Sarah Hilton has been a business examiner for over 20 years and a business teacher for longer. She is now a teacher trainer, business teacher and qualification developer. She runs the website revisionstation which provides smashing business teaching resources at budget prices.
Sarah Hilton has been a business examiner for over 20 years and a business teacher for longer. She is now a teacher trainer, business teacher and qualification developer. She runs the website revisionstation which provides smashing business teaching resources at budget prices.
Pearson Edexcel International A Level Business Unit 2.3.1. Planning a business and raising finance(5 complete lessons)
1 Planning
a) Content of a business plan.
b) Relevance and uses of a business plan.
2 Internal finance
a) Owner’s capital: personal savings.
b) Retained profit.
c) Sale of assets.
3 External finance
a) Sources of finance and their suitability for different circumstances:
• family and friends
• banks
• peer-to-peer funding
• business angels
• crowd funding
• other businesses.
b) Methods of finance and their suitability for different circumstances:
• loans
• share capital
• venture capital
• overdrafts
• leasing
• trade credit
• grants.
4 Forms of business
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.
5 Liability
a) Implications of limited and unlimited liability, including advantages and disadvantages.
b) Finance appropriate for limited and unlimited liability businesses.
Pearson Edexcel International A Level Business Unit 2.3.3 Managing Finance (3 complete lessons)
1 Profit
a) Calculation of:
• gross profit
• operating profit
• profit for the year (net profit).
b) Ways to increase profits.
c) Statement of comprehensive income (profit and loss account):
• measuring profitability: calculation of gross profit margin, operating profit margin, and profit for the year (net profit) margin
• ways to improve profitability.
2 Liquidity
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.
3 Business failure
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.
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:
Financial methods of assessing an investment, investment appraisal should include the calculation and interpretation of:
payback
average rate of return
net present value
Factors influencing investment decisions. Factors to include:
investment criteria
non-financial factors
risk and uncertainty
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:
Porter’s five forces, how and why these might change, and the implications of these forces for strategic and functional decision making and profits
An understanding of the five forces to include:
entry threat (barriers to entry)
buyer power
supplier power
rivalry
substitute threat
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 impact of the social and technological environment on strategic and functional decision making
Social changes to include demographic changes and population movements such as:
migration
changes in consumer lifestyle and buying behaviour
the growth of online businesses
The social environment to include Corporate Social Responsibility (CSR) and:
the reasons for and against (CSR)
the difference between the stakeholder v shareholder concept
Carroll’s Corporate Social Responsibility pyramid
Technological change should include the impact of technological change on functional areas and strategy
The pressures for socially responsible behaviour
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 impact of changes in the political and legal environment on strategic and functional decision making:
The political and legal environment should include a broad understanding of the scope and effects of law related to competition, the labour market and environmental legislation
The impact of government policy related to enterprise, the role of regulators, infrastructure, the environment and international trade
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 impact of changes in the political and legal environment on strategic and functional decision making:
The political and legal environment should include a broad understanding of the scope and effects of law related to competition, the labour market and environmental legislation
The impact of government policy related to enterprise, the role of regulators, infrastructure, the environment and international trade
This 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:
How to analyse data other than financial statements to assess the strengths and weaknesses of a business
Data other than financial statements should include operations, human resource and marketing data.
Data may be analysed over time or in comparison with other businesses
The importance of core competences
Assessing short and long-term performance
The value of different measures of assessing business performance
Methods of assessing overall business performance to include:
Elkington’s Triple Bottom Line (Profit, People, Planet).
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:
How to assess the financial performance of a business using balance sheets, income statements
financial ratios
profitability (return on capital employed)
liquidity (current ratio)
gearing
Efficiency ratios:
payables days
receivables days
inventory turnover
The value of financial ratios when assessing performance
Data may be analysed over time or in comparison with other businesses.
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:
Influences on the mission of a business
Internal and external influences on corporate objectives and decisions
Influences on corporate objectives should include the pressures for short termism, business ownership, the external and internal environment.
The links between mission, corporate objectives and strategy
The distinction between strategy and tactics
The impact of strategic decision making on functional decision making
Internal and external influences on functional objectives and decisions
The value of SWOT analysis
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:
Influences on the extent and methods of employee involvement in decision making
Employee representation methods to include trade unions and works council
How to manage and improve employer – employee communications and relations
Value of good employer – employee relations
This lesson is written by Sarah Hilton from 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 benefits of motivated and engaged employees
Theories of motivation should include Taylor, Maslow and Herzberg.
How to improve employee engagement and motivation
Financial methods of motivation should include:
piece rate
commission
salary schemes
performance-related pay
Non-financial methods of motivating employees
Empowerment
Team working
Flexible working
Job enrichment
Job rotation
Influences on the choice and assessment of the effectiveness of financial and non-financial methods of motivating employees
This lesson is 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:
Models of organisational structure
Functional
Product based
Regional
Matrix
Influences on organisational design
authority
span
hierarchy
delegation
centralisation and decentralisation
The value of changing organisational design
How managing the human resource flow helps meet human resource objectives:
human resource plan
recruitment
training
redeployment
redundancy
This lesson is 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:
Calculating and interpreting human resource data
Students should be able to calculate and interpret:
labour turnover
labour productivity
employee costs as percentage of turnover
labour cost per unit
The use of data for human resource decision making and planning
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 human resource objectives
employee engagement
talent development
training
diversity
alignment of employee and employer values
number, skills and location of employees
Methods of achieving resource objectives
Soft and hard Human Resource Management (HRM)
This lesson is 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:
Methods to improve cash flow
Assess ways of improving cash flow
Methods to improve profits and profitability
Assess ways of improving profits and profitability
Difficulties improving cash flow and profit
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:
Internal and external sources of finance
debt factoring
overdrafts
retained profits
share capital
loans
venture capital
crowd funding
Advantages and disadvantages of different sources of finance for short and long term uses
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:
Part 1:
How to construct and analyse budgets and cash flow forecasts
Variance analysis
Adverse and favourable variances
The value of budgeting
How to construct break-even charts
Break even output
Margin of safety
Contribution per unit
Total contribution
How to calculate and illustrate on a break-even chart the effects of change in price, output and costs
The value of break even analysis
Part 2:
How to analyse profitability
Profitability margins
Gross profit
Profit from operations
Profit for the year
How to analyse timings of cash inflows and outflows
Payables
Receivables
The use of data for financial decision making and planning
These lessons were 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
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:
How to manage supply to match demand and the value of doing so, methods include:
Outsourcing (including the value of outsourcing)
use of temporary and part time employees
producing to order
Influences on the amount of inventory held
interpreting inventory control charts
lead time
re-order levels
buffer level of inventory
re-order quantities
Influences on the choice of suppliers
How to manage the supply chain effectively and efficiently and the value of this
This lesson is written by Sarah Hilton for Revisionstation
