Complete Business Studies Revision notes AQA BUSS2

Just some notes compiled together for the exam!!!!!

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Improving Organisational Structures
Business Structures
·Hierarchy: A series of levels in a business where each level has responsibility for and authority over
the levels below
·Tall Structure:
Lots of levels
Narrow Spans of Control (Less people to control)
Messages take a long time to get from one end to another
·Flat Structure:
Wide Spans of Control (More people to control)
People are given more responsibility
Can motivate employees
Employees can get burdened with Workload
·Span of Control: The number of people who report directly to a manager.
A narrow span of control = few people to look after- MORE LAYERS OF HIERARCHY
A wide span of control = lots of subordinates to look after
Advantages and disadvantages of a narrow span of control:
Advantages Disadvantages
Allows close management supervision Workers may feel over supervised
May improve communications Vertical communication will be harder
May lead to more promotion opportunities Restricted scope for promotion
-This is the passing of authority down the hierarchy of a business
Benefits of delegation:
Can motivate staff
Makes it easier in the future to identify staff with the qualities needed for promotion
Allows the boss the opportunity to spend time planning and thinking, rather than doing.

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Developing an Effective Workforce: Recruitment, Selection and Training
Recruitment: is the process of filling job vacancies
-Training is a provision of work-related education
The recruitment process:
1. A vacancy arises
2. A job description is written or revised, based on job analysis
3. A person specification or job profile is written
4. A decision is made about whether to recruit internally or externally
5. Advertises are drawn up and placed in the appropriate media (on company website or
Internet in local newspapers for external
6.…read more

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Selection Process
·Job Description: Lists the tasks and responsibilities the applicant will be expected to carry out. Also
states the job title, the location, the nature of the business and other details like salary and
·Person Specification: Outlines the ideal person needed. Qualifications, experience, interests and
·Interviews: Most common way of choosing candidates (one-to-one/panel/phone).
·Testing Candidates: Psychometric testing; personality fit, aptitude tests, group exercises etc.…read more

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Developing and Retaining an Effective Workforce and Motivating
Motivating the Workforce- Theories of Motivation
Taylor and Scientific Management
Thought workers were motivated by money
He did time and motion studies, timing work activities with a stopwatch
He favoured division of labour ­ small repetitive tasks (scientific management approach)
Believed financial incentives would motivate workers and raise productivity
Increased productivity meant less workers needed they were worried about losing their jobs
Could lead to a reduction in quality so supervisors were needed
Wouldn't work for…read more

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Hygiene Factors: Company policy, supervision, working conditions, pay, relations with
employees. These don't motivate as much, but if they aren't good, workers are dissatisfied
which will demotivate them.
Motivating Factors: Interesting work, personal achievement, recognition of achievement, scope
for more responsibility and personal development. These factors do positively motivate workers.
Using financial methods to motivate employees
Wages require workers to be at work for a number of specific hours. Usually paid weekly.
Able to plan finance ahead.
Very clear.…read more

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Empowerment: Gives people more control over their work and also gives them a greater role in
decision-making. Quality circles let groups of workers from various departments meet to suggest
improvements to productivity and quality
Effective Marketing
Identifies customers' needs and wants
Tries to anticipate what they'll want in the future so that the business can get one step ahead of
the market
Ensure the business supplies goods and services that customers want in order to make a profit.…read more

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Where consumers get the products and/or services can be accessed from the producers
Place is an important factor of the marketing mix in a number of ways.
· Location of the retailer.
· Placement of the product within the point of sale.
· Availability of the product in as many different locations as possible.
· The way in which the product is distributed.…read more

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Pricing tactics
Influences on pricing decisions
Pricing Strategies
Pricing strategies are the ways in which a
company plans to price a product for the
medium long term future
Cost plus pricing strategy Total costs are calculated and them simply a mark is added to give the selling
price, ensures all costs covered and profit is made.…read more

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The promotional mix is where different promotional elements work together to support a product
or service.
Above the line:
Advertising through media
o Newspapers
o Internet
o Television
Below the line:
All other promotions
Sales promotion
o Promotion is used to increase sales through impulse purchasing e.g. BOGOF
Public Relations
o This is where a business will try to create a good public image and reputation.…read more

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USP- a feature or function of a product that makes it different to any other on the market
Product differentiation- creating a perceived difference for a product in a competitive market
Have to invest into Research and Development...…read more




Steven O'Haea

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