1.1 Define and show an understanding of the terms‘corporate aims’, ‘corporate objectives’ and ‘corporatestrategy’.1.1.2 Explain how objectives and aims might change throughthe life of a business: survival, break-even, growth, profitmaximisation, market share, diversification.1.2 Describe the humanand other resourcesrequired by a business,and relate the resources tocorporate objectives.1.2.1 Describe the inputs required by a business: labour,suppliers, finance, land, management skills.1.2.2 Explain the relationship between organisationalobjectives and human resources.1.3 Identify the needs andaccountabilities of differentstakeholders in a businessand how their behaviourmight affect the business.1.3.1 Identify the needs of different stakeholders in abusiness: owners/shareholders, customers, employees,management, suppliers, creditors and government.1.3.2 Explain the accountability and responsibility of differentgroups: owners/shareholders and other stakeholders.1.3.3 Describe and assess the different objectives of thevarious stakeholders, including government, and how theymight conflict.1.3.4 Demonstrate how stakeholder objectives might affect thebehaviour and decisions of a business.

Learning Outcome 2The learner will: Understand the structure and classification of business.Assessment CriteriaThe learner can:2.1 Classify an economyby sectors.Indicative Content2.1.1 Classify an economy by sector: primary, secondary,tertiary.2.1.2 Explain the difference between the private sector and thepublic sector in terms of ownership and objectives.2.2 Describe and evaluatedifferent forms of corporatelegal structure.2.2.1 Describe advantages and disadvantages of different formsof legal structure: sole trader, partnership, franchise, privatelimited company, public limited company.Learning Outcome 3The learner will: Understand how the external environment creates opportunities and threatsfor a business.Assessment CriteriaThe learner can:3.1 Describe the effect onbusinesses of changes inexternal factors.Indicative Content3.1.1 Describe the effect on businesses of changes in externaleconomic factors: interest rates, exchange rates, inflation,unemployment, the business cycle, government legislation,technology.3.1.2 Describe other non-economic influences on businessactivity: environmental, cultural, moral and ethical.3.2 Explain how firms canuse PESTEL analysis aspart of a business strategy.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 4The learner will: Understand the factors that influence the scale of production, the location ofproduction and the choice between different types of production process.

Assessment CriteriaThe learner can:4.1 Explain economies anddiseconomies of scale.Indicative Content4.1.1 Explain, and give examples of, economies anddiseconomies of scale.4.2 Describe the factorsthat influence the locationof a business.4.2.1 Describe the factors that influence the location of abusiness: availability of land, labour, closeness to market,transport routes, government grants, planning permission andenvironmental factors.4.3 Describe and evaluatethe production process.4.3.1 Describe the production process and its associatedadvantages and disadvantages: job, batch, flow, lean and cell.Learning Outcome 5The learner will: Understand the marketing process including marketing strategy, marketingplanning and market research.Assessment CriteriaThe learner can:5.1 Explain the importanceof the marketing processand define key marketingterms, including marketsegmentation, Product LifeCycle, marketing mix,niche market, massmarket, Unique SellingPoint.Indicative Content5.1.1 Define and explain the importance of the marketingprocess.5.1.2 Explain how a market for a product can be segmentede.g. clothes, vehicles, holidays etc.5.1.3 Illustrate with a diagram and describe the Product LifeCycle.5.1.4 Discuss the role of the marketing mix (4 P’s) as part of amarketing plan.5.1.5 Describe and explain how the marketing mix mightchange 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 Explain marketingstrategy in terms ofcompany objectives,available resources andmarket possibilities.5.2.1 Explain marketing strategy in terms of companyobjectives, available resources and market possibilities.5.3 Describe alternativemethods of marketresearch.5.3.1 Describe alternative methods of market research: primaryand secondary.

Learning Outcome 6The learner will: Understand the main accounting concepts and sources of finance forbusiness.Assessment CriteriaThe learner can:6.1 Define and explainbasic accounting andbudgeting concepts.Indicative Content6.1.1 Define basic accounting terms: fixed costs, variable costs,revenue, profit, break-even, working capital. Candidates will beexpected to produce numerical calculations to demonstrate theirunderstanding of the above terms.6.1.2 Define and describe the purpose of budgets and cash flowforecasts; advantages and disadvantages.6.2 Describe and evaluatedifferent sources of financefor business.6.2.1 Describe short term, medium term and long term sourcesof finance.6.2.2 Determine the appropriate source of finance to match abusiness need e.g. overdraft for temporary expansion of stocklevels.6.2.3 Explain the relative benefits and disadvantages of eachtype of finance.Learning Outcome 7The learner will: Understand the need for human resource planning, and the importance ofmotivation in theory and in practice.Assessment CriteriaThe learner can:7.1 Describe workforceplanning in action andcalculate labour turnover fora business.Indicative Content7.1.1 Describe workforce planning in action and evaluatedifferent approaches to recruitment, selection, induction andtraining.7.1.2 Define and give equation for labour turnover.7.2 Explain and evaluate theprincipal motivation theoriesand different practicalapproaches to motivation,including the use ofremuneration as a motivator.7.2.1 Explain the principal theories: Taylor, Mayo, Maslowand Herzberg.7.2.2 Describe and give the benefits of motivation in practice:job enrichment, job enlargement, empowerment, teamworking.

7.2.3 Comment upon the benefits and disadvantages ofdifferent means of remuneration: piecework, time-basedwage, 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 ABEwebsite (www.abeuk.com) for further recommended reading.