Business Decision Areas (Higher) Business Management (Higher)

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1 National Unit Specification: general information NUMBER D COURSE Business Management (Higher) SUMMARY This unit is designed to enable candidates to analyse the decisions which businesses must take about their structure and operational activities in order to ensure that they meet their objectives. OUTCOMES 1 Report on the internal organisation of business enterprises. 2 Analyse marketing decisions. 3 Interpret financial information used in business. 4 Analyse human resource decisions. 5 Analyse operations decisions. RECOMMENDED ENTRY While entry is at the discretion of the centre, candidates will normally be expected to have attained one of the following: Standard Grade Business Management at Credit level Intermediate 2 Business Management the component units of Intermediate 2 Business Management - Business Enterprise (Int 2) and Business Decision Areas (Int 2) and Standard Grade English at Credit level, or Intermediate 2 English or its component units. Administrative Information Superclass: AA Publication date: December 1999 Source: Scottish Qualifications Authority Version: 04 Scottish Qualifications Authority 1999 This publication may be reproduced in whole or in part for educational purposes provided that no profit is derived from reproduction and that, if reproduced in part, the source is acknowledged. Additional copies of this unit specification can be purchased from the Scottish Qualifications Authority. The cost for each unit specification is 2.50 (minimum order 5). 1

2 National Unit Specification: general information (cont) CREDIT VALUE 2 credits at Higher. CORE SKILLS This unit gives automatic certification of the following: Complete core skills for the unit None Core skills components for the unit Critical Thinking H Reviewing and Evaluating H Additional information about core skills is published in Automatic Certification of Core Skills in National Qualifications (SQA, 1999). Business Management: Unit Specification Business Decision Areas (H) 2

3 National Unit Specification: statement of standards Acceptable performance in this unit will be the satisfactory achievement of the standards set out in this part of the unit specification. All sections of the statement of standards are mandatory and cannot be altered without reference to the Scottish Qualifications Authority. OUTCOME 1 Report on the internal organisation of business enterprises. (a) Analysis of organisational structure is accurate with respect to the grouping of activities within an organisation. (b) Internal organisation of a business enterprise is analysed accurately and related to different forms of organisational structure. Grouping of activities: function, product/service, customers, place/territory, technology. For PC (b) two different forms of organisational structure are required. OUTCOME 2 Analyse marketing decisions. (a) Evaluation of the role and importance of marketing to business is accurate and makes reference to product and market orientation. (b) Analysis of the marketing decisions of an organisation is accurate with respect to its marketing mix and target markets. (c) Evaluation of the product mix of an organisation is accurate and makes reference to new product development and ways of prolonging the life of existing products. (d) Analysis of reasons for market research is accurate and makes reference to market research techniques. Marketing mix: price, product, place, promotion. Target markets: undifferentiated marketing, differentiated marketing, market segmentation, niche marketing. Business Management: Unit Specification Business Decision Areas (H) 3

4 National Unit Specification: statement of standards (cont) For PC (a) reference should be made to three different organisations. For PC (b) the evidence should cover two aspects of each element of the marketing mix. For PC (d) the evidence should cover two market research techniques. OUTCOME 3 Interpret financial information used in business. (a) Interpretation of cash flow information is accurate and related to possible cash flow problems. (b) Appropriate financial ratios are used correctly to accurately interpret the performance and liquidity of a business. (c) Explanation of budgets is accurate and refers to their role in monitoring and controlling business activities. For PCs (a), (b) and (c) the evidence should be related to the current situation of a business. It should be derived from information presented to candidates and does not need to cover the compilation of a cash flow statement, calculation of ratios or the preparation of a budget. For PC (b) the evidence should cover one example of a ratio related to separate examples of performance and liquidity. OUTCOME 4 Analyse human resource decisions. (a) Explanation of the main stages in the recruitment process is accurate and related to the requirements of a business enterprise. (b) Evaluation of the selection process is accurate and makes reference to selection methods and their effectiveness in securing a suitable appointment for a business enterprise. (c) Analysis of employee relations in a business organisation is accurate and makes reference to employee representation. (d) References to current legislative requirements affecting the management of human resources in business enterprises are accurate. Business Management: Unit Specification Business Decision Areas (H) 4

5 National Unit Specification: statement of standards (cont) Stages in recruitment process: job analysis, job description, person specification, internal sources, external sources. For PC (b) evidence should relate to three different selection methods. For PC (d) evidence should relate to three examples of current legislation. OUTCOME 5 Analyse operations decisions. (a) Analysis of the importance of purchasing to a business is accurate and makes reference to the factors which influence purchasing decisions. (b) Analysis of factors affecting the quality of operations of an organisation is accurate with respect to organisational and customer requirements. (c) Analysis of different types of production is accurate with respect to the product or service produced. Types of production: job, batch, flow. For PC (a) and (b) the evidence should include coverage of three factors in each case. Business Management: Unit Specification Business Decision Areas (H) 5

6 National Unit Specification: support notes This part of the unit specification is offered as guidance. The support notes are not mandatory. While the time allocated to this unit is at the discretion of the centre, the notional design length is 80 hours. GUIDANCE ON CONTENT AND CONTEXT FOR THIS This unit is closely linked to Business Decision Areas (Int 2). Hence, the context of both is very similar, although candidates taking this unit are expected to demonstrate a wider range of contexts, for example, in the type of organisations covered, and to have mastered a greater amount of content. The emphasis in this unit is on analysis rather than on explanation which is required at Intermediate 2 level. This unit deals with decision making in all types of business organisations, for example, self employed, private limited company, public limited company, voluntary organisation, charity, public corporation, government-funded service provider, government executive agency and quango. Practical examples relevant to business in the contemporary UK, and Scotland in particular, should be used wherever possible and it should be possible to refer to a number of different types of organisation to illustrate the application of the ideas in the unit. GUIDANCE ON LEARNING AND TEACHING APPROACHES FOR THIS The unit offers considerable scope for the use of case studies, project work and practical investigations, as well as visits to business enterprises (possibly via work experience) and the use of visiting speakers. Candidates can also be encouraged to make use of their own experiences as customers and potential employees, and to keep up to date with current developments via the business section of newspapers, business magazines, etc. The use of information technology to enhance the generation of evidence is important and access to appropriate software will greatly assist candidates to produce suitable evidence to cover all aspects of the unit. The emphasis throughout should be on active learning. One way to achieve this may be through the use of business games which might offer additional opportunities to integrate all parts of the unit, and make use of information technology, as well as giving practical experience in decision making. The unit can be integrated with Business Enterprise (H) through the use of the same case study material, etc. Outcomes 2 and 3 of Business Enterprise (H), for example, provide some of the underpinning knowledge and understanding for this unit. GUIDANCE TO APPROACHES TO ASSESSMENT FOR THIS Instruments of assessment will normally be extended response questions which could be based on case study material and could involve decision-making exercises. Some may be fairly substantial while others may be relatively small. It is likely that the most suitable combination will arise from the delivery methods chosen. The nature of the unit is such that an outcome by outcome assessment approach is less likely to be appropriate than a more holistic strategy. Business Management: Unit Specification Business Decision Areas (H) 6

7 National Unit Specification: support notes (cont) A possible assessment strategy might be as follows: An extended response question based on case study stimulus material to cover Outcome 2 (marketing) and Outcomes 4 and 5 (human resource management and operations) which could be linked, for example, by referring to different parts of the same organisation. Outcome 3 could be assessed via extended response questions based on a practical exercise related to the financial affairs of an organisation, possibly the same one used for other outcomes. Outcome 1 could be assessed in conjunction with any of the above, although it may be more practical to cover it as part of the final instrument of assessment (probably on Outcomes 4 and 5), when candidates could review the internal organisation of an enterprise as a whole and relate it to different forms of organisational structure. SPECIAL NEEDS This unit specification is intended to ensure that there are no artificial barriers to learning or assessment. Special needs of individual candidates should be taken into account when planning learning experiences, selecting assessment instruments or considering alternative outcomes for units. For information on these, please refer to the SQA document Guidance on Special Assessment and Certification Arrangements for Candidates with Special Needs/Candidates whose First Language is not English (SQA, 1998). Business Management: Unit Specification Business Decision Areas (H) 7