Scottish Qualification Authority
Higher National Diploma in Business Management
Syllabus Guide
Saegis Campus
135 S. De S.
Jayasinghe Mawatha,
Kohuwala, Nugegoda,
Sri Lanka
+94 (0)11 7430000
+94 (0)77 0430000
www.saegis.edu.lk
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Content
Page
Unit Sequence
3
Module Content
Semester 01
1.
Managing People and Organisations
(F84T 34)
5-7
2. Economic Issues: An Introduction (F7J8 34)
8-9
3. IT: Applications Software (D75X 34)
10
4. Business Accounting (F84M 34)
11-14
5. Marketing : An Introduction (F7BX 34)
15-16
6. Business Law: An Introduction (F84P 34)
17-18
7. Study Skills
19
Semester 02
1. Behavioral Skills for Business (F84L 35)
21-24
2. IT in Business : Spreadsheets (F84V 34)
25-26
3. Business Contractual Relationships (F84N 34)
27-28
4. Business Culture and Strategy (F7J7 35)
29-31
5. Economics 1 : Micro and Macro Theory and Application (F7J6 35)
32-33
6. Preparing Financial Forecasts(F84R 35)
34-35
2
Unit Sequence
Unit
Code
SCQF Level
Managing People and Organisations
F84T 34
7
Economic Issues: An Introduction
F7J8 34
7
IT: Applications Software
D75X 34
7
Business Accounting
F84M 34
7
Marketing: An Introduction
F7BX 34
7
Business Law: An Introduction
F84P 34
7
Behavioural Skills for Business
F84L 35
8
IT in Business: Spreadsheets
F84V 34
7
Business Contractual Relationships
F84N 34
7
Business Culture and Strategy
F7J7 35
8
Economics 1: Micro and Macro Theory and
Application
F7J6 35
8
Preparing Financial Forecasts
F84R 35
8
Semester 02
Semester 01
Unit Title
Credit points and level: 2 HN credits at SCQF level 7: (16 SCQF credit points at SCQF
level 7*)
*SCQF credit points are used to allocate credit to qualifications in the Scottish Credit and
Qualifications Framework (SCQF). Each qualification in the Framework is allocated a number of
SCQF credit points at an SCQF level. There are 12 SCQF levels, ranging from Access 1 to
Doctorates.
3
Semester 01
4
Unit title: Managing People and Organisations
Unit code: F84T 34
Outcome 1
Explain the characteristics and purpose of the organisation and its environment .
Knowledge and/or Skills
• Types of organisation
• Formal and informal organisation
• Organisational goals, objectives, and policies
• Open Systems Theory
• Stakeholder Theory
• Strategies for organisational control
This Outcome can set the scene by providing candidates with an overview of the basic
nature and functioning of different types of organisation. The relationship between
objectives, goals and policies, the influence of the external environment and internal and
external stakeholders will enable candidates to develop an understanding of the context
within which organisations function. Child’s strategies of control (personal centralised,
bureaucratic, output and cultural) may be linked to types of organisation (such as
manufacturing, public sector, voluntary sector, etc) when delivering this Outcome.
Outcome 2
Analyse factors that influence workplace performance.
Knowledge and/or Skills
• Nature and theories of motivation
• Job performance
• Nature and theories of teamwork
This Outcome looks at individual performance and motivation. Again it is important to
relate the theories to specific situations. There are a wide range of different theoretical
approaches to motivation and to team work. The following gives some guidance on ones
that may be useful. It may not be appropriate to cover all the following and deliverers
may prefer to substitute alternative theories and approaches to those below.
• Content theories of motivation: Herzberg; Maslow; Alderfer.
• Process theories of motivation: equity theory; goal theory; expectancy theory.
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Individual differences which affect job performance include ability, perception,
learning and attitude formation and change.
Methods of improving job performance: job design, empowerment, autonomy,
work organisation, selection, training, financial and non-financial rewards.
Teamwork: Belbin’s team role theory; stages of group development — Tuckman.
Factors affecting team cohesion and performance: consultation; participation;
communication; clarity of roles; team size; team objectives
Outcome 3
Analyse factors that influence managerial performance.
Knowledge and/or Skills
• Management roles and activities
• Managerial effectiveness
• The nature and theories of leadership
•
Roles and activities of managers: Mintzberg’s roles; Fayol — planning, organising,
command, co-ordinating, controlling; Drucker — setting objectives, organising,
motivating and communicating, measuring, developing people; Naylor’s duties of
management (achieving objectives, working with and through people, making the
most of available resources; balancing equity, efficiency and effectiveness).
•
Measures of managerial effectiveness: efficiency (eg budgetary targets); economy
(eg cost of inputs); effectiveness (eg productivity, meeting profit targets, quality
standards); equity (eg measures of employee satisfaction).
•
Approaches to management: McGregor’s Theory X and Theory Y; Likert’s model
of management systems; Ouchi’s Theory Z.
•
Behavioural theories of leadership: Adair; Ohio Studies; task and people
orientation; managerial grid; Tannenbaum& Schmidt.
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Contingency theories of leadership: Hersey & Blanchard; Fiedler; Vroom &Yetton.
Transformational theories of leadership: Bass; Bennis &Nanus.
The content of this Unit should be kept relevant to candidates through the
appropriate use of examples that include organisations of different size, operating
in different markets and from the public and private sectors.
6
Outcome 4
Identify and compare alternative approaches to organising people and activities within
the workplace .
Knowledge and/or Skills
• Forms of organisational structure
• Types of structural relationship
• Contingency approach
•
Outcome 4 looks at the alternative methods by which work organisations can be
structured and should highlight that in a dynamic environment, to provide quality
through effective performance, many organisations have had to adapt and redesign their method of people management and organisation.
•
Candidates should be aware of different ways in which organisational activities
can be divided and grouped together such as functional, product/service or
geographical. Candidates should develop an understanding of the difference
between line, staff, functional and lateral relationships within an organisation and
identify and describe examples of authority, responsibility and delegation.
•
They should be familiar with the various forms of organisational structure. The
contingency approach can be used to demonstrate how the structure of an
organisation may be affected by factors such as task, technology, size and its
environment.
•
The critical requirement is that candidates should be able to apply the concepts
that they have studied to the situation of a particular organisation.
7
Unit title: Economic Issues: An Introduction
Unit code: F7J8 34
Outcome 1
Explain the allocation of resources within the economy.
Knowledge and/or Skills
• The basic economic problem
• Opportunity cost
• Determinants of demand and supply
• Interaction of demand and supply
• Price and income elasticity
Candidates will need to provide evidence to demonstrate their Knowledge and/or Skills
by showing that they can:
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explain with an example the basic economic problem
explain with an example the concept of opportunity cost
identify changes to demand and supply when two determinants for each are
altered
explain with the aid of a diagram/graphical information the interaction of demand
and supply in a given scenario
explain the concepts of price elasticity of demand and income elasticity of demand
in a given scenario
Outcome 2
Explain the theory of National Income.
Knowledge and/or Skills
• Circular flow of income
• Injections and withdrawals
• Multiplier
• Measurement of national income
• Comparison of national income between countries.
• National income growth measured in monetary and real terms
Each time the Outcome is assessed candidates will need to provide evidence to
demonstrate their Knowledge and/or Skills by showing that they can:
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Create a clear diagram of the Circular Flow of Income with labels showing
injections and withdrawals and with reference to this diagram explain the
operation of the circular flow.
Describe the Injections and Withdrawals from the Circular Flow.
Describe three different ways that national income is measured and a difficulty
associated with each method.
Explain the multiplier effect on national income.
Identify and explain four difficulties in comparing national income between
countries.
Explain national income growth both in monetary and real terms.
Outcome 3
Explain and evaluate the role of government policy in the UK market
Knowledge and/or Skills
• The role of government in market failure
• Current Government policy
• Government policy instruments
• Evaluation of Government policy
Evidence Requirements
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Explain the role of government in market failure
Select one current government policy on either welfare, competition or the
environment, and accurately explain the policy selected
Identify and describe the instruments used to achieve the policy
Evaluate the success or failure of the policy in relation to its use within the UK
For Outcome 3 the role of government in the economy should be considered. Why
markets fail and how governments correct this failure should be addressed.
By examining welfare, competition and environmental policy, the instruments of
government and those particular to these policies can be explained and the effectiveness
be evaluated. Relating this to current policy, eg health care for the elderly; the public
transport debate, takeovers in the banking sector, allows candidates to evaluate the
policies in a real and relevant environment.
9
Unit Title: Information Technology: Applications Software 1
Unit Code: D75X 34
Outcome 1
Operate a range of IT equipment independently, giving attention to security and to other
users
Knowledge and/or skills
• The different components of a computer system and how to use them, (ie mouse or
other pointing device, keyboard, monitor, disk drive, processor, printer, scanner, etc)
• The functions of tools such as file managers, print managers, control panels and how to
use these
• The ways in which data can be kept secure, (eg encryption, passwords, back ups, virus
protection) and how security procedures can be used to meet the needs of all users of
a computer system
• The causes of some common software and hardware problems, (eg cable connections,
device settings, software option settings) and what action to take to resolve these
Outcome 1 looks at the components of hardware, the functions of operating system tools
and how these are used. Data security measures, resolving common hardware and
software problems are also pre-eminent. All of the elements should be taught in the
context of giving attention to the needs of other users of a computer system.
Outcome 2
Use a range of software application packages to meet complex information requirements
Knowledge/Skills
• Methods for assessing information requirements and designing solutions using IT
• How to use straightforward and complex features of a range of software application
packages (these can be word processing, spreadsheet, database, simulation, graphics,
communications, (ie Internet, intranet, email, etc), audio/music, animation, video,
multimedia, desktop publishing, data logging and retrieval, control or other packages)
• How to integrate data types within a software application package
• How to integrate information from more than one software application package
• The content and search facilities of a range of computer data sources
• Factors to consider when working out a search strategy when using a computer data
source
• How to extract information from a local and a remote computer data source
10
Unit title: Business Accounting
Unit code: F84M 34
Outcome 1
Prepare final accounts, of a limited company, for internal use .
Knowledge and/or Skills
• Profit and loss account
• Balance sheet
• Adjustments to the final accounts
•
Candidates will need to provide evidence to demonstrate their Knowledge and/or Skills
by showing that they can:
•
•
Prepare a profit and loss account and balance sheet, from a year end trial balance,
for a limited company, for internal use
Incorporate six year end adjustments into the accounts — accruals, prepayments,
depreciation, closing stock, debenture interest and corporation tax
Outcome 1looks at the purpose and use of financial statements.
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Final accounts: profit and loss accounts, balance sheets.
Adjustments: accruals, prepayments, depreciation, closing stock, dividends, debenture
interest, corporation tax.
Presentation and terminology used within final accounts in line with current
practice/legislation
Outcome 2
Prepare a cash budget and calculate breakeven point .
Knowledge and/or Skills
• Cash budgets
• Fixed and variable costs
• Break-even point
Candidates will need to provide evidence to demonstrate their Knowledge and/or Skills
by showing that they can:
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prepare a cash budget from sales and cost information provided. costs should
include: purchases (cash and credit), raw materials, labour hours and rates,
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variable production overhead rate, fixed costs, fixed production overheads. sales
should include both cash and credit sales.
calculate the opening and closing cash balances
•
calculate the breakeven point
Outcome 2covers the preparation of cash budgets and the calculation of break-even point.
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Cash budgets.
Fixed and variable costs — costs should include the following: purchases (cash and
credit), raw materials, labour hours and rates, variable production overhead rate, fixed
costs, fixed production overheads. Sales should include both cash and credit sales.
Break-even point.
Outcome 3
Identify the users of financial information and the purposes for which they require the
information.
Knowledge and/or Skills
• Users of financial information
• Purposes of financial information
• Sources of financial information
Candidates will need to provide evidence to demonstrate their Knowledge and/or Skills by
showing that they can:
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Identify at least four relevant users of financial information from: present shareholders,
potential shareholders, short-term creditors, long-term creditors, authorities, competitors,
employees, analysts, and management
Describe the purpose for which each user requires this information
Identify the source of relevant information for each user
Outcome 3looks at the users of financial information and the purposes for which they require the
information.
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Users of financial information: present shareholders, potential shareholders, short term
creditors, long term creditors, authorities, competitors, employees, analysts and
management.
Sources of financial information — profit and loss account, balance sheet, cash flow
statement, ratios, and budgets.
Purpose for which the financial information may be used.
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Outcome 4
Describe the various sources of finance available to a business organization.
Knowledge and/or Skills
• Sources of finance
• Categories of finance
Candidates will need to provide evidence to demonstrate their Knowledge and/or Skills by
showing that they can:
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With reference to a particular balance sheet, identify the following sources of finance:
current liabilities, loan capital, share capital, and retained profit
Describe the characteristics of each source of finance identified
Categorise each source into short or long term
Make appropriate recommendations for further sources of finance linked to a specified
purpose and in accordance with good financial management
Outcome 4covers the sources of finance.
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Sources of finance: current liabilities, loan capital, share capital, and retained profit.
Characteristics of the sources of finance.
Short and long term finance.
Outcome 5
Analyse the performance and financial position of a business.
Knowledge and/or Skills
• Cash flow statements
• Accounting ratios
• Analysis of final accounts
Candidates will need to provide evidence to demonstrate their Knowledge and/or Skills
by showing that they can:
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Identify the major inflows and outflows of cash from a given cash flow statement.
Calculate at least six key accounting ratios covering the areas of profitability,
liquidity, efficiency and capital structure
Analyse the final accounts and cash flow statement of the business and make
recommendations, including appropriate financing options for the future, to
improve the business’s performance and financial position based on those findings
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Outcome 5involves the analysis of business performance.
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Cash flow statements: cash inflows and cash outflows.
Accounting ratios — profitability, liquidity, efficiency and capital structure.
14
Unit title: Marketing: An Introduction
Unit code: F7BX 34
Outcome 1
Explain the nature of marketing and its importance in organisations.
Knowledge and/or Skills
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marketing concept
the marketing environment
market research and information
segmentation and targeting
Candidates will need to provide evidence to demonstrate their Knowledge and/or Skills
by showing that they can:
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identify the key characteristics of the marketing concept
explain an organisation’s micro and macro environment
explain why market research and information is important to organisations
provide two examples of how market research information is collected and used,
consisting of one quantitative research technique and one qualitative research
technique
explain the importance and the process of segmentation and targeting in
marketing
Outcome 2
Explain marketing decisions for a product based and a service organization.
Knowledge and/or Skills
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the marketing mix for products
the marketing mix for services
impact of changing market conditions on marketing decisions
Candidates will need to provide evidence to demonstrate their Knowledge and/or Skills
by showing that they can explain the role of the marketing mix.
15
For a given situation, explain marketing theory in relation to:
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product mix decisions
channels of distribution
pricing methods
the promotional mix
the importance of people, process and physical evidence in the marketing of
services
how the marketing mix responds to changing market conditions
16
Unit title: Business Law: An Introduction
Unit code: F84P 34
Outcome 1
Explain the main sources of Scots business law.
Knowledge and/or Skills
• Legislation
• Judicial precedent
• Institutional writers
• Custom
In Outcome 1 it is recommended that the sources of law that are covered are:
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European Legislation, particularly Regulations and Directives, and their sources;
the European Commission, the Council of the European Union and the European
Parliament
legislation of the Westminster Parliament
legislation of the Scottish Parliament
precedent, particularly in contract and delict
the influence of institutional writers on business law in Scotland
custom
Outcome 2
Explain the law of contract
Knowledge and/or Skills
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Creation of a contract
Defective contracts
Misrepresentation
Breach of contract
Remedies for breach of contract
the nature of a contract
the difference between contracts and non-binding agreements
the formation of a contract; invitation to treat; offer; acceptance, including the
problems associated with communication of acceptance; counter-offer
the regulation of unfair contract terms
the meaning of ‘void’, ‘voidable’, and ‘unenforceable’ contracts
legal capacity to enter into a contract
the principal categories of error, including Illegality, Errors and Misrepresentation
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the nature of breach of contract
termination of a contract
Examples of types of breach of contract may include:
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anticipatory breach
failing to perform the contract
delayed performance
unsatisfactory/defective performance
Outcome 3
Distinguish the legal characteristics of the various types of business organisations and
relationships
Knowledge and/or Skills
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The distinction between sole traders, partnerships and incorporated bodies
The advantages and disadvantages of different types of business organisations in a
legal context
General legal provisions relating to management of business organisations
Implications of contractual arrangements on business organisations
The authority and liability of partners
In Outcome 3 it is recommended that the following be covered:
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the legal characteristics of a sole trader
the legal characteristics of a partnership
the legal characteristics of a registered company
the legal characteristics of a limited liability company
18
Unit title: Study Skills
Outline
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Introductions/peer interviews (Ice breakers)/introduction to study skills&
academic English
Note taking/Note making skills
Reading Skills/strategies
Introduction to Academic Writing/academic vocabulary/Paragraphing
Developing Academic style/ Academic Assignment writing
Paraphrasing Skills
Summarizing Skills
In class Written assignment (Summarizing)
Introduction to Presentation skills/warmup mini presentations in class
Referencing styles
Report Writing/mini study planning
Draft Discussion/presentation warm up
Final Presentation/report submission
Important: Successful completion of Study Skills module is compulsory in order to
complete the HND programme.
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Semester 02
20
Unit title: Behavioural Skills for Business
Unit code: F84L 35
Outcome 1
Analyse the main aspects of the managerial function in organisations.
Knowledge and/or Skills
• Roles of the Manager
• Differences between managers and leaders
• Approaches to leadership
Role of the manager — Mintzberg’s 10 managerial roles; Stewart’s demands, choices and
constraints model; Fayol’s five elements of management. This can set the scene by
exploring what managers actually do.
Managers and leaders — the basis on which the two can be distinguished (eg Kotter’s
view that managers deal with a steady state while leaders manage change); the extent to
which a distinction is valid in theory and practice; the effects of the distinction on
attitudes and behaviour within organisations.
Approaches to leadership — the historical development and relative merits of the various
approaches; types of management/leadership style (autocratic, democratic, laissez-faire,
Blake and Mouton’s managerial grid); contingency theory (eg Fiedler and Hersey and
Blanchard’s situational leadership); transformational leadership (eg Bennis and Nanus);
Adair’s action centred leadership.
Reference can also be made to managerial effectiveness (eg Drucker).
Outcome 2
Analysebehavioural skills/strategies used by managers.
Knowledge and/or Skills
• Assertiveness skills
• Influencing strategies
• Negotiation strategies
• Meetings and briefings
• Conflict management
21
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Assertiveness skills — distinction between assertiveness, aggression and
passiveness and idea of a bill of rights; assertive techniques such as ‘broken
record’, ‘fogging’; assertive behaviours such as challenging (seeking, asking,
checking), standing up for oneself; coping with put-downs, receiving constructive
criticism, recognising barriers to action, thinking realistically, communicating what
you want.
•
Influencing strategies — what influencing is and the managerial situations in
which it can be used; sources of power and the balance of power; influencing
strategies (eg general approaches like ‘push’ and ‘pull’, and more specific
strategies such as reason, assertion, exchange of benefits, coercion, courting favour,
partnership).
•
Negotiating strategies — what negotiation is and the managerial situations where
it can be used; approaches to negotiation, eg win-win, positive behaviours in
negotiation (asking questions, motives commentary, testing understanding,
summarising, flagging behaviour); negative behaviours in negotiation
(defend/attack spirals, irritators, counter-proposals).
•
Conducting meetings and briefings — purpose of meetings and briefings; different
types of meetings (eg giving information, gathering information, problem solving);
differences between meetings and briefings; preparation for a meeting/briefing (eg
documentation, what is expected to be accomplished at the meeting, start/finish
time, who should be invited); conduct of a meeting (eg begin on time, stick to
agenda, minute taking); effective behaviour of participants (eg keep to point,
summarise, allow others to speak); effective behaviour of chair (egsummarising,
gate-keeping).
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Conflict — causes of conflict could include formation of cliques, group pressure
and stereotypes, patterns of communication, breaking relationship rules,
personality clashes, gender and age differences, assumptions about others, misuse
of authority, power tactics and manipulation, general expectations and beliefs,
misunderstandings, unreasonable beliefs and assumptions.
•
Effects of conflict may be positive (eg strengthening a relationship, greater trust,
increased self-esteem, enhancing creativity and productivity, job satisfaction) or
negative (eg reduce personal and organisation performance, damage to physical
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and emotional well-being, loss of confidence, lowered self-esteem, high stress
levels, absenteeism, addictions and poor attitudes to work).
•
Dealing with conflict can include broad approaches such as ignoring it, allowing it
to continue, reducing or containing the conflict, resolving it and preventing it in
the first place. The latter tend to be longer term approaches involving things like
establishing common objectives, mutual problem solving and enhancing methods
of communication.
Outcome 3
Analyse a selection of techniques used by managers to manage themselves and others.
Knowledge and/or Skills
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Problem solving and decision-making
Time management
Dealing with stress
Problem solving and decision making — problem solving as one of a manager’s technical
skills; classification of problems (eg recurring/new, programmed/non-programmed);
rational decision making/problem solving model (identify problem, decide on criteria for
a solution, gather information, identify alternative solutions, evaluate alternative
solutions, choose best solution against criteria, implement and review); problem solving
techniques (eg modify, minimise, substitute, rearrange, reverse, combine, brainstorming);
managerial actions to solve problems (recognising the existence of a problem,
acknowledging the problem, involving other party, understanding each other’s position,
enlisting their co-operation, discussing possible solutions, planning action, resolving the
problem in a mutually acceptable way).
Time management — what is time management and how it can help managers? (eg
Gerald M Blair’s ‘Eff’ words: Effective — having a definite or desired effect; Efficient —
productive with minimum waste or effort; Effortless — seemingly without effort, natural,
easy); setting objectives — work goals and life goals.
Time management techniques (eg getting organised, making every day count, urgent and
important, conquering time wasters, minimising costly interruptions, keeping
communications open, working with — not against, saying no).
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Stress management — difference between stress and pressure; causes of stress (eg role
conflict, role ambiguity, role overload and role underload); measures of stress (eg
questionnaires and tests to identify stressors); effects of stress (eg on managerial
behaviour, health); dealing with own stress (eg gaining control of time, effective
communication, practical ways to relax, being healthy and fit, eating for health, exercise
for stamina, suppleness and strength, hobbies, work-life balance, personal interests).
Dealing with stress in others — recognising signs of stress in others; identifying causes of
stress in others and suitable ways to deal with it (eg joint problem solving, counselling,
use of outside agencies).
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Unit title: IT in Business: Spreadsheets
Unit code: F84V 34
Outcome 1
Create a spreadsheet design to provide solutions for a business scenario.
Knowledge and/or Skills
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Spreadsheet design
Functions
Formulas
Cell references
Cell formats
Comments
Macro
Security features for data protection
Candidates will be expected to create an electronic spreadsheet that simulates a given
paper-based example and interpret the results of formulas for the purpose of decisionmaking.
Spreadsheets are frequently used for financial information because of their ability to recalculate formulas automatically. Candidates should be encouraged to make use of the
Function feature of spreadsheet software, demonstrate that they have applied the rules
for entering arithmetic formulas (BODMAS) and can explain the results of calculations
such as totals, percentage of totals and conditional statements. Simple formula would
involve the use of one operator. Complex formula would involve the use of two or more
operators that apply BODMAS rules. As formulas become more complicated, the harder
they are to check, therefore candidates should be introduced to displaying formulas in
the formula bar and displaying formulas inside cells.
Outcome 2
Present spreadsheet data in graphical form and interpret the results.
Knowledge and/or Skills
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Graphical representation of a single data series
Graphical representation of multiple data series
Chart enhancements
Analyse data
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The resulting spreadsheet data created in Outcome 3 can be represented graphically to
provide evidence for Outcome 2.
Candidates should be familiar with various chart types, what chart type/subtype is
appropriate to any given situation for the comparison and/or distribution of data and
that a pie chart should only be used to show the breakdown of a recognisable whole.
Recommended areas for learning include, charting single and multiple data series where
the data source is in adjacent and non adjacent columns. Extensive use of the chart
toolbar features should be made in order to format the data series and add meaning to
chart elements to enhance the presentation of each chart.
Outcome 3
Provide solutions to a business scenario using spreadsheet statistical functions.
Knowledge and/or Skills
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Measures of central tendency
Summarised data
Frequency distribution
Standard deviation
Candidates should have an appreciation of statistical terminology used to describe and
compare data sets such as mean, median, mode collectively known as measures of central
tendency.
Candidates will be required to use various functions to manage and analyse data within a
tabular data set. A suggestion to introduce the merit of CountIF and DcountA functions
may be relevant at this point. Centres should choose the most suitable functions in
relation to the Case Study or workplace situation.
If introducing candidates to the DcountA function, there may be opportunity for
discussion on the typical layout of a database and how field names can be synonymous
with column headers and records with contents of rows as the DcountA function counts
the non-blank cells in a selected range that match the conditions in a specified criteria.
Candidates will be expected to use three methods of averaging data (mean, median,
mode) alongside chosen Count function for the preparation of a grouped frequency table.
26
Unit title: Business Contractual Relationships
Unit code: F84N 34
Outcome 1
Explain the key statutory provisions relating to consumer protection.
Knowledge and/or Skills
Current legislation in terms of:
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Sale of Goods
Unfair Contract Terms
Consumer Credit
False and misleading Trade Descriptions
Product liability
In Outcome 1 it may be appropriate to use three separate case studies that illustrate the
rights and duties of suppliers and buyers of goods, that illustrate consumer credit
legislation, and that illustrate the protection afforded to consumers by consumer
protection legislation.
Outcome 2
Explain the key elements of the law in employment.
Knowledge and/or Skills
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Contract of employment
Dismissal and termination
Discrimination
In Outcome 2 it may be appropriate to use three separate case studies that illustrate the
key elements of a contract of employment and the circumstances under which an
employment contract may lawfully terminated, that illustrate the key principles of unfair
dismissal, and that illustrate direct and indirect discrimination in employment.
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Outcome 3
Explain the key elements of the law of obligations.
Knowledge and/or Skills
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General principles of delict
Negligence
Defences
In Outcome 3 it may be appropriate to use three separate case studies that: illustrate the
law of delict, particularly the specific rules of delict that apply in the employment context
and the defences available in delictual claims; illustrate negligence and the potential
liability resulting from it; and illustrate the duty of care.
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Unit title: Business Culture and Strategy
Unit code: F7J7 35
Outcome 1
Analyse the process by which management can consider the current relationship between
the organisation and its external environment
Knowledge and/or Skills
•
•
•
Forces for change influencing organisations
Relationship between an organisation and its environment
SWOT analysis
Different kinds of environment can be distinguished such as near (or competitive
environment) and the far environment; local, national and international environment.
These different environments can be analysed using models such as Porter's 5 forces
model, the industry life cycle and PEST (or variations like PESTEL or STEEP). These
underpin the OT part of a SWOT analysis. The procedures for conducting a SWOT
analysis can be included within this section.
The SW part of the SWOT could be explored by looking at ideas like a resource audit, the
value chain and core competences.
Outcome 2
Assess the relationship between organisational culture and organisational behavior.
Knowledge and/or Skills
•
•
•
Elements of organisational culture
Models of organisational culture
Relationships between organisational culture and organisationalbehavior
Values relate to mission statements, objectives, logo corporate dress code and so on. They
can also be referred to as high profile symbols. Taken for granted assumptions, also
referred to as low profile symbols include stories, organisational practices, organisational
jargon, physical symbols, rituals and routines. The two are related but the former may
refer more closely to culture as guiding best practice while the latter may relate more
closely to the ways in which organisations are distinguished from each other.
Models of culture could include those suggested by Handy, Trompenars and Deal and
Kennedy.
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Outcome 3
Explain the influence of business strategy on organisational behavior.
Knowledge and/or Skills
•
•
•
Business strategies
Business strategy and 'strategic choice'
Business strategy influences on organisationalbehaviour
Outcome 4
Explain how to manage a business strategy.
Knowledge and/or Skills
• Relationship between changes in business strategy and changes in the
organisational environment
• Benefits gained from an effective business strategy
• Key issues when managing and changing a business strategy in an organisation
• Key Factors when updating business strategy
Strategic choices relate to decisions made by an organisation on what strategy to pursue.
Candidates should recognise that strategy has several levels (such as business and
corporate) and can be approached in a number of ways including:
A contrast between external and internal approaches (the external approach involves
finding and defending a particular market position while the internal approach centres
on developing and maintaining internal capabilities which evolve with the organisation).
Different types of generic strategy such as rational, rational, flexible, incremental,
creative, behavioural, evolutionary.
Detailed knowledge of the above is not necessary for this Unit but it may help candidates
to appreciate the complexity of the issues.
Possible strategies can include Porter's cost leadership, cost focus, differentiation and
focused differentiation, Mintzberg's deliberate and emergent strategy Other
classifications include related and unrelated diversification, new product development,
improved market penetration, seeking new markets, removing some operations. Models
such as the Boston Matrix could also be used to identify suitable strategies.
The relationship between potential changes in business strategy and the organisational
environment will consider both micro and macro factors. For example, changes in
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organisation structure, management styles may well be contributory micro factors. PEST
factors may provide a rationale for macro influences.
Outcome 5
Analyse how to manage change within an organization.
Knowledge and/or Skills
•
•
•
•
Role of management during the process of change
Issues to be addressed by management during the process of change
Influence of other contributing factors on the management of change
Mechanisms for overcoming resistance to change
There are many models for analysing change in an organisation and for overcoming
resistance to change.
There are also several contributing factors which may influence the management of
change in an organisation. These may include: stakeholder power, business goals,
organisation culture, business ethics and social responsibility.
Models for analysing change include Lewin's force field analysis (which may also be
relevant to Outcome 4) and the change equation (ie when current dissatisfaction plus
shared vision of the future plus an acceptable first step outweigh the costs of change).
Other models stress the fact that the various parts of an organisation are inter-connected
and this should be borne in mind when analysing the possibility of change.
The analysis of change may also be linked to implementing change. There are a number
of versions of the preparing–changing–consolidating model such as Lewin's unfreezing
and refreezing model.
Kotter and Schlesinger's change continuum may help to decide what strategy to adopt for
change and thus how resistance could be overcome. They also suggest several ways of
overcoming resistance to change including communication and education; participation
and involvement; support and development; negotiation and bargaining; manipulation
and co-option; explicit and implicit coercion.
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Unit title: Economics 1: Micro and Macro Theory and Application
Unit code: F7J6 35
Outcome 1
Explain the costs of the firm and the market structures within which firms operate.
Knowledge and/or Skills
•
•
•
•
•
Costs of the firm
Market structures
Price and output behaviour
Profit maximisation
Alternatives to profit maximisation
Outcome 1 introduces the costs of the firm in both the short run and the long run. This
will include fixed, variable, total, average and marginal costs. This will also include the
factors that influence costs in both the short run and the long run including the Law of
Diminishing Returns, economies and diseconomies of scale.
Outcome 1 introduces the various market structures in which a firm may operate. The
relationship between price and output is explored. The characteristics of the spectrum of
market structures such as monopoly, oligopoly and perfect competition are investigated
allowing the candidate to appreciate the number of firms in the market, entry to the
market, type(s) of good(s) in the market, market share and the influence of a firm on the
market.
Candidates are also introduced to the objective of profit maximisation and should
understand that alternatives to this exist — managerial theories and behavioural theories.
These may include sales revenue maximisation, satisficing behaviour or another
recognised objective. This Outcome may assist in providing a brief introduction to themes
that will be revisited in Outcomes 2 and 3 such as imperfect markets and intervention.
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Outcome 2
Analyse the impact of unemployment and inflation.
Knowledge and/or Skills
•
•
•
•
•
•
Types of unemployment
Types of inflation
The impact of unemployment on individuals and businesses
The impact of inflation on individuals and businesses
Recent trends in unemployment in the UK
Recent trends in inflation in the UK
Outcome 2 introduces unemployment and inflation. The Outcome allows integration to
take place with Outcome 3 which deals with government intervention and policy.
Candidates are introduced to the causes of unemployment and inflation and are able to
examine the effects on various groups. There is an opportunity here to introduce the
candidate to the different schools of economic thought.
Outcome 3
Evaluate government use of macroeconomic policy.
Knowledge and/or Skills
• Aims of fiscal policy
• Fiscal policy methods in the UK
• Aims of monetary policy
• Monetary policy methods in the UK
• Supply-side policies
For Outcome 3 candidates should be encouraged to see the problems affecting the larger
economic environment and how government has to make decisions based on income
available to them. The options and problems facing government in raising revenue and
the choices that have to be made on what to spend the income should be highlighted
using current economic policy.
The effects of these decisions should be investigated and evaluated. Although UK
economic policy will dominate, the policies of the Scottish Government, particularly
where they differ from the UK government should be considered. Encouraging students
to examine current economic issues being considered by the Scottish Government will
enhance their study and knowledge.
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Unit title: Preparing Financial Forecasts
Unit code: F84R 35
Outcome 1
Prepare an operating statement.
Knowledge and/or Skills
•
•
•
Cost classification
Overhead absorption
Profit determination
Outcome 1covers the preparation of an operating statement.
•
•
•
•
structure and content of an operating statement
cost classification — direct and indirect
overhead allocation and absorption
profit determination using both mark-up and margin
Outcome 2
Analyse costing data and provide information for decision-making.
Knowledge and/or Skills
•
•
•
Marginal costing and contribution-margin analysis
Analysis of costs
Information for decision making
Outcome 2covers the analysis costing data and provision of information for decision-making.
•
•
•
•
marginal costing and its role in the decision making process
full and absorption costing to be compared with marginal costing
the impact of changing costs and revenue on total contribution
break-even and margin of safety — this could be covered in the teaching of this Unit to
establish a context for marginal costing
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Outcome 3
Analyse budgetary information and prepare a variance report
Knowledge and/or Skills
•
•
•
Flexed budgets
Variances: materials, labour and overheads
Variance analysis and reporting
Outcome 3involves the analysis of budgetary information and calculation of variances
.
• functional budgets — the preparation of functional budgets should be covered in the
delivery of this Unit, although not formally assessed, in order to establish a context for this
Outcome
• flexed budgets
• variance analysis — materials, labour and overheads
Candidates could be encouraged to use spreadsheets for the budgets.
Outcome 4
Assess the viability of a project using investment and project appraisal techniques.
Knowledge and/or Skills
•
•
•
Payback period
Accounting rate of return
Discounted cash flow (net present value and internal rate of return)
Outcome 4 involves the use of investment and project appraisal techniques to assess the viability
of a project.
•
•
•
investment appraisal techniques — traditional and discounted cash flow and their uses in
decision-making
the effects of limited funds, although not formally assessed, could be covered in the
teaching of this Unit
the effects of taxation should be excluded from the analysis
The use of a spreadsheet package should be encouraged.
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