Business Specs

BTEC

Edexcel Level 2 BTEC First Certificate and Edexcel Level 2 BTEC First Diploma in Business

For first teaching from September 2006

January 2006

Specification

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Edexcel Limited is one of the leading examining and awarding bodies in the UK and throughout the world. It incorporates all the qualifications previously awarded under the Edexcel and BTEC brands. We provide a wide range of qualifications including general (academic), vocational, occupational and specific programmes for employers.

Through a network of UK and overseas offices, our centres receive the support they need to help them deliver their education and training programmes to learners.

For further information please call Customer Services on 0870 240 9800 (calls may be recorded for training purposes) or visit our website at www.edexcel.org.uk

References to third party material made in this specification are made in good faith. Edexcel does not endorse, approve or accept responsibility for the content of materials, which may be subject to change, or any opinions expressed therein. (Material may include textbooks, journals, magazines and other publications and websites.)

Authorised by Jim Dobson Prepared by Jeremy Curtis

Publications Code BF017259

All the material in this publication is copyright © Edexcel Limited 2006

Essential principles for delivering a BTEC This specification contains the rules and regulations along with the units and associated guidance to enable centres to deliver a programme of learning for the Edexcel Level 2 BTEC First Certificate and Edexcel Level 2 BTEC First Diploma in Business. The qualification structures set out the permitted combination of units learners need to complete the qualification. Each unit sets out the intended outcomes along with the content and also includes advice and guidance regarding appropriate delivery and assessment strategies. The following generic principles need to be adhered to in order that a BTEC qualification is delivered to the appropriate standard.

• The specification provides necessary information for the successful delivery and achievement of the units and the qualification as a whole. Consequently, the specification is of importance to the learner and tutor alike. The individual units may be delivered and studied in isolation but the learner and the deliverer should have access to the full information provided to support the programme of learning.

• Centres need to make regular use of the Edexcel website (www.edexcel .org.uk) to ensure that they have the most up to date information. In particular, the requirements relating to the external verification of the qualification receive regular updates and appropriate information for centres is posted on the website. It is the responsibility of the centre to ensure that they are familiar with the latest BTEC NQF Level 2/3 (including Short Courses at Levels 1–3) Handbook and that they implement any related policy documentation which may have been posted on the website.

• This specification contains details of the assessment and quality assurance procedures. It includes advice about Edexcel’s policy regarding access to its qualifications, the design of programmes of study and delivery modes. Centres must ensure that they conform to the policies outlined in the specification.

• Centres are required to recruit learners to BTEC qualifications with integrity. This includes ensuring that applicants have appropriate information and advice about the qualifications and that the qualification will meet their needs. Centres should take appropriate steps to assess each applicant’s potential and make a professional judgement about their ability to be able to successfully complete the programme of study and achieve the qualification.

• Centres are required to use the information in this specification to develop and deliver a programme of learning that will enable learners to achieve the grading criteria stipulated in the unit grading grids. Assessment assignments should ensure coverage of all criteria in the unit as set out in the Grading Grid for each unit. Assignments constructed by centres should be valid, reliable and fit for purpose, building on the application of the grading criteria. Centres should use a variety of assessment methods, including case studies, assignments and work-based assessments, along with projects, performance observation and time-constrained assessments. Further guidance relating to the setting of assignments is available in the Getting Started publication which is available on the Edexcel website (www.edexcel.org.uk).

• Centres are encouraged to place emphasis on the practical application of the grading criteria, providing wherever possible a realistic scenario for learners to work with, and making maximum use of, practical activities and work experience. The creation of assignments that are fit for purpose is vital to the learner’s achievement and their importance cannot be over emphasised.

http://www.edexcel/

• These qualifications have been accredited to the National Qualifications Framework (NQF) and are eligible for public funding as determined by the DfES under Sections 96 and 97 of the Learning and Skills Act 2000. Details of the qualification units can be seen on the QCA Open Qualifications database (www.qca.org.uk).

• The qualification titles feature in the funding lists published annually by the DfES and the regularly updated website www.dfes.gov.uk/. The NQF Qualification Accreditation Numbers (QANs) should be used by centres when they wish to seek public funding for their learners. The QANs for these qualifications are listed in Annexe A.

• This specification is accredited by the Qualifications and Curriculum Authority until 31 August 2009. and for certification of learners until 31 August 2011. Edexcel may update this specification during its period of accreditation and centres need to refer to the Edexcel website for the latest issue of the specification.

Centres that have not previously offered BTEC qualifications must apply for, and be granted, centre approval before they can apply for approval to offer the programme. When a centre applies for approval to offer a BTEC qualification they will be required to enter into an ‘approvals agreement’. The approvals agreement is a formal commitment by the head or principal of a centre to meet all the requirements of the specification and linked codes or regulations.

Contents

What are BTEC Firsts? 1

BTEC First Diploma 1

BTEC First Certificate 1

National Occupational Standards 1

Key features of the BTEC Firsts in Business 2

Rationale of the BTEC Firsts in Business 2

Structure of the qualification 3

Edexcel Level 2 BTEC First Certificate in Business 3

Edexcel Level 2 BTEC First Diploma in Business 4

Unit format 5

Units 7

Unit 1: Exploring Business Purposes 9

Unit 2: Developing Customer Relations 17

Unit 3: Investigating Financial Control 27

Unit 4: Business Communication 35

Unit 5: People in Organisations 43

Unit 6: Providing Business and Administration Support 53

Unit 7: Personal Selling 65

Unit 8: Doing Business Online 77

Unit 9: Exploring Business Enterprise 85

Unit 10: Starting a Small Business 95

Assessment and grading 105

Quality assurance 106

Approval 106

Risk assessment 106

Internal verification 106

External verification 106

Calculation of the qualification grade 107

Awarding a qualification grade 107

School and College Achievement and Attainment Tables (SCAAT) equivalence 108

Programme design and delivery 109

Mode of delivery 109

Resources 109

Delivery approach 110

Accreditation of Prior Learning (APL) 110

Meeting local needs 110

Limitations on variations from standard specifications 110

Access and recruitment 111

Restrictions on learner entry 111

Access arrangements and special considerations 111

The Edexcel BTEC Qualification Framework for the business sector 112

Further information 113

Useful publications 113

How to obtain National Occupational Standards 114

Professional development and training 114

Annexe A 115

QCA codes 115

Annexe B 117

Grading domains 117

Annexe C 119

Key skills 119

Key skills mapping – summary of opportunities suggested in each unit 120

Annexe D 121

National Occupational Standards/mapping with NVQs 121

Annexe E 123

Wider curriculum mapping 123

What are BTEC Firsts?

BTEC qualifications are designed to provide specialist work-related qualifications in a range of sectors. They have been developed to provide the knowledge, understanding and skills necessary to prepare learners for employment and/or to provide career development opportunities for those already in work. Consequently they provide a course of study for full-time or part-time learners in schools, colleges and training centres. They link to the National Occupational Standards for the sector, where these are appropriate, and are supported by the relevant Standards Setting Body (SSB) or Sector Skills Council (SSC). On successful completion of a BTEC First qualification, learners may progress into or within employment and/or continue their study in the vocational area.

BTEC First Diploma

The Edexcel Level 2 BTEC First Diploma is a 360 guided learning hour qualification comprising core and specialist units which cover aspects of knowledge, understanding and competency necessary for employment within the sector. As such the BTEC First Diploma offers a qualification which can extend a learner’s programme of study and provide vocational emphasis within their programme of study. Equally, the BTEC First Diploma offers a focused qualification for learners who wish to follow a programme of study that is directly related to their work experience, or to an aspect of employment that they wish to move into in due course.

BTEC First Certificate

The Edexcel Level 2 BTEC First Certificate is a 180 guided learning hour qualification which offers a bite-sized opportunity for learners to experience a vocational qualification. The BTEC First Certificate offers a focused vocational qualification for learners who wish to follow a shorter programme of study related to an aspect of employment that they might wish to move into; or a taster qualification which can extend their programme of study and provide an initial experience of a vocational area. This will also enable learners to progress to a higher level qualification relevant to the sector.

National Occupational Standards

BTEC Firsts are designed to relate to the National Occupational Standards (NOS) in the sector, which in turn form the basis of the National Vocational Qualifications (NVQs). BTEC Firsts do not purport to deliver occupational competence in the sector, which should be demonstrated in a work context. However, the qualifications provide much of the underpinning knowledge for the NOS, as well as developing practical skills in preparation for work and possible achievement of NVQs in due course.

Each unit identifies relevant aspects of the NOS that are addressed by the outcomes and content of the unit. The Edexcel Level 2 BTEC Firsts in Business relate to:

• Edexcel Level 2 NVQ in Administration

• Edexcel Level 2 NVQ in Customer Service

• Edexcel Level 3 NVQ in Business Start Up.

BF017259 Specification – Edexcel Level 2 BTEC First Certificate and BTEC First Diploma in Business – Issue 1 – January 2006

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Key features of the BTEC Firsts in Business

The BTEC Firsts in Business have been designed to develop knowledge and understanding in the business sector, focusing on providing opportunities:

for learners to acquire technical and employability skills, knowledge and understanding which are transferable and will enable individuals to meet changing circumstances

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for learners to gain a nationally recognised vocational qualification to enter employment of progress to other vocational qualifications such as:

- BTEC National Award/Certificate/Diploma in Business or Personal and Business Finance

- NVQs or Apprenticeship programmes in Administration, Customer Service or Retail

for learners who are employed in business organisations to develop their underpinning knowledge and skills

for learners to develop the major key skills and the wider key skills in context

for course teams to develop their own innovative courseware that will enthuse and motivate learners

for course teams to develop the knowledge, understanding and skills of learners to meet the needs of the business sector.

Rationale of the BTEC Firsts in Business

The BTEC Firsts in Business have been designed to address the needs of level 2 learners in key areas, including interpersonal skills and customer service. Learners have the opportunity to develop skills to support them as they build relationships with a wide variety of customers internal and external to a range of business environments. Specialist areas also include:

finance, which supports development of basic financial principles

business administration, which supports development of practical administration skills including office systems and equipment, meeting support and filing systems

personal selling, which helps learners to understand the personal selling process

aspects of e-business and how these can support businesses developing e-business opportunities

enterprise and business start-up, which is available at both Level 2 and Level 3.

The assessment approach of the BTEC Firsts in Business allows learners to receive feedback on their progress throughout the course as they provide evidence towards the grading criteria. Evidence for assessment may be generated through a range of diverse activities including assignment and project work, case studies, workplace assessment, role play and oral presentation. Delivery strategies should reflect the nature of work within the business sector by encouraging learners to research and carry out assessment in the workplace or in simulated working conditions wherever possible. Learners should be encouraged to take responsibility for their own learning and achievement, taking into account industry standards for behaviour and performance.

BF017259 – Specification – Edexcel Level 2 BTEC First Certificate and BTEC First Diploma in Business – Issue 1 – January 2006

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Structure of the qualification

Edexcel Level 2 BTEC First Certificate in Business

The Edexcel Level 2 BTEC First Certificate in Business consists of one core unit plus two specialist units that provide for a combined total of 180 guided learning hours (GLH) for the completed qualification.

Edexcel Level 2 BTEC First Certificate in Business

Unit Core units GLH Level

1 Exploring Business Purposes 60 2

Unit Specialist units

2 Developing Customer Relations 60 2

3 Investigating Financial Control 60 2

4 Business Communication 60 2

5 People in Organisations 60 2

6 Providing Business and Administration Support 60 2

7 Personal Selling 60 2

8 Doing Business Online 60 2

9 Exploring Business Enterprise* 60 2

10 Starting a Small Business* 60 3

*Learners can study for either Unit 9: Exploring Business Enterprise or Unit 10: Starting a Small Business but not both.


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Edexcel Level 2 BTEC First Diploma in Business

The Edexcel Level 2 BTEC First Diploma in Business consists of three core units plus three specialist units that provide for a combined total of 360 guided learning hours (GLH) for the completed qualification.

Edexcel Level 2 BTEC First Diploma in Business

Unit Core units GLH Level

1 Exploring Business Purposes 60 2

2 Developing Customer Relations 60 2

3 Investigating Financial Control 60 2

Unit Specialist units

4 Business Communication 60 2

5 People in Organisations 60 2

6 Providing Business and Administration Support 60 2

7 Personal Selling 60 2

8 Doing Business Online 60 2

9 Exploring Business Enterprise* 60 2

10 Starting a Small Business* 60 3

*Learners can study for either Unit 9: Exploring Business Enterprise or Unit 10: Starting a Small Business but not both.


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Unit format

All units in Edexcel Level 2 BTEC First qualifications have a standard format which is designed to provide clear guidance on the requirements of the qualification for learners, tutors, assessors and those responsible for monitoring national standards.

Each unit is set out in the following way.

Unit title

The unit title is accredited by QCA and this form of words will appear on the learner’s Notification of Performance (NOP). In BTEC First qualifications each unit consists of 30, 60, 90 or 120 guided learning hours

NQF level

This is the level of study of the qualification as determined by the National Qualifications Framework (NQF).

Guided learning hours

Guided learning hours is ‘a notional measure of the substance of a unit’. It includes an estimate of time that might be allocated to direct teaching, instruction and assessment, together with other structured learning time such as directed assignments or supported individual study. It excludes learner-initiated private study. Centres are advised to consider this definition when planning the programme of study associated with this specification.

Unit abstract

The unit abstract is designed to give the reader an appreciation of the value of the unit in the vocational setting of the qualification as well as highlighting the focus of the unit. It provides the reader with a snapshot of the aims of the unit and the key knowledge, skills and understanding developed while studying the unit. The unit abstract also emphasises links to the sector by describing what the unit offers the sector.

Learning outcomes

Learning outcomes state exactly what a learner should ‘know, understand or be able to do’ as a result of completing the unit.

Unit content

The unit content identifies the depth and breadth of knowledge, skills and understanding needed to design and deliver a programme of learning sufficient to achieve each of the learning outcomes. This is informed by the underpinning knowledge and understanding requirements of the related National Occupational Standards (NOS). The content provides the range of subject material for the programme of learning and specifies the skills, knowledge and understanding required for achievement of the pass grading criteria.

Each learning outcome is stated in full and then the prescribed key phrases or concepts related to that learning outcome are listed in italics followed by the subsequent range of related topics.

The unit content section will often have lists of topics that provide the range of the subject material required to be covered in order to meet the grading criteria. Subject material maybe further detailed by lists enclosed within brackets or an elongated dash which provide the defined elements of the specific topic item. Where the subject material list includes an ‘eg’, it should be noted that this provides an indicative range of material to support the specific topic item.


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Grading grid

Each Grading grid contains statements of the criteria used to determine the evidence that each learner must produce in order to receive a pass, merit or distinction grade. It is important to note that the merit and distinction grading criteria refer to a qualitative improvement in the learner’s evidence.

Essential guidance for tutors

This section is designed to give tutors additional guidance and amplification on the unit in order to provide for a coherence of understanding and a consistency of delivery and assessment. It is divided into the following sections:

• Delivery — explains the content and its relationship with the learning outcomes and offers guidance about possible approaches to delivery. This advice is based on the more usual delivery modes but is not intended to rule out alternative approaches.

• Assessment — provides amplification about the nature and type of evidence that learners need to produce in order to pass the unit or achieve the higher grades. This section should be read in conjunction with the grading criteria.

• Links to National Occupational Standards, other BTEC units, other BTEC qualifications and other relevant units and qualifications — sets out links with other units within the qualification. These could be used to ensure that learners can relate different aspects within the qualification and offer opportunities for integration of learning, delivery and assessment. Links to the Occupational Standards will be highlighted here.

• Essential resources — identifies any specialist resources needed to allow learners to generate the evidence required for each unit. The centre will be asked to ensure that any requirements are in place when it seeks approval from Edexcel to offer the qualification.

• Indicative reading for learners — provides a short list of learner resource material that benchmark the level of study.

Key skills

This section identifies where there may be opportunities within the unit for the generation of evidence to meet the requirements of key skills units. Assessors should take care to become familiar with the key skills specifications and evidence requirements and not to rely on the contents of this section when presenting key skills evidence for moderation. Centres should refer to the QCA website (www.qca.org.uk) for the latest version of the key skills standards.


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Units

Unit 1: Exploring Business Purposes 9

Unit 2: Developing Customer Relations 17

Unit 3: Investigating Financial Control 27

Unit 4: Business Communication 35

Unit 5: People in Organisations 43

Unit 6: Providing Business and Administration Support 53

Unit 7: Personal Selling 65

Unit 8: Doing Business Online 77

Unit 9: Exploring Business Enterprise 85

Unit 10: Starting a Small Business 95


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UNIT 1: EXPLORING BUSINESS PURPOSES


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Unit 1: Exploring Business Purposes

NQF Level 2: BTEC First

Guided learning hours: 60

Unit abstract

Business can be an abstract concept. To be ‘in business’ can mean an enormous variety of things and different people will have different perspectives of what business is all about. Learners will be surrounded by different businesses every day of their lives: businesses that create things; businesses that deliver or sell products and/or services; and businesses that support other businesses. To add to the complexity of the situation, the business world is never static. Industries can grow and decline. Owners and managers must therefore develop a keen awareness of their business environment and how this can be managed to the best advantage for different business purposes.

This unit will help learners to begin to understand the business world, with all its complexities and differing interests. It introduces learners to the range and variety of business activity to be found in their local community and at national, European and global levels. The unit enables learners to discuss their understanding and knowledge of businesses in their local environment. This unit begins to develop learners’ knowledge and understanding of the importance of businesses and how they operate. Learners will be able to explore business purposes and relate this to different types of ownership.

Learners will also be introduced to different classifications in business. This unit introduces them to a wide range of aims and objectives pursued by business organisations in the public, voluntary (not-for-profit) and commercial sectors. Research is developed through exploring the functional areas of business organisations and the way they work together to ensure the business achieves its aims and objectives.

In addition to the primary purpose of a business — eg manufacturing, retailing or as a service provider — larger businesses will have a number of functional areas, such as administration, customer service or human resources, that support the aims and objectives of the business as well as linking with and supporting other functional areas. Learners will develop their understanding of these areas and how they function. They will also gain an understanding of how this kind of infrastructure operates in smaller businesses without such clearly defined departments.

The unit provides a business context within which learners in employment or on work-placement may use their experience, while also developing a greater understanding of business activity for those seeking employment.

Learning outcomes

On completion of this unit a learner should:

1 Understand the nature of business and ownership

2 Understand the classification of business activities

3 Understand business aims and objectives in different sectors

4 Know the main functional areas that support business organisations.


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Unit content

1 Understand the nature of business and ownership

Purpose: supply of goods and services eg at a profit, free, at cost, for sale below cost

Ownership: eg sole trader; partnership; limited companies (private — Ltd, public — plc); charity; voluntary organisations; franchises; co-operatives

Size: small; small-medium; medium; large

Scale: local; regional; national; European and global organisations

2 Understand the classification of business activities

Primary: eg farming, forestry, fishing, extraction/mining

Secondary: eg manufacturing, engineering, construction

Tertiary: eg private service industries, local and national public services, voluntary/not-for-profit services

Relative growth/decline by sector: decline of primary and secondary industries; growth of tertiary service industries

3 Understand business aims and objectives in different sectors

Aims and objectives: aims (the long-term visions or goals of a business), objectives (specific, measurable targets to help achieve the overall aims of a business); purpose (to provide a business focus) eg survival, break even, growth, profit maximisation, service provision, expansion of market share; relationship with other businesses

Sector: eg private; public; not-for-profit and voluntary

4 Know the main functional areas within business organisations

Functional areas: eg administration, customer service, distribution, finance, human resources, ICT, marketing, sales, production, research and development (R and D); purposes of functional areas eg to support business aims and objectives, to develop new markets, to support continuous professional development

Relationships: links and interactions with other functional areas


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Delivery

This unit forms the basis for the whole of the BTEC First Certificate and Diploma in Business qualifications. The unit takes learners through a natural exploration of businesses and logically develops their understanding as the content progresses. Discussing local business operations and the experience of learners from work experience or part-time employment gives learners a broad introduction to what businesses do, types of ownership, how many employees they have and if they have more than one branch. Learners can then expand these ideas to consider regional, national, European and global levels.

Tutors should encourage learners to bring in newspaper articles, advertisements and promotional materials to create displays relating to the local business environment. This will provide a visual stimulus that can be used to enhance understanding of other areas of content. Case studies and newspaper reports relating to businesses that learners are familiar with can be used to extend their understanding of particular issues. Television programmes exploring business organisations can also be useful formative tools, especially when followed with class discussion or written summary. The internet can be a useful tool, as many larger organisations provide web pages specifically for learners.

Tutors may find it useful for learners (working individually or in pairs) to ‘adopt’ a local business, enabling them to contribute examples of business purposes through class discussions. Discussion groups can also examine the process of investigation.

Learners will need input on types of ownership, business purposes and different classifications according to the industrial sector. Tutors should ensure that work undertaken by learners captures an appropriate range of business ownership. This may be locally based, but some rural areas will not have large organisations and therefore may not have a Plc based in the locality. Learners should also develop a clear understanding of the different types of business classification, for example the originating nature of the primary sector, such as farming, forestry, fishing, extraction/mining, and the creative nature of the secondary sector, such as manufacturing, engineering, construction.

Within the tertiary sector, learners should explore:

• private services eg accountancy, banking, communications, consultancy, design, distribution, energy supply, entertainment, hair and beauty, health care, hospitality, medical, publishing, repair and maintenance, research, retailing, security, tourism, transport, water supply and purification

• local, regional and national public services eg education, emergency, health care, housing, law and order, military activity, planning, recreational, social services

• voluntary or not-for-profit services eg community health, social and community care, global development, environmental and wildlife protection.

Learners also need to develop their understanding of how the sectors have changed. When approaching delivery of this area of content, tutors should be keenly aware of the balance of industry sector in their local area in order to illustrate delivery with local examples, including how different sectors have grown or declined. These must, however, be contrasted with regional and national examples in order to deliver a balanced picture. Primary and secondary sectors are still important, but have shrunk over recent years. A large proportion of the local businesses that learners may have explored may be in the tertiary sector. Learners can work in small discussion groups to consider how this has changed.


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Business aims and objectives should be introduced in broad terms. Useful definitions could be:

• aims: the longer-term visions or goals of a business

• objectives: specific, measurable targets to help achieve the overall aims of the business.

The aims of the business are the main focus of what each business is doing and why they are in business. The content here covers the basic aims of most businesses but this will need to be related back to the ownership to ensure that the aims are appropriate; and the sector, so that the learners develop their understanding that businesses in different sectors will have recognisable different aims.

Learners should develop their knowledge and understanding of aims and objectives through investigating mission and vision statements, which are readily available on business websites or annual reports. Learners often believe that one of the aims of large successful plc businesses is to ‘want to survive’. Whilst this is true in a broad sense, it is not a true aim. Aims should relate more to examples such as increasing market share, growth, or development.

Objectives should be related to the attainment of targets/milestones, for example for output, profit, service delivery. Objectives enable businesses to be clear about what they are doing and when they plan to do it. Although SMART objectives (specific, measurable, achievable, realistic and time-bound) are not addressed in detail, tutors could refer to the broad principles behind setting SMART objectives, providing a measure that can be used to ensure objectives are on target. Learners also need to explore the impact of achieving/not achieving objectives on businesses.

The principle of functional areas are crucial to the success of all businesses, although these may be more recognisable in larger organisations. (Learners also need to understand how such functional areas operate in smaller organisations.) Learners should understand the roles and responsibilities of different functions, even though they may not come across all functions in a single business. Some local/regional businesses they have visited may only present a limited selection of the functional areas learners have studied.

Functional areas can be departments in a business, but can also refer to where functions are carried out within one or more departments. For instance, human resources and administration may be carried out by every department, but the functional area can still be described. Tutors will need to explain the importance of the functional areas working together. Learners can use case studies to explore the links across the functional areas and how they do not work in isolation. This then will link to how functional areas help businesses to achieve and support their aims and objectives.

Learning may also be complemented by part-time employment, work placements and organised visits, as this should enable learners to experience how content can be applied in a real business organisation, as well as adding currency and vocational realism.

Assessment

Learners will be expected to produce evidence that shows their knowledge and understanding of business purposes. It may include:

a presentation showing their understanding of the nature of business and ownership and how business activities can be classified

•

• a report or project that shows their understanding of business aims and objectives in different sectors and of the main functional areas that support business organisations.


13


To achieve the first pass criterion, learners need to describe a minimum of four business organisations and be able to describe their purposes, size, ownership and scale. Each should be of a different type and the selection should also cover different sizes and scale. For the second pass criterion, learners will need to show an understanding of the three classifications of business activities, giving local, regional and national examples.

The third pass criterion enables learners to describe the purpose of setting aims and objectives for businesses in general terms. They should use the definitions of ‘aims’ and ‘objectives’ provided in the guidance as a basis for their work. The final pass criterion requires learners to explore the main internal functional areas of businesses and describe what each functional area does. Learners should focus on a business that incorporates a balanced and compatible selection of functional areas to present an appropriate level of knowledge and understanding. Learners should not attempt to cover all functional areas, which would result in a superficial collection of evidence.

To achieve a merit grade, learners will be able to demonstrate their understanding of business purposes through further explanations. The first criterion extends their understanding through comparing and contrasting two selected businesses. The contrast should be marked, for example a national or multinational retail outlet compared to a local privately-owned outlet. Learners should demonstrate in-depth understanding through their comparisons.

The second criterion focuses on the growth or decline in the different classifications of business activities. Learners should again maximise opportunities to base their evidence on national as well as local growth or decline. The third criterion develops the exploration of functional areas from the fourth pass criterion by investigating two selected businesses (which could be the same two businesses used to support development of evidence for the first merit criterion). The learners need to explain the relationships of the functional areas, giving examples of how they interlink and operate with each other.

At distinction level, learners will develop the merit criteria and link this to how well the functional areas of the two selected businesses interact and support achievement of their aims and objectives. The learners will be required to evaluate how the functional areas operate and how this has led to success of specific aims and objectives. Conversely, learners also need to evaluate the weaknesses of functional area interactions and how these have perhaps hindered or obstructed some areas of success.

Links to National Occupational Standards, other BTEC units, other BTEC qualifications and other relevant units/qualifications

This unit lays logical foundations for all the other units in this specification. It also provides opportunities to gain key skills in communication and improving own learning and performance.

Essential resources

There is a wide range of published textbook and case study material available to support business education at Level 2 of the NQF, of both an academic and vocational nature, selected examples of which appear in Indicative reading for learners.

Indicative reading for learners

Materials that illustrate the level of learning required and that are particularly relevant.

Carysforth C and Neild M — BTEC First Business (Heinemann, 2004) ISBN 0435401386

Fardon, Nuttall and Prokopiw — GCSE Applied Business (Osborne Books, 2002) ISBN 1872962327


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Key skills

Achievement of key skills is not a requirement of this qualification but it is encouraged. Suggestions of opportunities for the generation of level 2 key skill evidence are given here. Staff should check that learners have produced all the evidence required by part B of the key skills specifications when assessing this evidence. Learners may need to develop additional evidence elsewhere to fully meet the requirements of the key skills specifications.

Communication level 2

When learners are: They should be able to develop the following key skills evidence:

C2.1a Take part in a group discussion.

C2.1b Give a talk of at least four minutes.

• exploring the nature of business activity.

C2.2 Read and summarise information from at least two documents about the same subject. Each document must be a minimum of 500 words long.

Improving own learning and performance level 2


LP2.1 Help set targets with an appropriate person and plan how these will be met.

LP2.2 Take responsibility for some decisions about your learning, using your plan to help meet targets and improve your performance.

• preparing and completing all features of an assignment, for all assignments throughout this specification.

LP2.3 Review progress with an appropriate person and provide evidence of your achievements.


15



16

UNIT 2: DEVELOPING CUSTOMER RELATIONS

Unit 2: Developing Customer Relations



Unit abstract

Customer relations are at the heart of every business. Every business has a purpose which will eventually lead — directly or indirectly — to customers. They may be purchasers and consumers of products or services, or they may benefit from business operations in a different way, for example a user of a public service such as a library or local council. Developing good customer relations is critical to the success of every business.

This unit will develop and broaden the learner’s understanding of customer service in different businesses. Learners will develop their knowledge and understanding of customer needs and expectations, as well as being able to identify a wide range of different types of internal and external customers. Learners will explore how customer service staff deliver service that meets the needs and expectations of the business’s customers through the range of products or services that it offers.

Any member of staff working in a customer service situation will be expected to present themselves in a professional way, have good interpersonal skills and be able to communicate effectively with their customers. Learners will look at ways in which this can be achieved, to meet the needs and expectations of customers. Learners will also expand their understanding of the importance of delivering consistent and reliable customer service through the development of their practical and operational customer service skills. They will have the opportunity to put these skills into practice.

In addition, learners will look at how businesses monitor and evaluate their level of customer service by obtaining feedback from customers and how this enables them to make improvements to the service provided.

Learning outcomes


1 Understand how customer service is provided in business

2 Be able to apply appropriate presentation and interpersonal skills in customer service situations

3 Know how consistent and reliable customer service contributes to customer satisfaction

4 Know how to monitor and evaluate customer service within an organisation.


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Unit content

1 Understand how customer service is provided in business

Customer needs and expectations: definition of customer service; identifying customer needs; accuracy and reliability; providing information and advice; providing assistance and help; dealing with special needs; dealing with problems; organisational targets; health, safety and security

Internal customers: eg colleagues, supervisors, staff, staff teams, managers

External customers: eg existing; new; individuals; groups; families; businessmen and women; different ages; different cultures; gender; special needs eg non-English speaking, visual, hearing, mobility impairments

Benefits: to the customer; to the organisation; to the employee

2 Be able to apply appropriate presentation and interpersonal skills in customer service situations

Presentation skills: personal presentation eg personal hygiene, uniform/dress, hair, make-up, jewellery; working environment; body language eg posture, facial expression, smiling, gestures, eye contact; presentation of work area and equipment

Interpersonal skills: attitude; behaviour; first impressions; greeting customers; courtesy; confidence; concern; interest; thoughtfulness; respect for customers; responding to different customer behaviour; tact; efficiency

Communication skills: tone of voice; pitch; language eg technical language, use of slang/jargon; pace; listening; body language; appropriateness to customer/situation

Situations: face-to-face; on the telephone; in writing; email; urgent/non-urgent; difficult; routine

3 Know how consistent and reliable customer service contributes to customer satisfaction

Consistent and reliable: scope of job role; knowledge of products and/or services; type and quality of products/service; staff attitude and behaviour; timing; accessibility/availability; meeting specific customer needs; working under pressure; confirming service meets needs and expectations; dealing with problems

Customer satisfaction: confidence in service; value for money; repeat custom; word of mouth reputation; internal customer satisfaction eg job satisfaction, teamwork; negative effects of poor communication

Codes of practice: eg industry, organisational, professional; ethical standards


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4 Know how to monitor and evaluate customer service within an organisation

Monitor: informal customer feedback; customer questionnaires/comment cards; staff feedback; mystery customers; complaints/compliment letters

Evaluate: level of sales; repeat customers; new customers; level of complaints/compliments; staff turnover

Improvements: improvements to quality of service; reliability; improvements to the organisation eg improve service, keep staff, attract new customers, increase turnover, compliance with legal obligations; improvements for employee eg job satisfaction, working environment


19

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20



Delivery

This unit introduces learners to a number of significant concepts relating to customer service. All learners will have been a customer at one time or another and will have had varied experiences. Some may have given little thought to their role as a customer, others may have found themselves in a situation where they were forced to complain, making them think more about what customer service is about. The old adage ‘the customer is always right’ does not always ring true but tutors should emphasise throughout this unit that the customer’s needs and perceptions are of paramount importance. Learners need to recognise, firstly, the value of a satisfied customer and secondly, the damage a dissatisfied customer can do.

Customer service cannot occur in a vacuum and needs a vocational context to make sense. This unit can be delivered either in the workplace, in a realistic working environment (such as a training restaurant, hairdressing salon or motor vehicle workshop) or under simulated conditions. (Tutors must ensure that sufficient time away from real or realistic conditions is provided to support the theoretical understanding.) Delivery and assessment of the practical aspects in workplace or realistic conditions are ideal. However, where such opportunities are unavailable, simulated alternatives are acceptable. Care must be taken that learners understand what type of business is being simulated and tutors for this unit should consult with colleagues delivering other units to provide useful vocational links.

The unit begins with the development of learners’ knowledge and understanding of how customer service is provided in business. Discussion groups can initially be used to explore learners’ experiences relating to customer service. Some may only have experienced this in their role as a customer. Others may already have part-time jobs and be in a position to share the experiences they have already had of delivering customer service. Tutors should also encourage the groups to relate their discussions to local, regional or national businesses they have studied or are studying in other units.

It is important for learners to recognise the importance of internal customers as well as external customers. For example, the five-star Gleneagles Hotel in Scotland has two distinct teams. Chefs who had originally perceived themselves to be directly involved with the customer as providers of the food they ate in fact had no direct relationship with customers themselves, as they did not serve the food. Their service contract was with the food service team, delivering food at the right time and of the right quality to waiting staff. The two teams are recognised by the hotel as the ‘guest services team’ and the ‘services provision. Learners can use this example to research other organisations where similar internal customer interfaces exist.

This section can be drawn together by using case study materials to illustrate the benefits of customer service to the customer, to the organisation and to the employee. Some role play discussions can be developed, with different learners debating the benefits (or disadvantages) of certain actions to the customer, the organisation and the employee.

Learners may have a variety of existing presentation and interpersonal skills before beginning this unit. Visiting speakers can be used to emphasise the importance of these skills for customer service situations. A variety of video materials are also available that can illustrate these skills in action. Tutors should not limit their ideas to ‘regular’ customer service videos. Soap operas such as Coronation Street, comedy classics such as Fawlty Towers, pseudo-documentaries such as Airline or Builders from Hell all provide a rich source of customer service interactions that can expose good or bad presentation and interpersonal skills in customer service situations.


21


Once their knowledge base is developed, learners need to practice these skills. Role plays and simulations provide a useful starting point but the best experience will come from a real or realistic working environment, perhaps through a period of work experience or work shadowing. Again, tutors should consult with colleagues to find the best way of integrating this aspect with other units.

As their knowledge and skills develop, learners can begin to examine how consistent and reliable customer service contributes to customer satisfaction. Visiting speakers can deliver presentations that provide real examples of customer satisfaction in practice. It can be very difficult to illustrate examples of poor customer satisfaction and many organisations will be unwilling to expose instances where this has happened within their organisation. Tutors can use case study materials — either real or developed from realistic situations — to highlight key issues that learners may not otherwise experience.

The final element of this unit demonstrates how knowledge of customer service can be used to enhance the operation of a business. Learners need to understand that there is more to customer service than consistently meeting and exceeding customers’ needs. Learners need to develop their knowledge of how customer service can be used by management to deliver improvements to the business, for example through procedural changes or by introducing new products. The techniques of monitoring and evaluating customer service will require some regular teaching, leading to discussion groups which can link to businesses that the group have visited or otherwise experienced (perhaps through a visiting speaker). Groups can focus on one specific business and explore how monitoring and evaluation techniques could be used and what improvements they may lead to. Visiting speakers can deliver presentations on how larger organisations manage this aspect of customer service. (It would be interesting, but not critical, for learners to discuss the importance of monitoring and evaluating customer service for smaller businesses, whether this happens and how it might be managed.)

Assessment

Learners will be expected to produce evidence that shows their knowledge and understanding of customer service in the industry. It may include:

a presentation summarising how effective customer service is provided •

•

•

•

records of how the learner has applied effective presentation and interpersonal skills in customer service situations

a log or diary of how the learner has demonstrated consistent and reliable customer service, including how this contributes to customer satisfaction

an account of how customer service is monitored and evaluated within a business, suggesting improvements.

The first pass criterion must address internal customers as well as different types of external customer. The second pass criterion must provide evidence of demonstrating presentation and interpersonal skills in at least three different customer service situations. Centres must ensure that they have effective mechanisms to record observations of learner performance and for learners to record appropriate personal statements as evidence of practical work. Where different situations are required in the assessment criteria, learners’ evidence would be strengthened by reflecting on contrasting situations and types of customer, although this is not an essential requirement. Learners are asked to provide consistent and reliable customer service to a range of different customers. This should reflect at least three different types of customer, as described in the content, and will need careful planning if access to work experience or a regular realistic work environment is unavailable.


22


For the third and fourth pass criteria, learners could draw on examples they have experienced through visits to local or regional businesses, presentations by visiting speakers, or research on the internet. Learners should incorporate evidence of how consistent and reliable customer service and the application of codes of practice contribute to customer satisfaction. They should also show how customer service within an organisation can be monitored and evaluated. Tutors should consider the value of inviting local businesses to contribute to the assessment of learners’ work, either by attending presentations or by reading reports or assignment work. It may be preferable to limit this to the pass criteria, as local business representatives may not have sufficient experience to deliver accurate assessments at merit and distinction level. Tutors need to make professional judgements on this point.

The first merit criterion and first distinction criterion should reflect a level of confidence that would be appropriate in a real working environment. Learners should be able to sustain this for at least three different customer service situations (which may be the same ones used as evidence to support the second pass criterion).

For the second and third merit criteria, learners need to draw on the content of the unit to explain why presentation, interpersonal and communication skills are important to customer service, and to explain how monitoring and evaluating can improve customer service for the customer, the organisation and the employee. Although this is not required, learners would benefit from drawing on examples from their own experience or from case study examples.

For the first distinction criterion, learners need to think beyond the basic provision of customer service to be able to anticipate and meet the needs of at least three different types of customers in a range of situations. This is a practical criterion, which will depend on a good and confident level of customer service skills and sufficient knowledge and understanding both of the skills involved and the product and/or service knowledge that supports them. The second distinction criterion is knowledge-based, building on the delivery of effective customer service and analysing how this can benefit the customer, the organisation and the employee. Again, learners will benefit from drawing on examples, either from their own experience (which may be limited) or from case study materials or newspaper and journal accounts.


It is important for tutors to recognise that this unit should not be delivered in isolation. Tutors should discuss with their team and programme manager how it can be integrated with other units within this qualification. Examples would occur where visits to local businesses are planned into the delivery for other units. This will help to ease the demand of visits on individual businesses.

The following units may be particularly useful to support this unit:

• Unit 6: Providing Business and Administration Support

• Unit 7: Personal Selling

• Unit 8: Doing Business Online.

Depending on the delivery approach and the evidence generated by learners, this unit may contribute to a range of units in the Level 2 NVQ in Customer Service, especially:

• Unit 1: Give customers a positive impression of yourself and your organisation

• Unit 5: Support customer service improvements.

Tutors may wish to adapt the delivery of this unit to support the knowledge and understanding aspects of related customer service or other NVQ units.


23


This unit also provides opportunities to gain key skills in application of number, communication, information and communication technology, improving own learning and performance, and problem solving.

Essential resources

Learners will benefit from visits to a range of businesses to experience customer service first hand. Case study materials, textbooks and visiting speakers should be used to underpin the knowledge and understanding elements of the unit and add vocational relevance.



Bee F and Bee R — Customer Care (Chartered Institute of Personnel and Development, 1999) ISBN 0852927762

Hayes J and Dredge F — Managing Customer Service (Gower Publishing Limited, 1998) ISBN 0566080052

Johns T — Perfect Customer Care (Arrow Business Books, 1999) ISBN 0099406217


24


Key skills


Application of number level 2


• evaluating data from customer feedback questionnaires

N2.1 Interpret information from a suitable source.

N2.2 Use your information to carry out calculations to do with:

a amounts or sizes

b scales or proportion

c handling statistics

d using formulae.

• suggesting improvements from the results of customer feedback questionnaires.

N2.3 Interpret the results of your calculations and present your findings.



•

•

discussing different types of customers and the specific needs of each

describing the range of products or services offered by organisations



• explaining the key factors involved in good personal presentation


•

•

using verbal communication skills to explain complex written information to a customer

using written communication skills in a customer service situation.

C2.3 Write two different types of documents each one giving different information. One document must be at least 500 words long.


25


Information and communication technology level 2


ICT2.1 Search for and select information to meet your needs. Use different information sources for each task and multiple search criteria in at least one case.

ICT2.2 Enter and develop the information to suit the task and derive new information.

• designing and developing questionnaires to monitor and evaluate the provision of customer service.

ICT2.3 Present combined information such as text with image, text with number, image with number.



•

•

•

delivering customer service in a range of situations

applying effective presentation and interpersonal skills in customer service situations

demonstrating how consistent and reliable customer service contributes to customer satisfaction.




Problem solving level 2


• identifying the improvements that could be made to customer service delivery.

PS2.1 Identify a problem, with help from an appropriate person, and identify different ways of tackling it.

PS2.2 Plan and try out at least one way of solving the problem.

PS2.3 Check if the problem has been solved and identify ways to improve problem solving skills.


26

UNIT 3: INVESTIGATING FINANCIAL CONTROL

Unit 3: Investigating Financial Control



Unit abstract

Money is at the very heart of business. It is likely to be main the reason why a business was created and for it continuing to trade. Where a business is generating more money than its costs, the excess presents the business with opportunities to develop and expand. Where costs are greater than the income, other than for short periods, the business is likely to be unsuccessful and die. A business without the financial skills to manage its money is unlikely to survive for long.

This unit looks at the financial aspects of running a business, starting with an investigation into the types of costs that different businesses will incur. This is followed by exploring how the sale of products or services generates revenue to give the learner the basis upon which they can develop their understanding of profit.

The awareness of profit leads the learner into break even analysis. This is a technique used to forecast whether a new venture or the sale of new products or services is likely to make profits in the future and how risky this might be if the revenues or costs are not as originally predicted.

The unit then looks at the concept of cash flow forecasting, which is concerned with predicting the amount of money entering and leaving the business’s bank account each month. This will identify whether the business has sufficient money in the bank to meet their bills or not and what steps a business can take to meet any shortfall. This is followed by exploring how cash flows can be managed more effectively and the learner will be given an insight into one of the primary causes of business failure — the problem of payment timing rather than that of profitability alone.

Finally, the unit looks at how businesses record transactions and the financial process behind a simple business transaction. The learner will be made aware of the potential for fraud within companies handling these transactions and how this may be addressed.

Learning outcomes


1 Understand the costs, revenue and profit for a business operation

2 Know how businesses use break even analysis

3 Be able to prepare a cash flow forecast

4 Understand ways of recording financial transactions.


27


Unit content

1 Understand the costs, revenue and profit for a business operation

Business costs: costs incurred at start up; operating costs (fixed, indirect, variable, direct costs, total costs)

Revenue: sources of revenue eg sales, leasing, interest; calculating total revenue (unit sales price x number of units sold)

Calculating gross and net profit: revenue (income) minus costs (expenditure), cost of sales, expenses (operating costs); maximising profits (increasing revenue and/or decreasing costs)

2 Know how businesses use break even analysis

Break even: balancing costs or expenditure with revenues or income; areas of profit and loss; margin of safety

3 Be able to prepare a cash flow forecast

Cash inflow: capital; sales; loans; regular and irregular inflows; timing of inflows

Cash outflows: purchases; loan repayments; wages; regular and irregular outflows; timing of outflows

Cash balances: opening balance; closing balance; income per period; expenditure per period

4 Understand ways of recording financial transactions

Transactions: document sequence of sales and purchasing from order to receipt of goods eg order form, delivery note, invoices, credit notes, cash receipts and payments

Recording: manual or electronic recording; day books; accounts; petty cash; cash registers; direct electronic input eg Electronic Point of Sale (EPOS)

Fraud: prevention measures; management information and control


28

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Delivery

This unit introduces the learner to the financial aspects of running a business. Careful consideration should be given to a delivery strategy that introduces progressively complex numbers and calculations. Tutors should also consider ways of building learners’ knowledge, skills and understanding based initially on straightforward exercises, then linking with case study material and ultimately basing work on real businesses where owners/managers are willing to provide appropriate data and support the development of suitable scenarios. Local businesses should be a good source of financial data and learners should be encouraged to investigate the concepts in the context of a real business of their own choosing to avoid the risk of the unit being seen as an academic exercise.

The unit offers frequent opportunities for learners to supplement their skills with calculators and spreadsheets by developing their mental and graphical capabilities. This should be encouraged as it will help them to develop the crucial mathematical skill of assessing whether or not their calculation is approximately correct, rather than having to rely solely on computer software or calculators.

Simple numerical examples should be used to help learners develop their skills in manually mapping coordinates and reading axes logically. Once learners have understood the key numerical relationships and are able to relate to graphical illustrations, it is useful to plot the changes in profit, loss and break even sales/output levels caused by adjusting prices, fixed and variable costs. In this way learners are able to get a feel for the size of the numbers. The use of wall displays in explaining calculations helps consolidate understanding.

The unit begins by looking at what is meant by profit and how, through an understanding of the relationship between its costs and revenues, a business can show if it is making a profit or a loss. Learners can be introduced to profit and loss using examples that they are familiar with, such as their own personal finances. This simple data can be developed over, for example, six months, showing income less expenditure and the monthly balance. Although learners may not engage in negative cash flows, they will at least be able to see the effect of a regular monthly income and how it is affected by special payments, such as a new hi-fi system. Insufficient income, even though this has built up over three or four months, would mean either that they cannot purchase the hi-fi or that they would need to access further funds, such as an overdraft.

This can then be used to show the similarities between the problems of handling personal and business finances on a day to day basis. Through this approach learners will be introduced to the importance of having knowledge of and some control over financial flows. This idea of control is taken further by giving the learner the opportunity to recommend ways of improving net profit through the improvement of revenues or reduction of costs. A business scenario could be used to form the basis of a group investigation/discussion on recommendations for improvement.

Business start up scenarios are a useful source of data for introducing the concept of break even and the tutor could usefully discuss this and other aspects of this unit with colleagues delivering either Unit 9: Exploring Business Enterprise or Unit 10: Starting a Small Business. Learners may also have ideas for a new business or product that could be developed to show how to forecast the level of sales needed to break even or to make a profit.


30


Learners should now be familiar with the importance of having a profitable business but they also need to understand the importance of the timing of cash inflows and outflows. Cash flow forecasting captures the key information on the size and timing of these inflows and outflows of money in one chart or table. Learners may be able to relate most easily to the use of data from ‘seasonal businesses’, such as holiday hotels or retailers of seasonal goods. These are particularly good for demonstrating the importance of cash flow, as periods of positive and negative cash flow should be easily identifiable. Learners should create cash flow forecasts over periods of at least six months and eventually over a full yearly cycle. Group work/discussions can then be used to develop learners’ understanding of how to improve a specific cash flow scenario. Consideration should be given to introducing the subject of credit control as a means of managing cash flow in a business at this point.

The unit concludes with learners investigating the various means by which businesses record and monitor financial transactions, from order to receipt of goods. Tutors should provide sample documentation, linked to a case study that enables learners to follow sales and purchase data through the entire sequence. Where possible, learners should then choose a company willing to support the development of this area, through which they can investigate the process of purchases and sales, from recording the initial transaction to describing the actions that the company takes in order to prevent, or minimise, the level of fraud that can occur.

Assessment

Learners will be expected to produce evidence that shows their knowledge and understanding of financial control. It may include:

• a presentation which shows learners’ understanding of costs, revenue and profit for a business operation

• results of practical exercises demonstrating how businesses use break even analysis

• results of practical exercises demonstrating the use of cash flow forecasts

• findings from learners’ investigations into how budgets are used for planning and monitoring business finances

• an explanation of how financial transactions are recorded.

Where appropriate, evidence for assessment criteria should be generated using practical activities and illustrated using examples based on exercises, case studies or real data.

To achieve a pass grade, learners will need to describe how to calculate net profit and to demonstrate this using revenue and costs (fixed and variable) that are typical in a business of their own choice. This data could be sourced from a suitable local business or through a scenario produced in-house. This scenario can then be extended to give learners the raw data from which to produce a break even chart. To meet the second pass criterion learners should use the data to create a break even chart, either graphically or using computer software, and to annotate this explaining the break even point, profit, loss and the margin of safety. (It is important when using computer software that learners create the spreadsheet themselves to demonstrate that they understand how to calculate break even.)

The third pass criterion allows the learner to demonstrate their ability to create a typical cash flow forecast. This should be based on a cyclical business which would expect to have periods where cash outflows exceed inflows. These can be identified in the cash flow forecast. Learners will then complete criterion four by explaining how budgets can be used to plan and monitor the financial control of a business or functional area, using example budget forecasts over a 6–12 month period for a business/department of their own choice and then compare the variance, month by month, of actual monthly expenditure against the original forecast. Finally, learners must explain simple ways of recording financial transactions in the case of a small business, focusing on the effectiveness and security of the methods used.


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To achieve a merit grade, learners will be expected to demonstrate how break even calculations change when the costs (fixed and variable) and unit revenues are changed, to show that they understand the variables they are manipulating. The second merit criterion allows the learner to explain the impact that poor or negative cash flow can have on a business and why a profitable business could easily go bankrupt due to cash flow problems. The use of a simple numerical example, with appropriate explanation, could be used to show that the learner understands the potentially serious impact that poor timing of cash flow can have on a business, even though the business they are undertaking is profitable in the longer-term.

To achieve a distinction grade, learners should suggest possible courses of action to control the business’s cash flow most effectively. This will give the learner the opportunity to show that they understand which elements of the cash flow forecast can be most effectively manipulated in order to improve the month by month cash flow and the implications that follow from raising prices or cutting fixed and/or variable costs in appropriate areas. It is not necessary at this level to explore the implications of inelastic or elastic demand, although it is likely that some connection between the demand for a product/service and its price will be indicated. The ability to assert a viewpoint will help learners analyse the extent to which the financial controls/techniques that have been introduced in this unit contribute to the overall effective performance of a business operation.


This unit complements Unit 1: Exploring Business Purposes as it explores the financial dimensions of aims and objectives. It also complements Unit 10: Starting a Small Business as it addresses some of the calculations involved in small business operations.

This unit offers opportunities to gain key skills in application of number, communication, information and communication technology and problem solving.



Anderton A — GCSE Business Studies (Causeway Press, 2001) ISBN 1902796292

Carysforth and Neild — BTEC First Business (Heinemann, 2004) ISBN 0435401386


Wales J and Wall N — Nuffield — BP Business and Economics for GCSE, Second Edition (Collins, 2001) ISBN 000711639X


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Key skills




• interpreting profitability and break even information

• calculating profitability and break even calculations

• judging proportion via cash flow and budget variances

• using formulae to represent profitability and break even calculations.



a amounts or sizes

b scales or proportion


d using formulae.




• discussing attitudes to profit versus breaking even.






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• presenting cash flow and budgets via spreadsheets, charts and text.






• confronting problems in completing profitability and break even calculations.





34

UNIT 4: BUSINESS COMMUNICATION

Unit 4: Business Communication



Unit abstract

Good and effective business communication is essential for any organisation that wants to function successfully. For small businesses, communication may be primarily verbal, with some supporting written documentation. As businesses gain in size and complexity, their communication needs also develop and they need recognisable structures to maintain clear and open channels of communication that support the aims and objectives of the business. The communication systems of global businesses can be extremely complicated and totally dependent on the efficient and effective communication skills of the managers and staff. However, while the communication needs of businesses differ, the fundamental principles remain the same.

The purpose of this unit is to develop learners’ ability to use communication skills effectively in the context of a workplace setting. Learners will develop their knowledge and understanding of the purpose of business communications and the range of contexts in which such communications occur.

The ability to listen and understand instructions in order to carry out different business tasks and the ability of an employee to communicate effectively with colleagues, supervisors and subordinates is critical to every business. Learners will develop their oral communication skills in both one-to-one and group situations.

Businesses also rely extensively on the ability of managers and staff to produce accurate, consistent and well-presented written communications. Learners will develop their knowledge and understanding of the most appropriate forms of written communication that are fit for purpose in conveying the messages. They will also develop and practice the skills needed to produce business communications for a variety of purposes.

Interpersonal skills play a significant role in how effectively colleagues communicate with each other and how they in turn communicate with customers. Learners will explore the importance of these skills and consider their impact on effective business practice.

Learning outcomes


1 Understand the purpose of communications in business contexts

2 Be able to use oral communication in business contexts

3 Be able to complete and use written business documents

4 Be able to use interpersonal and non-verbal business communication skills.


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Unit content

1 Understand the purpose of communications in business contexts

Purpose: eg to inform, to confirm, to promote, to make a request, to instruct

Business contexts: formal and informal communication eg telephone contacts, meetings, technical enquiries; communicating with supervisor, colleagues, customers; complaints; presentations; confidentiality

2 Be able to use oral communication in business contexts

Listening skills: listen and understand instructions given verbally; interpret instructions and task requirements correctly; make notes; confirm understanding; seek clarification where appropriate

One-to-one communication: methods of conveying messages or series of instructions; language and expressions that will be understood by the recipient; messages to suit different situations

Working in a group situation: make relevant contributions to a discussion about business tasks; meeting; team briefing; respond appropriately to others; move a discussion forward

3 Be able to complete and use written business documents

Documents: eg letters, memos, reports, agenda, minutes, purchase orders, invoices

Appropriate layouts: fitness for purpose; appropriate to the task and the audience; use of different formats and styles eg use of appropriate fonts, headings, images, pagination, document headers and footers

Writing documents for business: use of relevant technical language; drafting and redrafting to ensure accuracy; legibility and consistency; conventions; checking for accuracy, consistency and fitness for purpose; meeting deadlines

Recording and reporting: type of record; keeping accurate and complete records of conversations, meetings and/or agreed actions; accurate and concise reporting in sufficient and appropriate detail, working within given deadlines and timeframes; reporting issues as they arise to the appropriate person

4 Be able to use interpersonal and non-verbal business communication skills

Conveying a professional image: appropriate dress or uniform to meet industry conventions or regulations; excellent personal hygiene; sound organisational skills; good time management; professional and business like manner when dealing with staff and customers

Dealing with confidential matters: using appropriate methods of communication to convey confidential messages; sensitivity in dealing with confidential issues; understanding of material that might be confidential.


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Delivery

Any business relies on the communication skills of its employees in order to run effectively. Internally, a business needs to have effective systems that are well organised. Communication matters between different functional areas, across spans of control and between teams who are all working to meet the stated aims and objectives of the business. It is essential for learners to be able to identify the different communication skills they need in order to be effective in the workplace. Developing good verbal, non-verbal and written communication skills will help the learner to function more effectively both in their studies and eventually in their chosen role at work.

This unit looks firstly at the purpose of business communication. Discussion groups can be a useful start but tutors should be aware that some formal input may also be required. It may be helpful to link this with other units involving visits to local businesses, where learners can begin investigating business communications by asking appropriate questions. Tutors should help learners to devise a selection of appropriate questions that focus on both the purpose of business communications and a suitable range of different business contexts. This will itself benefit from discussions involving the delivery team, in order to identify different opportunities that would be useful to learners.

Learners then need to develop their knowledge and understanding of oral skills in a one-to-one and a group situation. The skill of listening is often overlooked and taken for granted. Learners need to be made aware of how important it is to listen to instructions and to sift and select the relevant information in order to perform the required tasks to a satisfactory standard. Learners also need to have the confidence to seek clarification about aspects of the instructions that are not clear.

Group activity requires both listening skills and the ability to respond effectively. Where learners are required to concentrate on how well each member of the group listens to other members can help to highlight learners’ strengths and weaknesses relating to listening skills. Group activity can also allow for an opportunity to explore the benefits of the group working cohesively together. Learners should discuss the implications of instances where one group member may let others down by not listening carefully enough.

Learners will benefit from formative feedback from the tutor who can highlight how well the learner responds to others or is able to move the discussion forward, as well as reviewing the quality of their contribution to the discussion. One-to-one interactions between the tutor and the learner, or between the learner and an employer, can also provide opportunities for practising good listening skills as well as providing the learner with the opportunity to respond, seek clarification and confirm understanding.

Development of business communication skills will require some formal input on the range of related documents which can be used and how each can be formatted. Sample documents are essential to illustrate to learners the layout of different documents and also how the same document (eg purchases orders or invoices) can vary without altering the function that they serve.

Effective written communication impacts on every aspect of successful business organisation. Accuracy and good presentation are essential. Learners need to understand the implications for a business of poor or inaccurate written communication. Providing examples of different types


38


of business documentation may well be a good start here. Written documentation could be a simple memo or note conveying a telephone message, a set of documents that track an order from being placed to the final invoice, catalogues, flyers or brochures, letters, faxes and emails, in depth company reports or financial planning tools. Each document is important in its own right, and this aspect can be developed by providing learners with the opportunity to examine different documents and discuss the implications of poor presentation, incorrect information or errors in grammar and text.

Learning can then progress to the use of simulations or case studies that can take learners through a sequence of processes such as the documentation involved in purchasing (see links to Unit 3: Investigating Financial Control) or the process of making a booking for a hotel or conference centre, involving letters, memos, meeting schedules and so on.

Learners would benefit from the opportunity to choose which documents might be suitable for a series of simulated tasks set for them by the tutor. Practice in developing written documentation will allow the learner an opportunity to explore the need to think carefully about the nature of the work being produced, who is the intended audience and to question whether it is in fact fit for the purpose for which it is intended. Learners will also benefit from links with local businesses that may be willing to supply copies of documentation used in real situations, adding currency and vocational realism. Learners may also use their own experiences from work placements, part-time employment and family experiences and observations.

Assessment

Learners will be expected to produce evidence that shows their knowledge and understanding of business communication. It may include:

• a presentation or report explaining learners’ understanding of the purpose of business communications in different business contexts

• records of how learners have used oral and written business communications effectively

• a summary of the importance of interpersonal and non-verbal communication skills, supported by records of the learner demonstrating these skills.

To achieve a pass, learners must use examples to describe the purpose of business communications in at least four different contexts, which should show an acceptable level of contrast. (As well as the business contexts described in the content, learners should also consider the business environment from which each communication is drawn, eg a large retail outlet, a manufacturing or engineering works, or a public services environment such as a hospital or library.)

Learners must demonstrate an understanding of explicit verbal instructions and carry them out to a specified standard and on time. (Tutors should ensure that learners have the capacity to carry out these instructions.) For example, the request to photocopy a meeting agenda and set of previous minutes double-sided and stapled, for posting to a set of delegates the same day. (For this example, it would not be necessary to frank or post the documents but they should be placed in appropriately addressed envelopes.) Learners’ evidence must also reflect group work as well as one-to-one oral instructions, providing records of their effective contribution to a group discussion. Evidence can be on audio or video tape but this will only record some of the detail required. This must be supported by an observation record completed by the tutor or an experienced witness to confirm the actions that have met the assessment criteria.

Learners should produce at least three different documents to support straightforward business tasks. These could be linked to other pass criteria or delivered independently. However, tutors must ensure there is sufficient contrast in the documents. For example, three different letters would be insufficient to meet this criterion. However, a purchase order, a letter and a memo — all of which may relate to the same matter — would be acceptable.


39


Learners must demonstrate effective interpersonal and non-verbal communication skills when demonstrating business communications. For example, this could be reflected in their response to oral communications (both one-to-one communications and working in a group situation) and their handling of the directions they are given for carrying out tasks relating to written communications.

For a merit grade, learners need to explain how oral communications can be used in business situations. They should select examples from their experience to illustrate their evidence. Learners also need to justify the use of appropriate documents and layouts for business purposes. Assignments or project tasks should allow learners the flexibility to choose from a range of different documents. For example, to ask learners to answer a letter would only provide limited opportunity — a letter in response is probably the only solution. However, to ask learners to respond to a request for a conference booking should involve a letter of reply supported by memos to heads of department, a conference function checklist and preparation of a sample invoice to present to the customer on completion of the event.

In addition to demonstrating effective interpersonal and non-verbal communication skills, learners also need to explain how these can be used to support effective communications. Again, learners should draw on examples from their experience to illustrate their evidence, which should provide an explanation rather than just a demonstration of skills.

For a distinction grade, learners should use examples of oral and written communications to support their analysis of their effectiveness in a given business context. The business context may be one of the learner’s choosing, perhaps based on a local business they have visited. They would be well advised to discuss their evidence with the owner/manager of the business in order to expand on their analysis and add an appropriate level of vocational realism. Learners should also consider using the same business for their evaluation of the importance of effective interpersonal and non-verbal communication skills. Again, their evidence would benefit from discussions with the owner/manager. Tutors could also consider consulting with owners/managers to assess the evidence presented by learners, although they should also be conscious of the capability of such business people to make effective judgements for distinction criteria.


This unit has links with Unit 1: Exploring Business Purposes and with Unit 6: Providing Business and Administration Support, where administrative effectiveness clearly depends on effective communication skills. Links also exist with Unit 2: Developing Customer Relations and Unit 7: Personal Selling, where interpersonal sales and customer service skills feature clearly. Unit 10: Starting a Small Business further highlights the importance of effective communication skills. There is also a link to Unit 3: Investigating Financial Control where such documents are used to support this unit.

This unit supports the following unit in the Level 2 NVQ in Customer Service:

• Unit 1: Give customers a positive impression of yourself and your organisation.

This unit also supports the following units in the Level 2 NVQ in Business and Administration:

• Unit 201: Carry out your responsibilities at work

• Unit 206: Deal with visitors

• Unit 221: Prepare texts from notes

• Unit 224: Produce documents

• Unit 225: Work effectively with other people.


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This unit provides opportunities to gain key skills in communication and information and communication technology.

Essential resources

Learners should also have access to library and internet facilities to support their research. Learners should be encouraged to use a range of sources of information, including reports and trade press articles.



Anderton Alain — GCSE Business Studies (Causeway Press, 1998) ISBN 1873929846

Carysforth Carol — Communication for Work (Heinemann Education, 1998) ISBN 0435455427

Fardon Michael, Nuttall Chris and Prokopiw John — GCSE Applied Business (Osborne Books Ltd, 2002) ISBN 1872962327

Miles P — Business and Communication Systems GCSE (Nelson Thornes, 2003) ISBN 0748770992


41


Key skills







• discussing issues of communication in business.

C2.3 Write two different types of documents each one giving different information.

One document must be at least 500 words long.




• producing presentations of financial information in written communications.

ICT.2.3 Present combined information such as text with image, text with number, image with number.


42

UNIT 5: PEOPLE IN ORGANISATIONS

Unit 5: People in Organisations



Unit abstract

Business organisations are usually made up of a wide range of different people, each with their own role and responsibilities to carry out in order to contribute to the business organisation’s aims and objectives. Owners and managers need to rely on strong and effective relationships with good employees if they are to guarantee business success. Employees need to understand their own skills and abilities if they are to find an employer able to offer them a suitable position that meets their current and future needs. Both managers and their staff need to build effective working relationships if the business is to run most efficiently. In other words, irrespective of what its core business is, or what its aims and objectives are, every business is dependent on an effective infrastructure made up of people.

This unit introduces learners to the importance of the roles people have and to the contribution individuals and groups make to the effectiveness of organisations. The skills of employees both individually and collectively, are important for the success of organisations. Organisations will select employees by assessing whether they have the right attributes and attitudes. Organisations will then seek to develop their employees as change occurs both internally and externally. People will be expected to work in ever changing groups and will need to be flexible and adaptable as they mesh their abilities with those of others as organisations try to achieve their purposes. In addition, people will want to enhance their skills and improve their career and employment prospects and enjoy greater rewards as they seek a fulfilling work life, much of which will be spent within organisational settings.

The unit begins by asking learners to consider what skills, knowledge, qualifications and interests they have and how these can be used in choosing a suitable job. Learners will move on to develop their knowledge and understanding of terms and conditions of employment.

Once employed, an employee will be required to make an effective contribution to the work of the organisation, so learners need to understand the structures and ethos of different organisations and how employees work within them. Employees work with others, so learning to be a good team member is important. Contributions to team working are made not just by senior employees but also by junior staff and learners will appreciate that they too will be expected to contribute to the successful work of teams. Learners will experience some of the performance review measures that are used by employers or by their school or college. In time, they may want to be promoted so learners need to know how they can plan their careers and move on to more responsible jobs.

Learning outcomes


1 Know how to prepare for employment

2 Understand terms and conditions of employment

3 Know how working practices are developed

4 Be able to plan career development.


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Unit content

1 Know how to prepare for employment

Personal audit: knowledge; skills eg technical, practical, communication; matching knowledge and skills to job opportunities

Types of employment: eg full-time, part-time, permanent, temporary, seasonal, paid, voluntary

Sources of information and advice: sources eg advertisements, word of mouth, employment/government agencies; advice eg government agencies, careers advisers, tutors, existing and previous employers, careers fairs, friends and family

Applying for jobs: job specifications; person specifications; application forms; curriculum vitae; letters of application

2 Understand terms and conditions of employment

Terms and conditions of employment: contracts of employment; payment terms; probation; disciplinary procedures; grievance procedures; annual leave; maternity and paternity leave; notice and termination; redundancy; union membership; compliance with company policies/codes of behaviour; representing the organisation; ethical behaviour; contract fulfilment

Legal framework for employment: relevant legislation affecting both the employer and employee eg:

• Disability Discrimination Act 1995

• Employment Act 2002

• Employment Rights Act 1996

• Equal Pay Act 1970

• Health and Safety at Work Act 1974

• National Minimum Wage Act 1998

• Race Relations Act 1976

• Race Relations (Amendment) Act 2000

• Sex Discrimination Act 1975

• Working Time Regulations 1998


44


3 Know how working practices are developed

Organisational structures and job roles: structures eg hierarchical, flat, matrix, functional, divisional; interdepartmental linkages; organisational policies on behaviour and conduct; roles within departmental structures; contribution of individual’s role to achieving business purposes

Team working: the importance of team working, interdependence of group members; group responsibility

Personal attributes: personal presentation; verbal and written communication skills; following instructions; punctuality and time planning; courtesy; honesty; observing confidentiality

4 Be able to plan career development

Reviewing performance: eg performance at work, school or college; formal performance appraisal; informal reviews from peers and colleagues

Career development: eg induction, training needs, development plans, performance targets, certificated training, un-certificated training, personal development, flexible working, progression opportunities


45

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ieve

men

t req

uire

d to

pas

s thi

s uni

t.

Gra

ding

cri

teri

a

To

achi

eve

a pa

ss g

rade

the

evid

ence

mus

t sho

w

that

the

lear

ner

is a

ble

to:

To

achi

eve

a m

erit

grad

e th

e ev

iden

ce m

ust s

how

th

at, i

n ad

ditio

n to

the

pass

cri

teri

a, th

e le

arne

r is

abl

e to

:

To

achi

eve

a di

stin

ctio

n gr

ade

the

evid

ence

mus

t sh

ow th

at, i

n ad

ditio

n to

the

pass

and

mer

it cr

iteri

a, th

e le

arne

r is

abl

e to

:

P1

mat

ch c

urre

nt k

now

ledg

e an

d sk

ills t

o po

ssib

le jo

b op

portu

nitie

s usi

ng a

ppro

pria

te

sour

ces o

f inf

orm

atio

n an

d ad

vice

P2

com

plet

e an

app

licat

ion

for a

sele

cted

job

oppo

rtuni

ty

P3

desc

ribe

the

term

s and

con

ditio

ns o

f em

ploy

men

t in

a se

lect

ed o

rgan

isat

ion

P4

desc

ribe

how

wor

king

pra

ctic

es a

re

deve

lope

d

P5

prod

uce

a ca

reer

dev

elop

men

t pla

n us

ing

perf

orm

ance

revi

ews.

M1

ex

plai

n th

e im

porta

nce

of te

rms a

nd

cond

ition

s of e

mpl

oym

ent

M2

co

mpa

re a

nd c

ontra

st th

e or

gani

satio

nal

stru

ctur

es a

nd jo

b ro

les w

ithin

two

busi

ness

or

gani

satio

ns

M3

ex

plai

n th

e im

porta

nce

of te

am w

orki

ng a

nd

pers

onal

attr

ibut

es w

ithin

two

busi

ness

or

gani

satio

ns.

D1

an

alys

e, u

sing

exa

mpl

es, t

he im

plic

atio

ns o

f te

rms a

nd c

ondi

tions

of e

mpl

oym

ent

D2

ev

alua

te h

ow p

erso

nal a

ttrib

utes

and

team

w

orki

ng c

ontri

bute

to w

orki

ng p

ract

ices

.

Gui

danc

e to

supp

ort t

he a

sses

smen

t of t

his u

nit i

s ava

ilabl

e on

pag

e 48

.

BF0

1725

9 –

Spec

ifica

tion

– E

dexc

el L

evel

2 B

TEC

Firs

t Cer

tific

ate

and

BTE

C F

irst D

iplo

ma

in B

usin

ess

– Is

sue

1 –

Janu

ary

2006

46



Delivery

This unit is designed to be taught using practical tasks that draw on some of the learners’ own experiences of employment. It is not a pre-requisite that learners have existing experience of employment (for example through part-time work or work experience) but many learners will at some point want to enter the workforce.

Initially, learners need to consider the labour market both nationally and locally and what sorts of job opportunities exist. They need to have some idea of the job and career that they wish to pursue. If they have little idea of what they want to do, learners must investigate the range of advice available and take advantage of what advice is offered (this aspect is also important for those learners with clear ideas about their future employment prospects). To consider what opportunities are available from an informed perspective, learners need to review whether they are adequately equipped to apply for the jobs that attract their interest. By undertaking a personal skills audit, learners will be able to match their current skills and characteristics to those of potential jobs. Obtaining information about jobs in the form of advertisements, job descriptions, person descriptions and application forms will allow learners to identify the range of employment available and the sort of qualities sought by potential employers. Tutors should provide an appropriate range of resource materials, such as trade journals featuring job advertisements for specific vocational sectors. As part of the process of seeking employment, it would be useful for learners to prepare and keep up-to-date a standard application letter and curriculum vitae.

Learners need to develop their knowledge and understanding of the obligations that employers have for their employees once they are in employment. Employees are entitled to receive a contract of employment. Learners need to identify the main features of a contract of employment, covering hours, pay rates, payment methods, holiday entitlement, notice and termination, grievance procedures, disputes procedures and probation. Some controlled internet research may be helpful here but tutors may prefer to provide examples of contracts featuring the components described above, supported by guidance which is available from an extensive number of websites.

The legal framework for employment encapsulates various key pieces of legislation and the learner must be able to identify the main statutes and the requirements they place on both employer and employee. A specialist speaker may be invited to deliver an appropriate presentation. In any organisation there are less formal obligations that are expected of both employer and employee. Many organisations have codes of conduct and some local employers may be willing to provide examples for learners to examine. Learners need to identify the types of behaviour that are expected in organisations in relation to confidentiality, honesty, reliability, punctuality, appearance, conduct and representing the organisation. Discussion groups to share learners’ knowledge and experience of these aspects will expand the knowledge pool and support those learners who may have little or no previous experience of employment.

For this unit, the concept of working practice focuses on organisational structures, the job roles that fit into them and how these organisational structures and job roles are influenced by team working and personal attributes. Employees all contribute to organisational purposes. Working in small groups will enable learners to explore a number of different local businesses and share their findings with the rest of the main group. Groups should identify


47


the organisational purposes of different businesses, including the purposes of not-for-profit organisations. These would include profit maximisation, growth, market domination, service provision and customer satisfaction. Similarly, learners must identify that departments within organisations have goals, which must be compatible with organisational purposes. Learners can also discuss how their personal work goals contribute to both departmental and organisational goals (this again will support learners with limited or no work experience). Most organisations have structures within which employees have to function. Learners need to examine the different types of organisational structures, including departmental structures. Once again, input from appropriate specialist speakers will make a valuable contribution to currency and vocational relevance. Learners need to understand how the work of different departments is related and interdependent and helps secure organisational purposes.

Learners also need to understand the role of individuals within departmental structures. Team working is an important feature of working in an organisation and learners should explore how teams are established and the roles of different team members. By working in groups, they can identify the importance of the contributions they make, along with an understanding of the interdependence needed to achieve the group’s overall purpose. Learners can use this experience to demonstrate a range of personal skills that are important for an effective employee.

Once established in employment an employee would have their performance reviewed and would probably be seeking to develop a career. Some learners may already have experienced performance reviews and it will be useful for others if they are willing to share this information. Specialist speakers can help them to explore the types of reviews that are used in organisations and what the possible outcomes of these reviews might be. Case study materials can highlight and/or support specific issues that may otherwise be difficult to expose. Learners should also produce a personal development plan of the type they might use at work when seeking to enhance a career. This will help them to recognise the need to become a flexible worker in response to organisational changes.

Assessment

Learners will be expected to produce evidence that shows their knowledge and understanding of people in organisations. It may include:

• a presentation illustrating how to prepare for employment and what the terms and conditions of employment are

• results of their findings relating to the development of working practices

• a draft career development plan.

Learners should generate assessment evidence from their learning programme and from workplace situations, as well as using practical activities and exercises where appropriate.

For the first pass criterion, learners will need to prepare a personal audit. They should also prepare a curriculum vitae that they keep up to date over their programme of study. By obtaining advice and guidance on employment they can identify possible job and career opportunities. Specific opportunities can be identified from job advertisements and learners can assemble a collection of potential jobs. Application forms, job specifications and person specifications can be obtained from a selection of the advertised jobs to support the second pass criterion. Learners can then complete an application form, attach their CV and write a letter of application. The information could be gathered and kept in a portfolio.

For the third pass criterion, learners must describe the terms and conditions of employment. Many of these are based on the legal framework for employment. Learners must be able to identify the key pieces of employment legislation that affect employers and employees.


48


Learners must be able to describe the main features of the legislation, as it is likely to affect them as employees.

When describing how working practices are developed for the fourth pass criterion, learners should reflect the content and its delivery by commenting on how an organisation has developed its organisational structure, the range of job roles within the organisation, and the contribution made by individual personal attributes and team working. This can be achieved using examples relating to different businesses, or it could be built around a single case study or business that learners have visited as part of this or other units.

For the final pass criterion, learners must identify the mechanisms that supervisors and managers use to evaluate an employee’s contribution to the work of an organisation. They must also be able to apply the review of their performance that has been generated by their school or college. They must be able to identify the types of evidence that they might be expected to present at a probationary review or at an appraisal review. They must be able to identify the possible outcomes of such reviews and put together a personal development plan arising from them.

For a merit grade, learners must extend their knowledge of the terms and conditions of employment by explaining why these are important for both employers and employees. Examples drawn from case studies or the trade press could be used to illustrate their work. Learners also need to develop the work they have produced relating to how working practices are developed by selecting two businesses and comparing and contrasting the organisational structures and job roles. The sharpest contrast is likely to be achieved by selecting different organisational structures, such as one hierarchical and one matrix structure. The contrast in job roles should flow from this initial selection. Learners can also draw on these selected businesses to develop their evidence, explaining the importance of team working and personal attributes.

For a distinction grade, learners must further extend their evidence by showing the importance of terms and conditions of employment by analysing the implications for both employers and employees. Learners will need to use examples to illustrate their work and tutors must ensure that appropriate real or case study materials are available to support learners. Learners must also evaluate how personal attributes and team working contribute to working practices. This could be built on a case study but would be more effective if learners based their work on investigations carried out with a real organisation.


The unit links particularly with the following units:

• Unit 1: Exploring Business Purposes

• Unit 4: Business Communication

• Unit 6: Providing Business and Administration Support

• Unit 7: Personal Selling

• Unit 9: Exploring Business Enterprise

• Unit 10: Starting a Small Business.

In addition it provides opportunities to gain key skills in communication, information and communication technology, working with others, improving own learning and performance and problem solving.


49


Essential resources

Learners should also have access to library and internet facilities to support their research. Learners should be encouraged to use a range of sources of information, including reports and trade press articles.




Surridge M — Applied Business for GCSE (Collins Educational, 2002) ISBN 0007138083

Websites change continuously so this list is only indicative of the type of material that is available. There are numerous websites available. Some useful ones are:

www.bbc.co.uk/radio1/onelife/work Advice for students, including work and money

www.bbc.co.uk/schools/gcsebitesize/business BBC Business GCSE revision help

www.bized.ac.uk Resource for students and teachers of business related subjects

www.connexions.gov.uk Confidential advice, support and information for 13-19 year olds

http://news.bbc.co.uk/1/programmes/ working_lunch

BBC program on business, personal finance and consumer news

www.need2know.co.uk Advice for students, including work and money


50

http://www.bbc.co.uk/radio1/onelife/work/index.shtml?cv

http://www.bized.ac.uk/

http://www.connexions.gov.uk/


Key skills




• demonstrating the roles of team members C2.1a Take part in a group discussion.

• investigating the advice available C2.2 Read and summarise information from at least two documents about the same subject.

•

•

•

•

producing a personal skills audit

writing a curriculum vitae

writing a letter of application

producing a personal development plan.





• investigating the advice available ICT2.1 Search for and select information to meet your needs.

Use different information sources for each task and multiple search criteria in at least one case.

•

•

•

•



writing a letter of application





51





LP2.2 Take responsibility for some decisions about your learning, using your plan to help meet targets and improve performance.

•

•

•







•

•

•

investigating the advice available






Working with others level 2


WO2.1 Plan work with others.

WO2.2 Work co-operatively towards achieving the identified objectives.

•

•

demonstrating the roles of team members

making effective and appropriate contributions.

WO2.3 Review your contributions and agree ways to improve work with others.


52

UNIT 6: PROVIDING BUSINESS AND ADMINISTRATION SUPPORT

Unit 6: Providing Business and Administration Support



Unit abstract

All businesses need support of various types in order for them to operate effectively. This support may come in a variety of forms, particularly for large businesses, which may have personnel, marketing, research, administration and other specialist functions. The administration department may cover a variety of support areas, including secretarial support such as diary management and the creation, handling and processing of documentation, meeting support (organising and running the meetings) and ensuring that all the organisation’s documents are filed effectively and efficiently.

Smaller organisations may not have a specific administration department. There may simply be a secretarial office or even just a reception/switchboard function which extends to cover the administration needs of the organisation. These will vary enormously, whether the organisation is large or small, and learners will come across a wide variety of systems for providing business and administration support during their studies.

This unit introduces learners to the overarching purpose of providing business support, irrespective of the size of the organisation concerned. This may be to ensure consistency, to make effective use of time, to support managers, or to support departmental functions. In developing their knowledge and understanding of the purpose of providing business and administration support, learners will investigate office systems and equipment, including diary management, telephone systems and a range of other office equipment.

Learners will also develop their skills in organising and providing administrative support for meetings, for example arranging the time, date and location of a meeting, taking and distributing minutes. They will also learn how to manage external meeting arrangements, such as travel and accommodation arrangements.

Learners will also learn the procedures used to process, retrieve and archive information, including different types of filing systems and associated issues such as confidentiality.

Learning outcomes


1 Understand the purpose of providing business and administration support

2 Know how to operate office systems and equipment

3 Be able to organise and provide administrative support for meetings

4 Be able to demonstrate the procedures needed to process, retrieve and archive information.


53


Unit content

1 Understand the purpose of providing business and administration support

Purpose: eg to ensure consistency, to make effective use of time, to support managers, to support departmental functions

Types of support: eg supporting meetings, producing documents, arranging events/travel/accommodation, managing diaries, handling data, processing expenses

2 Know how to operate office systems and equipment

Diary systems: type eg paper, electronic; purpose; planning and co-ordinating activities and resources; recording information eg purpose of entry, people involved, start/finish time, date, location; communicating diary information; currency of information; changes to entries; implications of changes/new entries; prioritising diary entries; negotiating alternative arrangements; problems; security and confidentiality

Telephone systems: features eg call back, messaging, fax, conference calls; making/receiving calls; message systems; telephone technique; using features appropriately; communication skills

Electronic communication systems: communicating effectively using email eg email etiquette; using functions correctly and appropriately eg reply, forward, copy, sending attachments; other features of email software eg contacts lists, folders; risks eg viruses, mail from unknown senders, opening unrecognised attachments, security of information transmitted

Office equipment: types eg photocopier, binding, laminating; features and functions; instruction manuals; training in usage; economic and efficient use; problem solving; ensuring outcomes meet appropriate requirements or standards; working to appropriate timescales or deadlines

3 Be able to organise and provide administrative support for meetings

Organisation: type of meeting; main features; meeting brief; venue; equipment; catering requirements; agenda; meeting papers; spare copies; delegates/delegate list; confirmation of attendance; meeting delegate needs; collating/dispatching papers; working within agreed timescales; layout of room; appropriate equipment; special requirements

Internal meeting support: documentation for delegates; attendance list; information and support needed; minutes or record of meeting; approval of minutes or record; amendments; circulation

External meeting support: eg diary management, travel arrangements, accommodation, expenses


54


4 Be able to demonstrate the procedures needed to process, retrieve and archive information

Process: information required; procedures; security and confidentiality; legislation issues; storage of information; approved locations; updating

Retrieve: confirming/identifying information for retrieval; procedures for locating/retrieving information; accuracy; accessing information system; legislation issues; problems; format for providing information; agreed timescales

Archive: confirming/identifying information for archiving; procedures for archiving information; accuracy; legislation issues; agreed timescales; records; retrieval from archive


55

UN

IT 6

: PR

OV

IDIN

G B

USI

NES

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ISTR

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ON

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PPO

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gri

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rder

to p

ass t

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nit,

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evid

ence

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the

lear

ner p

rese

nts f

or a

sses

smen

t nee

ds to

dem

onst

rate

that

they

can

mee

t all

of th

e le

arni

ng o

utco

mes

for t

he u

nit.

The

crite

ria fo

r a p

ass g

rade

des

crib

e th

e le

vel o

f ach

ieve

men

t req

uire

d to

pas

s thi

s uni

t.

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cri

teri

a

To

achi

eve

a pa

ss g

rade

the

evid

ence

mus

t sho

w

that

the

lear

ner

is a

ble

to:

To

achi

eve

a m

erit

grad

e th

e ev

iden

ce m

ust s

how

th

at, i

n ad

ditio

n to

the

pass

cri

teri

a, th

e le

arne

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:

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ade

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t sh

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at, i

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pass

and

mer

it cr

iteri

a, th

e le

arne

r is

abl

e to

:

P1

desc

ribe

the

purp

ose

and

type

s of b

usin

ess

and

adm

inis

tratio

n su

ppor

t

P2

oper

ate

a di

ary

syst

em to

supp

ort b

usin

ess

purp

oses

P3

dem

onst

rate

app

ropr

iate

tele

phon

e te

chni

ques

usi

ng th

e fe

atur

es o

f a te

leph

one

syst

em

P4

desc

ribe

the

use

of o

ffic

e eq

uipm

ent t

o m

eet

diff

eren

t bus

ines

s req

uire

men

ts

P5

orga

nise

a m

eetin

g an

d pr

ovid

e ad

min

istra

tive

supp

ort

P6

desc

ribe

the

proc

edur

es n

eede

d to

pro

cess

, re

triev

e an

d ar

chiv

e in

form

atio

n.

M1

co

mpa

re a

nd c

ontra

st p

aper

and

ele

ctro

nic

diar

y sy

stem

s

M2

ex

plai

n th

e ap

prop

riate

use

of o

ffic

e eq

uipm

ent t

ypes

, fea

ture

s and

func

tions

to

suit

diff

eren

t bus

ines

s pur

pose

s

M3

ex

plai

n th

e or

gani

satio

n an

d ad

min

istra

tive

supp

ort p

rovi

ded

for m

eetin

gs.

D1

an

alys

e th

e co

ntrib

utio

n th

at o

ffic

e sy

stem

s an

d eq

uipm

ent m

ake

to th

e pr

ovis

ion

of

busi

ness

and

adm

inis

tratio

n su

ppor

t

D2

an

alys

e th

e or

gani

satio

n an

d ad

min

istra

tive

supp

ort p

rovi

ded

for a

mee

ting

and

reco

mm

end

any

impr

ovem

ents

that

cou

ld

have

bee

n m

ade.

Gui

danc

e to

supp

ort t

he a

sses

smen

t of t

his u

nit i

s ava

ilabl

e on

pag

e 59

.

BF0

1725

9 –

Spec

ifica

tion

– E

dexc

el L

evel

2 B

TEC

Firs

t Cer

tific

ate

and

BTE

C F

irst D

iplo

ma

in B

usin

ess

– Is

sue

1 –

Janu

ary

2006

56



Delivery

The primary format for this unit should be practical delivery, providing learners with opportunities for experiential learning wherever possible. However, tutors need to provide a platform of knowledge enabling learners to understand the purpose of providing business and administration support. Learners can work in discussion groups to focus on the key points of the purpose of providing business and administration support — eg to ensure consistency, to make effective use of time, to support managers, to support departmental functions — although they should not be afraid to go beyond the content and should focus on the needs of organisations in their area. Groups may benefit from being allocated to a local business that learners may have visited for another unit, in order to highlight the business and administration support needs for that organisation. Subgroups can then compare their findings as a whole group and discuss the differences.

Learners also need to explore the types of support that organisations need. Discussion groups could be asked to focus on the same business they used to discuss the purpose of providing business and administration support or to encourage wider thinking could be asked to base their discussions on an organisation previously used by another group.

It is important for learners to gain experience in diary management. Case study materials may be useful as an introduction, supported by in-tray exercises that enable learners to process, amend and cancel diary entries. They also need to understand the importance of communication in connection with diary management. Role plays based on variations to the in-tray exercises will provide a higher sense of reality and ensure that diary management is communicated to and from the diary owner. Learners will also benefit from exposure to both electronic and paper-based systems. They should have the opportunity to explore the wider facilities offered by electronic systems, linking diary management with organising and providing administrative support for meetings.

Learners will need to develop their understanding of telephone systems and the role employees have in making calls and receiving calls. A number of different skills are involved, many of which are transferable across other units, including:

• questioning and listening skills

• research skills to find information

• communication skills

• presentation

• summarising information

• using technology

• problem solving.

When making calls, learners will need to establish the purpose of the call, obtain the name and numbers of the person to be contacted, make contact, communicate the information required to achieve the purpose of the call and summarise the outcomes of the conversation before ending the call. The procedure for receiving calls has strong similarities that learners should be encouraged to identify. Learners need to understand the importance of answering the phone in a way that reflects organisational procedures (these will differ across organisations and tutors


57


should ensure that appropriate examples are provided). Procedures should include identifying the caller (including where they are calling from and what they need), providing accurate and up-to-date information, transferring calls where requested, and taking/relaying messages according to the caller’s needs.

Throughout both processes, learners need to be aware of the importance of projecting a positive image, both for themselves and for the organisation they are to represent. Learners should demonstrate this approach when they are practising and developing their call handling skills. Learners also need to be clear about issues such as security and confidentiality.

The final element of telephone systems that learners need to master is the voicemail message component. Keeping the message system up-to-date, checking for callers’ messages, responding within agreed timescales, deleting messages that have been dealt with and leaving messages on other people’s systems are all functions in which learners must develop skills and understanding.

Telephone systems dovetail frequently with diary management and learners must develop skills in recognising the interchanges between the two. To complete the operational side of office administration, learners will also need to explore a range of office equipment and understand how this contributes to the smooth running of the office environment. There are endless different types of equipment, which is why only an exemplar range is mentioned in this unit. Standard equipment such as photocopiers and ICT equipment will be supplemented by more specialised equipment such as scanners and binders. Learner will need to be introduced to the types of equipment and resource faults they are likely to experience and how these should be dealt with.

The unit addresses a range of issues relating to internal meeting organisation and support. This should relate to any meetings where the learner would be involved in supporting a line manager in running meetings to which delegates have been invited, such as preparing agendas, taking minutes and so on. The later section on external meeting support is based on the presumption that the line manager is in fact a delegate at someone else’s meeting and therefore would have a different range of support needs, such as making accommodation or travel arrangements.

Learners will benefit from some initial input on internal meeting organisation and administration. Some case study materials may be useful to highlight key points or issues that learners need to be aware of. Practical experience will be the most effective way of developing learners’ skills, although tutors should be conscious of the time demands of a large group. The following activities may be useful for learners to work through, possibly in pairs or small groups:

Preparation

• Read minutes and agenda of previous meeting (if appropriate and available) and meet with chair to negotiate the agenda.

• Finalise the agenda, collate the agenda papers and reports and distribute the agenda papers.

• Research, analyse and ensure an understanding of content of papers.

• Consider how delegates might respond to different agenda items.

Meeting

• Prepare documents prior to the meeting.

• Check the room is fully prepared.

• Meet with the chair before the meeting to discuss issues.

• Take the attendance list.

• Listen to discussions and make notes.


58


• Ensure the chair signs the minutes.

• Write an action list for delegates and for self.

• Collect up confidential items which may have been distributed at the meeting.

• Leave at an appropriate time having clarified details including date of next meeting (if appropriate).

Post meeting

• Write the draft minutes and distribute them in accordance with instructions.

• Take follow-up actions as appropriate.

• Amend the meeting records as appropriate.

To complete this unit, learners need to develop their knowledge, skills and understanding of filing systems and the procedures needed to process, retrieve and archive information. Some theoretical input will set the scene, for example explaining the operation of chronological, alphabetical and numerical systems, as well as comparing and contrasting manual and electronic systems. Learners must have opportunities to operate the procedures involved and suitable in-tray exercises and role plays should be used. When learners are sufficiently experienced, tutors can embed a range of practical exercises, such as diary management, telephone operations, filing procedures and others.

Assessment

Learners will be expected to produce evidence that shows their knowledge and understanding of how business and administration support is provided. It may include:

• a presentation or report demonstrating learners’ understanding of the purpose of providing business and administration support

• records of learners operating office systems and equipment (supported by witness testimony statements where appropriate)

• records of learners organising and providing administrative support for meetings

• records of learners demonstrating the procedures needed to process, retrieve and archive information.

To meet the pass criteria, learners should draw on their knowledge of businesses gained through visits and case studies to develop their description of the purposes and types of business and administration support. Evidence should show a clear link between the purpose of support and the type of support being delivered. Learners should present at least two examples that are sufficiently different to show a recognisable contrast.

Learner evidence should include records of them operating a diary system. This can be assessed by the tutor requesting various meetings and other arrangements to be recorded using a suitable diary system of the learner’s own choice. This will provide the tutor with the advantage of making an assessment decision using paper evidence that reflects a standard set of meetings and appointments.

Learners need to demonstrate telephone techniques. This can be either through simulation, role play or other integrated exercises, or from other sources such as other units, part-time work or work experience, which should be supported with witness testimony statements. Tutors should also discuss with colleagues opportunities to integrate the development of evidence for Unit 4: Business Communication, particularly where oral instruction, written communications and other communication skills can be demonstrated in a telephone technique scenario to avoid unnecessary repetition.


59


Learners also need to present their own evidence relating to the organisation of a meeting and the provision of administrative support. Tutors will not be able to observe all learner activities so it is important that learners are clear about how to present their evidence. A checklist based on the guidance in the Delivery Strategies section above would be helpful to ensure that key points are addressed. Much of learners’ evidence will be generated through the documentation they prepare, such as agenda and meeting minutes. Learners should also gather appropriate witness testimonies and/or tutor observation records to supplement the evidence they have generated for themselves.

For the final pass criterion, learners need to demonstrate the procedures needed to process, retrieve and archive information. This will be heavily dependent on tutors providing an appropriate range of resources linked to in-tray exercises. Whilst it is important for learners to understand how manual filing systems work, they should also aim to provide evidence of how these procedures are applied in an electronic environment, again emphasising the need for adequate resources and exercises.

To meet the merit criteria, learners need to compare and contrast paper and electronic diary systems and explain the appropriate use of office equipment. They can draw on the diary evidence they have developed for the pass criteria (whether paper or electronic) and use this to compare and contrast against the alternative, should this have been applied to the same circumstances. For office equipment, much will depend on the capacity of the equipment they were using. If this were advanced equipment, learners can explain how the facilities suited the purposes they were required to meet. If equipment facilities were limited, learners could explain what additional facilities they could have used had these been available. Both will demonstrate appropriate knowledge of modern equipment regardless of whether or not it was available for learners to use in practical circumstances.

For the third merit criterion, learners need to explain the organisation and administrative support needed for meetings. Tutors and learners should be conscious of the practical activity completed for the pass criterion. This may have been relatively simple and learners should provide evidence here that addresses a range of organisational and administrative support functions that they may not have had the capacity to demonstrate in reality.

To meet the distinction criteria, learners need to provide evidence of their depth of knowledge and understanding. They should carefully consider scenarios that they have experienced that will support them in their development of evidence and should consult with their tutors to ensure they have an appropriate platform on which to base their work.


This unit has links with Unit 1: Exploring Business Purposes and with Unit 4: Business Communication, where administrative effectiveness clearly depends on effective communication skills.

There are also strong links with units in the Level 2 NVQ in Business and Administration including:

• Unit 204: Manage diary systems

• Unit 205: Organise business travel and accommodation

• Unit 206: Deal with visitors

• Unit 219: Use a telephone system

• Unit 220: Operate office equipment.


60


This unit provides opportunities to gain key skills in communication, information and communication technology, improving own learning and performance, problem solving and working with others.

Essential resources

Learners should have access to library and internet facilities to support their research. Learners should be encouraged to use a range of sources of information, including reports and trade press articles.





Websites change continuously, the following website is only indicative of the type of material that is available. This unit may be useful in the delivery of this unit.

www.cfa.uk.com The Council for Administration (CfA) — the National Sector Setting Body for Business and Administration. It is responsible for defining and promoting excellence in business and administration skills and practice across all industry sectors


61

http://www.cfa.co.uk/


Key skills




• discussing the purpose and types of business and administration support


• delivering a presentation on the purpose and types of business and administration support.




ICT2.1 Search for and select information to meet your needs.



• organising a meeting and providing administrative support.






• developing and demonstrating skills in operating diary, telephone and filing systems and office equipment.



62




• dealing with problems arising from the organisation of a meeting or the provision of administrative support.








• working as part of a team when developing and demonstrating skills in operating diary, telephone and filing systems and office equipment. WO2.3 Review your contributions and agree ways to

improve work with others.


63



64

UNIT 7: PERSONAL SELLING

Unit 7: Personal Selling



Unit abstract

Every business has a purpose and that purpose frequently relates directly to the business’s customers. Many businesses survive quite happily without engaging formal sales staff and customers buy its products and/or services quite naturally. Active selling is not a priority in many cases but still this happens. The small business owner with a single retail outlet is unlikely to miss the opportunity of telling his or her customers about a new product that is available or a service that can now be provided. With a little effort, this can be turned into a sale. For larger organisations, the picture is different. Active selling can be much more critical and therefore demands greater attention. Whichever the case, personal selling is the process that engages businesses directly with their existing and potential customers. The personal selling process is becoming increasingly important with the rise in customer demand and expectations in our modern society.

Businesses have always relied on people to personally sell goods and services. In fact, personal selling has helped us achieve the standard of living we enjoy today and it plays an increasingly significant role in our expanding economy.

This unit develops learners’ understanding of the role and importance of personal selling activities for customers, employees and businesses. Learners will develop their knowledge and understanding of sales staff and how they go about the business of personal selling. They will learn how to prepare for selling and develop their personal selling skills. They will also learn about the legislation that affects personal selling.

Closing sales is a skill often overlooked. Learners will develop their understanding of the techniques and processes involved, including ways of responding to objections. Finally, they will learn how to follow up sales and record valuable information about their customers.

Learning outcomes


1 Understand the purpose of sales personnel

2 Know how to prepare for personal selling

3 Be able to demonstrate personal selling skills and processes

4 Understand closing sales techniques and how to identifying customers’ objections.


65


Unit content

1 Understand the purpose of sales personnel

Purpose of sales personnel: increasing business sales; helping businesses to remain competitive; providing information and services to customers; developing customer care; gathering feedback; benefits eg to the organisation, to employees, to customers

Knowledge and skills: knowing the product; motivation to sell; ability to close sales; keeping up to date; good sales habits; promoting good selling techniques; motivating sales people eg through commissions and bonuses based on sales targets, sales incentives, career development

Legislation affecting personal selling: eg

• Consumer Credit Act 1987

• Consumer Protection Act 1987

• Sales of Goods Act 1979 and 1995

• Supply of Goods and Service Act 1982

• Trade Description Act 1967

2 Know how to prepare for personal selling

Identifying and finding potential customers: eg by cold calling, face-to-face, drop in visits, telemarketing

Preparation: identifying potential customer’s profile eg buying habits, needs, reasons for buying, income and revenue level; product knowledge; clarifying pricing issues eg discounting, special offers; methods of approaching potential customers; objectives to achieve during a sales call; preparation of the physical environment

3 Be able to demonstrate personal selling skills and processes

Personal selling skills: communicating with customer; types and purpose of communication; making a good impression eg dressing appropriately, positive attitude, good manners, professional, courteous and considerate sales person; personal space; maintaining eye contact; treating customers with respect and consideration.

Personal selling processes: greeting and introduction; attracting customers’ attention and interest; identifying and meeting/exceeding customers’ needs; presenting products/product information; product display; description of the product; product options and availability; associated service


66


4 Understand how to identifying customers’ objections and closing sales techniques

Responding to objections: eg price, timing, competition; overcoming objections

Closing sales: persuading customers to buy the product; trial close; closing techniques eg direct close, silent close, alternative close, presumptive close

Following up sales: eg product delivery; customer satisfaction and feedback; follow up call; handling complaints; customer care; repeat sales; up-selling and further sales

Recording customer information: customer information; customer history; customer needs; customer motivation; methods of recording eg in an organised and concise manner, using ranking systems


67

UN

IT 7

: PER

SON

AL

SELL

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and

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:

P1

desc

ribe

the

purp

ose

of sa

les p

erso

nnel

and

th

e kn

owle

dge

and

skill

s req

uire

d fo

r pe

rson

al se

lling

P2

desc

ribe

the

legi

slat

ion

whi

ch a

ffec

ts

pers

onal

selli

ng

P3

desc

ribe

the

prep

arat

ion

need

ed to

supp

ort

pers

onal

selli

ng in

two

diff

eren

t situ

atio

ns

P4

dem

onst

rate

per

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l sel

ling

skill

s and

pr

oces

ses i

n tw

o di

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ent s

ituat

ions

P5

dem

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rate

the

proc

ess o

f clo

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s in

two

diff

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P6

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68



Delivery

This unit is essentially practically orientated, although tutors should be aware that it will also need formal input at various stages. Learners should be encouraged to recognise the importance and benefits of the sales function for businesses, employees and consumers. For business organisations, personal selling helps them to achieve their objectives eg increasing sales and attracting more customers. For employees, personal selling empowers and motivates them to work hard to gain the benefits in terms of financial and non-financial rewards. It also helps employees to understand more about customers’ existing and potential needs and how to fulfil them. For customers, personal selling helps to provide them with the products (the goods or services) that they want or need.

Learners need to appreciate how personal selling has helped achieve the standard of living we enjoy today, as products such as computers, microwaves and cars might never have taken off without the power of personal selling. Some businesses, such as legal and accounting firms, may not employ a separate sales force, but that does not mean personal selling is not necessary. The professionals who provide the services have to sell to prospective customers the idea of retaining their firm. Learners need to realise the importance of the knowledge and skills needed to support personal selling. They may have already been involved in the business of personal selling as a customer, perhaps through buying a piece of audio or sports equipment. Discussion groups can capitalise on such experiences to focus on the purpose of sales personnel and the kind of knowledge and skills they need to have in order to deliver an effective service. Case study materials can also be used to highlight specific issues.

Learners need to be aware of the legislation that affects personal selling. A range of legislation is suggested in the content but this is not exhaustive or comprehensive. Tutors should consider the profile of the learner group and select an appropriate range of legislation to ensure that an effective knowledge base is developed. Other statutory legislation might be considered depending on the selling situation eg Weights and Measures Act 1987. Tutors must also be aware that learners are not expected to have in-depth knowledge of such legislation. Rather, they should understand the overarching principles and how such legislation affects the business of personal selling. Delivery should reflect the Level 2 nature of this unit and its host qualification.

Learners need to develop their knowledge and understanding of how to prepare for personal selling. They should relate back to the discussion groups and case study materials to recognise how potential customers are identified and how this leads through to the preparation stages. Case studies can be used to present appropriate scenarios enabling learners to follow this process through. Adapted case studies can then be used to introduce simulations and role plays, providing learners with core information which then requires them to apply their growing knowledge to the steps needed to prepare for personal selling. Tutors should be clear about the level of realism expected during role plays. Communication skills should always be paramount but initially learners may not be expected to dress for the occasion, although this will become more important as the complexity of role plays develops and learners improve their skills. Learners should also appreciate and understand opening lines for customers, for example by greeting and welcoming them to the store/shop, followed by a few carefully chosen words that get the customer’s attention and generate interest. Sales people also need to learn how to communicate with customers in verbal and non-verbal manners which enable them to present and display and describe their goods or service.


69


Pre-sales preparation includes significantly detailed knowledge of products or services along with knowledge of likely buyer behaviour, especially in the case of commercially trained buyers representing business customers. Examples of promotions can be found in trade journals or business-related magazines, as illustrated by retailers such as Office World, Staples and IKEA which compete in the business market, as well as the consumer market, for office furniture and stationery. Preparation of the physical sales environment is also a key aspect, for example in many retail environments. Learners may not be able to replicate the full sophistication of the retail world but they can nonetheless improvise on available facilities with a degree of imagination. Role play may be used for the preparation of the selling process which includes full knowledge of the product, preparation of the sales physical environment which includes accessibility eg for disabled people, furnishings, physical décor, use of music, health and safety hazards, implications of market competition and likely impact upon buyer behaviour.

Learners should also appreciate that the amount of time and resources a salesperson invests in pre-sales preparation is determined in large by the nature of the business and its marketing and sales objectives. The time investment can often be proportionate to the value of the anticipated sale, for example a new car or house purchase would deserve considerably greater time investment than a washing machine or a pair of new trainers. When a salesperson is knowledgeable about the prospect and well prepared for a sales process, they will greatly improve chances of the business achieving its objectives.

Visits to supportive employers to observe preparation for personal selling in action would be useful, but would need to be managed carefully, dividing learners into pairs or very small groups to avoid any unwelcome exposure for the business. Visiting speakers can also deliver useful presentations relating to this area of content.

Returning to the discussion groups and case study materials introduced earlier, learners can begin developing the skills and processes that support and deliver personal selling, initially through discussion and sharing of experiences through the customer’s eyes, leading to identification of what skills and processes were involved in a particular situation. Tutors can then introduce simulations and role play scenarios to enable learners to acquire and practice the skills and processes on which this section of content is based. Learners should also appreciate how the presentation step in the selling process is the most crucial. Although it can take many forms, the presentation’s purpose is always the same — to personally communicate a product message in such a way that it will convince a potential customer to buy. For more complex selling situations, an effective presentation should include a detailed description of the product, available options, associated services (such as delivery, installation, maintenance and warranty) and an explanation of how the product will benefit the customer or how it has benefited other customers.

Simulations and role plays should reflect the interests and requirements of the learner group but should also address situations that they may not experience naturally. For example, learners may experience call centres handling sales for a mail order catalogue as a customer, but it is important for them to appreciate the significantly different approach to personal selling as an operator, even if learners themselves are unlikely to pursue this direction in their future careers. Once again, visits to supportive businesses under carefully controlled conditions will enable learners to observe personal selling in action. Tutors should also select appropriate video resource materials to illustrate various points that learners may not otherwise experience.

One aspect of sales techniques that learners may be unaware of is that of closing sales and handling objections. Input from the tutor will clarify where this has happened during their experiences as a customer. Learners should appreciate the importance of closing sales, as it is the stage in the selling process at which the salesperson gets a purchase commitment from the buyer. Closing sales techniques such as silent close, direct close and alternative close, and also responses to customer objections could also be approached through role play complemented by


70


learners’ own experiences as consumers. Again, case study materials can illustrate how and where different closing techniques can be used and how objections should be handled. Role plays and simulations will again enable learners to acquire and practice the skills they would need to successfully complete a sale.

Learners should also understand that most sales people depend on repeat sales, so it is important that they follow up on all sales and do not ignore the customers once the first sale is made. During this follow up stage of the selling process, learners need to understand the importance of making sure that the product has been delivered properly and the customer is satisfied. Learners should also recognise how inexperienced sales people may avoid the follow up stage because they fear facing an unhappy customer.

Opportunities for building a continuing relationship with regular customers could be explored, along with the risks of alienating unhappy customers who may spread bad publicity. Television consumer ‘watchdog’ programmes and material produced by the Consumers’ Association may be useful along with websites drawing attention to poor quality of business service.

Learners must also develop their knowledge and understanding of the importance of following up sales and recording information, particularly in relation to how this can be used to support and develop the business. Identifying customer history, for example, will help to target repeat customers and make the business of personal selling more effective. Learners should explore various mechanisms of recording and managing such information.

Assessment

Learners will be expected to produce evidence that shows their knowledge and understanding of personal selling. It may include:

• a presentation or account of the purpose of sales personnel

• records of how learners have responded to customers’ needs in a selling personal situation

• records of how they closed sales and responded to customer’s objections

• records of their approach to their work.

Evidence for this unit may be gathered from discussions, visits to commercial organisations, role plays and other practical experience, including a work placement or evidence from a part- or full-time job. Case studies may be useful, particularly to identify aspects of personal selling techniques and how to respond to customers objections.

To achieve a pass, learners need to provide a description of the purpose of sales personnel, the knowledge and skills required for personal selling and the legislation that impacts on personal selling. Learners should draw on examples from case studies, visits they have made to local businesses or personal/work experience to illustrate their work. Learners should present practical evidence wherever possible, supported by written or verbal descriptions. This can be achieved through case studies, simulations or real work experience gained through part-time work or a period of work experience. Role plays and simulations should be carefully constructed where real work situations are not available.

To meet the merit criteria, tutors should use their professional judgement to assess the level of independence a learner has achieved in personal selling situations. The criteria require learners to demonstrate an independent approach to a major part of their work. This makes provision for some weaknesses in some areas. For example, learners may be effective at preparing for selling and demonstrating personal selling skills and processes, but not as successful when closing sales.


71


When comparing and contrasting the personal selling skills and processes used in two different situations, and explaining how legislation might affect personal selling in two different situations, learners can make use of real work experience, role plays or simulations if these will provide appropriate supporting evidence. Where this cannot be achieved, learners can base their evidence on other sources, such as case study materials, videos, or their own observations of the personal selling process in action.

To achieve a distinction, learners must demonstrate excellent and confident personal selling covering a range of different situations. In this instance, the level of excellence and confidence must be comprehensive and cover all practical aspects. Weaknesses in one area, such as preparation or closing, will prevent the learner from achieving the distinction criteria. The learner must also demonstrate these abilities in a range of different situations. At least three different situations should be covered and should show an acceptable level of contrast. A different customer in a similar selling situation would not be acceptable. However, if one represented a straightforward sale and one was a difficult customer that would be acceptable. However, the third situation should be in marked contrast, for example a call centre sale compared to a shop floor sale. Selling in a different environment would also be acceptable, for example, selling hotel accommodation in contrast to selling sports equipment in a retail outlet.

The learner must also evaluate the preparation to support personal selling and the personal selling skills and processes carried out in two different situations. Learners can base this evaluation on real work experience, role plays or simulations if these will provide appropriate supporting evidence. Where this cannot be achieved, learners can base their evidence on other sources, such as case study materials, videos, or their own observations of the personal selling process in action.


This unit has links with:

Unit 1: Exploring Business Purposes •

•

•

•

•

•

•

•

•

•

•

Unit 2: Developing Customer Relations

Unit 4: Business Communication

Unit 8: Doing Business Online

Unit 9: Exploring Business Enterprise

Unit 10: Starting a Small Business.

This unit also has links with the following units in the Level 2 NVQ in Customer Service:

Unit 1: Give customers positive impression of yourself and your organisation

Unit 2: Deliver reliable customer service

Unit 3: Develop customer relationships

Unit 6: Develop personal performance through delivering customer service

Unit 7: Promote additional products or services to customers.

This unit provides opportunities to gain key skills in communication, application of number, information and communication technology, improving own learning and performance, problem solving and working with others.


72


Essential resources

Case study materials linked to the preparation, delivery and closure of personal selling are essential. Some should be selected or developed to illustrate the whole sequence (tackled in stages to avoid overwhelming learners) while others should be developed to a certain stage, allowing learners then to take over and identify the on-going process or explore different potential outcomes.

Tutors must negotiate carefully with employers who are willing to support learners visiting their premises to observe personal selling in action. Employers need to be carefully briefed about what would be involved and the potential impact on their business. This in turn would require employers to brief their staff to avoid any misunderstandings on the shop floor. Agreement should also be reached about implications for customers and how such visits are best handled.



Fardon M, Nuttall C and Prokopiw J — GCSE Applied Business (Osborne Books, 2002) ISBN 1872962327

Wall J and Wales N — Nuffield — BP Business and Economics for GCSE, Second Edition (Collins, 2001) ISBN 000711639X


73


Key skills




• gathering and analysing data from sales and presenting results.



a amounts and sizes

b scales and proportion


d using formulae.




• considering issues surrounding their experiences of sales


• delivering a presentation of the purpose of sales personnel and the knowledge and skills they need


• reading staff handbooks relating to personal selling skills and processes


• preparing a summary of the purpose of sales personnel and the knowledge and skills they need.




74







• gathering and analysing data from sales and presenting results.






• acquiring and practicing personal selling skills and demonstrating personal selling processes.




• dealing with difficult customers or personal selling situations.





75






• working as part of a team on the design and execution of a sales promotion.

WO2.3 Review your contributions and agree ways to improve work with others.


76

UNIT 8: DOING BUSINESS ONLINE

Unit 8: Doing Business Online



Unit abstract

More and more businesses are working towards or achieving an online business presence, making the most of rapidly developing technology and the opportunities it offers. However, doing business online is not appropriate for all businesses and owner/managers need to carefully consider a wide range of issues and implications before deciding whether an online presence is right for their business.

Small online businesses using a single website can reach the same global market as a much larger business with a more complex web presence. The cost of marketing and advertising is greatly reduced and there is no need for expensive retail outlets in prime locations. The business is available to customers around the clock every day of the year. Online business is particularly attractive to small, specialised businesses that might otherwise have difficulty reaching a specialised but global market.

The market is growing, with the increasing ownership of personal computers and the growing number of internet users particularly using broadband connections. Many businesses routinely quote a web address for customer ordering and businesses using television as a marketing medium use the internet as a major vehicle for customer purchases. Online business has a particular attraction for those who cannot easily travel to a conventional retail outlet because of problems of mobility or isolation.

There are problems with online business. Setting up such a business requires a great deal of expertise, although specialised software is making this easier. The website has to be constantly maintained and updated. Having received orders there is a considerable distribution problem to be faced together with the means of accepting payments. If there is to be a global presence, language is a problem that has to be overcome.

Learners will be introduced to some of the types of online business activity, ranging from websites as merely ‘passive brochure ware’ to those offering interactive product customisation and online buying. The benefits of an online presence are explored along with potential difficulties so that learners may consider the extent to which an online presence would be likely to assist the achievement of business aims and objectives. The feasibility of implementing an online presence as a feature of business strategy is also considered.

Learning outcomes


1 Understand different online business activities

2 Know the benefits of an online business presence

3 Understand the operation of an online business

4 Understand the business feasibility of going online.


77


Unit content

1 Understand different online business activities

Range: eg direct online selling of goods; direct online selling of services; government services; information; internet services; advertising and marketing; education

Sector: eg public; private; voluntary/not-for-profit sector

Levels/types of online presence: passive brochure ware; complementing offline services eg mail order; inviting online transactions; offering interactive customisation eg digital image processing; providing information only

2 Understand the business feasibility of going online

Planning issues: suitability of the business for an online operation; choice of domain name(s); set-up issues eg in-house or outsourced; availability of resources to cope with potentially global demand; availability of skills available to run an online business

Implementation issues: potential difficulties of online implementation; availability of technical and design skills; requirement for customisation; desired extent of online operations eg passive, partially and fully interactive; changing user specifications for desired service levels; relationship with partners eg financial services, distribution and delivery services

3 Understand the operation of an online business

Operation issues: payment security; unfamiliar trading conditions; errors in ordering; potential use of personal information; vulnerability to hostile attack eg denial of service, hijacking the website, financial fraud

Operational risks: web-site updating; liability for wrong or out-of-date information; language problems with global customer base; hardware and software failures; loss of data; global business regulations eg labelling, health and safety

Staffing issues: eg potential outsourcing of key functions; use of call centres; lack of personal contact with customers; unfamiliarity with technology; breakdowns in service

Financial issues: eg initial investment costs of hardware, software and program adaptation; set-up expenses offset against uncertain future revenue streams; ability to cope with massively increased market interest; tax liabilities for international transactions

Distribution issues: eg scale of the business eg global distribution; cost of distribution of physical goods; special requirements for fragile goods; ease of distribution of services eg online insurance quotations, booking flights and hotel rooms


78


4 Know the benefits of an online business presence

Market presence: global presence; 24-hour visibility; equality of presence between small, medium and large businesses; rapidity of response to customer interest; opportunities to analyse online competition and to keep up with competitors

Marketing benefits: the ability to collect market research information from online enquiries; access to new markets eg remote locations, customers with travel difficulties, poor transport links, customers with disabilities; access from a wide range of devices eg computers, mobile phones

Level of response: offering delivery-to-door as a sales feature; access from a wide range of devices; access out of normal business hours; access from around the world; rapid response to orders and enquiries; online order tracking; reduced stockholding

Financial advantages: improved cash flow through fewer bad debts; freedom of low-cost location; use of low-cost labour; low overheads; rapid payment; no expensive cash handling; ease of entry


79

UN

IT 8

: DO

ING

BU

SIN

ESS

ON

LIN

E

Gra

ding

gri

d

In o

rder

to p

ass t

his u

nit,

the

evid

ence

that

the

lear

ner p

rese

nts f

or a

sses

smen

t nee

ds to

dem

onst

rate

that

they

can

mee

t all

of th

e le

arni

ng o

utco

mes

for t

he u

nit.

The

crite

ria fo

r a p

ass g

rade

des

crib

e th

e le

vel o

f ach

ieve

men

t req

uire

d to

pas

s thi

s uni

t.

Gra

ding

cri

teri

a

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BF0

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Delivery

This area of business activity is still relatively new to certain sections of the business world but learners might already be involved in using online business operations. This unit will introduce learners to a wide range of online business activities, ranging from passive information-only websites to fully interactive digital businesses. Opportunities should be taken whenever possible to compare online businesses with conventional offline ones.

Tutors should feel free to use their judgement when delivering the unit. However, despite learners’ urges to tackle this unit entirely through internet research, tutors must ensure that appropriate theory is delivered for different sections of the content.

The world of online business is constantly changing and tutors must be aware of the latest developments in business and technology if learners are to receive the maximum benefit from this unit. Online business should be interpreted in its widest sense to include not only computer-based business but business accessed by mobile phones with which learners may be more familiar.

Learners should be encouraged to explore a wide range of online business activities. The range should include direct online selling of goods eg books, DVDs, household equipment; direct online selling of services; eg travel, accommodation, banking and financial services; government services eg information and online forms; information eg news, weather; internet services eg search engines; advertising and marketing; and education eg online courses. Learners need a broad understanding of the range rather than an in-depth knowledge of them all. The learner group could usefully agree to divide into smaller groups, each investigating a specific area of online business activities. Subgroups can then re-convene to pool and compare their findings. Tutors should ensure that the focus of subgroups covers the different sectors specified, as well as the type of business being operated. Groups should also be encouraged to find contrasts in the levels and types of online presence. The features of an online presence could be explored through learners accessing suitable websites to obtain information or order catalogues and brochures. Groups of learners can discuss their own experiences of online buying. Speakers from businesses who have implemented an online presence would be especially useful. Disadvantages of an online presence must also be explored to avoid learners having a one-sided view that online business is always better. If the school or college has its own website it could be used for illustrative purposes and learners could evaluate its advantages and its ease of use. A talk from the webmaster would be an additional advantage. Case studies and simulations can be used to study particular examples of online business activities.

Learners should then turn their attention to the planning and implementation issues that will inform the feasibility of a business going online. Support from the business community is particularly valuable for this aspect of content. Tutors should bear in mind that such businesses are not required to be local, although it would be wise to capitalise on local relationships where these have already been developed. Dividing the learner group into subgroups would offer benefits through exploring different opportunities or working towards a different focus. For example, one subgroup could research the issues from the perspective of a business that is planning to go online, whilst another could carry out similar research from the perspective of a business that has already successfully gone online recently, with a third investigating the issues from the perspective of a long-established online business. (Tutors could consider at this stage the value of learners’ findings to the local business communities.)


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The division and focus of subgroups for the second learning outcome can also be applied in a similar way to the operational issues and risks, staffing, financial and distribution issues that form the focus of the third learning outcome. Learners’ group investigations can be carried out as before, but it would be particularly useful to involve two visiting speakers where possible: firstly a specialist online advisor to ‘sell’ the idea; and second a current online business operator with first-hand and current experience. Tutors should select these speakers carefully in order to ensure a balanced delivery. The primary focus of this learning outcome is on the operational issues and risks, but tutors must also address an appropriate range of related staffing, financial and distribution issues.

The same subgroup strategy can be applied to the final learning outcome, although the emphasis here is likely to be on those already operating successful online businesses. Learners can research the market presence and marketing benefits from a number of businesses and, again, the tutor should take steps to ensure that the businesses selected offer a balanced picture of the range specified under the first learning outcome.

Both tutors and learners should be conscious of the medium on which they are focusing. Research will need to take place but this does not necessarily require face-to-face investigations (although this may he helpful where local businesses are involved, particularly where such businesses have supported delivery of other units). Learners should maximise opportunities for electronic interchange, although this should be carefully monitored by the tutor, who should also ensure that e-business operators are properly briefed about their involvement and the nature and level of support that will be expected of them.

Assessment

Learners will be expected to produce evidence that shows their knowledge and understanding of issues relating to doing business online. It may include:

• a presentation that demonstrates understanding of different online business activities and the benefits of an online business presence

• an account of the operation of an online business

• a report summarising the business feasibility of going online.

Evidence for assessments can be presented in a variety of ways; written reports, one-to-one presentations, an exhibition, production of a simple website or a presentation using an online computer to demonstrate online business, for example, depending on the resources available. The practical nature of the unit should always be borne in mind when deciding on assessment strategies. Learners should be encouraged to use printouts of web pages or actively use live websites if resources are available (rather than just include them), provided that they are selective in what they include in their evidence. Tutors should make it absolutely clear that there is no benefit to volume if selection is lacking. Tutors should be aware of the learning styles of the learners to avoid disadvantaging any particular learning style when deciding on an assessment strategy. Tutors should feel free to use whatever assessment methods they feel are appropriate for the learners using available time and resources. Any method, which can validly test whether the learning outcomes have been achieved and the grading criteria met, should be considered.

Pass grade learners will provide evidence which will be a straightforward description of the key features, advantages and disadvantages and implementation problems of online businesses with few, if any, examples. Learners must describe at least three different businesses. These differences should be clear. For example, one business might be an online retailer, another a service provider such as a travel agent, another an education provider. Much of the argument may be from textbooks or tutors’ notes. Learners should be encouraged to consult with tutors as a resource in order to complete their assignments.


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At merit level evidence will be illustrated with examples, wherever appropriate, and learners should consider comparisons with offline businesses. Learners will be able to present work in their own words with less reliance on textbooks and tutor notes, compared with pass grade learners. The merit criteria ask for evidence relating to ‘a business’. It would help the coherence of learners’ work if one business were tracked through all three merit criteria, although this is not essential.

In addition to satisfying the merit criteria, distinction level learners will be able to make independent judgements with less reliance on textbooks and the tutor notes to formulate their answers. They should be able to compare and contrast online and offline businesses. Evidence could again relate to the single business on which the merit criteria may be built. Recommendations should be based on an evaluation of planning and implementation issues for that business.


This unit has links with Unit 1: Exploring Business Purposes, Unit 7: Personal Selling, Unit 9: Exploring Business Enterprise and Unit 10: Starting a Small Business as online operations relate to sales and self-employment at a variety of levels.

This unit also provides opportunities to gain key skills in communication, information and communication technology and problem solving.

Essential resources

Tutors must ensure that all learners have access to the internet. They must also develop a bank of case study materials that link aspects of learning to internet sites, so learners can extend their research in an orderly fashion.

Tutors should also explore local businesses and establish a directory of internet addresses for local organisations. This will enable learners to carry out research both online and face-to-face with local owner/managers, to develop their understanding of the implications of online business.



Anderton A — GCSE Business Studies (Causeway Press, 1998) ISBN 1873929846

Cumming T — Little E, Big Business, How to Make a Profit Online (Virgin Books, 2001) ISBN 0753505428

Fardon M, Nuttall C and Prokopiw J — GCSE Applied Business (Osborne Books, 2002) ISBN 1872962327

Holden G — Starting an Online Business for Dummies (Hungry Minds, 2002) ISBN 0765416558

Wall J and Wales N — Nuffield — BP Business and Economics for GCSE, Second Edition (Collins, 2001) ISBN 000711639X


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Key skills






• discussing the potential benefits, disadvantages and feasibility of doing business online.






• applying skills to selection, derivation and presentation of researched information relating to doing business online.






• analysing problems a business online may be experiencing and identifying benefits, disadvantages and feasibility.



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UNIT 9: EXPLORING BUSINESS ENTERPRISE

Unit 9: Exploring Business Enterprise

NQF Level 2: BTEC Level 2


Unit abstract

Running their own business is the dream of most people at one time or another. Turning that dream into a successful business venture is a challenging task and one in which many will fail. However, with the right approach, success for small businesses can be hugely rewarding on both a personal and business basis, possibly leading to further business opportunities that arise from early efforts.

Many new businesses are started with little thought, either about the business itself or the process of preparing for business. Any small business operation will cost money to run and that money is at risk if proper steps are not taken to prepare properly for business. This unit takes learners through the stages of preparing for business, the different aspects that affect preparation and the knowledge, skills and understanding learners will need to start and run a business if they should ever choose and have the opportunity to do so.

The unit begins by helping learners to understand their own strengths and weaknesses, which will have a clear impact on both their ability to prepare for business and actually run the business itself. They will need to consider the contribution they can make to a business and what the benefits are.

Learners also need to develop their knowledge and understanding of different aspects that affect preparing for business. These include the implications of regulations and laws that impact on small businesses, the marketing and sales function and the critical importance of a range of financial issues.

Learners also need to explore the importance of a proper business plan, a component that is frequently missing, resulting in business failures. They need to consider separate issues to do with starting and running a business and also the extensive availability of advice and support.

Learners can study for either Unit 9: Exploring Business Enterprise or Unit 10: Starting a Small Business but not both.

Learning outcomes


1 Understand how to prepare for business

2 Know how different aspects affect preparation for business

3 Understand how to start and run a business.


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Unit content

1 Understand how to prepare for business

Own strengths and weaknesses: personal circumstances, experience, skills, knowledge and abilities eg practical/technical skills, business skills, other relevant skills; areas for development or improvement; suitability for self-employment or a small business

Contributing to a business: own contribution eg personal time, money, space, ability to contribute to and run a business; personal savings; availability of time; impact on working and personal life; barriers to starting/running a successful business; professional help

Benefits of running a business: personal objectives; business objectives; profitability of the business; other considerations eg impact on personal and working life

2 Know how different aspects affect preparation for business

Regulations and laws for small businesses: legal status eg sole trader, partnership, limited company; process for starting a business legally; statutory regulations; laws; licences; formal records eg leasing arrangements, tax returns, VAT returns, health and safety; keeping and submitting business records; regulations and laws relating to records; the importance of completing and keeping correct records

Marketing and sales: reaching and retaining customers; customer care; marketing information; market research; analysing and meeting customer needs; competition; building customer relationships; cost and price of products or services; promoting products or services; unique selling points; selling techniques; personal selling; environmental issues

Financial issues: sources of finance; start up costs; operating expenses and income; organising and controlling expenses and income; cash flow forecasting; records; external organisations eg HM Revenue and Customs, HM Revenue and Customs, measuring financial success eg costs and income, profits, assets, financial state of a business; financial priorities; risks eg losing money, security of income, changes to financial situation

3 Understand how to start and run a business

Business plan: the business idea; products or services; possible customers; customers’ needs eg when and where they want products or services, where and when a product or service can be sold; sales targets; the need for forward planning

Starting and running a business: the needs of a business; research techniques; planning ahead; planning techniques; controllable and uncontrollable aspects; timing; what work needs to be done to start and run a business; materials and supplies

Advice and support: business support eg people, agencies and organisations offering advice or help, funding and financial support, technical support, education and training available


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UN

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2006

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Delivery

At the outset of this unit, small discussion groups will help to focus learners’ understanding of the contexts in which small businesses can be set. They will need to think about the location, sector and type of business they have in mind, whether they are thinking about starting from scratch, taking over a business in its early years or taking over a more established business, and whether they plan to help run a business or become self-employed. They will also need to think about the products or services the business will offer and whether these are unique or available from similar businesses. Learners need to be clear about their own involvement in preparing for business. If the learning programme has not yet addressed the principle of carrying out an analysis of their strengths and weaknesses, the tutor should deliver a session covering the process and engage learners in carrying out their own analysis based on preparing for business. It is far better to know at an early stage that they may not be suited to running a small business than to progress too far and fail.

Learners also need to consider their own contribution to a business. Where the analysis is an objective appraisal of learners’ abilities, considering their own contribution requires some subjective judgements. Tutors can guide learners in engaging in discussions with parents and friends, although this must be done with care to ensure that they do not encounter negative reactions. Other useful support can be gleaned from discussions with successful operators of small businesses, who will be able to demonstrate and present rational arguments for the benefits of running a business.

It is critical to the success of this unit that learners understand the vocational relevance of what they are learning. Visiting speakers should be considered as an essential component of delivery and tutors should consider the range of advice and support detailed in the unit content when planning an appropriate selection of speakers. Specialist speakers should be invited to give presentations relating to the different aspects that affect preparation for business. A solicitor, or other legal expert, can present the issues of regulations and laws for small businesses. Various external speakers can address the implications of marketing and sales, although if a small business operator is chosen, care should be taken to ensure that they have adequate knowledge of these issues. Presentations must cover the purpose of marketing and sales, such as analysing the market and competition, collecting and collating information and using it to understand the market, as well as an appreciation of the time needed to gather and use information. Bank managers, or other financial advisers, can deliver presentations on financial issues, including those relating to both starting up and operating the business.

Development of the final outcome — understanding how to start and run a business — can begin with learner discussion groups, which should focus on what they have learned so far and begin to draw together the various components into cohesive thoughts about the kind of business they might like to run. It is essential for learners to understand the importance of a business plan. Where bank managers or financial advisers have been used to deliver presentations on financial issues, these should be extended to cover the elements of a business plan, adding vocational relevance to its purpose. With suitable support from the local small business community, arrangements can be made for learners to visit local business people in small groups or pairs to discuss the principles behind starting and running a business. Tutors can usefully use case study materials, either drawn from real cases or created artificially, to underpin various critical aspects of small business operations without causing embarrassment to


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actual operators. It is important for learners to understand the controllable and uncontrollable aspects of business operations, for example, the controllable aspects of financial management (such as arranging adequate finance and monitoring income and expenditure) and the uncontrollable aspects (such as unexpected rises in interest rates, although business operators could argue that even this is controllable by monitoring trends and making appropriate judgements about the economy in general). Learners must also develop their knowledge of the materials and supplies needed by the small business they have in mind, where they can be obtained, when and how often they are needed.

Finally, learners should develop their knowledge of the wide range of advice and support available to small businesses. They should by now have already had some exposure to advisers in one form or another. Some research carried out either on a local basis or through the internet will usefully generate details of further sources, such as Business Links and Local Enterprise Partnerships, which learners can either present to the rest of the group or discuss in small groups before feeding back to the larger group.

Assessment

Learners will be expected to produce evidence that shows their knowledge and understanding of preparing for business. It may include:

• a presentation describing how to prepare for business

• an account of how different aspects affect preparation for business

• an outline business plan that explains why this is important when starting and running a business.

To meet the pass criteria, learners should initially consider their own strengths and weaknesses and what impact these will have on preparing for and contributing to a business. They need to take the perspective of a prospective business owner, rather than an employee, which will demand a different set of strengths and weaknesses. However, learners may turn this issue to their advantage. If they have good technical skills that would be useful to a business, they may decide to employ a manager to take care of the operational issues. (Learners should be clear that such an action would need to be built into the business plan. If the business cannot afford to employ a manager, this would become a weakness.)

Learners will have covered the range of issues relating to regulations and laws, marketing and sales, and financial issues during delivery of the unit. For the second, third and fourth pass criteria, they need to focus on a specific business that they would enjoy starting and running, if the opportunity arose. This will enable them to present specific evidence relating to such a business, such as the legal status, the statutory regulations that may apply, how specific products and/or services would be marketed, and how the business is to be financed. All of these issues need to be viable. For example, starting a national or regional chain of retail outlets would be beyond most learners at this stage, whereas a small single outlet opened locally would be possible. This in itself will have an impact on the development of learners’ evidence, including financing the business, location, fire regulations and so on.

Learners can develop their ideas for the fifth pass criterion. Their business plan should have a recognisable structure and should be populated with ideas generated through the learner’s work thus far. The plan may be based on a commercially available plan, such as learners could obtain from local banks or building societies. However, tutors should be conscious of the level of learners. Completed plans should be in outline only and, while they would be unlikely to gain approval by a bank or building society manager, they should cover all the key issues that learners should consider when starting and running a business. The plan may also incorporate P6 by describing the sources of advice and support the learner would use as part of their preparation for business.


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To meet merit criteria, learners should use examples they have found to support their explanation of the benefits of running a business. These could relate to local small businesses they have visited during the delivery of the unit, or to case study materials that expose specific benefits. In either case, learners would benefit from being able to relate this to their own business proposals.

Their own business proposals should form the basis for analysis in greater depth of the different aspects that will affect preparation for business. Learners should ensure that they address each relevant aspect: regulations and laws for small businesses; marketing and sales; and financial issues. Their evidence should be more extensive than a simple description of the different aspects that apply. It should examine each aspect that applies to their business and explain the effect of each.

Learners’ evidence for merit criteria should also explain the components of a business plan using examples drawn from the outline prepared for the pass criteria. This should make clear the purpose of each component, together with an overall explanation of why business plans are prepared. This should not just reflect the need to secure funding, but should form a guide for business start up and development. Learners should in reality be in a position to evaluate the plan and make adjustments that are consequential to the plan’s actions.

To meet the distinction criteria, learners should adopt an advisory stance and present an objective evaluation of all of the issues (drawn from across the content of this unit) that need to be considered if they were to start and run a business. Strengths and weaknesses should be clearly highlighted, together with a rationale for each. This will lead to the final distinction criteria — making and justifying recommendations for starting a business. Learners need to recognise that the outcome may be a recommendation not to proceed. This is acceptable provided that it is justified. Similarly, a recommendation to go forward and start a business should also be justified and supported with objective evidence.


This unit can be related to most other units within this specification. Tutors should consult with colleagues to explore how this unit can integrate with others.

It also provides opportunities to gain key skills in application of number, communication, information and communication technology, improving own learning and performance, and problem solving.


Essential resources

This unit requires learners to undertake research. To enable research skills to be effectively developed they should be introduced to as many different forms of information as possible, eg libraries and other research facilities including the internet, national newspapers, local banks, start up business training agencies.

Learners will also benefit from case study materials, which may be able to focus on specific aspects of developing hospitality small business ideas.

Most clearing banks offer small business packs which could serve as useful teaching and learning resources. Additionally, TEC/LEC, Business Links and Chambers of Commerce can provide additional information to complement learning activities.


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Tutors should be aware that textbooks are frequently updated and that they should use the latest editions where available. Examples currently include:

Barrow C and Barrow P — The Business Plan Workbook, Third Edition (Kogan Page, 1998) ISBN 0749426969

Golzen G — Working for Yourself, 18th Edition (Kogan Page, 1998) ISBN 0749426772

Vass J — The Which? Guide to Starting Your Own Business (Which books, 1999) ISBN 0852027699

Williams S — Lloyds TSB Small Business Guide, 13th Edition (Penguin Books, 2000) ISBN 0140286934

Wisdom J — Checklists and Operating Forms for Small Businesses (John Wiley and Sons, 1997) ISBN 0471138401


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Key skills




• gathering and developing data to support proposals for starting and running a business.



a amounts and sizes



d using formulae. N2.3 Interpret the results of your calculations and

present your findings.



• discussing business ideas, personal strengths and weaknesses and other aspects of preparing for enterprise with other learners


• delivering a presentation on starting and running a business


• researching potential business opportunities


• preparing a summary of proposals to start and run a new business.



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•

•

delivering a presentation on starting and running a business

gathering and developing data to support proposals for starting and running a business.









•

•

assessing own strengths and weaknesses in relation to starting and running a business

assessing own contribution to a business and the benefits of running a business. LP2.3 Review progress with an appropriate person

and provide evidence of your achievements.



• identifying and resolving problems relating to starting and running a business.





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UNIT 10: STARTING A SMALL BUSINESS

Unit 10: Starting a Small Business

NQF Level 3: BTEC National


Unit abstract

Starting a small business is the ambition of many people. The business idea could be almost anything — a coffee shop, a courier service, a hairdresser’s, a motor vehicle repair workshop, a DJ service, a painting and decorating business, an equipment hire operation, or an organic smallholding producing fruit and vegetables. However, starting a small business can be fraught with difficulties and the idea may not always be successfully realised. Those setting out on such a venture will need to consider the business idea, where funding will come from, what the potential market is, what the competition is like and a host of other issues that must be addressed if the business start up is to be successful.

This unit gives learners the opportunity to consider their idea within structured business parameters, such as the type of business, the attractiveness of the business idea, the target market and the need to balance personal and business needs. Learners will also consider their ability to run the business, including the skills they already have that will support the business idea and what new personal development they may have to undertake in order for the venture to be successful.

Learners will also develop their knowledge and understanding of the legal status and trading terms and conditions of their proposed business, legal aspects such as fire regulations, taxation, VAT and HM Revenue and Customs, and financial aspects, such as start up and operational costs, as well as personal needs.

Learners will have the opportunity to devise an outline proposal for a business start up. This will cover the reasons for preparing a business proposal and will include many of the components expected by financial advisers, including the type of business, its target market, available resources, financial information and forward planning.


Learning outcomes


1 Be able to present the initial business idea using relevant criteria

2 Understand the skills and development needed to run the business successfully

3 Know the legal and financial aspects that will affect the start up of the business

4 Be able to produce an outline business start up proposal.


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Unit content

1 Be able to present the initial business idea using relevant criteria

Criteria: type eg new, purchase an existing business, franchise; aims; business planning; attractiveness of idea eg unique selling point, demand for new business, competitive edge; balancing personal/business needs; checking profitability; business trends; external influences eg commercial, political, local, national, international; self-esteem eg work for self, independence, power, achievement

Identifying target market: eg market research, published research, sales forecasts, customers’ actions and choices, effect on business, competition, strengths and weaknesses, market trends; environmental issues

2 Understand the skills and development needed to run the business successfully

Skills: own contribution; technical/operational — relating to products/services, management, recording and checking performance of business, personal selling, administration, previous experience, strengths and weaknesses

Development: identify skills gap/shortages; professional help; training; planning; cost implications; accessibility; timescales

3 Know the legal and financial aspects that will affect the start up of the business

Legal aspects: legal status eg sole trader, partnership, limited company, franchise, co-operative; legal liabilities; trading terms and conditions; trading standards; licences; record keeping; resolving problems; national/local laws; regulations and bylaws; health and safety; fire regulations; licensing; liabilities; planning permission, contracts, duties and responsibilities; regulatory bodies; sources of advice

Financial aspects: personal survival budget; cost of premises, equipment and supplies; running costs; employing staff; pricing policy; break even; cash flow forecasting; profit and loss budgets/accounts; sources of finance eg grants, loans, borrowing, sponsorship; record keeping

4 Be able to produce an outline business start up proposal

Business proposal: models; reviewing information and ideas; setting targets and goals; purpose of plan; components (type of business, market, human/physical/financial resources, financial and profit forecasts, growth and development, contingencies)


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Delivery

This unit enables learners to investigate and identify the skills needed to run a successful small business. The term ‘small business’ is related to people operating on their own as sole traders or partnerships and limited companies employing 10 or fewer staff. To begin developing thoughts and ideas, a discussion group could brainstorm a wide range of small business opportunities, such as a coffee shop, a courier service, a hairdresser’s, a motor vehicle repair workshop, a DJ service, a painting and decorating business, an equipment hire operation, or an organic smallholding producing fruit and vegetables. Learners should be encouraged at this early stage to begin to focus on a possible small business idea. They should not be deterred if their ideas change during this unit. They need to concentrate on the processes involved rather that the specific outcomes.

Learners will need some theoretical input to develop their understanding of the criteria for a business idea. Tutors should use case study materials to illustrate a range of examples and help learners to focus their thoughts during the formulation of their ideas, including how the business idea will relate to its target market.

Learners need to carry out a skills audit to examine the skills they currently have to support the new business operation. They also need to consider what development they might need. This could usefully be supported by investigating similar businesses and talking to their operators to see what skills are needed and how these match the learner’s current and proposed development. Such investigations could also usefully inform learners’ knowledge of market research, although it would be wise for the small business operators to be properly advised about learners’ activities and to be briefed about how their contribution will support the unit’s development.

Learners should consider exploring a number of legal aspects:

• national/local laws

• regulations and bylaws

• health and safety

• fire regulations

• licensing

• liabilities eg tax and VAT, insurances

• planning permission, contracts, duties and responsibilities

• regulatory bodies eg Environmental Health Office, HM Revenue and Customs

• sources of advice eg Business Link centres, solicitors and the Small Business Service.

When considering legal and financial aspects of small business start ups, learners would benefit from guest speakers such as those operating a small business, business start up advisors, accountants, and representatives from banks, the HM Revenue and Customs, training and advice services and local enterprise agencies. Visits to local small businesses or presentations by representatives from local trade associations such as the Chamber of Commerce would help learners to develop an awareness of what is needed to run a small business.


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Delivery of the unit must ensure that learners understand the full implications of setting up a small business. It will be important for learners to know what skills they have and would need, their survival needs and how much money and other resources will be required to start up the business. Learners should develop a clear outline for a business start up proposal as a result of completing the unit. Learners can select from a wide range of supporting materials available in a variety of formats, eg the internet or small business start up packs available from banks and building societies, although it is important they understand that this is only an outline and not a fully-fledged business plan.

Assessment

Learners will be expected to produce evidence that shows their knowledge and understanding of how small businesses are started. It may include:

• an explanation of the initial idea for developing a small business

• findings from their analysis of the skills and development needed to run the business

• an explanation of the legal and financial aspects that will affect the start up of their business

• an outline proposal for starting up a new small business.

Evidence for this unit should be primarily formal due to the nature of the unit. Initial ideas can be evidenced either through an oral or written presentation, or through a short report. Other evidence such as records of discussions and notes of meetings would provide useful support.

To meet the pass criteria, learners must present the initial business idea using relevant criteria. These criteria should be clear from the business idea, for example the type of business, what its unique selling points may be, any external influences (eg location) and so on. Learners should discuss the development of their evidence with their tutor and, where possible, a business mentor. This presentation can be in the form of a formal report or a presentation to a group. Where this is the case, tutors should ensure that any business mentors used are present. The presentation should include a description of the target market, which will be informed by the business idea and the criteria used to define it.

Learners must be realistic about their skills and development analysis. Although the small business idea may not come to fruition, intentions should be realistic and such evidence should highlight learners’ awareness of their skills and development opportunities. Learners are not expected to undertake additional development work but need to be aware of what the requirements would be.

Learners must also describe the legal and financial aspects that will affect the start up of the business. They may need to consult with specialists (this should be guided by the delivery of the unit) and should address aspects such as the legal status of the business, the form of trading it will undertake, together with specific relevant legal and financial issues. Learners should presume that their ideas can become reality and should consider these areas accordingly.

The outline business plan should follow a formal report format and can be developed into a comprehensive document. This should reflect legal aspects relating to the start up of a new business, but monetary aspects will necessarily involve some simulation. The report should be supported by an oral discussion, which may be undertaken by a specialist such as a bank manager.

To meet the merit criteria, learners need to demonstrate their understanding of the methods used to identify the target market for the proposed business. This will require them to consider a range of methods that could actually be used and to provide reasons for their choice. Market research will almost certainly be included but learners need to explain why. Other methods may prove more challenging but the selection and justification should contribute to a possible business launch, rather than just a descriptive account of how they could be applied.


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If learners were to launch a business, they would certainly need to undertake further development. The pass criteria have already addressed what areas require further development. At merit level, learners need to analyse these areas of development and explain how they would pursue each in order to strengthen their ability to start a business. Examples could include sources of training with appropriate timelines that fit with the business launch dates.

The pass criteria require learners to describe the legal and financial aspects that will affect the start up of the business. For the merit criteria, learners need also to consider the impact that these will have. This may require them to describe systems they will have in place for addressing such issues, such as recording systems for tax and VAT liabilities. Learners may wish to include a summary of how these will embed within the overall business plan.

To meet the distinction criteria, learners need to draw all their evidence together into a comprehensive business proposal that addresses all relevant aspects of business start up. Other pass and merit criteria will already have covered much of the evidence they will need. For distinction, they need to present all of the evidence in a fluent proposal. Learners should be encouraged to seek guidance on the preparation of such a proposal, much as they would do in the real world. They should discuss a draft with their tutor and/or business mentor, make improvements and revisions, before presenting the final version.


This unit relates to most other units within this specification. Tutors should consult with colleagues to explore how this unit can integrate with others.


This unit may contribute to the following units of the Business Start up NVQ level 3:

• Unit 1: Check how successful your business idea will be

• Unit 2: Check your ability to run the business

• Unit 3: Check what law and other regulations will affect your business

• Unit 4: Work out what money you need to start the business and keep it running

• Unit 11: Develop the plan for your business.

This unit also provides opportunities to gain key skills in communication, application of number, information and communication technology, improving own learning and performance, and problem solving.

Essential resources

Many of the outcomes for this unit require learners to undertake research. To enable research skills to be effectively developed they should be introduced to as many different forms of information as possible, eg libraries and other research facilities including the internet, national newspapers, local banks, start up business training agencies.

Learners will also benefit from case study materials, which may focus on specific aspects of developing small business ideas.

Most clearing banks offer small business packs which could serve as useful teaching and learning resources. Additionally, TEC/LEC, Business Links and Chambers of Commerce can provide additional information to complement learning activities.


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Tutors should be aware that textbooks are frequently updated and that they should use the latest editions where available. Examples currently include:

Barrow C and Barrow P — The Business Plan Workbook, Third Edition (Kogan Page, 1998) ISBN 0749426969

Barrow C — Financial Management for the Small Business (Kogan Page, 1998) ISBN 0749426454

Deakins D — Entrepreneurship and Small Firms (McGraw-Hill Publishing Company, 1999) ISBN 0077094522

Wisdom J — Checklists and Operating Forms for Small Businesses (John Wiley and Sons, 1997) ISBN 0471138401


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Key skills




• gathering and developing data to support proposals for starting and running a business.



a amounts and sizes



d using formulae.




• discussing initial business ideas with tutors, other learners and small business operators


• delivering a presentation summarising their initial business idea


•

•

researching business ideas

studying guides for small business start up


• preparing an outline business start up proposal.




102







•

•

delivering a presentation on an initial business idea

gathering and developing data to support proposals for starting and running a business.






• understanding the skills and development needed to run the business successfully

• understanding the legal and financial aspects that will affect the start up of the business. LP2.3 Review progress with an appropriate person

and provide evidence of your achievements.



• identifying and resolving problems relating to starting and running a business.





103



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Assessment and grading

The purpose of assessment is to ensure that effective learning of the content of each unit has taken place.

Assignments should ensure coverage of all the criteria in the unit as set out in the Grading grid for each unit. It is advisable that criteria are clearly indicated on each assignment to provide a focus for learners (for transparency and to help ensure that feedback is specific to the criteria) and to assist with internal verification and standardisation processes. Tasks and activities should enable learners to produce evidence that relates directly to the specified criteria.

Assignments constructed by centres should be valid, reliable and fit for purpose, building on the application of the grading criteria. Centres should use a variety of assessment methods, including case studies, assignments and work-based assessments, along with projects, performance observation and time-constrained assessments. Centres are encouraged to place emphasis on the practical application of the grading criteria, providing a realistic scenario for learners to adopt, and making maximum use of practical activities and work experience. The creation of assignments that are fit for purpose is vital to achievement by learners and their importance cannot be over emphasised.

When reading the Grading grids and designing assessment instruments, centres should note that for learners to achieve a merit/distinction grade they will be required to provide evidence that is qualitative in its nature. Centres are encouraged to look across each assessment criterion in the Grading grid to identify common topics within units and to assess learners’ work according to the level that they have achieved as determined by the grading criteria.

The grading criteria are developed in relation to grading domains which provide for the assessment of the learning outcomes of the unit. There are four grading domains which underpin the grading criteria.

Application of knowledge and understanding. •

•

•

•

•

•

•

Development of practical and technical skills.

Personal development for occupational roles.

Application of generic and key skills.

The qualitative nature of the merit and distinction grading criteria are based upon indicative characteristics required of the assessment evidence to fulfil the higher grades. Please refer to Annexe B.

A grading scale of pass, merit and distinction is applied to all units.

In the Edexcel BTEC Firsts all units are internally assessed.

All assessment for BTEC Firsts is criterion referenced, based on the achievement of specified outcomes. Each unit has specified criteria to be used for grading. A summative unit grade can be awarded at pass, merit or distinction:

to achieve a ‘pass’ a learner must have satisfied all the pass criteria

to achieve a ‘merit’ a learner must additionally have satisfied all the merit criteria

to achieve a ‘distinction’ a learner must additionally have satisfied all the distinction criteria.

Learners who complete the unit but who do not meet all the pass criteria are graded ‘unclassified’.


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Quality assurance

Edexcel’s qualification specifications set out clearly the standard to be achieved by each learner in order to gain the award of the qualification. This is covered in the statement of outcomes and grading criteria in each unit. Further guidance on delivery and assessment is given in the Essential guidance for tutors section of each unit. This section is designed to provide additional guidance and amplification related to the unit to support tutors, deliverers and assessors and to provide for a coherence of understanding and a consistency of delivery and assessment.

Edexcel operates a quality assurance process which is designed to ensure that these standards are maintained by all internal verifiers and external verifiers. It achieves this through the following activities.

Approval

Centres will be allowed ‘accelerated approval’ for a new programme where the centre already has approval for a programme that is being replaced by the new programme. Centres wishing to offer a vocational area for the first time will need to apply for approval to offer the programme.

Centres that have not previously offered BTEC qualifications will first need to apply for, and be granted, centre approval before they can apply for approval to offer the programme.

When a centre applies for approval to offer a BTEC qualification they will be required to enter into an approvals agreement.

The approvals contract is a formal commitment by the head or principal of a centre to meet all the requirements of the specification and linked codes or regulations. Sanctions and tariffs may be applied if centres do not comply with the agreement. Ultimately, this could result in the suspension of certification or withdrawal of approval.

Risk assessment

Edexcel has an approval process which creates a quality profile of each qualification programme in each centre and for the centre as a whole. This profile contributes to the determination of the nature of external verification activity for each programme and will also be used to initiate other quality control measures by Edexcel.

Internal verification

Centres are required to have processes in place reviewing each assessor’s decisions to ensure that they are correctly interpreting and applying the standards set out in the specifications. The system used to do this is a matter for individual centres and Edexcel fully supports the use of the centre’s own quality assurance systems where this ensures robust internal standardisation.

Centres should refer to the BTEC NQF Level 2/3 (including Short Courses at Levels 1–3) Handbook (updated annually). This updated information may also be found on the Edexcel website/Services for centres/FE Colleges and Schools.

External verification

Edexcel will sample assessors’ decisions using sector-specialist external verifiers. For BTEC Firsts this process will follow the National Standards Sampling (NSS) protocol.

The learner work must have been internally assessed. Additionally, at least 50 per cent of submitted work must have been internally verified.

Centres should refer to the BTEC NQF Level 2/3 (including Short Courses at Levels 1–3)(updated annually). This updated information may also be found on the Edexcel website/Services for centres/FE Colleges and Schools.


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http://www.edexcel.org.uk:/

http://www.edexcel.org.uk:/

Calculation of the qualification grade

Awarding a qualification grade

The qualification grade will be calculated through the aggregation of points achieved through the successful achievement of individual units. Learners will achieve a pass, merit or distinction qualification grade based on the attainment of a stated minimum number of points for each unit grade. The number of points available will be dependent on the unit grade achieved and the size of the unit as determined by the stipulated guided learning hours.

For the calculation of a qualification grade for a BTEC First Certificate and a BTEC First Diploma a learner must:

complete all designated units •

•

•

achieve a minimum points score of 18 points for a First Certificate and 36 points for a First Diploma

achieve a pass grade for all designated units for a First Certificate and achieve a pass grade for units with a combined total of 300 guided learning hours for a First Diploma.

Points available

Size of unit (GLH) Pass grade Merit grade Distinction grade

10 1 2 3

30 3 6 9

60 6 12 18

90 9 18 27

120 12 24 36

Qualification grade

Qualification Pass grade Merit grade Distinction grade Distinction*

BTEC First Certificate (54 maximum) 18–29 30–41 42–53 54

BTEC First Diploma (108 maximum) 36–59 60–83 84–95 96–108


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School and College Achievement and Attainment Tables (SCAAT) equivalence

BTEC First Certificate and SCAAT points

BTEC First Certificates attract points for the DfES School and College Achievement and Attainment Tables (formerly Performance Tables). The qualification attracts the same points as two GCSEs at A*-C, and contributes 40 per cent towards the threshold. For the detailed point scores for a pass, merit, distinction, and distinction*, please see the QCA Openqual website at: http://www.openquals.org.uk.

BTEC grade boundaries BTEC First Certificate grade SCAAT points and GCSE grade equivalence

18–29 Pass P C B

30–41 Merit M B A

42–48 Distinction D A A*

49–54 Distinction* D* See footnote 1

BTEC First Diploma and SCAAT points

BTEC First Diplomas attract points for the DfES School and College Achievement and Attainment Tables (formerly Performance Tables). The qualification attracts the same points as four GCSEs at A*–C, and contributes 80 per cent towards the threshold. For the detailed point scores for a pass, merit, distinction, and distinction*, please see the QCA Openqual website at: http://www.openquals.org.uk.

BTEC grade boundaries BTEC First Diploma grade SCAAT points and GCSE grade equivalence

36–59 Pass P C C BB

60–83 Merit M B B AA

84–95 Distinction D A A A* A*

96–108 Distinction* D* See footnote 1

1 At the time of publication the number of points attained for a BTEC Distinction* grade is still to be confirmed on the DfES School and College Achievement and Attainment Tables


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http://www.openquals.org.uk/

http://www.openquals.org.uk/

Programme design and delivery

These qualifications consist of core units (which are mandatory) and specialist units. Specialist units are designed to provide a specific focus to the qualification. Required combinations of specialist units are set out clearly in relation to each qualification in the defined qualification structures provided in this document.

In BTEC First qualifications each unit is 30, 60, 90 or 120 guided learning hours. The definition of guided learning hours is ‘a notional measure of the substance of a qualification’. It includes an estimate of time that might be allocated to direct teaching, instruction and assessment, together with other structured learning time such as directed assignments or supported individual study. It excludes learner-initiated private study. Centres are advised to consider this definition when planning the programme of study associated with this specification.

Mode of delivery

Edexcel does not define the mode of study for BTEC First qualifications. Centres are free to offer the qualifications using any mode of delivery that meets the needs of their learners. This may be through traditional classroom teaching, open learning, distance learning or a combination of these. Whatever mode of delivery is used, centres must ensure that learners have appropriate access to the resources identified in the specifications and to the subject specialists delivering the units. This is particularly important for learners studying for the qualification through open or distance learning.

Learners studying for the qualification on a part-time basis bring with them a wealth of experience that should be utilised to maximum effect by tutors and assessors. Assessment evidence based on the learners’ work environment should be encouraged. Those planning the programme should aim to enhance the vocational nature of the BTEC First qualification by:

liaising with employers to ensure a course relevant to the specific needs of the learners •

•

•

•

•

accessing and using non-confidential data and documents from learners’ workplaces

including sponsoring employers in the delivery of the programme and, where appropriate, in the assessment

linking with company-based/workplace training programmes

making full use of the variety of experience of work and life that learners bring to the programme.

Resources

BTEC First qualifications are designed to prepare learners for employment in specific sectors. Physical resources need to support the delivery of the programme and the proper assessment of the outcomes and therefore should normally be of industry standard. Staff delivering programmes and conducting the assessments should be fully familiar with current practice and standards in the sector concerned. Centres will need to meet any specialist resource requirements when they seek approval from Edexcel.

Where specific resources are required these have been indicated in individual units under the Essential resources section.


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Delivery approach

It is important that centres develop an approach to teaching and learning that supports the specialist vocational nature of BTEC First qualifications. Specifications contain a balance of practical skill development and knowledge requirements, some of which can be theoretical in nature. Tutors and assessors need to ensure that appropriate links are made between theory and practice and that the knowledge base is applied to the sector. This will require the development of relevant and up-to-date teaching materials that allow learners to apply their learning to actual events and activity within the sector. Maximum use should be made of the learner’s experience.

Accreditation of Prior Learning (APL)

Edexcel encourages centres to recognise learners’ previous achievements and experience through APL. Learners may have evidence that has been generated during previous study or in their previous or current employment or whilst undertaking voluntary work that relates to one or more of the units in the qualification. Assessors should assess this evidence against the National Occupational Standards mapped in the specification. As with all evidence, assessors should be satisfied about the authenticity and currency of the material when considering whether or not the outcomes of the unit have been met.

Full guidance on Edexcel’s policy on APL is provided on our website: www.edexcel.org.uk

Meeting local needs

Centres should note the qualifications set out in these specifications have been developed in consultation with centres and employers, particularly the NTO or the Sector Skills Council for the business sector. The units are designed to meet the skill needs of the sector and the specialist units allow coverage of the full range of employment. Centres should make maximum use of the choice available to them within the specialist units in these specifications to meet the needs of their learners, and the local skills and training needs identified by organisations such as the Regional Development Agency and the Local Learning and Skills Council.

In certain circumstances, the units contained in these specifications may not enable centres to meet a local need. In this situation centres may seek approval from Edexcel to make use of units from other standard NQF BTEC First Diploma specifications. Centres will need to justify the need for importing units from other specifications and Edexcel will ensure that the vocational focus of the qualification has not been diluted. Units that have externally set assignments cannot be imported into other qualifications.

There may be exceptional circumstances where even this flexibility does not meet a particular local need. In this case centres can seek permission from Edexcel to develop a unit with us to meet this need. The cases where this will be allowable will be very limited. Centres will need strong evidence of the local need and the reasons why the existing standard units are inappropriate. Edexcel will need to submit these units for accreditation by QCA.

Limitations on variations from standard specifications

The flexibility to import standard units from other BTEC First Diploma specifications and/or develop unique units is limited to one unit in a BTEC First Diploma qualification. This flexibility is not available within the BTEC First Certificate. The use of these units cannot be at the expense of the core units in any qualification.

More detailed guidance on delivery and assessment is given in each unit.


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Access and recruitment

Edexcel’s policy regarding access to its qualifications is that:

the qualifications should be available to everyone who is capable of reaching the required standards

•

•

•

•

•

•

the qualifications should be free from any barriers that restrict access and progression

there should be equal opportunities for all wishing to access the qualifications.

Centres are required to recruit learners to BTEC qualifications with integrity. This will include ensuring that applicants have appropriate information and advice about the qualifications and that the qualification will meet their needs. Centres should take appropriate steps to assess each applicant’s potential and make a professional judgement about their ability to successfully complete the programme of study and achieve the qualification. This assessment will need to take account of the support available to the learner within the centre during their programme of study and any specific support that might be necessary to allow the learner to access the assessment for the qualification. Centres should also show regard for Edexcel’s policy on learners with particular requirements.

Centres will need to review the profile of qualifications and/or experience held by applicants, considering whether this profile shows an ability to progress to a Level 2 qualification. For learners who have recently been in education, the profile is likely to include one of the following:

a standard of literacy and numeracy supported by a general education equivalent to four GCSEs at grades D–G

related work experience

other related Level 1 or 2 qualifications.

More mature learners may present a more varied profile of achievement that is likely to include experience of paid and/or unpaid employment.

Restrictions on learner entry

The Edexcel Level 2 BTEC First Certificate in Business and the Edexcel Level 2 BTEC First Diploma in Business are accredited on the National Qualifications Framework (NQF). The qualifications are listed on the DfES funding lists Section 96 and Section 97.

Additionally, the majority of BTEC First qualifications are available to learners aged 14–16 to enhance their curriculum and to help them gain experience of vocational skills which will prepare them for work.

Access arrangements and special considerations

Edexcel’s policy on access arrangements and special considerations for BTEC and Edexcel NVQ qualifications aims to enhance access to the qualifications for learners with disabilities and other difficulties (as defined by the 1995 Disability Discrimination Act and the amendments to the Act) without compromising the assessment of skills, knowledge, understanding or competence.

Further details are given in the policy ‘Access Arrangements and Special Considerations for BTEC and Edexcel NVQ Qualifications’, which is on the Edexcel website (www.edexcel.org.uk). This policy replaces the previous Edexcel policy (Assessment of Vocationally Related Qualification: Regulations and Guidance Relating to Learners with Special Requirements, 2002) concerning learners with particular requirements.


111

The

Edex

cel B

TEC

Qua

lific

atio

n Fr

amew

ork

for

the

busi

ness

sec

tor

Prog

ress

ion

oppo

rtuni

ties w

ithin

the

fram

ewor

k ar

e av

aila

ble

verti

cally

, dia

gona

lly a

nd h

oriz

onta

lly.

NQ

F L

evel

G

ener

al Q

ualif

icat

ions

B

TE

C F

ull V

RQ

Cou

rses

B

TE

C S

hort

Cou

rses

N

VQ

/Occ

upat

iona

l

8

7

B

TEC

Adv

ance

d Pr

ofes

sion

al

Aw

ard/

Cer

tific

ate/

Dip

lom

a in

M

anag

emen

t Stu

dies

6

5

BTE

C F

ound

atio

n D

egre

e in

Bus

ines

s

BTE

C H

ighe

r Nat

iona

ls in

Bus

ines

s

BTE

C H

ighe

r Nat

iona

ls in

e-B

usin

ess

BTE

C P

rofe

ssio

nal A

war

d/

Cer

tific

ate/

Dip

lom

a in

Man

agem

ent

Stud

ies

4

Leve

l 4 N

VQ

in B

usin

ess a

nd

Adm

inis

tratio

n

3

GC

E in

App

lied

Bus

ines

s

GC

E in

Bus

ines

s Stu

dies

BTE

C N

atio

nals

in B

usin

ess

BTE

C N

atio

nals

in e

-Bus

ines

s

BTE

C A

war

d/C

ertif

icat

e in

M

anag

emen

t

BTE

C L

evel

3 A

war

d in

Cus

tom

er

Serv

ice

Leve

l 3 N

VQ

in B

usin

ess a

nd

Adm

inis

tratio

n

2 Fi

rst C

ertif

icat

e an

d D

iplo

ma

in

Bus

ines

s B

TEC

Lev

el 1

Aw

ard

in C

usto

mer

Se

rvic

e Le

vel 1

NV

Q in

Bus

ines

s and

A

dmin

istra

tion

1

GC

SE B

usin

ess a

nd C

omm

unic

atio

n Sy

stem

s

GC

SE B

usin

ess S

tudi

es

GC

SE B

usin

ess S

tudi

es a

nd E

cono

mic

s

GC

SE in

App

lied

Bus

ines

s

BTE

C In

trodu

ctor

y C

ertif

icat

e an

d D

iplo

ma

in B

usin

ess,

Ret

ail a

nd

Adm

inis

tratio

n

Ent

ry

C

ertif

icat

e in

Life

Ski

lls

Cer

tific

ate

in S

kills

for W

orki

ng L

ife

BF0

1725

9 –

Spec

ifica

tion

– E

dexc

el L

evel

2 B

TEC

Firs

t Cer

tific

ate

and

BTE

C F

irst D

iplo

ma

in B

usin

ess

– Is

sue

1 –

Janu

ary

2006

11

2

Further information

For further information please call Customer Services on 0870 240 9800 (calls may be recorded for training purposes) or visit our website at www.edexcel.org.uk.

Useful publications

Further copies of this document and related publications can be obtained from:

Edexcel Publications Adamsway Mansfield Nottinghamshire NG18 4FN

Telephone: 01623 467 467 Fax: 01623 450 481 Email: [email protected]

Related information and publications include:

• Accreditation of Prior Learning available on our website: www.edexcel.org.uk

• Guidance for Centres Offering Edexcel/BTEC NQF Accredited Programmes — (Edexcel, distributed to centres annually)

• key skills publications — specifications, tutor support materials and question papers

• The Statutory Regulation of External Qualifications in England, Wales and Northern Ireland — (QCA, 2004).

• the current Edexcel publications catalogue and update catalogue.

Edexcel publications concerning the Quality Assurance System and the internal and external verification of vocationally related programmes may be found on the Edexcel website and in the Edexcel publications catalogue.

NB: Most of our publications are priced. There is also a charge for postage and packing. Please check the cost when you order.


113


How to obtain National Occupational Standards

Small Firms Enterprise Development Initiative (SFEDI) PO Box 5753 Milton Keynes MK10 1AE Telephone: 01525 211145 Web: www.sfedi.co.uk

Institute of Customer Service (ICS) 2 Castle Court St Peter’s Street Colchester Essex CO1 1EW

Telephone: 01206 571716 Web: www.instituteofcustomerservice.com

The Council for Administration (CfA) 6 Graphite Square Vauxhall Walk London SE11 5EE

Telephone: 020 7091 9620 Web: www.cfa.uk.com

Professional development and training

Edexcel supports UK and international customers with training related to BTEC qualifications. This support is available through a choice of training options offered in our published training directory or through customised training at your centre.

The support we offer focuses on a range of issues including:

• planning for the delivery of a new programme

• planning for assessment and grading

• developing effective assignments

• building your team and teamwork skills

• developing student-centred learning and teaching approaches

• building key skills into your programme

• building in effective and efficient quality assurance systems.

The national programme of training we offer can be viewed on the Edexcel website (www.edexcel.org.uk). You can request customised training through the website or by contacting one of our advisers in the Professional Development and Training team via Customer Services on telephone 0870 240 9800 (calls may be recorded for training purposes) to discuss your training needs.

The training we provide:

• is active — ideas are developed and applied

• is designed to be supportive and thought provoking

• builds on best practice.


114

Annexe A

QCA codes

The QCA National Qualifications Framework (NQF) code is known as a Qualification Accreditation Number (QAN). This is the code that features in the DfES Funding Schedules — Section 96 and Section 97 and is to be used for all qualification funding purposes. Each unit within a qualification will also have a QCA NQF unit code.

The QCA qualification and unit codes will appear on the learner’s final certification documentation.

The QANs for qualifications in this publication are:

100/5692/0 Edexcel Level 2 BTEC First Certificate in Business

100/5691/9 Edexcel Level 2 BTEC First Diploma in Business

These qualification titles will appear on the learners’ certificates.

Learners need to be made aware of this when they are recruited by the centre and registered with Edexcel. Providing this happens, centres are able to describe the programme of study leading to the award of the qualification in different ways to suit the medium and the target audience.


115


116

Ann

exe

B

Gra

ding

dom

ains

Gra

ding

dom

ain

1 In

dica

tive

char

acte

rist

ics —

mer

it In

dica

tive

char

acte

rist

ics —

dis

tinct

ion

App

licat

ion

of k

now

ledg

e an

d un

ders

tand

ing

• • • • • •

• • • • •

Show

dep

th o

f kno

wle

dge

and

deve

lopm

ent o

f und

erst

andi

ng

in g

iven

situ

atio

ns(e

g ex

plai

n w

hy, m

ake

judg

emen

ts b

ased

on

ana

lysi

s).

App

ly a

nd/o

r sel

ect r

elev

ant c

once

pts.

App

ly k

now

ledg

e to

diff

eren

t con

text

s.

App

ly k

now

ledg

e to

non

-rou

tine

cont

exts

(ie

asse

ssor

se

lect

ion)

.

Mak

e co

mpa

rison

s.

Show

rela

tions

hips

bet

wee

n p

crite

ria.

Synt

hesi

se k

now

ledg

e an

d un

ders

tand

ing

acro

ss p

/m c

riter

ia.

Eval

uate

con

cept

s/id

eas/

actio

ns.

Ana

lyse

/rese

arch

and

mak

e re

com

men

datio

ns.

Judg

es im

plic

atio

ns o

f app

licat

ion

of k

now

ledg

e/

unde

rsta

ndin

g.

App

lies k

now

ledg

e an

d un

ders

tand

ing

to c

ompl

ex

activ

ities

/con

text

s.

Gra

ding

dom

ain

2 In

dica

tive

char

acte

rist

ics -

mer

it In

dica

tive

char

acte

rist

ics —

dis

tinct

ion

Dev

elop

men

t of p

ract

ical

an

d te

chni

cal s

kills

• • • • • •

• • • • • • •

Use

adv

ance

d te

chni

ques

/pro

cess

es/s

kills

succ

essf

ully

.

Act

und

er li

mite

d su

perv

isio

n/ d

emon

stra

te in

depe

nden

ce

(not

e: p

ass c

anno

t req

uire

supp

ort).

App

ly to

non

-rou

tine

activ

ities

.

Dem

onst

rate

with

in ti

me

and/

or re

sour

ce c

onst

rain

ts.

Prod

uce

varie

d so

lutio

ns (i

nclu

ding

non

-rou

tine)

.

Mod

ify te

chni

ques

/pro

cess

es to

situ

atio

ns.

Dem

onst

rate

cre

ativ

ity/o

rigin

ality

/ow

n id

eas.

App

ly sk

ill(s

) to

achi

eve

high

er o

rder

out

com

e.

Sele

ct a

nd u

se su

cces

sful

ly fr

om a

rang

e of

adv

ance

d te

chni

ques

/pro

cess

es/s

kills

.

Ref

lect

s on

skill

acq

uisi

tion

and

appl

icat

ion.

Just

ifies

app

licat

ion

of sk

ills/

met

hods

.

Mak

es ju

dgem

ents

abo

ut ri

sks a

nd li

mita

tions

of

tech

niqu

es/p

roce

sses

.

Inno

vate

s or g

ener

ates

of a

pplic

atio

n of

tech

niqu

es/p

roce

sses

fo

r new

situ

atio

ns.

BF0

1725

9 Sp

ecifi

catio

n –

Edex

cel L

evel

2 B

TEC

Firs

t Cer

tific

ate

and

BTE

C F

irst D

iplo

ma

in B

usin

ess

– Is

sue

1 –

Janu

ary

2006

11

7

Gra

ding

dom

ain

3 In

dica

tive

char

acte

rist

ics —

mer

it In

dica

tive

char

acte

rist

ics —

dis

tinct

ion

Pers

onal

dev

elop

men

t for

oc

cupa

tiona

l rol

es

• Ta

kes r

espo

nsib

ility

in p

lann

ing

and

unde

rtaki

ng a

ctiv

ities

.

• R

evie

ws o

wn

deve

lopm

ent n

eeds

.

• Fi

nds a

nd u

ses r

elev

ant i

nfor

mat

ion

sour

ces.

• A

cts w

ithin

a g

iven

wor

k-re

late

d co

ntex

t sho

win

g un

ders

tand

ing

of re

spon

sibi

litie

s.

• Id

entif

ies r

espo

nsib

ilitie

s of e

mpl

oyer

s to

the

com

mun

ity a

nd

the

envi

ronm

ent.

• A

pplie

s qua

litie

s rel

ated

to th

e vo

catio

nal s

ecto

r.

• In

tern

alis

es sk

ills/

attri

bute

s (cr

eatin

g co

nfid

ence

).

• M

anag

es se

lf to

ach

ieve

out

com

es su

cces

sful

ly.

• Pl

ans f

or o

wn

lear

ning

and

dev

elop

men

t thr

ough

the

activ

ities

.

• A

naly

ses a

nd m

anip

ulat

es in

form

atio

n to

dra

w c

oncl

usio

ns.

• A

pplie

s ini

tiativ

e ap

prop

riate

ly.

• A

sses

ses h

ow d

iffer

ent w

ork-

rela

ted

cont

exts

or c

onst

rain

ts

wou

ld c

hang

e pe

rfor

man

ce.

• Ta

kes d

ecis

ions

rela

ted

to w

ork

cont

exts

.

• A

pplie

s div

erge

nt a

nd la

tera

l thi

nkin

g in

wor

k-re

late

d co

ntex

ts.

• U

nder

stan

ds in

terd

epen

denc

e.

Gra

ding

dom

ain

4 In

dica

tive

char

acte

rist

ics —

mer

it In

dica

tive

char

acte

rist

ics —

dis

tinct

ion

App

licat

ion

of g

ener

ic a

nd

key

skill

s

• C

omm

unic

ates

usi

ng a

ppro

pria

te te

chni

cal/

prof

essi

onal

la

ngua

ge.

• M

akes

judg

emen

ts in

con

text

s with

exp

lana

tions

.

• Ex

plai

ns h

ow to

con

tribu

te w

ithin

a te

am.

• M

akes

adj

ustm

ents

to m

eet t

he n

eeds

/exp

ecta

tions

of o

ther

s (n

egot

iatio

n sk

ills)

.

• Se

lect

and

just

ify so

lutio

ns fo

r spe

cifie

d pr

oble

ms.

• Pr

esen

ts se

lf an

d co

mm

unic

ates

info

rmat

ion

to m

eet t

he

need

s of a

typi

cal a

udie

nce.

• Ta

kes d

ecis

ions

in c

onte

xts w

ith ju

stifi

catio

ns.

• Pr

oduc

es o

utpu

ts su

bjec

t to

time/

reso

urce

con

stra

ints

.

• R

efle

cts o

n ow

n co

ntrib

utio

n to

wor

king

with

in a

team

.

• G

ener

ate

new

or a

ltern

ativ

e so

lutio

ns to

spec

ified

pro

blem

s.

BF0

1725

9 –

Spec

ifica

tion

– E

dexc

el L

evel

2 B

TEC

Firs

t Cer

tific

ate

and

BTE

C F

irst D

iplo

ma

in B

usin

ess

– Is

sue

1 –

Janu

ary

2006

11

8

Annexe C

Key skills

All BTEC First qualifications include mapping and/or signposting of key skills. These are transferable skills, which play an essential role in developing personal effectiveness for adult and working life and in the application of specific vocational skills.

In each unit the opportunities for the generation of evidence for key skills are signposted. These are indicative links only. Tutors will need to become familiar with key skills specifications and their evidence requirements and they are advised not to rely on the signposting in the units when presenting key skills evidence for moderation. Centres should refer to the QCA website (www.qca.org.uk) for the latest key skills standards.

Key skills provide a foundation for continual learning. They enable and empower individuals who inevitably face a series of choices in work, education and training throughout their lives. Current and future initiatives such as learndirect, lifelong learning and widening participation all require a more flexible population in the workplace and key skills play a role in setting the framework.

Learners need the chance to show current and future employers that they can:

• communicate effectively, in a variety of situations, using a wide range of techniques

• work well with others — individuals or teams — so that work can be properly planned and targets met

• manage their own development, so that they are always ready to take on the challenges of change and diversification

• use number, not just within routine tasks and functions but to help them be more effective and efficient in all they do

• use ICT in a range of applications to support all aspects of their role

• solve problems in a variety of circumstances.


119

Key skills mapping – summary of opportunities suggested in each unit

Key skills Uni

t 1

Uni

t 2

Uni

t 3

Uni

t 4

Uni

t 5

Uni

t 6

Uni

t 7

Uni

t 8

Uni

t 9

Uni

t 10

N2.1

N2.2

N2.3

C2.1a

C2.1b

C2.2

C2.3

ICT2.1

ICT2.2

ICT2.3

LP2.1

LP2.2

LP2.3

PS2.1

PS2.2

PS2.3

WO2.1

WO2.2

WO2.3


120

BF0

1725

9 Sp

ecifi

catio

n –

Edex

cel L

evel

2 B

TEC

Firs

t Cer

tific

ate

and

BTE

C F

irst D

iplo

ma

in B

usin

ess

– Is

sue

1 –

Janu

ary

2006

12

1

Ann

exe

D

Nat

iona

l Occ

upat

iona

l Sta

ndar

ds/m

appi

ng w

ith

NVQ

s

The

follo

win

g gr

id m

aps t

he k

now

ledg

e co

vere

d in

the

Edex

cel L

evel

2 B

TEC

Firs

t Cer

tific

ate

and

BTE

C F

irst D

iplo

ma

in B

usin

ess a

gain

st th

e un

derp

inni

ng

know

ledg

e of

the

Leve

l 2 N

VQ

in C

usto

mer

Ser

vice

, Lev

el 2

NV

Q in

Bus

ines

s and

Adm

inis

tratio

n an

d th

e Le

vel 3

NV

Q in

Bus

ines

s Sta

rt U

p.

KE

Y

in

dica

tes t

hat t

he E

dexc

el L

evel

2 c

over

s all

of th

e un

derp

inni

ng k

now

ledg

e of

the

NV

Q u

nit

# in

dica

tes p

artia

l cov

erag

e of

the

NV

Q u

nit

a

blan

k sp

ace

indi

cate

s no

cove

rage

of t

he u

nder

pinn

ing

know

ledg

e

Uni

ts

1 2

3 4

5 6

7 8

9 10

1:

Giv

e cu

stom

ers a

pos

itive

impr

essi

on

of y

ours

elf a

nd y

our o

rgan

isat

ion

#

2:

Del

iver

relia

ble

cust

omer

serv

ice

#

3:

Dev

elop

cus

tom

er re

latio

nshi

ps

#

5:

Supp

ort c

usto

mer

serv

ice

impr

ovem

ents

6:

Dev

elop

per

sona

l per

form

ance

th

roug

h de

liver

ing

cust

omer

serv

ice

#

Lev

el 2

NV

Q in

C

usto

mer

Ser

vice

7:

Prom

ote

addi

tiona

l pro

duct

s or

serv

ices

to c

usto

mer

s

#

BF0

1725

9 –

Spec

ifica

tion

– E

dexc

el L

evel

2 B

TEC

Firs

t Cer

tific

ate

and

BTE

C F

irst D

iplo

ma

in B

usin

ess

– Is

sue

1 –

Janu

ary

2006

12

2

U

nits

1

2 3

4 5

6 7

8 9

10

201:

Car

ry o

ut y

our r

espo

nsib

ilitie

s at

wor

k

#

204:

Man

age

diar

y sy

stem

s

205:

Org

anis

e bu

sine

ss tr

avel

and

ac

com

mod

atio

n

206:

Dea

l with

vis

itors

#

219:

Use

a te

leph

one

syst

em

220:

Ope

rate

off

ice

equi

pmen

t

221:

Pre

pare

text

from

not

es

#

224:

Pro

duce

doc

umen

ts

#

Lev

el 2

NV

Q in

B

usin

ess a

nd

Adm

inis

trat

ion

225:

Wor

k ef

fect

ivel

y w

ith o

ther

peo

ple

#

1:

Che

ck h

ow su

cces

sful

you

r bus

ines

s id

ea w

ill b

e

2:

Che

ck y

our a

bilit

y to

run

the

busi

ness

3:

Che

ck w

hat l

aw a

nd o

ther

re

gula

tions

will

aff

ect y

our b

usin

ess

4:

Wor

k ou

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Wider curriculum mapping

Study of the Edexcel Level 2 BTEC Firsts in Business provides opportunities for the learner to develop an understanding of spiritual, moral, ethical, social and cultural issues as well as an awareness of environmental issues, European developments, health and safety considerations and equal opportunities issues.

The Edexcel Level 2 BTEC Firsts in Business make a positive contribution to wider curricular areas as appropriate.

Spiritual, moral, ethical, social and cultural issues

The specification contributes to an understanding of:

spiritual issues – learners can explore personal development, for example through the personal satisfaction gained from providing good customer service (Unit 2: Developing Customer Relations), their role as a valued member of a team or an organisation (Unit 5: People in Organisations) or their potential future value to society as a business owner (Unit 9: Exploring Business Enterprise and Unit 10: Starting a Small Business)

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moral and ethical issues – there are plentiful opportunities to develop debate on moral and ethical issues, such as the responsibility employers have for the employment and therefore the livelihood of others (Unit 1: Exploring Business Purposes and Unit 5: People in Organisations). Other opportunities include moral and ethical responsibilities to customers (Unit 2: Developing Customer Relations).

social and cultural issues – examples of discussion and debate related to social and cultural issues can be related to the social implications of working with others (Unit 5: People in Organisations), development of interpersonal skills (Unit 7) or the impact of manufacturing or providing products and services within local or regional communities (Unit 9: Exploring Business Enterprise and Unit 10: Starting a Small Business).

Environmental issues

Learners are led to appreciate the importance of environmental issues through the experience of the business sector, by discussing for example the disposal of waste and/or products that have reached the end of their useful life, the dependency of businesses on power supplies and their impact on the environment, as well as sector-specific issues, such as engineering waste, the disposal of cooking oils in the catering sector, or the recycling of paper and other materials in the news and publishing industries.

European developments

Much of the content of the Edexcel Level 2 BTEC Firsts in Business applies throughout Europe even though the delivery is in a UK context. The European dimensions of business can be addressed in Unit 2: Developing Customer Relations by considering the implications of business dealings with European customers, Unit 4: Business Communication through issues such as language barriers and differing time zones, or Unit 9: Exploring Business Enterprise and Unit 10: Starting a Small Business, by considering issues relating to European markets for small businesses.


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Health and safety considerations

The Edexcel Level 2 BTEC Firsts in Business are practically based and so health and safety issues are encountered throughout the units. Learners will develop awareness of the safety of others as well as themselves in all practical activities. Learners will also explore health and safety issues across the business sector, particularly in Unit 5: People in Organisations.

Equal opportunities issues

Equal opportunities issues are implicit throughout the Edexcel Level 2 BTEC Firsts in Business.

Wider curriculum mapping

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Spiritual

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Social and cultural

Environmental issues

European developments

Health and safety considerations

Equal opportunities issues

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Further copies of this publication are available from Edexcel Publications, Adamsway, Mansfield, Notts, NG18 4FN Telephone 01623 467467 Fax 01623 450481 Email: [email protected] Publications Code BF017259 January 2006 For more information on Edexcel and BTEC qualifications please contact Customer Services on 0870 240 9800 or http://enquiries.edexcel.org.ukor visit our website: www.edexcel.org.uk Edexcel Limited. Registered in England and Wales No. 4496750 Registered Office: One90 High Holborn, London WC1V 7BH

mailto:[email protected]

mailto:[email protected]
