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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
Summary of Pearson Edexcel Level 1/Level 2 GCSE (9-1)
in Business specification Issue 2 changes
Summary of changes made between previous issue and this current issue Page number
The paper timings have been updated for both Paper 1 and Paper 2 from
‘1 hour and 30 minutes’ to
‘1 hour and 45 minutes’
In Assessment information the following has been updated:
‘Questions in Sections B and C will be based on business contexts given in the paper’ to
‘Questions in Sections B and C will be based on business contexts given in a Source Booklet.’
If you need further information on these changes or what they mean, contact us via our website at: qualifications.pearson.com/en/support/contact-us.html.
Pearson Edexcel Level 1/Level 2 GCSE (9–1) in Business – Specification 2
1 Introduction
Why choose Edexcel GCSE Business?
We’ve listened to feedback from all parts of the business subject community, including teachers, subject associations, professional bodies and higher education. We’ve used this opportunity of curriculum change to redesign a qualification that is engaging and inspiring, and which reflects the demands of a truly modern and evolving business environment – a qualification that enables your students to develop as commercially minded and enterprising individuals and helps them to succeed in their chosen pathway.
Developing enterprising minds
Familiar course content and approach – we’ve retained the structure of our current specification while building in new content areas to give you as much continuity as possible, starting the course with an exploration of how and why businesses start, moving through to the issues and decisions businesses make as they grow. Clear and simple structure – based on your feedback we’ve taken the opportunity to make some improvements to the clarity and structure of our new specification and exam papers to make sure you are clear about the new teaching and assessment requirements from your first glance. Engaging and contemporary contexts – our engaging themes will spark your students’ imagination and inspire commercial thinking as they develop their business knowledge. We know you use contemporary business contexts in your teaching and our new specification will enable you to continue to bring practical and engaging case studies into the classroom. We also know that real and relevant business examples engage your students so you’ll continue to see these in our assessments. Clear and accessible assessment for all – our new papers will build confidence through ramped questions which increasingly challenge students as they move through the paper. Our consistent assessment structure and straight forward mark schemes make the expectations clear to teachers and students. Trusted expert support when you need it – we’ll provide detailed content and assessment guidance as well as course planners, case studies and guides for how to include investigative tasks within the teaching and learning, to help you implement the new specification with confidence. Our Subject Advisor Colin Leith is available to answer your questions and provide guidance and support.
Pearson Edexcel Level 1/Level 2 GCSE (9–1) in Business – Specification 3
Supporting you in planning and implementing this
qualification
Planning
● Our Getting Started Guide gives you a comprehensive overview of the new GCSE qualification to help you to get to grips with the changes to content and assessment, and to help you understand what these changes mean for you and your students.
● We will give you editable course planners and a scheme of work that you can adapt to suit your department.
● Our mapping documents highlight key differences between the new and legacy specifications.
Teaching and learning
There will be lots of free teaching and learning support to help you deliver the new qualification, including:
● case studies and activities
● a guide to using practical examples and business investigations
● additional support and guidance for the new content areas.
Preparing for exams
We will provide a range of resources to help you prepare your students for the assessments, including:
● specimen papers to support formative assessments and mock exams
● marked exemplars of student work with examiner commentaries.
ResultsPlus
ResultsPlus provides the most detailed analysis available of your students’ exam performance. It can help you identify the topics and skills where further learning would benefit your students.
examWizard
examWizard is a free online resource for teachers containing a huge bank of past paper questions and support materials to help you create your own mock exams and tests.
Get help and support
Our subject advisor service, led by Colin Leith, will ensure you receive help and guidance from us. You can sign up to receive e-newsletters from Colin to keep up to date with qualification updates and product and service news.
UK: 020 7010 2182
Intl: + 44 (0)20 7010 2182
[email protected]
Learn more at qualifications.pearson.com
Pearson Edexcel Level 1/Level 2 GCSE (9–1) in Business – Specification 5
Theme 2: Building a business (Paper code: 1BS0/02)
Written examination: 1 hour and 45 minutes
50% of the qualification
90 marks
Content overview
● Topic 2.1 Growing the business
● Topic 2.2 Making marketing decisions
● Topic 2.3 Making operational decisions
● Topic 2.4 Making financial decisions
● Topic 2.5 Making human resource decisions
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.
Pearson Edexcel Level 1/Level 2 GCSE (9–1) in Business – Specification 6
2 Subject content and assessment
information
Qualification aims and objectives
The aims and objectives of this qualification are to enable students to: ● know and understand business concepts, business terminology, business objectives, the integrated nature of business activity and the impact of business on individuals and wider society ● apply knowledge and understanding to contemporary business issues and to different types and sizes of businesses in local, national and global contexts ● develop as enterprising individuals with the ability to think commercially and creatively to demonstrate business acumen, and draw on evidence to make informed business decisions and solve business problems ● develop as effective and independent students, and as critical and reflective thinkers with enquiring minds ● use an enquiring, critical approach to make informed judgements ● investigate and analyse real business opportunities and issues to construct well-argued, well-evidenced, balanced and structured arguments, demonstrating their depth and breadth of understanding of business ● develop and apply quantitative skills relevant to business, including using and interpreting data.
Business contexts
Through studying this qualification students will: ● apply knowledge and understanding to different business contexts. These include businesses ranging from small enterprises to large multinationals and businesses operating in local, national and global contexts ● develop an understanding of how these contexts impact on business behaviour ● use business terminology to identify and explain business activity ● apply business concepts to familiar and unfamiliar contexts.
Business decision making
Through studying this qualification students will: ● apply knowledge and understanding to business decision making, including: o the interdependent nature of business activity, influences on business, business operations, finance, marketing and human resources; and how these interdependencies underpin business decision making o how different business contexts affect business decisions o the use and limitation of quantitative and qualitative data in making business decisions ● develop problem-solving and decision-making skills relevant to business ● investigate, analyse and evaluate business opportunities and issues ● make justified decisions using both qualitative and quantitative data, including its selection, interpretation, analysis and evaluation, and the application of appropriate quantitative skills.
Pearson Edexcel Level 1/Level 2 GCSE (9–1) in Business – 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: ● changes in technology ● changes in what consumers want ● products and services becoming obsolete.
How new business ideas come about: ● original ideas ● adapting existing products/services/ideas.
Risk and reward
The impact of risk and reward on business activity: ● risk: business failure, financial loss, lack of security ● reward: business success, profit, independence.
The role of business enterprise
The role of business enterprise and the purpose of business activity: ● to produce goods or services ● to meet customer needs ● to add value: convenience, branding, quality, design, unique selling points.
The role of entrepreneurship: ● an entrepreneur: organises resources, makes business decisions, takes risks.
Pearson Edexcel Level 1/Level 2 GCSE (9–1) in Business – 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: ● what customer needs are: price, quality, choice, convenience ● the importance of identifying and understanding customers: generating sales, business survival.
Market research
The purpose of market research: ● to identify and understand customer needs ● to identify gaps in the market ● to reduce risk ● to inform business decisions.
Methods of market research: ● primary research: survey, questionnaire, focus group, observation ● secondary research: internet, market reports, government reports.
The use of data in market research: ● qualitative and quantitative data ● the role of social media in collecting market research data ● the importance of the reliability of market research data.
Market segmentation
How businesses use market segmentation to target customers: ● identifying market segments: location, demographics, lifestyle, income, age ● market mapping to identify a gap in the market and the competition.
The competitive environment
Understanding the competitive environment: ● strengths and weaknesses of competitors based on: price, quality, location, product range and customer service ● the impact of competition on business decision making.
Pearson Edexcel Level 1/Level 2 GCSE (9–1) in Business – 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: ● limited and unlimited liability ● the implications for the business owner(s) of limited and unlimited liability.
The types of business ownership for start-ups: ● sole trader, partnership, private limited company ● the advantages and disadvantages of each type of business ownership.
The option of starting up and running a franchise operation: ● the advantages and disadvantages of franchising.
Business location
Factors influencing business location: ● proximity to: market, labour, materials and competitors ● nature of the business activity ● 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: ● price, product, promotion, place.
How the elements of the marketing mix work together: ● balancing the marketing mix based on the competitive environment ● the impact of changing consumer needs on the marketing mix ● the impact of technology on the marketing mix: e-commerce, digital communication.
Business plans
The role and importance of a business plan: ● 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: ● the role and importance of a business plan in minimising risk and obtaining finance.
Pearson Edexcel Level 1/Level 2 GCSE (9–1) in Business – 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: ● shareholders (owners), employees, customers, managers, suppliers, local community, pressure groups, the government.
Stakeholders and businesses: ● how stakeholders are affected by business activity ● how stakeholders impact business activity ● possible conflicts between stakeholder groups.
Technology and business
Different types of technology used by business: ● e-commerce ● social media ● digital communication ● payment systems.
How technology influences business activity in terms of: ● sales ● costs ● marketing mix.
Legislation and business
The purpose of legislation: ● principles of consumer law: quality and consumer rights ● principles of employment law: recruitment, pay, discrimination and health and safety.
The impact of legislation on businesses: ● cost ● consequences of meeting and not meeting these obligations.
The economy and business
The impact of the economic climate on businesses: ● 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: ● possible responses by the business to changes in: technology, legislation, the economic climate.
Pearson Edexcel Level 1/Level 2 GCSE (9–1) in Business – Specification 14
Theme 2: Building a business
Overview
Theme 2 examines how a business develops beyond the start-up phase. It focuses on the key business concepts, issues and decisions used to grow a business, with emphasis on aspects of marketing, operations, finance and human resources. Theme 2 also considers the impact of the wider world on the decisions a business makes as it grows.
In this theme, students will be introduced to national and global business contexts and will develop an understanding of how these contexts impact business behaviour and decisions. National contexts build on those in Theme 1 and relate to businesses operating in more than one location or across the UK. Global contexts relate to non-UK or transnational businesses.
Students must develop an understanding of the interdependent nature of business activity through interactions between business operations, finance, marketing and human resources, as well as the relationship between the business and the environment in which it operates. Students must understand how these functional areas influence business activity and how interdependencies and relationships between them underpin business decisions. Teaching approaches to the content must reflect this.
Content
Theme 2 comprises five topic areas.
● Topic 2.1 Growing the business – students are introduced to methods of growth and how and why business aims and objectives change as businesses evolve. The impact of globalisation and the ethical and environmental questions facing businesses are explored.
● Topic 2.2 Making marketing decisions – students will explore how each element of the marketing mix is managed and used to inform and make business decisions in a competitive marketplace.
● Topic 2.3 Making operational decisions – this topic focuses on meeting customer needs through the design, supply, quality and sales decisions a business makes.
● Topic 2.4 Making financial decisions – students will explore the tools a business has to support financial decision making, including ratio analysis and the use and limitation of a range of financial information.
● Topic 2.5 Making human resource decisions – growing a business means that decisions relating to organisational structure, recruitment, training and motivation need to be made to influence business activity. These aspects are considered in this final topic.
Quantitative Skills
Students must draw on their knowledge and understanding of Theme 2 topics to apply a range of quantitative skills relevant to business contexts. This includes calculations and the interpretation, use and limitation of quantitative and qualitative data in business contexts to support, inform and justify business decisions. These will be embedded within the examination for this qualification. Please see Appendix 2: Quantitative Skills for full details of quantitative skills and how they are applied within this qualification. Formulae for use in this qualification can be found in Appendix 3: Formulae. Formulae will not be provided in the examinations. Information on the use of calculators during the examinations for this qualification can be found in Appendix 4: Calculators.
Pearson Edexcel Level 1/Level 2 GCSE (9–1) in Business – Specification 15
Topic 2.1 Growing the business
Subject content What students need to learn:
2.1. Business growth
Methods of business growth and their impact: ● internal (organic) growth: new products (innovation, research and development), new markets (through changing the marketing mix or taking advantage of technology and/or expanding overseas) ● external (inorganic) growth: merger, takeover.
The types of business ownership for growing businesses: ● public limited company (plc)
Sources of finance for growing and established businesses: ● internal sources: retained profit, selling assets ● external sources: loan capital, share capital, including stock market flotation (public limited companies).
Changes in business aims and objectives
Why business aims and objectives change as businesses evolve: ● in response to: market conditions, technology, performance, legislation, internal reasons.
How business aims and objectives change as businesses evolve: ● focus on survival or growth ● entering or exiting markets ● growing or reducing the workforce ● increasing or decreasing product range.
Business and globalisation
The impact of globalisation on businesses: ● imports: competition from overseas, buying from overseas ● exports: selling to overseas markets ● changing business locations ● multinationals.
Barriers to international trade: ● tariffs ● trade blocs.
How businesses compete internationally: ● the use of the internet and e-commerce ● changing the marketing mix to compete internationally.
Pearson Edexcel Level 1/Level 2 GCSE (9–1) in Business – Specification 17
Topic 2.2 Making marketing decisions
Subject content What students need to learn:
2.2. Product
The design mix: ● function, aesthetics, cost.
The product life cycle: ● the phases of the product life cycle ● extension strategies.
The importance to a business of differentiating a product/ service.
Price
Price ● pricing strategies ● influences on pricing strategies: technology, competition, market segments, product life cycle.
Promotion
Promotion: ● appropriate promotion strategies for different market segments: advertising, sponsorship, product trials, special offers, branding ● the use of technology in promotion: targeted advertising online, viral advertising via social media, e-newsletters.
Place
Place: ● 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 (9–1) in Business – Specification 18
Topic 2.3 Making operational decisions
Subject content What students need to learn:
2.3. Business operations
The purpose of business operations: ● to produce goods ● to provide services.
Production processes: ● different types: job, batch, flow ● the impact of different types of production process: keeping productivity up and costs down and allowing for competitive prices.
Impacts of technology on production: ● balancing cost, productivity, quality and flexibility.
Working with suppliers
Managing stock: ● interpretation of bar gate stock graphs ● the use of just in time (JIT) stock control.
The role of procurement: ● relationships with suppliers: quality, delivery (cost, speed, reliability), availability, cost, trust ● the impact of logistics and supply decisions on: costs, reputation, customer satisfaction.
Managing quality
The concept of quality and its importance in: ● the production of goods and the provision of services: quality control and quality assurance ● allowing a business to control costs and gain a competitive advantage.
The sales process
The sales process: ● product knowledge, speed and efficiency of service, customer engagement, responses to customer feedback, post-sales service.
The importance to businesses of providing good customer service.
