Teacher’s Guide Edexcel GCSE in Business Studies, Business Communications, Business Studies and Economics and Business Studies (Short Course) This guide shows you how to: • Get an examiner’s insight into the standards through marked student answers and controlled assessment exemplars with commentaries • Plan your delivery quickly and easily with the course planner and content overviews • Recruit more students onto the course with taster lesson plans and an enticing student guide • Compare the content with current specifications so you can see what’s changed.
Transcript
Teacher’s GuideEdexcel GCSE in Business Studies, Business Communications, Business Studies and Economics and Business Studies (Short Course)
This guide shows you how to:
• Get an examiner’s insight into the standards through marked student answers and controlled assessment exemplars with commentaries
• Plan your delivery quickly and easily with the course planner and content overviews
• Recruit more students onto the course with taster lesson plans and an enticing student guide
• Compare the content with current specifi cations so you can see what’s changed.
Welcome to the GCSE 2009 Business Studies, Business Communications, Business Studies and Economics and Business Studies (Short Course) Teacher’s Guide
This Teacher’s Guide has been designed to contain all the information, guidance and materials you need to achieve better results with our GCSE 2009 Business qualifi cation.
Inside you will discover some very useful content:
• A simple overview of what is new in the GCSE Business qualifi cation for a concise understanding of the course content
• Useful comparisons between exam boards to clearly identify the differences in the specifi cations
• A course planner to help you organise the academic year
• Useful teaching ideas and lesson guides for practical inspiration
• A customisable student guide to entice students to GCSE Business
• A clear assessment summary to help make your assessment decisions simple
• Practice exam questions with student answers and examiner’s comments to give students an examiner’s perspective on the exam requirements
• Detailed guidance on setting, taking and marking controlled assessments
• Marked student exemplar work to help students understand what the moderators are looking for.
However, that’s not all.Consider this your personal guide through the various teaching support services we have on offer. You will also fi nd useful contact information, web addresses and much more. Our 2009 GCSE Business qualifi cation will be supported better than ever before.
We look forward to working with you to achieve better results.
Your best choice by farWe’re on hand to help you …As the UK’s largest awarding body, we have a network of offi ces in Birmingham, Bristol, Cardiff , Leeds, and Manchester, as well as our head offi ce in London and our operations centre in Hellaby. We also have the largest fi eld team of any awarding body – skilled staff who will carry out local presentations and give you the support you need. So wherever you are, we’re on hand to help you.
We off er not only GCSEs but also many other academic and vocational qualifi cations throughout the UK and worldwide. We’re part of Pearson, the world’s largest educational publisher and draw on their resources to provide unbeatable support for teaching, learning and assessment.
We’ve become the biggest by being the best
Shared values and aims …Everything we do at Edexcel helps people to achieve their potential. From our wide range of qualifi cations, to Trident, our work experience service, through to our professional training courses. We aim to bring about a positive change and great success in people’s lives through learning.
Advancing Learning … Changing Lives
We value our staff, we value teachers …Everyone matters at Edexcel. Our employees are important in enabling us to off er an innovative and effi cient service. Manyof our staff are teachers who work for us each year as examiners and moderators. We invest in our staff to ensure they have the skills to deliver high levels of service. As a result, we are proud to have held an Investor in People (IiP) Award Badge since 2004.
We invest in education and innovation …We lead the way in introducing technology to the education industry with the aim of providing greater accessibility, delivering more effi cient exams and cutting bureaucracy. This includes our growing online knowledgebase ‘Ask Edexcel’, spearheading online marking with our e-Pen system and redefi ning examination administration with Edexcel Online. Additionally, our unique ResultsPlus service helps you achieve better results for all your students.
… to deliver better results for all
Over �6 000 examiners and moderators are at work for Edexcel each year.
What we’ve learnt thanks to you …Through consultations with teachers like you, we learnt a great deal. We learnt that you want a clear and simple structure to the specification and a specification that students can understand as easily as you do. You want a clear mark scheme so that you and your students can see what we’re looking for.
You told us what you meant by an accessible paper and why that’s important in giving all students a chance to show what they can do. You told us how important training is and why excellent ongoing support is crucial. You told us that you wanted to be able to email or talk to our experts and get answers to your questions, quickly and simply.
We’ve listened. This specification and all the additional support is the result. Thanks to you.
Better results for all
A simple modular structure … … so you can bank resultsMost of our specifications have a modular structure, which means you have real flexibility over what you teach when and choice when to enter students for assessment. It allows you to ‘chunk’ the teaching and bank results. It also means that if a re-sit is needed, you can use ResultsPlus feedback to ensure students do better the second time because you both know where improvement is needed.
A clearer specification … ... so you know what’s neededWe understand that being clear about what you need to teach is a real help to you and your students. We’ve provided planning help and schemes of work to lighten the load and we even give you a student version of the specification to help your students take more responsibility for their learning. Our e-spec contains really helpful exemplification, examples of student work and many other resources that are all aimed at increasing accessibility.
More accessible papers … … so everyone can show what they can doWe have put a great deal of thought and research into our new papers. They have been redesigned to look more approachable and open and we have reworded the instructions so no student will be flustered by them. We’ve given them advice on pacing themselves so they can achieve the best mark. Most importantly, we’ve made sure our questions are as accessible as possible by using direct language and all the other factors our research shows makes for better papers.
Better support for controlled assessment … ... so you can focus on improvement not admin Because controlled assessment is new, we’ve put together a support package that will help you get started and then support you year after year. Initial training sessions give you a chance to meet the moderator, hear what’s needed and network with other local schools. Then, once you’re underway, you have online access to our teams of experts to answer your questions and support you every step of the way.
ResultsPlus: Look forward to better exam results ResultsPlus is our unique performance improvement service for you and your students. It’s better than the AQA service as it has item level data on each paper and gives diagnostic feedback, not just summary comparisons.
ResultsPlus helps you to: Raise attainment by giving you an in-depth analysis of where your class did well and where they didn’t. By using this information you can identify where to make improvements.
Spot performance trends at-a-glance by accessing one-click reports (for example comparisons between classes etc). You can even choose to compare your cohort’s performance against other centres throughout the UK.
Personalise your students’ learning by reviewing how each student performed, question by question, paper by paper and use the detailed analysis to shape future teaching and learning. Meet the needs of your students on results day by giving them immediate access to their examination results – or if you would rather have
control yourself, simply have access to the full data as you talk to each student on the day.
The way that ResultsPlus works is very simple. Just use the login details for Edexcel Online (if you don’t have access, your examinations offi cer will be able to help you) and log into the ResultsPlus website. To fi nd out more go to:
www.edexcel.com/resultsplus
How can you improve results year on year and student by student?
Ask the expertWant to be put in touch directly with our examiners and subject experts and get answers to all your questions?
With our unique service you can be in direct touch with our senior examiners and moderators as well as our subject experts – and all through one simple email address. They will personally answer any of your enquiries about the content of our specifi cation within two working days. They’re there when you need them.
Ask about controlled assessment as well
As you start to introduce controlled assessment, you’ll have the same simple access to your moderator and our experts. We want to make teaching simpler for you.
Textbooks and other resourcesWe know that you want resources that are fl exible and authoritative which work with the full ability range with which you are working. And we know that you want a real choice – not just being forced to use the ‘offi cial’ textbook. With us, you have that choice.
For most specifi cations, you’ll fi nd that we publish a textbook and other resources to support you and your students. They are often written by our examining team and we do everything we can to make sure they are accurate and fully refl ect the intention of the specifi cation. They will often include additional questions and commentary on the examination – so are exceptionally useful to you and your students.
Equally, we work with a range of other publishers and give them the same support in their eff orts to produce high quality teaching material, which goes through our rigorous endorsement process.
Help with making the right decisionLook at our new specification, teacher’s notes and e-spec – we give you an at-a-glance summary of the specification as well as the detail – in this guide we give a quick overview of the content and benefits – e-spec allows you to see what the chief examiner says about this specification, to have an interactive version of the specification, to see examples of students’ work, and an idea of the planning and resource help available
Look at our accessible sample assessment materials – we understand that better papers mean more accessible papers and have completely redesigned our papers to be more accessible – we have made sure through the detailed design of every question, that all your students will get a fair chance of showing what they can do
Come and talk to us – or invite us to come to you – we have a whole series of national meetings on this specification, to find out where the next one is, go to www.edexcel.com/training
Preparation and planningPlanning help – we offer complete schemes of work and lesson plans
– we link additional material to the e-spec
Resources help – we offer the widest range of resources to support your teaching – we publish our own textbooks to support the specification and work with a wide range of other publishers to produce endorsed textbooks so you have a real choice in the resources available – as well as confidence in their quality
Training help – a wide range of courses will be available to help you understand the specification and plan for it more effectively
Controlled assessment help – controlled assessment is new and we’ve made it as simple as possible – you’ll get face-to-face support to get you started and ongoing support from our on-hand experts all the time
Assistance and support as you start to teachInstant access to our subject experts – we’ve given you the plans and made the resources available to get you started but know there
are bound to be a few questions – so you can use our Ask the Expert service to get answers
Controlled assessment workshops – we’ll be running face-to-face workshops where you can meet your moderator and other teachers to understand what’s needed and share best practice
More sample assessment papers – as you start to prepare students for the first exams, we’ll make additional papers available in the style of the exam. The papers are more accessible and there are no surprises
From January 2010 for modular specifications you can start entering students for their first modules and looking forward to better results for all …
We can help you decide, plan and implement to get better results for all your studentsWe want to ensure you have all the help and information needed to make the right decision. Of course, we hope you choose us but know that the decision is yours.Here’s how we’ll help you make and implement your decision.
QCA subject criteria now stipulate that all GCSEs include a controlled assessment component. This change applies to all awarding bodies. The controlled assessment is in many ways very similar to the old coursework. The key difference is in the degree of control at each stage. Full details can be found on page 33.
Edexcel’s response
In designing the new specification, Edexcel consulted widely and asked teachers actively involved in teaching our current specifications, and teachers using other awarding body specifications, to give extensive feedback on what they wanted from the new GCSEs, and what they liked and disliked about our current qualifications. We listened to this feedback and, along with the requirements of the subject criteria, incorporated it in our new suite of qualifications. Teachers have been involved into the development of GCSE 2009 at all stages.
This new specification is based on Edexcel’s successful GCSE Business pilot. The pilot was started in September 2006 and has been successfully run by 100 centres.
A number of amendments have been made to meet QCA’s subject criteria and to create specifications that:
focus on students’ active engagement in the study of business and economics
develop skills such as building arguments and making informed judgements, adopting a critical approach to the subject, and appreciating different perspectives.
This specification builds on the exciting work that has been carried out by many centres following the pilot, and in our other courses, to provide the opportunity for exciting lessons and challenging learning experiences for all abilities.
Existing centre progression
For centres with resources and materials that they have prepared over a number of years, the good news is that the `flavour’ of Edexcel’s previous specification has been retained. For centres following course 1503, there is the option within the new GCSEs to follow a Business Studies course; for centres following 1504, there is still a Business Communications option; and for Nuffield centres (1171) the option of following a combined Business Studies and Economics course still exists.
One of the key lessons from the pilot was that centres liked the opportunity to provide more student-centred teaching and learning, with the emphasis on developing skills. This philosophy is still at the heart of the new GCSEs.
Qualifications for all centres
The qualifications have a common core unit, Unit 1, that all students take. This unit provides some of the building blocks for progression, with the emphases being on realism and accessibility. Unit 1 focuses on starting a new business. You should look to build on your students interest and curiosity in business at the introductory stage of the course.
The remaining units would, logically, be followed in Year 11. By this time students will have gained some basic knowledge of business and will have developed a greater degree of maturity. This equips them to cope with the demands of the option units.
Putting you in control
You have the option of giving students a choice to match their interests and skills to particular subject areas relevant to business. However, this is done without a bewildering array of options and choices that become unwieldy and difficult to administer, or which are expensive to resource.
Similarly, each unit content has been designed to help enable the optimum use of staff specialisms.
The specification is structured as either a Full Course and Short Course. The Full Course is made up of Units 1 and 2 and a choice from Units 3, 4 or 5. The Short Course is made up of Unit 2 and Unit 6 (the content of which is identical to Unit 1).
Other awarding bodies have followed the lead given by Edexcel and submitted qualifications providing different routes. Edexcel had the benefit of the experience and feedback from the GCSE Business pilot which pioneered this approach. Our new qualifications have been `road tested’ by our pilot centres, and the lessons learned have been incorporated into GCSE 2009.
Current Edexcel content
New specification reference
New content/deleted content
The Business Pilot GCSE in Business Subjects 2009
What’s new?
Unit 1: Introduction to Small BusinessThis unit covers the key issues and skills involved in enterprise. This section provides a framework for looking at the marketing, financial, human and operational issues of starting and running a small business.
Units 1/6 and 2: Introduction to Small BusinessUnit 1 (or 6) and Unit 2 still cover the key issues and skills involved in enterprise. The emphasis is on starting and running small businesses. The unit still provides the framework for looking at key functions within small businesses.
Sections all framed as questions to highlight active, enquiring and investigative nature of the content.Logical progression of content from looking at what enterprise means through to setting up a business, running it and considering the external environment.
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Unit 2: Building a BusinessThis unit looks at the issues that arise when developing from a small- to a medium-sized business, and incorporates key external factors such as the economy, the environment and ethical behaviour.
Unit 3: Building a BusinessThis unit builds on Units 1 and 2 and looks at the key issues in developing understanding of life in medium- and large- sized businesses. The unit incorporates external factors such the environment and ethical behaviour, as well as marketing and people management.
Sections all framed as questions to highlight active, enquiring and investigative nature of the content.
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Unit 3: Business CommunicationsThis unit features the practical problems of an organisation’s internal and external communication, and the opportunities provided by modern ICT packages.
Unit 4: Business CommunicationsThis unit looks at the purpose and process of communication. It considers how and why businesses communicate with different stakeholders and covers different methods of communication including the use of electronic communication such as the web.
Brings Business Communications courses intro the 21st century.Gives extensive opportunities for practical, exciting and highly relevant teaching and learning.Sections all framed as questions to highlight active, enquiring and investigative nature of the content.
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Unit 4: Introduction to Economic UnderstandingThis unit raises a series of issues and problems of economic understanding, to provide a broad national and international perspective.
Unit 5: Introduction to Economic UnderstandingThis unit introduces the student to the ways in which economists think and practise, and provides vital skills to help them understand some of the burning issues of the day.
Practical issues considered throughout.A focus on fundamental concepts to develop understanding.Lively, engaging and relevant content throughout.Sections all framed as questions to highlight active, enquiring and investigative nature of the content.
Existing AQA centres currently have the choice of four separate qualifications covering business studies, business and communications and economics. Timetabling, staffing and resource issues can make it difficult to offer the range of business subjects to your students. The opportunity for greater flexibility in providing for the different needs of students, but keeping the course viable and economic, was a key consideration in thinking about meeting the needs of AQA centres. The new Edexcel GCSEs offer a clear set of choices and routes based on qualifications that have been tried and tested in the classroom. This means that the vast majority of resources in AQA centres can be used for the new Edexcel GCSE 2009
AQA Unit/topic New content Deleted content
Business and CommunicationsThe Business EnvironmentWorkplace OrganisationHuman ResourcesCommunicationThe use of ICT in the Business Environment
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Edexcel GCSE 2009What is communication?Business communication tools.Video and teleconferencing.Communicating via the web.Business websites.
Edexcel has brought business communication into the 21st century and made it relevant to students entering the world of work over the next decade.No more repeating of skills that most students have covered by the end of Year 7!
Business StudiesThe Business EnvironmentBusiness StructurePeople in Organisations
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Focus on small business not business management.Focus on enterprise and enterprise skills.
Focus on large corporations that have limited relevance to the average 14-6 year-old student.
EconomicsWhat is economics?The market system Business enterprises Market failureMacroeconomics
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A focus on key issues – sustainable growth, equity and inequality, different perspectives and thinking like an economist.
`Dry’ subject matter that has led to the decline in interest in economics as a subject
OCR centres will recognise in our GCSE in Business Communications a lot of content that they have been covering already. In the Edexcel GCSE there is greater emphasis on the ways businesses communicate with their stakeholders — rather than a course in business and communications where the emphasis is different.
OCR centres offering Business Studies or Economics individually, now have the opportunity to offer both subjects to students in one course, giving them greater flexibility to boost the profile of the subject areas. It also affords students the challenging and interesting opportunities to follow many different routes, according to their interests and aptitude.
The table below shows how OCR centres can map their existing GCSE to Edexcel’s new GCSE 2009 suite of units to form a simple `one-stop’ qualification.
Current OCR content New Edexcel specification reference
New content
Business Studies A:5.115.125.135.145.15
3.5,1.31.31.4, 3.11.4, 3.45.3
Skills driven not content driven.Focus on enterprise and small businesses/business start-ups.Competitive advantage.Taking calculated risks.Customer service.Legal and tax issues for new start-ups.Branding.Business ethics.Thinking like an economist.
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Business Studies B:5.115.125.135.145.155.165.225.23
Course plannerThis planner gives you some ideas about how to structure the course over two years and deliver the content successfully. It can be used as the basis of a scheme of work but can also be adapted easily to accommodate differences in the timings of work experience and internal examinations. Units 1 and 2 are the basis for all pathways.
Year �0
Weeks Unit � content Notes
Autumn Weeks 1-7
1.1 Spotting a business opportunity
Understanding customer needs is central.How businesses analyse their market.Analysing competitors: refining or enlarging the opportunity.Meaning and importance of ‘added value’.Franchising and other start-up options.
Weeks 8-13 1.2 Showing enterprise
The skills and risks involved in enterprise.The role of lateral thinking and creativity. Obvious and less obvious questions.How new ideas come about and how they can be protected.Weighing up risks versus rewards. Bringing it all together.
Weeks 14-15
Spring Weeks 1-6
1.3 Putting a business idea into practice
Financial and non-financial objectives.Determination, initiative, planning, leadership – and luck!Forecasting, determining costs and price, the concept of profit.The concept and importance of cash flow.Short- and long-term sources of finance.
Weeks 7-12 1.4 Making the start-up effective
Anticipating customer needs.Marketing mix: 4Ps in relation to small businesses.Aims and implications of limited/unlimited liability.The importance of record keeping.The importance of effective customer service.Selecting staff and treating them fairly.
Summer Weeks 1-4
1.5 Understanding the economic context
Commodity markets and their effect on small firms.How changes in interest rates can effect financing of small firms and consumer spending.Exchange rates: imported and exported goods.How changes in the level of economic activity can affect small firms.Business decisions affect stakeholders in different ways.
Weeks 5-11 Revision and exam preparation.Completion of Unit 2 controlled assessment (more likely in Year 11).Work experience (recommended but not essential).
Teaching ideasThis section of the guide contains ideas for teaching aspects of the content. There is a mixture of activities – some that will help you engage students in business issues and some that you may be able to use as taster lessons in Year 9 to attract students to the GCSE course. There is one idea given in each unit except Unit 2.
Unit 1 (or Short Course Unit 6)1.2 Showing enterprise
This is great as a first lesson in the course and is also a great way of recruiting Year 9s onto a business course. Students are really engaged by the idea of being creative and enterprising.At the start of the lesson let students sample some ‘Innocent Smoothie’ drinks. Working in task groups ask them to identify how much they think the drinks cost and compare this to other smoothie drinks (prices easy to find on supermarket websites). Ask students to take the Innocent Smoothie drink and examine the packaging and decide what allows them to charge so much more than their competitors. Give the group some background information on Innocent Smoothies (www.innocentdrinks.co.uk/). Ask students what it is about the creators of Innocent Smoothies that made them special or different – what skills and qualities did they have?Tell students they will now have an opportunity to develop some of these skills and qualities. In their teams students are now new businesses — their business idea is to try and break into the smoothie market. They must create their own smoothie drink idea that is different to Innocent; they must draw what their smoothie product will look like, for example its packaging; they must also decide on a company name and their target market; and be ready to feed their business idea back to the group. The feedback is to take place almost like in the BBC television show Dragons’ Den. Award a prize for the most innovative idea.
Unit 33.1 Marketing and 3.2 Meeting customer needs
The following idea is great to use over a series of lessons but can also be scaled down to use as a Year 9 ‘taster day’. This lesson leads to a real understanding of the issues surrounding marketing and developing a coherent marketing strategy, but is based on discovered rather than directed learning.Give students an item, for example a bar of soap, and ask them to devise a business idea using the item. They could construct a market map to identify any gaps in the market. Students could then carry out market research to establish customer needs and identify a market strategy in order to trial their product. Students identify how they will encourage repeat purchases. They must then prepare a report outlining their proposals.
A great way of highlighting the issues surrounding communication and barriers to communication is to ask students to complete the following task. Give one student instructions to create a fortune teller widget (or chatter box). The class are all given a square piece of paper and the instruction giver stands at the front of the room. The class are not allowed to talk or communicate with anyone else in the room; if they need to ask a question they must tap the table twice. The instruction giver reads out step by step how to design the widget but cannot move onto the next stage until everyone in the class has indicated that they think they have followed the instructions given (it doesn’t matter if it’s wrong!). (See nhs.needham.k12.ma.us/cur/howto04/tg/moviehtm for instructions.) When they get to the end examine how many of the class have successfully completed the task. This leads onto a discussion about the process of communication and the barriers to effective communication. This activity is a nice introduction to the good and bad effects of business communication.
Unit 55.1 How can I start to think like an economist?
Divide your students into groups of Burberry stakeholders. One group must be the owners of Burberry. Present the facts about the closure of the Burberry factory in Wales, assume that the factory is still open and the closure is a proposal. Students work in small stakeholder task groups and identify what the impact of the closure will be and whether or not they will support the closure. Students can carry out internet research to find out the impact of the closure (www.bbc.co.uk/news). Call a meeting — the task groups must represent their particular stakeholders and the views of those stakeholders in the meeting. The owners must come to a decision about which stakeholder views are the most influential. Students should be able to recognise the conflicting views of the stakeholder groups and understand why some stakeholder groups are more powerful than others.
Student guideWhat do I need to know, or be able to do, before taking this course?
It is unlikely that you will have studied business before taking this course, but that does not matter. You might have an interest in business, and want to start your own business one day. You may have an enquiring mind and be interested in learning about the world around you, how businesses are set up, and what it is that makes someone a great entrepreneur.
Is this the right subject for me?
This course is both active and enjoyable. You need to be good at communicating and explaining your ideas, and not afraid of learning new things and working with numbers to solve business problems. You will learn how to be a creative thinker and how to make decisions. What’s more, you will also learn about the world of business through research and investigation, as well as through practical tasks.
What will I learn?
While studying the first two units of this course you are likely to learn a lot of new things. You will be introduced to the world of small businesses and will look at what makes someone a successful business person. You will find out how to develop an idea and spot an opportunity, and turn that into a successful business. You will understand how to make a business effective and manage money well. You will also see how the world around us affects small businesses and all the people involved.
The route you choose to follow will affect what you learn.
GCSE in Business StudiesYou will learn more about how small businesses are developed. and discover how businesses promote themselves and keep their customers happy. You will learn how businesses manage both their finances and the people who work for them.
GCSE in Business CommunicationsYou will understand how important effective communication is to any business, and learn what communication is and the different ways businesses communicate with people inside and outside the business.
GCSE in Business Studies and EconomicsYou will find out how to think like an economist and learn how the economy functions, the government’s role in the economy and its impact on business. You will also examine what causes businesses to fail and how businesses grow. You will study many issues within the world of business such as inequality.
How will I be assessed?
During the course you will take written examinations and carry out a controlled assessment task. For Unit 1, in a Full Course GCSE, you will take a written examination paper with multiple-choice and objective test questions based on the unit. In Unit 2, you will be given a list of controlled assessment tasks to choose from. The tasks will be based on what you have studied in Unit 1.
Whichever route you then follow, Unit 3, 4 or 5, you will sit another written examination paper giving you the other half of your marks. The questions will be a mixture of multiple-choice, data response, short-answer, extended-writing and scenario-based questions. For example, you might be given details of a business and asked a few questions based on that business.
For the Short Course, you will complete the controlled assessment task in Unit 2 and the Unit 6 written examination. For Unit 6, you will study exactly the same topics as in Unit 1, but your written examination will be slightly different. Your examination paper will consist of multiple- choice, objective test and extended-answer questions.
What can I do after I’ve completed the course?
No matter which route you follow, all these business courses can help you prepare for further and higher education. They prepare you for AS/A2 Levels as well as BTEC and NVQ courses in many different subjects. You will become skilled in making decisions, being creative, solving problems, understanding finance, dealing with data, communicating and working as part of team. Even if you do not want to go on to study business further you will have benefited from studying a GCSE Business course because many job you do will involve working for a business. However, a GCSE Business course could lead to work in a business-related profession such as accountancy, law, marketing or the leisure and tourism industry.
Next steps!
If you want to find out more about the skills you might learn or should develop when studying this course, watch BBC programmes like The Apprentice, Dragons’ Den and Working Lunch. You could also look at the following websites to discover the types of things you might learn;
This section provides all the information you need to understand the assessment requirements of this course and help your students achieve their best possible results.
It consists of four parts:
assessment overview
example examination questions with student answers
Assessment overviewThe ethos underpinning the assessment of learning in this qualification is one of finding out what students understand about business rather than what they know about related terminology. In completing the units, students will have engaged with the real world of business and applied their knowledge and understanding to different contexts.
Questions for all units are set within multi-faceted scenarios, whilst concepts will be evident across the units. This reflects the world of business where elements mix and are not stand alone.
In delivering the units you have the scope to ensure students are involved in realistic, interesting and local business issues and contexts, as well as those of larger businesses. Topical issues should be covered in the classroom to support to what is being studied. By doing this, many students may see a `mirror’ of one of the scenarios which will enable better understanding and responses.
These investigations will:
improve understanding
widen students’ breadth of knowledge
improve their technical knowledge
encourage them to apply that knowledge in various contexts, as happens in business
engage students in the real world of business
improve employability skills.
This GCSE course is not textbook driven. In fact, the opposite is true. The course is based on a real and dynamic environment, with textbooks providing technical back-up. Evidence of the real world will highlight the key issues in the specification and give students the confidence to tackle the different contexts that might arise in assessment.
There is, of course, an academic element. Concepts and phraseology need to be used correctly and effectively. The investigative nature of the course should ensure full understanding of concepts and phrases as students have to use the words, not merely decode them, and explain what they mean.
The course includes a range of important topic focuses which will ensure it is as valuable now as in five or ten years time. It has been specifically developed so that changes in the business world can be accounted for within the relevant specialism, whilst at the same time being referred to in the others. The course structure encourages teachers to share new, and often different, experiences, within a clear framework.
In summary, this course represents the optimum in business education with students able to gain a qualification with real experience supported by sound and appropriate technical knowledge.
Assessment gridThere is an assessment overview grid on the next two pages and we recommend that you make it available to all your students. The information in the grid will help students to prepare and know exactly what to expect in each assessment.
Unit 1 % Marks Time/pre-release Availability
Introduction to Small Business1.1 Spotting a business opportunity1.2 Showing enterprise1.3 Putting a business idea into practice1.4 Making the start-up effective1.5 Understanding the economic context
25 40 Compulsory unit, externally assessed45 minutes
January and June. First assessment June 2010
Unit 2 % Marks Time/pre-release Availability
Investigating Small Business(Content as Unit 1)
25% for full GCSE50% for Short Course GCSE
40 Compulsory unit controlled assessmentRecommended time: six hours maximum for research, three hours maximum for write up.
June only. First assessment June 2010
Unit 3 % Marks Time/pre-release Availability
Building a Business3.1 Marketing3.2 Meeting customer needs3.3 Effective financial management3.4 Effective people management3.5 The wider world affecting business
50% 90 Compulsory unit – for Business Studies pathway only.Externally assessed90 minutes
June only. First assessment June 2010
Unit 4 % Marks Time/pre-release Availability
Business Communications4.1 Communication4.2 Communication with stakeholders of a business4.3 Business communication tools4.4 Communicating via the web
50% 90 Compulsory unit – for Business Communications pathway only.Externally assessed90 minutes
June only. First assessment June 2010
Unit 5 % Marks Time/pre-release Availability
Introduction to Economic Understanding5.1 How can I start to think like an economist?5.2 Risk or certainty?5.3 Big or small?5.4 Is growth good?5.5 Is the world fair?
50% 90 Compulsory unit – for Business Studies and Economics pathway only.
The paper is untiered and comprises multiple-choice and objective test questions including one question on financial balance sheets.Students answer all questions.Formulae will not be supplied.
The Assessment Objectives: AO1: 16% AO2: 6% AO3: 3%
Description Knowledge and skills
This controlled assessment task builds on the content of Unit 1 (Unit 6 for Short Course students). Students use the content to research, analyse and evaluate a task on enterprise issues. They select one task from five. Tasks are replaced annually.
The Assessment Objectives covered in this assessment are: AO1: 8% AO2: 9% AO3: 8%
Description Knowledge and skills
The paper is untiered and in three sections.Questions will require a mixture of multiple-choice, short- and extended- answers and data response questions.Questions in Sections B and C will be based on a given scenario. Students answer all questions.
The Assessment Objectives: AO1: 11% AO2: 20% AO3: 19%
Description Knowledge and skills
The paper is untiered and in three sections.Questions will require a mixture of multiple-choice, short- and extended- answers and data response questions.Questions in Sections B and C will be based on a given scenario. Students answer all questions.
The Assessment Objectives: AO1: 11% AO2: 20% AO3: 19%
Description Knowledge and skills
The paper is untiered and in three sections.Questions will require a mixture of multiple-choice, short- and extended- answers and data response questions.Questions in Sections B and C will be based on a given scenario. Students answer all questions.
The Assessment Objectives: AO1: 11% AO2: 20% AO3: 19%
Description Knowledge and skills
The paper is untiered and comprises multiple-choice, objective test and extended-answer questions.Students answer all questions.Formulae will not be supplied.
The Assessment Objectives: AO1: 16% AO2: 6% AO3: 3%
This examination guide gives some example questions, with answers and examiner comments, to help you familiarise yourself with the exam requirements quickly and easily.
The questions are organised by unit and there is a selection of questions from Units 3, 4 and 5. Answers are actual student answers and show how the command words are used, to ensure your students know what to expect.
Unit �: Building a Business
Question
Read the passage and then answer questions 1-3Jason and Balvir are planning to set up a restaurant in London. The restaurant scene in London is growing with a current total of 6978 restaurants. This is continuing to rise with many new restaurants starting up each year. Equally, there are many who do not succeed and close within the first year.Jason has been involved in catering for over 10 years now and has come into contact with many restaurant owners, suppliers and customers. He has established many contacts and can draw from their knowledge to make the business a success.
Balvir has other qualities. She has experience in people management and human resources.
They have stressed that they are not looking to take on the likes of top chefs such as Gordon Ramsay (just yet!) and would like to start off relatively simply with a manageable restaurant that seats up to 60 people, serving good quality Mediterranean food.
Jason adds “…as long as we get the marketing mix right and don’t make any risky decisions then I think we are onto a winner”.Jason and Balvir have decided to use break-even analysis as part of the planning for their business. They are planning to offer a set menu for a price of £30.
They have estimated their costs as:
fixed costs = £8000variable costs are £14 per set menu
1 (a) Define the term ‘break-even point’. (b) Using the graph above, how many customers do Jason and Balvir need to
break even each month? (c) What would be the monthly revenue earned by Jason and
Balvir if they served 1000 customers a month? (d) What would be the profit or loss in pounds (£) if 650 customers were
served?(Total marks 4)
Student response (a) The point where total costs equal sales revenue for a business.
(b) 5000 customers
(c) £2500
(d) £30000
Examiner’s commenta) The basic idea of break even has been stated so this would receive 1 mark.
(b) The student has misread the value on the horizontal axis here and given the answer as 5000 rather than 500. However, they do clearly understand the concept involved. This would be a good example of the sort of answer that would generate discussion at the standardisation meeting. It is unfair on students who read the information carefully and give the correct answer but at the same time there is some evidence of business understanding present. Benefit of doubt may well be given in this case and 1 mark awarded.
(c) The student now seems clearly confused and has not identified the correct answer of £30 000. Once again the student has also misread the values on the vertical axis. If the student has managed to identify where 1000 customers are on the horizontal axis, it is hard to see how they have arrived at £2500. The lesson here is to make sure that students take note of the values and also that they are able to read these types of graphs accurately.
(d) Again, there appears to be some confusion in the mind of this student over how to read information from the graph. It is hard to see how, given previous answers, they have arrived at this answer. 0 marks
2. (a) Jason thinks they should charge a price of £35 for the set menu. Calculate the new break-even point. Give the formula and show your workings.
(b) (i) Define the term ‘margin of safety’. (ii) Explain the relevance of margin of safety to Jason and Balvir’s business. (c) Jason believes that they should charge a price of £35 for the set menu.
Balvir thinks £30 would be a more appropriate price. In your opinion, which price would be more likely to help the business to
survive the first year? Justify your answer.(Total marks 16)
Student response(a) Break even = fixed costs/contribution
£ 80 000/£21 000= £4 000
New break-even point: £4,000
(b) (i) The margin between a set point and the break-even point.
(ii) The business is in a competitive industry and this means that margin of safety would be the amount the business can lose before making a loss.
(c) Break-even point is the point where a business’s sales revenue is equal to their total costs. This means that the business is neither making a profit or loss at this stage. With the price at £30 it means that the business has to attract more customers to break even. This is important decision as there is a lot of restaurants around and therefore with a competitive market with a price lower it means that the business can be able to attract a lot of customers. However having the price higher means that the business doesn’t have to attract as much as 5,000 customers in order to break even but just 4,000. Although there is a lot of restaurants in the market and as a result this means that the business might not attract the customers needed. In my opinion it is a better idea to keep the price at £30 because as the market is competitive it means that the business can attract the 5,000 customers needed to break even a month.
Examiner comment(a) The extent of the confusion is compounded here with a number of mistakes. The student does know the formula for break even and gets 1 mark for stating this. The figures that have been substituted into the formula are incorrect in that the student has again shown some confusion over the interpretation of the axis values. They have not shown how they have arrived at these figures and so we cannot be sure that they have not simply guessed them. There has been a calculation but this has been expressed in pounds when the break-even point should be expressed as the number of units of output or sales. All in all there does not seem to be much evidence of understanding here and this would get only the 1 mark.
(b) (i) The answer given is not very clear – what is ‘a set point’? To secure the mark there really needs to be some reference to the break-even point and the amount of profit made or the amount by which sales fall before break even is reached and losses begin to be made. This answer would not be good enough to secure a mark.
(b) (ii) The question is firmly rooted in the context of Jason and Balvir’s restaurant and it would be expected that the answer would likewise apply some knowledge to the context of a restaurant. A basic link is made between the margin of safety and the point at which a loss could be made but the reference to the highly competitive industry, whilst it could be pertinent, is not related to the second part of the answer. This would gain 1 mark for making the basic link between margin of
safety and losses but there is little other development to support the answer.
(c) The first thing to notice is that there are some errors in spelling in the answer – students should be encouraged to take care with their written English. QWC is assessed as part of this answer. There is some evidence of understanding of the question in the answer. The student recognises that at £30 the amount of sales needed to break even would be much higher than at £35 (even though the figures given are inaccurate). The student offers some judgements and gives some support for these judgements set against the context of a competitive market. The second part of the answer tends to repeat much of the information in the first with little additional material. The answer concludes with a judgement with some limited support. This answer, therefore, is a clear Level 2 response. There is a judgement made but the support is limited. Both prices are referred to – albeit the £35 one is only implied. The QWC does contain some errors and this will influence where in the mark band the answer will sit. This answer would therefore be awarded 4 marks – the middle of the mark band.
3. (a) Identify two elements of the ‘marketing mix’. (b) Jason and Balvir will seek to increase their competitive advantage when
they open the restaurant. Assess how improved customer service could help them achieve this.
(Total marks 10) Total for Section B: 30 Marks
Student response(a) 1.Price, 2. Place
(b) Good customer service which is making sure that the customers gets the food as quickly is important because it means that as the market is competitive the customers can get what they demanded. As a result this means that the business supply’s the customers demands and this will then lead to the business being able to capitalise on demand. Another point is that with good customer service it means that the business can achieve repeat sales because with good customer service it will mean that the customers will see the business as good and will keep coming for more.
Examiner comment(a) Two appropriate elements identified.1 mark each – total of 2 marks.
(b) There is some evaluation offered immediately as the student starts by making some reference to the fact that good customer service is important. There is then some development of the answer to support the judgement and some limited analysis relating to the fact that the business can meet customer demands. The answer then offers a further point and relates customer service to repeat purchase. However, it does not place this (or the previous part of the answer) in any sort of context and the answer could apply to any business not just Jason and Balvir’s. This is, therefore, a weakness in this answer. It would have been useful if the answer had pointed out that in the restaurant business repeat purchase is important because it relies on relatively small but repeated purchase to maintain sales over a period. Once again this would be a Level 2 answer – there is a judgement but with some weak support – and there is some attempt to use some terminology. The QWC is again limited – note the punctuation errors – and the whole answer does not really build any sort of argument but makes two points with the second almost bolted on as an after thought. This would therefore also gain 4 out of the 8 marks available.
1. (a) Many businesses now use videoconferencing as a means of communicating with other people in the organisation.
This is because:A videoconferencing can help save time and reduce costsB most managers enjoy using new gadgetsC videoconferencing shows that the business is a part of the globalisation
processD the use of technology shows its colleagues that the business is forward
looking. (b) State two disadvantages of using videoconferencing. (c) (i) What is meant by a circular organisation chart? (ii) Explain how a circular organisation structure might improve
communication within a business. (iii) Explain how a hierarchical organisation might make
communication within a business more difficult. (Total 10 marks)
Student response(a) A
(b) 1. it is costly 2. Not guareented to always work
(c) (i) A circular organisation chart shows how a business is organised but is presented as a circle rather than a list like higherarchical chart.
(c) (ii) It will help the business to organise its resources properly. This will then mean that decisions can be acted upon quicker and then the business can gain more sales revenues as a result of good communication.
(c) (iii) With a lot of layers within the hierarchy it means that the business takes longer time for decisions to be made from the top of the hierarchy and therefore means that the business can take advantage of any gaps within the market and therefore lose sales revenue to their competitors.
Examiner comment(a) Correct answer for 1 mark.
(b) Two appropriate responses — although the spelling leaves much to be desired! 2 marks.
(c) (i) A typical answer that tends to repeat the question rather than offering any additional information. The key to the answer would be some recognition of a lack of hierarchy or the emphasis on teamwork but neither of these is present. Great spelling of hierarchy! 0 marks.
(c) (ii) The lack of knowledge demonstrated in C(i) means that the student has some problems with this second part of the question. However, there is some reference to the ability to make decisions more quickly and there is a link made to how sales revenue can be raised as a result of the improved communication. Appropriate terminology is used in the answer. This would therefore gain 2 marks.
(c) (iii) There is evidence of some links being made in the thinking but we cannot be sure that the student meant `can take advantage …’ or `can’t take advantage …’. Despite this possible mistake,
there is evidence of understanding that hierarchies do mean decisions can take longer and that this could cause potential problems for the business. The benefit of doubt would be given here and the student would be awarded full marks.
2. Read the passage below carefully and then answer the following question that relates to the passage.
The Nectar Card and the Tesco Club Card are two examples of loyalty cards. Using them enables the shopper to collect points which can be redeemed against future purchases. They give businesses useful information about customer shopping habits enabling them to create individual customer profiles. Businesses such as Tesco also use advertising extensively; for example TV, newspapers, billboards, radio, and cinema – in fact almost anywhere where consumers are likely to see the message.
Adverts and loyalty cards are two means by which a business communicates with its customers.
Which of these do you think would be the more successful in increasing sales and why?
(Total 6 marks)
Student responseBy promoting the products it means that the business can inform any potential customers about the business products/services. As a result this means that as consumers anywhere will see the message, there is a better chance of increasing sales revune as everyone can see the advertisement anywhere. Loyalty cards track customers spending and a make a profile of them which allows them to be able give them the products they want.
Examiner commentsThere is some evidence of understanding of both advertising and loyalty cards and the student seems to assume that advertising is a part of promotion. The student justifies promotion on the grounds that widespread visibility is more likely to increase sales. A definition of loyalty cards is given and there is a suggestion that this can help to target the right products to the consumer but sadly it does not offer any further development. This question is one that is designed to try and encourage some evaluation – at the very least making a judgement as to which of the two is the most successful. This student does not do this and whilst there is some analysis and knowledge shown there is little evidence of evaluation. This would tend to put the answer in Level 2 with 3 marks awarded. A great pity because the student could easily have increased their mark by paying more attention to the Assessment Objective targeted by this style of question. This style of question will be used as a means of encouraging evaluation, and when students become familiar with this style, it is expected that it will be a successful way of bringing out this higher order skill across the ability range.
3 Read the passage and then answer the question.TWJ Sports
TWJ Sports are a high street sports clothing retailer. Currently, they have branches in five different high streets in Middlesex. They are looking into setting up a website that will allow customers to purchase some of their products online.What is meant by the term ‘domain name’?
(Total 2 marks)
Student response The name that a websites owns and has the right to use for their purposes.
Examiner commentThe key point of this is that a domain name is a means through which a computer is identified on the internet. There is no sign that the student has recognised this and as such there would be no marks for this answer.
Total Unit 4 marks: 11/18
It is important to notice in the student answers that it would not take much help and guidance for this student to increase their marks appreciably, particularly on the questions where the mark tariff is higher. On these higher tariff questions the marks are for the skills demonstrated rather than knowledge. This student appears to have a degree of base knowledge but needs a little more help recognising the Assessment Objectives being targeted and how to address these AOs.
1 (a) ‘Inflation’ is an increase in:A the size of an economyB the level of demand in an economyC the level of supply in an economyD the level of prices in an economy
(b) (i) Identify three possible causes of inflation. (ii) Explain one effect of inflation on a business. (c) Explain how an increase in the rate of interest by the Bank of England
might reduce inflation.(Total 10 marks)
Student response(a) Answer C
(a) (i) 1. Decrease of interest rates, 2. Increase in the level of prices in a economy, 3. Increase in demand
(a) (ii) The prices will rise which means that businesses costs will rise and as a result that the business has to raise the products prices in order for them to meet the profits they want to make.
(b) The interest rates will mean that the economy will borrow less because the interest rate on payments will rise meant that the economy will spend less as a result and therefore mean that it will reduce the level of prices rising within an economy.
Examiner commentBasic misunderstanding demonstrated here. The lesson to be learnt from such a mistake is that key terms do need to be learned well as they can provide the opportunity to pick up marks on multiple-choice type questions designed to help build confidence early in the exam. 0 marks.
The command word is ‘identify’ so a list of points is acceptable. Unfortunately this student does to seem to have much of an idea about inflation and the first two answers are clearly wrong – it is likely that they have copied the second answer from the list above – which begs the question why did they not choose D as their answer ? The third cause given does not have much detail in it but given the command word this would be awarded a mark. 1 out of a possible 3.
The answer shows some understanding but the use of terminology is poor. The link between inflation, business costs, product prices and profits is present and this would be sufficient to be worthy of 2 marks At this level we are looking for evidence of basic links being made to help provide the basis of understanding and this is a good example of how a (possibly) weak student can still make those basic links and make them sound intuitive.
This is another good example of the aims of the course in developing basic understanding. Again, the language used is not of a high quality and the QWC is weak. Despite that, the student recognises that interest rates affect borrowing which means spending falls and that this can lead to a reduction in inflation. There are plenty of AS level students that do not grasp this basic relationship. This answer would be awarded the full 3 marks.
2. (a) Which of the following is a method of external growth available to a business?
A Reinvesting profitsB Merging with another businessC Investing in research and developmentD Changing the marketing mix
(b) Identify two disadvantages of a business having monopoly power. (c) Some businesses with monopoly power make large profits. Explain how large profits could benefit the shareholders of the business. (d) Describe the role of the Competition Commission in controlling businesses
with monopoly power.(Total 10 marks)
Student response(a) Answer A(b) 1. High level of costs 2. Lack of choice(c) Large profits will mean the shareholders get more dividends, this will mean that they will get more money and as a result this will benefit the shareholders who have invested within the business.(d) The competition commission can stop a business from merging or takeover another business if it believes that it will hinder other businesses from being able to compete on prices for example.
Examiner comment(a) A question that is designed to give students of all abilities a chance to pick up some marks and to help build confidence in the paper. Unfortunately, this student seems to be excelling on the links in understanding but failing to get to grips with some basic knowledge that should be present. 0 marks.
(b) One of the main problems with students at this level is the confusion between ‘price’ and ‘cost’. It is something so fundamental that it should be focused on throughout the course. In this case it is not clear whether the student means ‘cost’ as in business costs or ‘price’ as in what faces consumers? We cannot put words into students’ mouths and so have to take it at face value. This is a valuable lesson for students to learn in terms of the way many exams have to work. Lack of choice would gain 1 mark.
(c) A 3-mark question which is looking for the student to make some basic links between profit and shareholders. This student uses appropriate terms – even if spelt wrongly – and is able to make the link between profit, dividend and the benefit that shareholders get. As such, it would receive the full 3 marks.
(d) The student shows some basic knowledge about the role of the Competition Commission and what it does. The main problem with the answer is the lack of use of appropriate terminology. To gain the full 4 marks we would be looking for some evidence that the student can recognise the key role the Competition Commission plays in anti-competitive practices (that term would be useful). We might expect some reference to price fixing or predatory pricing (many students at this level seem to empathise with the practice of predatory pricing) but in this answer such terminology is missing. There would be 2 marks awarded for the basic description offered as a result. To get to the full 4 marks, therefore, we would be expecting some more appropriate use of terminology and a little more development of the description.
Using an example from the graph, state what is meant by a ‘strong pound’.(Total 2 marks)
Student responseThis means when the pound when converted in to dollars is for a high amount of dollars which therefore means that the pound is strong.
Examiner commentThe immediate thing to notice is that the student has ignored the command in the question to use an example drawn from the graph. The graph is there to try and help students. The student does, however, appear to have some understanding of the concept but struggles to articulate it clearly. The phrase ‘high amount of dollars’ is sufficient, however, for 1 mark to be awarded.
4. Read the following passage carefully, then answer question 4.
Bebo acquired by AOLThe social networking business, Bebo, has been acquired by media giant AOL in a takeover deal worth £417 million. AOL is part of the Time Warner group.Bebo was set up by husband and wife duo Michael and Xochi Birch in 2005. The couple will get several hundred million dollars from the takeover deal.AOL say that they think that the large user base of Bebo will help them make more money in the future from selling advertising on Bebo and they see it as a good deal.Others are not quite so sure. Social networking sites like Bebo, MySpace and DoubleClick are being swallowed up by large media corporations and some have questioned whether they will retain their roots.
What is meant by the term ‘takeover’?(Total 2 marks)
Student responseWhen a business buys another company and therefore has total control over the business’s resources.
Examiner commentThe mark scheme suggests that an answer which makes some reference to ‘control’ would be indicative of a level of understanding that will allow the full marks to be awarded. This answer does provide that evidence of basic understanding and so would get the full 2 marks. What needs to be made clear to students is that in such questions clarity of expression is vital. Examiners are often faced with sentences from students that are very difficult to interpret and long discussions are held at standardisation meetings about whether the student meant one thing or another. The student can make life for the examiner, and as a result themselves, much easier by making sure that they think about their answer before writing it down so that they make it clear what they are trying to say.
Controlled assessmentAbout the controlled assessment
Controlled assessment, which replaces the old internal assessment, is a key QCA requirement for all GCSEs from 2009. For many centres, there will be little or no discernible difference in the way this part of the course is run. Controlled assessment has come about amidst concerns over plagiarism. Many centres already have strict guidelines in place for internally assessing their students, so the new controls will be something they are familiar with.
What’s new?Controlled assessment focuses on four key skills:
decision making – the use of data and problem solving
analysis and evaluation.
research.
presentation.
The tasks, therefore, must allow students to experience and demonstrate these skills. The tasks that are set have a high level of control. QCA request that Edexcel set a selection of tasks that will be available and communicated to centres each year. Students will get to choose one task from five tasks provided by Edexcel. The tasks are based on the different sections of Unit 2. It is recommended that students be allowed a choice to facilitate differentiation and to develop ownership of the work.
How we’re making it easy for you to organiseEdexcel-set tasks ensure that you are aware that key areas of Unit 2 will be the focus for assessment. This allows centres to build up resources and expertise to help students experience and demonstrate the skills being assessed.
Students can carry out research for the tasks under a limited level of control, meaning that they can complete their research outside of the centre, can work in groups and use the internet. They must gather all the information they collect into a research folder which they hand in before the writing up of the task begins. Writing up of the tasks is carried out over designated writing sessions (total 3 hours). Sessions can be split into more then one session. Each session must have a high level of control. This means that students must be supervised at all times whilst writing up their task, which they do individually under exam conditions. Students can have access to their research folder only during these designated writing up sessions. The written work and research folders must be collected in at the end of each writing-up session and kept securely until the next session. Once the writing up of the task begins, students must not have access to their work (including their research folders) between these designated sessions – they must be kept securely at the centre. This has the benefit of keeping the assessment tight, controlled and limited in scope – no uncertainty for students about deadlines, re-working of drafts and internal assessment.
How we’re making it easy for students to achieve their bestEdexcel-set tasks give students clear guidelines as to what is expected. Each task will be framed as a question that directs students to research a problem to solve and towards giving some evaluation. The tasks are clear, focused and manageable, giving students clear direction on what is expected of them.
Range of topics available
The fact that controlled assessment is based on the core content that all students follow, means that centres will be able to build up resources to help support students in carrying out the tasks year-on-year. The five set tasks will be based around each section of the specification content for Unit 2. Most of the focus will be on that section, but not exclusively, so students can draw on their knowledge and understanding of other areas of the specification.
The range of topics is designed to be generic, and this allows you to contextualise them to your own local situation. This facilitates the relationships that many centres have built up with local businesses, and allows students to gain an insight into the issues that face local, small businesses.
How it works in practiceFor many centres the new controls will reinforce what they already do. The security of students’ work and the controls that are in place to ensure that students’ work is their own are areas with which most centres will be familiar. The benefits of the new QCA regulations mean that controlled assessment tasks must be carried out in a defined period of time, and the level of control for each of the core elements (task setting, task taking and task marking) is clearly laid out, making the process more manageable for you and your students. You will be able to plan ahead to set aside specific periods of time for controlled assessment which best suit your timetable and curriculum planning, which can help maximise student learning.
Students can have their research with them when writing up the task under highly controlled conditions. This research can be used as appendices to the task, showing evidence of where the student has gained their information from.
Controlled assessment tasks will be available in June each year. Centres can choose to enter students for assessment at the end of Year 10 following the completion of the core unit, or wait until Year 11 when students have gained a greater degree of maturity. For students the burden of coursework requirements bunched in March and April of Year 11 is removed, making the whole process less stressful.
This section contains two exemplars. Each piece will be followed by a short commentary explaining the characteristics of the work that highlight the key skills demostrated.
Exemplar �
Task: Based on a question from Section 2.1 of the specification.Choose a local business that has three competitors in the locality.What is the most important way in which the business you have chosen competes with its rivals?
Student answerMy research is based on Business X hardware store in Uppingham. The store is an established local business that has been operating for over 60 years. The three main competitors it has are Business W, another small business at the other end of the high street, Business Y, a large national store based in Corby, 4 miles away, and Business Z, another national builder’s merchants based in Oakham which is 3 miles away. Appendix 1 shows a map outlining the location of the four businesses.
Main features of each competitor
Business Y and Business Z
Both the larger national stores are in a position where they can exploit the advantages of size by bulk buying which reduces unit or average costs. This means that the discounts on materials and equipment they get can be passed onto the consumer in the form of competitive prices. They have a wide range of materials available and this provides consumers with a wide choice. Their size also means that they can store not only a wide range of different products but they can also store larger quantities of them so this helps consumers who are planning larger projects. For example, Business has a section of the store that has bathrooms, consumers could buy a complete bathroom suite for their house.
Both Business and Business Z have free delivery services on bulky item to customers in the local area and this means that customers are not reliant on their own transport. This provides convenience which is a key source of competitive advantage over Business X and Business W.
Appendix 2 contains a summary of the main offering of both Business Y and Business Z to demonstrate the wide range of choice and competitive prices that each are able to offer compared to Business X and Business W.
Business W:
Business W has been in existence or 35 years. Its location on the main high street in the town means that it is able to get passing trade. Its main source of competition is to provide local people with a range of essential items for the home and for small DIY projects.
It is able to respond to the needs of its consumers by changing its stock to suit the seasons. In spring, for example, it offers products for the garden including plants, barbecues, compost and so on. In the winter it has coal and Christmas decorations. In this way it aims to be flexible in meeting the changing needs of its customers. Unlike the larger national stores it does not have a wide range of choice and its prices are relatively high (see appendix 3) in comparison to both the national stores and to Business X. The store is laid out in a more open plan way than Business
Section B: Assessment guideX giving it a less claustrophobic feel and allows customers to browse in relative comfort to select the items they require.
Business X:
Business X is a very well respected and established business in Uppingham. It has the disadvantage of being small and pokey but it does have three floors which allow it to offer a greater range of goods than that of Business W but not as much as the national chains.
As detailed in Appendix 3, its prices are higher than those of the national chains and some are higher than Business W. It is clear from this that price is not a key source of competition with its rivals. However, it does contain a greater range of products than Business W so for local people who need to buy items and who do not want to travel Business X have a competitive advantage over Business W. Appendix 4 shows a comparison of the electric drills available at each of the four outlets. The range and choice of the two national chains is understandably higher than that of the smaller outlets and their prices are also cheaper. However, it can be seen that Business X has more choice than Business W. In addition, the price of a Black and Decker BD21 is only 5% higher than that in Business Z and 7% higher than in Business Y.
It may well be that the relatively small difference in price will not be that significant in purchasing decisions by consumers. It will, of course depend on the level of price sensitivity of the product concerned. In appendix 5, a small survey of 10 local people suggests that price sensitivity for drills is relatively low so Business X may well be able to compete effectively with its larger rivals.
Business X prides itself on meeting customer needs. The shop is very cramped despite being on three floors. Every space is utilised and it has the air of ‘Open All Hours’ about it. There are very few things that Business X cannot provide for its customers as a result of the high levels of different stock that the store carries. It does not have a delivery service and does not sell bulky items like bricks, sand and large quantities of timber. However, Business X do not see this type of customer as being their core business.
Business X rely very much on repeat purchase and for that they seek to provide a high level of customer service. In a survey of shoppers in Uppingham High Street, 65% thought that the personal service at Business X was better than at Business W (see appendix 6). In addition to this personal service, Business X know that its customers are likely to use the store because of the range of items it carries and the fact that they can acquire smaller quantities than might be the case with the pre-packed items on sale at the larger national chains. Its larger stock levels also means that it competes favourably with the more open plan Business W.
Conclusions
Business X has a distinct disadvantage compared to the larger national chains. It cannot compete on price or range of products but equally, it knows this and does not try and compete on this basis. Instead it focuses on meeting the needs of its customers. The fact that it has been established for many years means that it knows its customer base very well. One of the key features of successful marketing (see appendix 7) is to anticipate, identify and satisfy the needs of its customers and this is what Business X seeks to achieve.
The most important source of competitive advantage is the level of personal service it offers. However, this needs to be backed up by the availability of stock to meet the needs of its local customers. The staff in the shop, led by the owner Tom, know every inch of the shop and have excellent product knowledge as well as excellent knowledge of the area gained by their 60+ years of existence in the town. This means that if customers come into the store asking for items – even when the description of what they want is fuzzy, Business X can respond quickly and efficiently. By giving customers what they want, Business X are able to provide added value; customers are prepared to pay higher prices for the convenience and the degree of personal service they receive.
Once someone has shopped in Business X, they know that they can go back in and get that same
level of personal service and this is what drives the repeat custom on which the success of the business relies. Business X accept that they are not going to generate the sort of revenues that the larger chains can but rely on relatively large amounts of small transactions to generate their revenues. The lower overhead costs that they have compared to the larger chains means that they are able to generate the profit levels that has kept the business going for such a long time.
In addition, Business X know that the level of customer service they offer is superior to that of the larger stores. Business Z’s main customer base are builders (see appendix 8) whereas in Business Y, the staff has limited product knowledge and have considerably less experience than the staff in Business X. This is a key source of competitive advantage over its larger rivals.
Business X’s main competitor is really Business W. However, it meets this competition by offering a greater range of goods at more competitive prices compared to its high street rival. The fact that a majority of customers in the small survey felt the level of service at Business X was better is further evidence of the main way in which the business competes against its local rival and against the larger national stores.
Moderator commentThis is an excellent piece of work that shows a wide range of skills and which meets each of the elements of the assessment criteria at a high level. The work is well researched and the appendices show evidence of different forms of research, both primary and secondary. Appropriate business terminology is used throughout, and the whole piece demonstrates evidence that the student is comfortable and confident in the use of key concepts in the specification.
Research
There is evidence of extensive research being carried out. All four outlets were visited, there is evidence in the appendices of primary and secondary research which was carried out and where the research was interpreted appropriately in the write up.
Mark – 10/12
Present information/data
The submission was presented appropriately using relevant sub-headings throughout. The appendices showed a range of presentational techniques, including charts and graphs, and there is a clear attention to detail shown.
Mark – 8/8
Analysis
The task is broken down clearly into manageable sections, and a clear explanation of key elements of competition is provided. The analysis uses appropriate terminology, and the student shows the ability to organise and select material from their research appropriately to present a concise analysis. Relevant patterns are identified, and the commentary is clear throughout.
11/12
Evaluation
The judgements made throughout are supported with reference to the evidence collected – often through reference to the appendices. The analysis in the main section is drawn together and the student arrives at a clear conclusion about the main source of competition.
Task: Based on a question from Section 2.5 of the specification.Choose a local business. To what extent have recent changes in interest rates affected the business you have chosen to investigate?
Student answerFor the purposes of this guide the local business will be classified as ‘Shop A’.
Natash a sells high priced clothesIf intrest rates rise people have less money to spendThey cut back on clothesNatasha’s revenue goes downIf interest rates fall people will have more money to spendThat boosts Natasha’s revenues
What has happened?
Natasha has seen her business stay stable
Revenues have not grown
The number of customers has not increased
Her costs have gone down so this is good (see appendix 2)
Revenues
I talked to the owner, Natasha about the business (see appendix 4)
The interview was very interesting and helped me a great deal
The shop made good profits last year but Natasha did not want to tell me how much
It is a private limited company
Whats happened to intrest rates?
Interest rates are set by the Bank of England every month.
Over the last year they have started to fallas shown byt he graph (source: Biz/ed)
Some background:
To what extent have recent changes in interest rates rates affected the business you have chosen to investigate?
Student B
The Business:
The business I am investigating is a ladies clothes shop called shop A.
The shop is located in Uppingham in Rutland
It caters for those interested in fashionable clothes
Its clothes are quite high priced It has few competitors in Uppingham
Moderator commentThis student has chosen to produce her piece of work using a presentation. The main impression from going through the presentation is that the student has some understanding of the issues involved. What it lacks is some of the depth of analysis and evaluation that was evident in Exemplar 1. It is perfectly possible for a student to produce an excellent piece of work using different media such as presentations, however, and this is not meant to suggest that a presentation cannot achieve the same level of analysis and evaluation as a written piece.
Research
There is evidence of a range of sources being used in the research. The student has used secondary sources and has met the owner of the business to interview her. The detail of the interview and the other sources of research are detailed in the appendices which are referred to appropriately.
Mark – 8/12
Present information/data
The work uses appropriate presentation methods but it could have made better use of images and charts in the presentation. Some of the data in the appendices is sketchy.
Mark – 4/8
Natash a sells high priced clothesIf intrest rates rise people have less money to spendThey cut back on clothesNatasha’s revenue goes downIf interest rates fall people will have more money to spendThat boosts Natasha’s revenues
What has happened?
Natasha has seen her business stay stable
Revenues have not grown
The number of customers has not increased
Her costs have gone down so this is good (see appendix 2)
Revenues
Natasha thinks the intrest rate falls are notenoughThere are other problems in the economyPeoples mortgages are going up because of the credit crunch (see appendix 3)Natasha’s clothes are expensive - people cutback on luxuriesNatasha thought that she was opperating in a rich area and intrest rates would not affect her - she was wrong
Conclusion:
Intrest rates can affect spending and costs
Natasha’s cost have falled a bit
Her revenues have not changed
The state of the economy is likely to be the main reason why
Other things affect a business apart from intrest rates
There is some evidence of analysis which shows some understanding of the issue. The use of terminology and concepts is present but limited, and the analysis lacks depth.
6/12
Evaluation
Judgements are made based on the analysis, but these are made at a relatively simple level. There is some supporting evidence offered in the appendices for conclusions drawn (slide 9 for example), and the final slide does show some balance in the conclusion, in recognising other factors that affect profits in a business apart from interest rates.
5/8Total mark: 23/40
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