Business studies 2a revision notes

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AS Business Studies

Guide to exams

Unit 2 Managing the Business

There are four topics we have covered this year

2.3.1a Marketing Plan

2.3.2a Managing the Provision Process

2.3.3a How does a company budget effectively

2.3.4a Managing other people

The exam is 1hour 15minutes

There are always 24 marks for multiple choice plus explanations

There are always 46 marks for data response questions

What are the key things I need to know?

2.3.1a Marketing Plan

2.3.1 Marketing objectives and strategy

          Marketing objectives – based on market research, sales or profit forecasts for the product or service idea

Strategy niche or mass marketing, benefits and limitations of these strategies

What you need to know

Link your ideas from unit 1 – (estimating levels of sales, costs, profits etc) How does this translate into a marketing strategy for your business idea? Does your product serve a niche or mass market?

2.3.1 Identification of marketing mix (4Ps Price, product, place, promotion)

         a) Identification of the marketing mix that meets the needs of the market

         What you need to know

         How would you use the marketing mix for your business idea?

         How could you improve the marketing mix for a current product?

          b) Product life cycle and Boston Matrix, product extension strategies, branding, purpose of trademarks and patents

What you need to know

What are the implications for cash flow with the marketing of the product in the light of its position in the product life cycle or Boston Matrix?

Think of a company with a range of products in its portfolio and the positioning of them. E.g Cadbury, Nestle, SC Johnson, Samsung etc.

c) How current social trends may affect the marketing mix e.g ethical trading, sourcing sustainable materials, food miles labelling, reduction/recycling of packaging, environmental factors, online retailing, retailer purchasing power

What you need to know

Examine how these trends could affect the marketing mix for a company, for example, the use of organic ingredients or inclusion of the details of carbon footprint on the packaging

2.3.1 Price Elasticity of Demand

          The effect on business of price changes, implications for pricing strategies, effects on total revenue

What you need to know

You need to be able to calculate PED and interpret results of the calculation and consider what creates inelastic demand for products. Remember PED 0-1 = Inelastic (price rise will increase total revenue), 1+ = Elastic (price rise will decrease total revenue) – These impacts are only if your product alters price from the rest of the market and/or that there is competition in the market.

Price Elasticity of demand = % change in Q.D. / % change in Price

2.3.2a Managing the Provision Process

2.3.2 Product Service or Design

          Product or service design to meet identified market needs, design mix: function aesthetics, economic manufacture

What you need to know

Although many products stay the same, there are many products that change the type of

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