Spec coverage
Every spec point, and what actually teaches it
The real numbered content list from the official Pearson specification, each point matched to the lesson that covers it. Click through to a lesson from its spec point below, or rate how confident you feel — saved in this browser so it’s there next time you come back. Any point with no matching lesson is flagged, not hidden.
21 spec points · 21 covered
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3.3.1 — Business objectives and strategy
- 3.3.1.1
Corporate objectives
- a) Development of corporate objectives from mission statement/corporate aims.
- b) Critical appraisal of mission statements.
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- 3.3.1.2
Theories of corporate strategy
- a) Development of corporate strategy: Ansoff's Matrix; Porter's Strategic Matrix.
- b) Aim of portfolio analysis.
- c) Effect of strategic and tactical decisions on human, physical, and financial resources.
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- 3.3.1.3
SWOT analysis
- a) SWOT analysis: internal considerations – strengths and weaknesses; external considerations – opportunities and threats.
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- 3.3.1.4
Impact of external influences
- a) PESTLE (political, economic, social, technological, legal and environmental).
- b) The changing competitive environment.
- c) Porter's five forces.
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3.3.2 — Business growth
- 3.3.2.1
Growth
- a) Objectives of growth: economies of scale (internal and external); increased market power over customers and suppliers; increased market share and brand recognition; increased profitability.
- b) The distinction between inorganic and organic growth.
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- 3.3.2.2
Organic growth
- a) Methods of growing organically.
- b) Advantages and disadvantages of organic growth.
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- 3.3.2.3
Inorganic growth
- a) Mergers and takeovers: reasons for mergers and takeovers; distinction between mergers and takeovers; horizontal and vertical integration; conglomerates; financial risks and rewards.
- b) Advantages and disadvantages of inorganic growth.
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- 3.3.2.4
Problems arising from growth
- a) Diseconomies of scale.
- b) Internal communication.
- c) Overtrading.
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3.3.3 — Decision-making techniques
- 3.3.3.1
Quantitative sales forecasting
- a) Calculation of time-series analysis: moving averages (three period/four quarter).
- b) Interpretation of scatter graphs and line of best fit: extrapolation of past data to future.
- c) Limitations of quantitative sales forecasting techniques.
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- 3.3.3.2
Investment appraisal
- a) Simple payback.
- b) Average (accounting) rate of return.
- c) Discounted cash flow (net present value only).
- d) Calculations and interpretations of figures generated by these techniques.
- e) Limitations of these techniques.
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- 3.3.3.3
Decision trees
- a) Construct and interpret simple decision-tree diagrams.
- b) Calculations and interpretations of figures generated by these techniques.
- c) Limitations of using decision trees.
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- 3.3.3.4
Critical path analysis
- a) Nature and purpose of critical path analysis.
- b) Complete and interpret simple networks to identify the critical path.
- c) Calculate: earliest start time; latest finish time; total float.
- d) Limitations of using critical path analysis.
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- 3.3.3.5
Contribution
- a) Nature and purpose of contribution.
- b) Calculation and interpretation of contribution.
- c) Use of contribution as a decision-making technique.
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3.3.4 — Influences on business decisions
- 3.3.4.1
Corporate culture
- a) Strong and weak cultures.
- b) Classification of company cultures: power; role; task; person.
- c) How corporate culture is formed.
- d) Difficulties in changing an established culture.
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- 3.3.4.2
Stakeholder model versus shareholder model
- a) Internal and external stakeholders.
- b) Stakeholder objectives.
- c) Stakeholder and shareholder influences: stakeholder – that the business considers all of its stakeholders in its business decisions/objectives; shareholder – that the business should focus purely on shareholder returns (increasing share price and dividends) in its business decisions/objectives.
- d) The potential for conflict between profit-based (shareholder) and wider objectives (stakeholder).
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- 3.3.4.3
Business ethics
- a) Ethics of strategic decisions: trade-offs between profit and ethics.
- b) Pay and rewards.
- c) Corporate social responsibility (CSR).
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3.3.5 — Assessing competitiveness
- 3.3.5.1
Interpretation of financial statements
- a) Statement of comprehensive income (profit and loss account): key information; stakeholder interest.
- b) Statement of financial position (balance sheet): key information; stakeholder interest.
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- 3.3.5.2
Ratio analysis
- a) Calculate: profitability (gross profit margin and profit for the year margin); liquidity (current and acid test ratios); gearing ratio; return on capital employed (ROCE).
- b) Interpret ratios to make business decisions.
- c) The limitations of ratio analysis.
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- 3.3.5.3
Human resources
- a) Calculate and interpret the following to help make business decisions: labour productivity; labour turnover and retention; absenteeism.
- b) Limitations of these calculations.
- c) Human resource strategies to increase productivity and retention and to reduce turnover and absenteeism: financial rewards; employee share ownership; consultation strategies; empowerment strategies.
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3.3.6 — Managing change
- 3.3.6.1
Key factors in change
- a) Organisational culture.
- b) Size of organisation.
- c) Time/speed of change.
- d) Managing resistance to change.
- e) Transformative leadership.
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- 3.3.6.2
Contingency planning
- a) Identifying key risks through risk assessment: natural disasters; IT systems failure; loss of key staff.
- b) Planning for risk mitigation: business continuity; succession planning.
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