Specification J204 — All topics
18 topic chapters
Component 01 — Business 1
Business activity, marketing and people · 80 marks · 1 hr 30 min
1 — Business activity
1.1
Ownership, Objectives and Stakeholders
Business ownership types, aims and objectives, and stakeholder roles
1.2
Enterprise and Business Planning
Entrepreneurship, risk and reward, and the purpose of business planning
1.3
Business Growth
Organic and external growth, mergers, takeovers and diversification
2 — Marketing
2.1
Market Research
Primary and secondary research methods, qualitative and quantitative data
2.2
Marketing Mix and Segmentation
The four Ps, market segmentation, product lifecycle and pricing methods
3 — People
3.1
Role of HR and Organisational Structures
Purpose of human resources, tall and flat structures, span of control and ways of working
3.2
Labour Legislation and Communication
Employment law, communication methods and the influence of digital communication
3.3
Motivation and Recruitment
Financial and non-financial motivation, recruitment methods and selection processes
3.4
Training and Development
Induction, on-the-job and off-the-job training, staff development and its benefits
Component 02 — Business 2
Operations, finance and influences on business · 80 marks · 1 hr 30 min
4 — Operations
4.1
Production Types and Quality
Job, batch and flow production, technology in production, and quality control methods
4.2
Legislation and Ways of Selling
Consumer law, sales processes, e-commerce and customer service
4.3
Location and Suppliers
Factors influencing business location, procurement and supply chain decisions
5 — Finance
5.1
The Finance Function and Sources of Finance
Role of finance, internal and external sources of finance for new and established businesses
5.2
Profit, ARR and Break-even
Revenue, costs, gross and net profit, profitability ratios, average rate of return and break-even
5.3
Cash Flow
Importance of cash, cash vs profit, cash flow forecasting and managing shortages
6 — Influences on business
6.1
Influences on Business: Ethics and the Environment
Ethical considerations, environmental impact, sustainability and CSR
6.2
Influences on Business: Globalisation and the Economy
The economic climate, globalisation and its impact on business location and competition
7 — The interdependent nature of business