AS Economics and Business
Past Examination Papers
2014 2013 2012 2011 2010 2009 2008 Mark Schemes 2014 2013 2012 2011 2010 2009 2008 Examination Reports 2014 2013 2012 2011 2010 2009 2008 |
Unit 1: Developing New Business Ideas
1.3.1 Characteristics of successful entrepreneurs Characteristics of entrepreneurs What motivates entrepreneurs? Significance of profit and non-profit motives, ethical stance. Leadership styles. Autocratic. Paternalistic. Democratic. McGregor’s Theory X and Theory Y. 1.3.2 Identifying a business opportunity What makes a market? What should firms supply? Identifying what consumers want or need Factors affecting demand. Interaction of supply and demand. Benefits of market orientation. 1.3.3 Evaluating a business opportunity Primary (quantitative and qualitative) and secondary research. Problems with sample size, sampling method used and potential bias. Market size, potential market growth, market segmentation analysis, identification of market niches. Market summaries for different product or service areas can be found on www.keynote.co.uk. Positioning the business idea Strengths and weaknesses of existing suppliers, how they differentiate themselves, market mapping. Competitive advantage of product or service idea in context, adding value. Product trial Test marketing of a product to assess likely demand levels, consideration of how to turn product trial into repeat purchases. Opportunity costs of developing one business idea as opposed to another Trade-offs between opportunities, effects on stakeholders. 1.3.4 Economic considerations Current economic climate Implications of government decisions for business, such as a change in interest rates, effect of government spending or taxation, consequences for business of unemployment and inflation, changes in exchange rate. 1.3.5 Financing the new business idea Sources of finance Internal sources: retained profit, sale of assets. External sources: loans, debentures, venture capital, ordinary share capital, overdrafts, leasing, trade credit. Sources of finance appropriate for sole trader and company organisations, implications of limited or unlimited liability. 1.3.6 Measuring the potential success of a business idea Estimation of sales levels, costs and profit Identification of pricing strategy to be used, sales volume, fixed and variable costs to calculate potential profit. Break-even revenue level Identification of the contribution from a potential range of products or services. Identification of break-even revenue. Assessment of whether the break-even revenue level is achievable. Desired margin of safety. Measurement of profit Basic profit and loss, sales revenue less deductions to identify gross and operating profit), calculation and use of gross and operating profit margins. 1.3.7 Putting a business idea into practice Creation of a business plan. |
Unit 2b Business Economics
2.3.1b How businesses respond to their markets
Dynamic nature of markets. Changes in demand and supply. Price elasticity of demand Determinants of Income Elasticity of Demand (YED) values. The purpose of marketing in changing markets 2.3.2b How does market structure affect business? How does competition affect the market? Different market structures. Monopoly, oligopoly, imperfect and perfect competition and the spectrum of competition. 2.3.3b What makes firms effective? Different types of organisational structures. Chain of command. Span of control. Decentralisation and centralisation. Delegation, consultation, empowerment, team working, flexible working, Total Quality Management. Capacity utilisation. Lean management. Just in time (JIT). 2.3.4b Businesses big and small Reasons for bigger businesses. Increased market share, profitability, sales turnover and power. How increasing size affects costs. Economies of scale and falling average cost. Minimum Efficient Scale and diseconomies of scale. Monopoly. Monopsony. Niche markets. Micro marketing. 2.3.5b An uncertain future Causes of uncertainty. Shock. Macroeconomic change. Exchange rate. Government intervention. Why uncertainty is a problem Effects of uncertainty on business planning and strategic decisions. 2.3.6a How businesses can try to reduce uncertainty Use of macroeconomic indicators, planning, research and development (R&D), market orientation and market research. 2.3.6b How does macroeconomic change affect business? What is the economic cycle? Real and nominal values. Up-to-date statistics: http://www.statistics.gov.uk/, http://www.hm-treasury.gov.uk, www.bized.co.uk. How does inflation affect us all? Uncertainty, re-distribution of wealth, loss of competitiveness, skills shortages. What is unemployment and how does it affect us all? Unemployment, costs to economy, opportunity cost, social cost. What is structural change? Responding and adapting to change, implications of change for the future, rise of the knowledge economy. |
Past Examination Papers
2014 2013 2012 2011 2010 2009 2008 Mark Schemes 2014 2013 2012 2011 2010 2009 2008 Examination Reports 2014 2013 2012 2011 2010 2009 2008 |