AS(7131) A-level (7132) Specifications For teaching from September 2023 onwards For as exams in May/June 2024 onwards For a-level exams in May/June 2025 onwards Version 2.0 This lesson covers: The value of setting operational objectives Operational objectives include: costs quality speed of response flexibility environmental objectives added value This lesson was written by Sarah Hilton for Revisionstation

AS(7131) A-level (7132) Specifications For teaching from September 2023 onwards For as exams in May/June 2024 onwards For a-level exams in May/June 2025 onwards Version 2.0 This lesson covers: The value of setting financial objectives to include: The concept of a return on investment Revenue, costs and profit objectives Cash flow objectives The distinction between cash flow and profit The distinction between gross profit, operating profit and profit for the year This lesson was written by Sarah Hilton for Revisionstation

Students should be able to: understand the meaning of a market and competition analyse potential impacts of competition on businesses and identify situations when businesses face minimal or no competition understand the risks businesses face understand the reasons why all businesses face uncertainty understand the reason why entrepreneurs embark on running businesses understand the activities businesses can undertake to minimise risks This lesson is written by Sarah Hilton for Revisionstation

This lesson is suitable for students that need extra support with the tricky topic of Price Elasticity of Demand (PED It is written for students studying Edexcel A level Business but would also suit students on the Pearson International Edexcel A level business course. This includes a worksheet and a separate answer booklet in Word and PDF format Written by Sarah Hilton at Revisionstation

This lesson is suitable for students that need extra support with the tricky topic of ratio analysis It is written for students studying Edexcel A level Business but would also suit students on the Pearson International Edexcel A level business course. This includes a worksheet and a separate answer booklet in Word and PDF format Written by Sarah Hilton at Revisionstation

This lesson includes a PowerPoint and a worksheet and covers: a) Calculation of sales volume and sales revenue b) Calculation of fixed and variable costs Written by Sarah Hilton for Revisionstation

234 Resource Management 1 PRODUCTION, PRODUCTIVITY AND EFFICIENCY This complete lesson includes: a) Methods of production: • job • batch • flow • cell b) Productivity: • output per unit of input per time period • factors influencing productivity • link between productivity and competitiveness • ways to improve productivity c) Efficiency: • production at minimum average cost • factors influencing efficiency • ways to improve efficiency d) The distinction between labour- and capital-intensive production e) Competitive advantage from short product lead-in times This lesson is written by Sarah Hilton at Revisionstation

234 Resource Management 4 QUALITY MANAGEMENT This complete lesson includes: a) Quality: • control • assurance • circles b) Total Quality Management (TQM) c) Continuous improvement (Kaizen) d) Competitive advantage from quality management This lesson is written by Sarah Hilton at Revisionstation

234 Resource Management 3 INVENTORY CONTROL This complete lesson includes: a) Interpretation of inventory control diagram b) Buffer inventory c) Implications of poor inventory control d) Just in time (JIT) e) Waste minimisation f) Competitive advantage from lean production This lesson is written by Sarah Hilton at Revisionstation

234 Resource Management 2 CAPACITY UTILISATION This complete lesson includes: a) Capacity utilisation: current output (divided by) maximum possible output (× 100) b) Implications of under and over-utilisation of capacity c) Ways of improving capacity utilisation (under and over utilisation) This lesson is written by Sarah Hilton at Revisionstation

235 External influences 1 ECONOMIC INFLUENCES This complete lesson includes: a) The effect on businesses of, and how they can best respond to, changes in: • the rate of inflation • exchange rates (appreciation, depreciation) • interest rates • taxation and government spending • the business cycle. This lesson is written by Sarah Hilton at Revisionstation

235 External influences 2 LEGISLATION This complete lesson includes: a) The effects on businesses of: • consumer protection • employee protection • environmental protection • competition policy • health and safety • intellectual property rights (copyright, patents and trademarks). This lesson is written by Sarah Hilton at Revisionstation

235 External influences 3 THE COMPETITIVE ENVIRONMENT This complete lesson includes: a) The effects on businesses of competition in terms of competitor: • numbers • size • behaviour b) Ways for a small business to compete in a competitive market This lesson is written by Sarah Hilton at Revisionstation

2.3.1 Planning a business and raising finance 4 FORMS OF BUSINESS This complete lesson includes: a) Sole trader, partnership and private limited company (Ltd) b) Franchising, social enterprise, lifestyle businesses, online businesses c) Growth to public limited companies (plc) and stock market flotation This lesson is written by Sarah Hilton at Revisionstation

232 Financial Planning 3 BREAK-EVEN This complete lesson includes: a) Contribution: selling price − variable cost per unit b) Break-even point: • total fixed costs + total variable costs = total revenue c) Using contribution to calculate the break-even point d) Margin of safety e) Interpretation of break-even charts f) Limitations of break-even analysis This lesson is written by Sarah Hilton at Revisionstation

233 Managing Finance 1 PROFIT This complete lesson includes: a) Statement of comprehensive income (profit and loss account): b) Calculation of: • gross profit • operating profit • profit for the year (net profit) • measuring profitability: calculation of gross profit margin, operating profit margin, and profit for the year (net profit) margin c) Ways to increase profits • ways to improve profitability This lesson is written by Sarah Hilton at Revisionstation

233 Managing Finance 2 LIQUIDITY This complete lesson includes: a) Distinction between profit and cash b) Statement of financial position (balance sheet): • measuring liquidity: calculating current ratio and acid test ratio • ways to improve liquidity, including assets, supplier credit terms, factoring, inventory JIT c) Working capital and its management: the importance of cash This lesson is written by Sarah Hilton at Revisionstation

233 Managing Finance 3 BUSINESS FAILURE This complete lesson includes: a) Internal causes of business failure: • poor management of cash flow • overestimation of sales • overtrading • poor inventory control • poor marketing Poor quality b) External causes of business failure: • market conditions • competition • economic • exchange rates • interest rates • government regulations • supplier problems • natural phenomena. This lesson is written by Sarah Hilton at Revisionstation

2.3.1 Planning a business and raising finance 5 LIABILITY This complete lesson includes: a) Implications of limited and unlimited liability, including advantages and disadvantages b) Finance appropriate for limited and unlimited liability businesses This lesson is written by Sarah Hilton at Revisionstation

232 Financial Planning 2 SALES FORECASTING This complete lesson includes: a) Purpose of sales forecasts b) Factors affecting sales forecasts: • consumer trends • economic variables • actions of competitors c) Difficulties of sales forecasting This lesson is written by Sarah Hilton at Revisionstation