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This draft qualification has not yet been accredited by Ofqual. It is published to enable teachers to have early sight of our
proposed approach to Pearson Edexcel Level 1/Level 2 GCSE (9 - 1) in Music (1MU0). Further changes may be required
and no assurance can be given at this time that the proposed qualification will be made available in its current form, or
that it will be accredited in time for first teaching in September 2016 and first award in 2018.
Specification
Pearson Edexcel Level 1/Level 2 GCSE (9 - 1) in Business (1BS0)
First teaching from September 2017
First certification from 2019
GCSE (9-1)
Business
Issue 2
Pearson Edexcel Level 1/Level 2 GCSE (9โ1) in Business โ Specification 4
Qualification at a glance
Content and assessment overview
The Pearson Edexcel Level 1/Level 2 GCSE (9โ1) in Business consists of two externally-examined papers.
Students must complete all assessment in May/June in any single year.
Theme 1: Investigating small business (Paper code: 1BS0/01)*
Written examination: 1 hour and 45 minutes
50% of the qualification
90 marks
Content overview
โ Topic 1.1 Enterprise and entrepreneurship
โ Topic 1.2 Spotting a business opportunity
โ Topic 1.3 Putting a business idea into practice
โ Topic 1.4 Making the business effective
โ Topic 1.5 Understanding external influences on business
Assessment overview
The paper is divided into three sections:
Section A: 35 marks
Section B: 30 marks
Section C: 25 marks.
The paper will consist of calculations, multiple-choice, short-answer and extended-writing questions.
Questions in Sections B and C will be based on business contexts given in the paper.
Calculators may be used in the examination. Information on the use of calculators during the examinations for this qualification can be found in Appendix 4: Calculators.
*See Appendix 7: Codes for a description of this code and all other codes relevant to this qualification.
Pearson Edexcel Level 1/Level 2 GCSE (9โ1) in Business โ Specification 8
Topic 1.1 Enterprise and entrepreneurship
Subject content What students need to learn:
1.1. The dynamic nature of business
Why new business ideas come about: โ changes in technology โ changes in what consumers want โ products and services becoming obsolete.
How new business ideas come about: โ original ideas โ adapting existing products/services/ideas.
Risk and reward
The impact of risk and reward on business activity: โ risk: business failure, financial loss, lack of security โ reward: business success, profit, independence.
The role of business enterprise
The role of business enterprise and the purpose of business activity: โ to produce goods or services โ to meet customer needs โ to add value: convenience, branding, quality, design, unique selling points.
The role of entrepreneurship: โ an entrepreneur: organises resources, makes business decisions, takes risks.
Pearson Edexcel Level 1/Level 2 GCSE (9โ1) in Business โ Specification 9
Topic 1.2 Spotting a business opportunity
Subject content What students need to learn:
1.2. Customer needs
Identifying and understanding customer needs: โ what customer needs are: price, quality, choice, convenience โ the importance of identifying and understanding customers: generating sales, business survival.
Market research
The purpose of market research: โ to identify and understand customer needs โ to identify gaps in the market โ to reduce risk โ to inform business decisions.
Methods of market research: โ primary research: survey, questionnaire, focus group, observation โ secondary research: internet, market reports, government reports.
The use of data in market research: โ qualitative and quantitative data โ the role of social media in collecting market research data โ the importance of the reliability of market research data.
Market segmentation
How businesses use market segmentation to target customers: โ identifying market segments: location, demographics, lifestyle, income, age โ market mapping to identify a gap in the market and the competition.
The competitive environment
Understanding the competitive environment: โ strengths and weaknesses of competitors based on: price, quality, location, product range and customer service โ the impact of competition on business decision making.
Pearson Edexcel Level 1/Level 2 GCSE (9โ1) in Business โ Specification 11
Topic 1.4 Making the business effective
Subject content What students need to learn:
1.4. The options for start-up and small businesses
The concept of limited liability: โ limited and unlimited liability โ the implications for the business owner(s) of limited and unlimited liability.
The types of business ownership for start-ups: โ sole trader, partnership, private limited company โ the advantages and disadvantages of each type of business ownership.
The option of starting up and running a franchise operation: โ the advantages and disadvantages of franchising.
Business location
Factors influencing business location: โ proximity to: market, labour, materials and competitors โ nature of the business activity โ the impact of the internet on location decisions: e-commerce and/or fixed premises.
The marketing mix
What the marketing mix is and the importance of each element: โ price, product, promotion, place.
How the elements of the marketing mix work together: โ balancing the marketing mix based on the competitive environment โ the impact of changing consumer needs on the marketing mix โ the impact of technology on the marketing mix: e-commerce, digital communication.
Business plans
The role and importance of a business plan: โ to identify: the business idea; business aims and objectives; target market (market research); forecast revenue, cost and profit; cash-flow forecast; sources of finance; location; marketing mix.
The purpose of planning business activity: โ the role and importance of a business plan in minimising risk and obtaining finance.
Pearson Edexcel Level 1/Level 2 GCSE (9โ1) in Business โ Specification 12
Topic 1.5 Understanding external influences on business
Subject content What students need to learn:
1.5. Business stakeholders
Who business stakeholders are and their different objectives: โ shareholders (owners), employees, customers, managers, suppliers, local community, pressure groups, the government.
Stakeholders and businesses: โ how stakeholders are affected by business activity โ how stakeholders impact business activity โ possible conflicts between stakeholder groups.
Technology and business
Different types of technology used by business: โ e-commerce โ social media โ digital communication โ payment systems.
How technology influences business activity in terms of: โ sales โ costs โ marketing mix.
Legislation and business
The purpose of legislation: โ principles of consumer law: quality and consumer rights โ principles of employment law: recruitment, pay, discrimination and health and safety.
The impact of legislation on businesses: โ cost โ consequences of meeting and not meeting these obligations.
The economy and business
The impact of the economic climate on businesses: โ unemployment, changing levels of consumer income, inflation, changes in interest rates, government taxation, changes in exchange rates.
External influences
The importance of external influences on business: โ possible responses by the business to changes in: technology, legislation, the economic climate.
Pearson Edexcel Level 1/Level 2 GCSE (9โ1) in Business โ Specification 16
Subject content What students need to learn:
2.1. Ethics, the environment and business
The impact of ethical and environmental considerations on businesses: โ how ethical considerations influence business activity: possible trade-offs between ethics and profit โ how environmental considerations influence business activity: possible trade-offs between the environment, sustainability and profit โ the potential impact of pressure group activity on the marketing mix.
Pearson Edexcel Level 1/Level 2 GCSE (9โ1) in Business โ Specification 17
Topic 2.2 Making marketing decisions
Subject content What students need to learn:
2.2. Product
The design mix: โ function, aesthetics, cost.
The product life cycle: โ the phases of the product life cycle โ extension strategies.
The importance to a business of differentiating a product/ service.
Price
Price โ pricing strategies โ influences on pricing strategies: technology, competition, market segments, product life cycle.
Promotion
Promotion: โ appropriate promotion strategies for different market segments: advertising, sponsorship, product trials, special offers, branding โ the use of technology in promotion: targeted advertising online, viral advertising via social media, e-newsletters.
Place
Place: โ methods of distribution: retailers and e-tailers (e-commerce).
Using the marketing mix to make business decisions
How each element of the marketing mix can influence other elements.
Using the marketing mix to build competitive advantage.
How an integrated marketing mix can influence competitive advantage.
Pearson Edexcel Level 1/Level 2 GCSE (9โ1) in Business โ Specification 19
Topic 2.4 Making financial decisions
Subject content What students need to learn:
2.4. Business calculations
The concept and calculation of: โ gross profit โ net profit
Calculation and interpretation of: โ gross profit margin โ net profit margin โ average rate of return.
Understanding business performance
The use and interpretation of quantitative business data to support, inform and justify business decisions: โ information from graphs and charts โ financial data โ marketing data โ market data.
The use and limitations of financial information in: โ understanding business performance โ making business decisions.
Pearson Edexcel Level 1/Level 2 GCSE (9โ1) in Business โ Specification 20
Topic 2.5 Making human resource decisions
Subject content What students need to learn:
2.5. Organisational structures
Different organisational structures and when each are appropriate: โ hierarchical and flat โ centralised and decentralised.
The importance of effective communication: โ the impact of insufficient or excessive communication on efficiency and motivation โ barriers to effective communication.
Different ways of working: โ part-time, full-time and flexible hours โ permanent, temporary, and freelance contracts โ the impact of technology on ways of working: efficiency, remote working.
Effective recruitment
Different job roles and responsibilities: โ key job roles and their responsibilities: directors, senior managers, supervisors/team leaders, operational and support staff.
How businesses recruit people: โ documents: person specification and job description, application form, CV โ recruitment methods used to meet different business needs (internal and external recruitment).
Effective training and development
How businesses train and develop employees: โ different ways of training and developing employees: formal and informal training, self-learning, ongoing training for all employees, use of target setting and performance reviews.
Why businesses train and develop employees: โ the link between training, motivation and retention โ retraining to use new technology.
Motivation
The importance of motivation in the workplace: โ attracting employees, retaining employees, productivity.
How businesses motivate employees: โ financial methods: remuneration, bonus, commission, promotion, fringe benefits โ non-financial methods: job rotation, job enrichment, autonomy.
