For candidates in Higher Business Management who need an example for the impact of an external factor, look at the impact Brexit has had on the pound. The diagram below illustrates how the uncertainty and the proposed leaving of the EU has seen the pound drop sharply at different stages against the dollar, with it only picking up slightly when either a “soft” Brexit has been mooted, or some plan/agreement has been proposed or finalised.
Here’s an interesting video on Volkswagen’s Autostadt plant in Wolfsburg, Germany. The car tower is impressive, and in fact was seen in scenes from Mission: Impossible Ghost Protocol (though it was set in Mumbai).
https://www.youtube.com/watch?v=OFSPJBwp2XY
Selection tests of different kinds are used for different jobs.
Below in the table you will see the different types of tests you will be asked about in Higher Business Management, and what they actually measure, and examples of where they are used:
It may surprise you that IQ tests are not being used as often now as they are viewed as having a limited way of measuring intelligence.
Time for Albert Einstein’s famous quote: “Everybody is a genius. But if you judge a fish by its ability to climb a tree, it will live its whole life believing that it is stupid.”
Actually to muddy the waters even more it sadly wasn’t Einstein who said this quote. It only appeared long after his death. But it is still an excellent quote which has much in line with Gardiner’s multiple intelligences theory.
In Higher Business Management’s Human Resources topic, a selection method which is often used for graduate and managerial jobs is called an Assessment Centre. This is normally a one or two day series of activities (it may also be residential) whereby candidates undergo scrutiny to get the all important position.
After Christmas we will need to make a start on our Assignment.
Here are the key issues you have to be aware of:
u Assignment is still worth 30 marks but now weighted as 25% of overall course assessment.
u 2,000 word maximum (not including appendices, reference etc).
u There is a penalty for exceeding word count by 10%.
u 1 mark removed from Collating and reporting (now called Structure) and added to Analysis and Interpretation (now 13 marks)
u Analysing tool no longer necessary
u No maximum of pages
u 1.5 line spacing
u Clear font
u Font size of 12
u Number pages
u Name & title on every page
u Do not staple pages together
u Still 4 pages maximum of appendices.
Have a think about which company you wish to use, and have a think about what you wish to investigate. It is your assignment. Make sure you choose a business that you are interested in.
Some pupils have asked which textbook I would recommend. There are several excellent ones out on the market just now, but I was a big fan of the original Peter Hagan book and now with the revisions to the Higher, there is a new version coming out just after Christmas. It is more expensive than most of the others, but I think it is comprehensive and laid out in a format I seem to like.
Good luck today to our pupils sitting the National 5 Business Management today.
In N5 Business Management, Place, one of the 4 Ps of the Marketing Mix, has several factors which will affect where a business will locate.
As you can see below the most obvious will be the first 4:
Type of Business – some businesses need to be near customers (retail outlets), others need to be near resources (oil rigs)
Finance – sometimes rent or property prices will place a part in where a business will locate.
Footfall – how many people pass by the business is important if you are a retail business.
Competition – often you do not wish to have many competitors nearby or at all. The Ptarmigan restaurant at the top of the Cairngorm mountain is such an example.
In Higher Business Management, types of decision often crops up. It is actually a very easy question which will normally be a compare question. So dust down your use of “whereas” for differences and “both” for similarities.
Ensure you make direct comparisons i.e.:
“A strategic decision is a long term decision whereas a tactical decision is short-medium term.” = 1 mark.
How many marks there are mean you need to make as many comparisons.
In Higher Business Management, the Matrix Structure is another type of organisational structure that is used when projects are being implemented.
Hope this will help for Higher Business Management revision.
In Higher Business Management, Corporate Culture is a common question. It either will ask you to describe how it is used in businesses or how to achieve a strong corporate culture or a question on the benefits of corporate culture.
Culture is defined as “The way we do things around here”.
Corporate culture is the beliefs and behaviours which managers and employees adopt to enable the business to achieve its aims. Usually it is not specifically defined but develops organically over time and become the unwritten rules and values of the business. The culture will be reflected in every aspect of the business, for example dress codes, layout and décor of premises, symbols/logos, terms and conditions of employment, employee incentives, eg employee of the month, and customer service.
The Benefits of Corporate Culture
• Employees feel part of the business
• Increased staff motivation
• Improved employee loyalty
• Increased productivity
• Improved employee relationships.
These advantages can reduce absenteeism and staff turnover, and will help the company in terms of customer loyalty and recruitment.
Know your stuff and know your application of the command words.
More Higher Business Management revision here:
One question often asked Higher candidates is about Sales Promotion and in particular the into the pipeline and out of the pipeline methods. Into the pipeline methods are aimed at retailers who are enticed by suppliers and manufacturers to take more of their products. Out of the pipeline is more familiar to us as it concerns retailers trying to entice customers (us!) to purchase more.
I like using T-charts for revision. Here are the ones I have created and use with my pupils for the advantages and disadvantages of the Channels of Distribution:
| Channel A “Direct Channel” | |
| Advantages to firm | Disadvantages to firm |
| Ø Fastest way to market Ø Highest profit margin Ø Have control over product | Ø Expensive to open many branches Ø Customers need to physically come to store (geography may be an issue) |
| Channel B – Manufacturer – Warehouse – Outlet - Consumer | |
| Advantages to firm | Disadvantages to firm |
| Ø Helps reduce unneeded stock Ø High volume of sales | Ø Low profit margin Ø Can damage brand value/image Ø Customers may not want “old styles” |
| Channel C – Manufacturer – Wholesaler – Retailer - Consumer | |
| Advantages to firm | Disadvantages to firm |
| Ø High sales/volume Ø Wholesalers hold stock, reducing risks& costs for firms | Ø Low margins/discounts Ø Less control over product (i.e. advertising & shelve placement) |
| Channel D – Manufacturer – Retailer - Consumer | |
| Advantages to firm | Disadvantages to firm |
| Ø Wide customer base Ø Increased sales Ø Retailers may do promotions for the firm Ø Customers can buy in small quantities | Ø High competition for retail space Ø Have to “pitch” to retailer Ø Delivery costs to retailer by road/rail Ø Less control over marketing mix |
| Channel E - Manufacturer – Etailer - Consumer | |
| Advantages to firm | Disadvantages to firm |
| Ø Cheap overheads Ø Wide customer audience Ø Can sell 24/7 | Ø Massive competition Ø High advertising spend needed to let customers be aware of products Ø Postage delivery costs |
Channels of Distribution is a topic often performed poorly by Higher Business Management candidates.
Here is what the channels look like:
In the next post I will discuss the costs and benefits of each channel.
Higher Business Management Revision.
