Business Studies

"Business Studies is everything I expected and more! The lessons are interesting, the environment is
friendly and the results are great" Camilla Knox – (Hurtwood student.)

"When I first took Business Studies it was peripheral to my aims; however, it is now crucial to my future plans"
Charlie Chen – (Hurtwood student).

Business Studies – what is the subject about?

Reading a subject specification is, generally, rather tedious. What follows is not the Business Studies syllabus but a series of business situations, which our students are encouraged to analyse and discuss during the course. These give an insight into the true core of the subject – decision making within organisations.

• How does Coca-Cola “think globally but act locally”?
• Is the Body Shop right to adopt "green" policies or would it make higher profits if it sold less environmentally friendly products?
• Should BP be concerned about the company’s health and safety record?
• Is the Government right to allow the advertising of toys?
• How should UK firms respond if Britain joins the Euro currency?
• How could Ford improve the motivation of their workers to produce higher quality cars?

Taking the right decisions is the key factor which determines business success. The course concentrates on how managers can take effective decisions and the information they need to make the right choices. The information that managers need includes:

Enterprise

This section looks at how new businesses are set up and the importance of Business Plans to a successful enterprise. The sources of new business ideas are discussed and the significance of market research and location decisions are assessed.

Marketing

This section investigates different marketing strategies and tactics that business can adopt. Students bring their own experience of marketing to the lessons and the impact current campaigns can have on consumer behaviour is discussed. What effect will e-commerce have on retail shops? Would Levis sell more jeans if they lowered the prices of them? Is the swing to "organic foods" likely to continue? How can HMV reverse declining sales and profits as competition from music downloads increases?

 Accounting and Finance

All businesses need to know if they are making a profit or a loss. We learn how to analyse company accounts and consider the most suitable sources of finance for business activity. How can businesses "massage" their accounts to make performance look better? Should a firm continue to make a product even if it appears to make a loss? How can businesses raise more finance by "going public"?

Human Resources.

The management of people is a very important aspect of all successful businesses. What motivates workers? How can they be encouraged to contribute fully to the business? Will Coca Cola need to employ more or fewer workers in the coming year? Which forms of communication are most effective? Why are an increasing number of workers joining Trade Unions?

Operations Management.

This is concerned with how resources are combined to produce high quality goods and services. Business location decisions and Japanese production methods are two of the issues that are considered. Why do Morgan cars still use "job" production when most other car manufacturers use mass production techniques? Why have so many foreign businesses established themselves in South Wales? Do Japanese forms of management, such as "kaizen", increase productivity? How significant is new product innovation to a business such as Dyson? An important aspect of Operations Management that is now focused on by the new specification is the importance of customer service and good supplier relationships.

External Influences.

Businesses do not operate in a vacuum. They have pressures imposed on them by external forces such as legal constraints, environmental and social pressures and the economic policies of government. Will all businesses be equally affected by an increase in interest rates? Should firms be forced to limit the pollution their method of production creates? How will rising consumer incomes change the pattern of expenditure? Why are advertisers introducing a code of practice to limit advertising to children?

"The course is very intensive and covers a lot of areas but it is interesting and manageable. As we are well taught, all of the main issues become clear" – Al. Sawtell - Hurtwood student.

Business Studies – how is it taught?

The team of Business Studies teachers at Hurtwood approaches the teaching of their subject in a very stimulating and imaginative way. No two lessons are the same. As the subject is concerned with real issues happening in "real time" there is extensive use of practical case studies. These illustrate the application of important concepts and principles.  Case studies are selected from a variety of business activity from ipods and mobile phones to chocolate bars and Jaguar cars.

It is the case study approach which provides us with much of the problem solving material that is used during the course. The analytical and decision making skills developed by the students as a central part of the course will prove to be a transferable skill for any student taking the course, whether or not their future lies in the commercial world. Students are encouraged to develop a critical awareness of the intricate and complex business world in which every challenge is always different, to think laterally and to question the information that is given.

Apart from traditional learning methods the department makes heavy use of role play and simulations to help students gain a deeper understanding of practical Business Studies.  We aim to prepare Business Studies students for the future challenges that their careers will present.  It is not unusual for students to give board style presentations using power point and other visual aids.  It is this practical involvement which appeals so much to our students as well as the high standard of academic teaching.

What do we expect?

We would expect you to have already reached GCSE standard in English and Mathematics as well as having a genuine interest in the commercial world.  Business Studies is synonymous with decision making and so it really helps if you enjoy problem solving and researching facts and figures.  We will help you to develop and present clear logical arguments but you must be able to see both sides of argument and accept that in the world of business, issues and strategic decisions are seldom to be viewed in black and white.

Below is an example of one of our A2 student’s answer to a mock exam question.  This question was based on a case study of a small supermarket which is struggling to compete with larger supermarket chains who are forcing their suppliers to give them ever lower prices.

The question was:

“Some suppliers question the ethics of large supermarkets forcing “rock bottom” prices on them and “driving them out of business”. To what extent is the supermarkets policy justified?

The supermarkets’ strategy may be justified because as they force low prices on suppliers, the supermarkets can charge low prices to their consumers – which is definitely of benefit to them. Therefore the supermarkets sell a lot of products and the demand is high so they will require the suppliers to provide a lot more goods. This form of mass marketing means that the supermarket companies will make small individual profits from each item but large profits overall. They are justified in doing this as they are competing in a mass market where prices are very competitive.

As long as the suppliers are efficient and reduce their costs like supermarkets have been doing they should survive so many people would say that the policy is ethical. A lot of suppliers are very dependent on big orders from one of the major supermarkets for survival and this order would enable them to benefit from economies of scale. If the supplier cannot achieve high levels of efficiency then the supermarket would give the orders somewhere else so the supplier would be in an even worse situation.

However, the policy may be unethical especially if the suppliers are small firms and they simply cannot reduce costs enough to meet the “rock bottom” price demands of the supermarkets. However, if a supermarket paid moe for its supplies than it would have to increase prices to consumers and would lose sales. Also, not so much of the product would be bought as the demand is likely to be price elastic. Perhaps whether the policy is ethical or not depends on whether supermarkets do lower prices to consumers. If they do not and just make a larger profit for their shareholders than many observers would argue that they were using their market power unethically.

All of this has come about because of the very competitive market supermarkets are in. If a supermarket started charging higher prices for exactly the same products that were in a competitor’s shop 1 mile away, customer would shop from the other store. This would reduce profits and the business may have to make staff redundant which may not be ethical itself. The alternative might be to enter a niche section of the food market and pay suppliers higher prices for higher quality goods. However, is this what most consumers actually want?

It has to be said that although it may be considered unethical to work suppliers to full capacity for little return they can always say no to the order or refuse to accept the price insisted on by the supermarket. However, supermarkets are in a very strong market position and it would be very threatening for a supplier to lose such a large customer so they are in a no-win situation which is why the policy is unethical.

Can you see how the student managed to present both sides of the argument?  Impressively the student also showed excellent skills of analysis and application of theory to the case study as well as a very good knowledge of her subject

Business Studies – what else can I expect from the course?

“The Land Rover trip was amazing!  The production line was full of robots with so many departments doing many different jobs – how on earth do you manage such a factory!”

Saif Edu – Hurtwood student

‘I had no idea how much time, work and effort goes into making a shampoo!’

Sam Clifford – Hurtwood student

Putting business issues into a practical context is a very important way of raising student awareness of the relevance of the subject and the importance of the business sector to all of our lives. Several trips are arranged each year. Although they are not "holidays", as their purpose is closely geared to the demands of the syllabus, they do provide an excellent opportunity to get to know all of our students and to begin to develop qualities of responsibility, leadership and self discipline.

We have been to British Steel, Body Shop, Denbies, Panasonic, King and Barnes and Land Rover.

"I use the Internet every day in one of the business rooms. I send many e-mails to my friends but I also use it for research into my projects and business assignments. It is so much more up to date than using the textbook" Jason Mohan - Hurtwood student.

The expanding computer facilities at Hurtwood enable Business Studies students to have many opportunities to use IT in the ways described above. Modern software packages also offer the option of allowing interactive learning based on business simulations.

“I still use my Business Studies notes from Hurtwood at University. But the main benefits I gained from the course were the transferable skills of data analysis, calculation, problem solving and making justified business decisions. I gained these on the “A” level course. Jenny Woods, former Hurtwood student.

Business Studies – How is it examined?

The "AS" qualification is examined by two short written papers at the end of the first year. There will be an opportunity to retake these, if necessary, the following year, as separate modules.

The "A" level qualification will be examined during and at the end of the second year with two further written examinations. There is no coursework at either AS or A level.

AS Examinations:

Unit 1 – Planning and Financing a Business

This has two elements.

• Starting a Business. This gives an introduction to the subject and an overview of the activities involved in setting up a new business. The main focus is on enterprise.
• Financial Planning. This covers key financial concepts such as cash flow and budgeting and introduces the basic relationships between finance and other business functions.

Unit 2 – Managing a Business

This has four elements.

• Finance. Using budgets and improving cash flow and profits
• People. Organisational structure, recruitment, selection, training and motivation
• Operations management. Operational decisions on issues such as quality, customer service, suppliers and technology.
• Marketing and Competition. Designing and using an effective marketing mix under different competitive conditions.

A2 Examinations:

Unit 3. Strategies for Success

This has four elements:

• Financial strategies and accounts. Understanding and analysing published accounting statements. Investment decisions.
• Marketing strategies. Analysing markets and selecting successful marketing strategies and developing marketing plans.
• Operations strategies. Operational issues such as innovation, location, improving operational efficiency.
• Human Resources strategies. Workforce planning, adapting organisational structures and developing successful employee relations.

Unit 4. The Business Environment and Managing Change

The questions in the first section will be based around a pre-released research task such as “The impact of globalisation on business”.

The second section has three main elements:

• Mission, aims and objectives. The purpose and nature of corporate strategies and stakeholder perspectives on these.
• External influences. The effects of changes in the economic, political, social, ethical and technological environment and the potential response of businesses to these.
• Managing change. Planning for change, leadership and corporate culture, making strategic decisions and managing change.

 

"As I passed AS level with grade A’s on two papers I was not required to retake these in the second year. The additional revision sessions provided by the department helped me greatly" Joe Chapman – Hurtwood student.

Business Studies – The “A” level results over the last five years

Grade A 55% Grade B 43% Grade C 2%

Business Studies – The future

Most Hurtwood Business Studies students progress to University to read a business related degree. We are able to give detailed and up to date advice on course and university choices. Although it is not essential to have taken Business Studies at "A" level to become a business undergraduate most students report back to us to say that their "A" level notes, assignments and projects were invaluable during the first year of the course. Even for undergraduates reading non business subjects the feedback is very clear – the skills of teamwork, problem solving and data analysis developed during the "A" level Business Studies course prove to be invaluable assets for the study of any subject.

Business Studies – The team

There are four members of the Business Studies team.

Peter Stimpson is Head of Department. He is a Principal Examiner and Reviser for three of the leading examination boards. He is an author of several Business Studies textbooks including the endorsed AQA texts for the 2010 specification. He has recently been appointed as Principal Examiner for the University of Cambridge Pre-U course and is pleased to have the opportunity to help develop this prestigious new qualification.

Dave Fonseka is second in the department. An invaluable member of the team, he has gained experience in teaching at a Sixth Form College as well as Hurtwood. He is the Housemaster for all Hurtwood Day students. He also has responsibility for Outdoor Education in the school and will encourage as many new students as possible to gain leadership and survival skills in the Welsh Mountains. Ideal for potential entrepreneurs!

Peter Fromow is a New Zealander whose experience is primarily in teaching senior level Economics and Business Studies. At Hurtwood he is teaching AS and GCSE Business Studies. He also has a strong interest in golf, sailing and outdoor education and assists Dave Fonseka with leading the expeditions to Snowdonia.

Ian Barter is the youngest member of the department but he has already been appointed as a Housemaster. He coaches the football squad and under his guidance the first eleven has actually won some matches this season! Ian is the IT expert in the department and he has made some valuable additions to our intranet based learning resources.