Unit 1: Investigating business (LEVEL 2)

Learning outcomes
By completing this unit candidates will develop knowledge and understanding of why businesses
adopt certain types of ownership, and create particular internal structures. Candidates will also
explore the wider issues of sectoral change, stakeholder involvement and competition.

Candidates will produce evidence to meet the unit assessment objectives in order to show that
they understand:

• business aims
• types of business ownership and reasons for change
• forms of organisational structure
• stakeholder interests
• sectoral change
• competition and means of competing
• choice of location and reasons for change.

Assessment objectives Knowledge, understanding and skills

1 Describe, using Examples of aims:
examples, different • to make a profit
business aims • to increase market share
• to provide services
• to improve quality
2 Describe, using Types of business ownership:
examples, different • sole trader
types of business • partnership
ownership, and show
• private limited company
why business
ownership may • public limited company
change over time • franchise
• co-operative
Reasons for change of business ownership:
• liability concerns
• factors linking types of ownership to business growth and size
• generation of funding
Assessment Objectives 3 to 8 relate to a single business selected by the candidate.
3 Illustrate the • internal organisation and structure relevant to size and
organisation structure business type
of the selected • hierarchical, flat and matrix organisational charts
business, and show • chains of command
other ways in which
the business could be • span of control
organised • authority and responsibility
Alternative ways in which the business could be organised

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Unit 1: Investigating business

Assessment objectives Knowledge, understanding and skills

4 Describe the different Stakeholder interests in the business
stakeholders the Internal stakeholders:
selected business • owners/ shareholders
has, what their
• managers
interests in the
business are, and why • employees
some stakeholders External stakeholders:
interests might differ • customers
• suppliers
• government
• local communities
Stakeholders’ differing interests
5 Describe trends of • nature and structure of the primary, secondary and tertiary
growth and decline for sectors of business
the sector in which the • patterns of growth and decline within these sectors over the
selected business last 10 years
operates, and • comparison of trends between primary, secondary and tertiary
compare with other sectors
sectors
6 Identify the main Complete a competitor audit for the business
competitors of the Describe how the business competes, in terms of:
selected business, • price
describing how they
• product
compete, and how the
selected business • marketing and promotion
remains competitive • customer service
7 Describe the current • economies of scale
location of the • local labour force
selected business and • employment levels and their relevance to business location
explain why this
location is used • wage and salary levels and their relevance to business location
• relevance of location to customers and suppliers
• historical reasons for location and continual location
8 Suggest and justify • relocation due to business growth or decline
changes that could be or
made to the location • redevelopment of current location to meet business needs
of the selected
business in the future

Assessment
This unit is centre-assessed and externally moderated.

In order to achieve this unit candidates must produce a portfolio of evidence showing that they can
meet all of the assessment objectives.

Assessment Objectives 3 to 8 relate to a single business selected by the candidate.

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 Unit 1: Investigating business

Candidates should be encouraged to present their work in a format that would be acceptable in
business.

Portfolios of work must be produced independently. They will need to be made available, together
with witness statements and any other supporting documentation, to the OCR Visiting Moderator
when required.

Centres must confirm to OCR that the evidence produced by candidates is authentic. An OCR
Centre Authentication Form is provided in the Centre Handbook and includes a declaration for
assessors to sign. It is a requirement of the QCA Common Criteria for all Qualifications that proof
of authentication is received.

Guidance on assessment and evidence requirements

An OCR model assignment is available for this unit and can be downloaded from our website:
www.ocr.org.uk and can also be found in the Model Assignments folder on this CD Rom. OCR has
also produced a Tutor’s Support pack for this unit, which can be purchased from OCR
Publications.

In order to complete this unit, candidates will need detailed information concerning the businesses’
organisational structure, stakeholders, competitors and reasons for location.

For Assessment Objective 1 candidates must describe in general terms the purpose of business
aims, including the examples outlined in the knowledge, understanding and skills.

For Assessment Objective 2 candidates must describe in general terms the different types of
business ownership giving real life examples of businesses outlined in the knowledge,
understanding and skills. They must also give reasons why business ownership may change over
time.

Assessment Objectives 3 to 8 relate to a single business selected by the candidate.

For Assessment Objective 3 candidates must reproduce and explain the organisational structure of
the chosen business. They must also produce and explain new illustrations showing other ways
the business could be organised.

For Assessment Objective 4, candidates must describe the following points, in relation to the
selected business:

• Stakeholder interests in the business

• Internal stakeholders
• External stakeholders
• Stakeholders’ differing interests

as outlined in the knowledge understanding and skills.

For Assessment Objective 5, for the selected business the candidate must describe the following
points:

• trends of growth and/or decline for the relevant sector

• comparison with the other sectors

For Assessment Objective 6, for the selected business the candidate must identify and describe
the following points:

• main competitors
• how they compete

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Unit 1: Investigating business

• how the selected business remains competitive

For Assessment Objective 7 for the selected business candidates must:

• describe the current location

• explain why this location is used

as outlined in the knowledge, understanding and skills.

For Assessment Objective 8 candidates must justify their suggestions for why the business could
change its location in the future. These reasons could include relocation or redevelopment of the
current location.

If possible, it may be useful for centres to organise links and visits to local businesses and write an
assignment which would reflect candidates experiences of such contact.

Signposting to Key Skills

 The unit contains opportunities for developing the Key Skill, and possibly for generating
portfolio evidence, if teaching and learning is focused on that aim.

Key Skill Key Skill Key Skill

reference reference reference
C2.1a  ICT2.1  N2.1
C2.1b  ICT2.2  N2.2
C2.2  ICT2.3  N2.3
C2.3 

Mapping to National Occupational Standards

Occupational Standards Unit number Title

CfA 210 Research and report information
SFEDI - Exploring Enterprise Unit 2 Explore the regulations and laws for business
Occupational Standards Level 2

Resources
This section provides suggestions of suitable resources. The list is neither prescriptive or
exhaustive, and candidates should be encouraged to gather information from a variety of sources.
Some suggested resources are intended for Tutor use. The resources in this section were current
at the time of production.

Books

Carysforth, Carol & Neild, Mike (2000) GNVQ Intermediate Business

Heinemann

Hough, Karen et al (2005) OCR National Level 2 Business

Heinemann

Huggett, Rene (2003) GCSE Business Studies

Collins

Nuttall, Chris J (2000) GNVQ Intermediate Business

Collins

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 Unit 1: Investigating business

Nuttall, Chris J (2004) OCR Level 2 National Certificate in Business

Nelson Thornes

Websites

Bized – http://www.bized.ac.uk/
Service for students and educators on business and economics related subjects.

A level of achievement (ALoA) –

http://domain269958.sites.netsmade4u.co.uk/New%20ALoA/new%20aloa/teachers.htm

Business education resources.

National Statistics – http://www.statistics.gov.uk/

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Unit 1: Investigating business

Grading

Assessment Pass Merit Distinction

Objective
AO1 Candidates will describe the Candidates will describe the Candidates will describe the
Describe, using examples, different purpose of business aims at a basic purpose of business aims in detail purpose of business aims
business aims level with few examples with a range of examples comprehensively with a full range
of examples. Candidates will have
linked their examples to real
businesses
AO2 Candidates will produce basic Candidates will produce detailed Candidates will produce detailed
Describe, using examples, different descriptions, with examples, of the descriptions, with examples, of the descriptions, with examples, of the
types of business ownership, and different types of business different types of business different types of business
show why business ownership may ownership. Their reasons why ownership. Their reasons why ownership. Their reasons why
change over time businesses may change their businesses may change their businesses may change their
ownership will be limited ownership will demonstrate a good ownership will demonstrate a
understanding of the different types thorough understanding of the
of business ownership different types of business
ownership
Assessment Objectives 3 to 8 relate to a single business selected by the candidate
AO3 Candidates will show a basic Candidates will show a clear Candidates will show a detailed
Illustrate the organisational structure understanding of the business’s understanding of the business’s understanding of the business’s
of the selected business, and show organisation structure. Their organisation structure. Their organisation structure. Their
other ways in which the business alternative illustrations of the ways alternative illustrations of the ways alternative illustrations of the ways
could be organised the business could be organised will the business could be organised will the business could be organised will
be limited be detailed be comprehensive and realistic
AO4 Candidates will describe the Candidates will describe in detail Candidates will comprehensively
Describe the different stakeholders different stakeholders, what their the different stakeholders, what their describe the different stakeholders,
the selected business has, what interest is, and why some interest is, and why some what their interest is, and why some
their interests in the business are, stakeholders’ interests may differ. stakeholders’ interests may differ. stakeholders’ interests may differ.
and why some stakeholders The candidate’s description will have The candidate’s description will have The candidate’s description will have
interests might differ limited application to the selected sound application to the selected thorough application to the selected
business business business

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 Unit 1: Investigating business

Assessment Pass Merit Distinction

Objective
AO5 Candidates will show a basic Candidates will show a sound Candidates will show a well-
Describe trends of growth and appreciation of the trends for the appreciation of the trends for the researched appreciation of the
decline for the sector in which the sector within which the business sector within which the business trends for the sector within which the
selected business operates, and operates. There will be limited operates. There will be clear business operates. There will be
compare with other sectors comparisons with the other sectors comparisons with the other sectors full comparisons with the other
sectors
AO6 Candidates will identify the main Candidates will identify the main Candidates will identify the main
Identify the main competitors of the competitors. Their descriptions of competitors. Their descriptions of competitors. Their descriptions of
selected business, describing how how they compete and remain how they compete and remain how they compete and remain
they compete, and how the selected competitive will demonstrate limited competitive will demonstrate a competitive will demonstrate a
business remains competitive understanding sound understanding comprehensive understanding
AO7 Candidates will demonstrate a basic Candidates will demonstrate a Candidates will demonstrate a well-
Describe the current location of the appreciation of the current location sound appreciation of the current researched appreciation of the
selected business and explain why factors location factors current location factors
this location is used
AO8 Suggestions for change in future will Suggestions for change in the future Suggestions for change in the future
Suggest and justify changes that have limited justification will be realistic and clearly justified will be realistic and supported by
could be made to the location of the extensive justification
selected business in the future

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