AQA Unit 2 BUSS2: Managing a Business

AQA Unit 2BUSS2: Managing a Business

AQA Unit 2

Recap of Unit 1• Unit 1 (also known as BUSS1: Planning and Starting a Business) concentrates on the issues faced by new businesses.

• The focus is on small businesses, either before start-up or after they have been trading for a short period of time.

• The Unit 1 exam consists of:• Section A — short-answer questions requiring definitions, explanations and calculations.• Section B — questions requiring extended analytical and evaluative responses.

• The majority of marks (63%) on Unit 1 are awarded for demonstrating content and application.

AQA Unit 2

Unit 2

• Unit 2 focuses on established, medium-sized businesses

operating in the UK.

• You will be expected to consider the challenges such firms

face and the methods that can be used to improve their

performance.

• It is important that you carry out your own research into real

businesses currently operating in the UK to develop your

understanding.

AQA Unit 2

Unit 2 content (1)

• Unit 2 content covers the key functional areas of business.

• Finance: using budgets, improving cash flow, measuring

and increasing profit.

• People in Business: improving organisational structures,

developing an effective workforce (recruitment, selection

and training), developing and retaining an effective

workforce (motivating employees).

AQA Unit 2

Unit 2 content (2)

• Operations Management: making operational decisions,

developing effective operations (quality), developing

effective operations (customer service), working with

suppliers, using technology in operations.

• Marketing and the Competitive Environment: effective

marketing, designing an effective marketing mix, using the

marketing mix (product, promotion, pricing, place),

marketing and competitiveness

AQA Unit 2

Unit 2 assessment

• The Unit 2 exam is worth a total of 80 marks.

• It lasts for 1 hour 30 minutes.

• It consists of two compulsory, multi-part data-response

questions.

• Each data-response question is worth a total of 40 marks.

• The businesses used in the exam may be real or fictional.

• The Unit 2 exam accounts for 60% of your AS (30% of the

overall A-level).

• Remember that, as with other units, quality of written

communication is assessed within AO4 Evaluation.

AQA Unit 2

Mark allocation for Units 1 and 2

Assessment objective

Unit 1(%)

Unit 2 (%)

Content 35 27

Application 28 23

Analysis 20 28

Evaluation 18 22

AQA Unit 2

Tips for answering questions

• Content earns fewer marks than in Unit 2. However, examiners can

only award marks for other skills if content is accurate and relevant.

• Make sure you take time to read — and use — the information in

each data response in order to earn application marks.

• Demonstrating analysis will earn more marks than any other skill in

Unit 2. Build up a logical argument for any causes or consequences

that you identify, e.g. ‘if this happens, it could lead to X…which

could result in Y…’

• Evaluation requires judgement or recommendations. This means

reaching a clear conclusion following logically from the points made

and the evidence presented.

AQA Unit 2

Unit 2 key terms (1)

• Adverse variance

• Advertising

• Branding

• Competitiveness

• Customer service

• Degree of competition

• Delegation

• Direct selling

• Distribution channels

• External recruitment

• Empowerment

• Factoring

• Favourable variance

• Financial incentives

• Induction training

• Internal recruitment

• Job description

• Job enlargement/enrichment

• Labour productivity

• Labour turnover

AQA Unit 2

Unit 2 key terms (2)• Levels of hierarchy

• Loss leader

• Marketing mix

• Mass marketing

• Merchandising

• Motivation theories

• Net profit margins

• Niche marketing

• On-the-job/off-the-job training

• Operational targets

• Organisational structure

• Overdraft

• Person specification

• Price skimming

• Price penetration

• Pricing strategies

• Pricing tactics

• Promotional mix

• Portfolio analysis

• Product life cycle

AQA Unit 2

Unit 2 key terms (3)

• Profitability

• Psychological pricing

• Quality

• Quality assurance

• Quality control

• Quality standards

• Rationalisation

• Sale and leaseback

• Sales promotions

• Short-term loans

• Span of control

• Sub-contracting

• Suppliers

• Team working

• Technology

• Total Quality Management

(TQM)

• Training

• Unique selling point (USP)

• Variance analysis

AQA Unit 2

And finally…

• Effective revision is the key to exam success.

• Make sure that you begin your revision in good time and

have access to the following resources:• A complete set of accurate and up-to-date class notes.• A textbook containing chapters written for the current

AQA Unit 2 specification.• A copy of the AQA Unit 2 specification.• Unit 2 past papers, mark schemes and examiners’

reports (download from www.aqa.org.uk).