1 Understand Business Activity
1.1 Nature of Business Activity 2
1.2 Specialisation 2
1.3 Purpose of Business Activity 2
1.4 Added Value 2
1.5 Classification of Businesses 2
1.6 Mixed Economy 2
1.7 Enterprise, Business Growth & Size 3
1.8 Business Plans 3
1.9 Government Support for Start-Ups 3
1.10 Business Size 3
1.11 Business Growth 3
1.12 Economies of Scale 3
1.13 Problems with business growth (Diseconomies of Scale) 4
1.14 Why Businesses Fail 4
1.15 Sole Trader 4
1.16 Partnerships 5
1.17 Private Limited Company (Ltd) 5
1.18 Public Limited Company (PLC) 5
1.19 Joint Venture 6
1.20 Franchise 6
1.21 Risk, Ownership & Limited Liability 6
1.22 Public Sector 6
1.23 Business Objectives 6
1.24 Stakeholder objectives 6
2 People in Business 7
2.1 Motivating Workers 7
2.1.1 Key Motivational Theories 7
2.1.2 Methods of Motivation 8
2.2 Organisation and Management 8
2.2.2 Roles of Management 9
2.2.3 Leadership Styles 9
2.2.4 Trade Unions 9
2.3 Recruitment 10
2.3.2 Training 10
2.3.3 Dismissal 11
2.3.4 Legal Controls over Employement Issues 11
2.4 Internal and External Communication 12
2.4.2 Communication Barriers 12
3 Marketing
3.1. Marketing, Competition & Customer 13
3.1.3 Market 13
3.1.4 Market Segmentation 14
3.2 Market Research 14
3.3 Marketing Mix 15
3.3.1 Product 15
3.3.2 Pricing 16
3.3.3 Place 17
3.3.4 Promotion 17
3.3.5 Technology & Marketing Mix 18
3.4 Marketing Strategy 19
3.4.2 Legal Controls in Marketing 19
3.4.3 Entering New Markets Abroad 19
4. Operations Management 20
4.1 Production of Goods and Services 20
4.2 Costs and Scale of Production 21
4.2.3 Break- Even 22
4.3 Achieving Quality Production 23
4.4 Location Decisions 23
5. FINANCIAL INFORMATION AND DECISIONS 24
5.1. Needs of Capital 24
5.2 Cash Flow Forecasting & Working Capital 25
5.3 Income Statements 25
5.4 Balance Sheets 26
5.5 Analysis of Accounts 26
5.5.3 Why and how accounts are used 27
6. EXTERNAL INFLUENCES ON BUSINESS A CTIVITY
6.1 Government Economic Policies & Objectives 27
6.1.1 Government Economic Policies 28
6.1.2Interest Rates 28
6.2 Environmental & Ethical Issues 28
6.3 Business and International Economy 29
6.3.2 Multinational Companies 30
6.3.3 Exchange Rates 30