GCSE Business New Specification Briefing

Transcription

1 GCSE Business New Specification Briefing An overview of the three main exam board specifications for GCSE Business (for first teaching from September 2017) Author: tutor2u GCSE Business Team

2 tutor2u & the new GCSE Business Specifications The tutor2u GCSE Business team is already working hard on a comprehensive series of teaching & learning resources to support the new specifications. We anticipate that these will be available early in 2017 and certainly well before you dive into the detailed planning for Sept 2017 and beyond. Our resources will include: Digital Study Companions for each Unit and Theme Lesson and Topic PowerPoints Key Topic Worksheets and Case Studies Unit Assessments and other Exam Practice Material We highly recommend that you defer any commitment to buying expensive textbooks until you have taken a look at the tutor2u resources for new GCSE Business. In addition, the tutor2u team will be providing comprehensive webinar and CPD support for all colleagues preparing to deliver the new specifications. Please make sure you are signed up for a my tutor2u account to receive resource updates + join one of our GCSE Business Teacher Groups on Facebook: AQA GCSE Business Teacher Group Edexcel GCSE Business Teacher Group

3 Introduction & Overview The specifications for the new GCSE Business qualification (for first teaching from September 2017) were accredited during the summer/early September This document provides an overview of the new GCSE Business specifications for AQA and Pearson Edexcel and OCR. Background to the new GCSE in Business All awarding bodies were instructed to revise their GCSE specifications in Business by the Department for Education. This means that there are certain elements/topic areas that must be included in every business specification, regardless of the specific exam board. The subject content sets out the knowledge, understanding and skills common to all GCSE specifications in business. The DfE guidance on assessment objectives as well as content, ensures progression from key stage 3 national curriculum requirements, and the possibility for progression to A level. Details of this framework is below: Apply knowledge and understanding to different business contexts. These include businesses ranging from small enterprises to large multinationals and businesses operating in local, national and global contexts The interdependent nature of business activity, influences on business, business operations, finance, marketing and human resources, and how these interdependencies underpin business decision making How different business context affect business decisions The use and limitation of quantitative and qualitative data in making business decisions Develop problem solving and decision making skills relevant to business Investigate, analyse and evaluate business opportunities and issues Make justified decisions using both qualitative and quantitative data, including its selection of, interpretation, analysis and evaluation, and the application of appropriate quantitative skills Use business terminology to identify and explain business activity Apply business concepts to familiar and unfamiliar contexts Quantitative skills: Calculations in a business context, including: Interpretation percentages and percentage changes averages revenue, costs and profit gross profit margin and net profit margin ratios average rate of return cash-flow forecasts, including total costs, total revenue and net cash flow information from graphs and charts profitability ratios (gross profit margin and net profit margin) financial data, including profit and loss, average rate of return and cash-flow forecasts marketing data, including market research data

4 market data, including market share, changes in costs and changes in prices Which exam boards are currently most popular for GCSE Business? Candidate entry numbers for the main exam boards in summer 2016 were: Candidates Share Board Specification Number % Edexcel Business Studies (Full) 35, % AQA Business Studies (Full) 23, % OCR Business Studies (Full) 11, % Edexcel Applied Business (Double Award) 8, % AQA Business & Communication Systems (Full) 7, % WJEC Business Studies (Full) 5, % Edexcel Business Studies & Econ (Full) 4, % OCR Applied Business (Double Award) 2, % Edexcel Business & Communication Systems (Full) 2, % WJEC Applied Business (Double Award) 1, % OCR Business & Communication Systems (Full) 1, % AQA Applied Business (Double Award) 1, % Total 104, % Key Point Summary AQA key points: - Introduction of MCQs - Leads well into the A level - Longer time allowed in the exam to answer the same total number of marks as Edexcel (this is key, as timing is a real issue at GCSE) - Case studies, according to the specimens, are longer for AQA, perhaps to indicate extra time reading KEY POINT English skills need to be strong - Each case study is split into two sections; students will read one part and then answer a series of questions based on that section helps with issue of literacy - Appears to be more potential/topic areas for quantitative skills to be assessed - Clear split in terms of which functional areas appear on which paper, making it easier for students to prepare for the terminal exams finance only appears on one paper which is together with marketing, to avoid students being put off by the finance topics and traditionally students like marketing, why these two functional areas are coupled together - Quant skills can be tested in any area e.g. staff discount calculation linked to HR; students must not think that because the finance section is only in one exam, there will not be calculation or interpretation of quant skills in other parts of the paper - A mixture of different type/size businesses will appear in each exam i.e. small businesses will not just appear in paper 1 and large businesses will not just appear in paper 2 - Moves away from looking at functional areas in isolation and promotes the integrated nature of business

5 - Lots of new and challenging topics: influences on business is consistent across both papers, economic aspects new and more emphasis on ethical/environmental influences on business/boston Matrix - The new course aspires to link business theory to real life content, to encourage students to listen to the business news - Will attempt to use real life businesses in assessment (dependent on copyright) Edexcel key points: - Shorter exams compared to AQA 90 mins compared to 105 mins, but same amount of marks for AQA and Edexcel - Consistent command words used across both papers - Case studies are written on one page; no split of text like AQA; case studies are shorter not so much reading - Appear to be fewer places for quantitative skills to be assessed - The specification is comparable with the legacy; recognise the structure of the old spec in the new spec; so can make the transition seamless; new units are investigating small businesses (theme 1) and building a business (theme 2) old units are Introduction to small business (unit 1) and building a business (unit 3) - Businesses used are real businesses in the exam and will focus on contemporary business issues - Questions become increasingly challenging as candidates move through the papers - Candidates can easily be prepared for the exams as theme 1 assessed in paper 1 and theme 2 assessed in paper 2 - Small businesses assessed in paper 1, focus on looking at business as an entrepreneur, whereas larger businesses (how a business develops past the start-up phase) are assessed in paper 2; candidates may be better prepared for the exam if one size of business is in each exam OCR Key Points: Introduction of MCQ s in both papers Exams are 90 minutes, same as Edexcel compared with 105 minutes for AQA Mark allocation for per paper is 80 marks compared with AQA 105 marks and Edexcel 90 marks for both papers Consistent command words across both papers. Three pieces of short text stimulus material in each paper -all based on real businesses. The specification more streamlined and coherent compared with the OCR legacy. The points to include section on the specification adds clarity. Re-organisation and addition of new content has led to amplification of the finance (previously included in production) and the operations sections particularly. Less additional content compared to other boards. Easier transition from the legacy to the new specification perhaps? Certainly appears lighter with a number of topic omissions that are present in both the AQA and Edexcel specifications. E.g. product portfolio analysis and product life cycle are not included. For break-even analysis the OCR specification simply requires students to understand the concept of break-even, do a simple calculation of break-even quantity and understand the usefulness of break-even in business decision making. No mention of identifying the breakeven level of output and margin of safety from a chart. Does this mean this is easier to deliver or simply less robust?

6 All boards: Interesting and very useful to see exemplar answers included as part of the mark scheme. Useful annotation of the assessment objectives throughout. - Consistent papers in terms of marks, length and style for each exam board - Two case studies will appear in each paper for AQA and Edexcel, OCR have 3. - Levels based mark scheme: examiners will use a best fit approach to decide which level most closely describes the quality of the answer grading system - AOs weighting the same across exam boards: AO1 35% AO2 35% AO3 30% - No controlled assessment 100% exam - Introduction of quantitative skills (calculation and interpretation) minimum of 10% subject marks allocated to these skills (KS3 level) - More emphasis on the inter-related nature of business activity - Increased breadth and depth can be seen by the new content list and very little removal of topics, especially AQA - More content to cover, but with removal of the controlled assessment, there is time to deliver this - Without controlled assessment, there is the introduction of the 12 mark questions for AQA & Edexcel and 9 marks for OCR exam boards, encouraging the assessment of extended writing in the exam - Many materials/resources that teachers have developed already for legacy specifications will be valid for the new specs the choice may be decided by which exam board centres follow already? - Key to choice is the board that students already study at A level (if applicable), as the transition from GCSE to A level will be easier if exam boards are consistent so in some respects is the choice already made for centres if they operate at KS5? -

7 Appendix 1: Unit Overview AQA Pearson Edexcel OCR Number of Units Unit 1 Title & Code Paper 1: Influences of operations and HRM on business activity 8132/1 Paper 1: Investigating small business Paper 1: Business activity, marketing and people Unit 2 Title & Code Paper 2: Influences of marketing and finance on business activity 8132/2 Paper 2: Building a business Paper 2: Operations, finance and influences on business Unit 1 Paper: Content, Timing & Format What is assessed: Business in the real world Influences on business What is assessed: Theme 1 Investigating small business What is assessed: Business 1 Business Activity Marketing Business operations People Human resources 105 minutes: 90 marks/50% of GCSE Section A: mixture of MCQs and short answer questions (20 marks) Section B: one case study/data response stimuli with questions (approximately 34 marks) Section C: one case study/data response stimuli with questions (approximately 36 marks) 90 minutes: 90 marks Section A mixture of MCQs and short answer questions (35 Marks) Section B: short answer and extended-writing questions based on a business context (30 Marks) Section C: short answer and extended-writing questions based on a business context (25 marks) 90 minutes: 80 marks/50% of GCSE Section A MCQ (15 marks) Section B Mixture of short, medium and extend response questions using 3 case study/data response stimuli. (65 Marks)

8 Unit 2 Paper: Content, Timing & Format What is assessed: - Business in the real world - Influences on business - Marketing - Finance 105 minutes: 90 marks/50% of GCSE Section A: mixture of MCQs and short answer questions (20 marks) Section B: one case study/data response stimuli with questions (approximately 34 marks) Section C: one case study/data response stimuli with questions (approximately 36 marks) What is assessed: Spec Theme 2 Building a business 90 minutes: 90 marks Section A mixture of MCQs and short answer questions (35 Marks) Section B:) short answer and extendedwriting questions based on a business context (30 Marks) Section C: short answer and extendedwriting questions based on a business context : (25 marks) What is assessed: Business 2 Operations Finance Influences on Business Interdependent nature of business 90 minutes: 80 marks Section A MCQ s (15 marks) Section B short, medium and extend response questions using 3 case study/data response stimuli. (65 Marks)

9 Appendix 2: Specification Content Structure AQA Pearson Edexcel OCR The AQA GCSE specification is organised into 6 sections: 3.1 Business in the real world 3.2 Influences on business 3.3 Business operations 3.4 Human resources 3.5 Marketing 3.6 Finance The Pearson Edexcel GCSE specification is split into two Themes, each with separate subsections. Theme 1: Investigating small business 1.1 Enterprise and entrepreneurship 1.2 Spotting a business opportunity 1.3 Putting a business idea into practice 1.4 Making the business effective 1.5 Understanding external influences on business Theme 2: Building the business 2.1 Growing the business 2.2 Making marketing decisions 2.3 Making operational decisions 2.4 Making financial decisions 2.5 Making human resource decisions The OCR GCSE specification is split into two sections, Business 1 and Business 2 with separate sub-sections Business 1, business activity, marketing and people 1.Business activity 1.1 The role of business enterprise and entrepreneurship 1.2 Business planning 1.3 Business ownership 1.4 Business aims and objectives 1.5 Stakeholders in business 1.6 Business growth 2 Marketing 2.1 The role of marketing 2.2 Market research 2.3 Market segmentation 2.4 The marketing mix 3. People 3.1 The role of HR 3.2 Organisational structures and different ways of working 3.3 Communication in business 3.4 Recruitment and Selection 3.6 Training and development 3.7 Employment law Business 2: Operations, finance and influences on business

10 AQA Pearson Edexcel OCR 4.Operations 4.1 Production processes 4.2 Quality of goods and service 4.3 Consumer law 4.4 Business location 4.5 Working with suppliers 5 Finance 5.1 The role of the finance function 5.2 Sources of finance 5.3 Revenues, cost and profit and loss 5.4 Breakeven 5.5 Cash Flow 6 Influences on business 6.1 Ethical and environmental considerations 6.2 The economic climate 6.3 Globalisation 7 The interdependent nature of business

11 Appendix 3: What is new to each exam board? Updated New elements of specification content for each exam board compared with the existing GCSE legacy specifications are summarised below: AQA Pearson Edexcel OCR Factors of production Opportunity cost Primary, secondary and tertiary sectors of production Characteristics of an entrepreneur Not for profit organisations Fixed, variable and total costs (referred to but not named in the legacy spec) Economies and diseconomies of scale (referred to but not named in the legacy spec) Calculate and interpret average unit costs Digital technology/communication Increased emphasis on ethical and environmental considerations incl. sustainability The economic climate on business; interest rates, level of employment, consumer spending Globalisation including exchange rates The role of procurement: managing stock - just-in-case Logistics & factors affecting choice of suppliers Supply chain management Sales process Social media Contracts of employment Job share/zero hour contracts Types of segmentation Market size/market share Boston Matrix M-commerce Difference between cash and profit Average rate of return Break-even Why new business ideas come about The use of social media and reliability of data in market research The role and importance of a business plan Technology and business Business growth The impact of globalisation and how businesses compete internationally The role of procurement and the sales process Gross profit margin/net profit margin Average rate of return Understanding business performance Different ways of working Different job roles and responsibilities Effective training and development Interpretation of market data The role of human resources Difference between cash and profit Calculations of profit and loss gross and net. Calculation and interpretation of profitability ratios gross profit margin, net profit margin ARR Influence of technology on production and impact on business Quality of goods and services methods and importance Role of procurement and the sales process Impact of logistical and supply decisions on business

12 Appendix 4: What is gone from each exam board? Some key elements of legacy specification content that have been removed by each exam board are summarised below: AQA Pearson Edexcel OCR Market/product niche Sources and types of advice available to a small business Factors that determine the level of wages/salaries paid to employees Current and acid test ratios Appraisal/performance review system Thinking creatively, lateral thinking and deliberate creativity What questions do entrepreneurs ask? Protecting ideas through patents and copyright The principle of calculated risk and seeing mistakes as part of the process Other important enterprise skills Start-up legal and tax issues Market demand and supply Maslow s Hierarchy of Needs Income distribution internationally and subsidies Primary, Secondary, Tertiary Sectors Social Enterprise SWOT analysis Adding value Trade Unions Calculate changes in employee remuneration

13 Appendix 5: What is distinctive to each exam board? Unique elements of each specification (i.e. teaching content not featured by the other exam board) is summarised below: AQA Pearson Edexcel OCR Not-for-profit organisations M-commerce Factors of production Opportunity cost Primary, secondary, tertiary sectors Economies and diseconomies of scale Lean production Just- in-case Factors affecting the choice of suppliers TQM Customer service Contracts of employment Induction training Boston Matrix Statement of financial position Interest Crowdfunding/venture capital Inflation Stock market flotation Tariffs/trade blocs Batch production Bar gate stock graphs Business Communication Interdependent nature of business as a subsection.

14 Appendix 6: OFQUAL Core Subject Content The mandatory content that must be included by all awarding bodies in the GCSE Business specifications is as follows: Area of Study Business activity Influences on business Business operations Amplification The purpose of business activity, the role of business enterprise and entrepreneurship, and the dynamic nature of business the competitive environment and the impact of risk and reward on business activity the purpose of planning business activity, including the role and importance of a business plan the factors influencing business location, including proximity to market, labour and materials the types of business ownership, including business start-ups and the concept of limited liability business aims and objectives, how and why they differ between businesses, and how and why they change as businesses evolve methods of business growth, including organic and external growth business stakeholders, including owners, employees and customers; their different objectives, how they are affected by business activity and how they affect business the interdependent nature of business operations, finance, marketing and human resources within a business context The importance of external influences on business and how businesses change in response to these influences, including: how technology, including e-commerce and digital communication, influences business activity the impact of ethical and environmental considerations on businesses, including sustainability the impact of the economic climate on businesses, including changing levels of consumer income and unemployment the impact of globalisation on businesses, including how businesses compete internationally the impact of legislation on businesses, including employment law and consumer law What business operations involve, their role within the production of goods and the provision of services, and how they influence business activity, including: the impact of different types of production processes on businesses the role of procurement and the impact of logistical and supply decisions on businesses the concept of quality and its importance to a business, including the production of goods and the provision of services the sales process and the importance to businesses of providing good customer service, including product knowledge, customer engagement and post-sales service

15 Finance Marketing Human Resources The purpose of the finance function, its role within business and how it influences business activity, including: what different sources of business finance are available and their suitability for new and established businesses the concept of revenue, costs, profit and loss, including break even and gross and net profit ratios the importance of cash to a business, the difference between cash and profit, and cash-flow forecasting the use of financial information in understanding business performance and making business decisions The purpose of marketing, its role within business and how it influences business activity, including: the importance to a business of identifying and understanding its customers how businesses use segmentation to target customers the purpose and methods of market research, and the use of qualitative and quantitative market research data the marketing mix and the importance of each of the four elements price, product, promotion and place and how they work together how the marketing mix is used to inform and implement business decisions The purpose of human resources, its role within business and how it influences business activity, including: how and why businesses have different organisational structures, including the importance of effective communication, different job roles and responsibilities, and different ways of working how businesses recruit people, including methods used to meet different business needs the importance of retaining and motivating employees and how businesses achieve this, including financial and non-financial methods how and why businesses train and develop their employees