-SQA- SCOTTISH QUALIFICATIONS AUTHORITY HIGHER NATIONAL UNIT SPECIFICATION GENERAL INFORMATION

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1 -SQA- SCOTTISH QUALIFICATIONS AUTHORITY HIGHER NATIONAL UNIT SPECIFICATION GENERAL INFORMATION -Unit Number Superclass- EB -Title- THE ORGANISATION AND ITS COMPETITIVE ENVIRONMENT -DESCRIPTION GENERAL COMPETENCE FOR UNIT: Analysing the economic behaviour of firms in the UK with respect to the competitive environment in which they operate. OUTCOMES 1. advise on the application of economic principles to the decision making processes of an organisation; 2. evaluate developments in the structure of industry in the UK; 3. predict the impact on organisations and consumers of government policy on industry. CREDIT VALUE: 1 HN Credit ACCESS STATEMENT: Access to this unit is at the discretion of the centre. However, it would be beneficial if candidates had skill in written communication and some previous study experience of economics. This may be evidenced by possession of National Certificate module Communication 3 and one or more of Economics of the Market, Micro Economic Concepts and Economic Structure of Industry or HN unit The Economic Environment For further information contact: Committee and Administration Unit, SQA, Hanover House, 24 Douglas Street, Glasgow G2 7NQ. Additional copies of this unit may be purchased from SQA (Sales and Despatch section).. At the time of publication, the cost is 1.50 (minimum order 5).

2 HIGHER NATIONAL UNIT SPECIFICATION STATEMENT OF STANDARDS UNIT NUMBER: UNIT TITLE: THE ORGANISATION AND ITS COMPETITIVE ENVIRONMENT Acceptable performance in this unit will be the satisfactory achievement of the standards set out in this part of the specification. All sections of the statement of standards are mandatory and cannot be altered without reference to SQA. OUTCOME 1. ADVISE ON THE APPLICATION OF ECONOMIC PRINCIPLES TO THE DECISION MAKING PROCESSES OF AN ORGANISATION PERFORMANCE CRITERIA (a) (b) (c) Explanations of market structure are accurate and in accordance with accepted theoretical criteria. Analysis of the behaviour of firms in each of the market structures is accurate with respect to the determination of price and output in the short and the long run. Evaluation of the role of profit in the decision-making process of an organisation is accurate in relation to criticisms of profit maximisation and alternatives to profit maximisation. RANGE STATEMENT Market structures: perfect competition; monopoly; oligopoly. Alternatives to profit maximisation: cost-plus pricing; sales maximisation; satisfying. EVIDENCE REQUIREMENTS Diagrammatic and written evidence of the short and long run behaviour of firms in perfect competition and monopoly. Written evidence (including diagrammatic evidence if appropriate) on one approach to oligopoly behaviour. Evidence should ensure that explanation, analysis and evaluation meet all aspects of the performance criteria. 2

3 OUTCOME 2. EVALUATE DEVELOPMENTS IN THE STRUCTURE OF INDUSTRY IN THE UK PERFORMANCE CRITERIA (a) (b) (c) Evaluation of methods of expansion by firms is accurate in respect of their effects on firms and consumers. Analysis of the role of small firms is accurate in the context of their effects on particular industries, consumers and the economy as a whole. Evaluation of multinational companies is accurate with respect to their effects on particular industries, consumers and the economy as a whole. RANGE STATEMENT Industry in the UK: primary; secondary; tertiary. Methods of expansion: horizontal integration; vertical integration; diversification. EVIDENCE REQUIREMENTS Oral or written evidence of explanation, evaluation and analysis which meets all aspects of the performance criteria. At least three effects should be examined where analysis or evaluation requires that effects be considered. OUTCOME 3. PREDICT THE IMPACT ON ORGANISATIONS AND CONSUMERS OF GOVERNMENT POLICY ON INDUSTRY PERFORMANCE CRITERIA (a) Explanation of reasons for government intervention or non-intervention in markets is accurate and includes specific illustrative examples. (b) Evaluation of policies designed to affect the behaviour of firms or industries is accurate in relation to appropriate economic theory and to their effectiveness in achieving government objectives. (c) Assessment of policies designed to affect the behaviour of firms or industries is accurate in terms of possible effects on economic agents in the UK. 3

4 RANGE STATEMENT Policies designed to affect the behaviour of firms or industries: monopolies and restrictive practices; privatisation; location of industry. Economic agents: consumers; private sector organisations; public sector organisations. EVIDENCE REQUIREMENTS Oral or written evidence that explanation, evaluation and assessment meet all aspects of the performance criteria. At least two effects on economic agents should be referred to with respect to each aspect of policy. MERIT Pass with merit may be awarded to candidates who have successfully achieved all outcomes and performance criteria and who, in so doing, consistently demonstrate superior performance with respect to some or all of the following: (a) (b) (c) (d) (e) (f) (g) consistently strong recognition and exposition of the relationship between economic theory and practice; a high level of coherence in analysis and evaluation; giving particularly suitable advice especially with respect to its basis in economic theory; consistent use of material from a wide range of sources; originality of approach; consistent ability to consider a wide range of effects on relevant economic agents; integration of material involving several aspects of the competitive environment of the firm. ASSESSMENT In order to achieve this unit, candidates are required to present sufficient evidence that they have met all the performance criteria for each outcome within the range specified. Details of these requirements are given for each outcome. The assessment instruments used should follow the general guidance offered by the SQA assessment model and an integrative approach to assessment is encouraged. Accurate records should be made of the assessment instruments used showing how evidence is generated for each outcome and giving marking schemes and/or checklists, etc. Records of candidates' achievements should also be kept. These records will be required for external verification. 4

5 SPECIAL NEEDS Proposals to modify outcomes, range statements or agreed assessment arrangements should be discussed in the first place with the external verifier. Copyright SQA 1993 Please note that this publication may be reproduced in whole or in part for educational purposes provided that: (i) (ii) no profit is derived from the reproduction; if reproduced in part, the source is acknowledged. 5

6 HIGHER NATIONAL UNIT SPECIFICATION SUPPORT NOTES UNIT NUMBER UNIT TITLE THE ORGANISATION AND ITS COMPETITIVE ENVIRONMENT SUPPORT NOTES: This part of the unit specification is offered as guidance. None of the sections of the support notes is mandatory. NOTIONAL DESIGN LENGTH: SQA allocates a notional design length to a unit on the basis of the time estimated for achievement of the stated standards by a candidate whose starting point is as described in the access statement. The notional design length for this unit is 40 hours. The use of notional design length for programme design and timetabling is advisory only. CONTENT/CONTEXT Candidates should be encouraged to concentrate on the application of economic concepts. Several parts of the unit specification imply some underpinning knowledge. The following gives some examples of this and indicates other material which might be relevant in the delivery of the unit. Outcome 1 Oligopoly could be analysed by price leadership, game theory, kinked demand curve, etc. Split between ownership and control. Outcome 2 Measures of concentration (eg: concentration ratios) de-industrialisation and increase in the tertiary sector. Merger and take-over. Outcome 3 Role of local and national agencies (eg: LECs, Scottish Enterprise, local authorities) in influencing firms (eg: location decisions). APPROACHES TO GENERATING EVIDENCE Candidates should be encouraged to relate the evidence that they produce to current happenings in British industry, particularly where locally based firms are involved. The use of case studies, newspaper and magazine articles, etc. could help to achieve this and there may be opportunities for candidates to work in small groups. ASSESSMENT PROCEDURES A range of assessment methods can be used. They include restricted response and extended response questions as well as assignments based on case study material. There is some limited scope for multiple choice questions as well as exercises involving the labelling of diagrams, completing tables, etc. It is likely that a mix of assessment instruments will prove most satisfactory. 6

7 Merit could be assessed by a separate instrument of assessment if desired but could also be determined on the basis of performance during the on-going assessment procedures. In these circumstances, the conditions for merit are most likely to be achieved in assignment work built around extended response answers, perhaps as part of a case study. PROGRESSION This unit is designed to stand alone. However it is expected that most candidates will also undertake The Economic Environment. For these candidates it would be beneficial to take this unit in conjunction with, or as a follow-up to, REFERENCES 1. Guidelines for Module Writers. 2. SQA's National Standards for Assessors and Verifiers. 3. For a fuller discussion on assessment, please refer to SQA's Guide to Assessment. Copyright SQA 1993 Please note that this publication may be reproduced in whole or in part for educational purposes provided that: (i) (ii) no profit is derived from the reproduction; if reproduced in part, the source is acknowledged. 7