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1. Business and its environment

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5 topics · 12 learning objectives

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  1. 1.1 Enterprise

    1. 1.1.1Business activity

      • The nature of business activity - the purpose of business activity - the factors of production needed for business activity: land, labour, capital and enterprise - the concept of adding value - the nature of economic activity, the problem of choice and opportunity cost - the dynamic business environment - why businesses succeed or fail - differences between local, national, international and multinational businesses

    2. 1.1.2Entrepreneurs and intrapreneurs

      • The role of entrepreneurs and intrapreneurs - the qualities entrepreneurs and intrapreneurs need for success - the role of entrepreneurship in creating and starting up a business - the role of intrapreneurship in the ongoing success of a business - barriers to entrepreneurship - business risk and uncertainty - the role of business enterprise in the development of a country

    3. 1.1.3Business plans

      • Business plans - the meaning and purpose of business plans - the key elements of business plans - the benefits and limitations of business plans

  2. 1.2 Business structure

    1. 1.2.1Economic sectors

      • Economic sectors - the primary, secondary, tertiary and quaternary sectors and businesses within those sectors - the public and private sectors and businesses within those sectors - the reasons for and consequences of the changing relative importance of these sectors

    2. 1.2.2Business ownership

      • Business ownership - the main features of different types of business ownership: sole traders, partnerships, private limited companies, public limited companies, franchises, co-operatives, joint ventures and social enterprises - the appropriateness of different types of business ownership - the concepts of unlimited liability and limited liability and their importance - the advantages and disadvantages of changing from one type of business ownership to another

  3. 1.3 Size of business

    1. 1.3.1Measurements of business size

      • Measurements of business size - the appropriateness of different methods of measuring the size of a business

    2. 1.3.2Significance of small businesses

      • Significance of small businesses - the advantages and disadvantages of being a small business - the strengths and weaknesses of family businesses - the importance of small businesses and their role in the economy - the role of small businesses as part of the industrial structure in some industries

    3. 1.3.3Business growth

      • Business growth - why and how a business might grow internally (organic growth) - the different types of external growth through merger and takeover: horizontal, vertical (backward and forward), conglomerate diversification, friendly merger, hostile takeover - the impact of a merger/takeover on stakeholders - why a merger/takeover may or may not achieve objectives - the importance of joint ventures and strategic alliances as methods of external growth

  4. 1.4 Business objectives

    1. 1.4.1Business objectives

      • Business objectives in the private sector and public sector - the objectives of businesses - private sector, public sector, and social enterprises - the importance of business objectives - corporate social responsibility (CSR) and the triple bottom line - economic (financial), social and environmental objectives - the relationship between mission statement, aims, objectives, strategy and tactics

    2. 1.4.2Objectives and decisions

      • Objectives and business decisions - the different stages of business decision-making and the role of objectives in the stages of business decision-making - how objectives might change over time - the translation of objectives into targets and budgets - the need for communication of objectives and their likely impact on the workforce - SMART (specific, measurable, achievable, realistic, time-limited) objectives - how ethics may influence business objectives and activities

  5. 1.5 Stakeholders in a business

    1. 1.5.1Business stakeholders

      • Business stakeholders - individuals or groups with an interest in the activities of a business - internal stakeholders and external stakeholders - the roles, rights and responsibilities of stakeholders

    2. 1.5.2Stakeholder influence

      • The relative importance and influence of stakeholders on business activities - the impact of business decisions on stakeholders, and their reactions - the impact of stakeholder aims on business decisions - how and why a business needs to be accountable to its stakeholders - how conflict might arise from stakeholders having different aims and objectives - how changing business objectives might affect its stakeholders