MINISTRY OF EDUCATION

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1 Republic of Namibia MINISTRY OF EDUCATION NAMIBIA SENIOR SECONDARY CERTIFICATE (NSSC) BUSINESS STUDIES SYLLABUS ORDINARY LEVEL SYLLABUS CODE: 4346 GRADES DEVELOPED IN COLLABORATION WITH UNIVERSITY OF CAMBRIDGE INTERNATIONAL EXAMINATIONS 1

2 Republic of Namibia MINISTRY OF EDUCATION NAMIBIA SENIOR SECONDARY CERTIFICATE (NSSC) BUSINESS STUDIES SYLLABUS ORDINARY LEVEL This syllabus replaces previous NSSC syllabuses and will be implemented in 2010 in Grade 11 2

3 Ministry of Education National Institute for Educational Development (NIED) Private Bag 2034 Okahandja Namibia Copyright NIED, Ministry of Education, 2009 Business Studies Syllabus Ordinary Level Grades ISBN: Printed by NIED Publication date:

4 TABLE OF CONTENTS 1. Introduction Rationale Aims Learning Content Assessment Objectives Scheme of Assessment Specification Grid Grade Descriptions Glossary of Terms Annexure A: Explanatory Notes to Teachers

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6 1. INTRODUCTION The Namibian Senior Secondary Certificate (NSSC) for Business Studies: Ordinary Level is designed as a two year course for examination after completion of the Junior Secondary Certificate. The syllabus is designed to meet the requirements of the Curriculum Guide for Formal Senior Secondary Education for Namibia and has been approved by the National Examination, Assessment and Certification Board (NEACB). The National Curriculum Guidelines, applicable at the stage of senior secondary education (grades 11 and 12) and at equivalent stages of non-formal education (as a part of life-long learning) recognise the uniqueness of the learner and adhere to the philosophy of learnercentred education. Teachers are required to refer to ANNEXURE A (Explanatory notes to Teachers) before commencing with their teaching activities. The Namibia National Curriculum Guidelines: recognise that learning involves developing values and attitudes as well as knowledge and skills; promotes self-awareness and an understanding of the attitudes, values and beliefs of others in a multilingual and a multicultural society; encourage respect for human rights and freedom of speech; provide insight and understanding of crucial global issues in a rapidly changing world which affect quality of life: the AIDS pandemic, global warming, environmental degradation, bad distribution of wealth, expanding and increasing conflicts, the technological explosion and increased connectivity; recognise that as information in its various forms becomes more accessible, learners need to develop higher cognitive skills of analysis, interpretation and evaluation to use information effectively; seek to challenge and to motivate learners to reach their full potential and to contribute positively to the environment, economy and society. Thus the Namibia National Curriculum Guidelines should provide opportunities for developing essential/key skills across the various fields of study. Such skills cannot be developed in isolation and they may differ from context to context according to the field of study. Business Studies contribute directly to the development of the 8 key skills marked *: critical and creative thinking skills* communication skills* information skills* numeracy skills* physical skills problem solving skills* self-management and competitive skills* social and co-operative skills* work and study skills* 2. RATIONALE Business Studies intends to impart the basic concepts of entrepreneurial skills in the learners that will enable them to create jobs for themselves, and for others as well as in the future. It will help learners to apply the business knowledge, skills and attitudes acquired to solve environmental, economic and social problems in their everyday lives. The subject will help learners to appreciate the importance of good working habits, to develop positive attitudes towards work and promote interest in self-employment. NSSCO Business Studies Syllabus, NIED

7 3. AIMS The aims of the syllabus are the same for all learners. These aims are set out below and describe the educational purposes of a course in Business Studies for the NSSC examination. They are not listed in order of priority. The aims are to enable learners to: 1. develop knowledge and understanding of the environment within which business activity takes place and of the way in which changes in that environment influence business behaviour; 2. develop knowledge and understanding of the major groups and organisations within an outside business and consider ways in which they are able to influence objectives, decisions and activities; 3. develop an understanding of the roles and purposes of business activity in both the public and the private sectors and of competition and monopoly; 4. develop knowledge and understanding of how the main types of business and commercial institutions are organised, financed and operated and how their relations with other organisations, consumers, employees, owners and society are regulated; 5. develop knowledge and understanding of the factor inputs and product outputs of businesses and the forces which help to determine and control them; 6. develop knowledge and appreciation of the working world and of the co-operation and inter-dependence which participation in society entails; to encourage the confidence and awareness of students in their approach to such participation, particularly through group activity within the classroom and direct experience outside it; 7. develop knowledge and understanding of the language, concepts, techniques and decision-making procedures in business behaviour; 8. develop the skills of numeracy, literacy, enquiry, selection and employment of relevant sources of information, presentation and interpretation; 9. develop awareness of the nature and significance of innovation and change within the context of business activities. 10. acquire knowledge and understanding of the effect of HIV and AIDS on business activity; 11. understand the impact and influence of business activity on the environment and on human rights. 4. LEARNING CONTENT The content is divided into seven themes and these are: 1. Why is business activity needed? 2. How is business activity organised and financed? 3. What is work like? 4. What is produced and why? 5. Why and how do the Government and the community influence business activity? 6. Entrepreneurship NSSCO Business Studies Syllabus, NIED

8 THEME 1: WHY IS BUSINESS ACTIVITY NEEDED? TOPIC 1.1 The nature and purpose of economic activity GENERAL OBJECTIVES Learners will: understand the development of economic activity and account for the emergence of specialisation, the division of labour and exchange. SPECIFIC OBJECTIVES Learners should be able to: describe the development of economic activity; explain the meaning of specialisation and division of labour; describe the relationship between specialisation and trade; identify the levels of specialisation with examples; discuss the advantages and disadvantages of specialisation; state the groups involved in business activity; identify the objectives of the groups involved in business activity: consumers, workers, managers, owners, those with a financial interest, the community as a whole; give examples of the conflict of objectives between the various groups involved in business activities and the ways in which priorities change; explain the purpose of business activity in terms of the objectives of: non-profit making activity, private enterprise, public enterprise. 1.2 Economic systems understand how economic systems are organised. describe and explain the role of the State in the economy; distinguish between market, mixed and planned economies with reference to characteristics, advantages and disadvantages. 1.3 Types of business activity understand the creation and distribution of wealth acquire knowledge and understanding of the classification of different types of business activity/stages of production. explain how wealth is created and distributed; explain the importance of welfare policies to alleviate poverty. differentiate, with examples, between the different types of business activity in the primary, secondary and tertiary sectors. NSSCO Business Studies Syllabus, NIED

9 THEME 1: WHY IS BUSINESS ACTIVITY NEEDED? TOPIC GENERAL OBJECTIVES Learners will: understand the methods of measuring the size of a business. SPECIFIC OBJECTIVES Learners should be able to: state the main methods of measuring the size of businesses; explain the purpose of the classification and measurement of business units; explain: - internal growth - external growth (mergers and take-overs) explain, with examples, the meaning of multinational firms; identify the advantages and disadvantages of multinationals to the host country; explain the importance of globalisation; explain the survival of small firms; explain how businesses respond to the needs of the community. NSSCO Business Studies Syllabus, NIED

10 THEME 2: HOW IS BUSINESS ACTIVITY ORGANISED AND FINANCED? TOPIC 2.1 Ways of organizing business activity: the public and private sectors GENERAL OBJECTIVES Learners will: understand the difference between the public and private sectors. SPECIFIC OBJECTIVES Learners should be able to: explain, with examples, the difference between public and private Sectors, and ways of organising business activity; distinguish between nationalisation and privatisation. 2.2 Forms of business organisations understand and analyse the different forms of business organisations in the public and private sectors. describe the main characteristics, advantages and disadvantages of the different forms of business organisations: sole proprietors, partnerships, private limited companies, public limited companies, co-operatives, close corporations, public corporations, joint ventures, franchises; consider the appropriateness of each of these forms of business ownership to particular circumstances and choose between them (a detailed knowledge of legal requirements and procedures is not expected); describe how ownership becomes divorced from control as business grows. 2.3 Organisational structures, by level and by function understand the need for and features of an organisational structure. define an organisational structure; define and comment on central features of organisational structure and activity, such as hierarchy, responsibility, authority, span of control, chain of command, line and staff organisation, centralisation, delegation; draw and explain a simple organisation chart; describe the need to change the organisational structure as the business expands and how this might affect the business; describe types of organisation structure: by function, by product, by market, by systems. NSSCO Business Studies Syllabus, NIED

11 THEME 2: HOW IS BUSINESS ACTIVITY ORGANISED AND FINANCED? TOPIC 2.4 Finance in the private/public sector, meeting targets, raising finance GENERAL OBJECTIVES Learners will: acquire knowledge and understanding of the sources of long-term and short-term finance. SPECIFIC OBJECTIVES Learners should be able to: identify the main needs for funds and how such needs can be met; identify and comment upon the main sources of private and public sector finance; explain the main ways of seeking finance from these sources; identify the main ways in which a business is able to use funds from internal sources; explain the idea of cash flow and cash flow forecasts and its importance in the management of finance; analyse a firm s need for funds for specific purposes and make a choice between the available resources; explain the factors which financial providers (banks, shareholders, institutions ) will consider in providing funds. 2.5 The accounting function, planning and controlling business activity appreciate the importance of keeping simple records of business transactions. explain the role of the accounting function in the planning and control of business activity; use and interpret simple quantitative accounting data, in particular the final accounts (Profit and Loss Account and Balance Sheet) of a business, using performance ratio (return on net assets/return on capital employed, gross profit margin, net profit margin), liquidity ratio (current ratio, acid test/liquid ratio, stock turnover ratio); explain the nature and usefulness of budgets; explain the nature and usefulness of cash flow forecasts and prepare examples to demonstrate their nature; distinguish between various kinds of costs, explaining their nature and significance (fixed vs variable, average, marginal and total); recognise and use the following concepts: capital owned, capital employed, employment of capital, working capital, liquidity; solvency. NSSCO Business Studies Syllabus, NIED

12 THEME 2: HOW IS BUSINESS ACTIVITY ORGANISED AND FINANCED? TOPIC 2.6 Management of business GENERAL OBJECTIVES Learners will: demonstrate an understanding of the importance of management. SPECIFIC OBJECTIVES Learners should be able to: explain the functions of management ; explain the qualities of a good manager; explain the need for effective management; discuss leadership, qualities, styles, effectiveness, roles. 2.7 Communications acquire knowledge of different types of communication. explain what is effective communication and why is it necessary; distinguish between: - internal and external communication, - one way and two way communication; explain the different ways of communicating and their appropriateness; explain and analyse the main elements of effective communication: message, media (verbal, written, visual), timing; identify and explain the barriers to effective communication and how they may be overcome. NSSCO Business Studies Syllabus, NIED

13 THEME 3: WHAT IS WORK LIKE? TOPIC 3.1 Why work? Needs of the individual GENERAL OBJECTIVES Learners will: understand the importance of work to an individual. SPECIFIC OBJECTIVES Learners should be able to: identify the reasons why individuals work; discuss the extent to which work satisfies individual s needs. 3.2 Rewards for work understand the responsibilities required and rewards given for different jobs. identify the financial and non-financial rewards for work; explain the place of rewards in motivation; describe the different payments systems (salaries and wages) including piece work, time work, combination systems, bonuses and commissions, productivity agreements, profit sharing, identify different types of responsibility structures in business and the way in which work can be organised either to give or to remove responsibility e.g. span of control. 3.3 Groups and relationships understand the importance of groups in the workplace. describe the formation of groups in the workplace; explain the importance of formal and informal groups and the roles they play in the work situation. NSSCO Business Studies Syllabus, NIED

14 THEME 3: WHAT IS WORK LIKE? TOPIC 3.4 Formal representation and participation GENERAL OBJECTIVES Learners will: demonstrate an understanding of the importance of co-operation and negotiation in the workplace. SPECIFIC OBJECTIVES Learners should be able to: discuss what management can do to meet the needs of workers with regard to job satisfaction; explain why co-operation and joint responsibility are important in the workplace; describe the types of trade unions; explain the reasons for joining trade unions; define organisational conflict; briefly discuss the means of avoiding and resolving conflict when relations break down; explain the difference between dismissal and redundancy describe the types of industrial action; explain what is meant by worker participation in decision making; explain the different ways of worker participation; list the advantages and disadvantages of worker participation; describe the role of employer associations. 3.5 Recruitment, training and human resources understand the importance of recruiting the right candidate for the job. describe the means of selecting and training the workforce: - recruitment, - selection, - induction, - training; discuss the appropriateness of different types of training to particular circumstances; develop appropriate materials for recruitment, e.g.: - job descriptions, - job specifications, - application forms, - advertisements. NSSCO Business Studies Syllabus, NIED

15 THEME 4: WHAT IS PRODUCED AND WHY? TOPIC 4.1 The market and marketing GENERAL OBJECTIVES Learners will: demonstrate an understanding of how and why firms attempt to satisfy consumer wants SPECIFIC OBJECTIVES Learners should be able to: explain the meaning of a market and marketing; explain how businesses identify and meet the needs of customers; list the objectives of marketing; describe how businesses divide the market into segments by product, region, purpose, price and decide which segment to enter; distinguish between market orientation and product orientation. 4.2 Market research acquire knowledge and an understanding of the importance of market research acquire knowledge of conducting market research explain the meaning of market research; distinguish between the methods of primary research and secondary research; explain why information obtained in market research might not be accurate; develop a questionnaire. 4.3 The marketing mix: product and packaging, price, promotion, distribution demonstrate knowledge and understanding of the importance of product and packaging in the marketing mix. explain the meaning of product; distinguish between types of product; list the features that will make a product successful; distinguish between: brand name, brand loyalty, brand image; explain the functions of packaging; draw and explain a product life cycle. NSSCO Business Studies Syllabus, NIED

16 THEME 4: WHAT IS PRODUCED AND WHY? TOPIC GENERAL OBJECTIVES Learners will: understand the importance of the price of a product on consumers and firms. understand the importance of promotion in a business. understand the importance of making a product available where customers expect to find it (place). acquire knowledge of how firms develop marketing strategies involving the marketing mix. SPECIFIC OBJECTIVES Learners should be able to: Define price explain the following pricing strategies: - cost plus pricing, - penetration pricing, - price skimming, - competitive pricing, - promotional pricing; define demand and supply; demonstrate the principle of equilibrium price (analyse simple market situations with changes in supply and demand). Define promotion distinguish between informative and persuasive advertising; distinguish between different types of advertising media (including E- Commerce); briefly explain the requirements for effective advertising (AIDA); explain different ways of how firms promote their products; explain public relations. define distribution; explain different channels of distribution and E-Commerce; explain why the manufacturer may use either direct channels or indirect channels of distribution; briefly explain methods of transporting goods. define marketing objectives; draw up a marketing plan (involving the elements of the marketing mix). NSSCO Business Studies Syllabus, NIED

17 THEME 4: WHAT IS PRODUCED AND WHY? TOPIC 4.4 Deciding on the scale of operations, and location GENERAL OBJECTIVES Learners will: understand how firms use resources to produce goods and services and the influence of changes in technology. acquire knowledge of factors influencing location. SPECIFIC OBJECTIVES Learners should be able to: explain the meaning of: - production, - productivity; explain the effects of HIV and AIDS on productivity; explain the role of women and people living with impairment in production; differentiate between methods of production: - job production, - batch production, - flow production; explain how changes in technology have influenced production; explain: quality control, stock control, lean production; draw a graph to explain how stock levels can be managed effectively; demonstrate understanding of the general idea of scale of operation and the economies / diseconomies associated with scale. comment upon location factors with particular reference to particular firms/industries (manufacturing business, retailing business, service business); explain factors which influence firms to relocate either at home or abroad NSSCO Business Studies Syllabus, NIED

18 THEME 5: WHY AND HOW DO GOVERNMENT AND THE COMMUNITY INFLUENCE BUSINESS ACTIVITY? TOPIC GENERAL OBJECTIVES Learners will: SPECIFIC OBJECTIVES Learners should be able to: 5.1 The reasons for regulation of business activity understand the role of the State in regulating business activity. list the social and economic objectives of the government; discuss in general terms why the government needs to intervene in business activity; discuss the idea of social costs and the concept of cost-benefit analysis in general terms (the treatment should be entirely descriptive); apply the concept descriptively to the resolution of simple social cost and social benefits situations; discuss how the government can protect the environment against harm (protection against pollution, protection against the exploitation of nonrenewable resources). 5.2 Aiding and influencing the producer understand the role of the State in assisting producers. discuss why and how the government may intervene in the production process: location decisions (local, national, international), production and relationships with other firms; discuss why and how the government may intervene in assisting businesses: regional assistance, small firms, and exporting of goods and services; discuss barriers to International Trade and the calculation of exchange rates (currency conversion between two currencies); discuss the implications to Namibia of being a member of SADC. 5.3 Aiding and protecting the employee understand the role of the state in protecting the employee. discuss how and why the government may protect the employee with reference to: working conditions, social security, employment contracts, health and safety, redundancy, minimum wages, unfair labour practices; discuss how the government can protect people with HIV and AIDS at the workplace. NSSCO Business Studies Syllabus, NIED

19 THEME 5: WHY AND HOW DO GOVERNMENT AND THE COMMUNITY INFLUENCE BUSINESS ACTIVITY? TOPIC GENERAL OBJECTIVES Learners will: SPECIFIC OBJECTIVES Learners should be able to: 5.4 Persuading and protecting the consumers and providers of capital understand the role of the state in protecting the consumers and providers of capital. discuss the aims of private organisations and pressure groups in protecting the interests of consumers; discuss why and how the government may intervene in protecting the interests of those who lend and provide capital. NSSCO Business Studies Syllabus, NIED

20 THEME 6: ENTREPRENEURSHIP TOPIC GENERAL OBJECTIVES Learners will: SPECIFIC OBJECTIVES Learners should be able to: 6.1 What is an entrepreneur? demonstrate an understanding of the importance of efficient management of a business enterprise as a prerequisite for economic development in Namibia. discuss characteristics, advantages and disadvantages of being an entrepreneur (reference should be made to the formal and non-formal sectors); discuss factors to be considered in becoming an entrepreneur (need to identify a business idea, types of business, local community, competition, market, goals, risk taking, judgement in business situations and a business plan). 6.2 Types of enterprises acquire knowledge of the different types of enterprises list five basic types of enterprises (primary, manufacturing, wholesale, retail and service); explain the differences between these types of enterprises. 6.3 A business plan understand the importance of a business plan and how to draw one up define a business plan; list and explain the elements and uses/applications of a business plan (goals, product, consumer, market research, marketing, finance); develop a business plan using the following elements: description of business, market research, production plan, organisational plan, financial plan, action plan. NSSCO Business Studies Syllabus, NIED

21 5. ASSESSMENT OBJECTIVES The four assessment objectives are: A Knowledge with understanding B Application C Analysis D Judgement and decision making A description of each assessment objective follows. A Knowledge with understanding Learners should: 1. demonstrate knowledge and understanding of business facts, terms, concepts and conventions appropriate to the syllabus; 2. demonstrate knowledge and understanding of theories and techniques commonly applied to, or used as part of, business behaviour. The curriculum objectives define the factual material that learners may be required to recall and understand. Questions testing these objectives will often begin with words such as: define, describe, explain, list, outline, state. B Application Learners should: 1. apply their knowledge and understanding of facts, terms, concepts and conventions to business problems and issues; 2. apply their knowledge and understanding of theories and techniques commonly applied to business problems and issues. Questions testing these objectives will often begin with words such as: calculate, comment, describe, determine, explain, illustrate. C Analysis Learners should: 1. select, order, analyse and interpret information, in narrative, numerical and graphical forms, using appropriate techniques; 2. use business data, recognise patterns in such data, and deduce relationships. Questions testing these objectives will often contain words such as :analyse, calculate, compare, contrast, distinguish, examine. D Judgement and decision making Learners should: 1. distinguish between evidence and opinion, make reasoned judgements and communicate them in an accurate and logical manner; 2. recognise that business theory is subject to various limitations and uncertainties; 3. plan to carry out appropriate enquiries in order to make judgements and decisions. Questions testing these objectives will often contain words such as: choose, assess, consider, discuss, evaluate, suggest. NSSCO Business Studies Syllabus, NIED

22 6. SCHEME OF ASSESSMENT All learners will take Paper 1 and Paper 2. Differentiation All learners are expected to pursue the same curriculum objectives, and differentiation will be by outcome. Paper 1 Written 2 hours 100 marks 50% weighting Learners will be expected to answer five compulsory questions (each worth 20 marks) drawn from the whole learning content, involving primarily but not exclusively, Assessment Objective A (Knowledge with understanding) 40 marks (See Specification Grid). Paper 2 2 hours 100 marks 50% weighting Learners will be expected to answer seven compulsory questions arising from a business situation or problem. Questions 1 to 6 are worth 15 marks each, with Question 7 totalling 10 marks. The paper tests primarily, but not exclusively, Assessment Objectives C (Analysis) and D (Judgement and decision-making), each worth 30 marks (See Specification Grid). NSSCO Business Studies Syllabus, NIED

23 7. SPECIFICATION GRID The relationship between assessment objectives and components of the scheme of assessment is shown below. Assessment Objectives Paper 1 (marks) Paper 2 (marks) Overall weighting of papers A Knowledge with understanding % B Application % C Analysis % D Judgement and Decision making % Total marks % Weighting 50 % 50 % 100% The assessment objectives are weighted to give an indication of their relative importance. They are not intended to provide a precise statement of the number of marks allocated to particular assessment objectives. NSSCO Business Studies Syllabus, NIED

24 8. GRADE DESCRIPTIONS Grade descriptions are provided to give a general indication of the standards of achievement likely to have been shown by candidates awarded particular grades. The grade assessment will depend, in practice, upon the extent to which the candidate has met the assessment objectives overall and it might conceal weakness in one aspect of the examination which is balanced by above average performance in some other aspect. Learners will be graded on a scale of A*-G. The descriptors for judgmental thresholds (A,C,E,G) are given below. At Grade A the learner will be expected to show: A B C D Knowledge with understanding 1. an excellent ability to identify detailed facts and principles in relation to the content of the syllabus. 2. an excellent ability to describe graphs, diagrams and tables. 3. an excellent ability to define the concepts of the syllabus. Application 1. a thorough ability to apply knowledge and understanding, using terms, concepts, theories and methods effectively to address business problems and issues. 2. an excellent ability to apply this information in a logical and well-structured manner to illustrate the application of a piece of economic analysis to a particular situation. Analysis 1. a thorough ability to classify and comment on economic information. 2. an excellent ability to distinguish between evidence and opinion. Judgement and decision making 1. a good ability to discriminate between complex and varied information and to distinguish clearly between facts and opinions. 2. a good ability to make clear, reasoned judgements and communicate them in an accurate and logical manner. 3. a good ability to make rational and consistent choices in matters where economic influences are at work. At Grade C the learner will be expected to show: A B C D Knowledge with understanding 1. a good ability to identify detailed facts and principles in relation to the content of the syllabus. 2. a good ability to describe graphs, diagrams and tables. 3. a good ability to define the concepts of the syllabus. Application 1. a good ability to classify and comment on business information. 2. a good ability to apply this information to illustrate the application of a piece of economic analysis to a particular situation. Analysis 1. a good ability to use and comment on information presented in various forms. 2. a sound ability to apply and make reasoned judgements. Judgement and decision making 1. a sound ability to discriminate between more complex and varied information and to distinguish clearly between facts and opinions. 2. a sound ability to evaluate and make reasoned judgements. 3. a sound ability to make rational and consistent choices in matters where economic influences are at work. NSSCO Business Studies Syllabus, NIED

25 At Grade E the learner will be expected to show: A B C D Knowledge with understanding 1. some ability to identify detailed facts and principles in relation to the content of the syllabus. 2. some ability to describe graphs, diagrams and tables. 3. some ability to define the central concepts and ideas of the syllabus. Application 1. some ability to classify data and comment on economic information. 2. some basic ability to apply the tools of economic analysis to particular situations. Analysis 1. some basic ability to use and comment on information presented in various forms. 2. some ability to apply and make reasoned judgements. Judgement and Decision making 1. some basic ability to discriminate between more complex and varied information and to distinguish clearly between facts and opinions. 2. some basic ability to make rational and consistent choices in matters where economic influences are at work. At Grade G the learner will be expected to show: A B C D Knowledge with understanding 1. a limited ability to identify specific facts, conventions and techniques in relation to the content of the syllabus. 2. a limited familiarity with definitions of the central concepts and ideas of the syllabus. Application 1. a limited ability to classify and comment on business information. 2. a limited ability to apply the tools of economic analysis to particular situations. Analysis 1. a limited ability to use and comment on information presented in various forms. 2. a limited ability to apply and make reasoned judgements. Judgement and decision making 1. a limited ability to discriminate between more complex and varied information and to distinguish clearly between facts and opinion. 2. a limited ability to make rational and consistent choices in matters where economic influences are at work. NSSCO Business Studies Syllabus, NIED

26 9. GLOSSARY OF TERMS What follows are words frequently used in NSSC Business Studies which may present difficulties in understanding/applying. acquisition AIDA model annual general meeting (AGM) appraisal arbitrator balance of payments brand image brand loyalty brand name break-even business decisions cash flow forecast centralised chain of command closed shop conglomerate integration consumer panels contribution corporation tax cost-benefit analysis craft union when one business buys out the owners of another business which then becomes part of the predator business, i.e. the firm has taken over. Also called takeover a simple way of planning an advert s design: it stands for attention, interest, desire, action a legal requirement for all companies; all shareholders may attend. They vote on who they want to have on the board of directors for the coming financial year and on other issues raised by the board or themselves, method of assessing the effectiveness of an employee, usually involving an interview with a senior member of staff a person who listens to both sides in an industrial dispute (trade union and management) and then gives a ruling of what the arbitrator thinks is fair to both sides the record of the difference between a country s exports and imports where a product is given an image or identity to distinguish it from its competitors brands when customers keep buying the same brand again and again instead of choosing a competitor s brand the unique name of a product that distinguishes it from other brands the quantity of sales at which total costs equals total revenue these include strategic decisions (very important ones which can affect the overall success of the business), tactical decisions (those which are taken more frequently and which are less important) and operational decisions (day-to-day decisions which will be taken by lower-level managers) an estimate of future inflows and outflows of a business, usually on a monthly basis a management structure in which most decisions are taken at the centre, or at higher levels of management a structure within an organisation which allows instructions to be passed down from senior management to lower levels of management all employees must be a member of the trade union a firm mergers with or takes over another firm in a completely different industry. Also known as diversification groups of people who agree to provide information about a specific product or general spending patterns over a period of time the selling price of a product less its variable cost the tax paid by limited companies on their profits the valuation by a government agency of social and private costs and benefits resulting from a decision a trade union which represents a particular type of skilled worker NSSCO Business Studies Syllabus, NIED

27 de-industrialisation decentralised delegation desk research development area direct costs direct taxes diseconomies of scale dividends division of labour occurs when there is a decline in the importance of the secondary (or manufacturing) sector of industry in a country a management structure in which many decisions are not taken at the centre of the business but are delegated to lower levels of management giving a subordinate the authority to perform particular tasks (NB it is the authority to perform a task which is being delegated not the final responsibility) the use of information that has already been collected and is available for use by others. Also called secondary research a region of a country where businesses will receive financial support to establish themselves (often regions of high unemployment) costs that can be directly related to or identified with a particular product or department. These costs vary with the number of items produced or sold and is also known as variable costs taxes paid directly from incomes, such as income tax or profits tax the causes of average cost increases which a business experiences as it grows beyond a certain scale payments made to shareholders from the profit of a company after it has paid corporation tax when the production process is split up into different tasks and each worker performs one of these tasks. Also known as specialisation economic growth when a country s gross national product increases more goods and services are produced than in the previous year economies of scale the causes of average cost reductions which a business experiences as it increases its scale of operations~ employers association a group of employers join together to give benefits to their members exchange rate appreciation when the value of a country s currency rises compared to other currencies exchange rate depreciation when the value of a country s currency falls compared to other currencies exchange rates the price of one currency in terms of another, e.g. 1:N$ 12.5 external benefits the gains to society resulting from a business decision. Also known as social benefits external costs the cost paid by the rest of society, rather than the business as a result of a business decision. Also known as social costs external growth occurs when a business takes over or merges with another business. Often called integration as one firm is integrated into another one field research final accounts fixed costs the collection and collation of original data via direct contact with potential or existing customers. Also called primary research accounts produced at the end of the financial year giving details of the profit or loss made over the year and the worth of the business costs which do not vary with the items produced or sold in the short term. Also called indirect costs or overheads NSSCO Business Studies Syllabus, NIED

28 forecasts freight fringe benefits general union globalisation go slow haulage horizontal integration indirect taxes induction training industrial union inflation informative advertising internal growth predictions of the future e.g. likely future changes in the size of the market a term used to describe bulk goods or products while they are being transported non-monetary rewards given to employees a trade union which represents workers (often unskilled but also semi-skilled) from a variety of trades increase in world wide competition between businesses a form of industrial action when the employees do their normal tasks but much slower than usual the transport of bulk goods or products; which usually refer to road transport but can also refer to rail transport one firm mergers with or takes over another one in the same industry at the same stage of production taxes added to the prices of goods and services. Tax payers pay the tax as they purchase the goods or services, e.g. value added tax (VAT) introduction given to a new employee, explaining the firm s organisational structure, activities and procedures a trade union which represents all types of workers in a particular industry the increase in the average price level of goods and services over time advertising where the emphasis of advertising or sales promotion is to give full information about the product occurs when a business expands its existing operations job analysis the responsibilities and tasks relating to a job, are identified and recorded job description document which outlines the responsibilities and duties expected to be carried out by someone employed to do a specific job job production a single product is made at a time, usually to the customer s exact specifications job satisfaction enjoyment derived from feeling that you have done a good job job specification document which outlines the requirements, qualifications and expertise required from a person to do a specific job limited liability line managers line of best fit liquidity lock-out marginal costs market-orientated where the owners of a company cannot be held responsible for the debts of the company they own managers with direct authority over subordinates in their department; they are able to take decisions in their departmental area a line drawn through a series of points, e.g. sales data, which best shows the trend of that data the ability of a business to pay back its short-term debts employees are locked out of their workplace extra costs which a business will incur by producing one more unit of output a description applied to a business in which market research is carried out to find out consumer wants before the product is developed and produced NSSCO Business Studies Syllabus, NIED

29 market segmentation marketing merger monopoly multinational business net cash flow no-strike agreement non-co-operation the market is divided up into groups of consumers who have similar needs the management process which identifies consumer wants and anticipates their future wants when the owners of two businesses agree to join their firms together to make one business a business which controls all of the market for a product those with factories, production or service operations in more than one country. Also known as transnational businesses the difference, each month, between inflows and outflows trade unions and management agree to have pay disputes settled by an independent arbitrator instead of taking strike action a form of industrial action when employees refuse to comply with new working practices organisational structure the levels of management and divisions of responsibilities within an organisation overtime ban a form of industrial action when employees refuse to work longer than their normal working hours packaging persuasive advertising picketing planning permission private benefits private costs product life cycle product-orientated productivity agreement prospectus public relations questionnaires quota sample the physical container or wrapping for a product, also used for promotional purposes advertising or promotion which tries to persuade the consumer that they really need the product and should buy it a form of industrial action, employees who are taking action stand outside their workplace to prevent or protest at delivery of goods, arrival and departure of other employees when a government body allows a business to build a factory or office in a particular location the financial gains made by a business as a result of a business decision the costs of a business decision actually paid for by the business the stages a product will pass through from its introduction, through its growth until it is mature and then finally declines a description applied to a business whose main focus of activity is on the product itself. See also marketorientated workers and management agree to an increase in benefits, in return for an increase in productivity a detailed document issued by the directors of a company when they are converting it to public limited status. It is an invitation to the general public to buy shares in a newly formed plc policies, strategies or measures taken to promote a good image for a company and/or its products a set of questions to be answered as a means of collecting data for market research people selected on the basis of certain characteristics (e.g. age, gender, income) as a source of information for market research NSSCO Business Studies Syllabus, NIED

30 random sample redundancy revenue revenue expenditure shareholders single union agreement span of control staff managers strike target audience target market trade union trend unemployment unit cost vertical integration white-collar union work to rule worker participation people selected at random as a source of information for market research when employees lose their jobs because they are no longer needed, rather than due to any aspect of their work being unsatisfactory the income during a period of time from the sale of goods and services money spent on day to day expenses which do not involve the purchase of a long-term asset, e.g. wages and rent the owners of a limited company; they have bought shares which represent part ownership of a company a firm will deal with one particular trade union only and no other the number of subordinates working directly under a manager specialist advisers who provide support to line managers and to the board of directors a form of industrial action where employees refuse to work people who are potential buyers of a product or service the group of people for whom a particular product is designed a group of workers join together to ensure their interests are protected the underlying movement or direction of data over time is when people who are willing and able to work, but cannot find a job the cost of producing one item, i.e. total cost of production divided by total output when one firm mergers with or takes over another one in the same industry but at a different stage of production. Vertical integration can be forward (a firm integrates with another firm which is at a later stage of production) or backward (a firm integrates with another firm at an earlier stage of production, i.e. closer to the raw materials supplies a union which represents non-manual workers (office workers, management and professional staff) a form of industrial action when rules are strictly obeyed so that work is slowed down the employees contribute to decision-making in the business NSSCO Business Studies Syllabus, NIED

31 ANNEXURE A: EXPLANATORY NOTES TO TEACHERS Teachers should note that this syllabus (NSSC Lower Level) seems the same as that for NSSC Higher Level, but there are differences in these two syllabuses. This (NSSC Lower Level) syllabus allows for teaching at a more elementary level whereas the NSSC Higher Level allows for teaching at a more advanced level. Thus some topics/subtopics are to be taught in lesser detail in this ((NSSC Lower Level) syllabus than in the NSSC Higher Level syllabus. Therefore, some topics and/ or subtopics to be taught in the NSSC Higher Level syllabus should not be taught in this (NSSC Lower Level) syllabus, e.g. scarcity and opportunity cost as well as breakeven charts, to mention but a few. Teachers are therefore encouraged to compare the two syllabuses before commencing with their teaching, in order to know which topic is to be taught at which level and into how much depth. Teachers should also take note of the Assessment Objectives and more specifically pay attention to their weightings. In Paper 1 the weighting for Assessment Objective A (Knowledge with understanding) is 40% but in Paper 2 more emphasis is placed on the more complicated Assessment Objective D (Judgement and decision making) which is 30%, and less emphasis on Assessment Objective A (Knowledge with understanding) which is 20%. Candidates should be encouraged to write in context, especially in Paper 2 where most of the questions are based on the information provided in the case studies, or else they will lose marks. It must also be stressed that this (NSSC Lower Level) syllabus is designed for Namibian learners, and as such, the learning content should be taught in the Namibian context, thus explanations and examples must be responsive to Namibia, e.g. trade unions, the role of the government and the community, entrepreneurship, scale of operations, locating factors, exchange rates, to mention but a few. Learners should from the very start be made aware of key examination words to enable them to know how to answer a specific question in a test or examination. The following guide should help Teachers. Key examination words candidates need to know State or give As in State three factors which might influence the price of a product. These two words mean write down without explaining or expanding upon three factors which might influence the price of a product. List As in List four reasons why one firm may merge with another. This is similar to state. Write down, without discussing or expanding upon, four reasons why firms may merge. Candidates could number their list 1-4. Too often candidates write far too much for both state and list questions. Explain As in Explain your answer. Here, the examiner is asking the candidate to give more detail than just listing or stating points. A common example of this type of question would ask the candidate to State and explain three advantages to a business of developing a new product. Here the candidates are expected to list the three factors which they consider to be advantages and then go on to explain why they think these are advantages to the business. One of the three advantages the candidates give in their answer might be: New products will take the place of old products in the market. The explanation could be: If a business develops new products NSSCO Business Studies Syllabus, NIED

32 then these products can take over from older products, the sales of which may be falling due to loss of consumer interest. The candidates will then need to think of two other advantages and to list and explain them in the same way. Analyse As in Analyse the impact of a new competitor opening a shop close to a business which sells fresh flowers. This also requires an explained answer. Candidates will have to examine or explain how a new competitor will affect an existing business. A possible answer could be: As the new competitor is trying to get established, it may offer fresh flowers at very low prices to start with. This could force the existing business to lower prices too. Sales could increase but the profit on each sale will be less than before. Evaluate As in Evaluate the arguments for and against the business locating its factory in the south of the country. This is asking the candidates to show advanced skills. Candidates must first list and explain/analyse the advantages and disadvantages. Then candidates should weigh them and come to a final recommendation. The final sentence may, for example, read: On the one hand, there are advantages to building in the south, such as cheap land. On the other hand, there are disadvantages, such as the distance from consumers. However, on balance I am of the opinion that the factory should be built there (in the south of the country). Other key examination words include: Define, describe, outline, calculate, comment, determine, illustrate, compare, contrast, distinguish, choose, assess, consider, suggest, discuss, etc. NSSCO Business Studies Syllabus, NIED