BusinessQ&A by dot point

Business objectives and growth; organic versus external growth (mergers, takeovers, franchising); Ansoff's matrix; strategic analysis using SWOT; decision-making techniques including decision trees; and the link between strategy and corporate objectives.

Business ethics and ethical decision-making; the trade-off between ethics and profit; corporate social responsibility and the stakeholder concept; environmental responsibility and sustainability; and the costs and benefits of acting ethically and responsibly.

Globalisation and its causes; international trade, imports and exports; multinationals and foreign direct investment; trade barriers, protectionism and trading blocs; the opportunities and threats of operating globally; and assessing a country as a market or production location.

The causes and types of change; managing change and overcoming resistance; contingency planning and risk management; crisis management and business continuity; and the synoptic link between change, the external environment and business strategy.

PEST analysis; the impact of government policy and legislation (employment, consumer, competition and environmental law); social and demographic change; technological change; and how businesses respond to the external environment.

The economic environment and the business cycle; the effects of interest rates, inflation, unemployment, exchange rates, taxation and government spending on business; and how businesses respond to changing economic conditions.

Factors influencing business location, including costs, market, labour, infrastructure and the option of e-commerce; the meaning of stakeholders; the main stakeholder groups and their objectives; and managing stakeholder conflict.

The purpose and contents of a business plan; the role of objectives and mission; SMART objectives; the benefits and limitations of planning; and how a plan supports raising finance and managing a start-up.

Forms of business ownership: sole traders, partnerships, private and public limited companies, and not-for-profit and public-sector organisations; limited and unlimited liability; incorporation; and the factors affecting the choice of legal structure.

The meaning of enterprise and entrepreneurship; the characteristics, motives and roles of entrepreneurs; identifying and assessing a business opportunity; risk and reward; and the role of enterprise in the economy.

The meaning and types of markets; market size, share and growth; primary and secondary market research; quantitative and qualitative data; sampling and its reliability; and the value and limitations of market research.

The difference between cash and profit; the structure and use of a cash-flow forecast; the causes and solutions of cash-flow problems; working capital; budgets and budgetary control; and variance analysis.

The classification of costs into fixed, variable and total; the calculation of revenue, contribution and profit; break-even analysis and the margin of safety; the construction and interpretation of break-even charts; and the value and limitations of break-even analysis.

Financial objectives such as profit, cash flow, return on investment and cost minimisation; the calculation of profit and profitability; the use of financial data to set targets and judge performance; and the link between financial objectives and corporate strategy.

The income statement and statement of financial position; profitability ratios (gross and net profit margin, ROCE); liquidity ratios (current ratio, acid test); gearing; the calculation and interpretation of ratios; and their value and limitations.

Investment appraisal methods: payback period, average rate of return and net present value; the calculation and interpretation of each; the use of discounting and the time value of money; and the strengths, limitations and qualitative factors in investment decisions.

Internal and external sources of finance; short-term and long-term finance; the distinction between capital and revenue expenditure; factors affecting the choice of finance; and the appropriateness of each source for a start-up versus an established firm.

Market segmentation and its bases (demographic, geographic, psychographic and behavioural); targeting strategies; product positioning and perceptual maps; niche and mass marketing; and the benefits and drawbacks of segmenting a market.

The nature and purpose of marketing; marketing objectives such as sales, market share, growth and brand; the relationship between marketing and corporate objectives; market orientation versus product orientation; and the role of marketing in adding value.

Price and income elasticity of demand and their calculation and use; the distinction between elastic and inelastic demand; the implications for pricing and revenue; marketing strategy; and digital and e-commerce marketing.

Pricing strategies including cost-plus, price skimming, penetration, competitive, psychological, predatory and dynamic pricing; the factors influencing price; and the link between price, demand and the rest of the marketing mix.

The marketing mix (product, price, promotion and place) and the extended mix; the product life cycle and extension strategies; the Boston Matrix; channels of distribution; promotional methods; and the need for an integrated, coordinated mix.

Capacity and capacity utilisation; ways of managing capacity; stock control and the stock-control chart; just-in-time and just-in-case; lean production and waste reduction; and the link between operations control and cost.

Operational objectives such as cost, quality, speed, dependability and flexibility; supply-chain management and choosing suppliers; outsourcing and make-or-buy decisions; the link between operations strategy and corporate objectives; and operational decision-making.

Methods of production (job, batch, flow and cell); the choice of production method; productivity and efficiency; labour and capital intensity; economies and diseconomies of scale; and the link between operations and competitiveness.

The importance of quality; quality control versus quality assurance; total quality management and continuous improvement (kaizen); quality standards and benchmarking; the costs and benefits of improving quality; and the link between quality and competitiveness.

The role of technology in operations; automation, robotics and information technology; research and development and innovation; product and process innovation; the costs, benefits and risks of adopting new technology; and the link to productivity and competitiveness.

Employee relations and communication; trade unions and collective bargaining; methods of resolving workplace disputes; hard and soft HR approaches; flexible working and the changing workforce; and HR strategy and its link to corporate objectives.

The distinction between leadership and management; leadership styles, including autocratic, democratic, paternalistic and laissez-faire; the factors influencing the choice of style; the role of managers; and the link between leadership and business performance.

Theories of motivation, including Taylor, Maslow, Herzberg and Mayo; financial motivators such as piece rate, commission and bonuses; non-financial motivators such as job enrichment, empowerment and teamworking; and the link between motivation and productivity.

Organisational structures and design; hierarchy, span of control, chain of command, levels of hierarchy, delegation, centralisation and decentralisation; tall versus flat structures; workforce planning; and the link between structure and business performance.

The recruitment and selection process; internal versus external recruitment; methods of selection; induction, on-the-job and off-the-job training; the costs and benefits of training; labour turnover and retention; and the link to business performance.