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CCEA
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GCE ADVANCED SUBSIDIARY (AS) AND ADVANCED (A) LEVEL SPECIFICATIONS

SUBJECT CRITERIA FOR BUSINESS STUDIES

1. Introduction

1.1 AS and A level subject criteria set out the knowledge, understanding, skills and assessment objectives common to all AS and A level specifications in a given subject. They provide the framework within which the awarding body creates the detail of the specification.

Subject criteria are intended to:

• help ensure consistent and comparable standards in the same subject across the awarding bodies;
• define the relationship between the AS and A level specifications, with the AS as a subset of the A level;
• ensure that the rigour of A level is maintained;
• help higher education institutions and employers know what has been studied and assessed.

Any specification which contains significant elements of the subject Business Studies must be consistent with the relevant parts of these subject criteria.

2. Aims

2.1 AS and A level specifications in Business Studies should encourage students to:

• develop a critical understanding of organisations, the markets they serve and the process of adding value. This should involve consideration of the internal workings and management of organisations and, in particular, the process of decision-making in a dynamic external environment;
• be aware that business behaviour can be studied from the perspectives of a range of stakeholders including customer, manager, creditor, owner/shareholder and employee. In addition, students should be aware of the economic, environmental, ethical, governmental, legal, social and technological issues associated with business activity. Students should understand that Business Studies draws on a variety of disciplines and that these perspectives and disciplines are interrelated;
• acquire a range of skills including decision-making and problem solving in the light of evaluation and, where appropriate, the quantification and management of information.

3. Specification Content

3.1 There are no prior knowledge requirements for AS and A level specifications in Business Studies.

3.2 In order that students gain a holistic understanding of Business Studies it is essential that each section of knowledge and understanding is part of both AS and A level specifications. However, A level specifications will further develop higher level skills and extend beyond AS in terms of breadth and depth of knowledge and understanding.

Knowledge, Understanding and Skills

3.3 AS and A level specifications in Business Studies should:

1. emphasise the nature and process of decision-making within organisations;
2. focus on organisations in different business sectors and environments, recognising that they face varying degrees of competition. These organisations include:
   
   large and small;
   local, regional, national and multinational;
   for profit and not for profit;

3. be firmly rooted in the current structure of business and business practice;
4. enable students to understand the importance of seeing business problems and situations through different perspectives;
5. emphasise that information management affects all functional areas of business. Students should understand that the efficient use of information depends upon the establishment of effective IT based information management systems;
6. enable students to identify business problems, plan appropriate investigations into such problems, and make justifiable decisions consistent with their analysis of primary and/or secondary material in order to suggest solutions to those problems.

3.4 The knowledge and understanding is set out in a two-column format. The essential knowledge and understanding is set out on the left-hand side of the page together with a commentary, where appropriate, on the right-hand side of each section. There is no implied hierarchy in the order in which the essential knowledge and understanding is presented, nor should the length of the various sections be taken to imply any view of their relative importance.

3.5 AS and A level specifications should require students to study:

• Objectives and the Business Environment
• Marketing
• Accounting and Finance
• People in Organisations
• Operations Management.

3.5.1 Objectives and the Business Environment

In AS specifications the emphasis should be on the strategic importance of clear objectives. In particular, there should be an awareness of how the business environment provides opportunities and imposes constraints on the pursuit of short-term and long-term objectives.

A level specifications should, in relation to various business situations, require students to recognise potential conflict between the objectives of different stakeholder interests and suggest and evaluate resolutions to such conflict. Students should be required to recognise the inter-relationship between objectives and an uncertain business environment and to devise and evaluate strategies which aim to anticipate, respond to and manage change.

Business objectives	Differing stakeholder and organisational objectives and priorities. Organisational culture.
Impact on business of external influences	Micro factors: the market; competition. Market failure; labour markets. Strategic implications of macro factors: interest, exchange and taxation rates; changes in the level of economic activity at local, national and international level; the legal, political and social environment.
Business strategy	The pursuit of objectives. Methods of analysis. Business planning.

3.5.2 Marketing

In AS specifications the study of marketing should focus on the processes of finding and satisfying customers with an emphasis on marketing objectives, strategy and tactics.

A level specifications should require students to analyse and evaluate the potential of different marketing strategies, tactics and techniques for enabling business to identify and adapt to changing market opportunities and achieve their objectives.

Nature and role of marketing	Breadth of marketing activity and its relationship with other business activities.
Market research	Segmentation, share and growth. Methods of collecting and analysing data.
Marketing plan	Objectives/strategy. The marketing mix, the development of pricing, product, distribution and promotion strategies. Responsiveness of demand.
Forecasting	Sales forecasting, role and techniques.

3.5.3 Accounting and Finance

AS specifications should emphasise the use of accounting and financial information as an aid to decision-making and financial control.

A level specifications should require students to use a range of performance measures critically and to evaluate the appropriateness of different financial techniques in shaping decision-making in the context of the wider strategic objectives of business.

Budgeting	Purpose of budgets. Cash flow forecasting. Calculating and interpreting variances.
Balance sheets and profit and loss accounts	The functions of accounts and the limitations to their use. Simple interpretation of final accounts, including ratio analysis. (The construction of accounts is not required.)
Classification and analysis of costs	Types of costs. Costing and decision-making. Contribution and break-even analysis.
Qualitative and quantitative factors involved in investment appraisal	Forecasting cash flows from an investment in a situation of market and cost uncertainty. Techniques of investment appraisal.

3.5.4 People in Organisations

AS specifications should require students to understand the significance of various management and organisation structures for a business and its employees. Students should recognise the opportunities and constraints, in relation to people in organisations, created by the business/legal environment, and to appreciate the contributions of selected management theories.

A level specifications should require students to understand the inter-relationships between organisational structure, leadership style and motivation in a business, and to evaluate the implications of these for the effective planning and management of human resources.

Human resource planning	Relationships between organisational objectives and human resources.
Management structure and organisation	Organisational design.
Motivation	Motivation theory; leadership and management styles.
Employer/employee relations	Principles of employment law. Differing approaches to employee relations at the collective and individual level. Employee participation.

3.5.5 Operations Management

In AS specifications the study of operations management should focus on the way organisations use inputs and manage business processes efficiently to satisfy customers.

A level specifications should require students to analyse and evaluate the use of different operations management tools to enhance decision-making in order to improve efficiency and quality.

Operational efficiency	Scale and capacity utilisation; methods of organising production. Resource management: stock control, waste minimisation, pollution control. Decision-making techniques.
Quality	Quality assurance; continuous improvement; training and development. Research and development; new product design.

3.6 Critical understanding

Students should acquire a critical understanding of businesses and the environment within which they work and be able to evaluate material and information as presented in a range of formats so as to distinguish between fact and opinion in order to make informed judgements.

4. Key Skills

4.1 AS and A level specifications in Business Studies should provide opportunities for developing and generating evidence for assessing the Key Skills listed below. Where appropriate, these opportunities should be directly cross-referenced, at specified level(s), to the criteria listed in Part B of the Key Skills specifications.

• Communication
• Information Technology
• Application of Number
• Improving Own Learning and Performance
• Working with Others
• Problem Solving

5. Assessment Objectives

5.1 The assessment objectives for AS and A level are the same.

5.2 All candidates must be required to meet the following assessment objectives. The assessment objectives are to be weighted in all specifications as indicated, with assessment objectives 3 and 4 given a greater weighting for A level than for AS.

Assessment Objectives		Weighting
		AS	A2	A level
AO1	demonstrate knowledge and understanding of the specified content;	25-35%	15-25%	20-30%
AO2	apply knowledge and critical understanding to problems and issues arising from both familiar and unfamiliar situations;	20-30%	20-30%	20-30%
AO3	analyse problems, issues and situations;	20-30%	20-30%	20-30%
AO4	evaluate, distinguish between fact and opinion, and assess information from a variety of sources.	15-25%	25-35%	20-30%

6. Scheme of Assessment

Internal Assessment

6.1 A level specifications in Business Studies may have a maximum internal assessment weighting of 30%.

Synoptic Assessment

6.2 All specifications should include a minimum of 20% synoptic assessment. All synoptic assessment units should be taken at the end of the course and be externally assessed. Synoptic assessment relates to all the assessment objectives. The definition of synoptic assessment in the context of Business Studies is as follows:

• Synoptic assessment should address the requirement that A level Business Studies specifications should encourage students to see the relationship between different aspects of the subject.

• Synoptic assessment involves the explicit integration of knowledge, understanding and skills learned in different parts of the A level course.

• Where a specification contains options, synoptic assessment should focus on the elements contained within the compulsory content.

Ways in which synoptic assessment might be conducted include:

• decision-making/problem solving exercises, requiring candidates to draw together knowledge, understanding and skills learned throughout the course to tackle a decision, problem or issue that is new to them;

• a case study within which specific questions require candidates to apply knowledge, understanding and skills learned throughout the course;

• internal assessment requiring candidates to apply knowledge, understanding and skills learned in other parts of the course, eg a project based on experience of work;

• preparing a business plan.

Key Skill Assessment

6.3 The Key Skill of Communication must contribute to the assessment of Business Studies at AS and A level as stated in paragraph 13 of the Advanced Subsidiary and Advanced level qualification-specific criteria.

The requirement for all AS and A level specifications to assess candidates' quality of written communication will be met through all four assessment objectives.

7. Grade Descriptions

7.1 The following grade descriptions indicate the level of attainment characteristic of the given grade at A level. They give a general indication of the required learning outcomes at each specified grade. The descriptions should be interpreted in relation to the content outlined in the specification; they are not designed to define that content. The grade awarded will depend in practice upon the extent to which the candidate has met the assessment objectives overall. Shortcomings in some aspects of the examination may be balanced by better performances in others.

7.2 Grade A

Candidates will demonstrate in-depth knowledge and critical understanding of a wide range of business theory and concepts. They will apply this knowledge and understanding to analyse familiar and unfamiliar situations, problems and issues, using appropriate numerical and non-numerical techniques accurately. They will effectively evaluate evidence and arguments, making reasoned judgements to present appropriate and supported conclusions.

7.3 Grade C

Candidates will demonstrate knowledge and understanding of a range of business theory and concepts. They will apply this knowledge and understanding to analyse familiar and unfamiliar situations, problems and issues. They will use both numerical and non-numerical techniques. They will evaluate evidence and arguments to present reasoned conclusions.

7.4 Grade E

Candidates will demonstrate knowledge and understanding of a limited range of business theory and concepts. They will show some ability to use this knowledge and understanding in order to analyse familiar and unfamiliar situations, problems and issues. They will make some use of both numerical and non-numerical techniques. Candidates' evaluation of evidence and arguments will be limited.