VCE Business Management 2017-2021
Summary of changes to the study design
General changes
The revised VCE Business Management study design:
 Clarifies the key knowledge and key skills dot points to remove ambiguity
 Reorganises content across the four units to better reflect the progression from a business idea
and planning a business, to establishing, then managing and finally dealing with change within
the business environment. This reorganisation reduces duplication across units and provides
students with a contemporary business approach.
 Updates the motivational theories and change management theories that are mandated for
study.
 Emphasises management regardless of business size. The Unit 3 and 4 mandated study of
large-scale organisations has been removed. Contemporary examples and case studies
now focus on businesses of any size.
 Mandates that contemporary examples and case studies must be drawn from the past four (4)
years.
Specific changes
Unit 1: Planning a business
Unit 1 focuses on how businesses are formed and the process of developing a business idea
including the planning involved to develop the idea into a business reality. The external and
internal factors affecting the operations of a business are considered.
i.
Area of Study 1: The business idea
Additional content:
a.
b.
c.
d.
Sources of business opportunity – business innovation and entrepreneurship
Characteristics of successful business managers and entrepreneurs
Relationship between business opportunities and business concept development
Methods to develop a culture of business innovation and entrepreneurship
ii. Area of Study 2: External environment
Additional content:
a.
b.
c.
d.
e.
f.
g.
Overview of factors within external environment
Key legal and government regulations affecting businesses in planning stage
Societal attitudes and behavior
Economic conditions
Technological issues
Global issues
Corporate social responsibility (CSR)
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Review of VCE Business Management
iii. Area of Study 3: Internal environment
Additional content:
a.
b.
c.
d.
Business resource needs
Sources of finance (not an option)
Types of business structure
Types of business models
Unit 2: Establishing a business
Unit 2 focuses on establishing a business following the planning stage and involves governance
requirements as well as making decisions about staffing the business and establishing a customer
base.
i.
Area of Study 1: Legal and financial requirements
Additional content:
a. Overview of legal requirements when establishing a business
b. Importance of establishing bank accounts, financial record keeping
ii. Area of Study 2: Marketing the business
Additional content:
a. The 7Ps model of marketing
b. Customer relations strategies
iii. Area of Study 3: Staffing a business
Additional content:
a. Relevant content from employment cycle when establishing staffing in a business
b. Employer and employee expectations
Unit 3: Managing a business
Unit 3 focuses on the key processes and issues concerned with managing a business efficiently
and effectively to achieve the business objectives.
i.
Area of Study 1: Business foundations
a. Types of businesses to address are detailed
b. Areas of management are linked to the achievement of objectives
c. Management skills are listed
ii. Area of Study 2: Managing employees
a.
b.
c.
d.
Hierarchy of Needs (Maslow) – needs-based theory
Goal-setting Theory (Locke & Latham 1984) – goal setting theory
Four Drives Theory ( Lawrence & Nohria 2002) – contingency theory
The key knowledge dot points covering workplace relations have been updated and written
in a manner that enables students to study current regulations, taking account of any
changes which may be instituted.
iii. Area of Study 3: Operations management
a. Strategies detailed
b. Global considerations:
 Global sourcing of inputs
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 Overseas manufacture
 Global outsourcing
 Overview of supply chain management
Unit 4: Transforming a business
Unit 4 focuses on the business’s need to adapt and change to meet their objectives. The need to
review data to determine performance and then develop strategies to manage change in the most
effective way is considered.
i.
Area of Study 1: Reviewing performance – the need for change
a. Force Field Analysis (Lewin)
b. Porter’s Generic Strategies 1985 – lower cost and differentiation
ii. Area of Study 2: Implementing change
a. Management strategies to respond to KPIs and to seek new business opportunities both
domestically and globally
b. Principles of the Learning Organisation – (Senge 1990)
c. Key principles of the Three Step Model (Lewin 1947)
d. Importance of KPIs to evaluate the effectiveness of business transformation
Assessment
Outcome statements in all areas of study across Units 1 to 4 have been altered to reflect the focus
of the unit.
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Units 1 and 2 Outcome statements
Outcome Statements
Assessment
Unit 1
Unit 1
Area of study 1
Suitable tasks for assessment may be selected from the
following:
Describe how and why business ideas are created
and developed, and explain the methods by which
a culture of business innovation and
entrepreneurship may be fostered in a nation.
Area of study 2
Describe the external environment of a business
and explain how the macro and operating factors
within it may affect business planning.
Area of study 3









a case study analysis
a business research report
development of a business plan and/or feasibility
study
an interview and a report on contact with business
a school-based, short-term business activity
a business simulation exercise
an essay
a business survey and analysis
a media analysis.
Describe the internal business environment and
analyse how factors from within it may affect
business planning.
Outcome Statements
Assessment
Unit 2
Unit 2
Area of study 1
Suitable tasks for assessment may be selected from the
following:
Explain the importance when establishing a
business of complying with legal requirements and
financial record keeping, and establishing effective
policies and procedures.



Area of study 2
Explain the importance of establishing a customer
base and a marketing presence to achieve the
objectives of the business, analyse effective
marketing and public relations strategies and
apply these strategies to business-related case
studies.






a case study analysis
a business research report
development of a business plan and/or feasibility
study
an interview and a report on contact with business
a school-based, short-term business activity
a business simulation exercise
an essay
a business survey and analysis
a media analysis.
Area of study 3
Discuss the staffing needs for a business and
evaluate the benefits and limitations of
management strategies in this area from both an
employer and an employee perspective.
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Unit 3 Outcome statements and assessment
Outcomes
Marks allocated
Outcome 1
Describe the key characteristics of
businesses and stakeholders, and
analyse the relationship between
corporate culture, management
styles and management skills.
20
Outcome 2
Explain theories of motivation and
apply them to a range of contexts,
and analyse and evaluate
strategies related to the
management of employees.
The student’s performance on
each outcome is assessed using
one or more of the following
formats:
• A case study
• Structured questions
• An essay
• A report
• a media analysis
40
Outcome 3
Analyse the relationship between
business objectives and operations
management, and propose and
evaluate strategies to improve the
efficiency and effectiveness of
business operations.
Total marks
Assessment tasks
40
100
*School-assessed Coursework for Unit 3 contributes 25 per cent.
Unit 4 Outcome statements and assessment
Outcome
Outcome 1
Explain the way business change
may come about, use key
performance indicators to analyse
the performance of a business,
discuss the driving and restraining
forces for change and evaluate
management strategies to position
a business for the future.
Outcome 2
Evaluate the effectiveness of a
variety of strategies used by
managers to implement change
and discuss the effect of change on
the stakeholders of a business.
Marks allocated
Assessment tasks
60
The student’s performance on
each outcome is assessed using
one or more of the following
formats:
• A case study
• Structured questions
• An essay
• A report
• a media analysis
40
Total marks
*School-assessed Coursework for Unit 4 contributes 25 per cent.
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