1.1 Business activity - factors of production: land, labour, capital and enterprise

1.1 Business activity - concept of adding value and how added value can be increased

1.1 Business activity - concept of opportunity cost

1.2 Economic sectors - primary, secondary and tertiary sectors

1.2 Economic sectors - private and public sectors

1.3.1 Enterprise and entrepreneurship - characteristics of successful entrepreneurs

1.3.1 Enterprise and entrepreneurship - purpose and key elements of a business plan: overview/summary, objectives, resources, market research, marketing, finance, people, operations

1.3.1 Enterprise and entrepreneurship - the importance of having a business plan

1.3.1 Enterprise and entrepreneurship - why governments support business start-ups

1.3.1 Enterprise and entrepreneurship - how governments support business start-ups, e.g. grants, advice, low-cost loans, training schemes

1.3.2 The methods and problems of measuring business size - methods of measuring business size, e.g. number of people employed, value of output/sales, volume of output/sales, capital employed (profit is not a method of measuring business size)

1.3.2 The methods and problems of measuring business size - problems when measuring business size

1.3.3 Why some businesses grow and others remain small - why the owners of a business may want to grow the business

1.3.3 Why some businesses grow and others remain small - how and why businesses can grow internally, e.g. develop new products, develop new markets

1.3.3 Why some businesses grow and others remain small - how and why businesses can grow externally: mergers and takeovers, including horizontal integration, vertical integration

1.3.3 Why some businesses grow and others remain small - advantages and disadvantages of methods of growth

1.3.3 Why some businesses grow and others remain small - problems linked to business growth

1.3.3 Why some businesses grow and others remain small - why some businesses remain small

1.3.4 Why some businesses succeed and others fail - reasons why businesses succeed or fail, e.g. management skills, availability of finance, suitability of product, demand for products, changes in the economy, level of competition

1.4.1 Different types of business organisation - sole traders, partnerships, private limited companies and public limited companies

1.4.1 Different types of business organisation - advantages and disadvantages of different types of business organisation

1.4.1 Different types of business organisation - recommend and justify a suitable type of business organisation to owners/management for a given situation

1.4.1 Different types of business organisation - different forms of business organisation: franchises, joint ventures, social enterprises

1.4.1 Different types of business organisation - advantages and disadvantages of franchises for the franchisor and franchisee

1.4.1 Different types of business organisation - advantages and disadvantages of joint ventures

1.5.1 Business objectives - businesses can have several objectives, e.g. survival, growth, profit, market share

1.5.1 Business objectives - the importance of business objectives

1.5.2 The role of stakeholder groups - internal stakeholder groups: owners (sole traders, partnerships, shareholders), managers, employees

1.5.2 The role of stakeholder groups - external stakeholder groups: customers, suppliers, lenders/banks, government, local community

1.5.2 The role of stakeholder groups - objectives of different stakeholder groups

1.5.2 The role of stakeholder groups - how these objectives may conflict with each other

2.1.1 Recruiting and selecting employees - stages in the recruitment process: job descriptions, person specifications, job advertisements (including employment agencies and online recruitment)

2.1.1 Recruiting and selecting employees - selection methods, e.g. curriculum vitae (CV)/resumé, application forms, references, testing/assessment centres, interviews

2.1.1 Recruiting and selecting employees - advantages and disadvantages of internal and external recruitment

2.1.1 Recruiting and selecting employees - recommend and justify who to employ in a given situation

2.1.2 Employment contracts and legal controls over employment issues - the main contents of an employment contract: duties and responsibilities, working hours, holiday entitlement, sick pay

2.1.2 Employment contracts and legal controls over employment issues - the benefits of employment contracts for employers and employees

2.1.2 Employment contracts and legal controls over employment issues - legal controls over employment issues: unfair dismissal, discrimination, health and safety, legal minimum wage

2.1.2 Employment contracts and legal controls over employment issues - effects of legal controls over employment issues on employers and employees

2.1.3 Training - importance of training to a business and to employees

2.1.3 Training - types of training: induction training, on-the-job training and off-the-job training

2.1.3 Training - advantages and disadvantages of the three types of training

2.2.1 Simple organisational structures - the main functional areas of a business, e.g. operations, marketing, finance, human resources

2.2.1 Simple organisational structures - simple hierarchical structures: tall and flat levels of hierarchy, long and short chains of command, wide and narrow spans of control

2.2.1 Simple organisational structures - interpret simple organisational charts

2.2.1 Simple organisational structures - different ways of flexible working, e.g. home working and flexible hours

2.2.1 Simple organisational structures - advantages and disadvantages of part-time employees and full-time employees

2.2.2 The functions of management - planning, organising, coordinating, commanding and controlling

2.2.2 The functions of management - advantages and disadvantages of delegation

2.2.3 Leadership styles - the main leadership styles: autocratic, democratic and laissez-faire

2.2.3 Leadership styles - advantages and disadvantages of the main leadership styles

2.2.3 Leadership styles - recommend and justify an appropriate leadership style for a given situation

2.2.4 Why reducing the size of the workforce may be necessary - concept of downsizing

2.2.4 Why reducing the size of the workforce may be necessary - reasons for reducing the size of the workforce, e.g. automation, reduced demand for products, need to lower costs

2.2.4 Why reducing the size of the workforce may be necessary - concept of redundancy

2.2.4 Why reducing the size of the workforce may be necessary - recommend and justify which employee(s) to make redundant in a given situation

2.2.5 The role of trade unions - what a trade union is

2.2.5 The role of trade unions - benefits to employees of being a trade union member

2.3.1 Why communication is important - why communication is important for a business

2.3.1 Why communication is important - methods of communication, e.g. meetings (face-to-face or virtual), email, text messages, social media, phone calls (including mobile calls), letters, posters and noticeboards

2.3.1 Why communication is important - advantages and disadvantages of different methods of communication

2.3.1 Why communication is important - internal and external communication

2.3.1 Why communication is important - recommend and justify which method of communication to use in a given situation

2.3.2 Communication barriers - examples of communication barriers

2.3.2 Communication barriers - reasons for communication barriers

2.3.2 Communication barriers - problems caused by communication barriers

2.3.2 Communication barriers - how communication barriers can be reduced or removed

2.4.1 The importance of a well-motivated workforce - why people work

2.4.1 The importance of a well-motivated workforce - the benefits of a well-motivated workforce: improved labour productivity, reduced absenteeism, lower labour turnover and greater willingness to accept change/new methods of working

2.4.1 The importance of a well-motivated workforce - main motivational theories: Maslow, Taylor, Herzberg

2.4.2 Methods of motivation - financial methods of motivation, e.g. time-based, piece-rate, salary, bonus, commission, profit sharing, fringe benefits

2.4.2 Methods of motivation - non-financial methods of motivation, e.g. job enrichment, job rotation, training, opportunities for promotion, praise, employee of the month

2.4.2 Methods of motivation - recommend and justify an appropriate method of motivation for a given situation

3.1.1 The role of marketing - identifying customer needs

3.1.1 The role of marketing - satisfying customer needs

3.1.1 The role of marketing - maintaining customer loyalty

3.1.1 The role of marketing - building customer relationships

3.1.1 The role of marketing - anticipating changes in customer needs

3.1.2 Understanding market changes - why consumer spending patterns may change

3.1.2 Understanding market changes - why some markets are becoming more competitive

3.1.2 Understanding market changes - how businesses can respond to changing spending patterns and increased competition

3.1.2 Understanding market changes - calculate market share

3.1.3 Mass markets and niche markets - concepts of mass markets and niche markets

3.1.3 Mass markets and niche markets - advantages and disadvantages of mass markets and niche markets

3.1.4 Market segmentation - how markets can be segmented according to: age, income, location, gender, lifestyle

3.1.4 Market segmentation - advantages and disadvantages of market segmentation

3.2.1 Methods of market research - why businesses use market research

3.2.1 Methods of market research - primary research methods, e.g. questionnaires or surveys, interviews, focus groups, observation

3.2.1 Methods of market research - the concept of sampling and why it is useful to businesses

3.2.1 Methods of market research - advantages and disadvantages of primary market research methods

3.2.1 Methods of market research - secondary research methods, e.g. competitor websites, government sources, market reports, trade magazines

3.2.1 Methods of market research - advantages and disadvantages of secondary market research methods

3.2.1 Methods of market research - factors influencing the accuracy of market research data

3.2.1 Methods of market research - analyse simple market research data

3.3.1 Product - the importance of brand image

3.3.1 Product - the role of packaging

3.3.1 Product - advantages and disadvantages of developing new products

3.3.1 Product - the main stages of the product life cycle: introduction, growth, maturity, decline

3.3.1 Product - interpret a product life cycle diagram

3.3.1 Product - extension strategies a business could use: new markets, new uses for a product, adapting the product or packaging, increased advertising/ sales promotion

3.3.1 Product - advantages and disadvantages of different extension strategies

3.3.1 Product - recommend and justify an extension strategy to use in a given situation

3.3.2 Price - pricing methods: cost-plus, competitive, penetration, skimming, dynamic

3.3.2 Price - advantages and disadvantages of different pricing methods

3.3.2 Price - recommend and justify an appropriate pricing method for a given situation

3.3.3 Place - advantages and disadvantages of different distribution channels: direct to customers, through retailers, wholesalers, agents

3.3.3 Place - recommend and justify an appropriate distribution channel for a given situation

3.3.4 Promotion - reasons for promotion

3.3.4 Promotion - methods of sales promotion, e.g. vouchers, reward schemes, competitions, special offers /discounts

3.3.4 Promotion - methods of advertising, e.g. social media, direct/targeted emails, leaflets, billboards

3.3.4 Promotion - recommend and justify which method of sales promotion to use in a given situation

3.3.4 Promotion - recommend and justify which method of advertising to use in a given situation

3.3.5 Ecommerce - examples of ecommerce, e.g. mobile phone/internet banking, online shopping, online ticketing

3.3.5 Ecommerce - advantages and disadvantages of ecommerce for businesses

3.3.5 Ecommerce - advantages and disadvantages of ecommerce for customers

3.3.6 Marketing strategy - importance of the different elements in the marketing mix

3.3.6 Marketing strategy - recommend and justify an appropriate marketing mix for a given situation

3.3.7 Entering new markets in other countries as a method of growth - advantages of entering new markets in other countries, e.g. increase sales, spread risk

3.3.7 Entering new markets in other countries as a method of growth - disadvantages of entering new markets in other countries, e.g. cultural differences, lack of knowledge, legal requirements

3.4.1 Legal controls related to marketing - the purpose of legal controls to protect customers: misleading promotion, faulty goods

3.4.1 Legal controls related to marketing - the effects of legal controls on marketing

4.1.1 Production processes - calculate labour productivity

4.1.1 Production processes - why efficiency is important for a business

4.1.1 Production processes - how to increase efficiency, e.g. increasing automation and technology, improving labour skills

4.1.1 Production processes - concept of lean production and how to achieve it: just-in-time (JIT) inventory control and Kaizen

4.1.1 Production processes - advantages and disadvantages of lean production methods

4.1.1 Production processes - why businesses hold inventory

4.1.1 Production processes - factors affecting how much inventory businesses hold

4.1.2 The main methods of production - job, batch and flow production

4.1.2 The main methods of production - advantages and disadvantages of job, batch and flow production

4.1.2 The main methods of production - recommend and justify an appropriate production method for a given situation

4.2.1 The use of technology in the production of goods and services - how technology is changing production methods through automation and mechanisation, e.g. Computer-Aided Manufacture (CAM) and 3D Printing

4.2.1 The use of technology in the production of goods and services - how technology is improving productivity in the service sector, e.g. contactless payments

4.2.1 The use of technology in the production of goods and services - advantages and disadvantages of changes in technology for businesses and employees

4.3.1 Methods of sustainable production of goods and services - how businesses can be more sustainable: using renewable energy, using fewer resources /less waste, reusing, recycling, developing environmentally friendly products, using environmentally friendly packaging

4.3.1 Methods of sustainable production of goods and services - advantages and disadvantages of businesses becoming more sustainable

4.4.1 Identify and classify costs - classify and calculate costs using examples, e.g. fixed, variable, average and total

4.4.1 Identify and classify costs - use cost data to help make simple decisions, e.g. which product to produce, whether to continue or stop production, what price to set, help choose suppliers

4.4.2 Economies and diseconomies of scale - concept of economies of scale: purchasing, marketing, financial, managerial, technical

4.4.2 Economies and diseconomies of scale - concept of diseconomies of scale: poor communication, lack of commitment or loyalty from employees, weak coordination, lack of control

4.4.3 Break-even analysis - concept of break-even

4.4.3 Break-even analysis - complete or amend a simple break-even chart

4.4.3 Break-even analysis - interpret a break-even chart

4.4.3 Break-even analysis - calculate break-even output

4.4.3 Break-even analysis - define, calculate and interpret the margin of safety

4.4.3 Break-even analysis - use break-even analysis to help make decisions: effect of changes in price, changes in fixed costs, changes in variable cost per unit

4.4.3 Break-even analysis - limitations of break-even analysis

4.5.1 Why quality is important and how quality may be achieved - what quality means and why it is important for businesses

4.5.1 Why quality is important and how quality may be achieved - concept of quality control

4.5.1 Why quality is important and how quality may be achieved - concept of quality assurance

4.5.1 Why quality is important and how quality may be achieved - advantages and disadvantages of quality control and quality assurance

4.5.1 Why quality is important and how quality may be achieved - recommend and justify whether to use quality control or quality assurance in a given situation

4.6.1 Main factors which influence location decisions - factors which influence the location decisions of a manufacturing business

4.6.1 Main factors which influence location decisions - factors which influence the location decisions of a service business

4.6.1 Main factors which influence location decisions - factors that a business could consider when deciding which country to locate its operations in

4.6.1 Main factors which influence location decisions - recommend and justify an appropriate location for a business in a given situation

5.1.1 The need for business finance - the main reasons why businesses need finance: start-up capital, capital for expansion/growth, replacing existing non-current assets, investing in new technology, working capital

5.1.1 The need for business finance - short-term and long-term finance needs of a business

5.1.1 The need for business finance - concept and importance of working capital

5.1.2 The main sources of finance - internal sources of finance: owners’ investment, retained profit, sale of unwanted assets, working capital

5.1.2 The main sources of finance - external sources of finance: share capital or issuing shares, venture capital, bank overdrafts, leasing, hire purchase, bank loans, trade credit, government grants, crowdfunding

5.1.2 The main sources of finance - advantages and disadvantages of internal and external sources of finance

5.1.2 The main sources of finance - the main factors to consider when selecting a source of finance: size of business, legal form of business, amount required, length of time, existing loans, cost, purpose

5.1.2 The main sources of finance - recommend and justify an appropriate source of finance for a given situation

5.2.1 The importance of cash and cash flow forecasts - why cash is important to a business

5.2.1 The importance of cash and cash flow forecasts - what a cash flow forecast is and why it is important

5.2.1 The importance of cash and cash flow forecasts - main features of a cash flow forecast: cash inflow, cash outflow, net cash flow, opening balance, closing balance

5.2.1 The importance of cash and cash flow forecasts - amend or complete a simple cash flow forecast

5.2.1 The importance of cash and cash flow forecasts - interpret a simple cash flow forecast

5.2.1 The importance of cash and cash flow forecasts - how a short-term cash flow problem may be overcome: overdraft, delaying supplier payments, asking customers to pay more quickly, delay purchase of non-current assets

5.3.1 What is profit and why it is important - what profit is

5.3.1 What is profit and why it is important - importance of profit to private sector businesses: reward for risk-taking, source of finance, measure of success, attract investors

5.3.2 Statement of profit or loss - main features of a statement of profit or loss: revenue, cost of sales, gross profit, expenses, profit

5.3.2 Statement of profit or loss - make simple calculations based on a statement of profit or loss: revenue, cost of sales, gross profit, expenses, profit

5.3.2 Statement of profit or loss - make decisions based on simple statements of profit or loss

5.4.1 The main elements of a statement of financial position - non-current assets, e.g. property (land and buildings), machinery

5.4.1 The main elements of a statement of financial position - current assets, e.g. inventory, trade receivables, cash

5.4.1 The main elements of a statement of financial position - non-current liabilities, e.g. bank loans

5.4.1 The main elements of a statement of financial position - current liabilities, e.g. trade payables, overdraft

5.4.1 The main elements of a statement of financial position - concept of capital employed

5.4.1 The main elements of a statement of financial position - make simple calculations based on statements of financial position: total assets, total liabilities, working capital

5.4.1 The main elements of a statement of financial position - make decisions based on simple statements of financial position

5.5.1 Profitability - concept of profitability

5.5.1 Profitability - calculate and interpret the following profitability ratios: – gross profit margin – profit margin – return on capital employed (ROCE)

5.5.2 Liquidity - concept of liquidity

5.5.2 Liquidity - calculate and interpret the following liquidity ratios: – current ratio – acid test ratio

5.5.3 Users of accounts - users of accounts and ratio analysis: internal, e.g. owners (sole traders, partnerships, shareholders), managers, employees

5.5.3 Users of accounts - users of accounts and ratio analysis: external, e.g. suppliers, government, lenders/banks

5.5.3 Users of accounts - how users of accounts may use financial information to help make decisions, e.g. whether to lend to or invest in a business

5.5.3 Users of accounts - limitations of using accounts and ratio analysis

6.1.1 Business cycle - main stages of the business cycle: growth, boom, recession, slump

6.1.1 Business cycle - how each stage of the business cycle may affect a business

6.1.1 Business cycle - effects of changes in the levels of employment, inflation and economic growth on a business

6.1.2 Effects of government policy - effects of changes in taxes on business profit

6.1.2 Effects of government policy - effects of changes in taxes on people’s income

6.1.2 Effects of government policy - effects of changes in government spending

6.1.2 Effects of government policy - effects of changes in interest rates

6.1.2 Effects of government policy - how businesses may respond to changes in taxes and interest rates

6.2.1 The importance of globalisation - reasons for globalisation: improved transport links, technological change including communication, free trade agreements, newly industrialised countries

6.2.1 The importance of globalisation - opportunities and threats of globalisation for businesses

6.2.1 The importance of globalisation - import tariffs and import quotas

6.2.1 The importance of globalisation - effects of import tariffs and import quotas on businesses

6.2.2 Multinational companies (MNCs) - advantages to a business of becoming an MNC

6.2.2 Multinational companies (MNCs) - advantages for the country where an MNC is located, e.g. jobs, exports, increased choice, investment

6.2.2 Multinational companies (MNCs) - disadvantages for the country where an MNC is located, e.g. increased competition, environmental damage, exploitation of natural resources, repatriation of profits

6.2.3 External costs and benefits - external costs and external benefits of business decisions

6.2.4 Exchange rates - appreciation and depreciation of an exchange rate

6.2.4 Exchange rates - how changes in exchange rates can affect businesses which import and export products and services, e.g. price, costs, competitiveness

6.3.1 Environmental issues - how business activity can negatively affect the environment, e.g. pollution, depletion of resources

6.3.1 Environmental issues - why businesses may respond to environmental issues, e.g. improved reputation, increased sales

6.3.1 Environmental issues - how businesses may respond to environmental issues

6.3.1 Environmental issues - effects of legal controls over business activity affecting the environment: how, what and where to produce or sell, influence on costs

6.4.1 Ethical issues - ethical issues which may affect businesses, e.g. child labour, paying fair wages to employees, paying fair prices to suppliers, using suppliers who do not damage the environment

6.4.1 Ethical issues - how businesses may respond to ethical issues

6.4.1 Ethical issues - advantages and disadvantages of a business being ethical

6.5.1 The role of pressure groups - how pressure groups can influence business decisions