Othm Level 4 Diploma in Business Management

OTHM LEVEL 4 DIPLOMA IN BUSINESS MANAGEMENT | (RQF) SPECIFICATION
OTHM LEVEL 4
DIPLOMA IN BUSINESS
MANAGEMENT
Qualification Number: 603/2174/X
(RQF) Specification | August 2017 | Version 1.0
(RQF) SPECIFICATION | AUGUST 2017 | VERSION 1.0 WWW.OTHM.ORG.UK PAGE 1 OF 28

TABLE OF CONTENTS
QUALIFICATION OBJECTIVES ............................................................................................................. 3
QUALITY, STANDARDS AND RECOGNITIONS ................................................................................... 3
REGULATORY INFORMATION ............................................................................................................. 3
EQUIVALENCES .................................................................................................................................... 4
QUALIFICATION STRUCTURE ............................................................................................................. 4
DEFINITIONS ......................................................................................................................................... 4
ENTRY REQUIREMENTS ...................................................................................................................... 5
PROGRESSION ..................................................................................................................................... 5
DELIVERY OF OTHM QUALIFICATIONS .............................................................................................. 5
ASSESSMENT AND VERIFICATION ..................................................................................................... 5
RECOGNITION OF PRIOR LEARNING AND ACHIEVEMENT ............................................................. 6
EQUALITY AND DIVERSITY .................................................................................................................. 6
CONTACT DETAILS ............................................................................................................................... 7
UNIT SPECIFICATIONS ......................................................................................................................... 8
UNIT 01: RESEARCH AND ACADEMIC WRITING ........................................................................... 9
UNIT 02: BUSINESS ENVIRONMENT............................................................................................. 13
UNIT 03: INTRODUCTION TO BUSINESS COMMUNICATION ..................................................... 16
UNIT 04: INTRODUCTION TO QUANTITATIVE METHODS .......................................................... 19
UNIT 05: INTRODUCTION TO BUSINESS FUNCTIONS ............................................................... 22
UNIT 06: INTRODUCTION TO FINANCE ........................................................................................ 25
IMPORTANT NOTE .............................................................................................................................. 28

QUALIFICATION OBJECTIVES
The objective of the OTHM Level 4 Diploma in Business Management qualification is to
provide learners with an excellent foundation for building a career in a range of
organisations. It designed to ensure each learner is ‘business ready’: a confident,
independent thinker with a detailed knowledge of business and management and equipped
with the skills to adapt rapidly to change.
The content of the qualification is focused on:

• managing business communication
• understanding the business environment and organisations in a global context
• business functions including people management
• quantitative methods in business
• finance for managers
• research and academic writing.
The qualification is ideal for those who have started, or are planning to move into, a career in
private or public sector business. Successful completion of the Level 4 Diploma in Business
Management qualification will enable learners to progress to further study or employment.
QUALITY, STANDARDS AND RECOGNITIONS

OTHM Qualifications are approved and regulated by Ofqual (Office of Qualifications and
Examinations Regulation). Visit the register of Regulated Qualifications.
OTHM has progression arrangement with several UK universities that acknowledges the
ability of learners after studying Level 3-7 qualifications to be considered for advanced entry
into corresponding degree year/top up and Master’s/top-up programmes.
REGULATORY INFORMATION
Qualification Title OTHM Level 4 Diploma in Business Management
Ofqual Reference Number 603/2174/X
Regulation Start Date 25-Aug-2017
Operational Start Date 31-Aug-2017
Duration 1 Year
Total Credit Value 120 Credits
Total Qualification Time (TQT) 1200 Hours
Guided Learning Hours (GLH) 480 Hours
Sector Subject Area (SSA) 15.3 Business Management
Overall Grading Type Pass / Fail
Assessment Methods Coursework
Language of Assessment English

EQUIVALENCES
OTHM qualifications at RQF Level 4 represent practical knowledge, skills, capabilities and
competences that are assessed in academic terms as being equivalent to Higher National
Certificates (HNC) and Year 1 of a three-year UK Bachelor's degree programme.
QUALIFICATION STRUCTURE
The OTHM Level 4 Diploma in Business Management consists of 6 mandatory units for a
combined total of 120 credits, 1200 hours Total Qualification Time (TQT) and 480 Guided
Learning Hours (GLH) for the completed qualification.
Unit Ref. No. Unit title Credit GLH TQT

M/616/0694 Research and Academic Writing 20 80 200
M/616/2719 Business Environment 20 80 200
H/616/2720 Introduction to Business Communication 20 80 200
T/616/0695 Introduction to Quantitative Methods 20 80 200
K/616/2721 Introduction to Business Functions 20 80 200
M/616/2722 Introduction to Finance 20 80 200
DEFINITIONS
Total Qualification Time (TQT) is the number of notional hours which represents an
estimate of the total amount of time that could reasonably be expected to be required in
order for a Learner to achieve and demonstrate the achievement of the level of attainment
necessary for the award of a qualification.
Total Qualification Time is comprised of the following two elements –

a) the number of hours which an awarding organisation has assigned to a qualification
for Guided Learning, and
b) an estimate of the number of hours a Learner will reasonably be likely to spend in
preparation, study or any other form of participation in education or training, including
assessment, which takes place as directed by – but, unlike Guided Learning, not
under the Immediate Guidance or Supervision of – a lecturer, supervisor, tutor or
other appropriate provider of education or training.
(Ofqual 15/5775 September 2015)
Guided Learning Hours (GLH) is defined as the hours that a teacher, lecturer or other
member of staff is available to provide immediate teaching support or supervision to a
student working towards a qualification.
Credit value is defined as being the number of credits that may be awarded to a Learner for
the successful achievement of the learning outcomes of a unit. One credit is equal to 10
hours of TQT.

ENTRY REQUIREMENTS
For entry onto the OTHM Level 4 Diploma in Business Management qualification, learners
must possess:
• Relevant NQF/QCF Level 3 Award/Diploma or at the level of GCE/GCSE or
equivalent
• Mature learners (over 21) with management experience (learners must check with
the delivery centre regarding this experience prior to registering for the programme)
• Learner must be 18 years or older at the beginning of the course
• English requirements: If a learner is not from a majority English-speaking country
must provide evidence of English language competency. For more information visit
English Language Expectations page.
PROGRESSION
Successful completion of Level 4 Diploma in Business Management provides learners the
opportunity for a wide range of academic progressions including OTHM Level 5 Diploma in
Business Management. As this qualification is approved and regulated by Ofqual (Office of
the Qualifications and Examinations Regulation), learners are eligible to gain direct entry into
Year 2 of a three-year UK Bachelor’s degree programme. For more information visit
University Progressions page.
DELIVERY OF OTHM QUALIFICATIONS

OTHM do not specify the mode of delivery for its qualifications, therefore OTHM Centres are
free to deliver this qualification using any mode of delivery that meets the needs of their
Learners. However, OTHM Centres should consider the Learners’ complete learning
experience when designing the delivery of programmes.
OTHM Centres must ensure that the chosen mode of delivery does not unlawfully or unfairly
discriminate, whether directly or indirectly, and that equality of opportunity is promoted.
Where it is reasonable and practicable to do so, it will take steps to address identified
inequalities or barriers that may arise.
Guided Learning Hours (GLH) which are listed in each unit gives the Centres the number of
hours of teacher-supervised or direct study time likely to be required to teach that unit.
ASSESSMENT AND VERIFICATION

All units within this qualification are internally assessed by the centre and externally verified
by OTHM. The qualifications are criterion referenced, based on the achievement of all the
specified learning outcomes.
To achieve a ‘pass’ for a unit, learners must provide evidence to demonstrate that they have
fulfilled all the learning outcomes and meet the standards specified by all assessment

criteria. Judgement that the learners have successfully fulfilled the assessment criteria is
made by the Assessor.
The Assessor should provide an audit trail showing how the judgement of the learners’
overall achievement has been arrived at.
RECOGNITION OF PRIOR LEARNING AND

ACHIEVEMENT
Recognition of Prior Learning (RPL) is a method of assessment that considers whether
learners can demonstrate that they can meet the assessment requirements for a unit
through knowledge, understanding or skills they already possess and do not need to
develop through a course of learning.
RPL policies and procedures have been developed over time, which has led to the use of a
number of terms to describe the process. Among the most common are:
• Accreditation of Prior Learning (APL)
• Accreditation of Prior Experiential Learning (APEL)
• Accreditation of Prior Achievement (APA)
• Accreditation of Prior Learning and Achievement (APLA)
All evidence must be evaluated with reference to the stipulated learning outcomes and
assessment criteria against the respective unit(s). The assessor must be satisfied that the
evidence produced by the learner meets the assessment standard established by the
learning outcome and its related assessment criteria at that particular level.
Most often RPL will be used for units. It is not acceptable to claim for an entire qualification
through RPL. Where evidence is assessed to be only sufficient to cover one or more
learning outcomes, or to partly meet the need of a learning outcome, then additional
assessment methods should be used to generate sufficient evidence to be able to award the
learning outcome(s) for the whole unit. This may include a combination of units where
applicable.
EQUALITY AND DIVERSITY

OTHM Qualifications has adopted a policy of providing equal opportunities for its learners,
staff, applicants and others involved in its work. One aspect of this policy is its intention to
prevent, as far as possible, the harassment of one person by another, whether on the basis
of gender, sexual orientation, sexuality, race or ethnic origin, religion, disability, or any other
personal attributes or views held. The qualification is expressly designed to support equality
of opportunity and widening access to HE to all who can benefit from it, and it will operate on
an inclusive and supportive basis to and for all learners.

CONTACT DETAILS
OTHM Qualifications
Regus House, Victory Way, Crossways Business Park, Dartford, Kent DA2 6QD
United Kingdom
Tel : +44(0)20 7118 4243

Email : [email protected]
Website : www.othm.org.uk

UNIT SPECIFICATIONS

UNIT 01: RESEARCH AND ACADEMIC WRITING
Unit Reference Number M/616/0694

Unit Title Research and Academic Writing
Unit Level 4
Number of Credits 20
Mandatory / Optional Mandatory
Unit Grading Structure Pass / Fail
Unit Aims
The aim of this unit is to enable learners to develop effective research plans, to evaluate
different research methods, to use a high standard of academic writing, and to use
independent learning techniques to support their self-development.
Learning Outcomes and Assessment Criteria
Learning Outcome – Assessment Criterion –

The learner will: The learner can:
1 Understand the use of 1.1 Distinguish different sources of information used in
different sources of academic writing.
information and research
1.2 Evaluate the benefits of using different sources of
formulation.
information when compiling academic writing.
1.3 Explain how to formulate research aim(s), objectives
and questions.
2 Be able to conduct a 2.1 Review literature using a range of sources.
basic literature review.
2.2 Develop arguments from different perspectives in line
with findings.
2.3 Present the output of the literature review.
3 Be able to evaluate 3.1 Evaluate the different methods of collecting and
research and data analysing data.
collection methods.
3.2 Use different methods to collect and analyse data.
4 Be able to produce 4.1 Explain the importance of avoiding plagiarism and
academic work applying academic misconduct.
the Harvard Referencing
4.2 Produce a piece of academic writing, applying the
system.
Harvard Referencing system.
5 Be able to use 5.1 Use study plans to achieve research and academic
techniques for writing objectives.
independent learning,
5.2 Use independent learning techniques.

self-study and evaluation 5.3 Reflect on research and academic writing.

of own academic work.
Indicative contents
Topic Course Coverage

Learning Outcome 1 • Sources of information: secondary and primary sources;
Understand the use of questionnaires, interviews, books, journals, internet; scope
different sources of and limitations
information. • Research formulation: aims and objectives; rationale for
selection; methodology for data collection and analysis;
literature review; critique of references
• Formulating: aims and objectives; terms of reference;
duration; ethical issues.
• Action plan: rationale for research question or hypothesis;
milestones; task dates.
• Research design: type of research e.g. qualitative,
quantitative, systematic,
• original; methodology; resources; statistical analyses; validity;
reliability;
• control of variables
Learning Outcome 2 • Hypothesis: definition; suitability; skills and knowledge
Be able to conduct a • Review relevant literature: review dates; monitoring/reviewing
basic literature review. process.
• Create systems to enable reflection of review literature.
Learning Outcome 3 • Implement: according to research design and method; test
Be able to evaluate research
research and data • Hypotheses; considering test validity; reliability
collection different • Data collection: selection of appropriate tools for data
methods collection; types e.g. qualitative, quantitative; systematic
recording; methodological problems e.g. bias, variables and
control of variables, validity and reliability
• Data analysis and interpretation: qualitative and quantitative
data analysis. Use statistical software.
Learning Outcome 4 • Use appropriate and unbiased referencing format to develop
Be able to produce writing: Harvard referencing system; appropriate software use;
academic work paraphrasing; summarising; in-text citations; bibliographic
applying the Harvard citations. Knowledge of numeric reference; footnotes.
Referencing system.
Learning Outcome 5 • Outcomes: align aims and objectives to outcomes and review
Be able to use to evaluate research process. project planning, evidence and
techniques for findings, validity, reliability, benefits, difficulties, conclusion(s)
independent learning, • Future consideration: significance of research investigation;
self-study and application of research results; implications; limitations of the
evaluation of own investigation; improvements; recommendations for the future,
academic work areas for future research project planning, aims and
objectives, evidence and findings, validity, reliability, benefits,

difficulties, conclusion(s)
• Future research: significance of research investigation;
application of results; limitations; improvements;
recommendations for the future, areas for future research
Assessment
To achieve a ‘pass’ for this unit, learners must provide evidence to demonstrate that they
have fulfilled all the learning outcomes and meet the standards specified by all assessment
criteria.
Learning Outcomes Assessment criteria Assessment Word count

to be met covered type (approx. length)
All 1 to 5 All ACs under LO 1 to 5 Coursework 2500 words
Indicative Reading list

Barras, R. (2005) Students must write: A guide to better writing in coursework and
examinations. Abingdon, Oxon: Routledge
Binsardi, A. (2008) Research Methods for Management. Cambridge: International Academic

Press.
Booth, A., Papaioannou, D. and Sutton, A. (2012) Systematic Approaches to a Successful

Literature Review. London: Sage Publications.
Burns, R. P. and Burns, R. (2008) Business Research Methods & Statistics Using SPSS.
London: Sage Publications.
Cooper, D. R. and Schindler, P. S. (2006) Business Research Methods. Boston: McGraw

Hill.
Cottrell, S (2008) The Study Skills Handbook. 3rd Edition. Basingstoke: Palgrave
Cottrell, S. (2008) Skills for Success: Personal Development and Employability. London:
Palgrave Macmillan
Deniels, P. and Becker, L. (2012) Developing Research Proposals. London: Sage

Publications.
Denscombe, M. (2007) The Good Research Guide. Maidenhead: Open University Press.
Fink, A. (2009) Conducting Research Literature Reviews. London: Sage Publications.
Jesson, J. K., Matheson, L. and Lacey, F. M. (2011) Doing Your Literature Review. London:
Sage Publications.
Keleman, M. L. and Rumens, N. (2008). An Introduction to Critical Management Research.

London: Sage Publications.
Marshall, L. (1998) A Guide to Learning Independently. New York: Longman.

McClave, H.J. (2008) Communication for Business. 4th Edition. Ireland: Gill & Macmillan
McNiff, J. and Whitehead, J. (2009) Doing and Writing Action Research. London: Sage
Publications.
Saunders, M., Lewis, P. and Thornhill, A. (2009) Research Methods for Business Learners.
Harlow: Financial Times/Prentice Hall.
Thomas, R. and Lynn, P. (2009) Survey Research in Practice. London: Sage Publications.

UNIT 02: BUSINESS ENVIRONMENT

Unit Title Business Environment
Unit Level 4
Unit Aims
The aim of this unit to develop learners’ understanding of the dimensions of the business
environment, including various business types and purpose.

1 Understand business 1.1 Compare different types of organisations and their
organisations, their purposes.
purpose and
1.2 Explain the stakeholder roles and strategic
stakeholders.
responsibilities.
1.3 Explain how different stakeholders’ objectives are met.
2 Understand the 2.1 Explain economic systems in relation to resource
economic implications of allocation and utilisation.
operating businesses.
2.2 Assess the influences of fiscal and monetary policies
on business activities.
2.3 Assess the impact of competition.
2.4 Evaluate the impact of regulation activities on
organisations.
3 Understand business 3.1 Explain market decisions and its influences on the
market environments. policies of a specified business.
3.2 Evaluate an organisation’s response to market forces.
3.3 Explain the importance of assessing culture in the
business environment.
4 Understand the effects of 4.1 Explain the value of international markets to UK
Global Markets and the businesses.
need for organisations to
4.2 Explain global factors affecting businesses.
operate globally.
4.3 Evaluate the impacts of EU policies on UK
businesses.

Indicative contents

Learning Outcome 1 • Structure & purpose: Legal structure; type e.g. sole trader,
Understand business voluntary organisation, co-operative, private company, public
organisations, their company, government, voluntary organisation, co-operative,
purpose and charitable; sector (primary, secondary tertiary) mission; vision;
stakeholders. aims; objectives; goals; values; profitability; market share;
growth; sales; service level; customer satisfaction; corporate
social responsibility; ethical issues.
• Stakeholders: owners; customers; government agencies;
suppliers; employees; debtors; creditors; financial institutions;
trade unions environmental groups; trade unions
• Strategic responsibility: stakeholder interests; conflict of
expectations; power-influence matrix; satisfying stakeholder
objectives; legal responsibilities e.g. consumer legislation,
employee legislation, equal opportunities and anti-
discriminatory legislation, environmental legislation, health
and safety legislation; ethical issues e.g. environment, fair
trade, global warming, charter compliance e.g. Banking Code
Learning Outcome 2 • Economics: The allocation of scarce resources; government
Understand the borrowing; inflation; resources; balance of payments; taxation;
economic implications type of economic system; labour force; balance of trade;
of operating exchange rates; trading partners; public finances; business
businesses. behaviour; economic goals;
• Fiscal policy: control of aggregate demand; central and local
government spending
Learning Outcome 3 • Markets: Perfect competition, monopoly, monopolistic
Understand business competition, oligopoly, competitive advantage, strategies
market environments. adopted by firms; regulation of competition; supply and
demand, elasticity of demand and supply; customer
perceptions and actions, pricing.
• Microeconomics and Macroeconomics concepts: Monetary
and fiscal policies; market structure; supply and demand;
competition policies. Evaluate the need for businesses to take
into account country’s economic policies when operating.
decisions; cost and output decisions; economies of scale, the
short run; the long run, multi-national and transnational
corporations; joint ventures, outsourcing; core markets; labour
market trends; employee skills, technology; innovation;
research and development; core competencies; business
environment (political, economic, social, technical, legal,
environmental); cultural environment
Learning Outcome 4 • International trade and the UK economy: international
Understand the effects business environment (political, economic, social, technical,
of Global Markets and legal, environmental); protectionism; market opportunities;
the need for global growth; World Trade Organisation (WTO); emerging
organisations to markets (BRICS economies – Brazil, Russia, India, China,
operate globally. South Africa); EU membership; EU business regulations and
their incorporation in to UK law; EU policies; labour

movement; taxation regimes; workforce skills; exchange rates;

trading blocs labour costs; trade duties; levies; tariffs; customs
dues; international competitiveness; investment incentives;
cost of capital; commodity prices; intellectual property; climate
change
Assessment
To achieve a ‘pass’ for this unit, learners must provide evidence to demonstrate that
they have fulfilled all the learning outcomes and meet the standards specified by all
assessment criteria.
Learning Outcomes Assessment criteria Assessment type Word count

to be met covered (approx. length)

Cross, F. and Miller, R. (2014) The legal environment of business: Text and cases. Mason:
Cengage Learning.
Czinkota, M., Ronkainen, I., Moffett, M., Marinova, S. and Marinov, M. (2009). International
Business. West Sussex: Wiley
Dicken, P. (2007) Global Shift: mapping the changing contours of the world economy.
London: Sage
Hamilton, L. and Webster, P. (2009) The International Business Environment. Oxford:

Oxford University Press
Hastings, H. and Saperstein, J. (2007) Improve Your Marketing to Grow Your Business. New
York: Wharton School Publishing.
Hooley, G., Saunders, J., Piercy, N. F. and Nicoulaud, B. (2007) Marketing Strategy and
Competitive Positioning. 4th Edition. Harlow: Financial Times/Prentice Hall.
Sloman, J. and Hinde, K. (2007) Economics for Business. 4th Edition. Harlow: Pearson
Education
Wetherly, P. and Otter, D. (2008) The Business Environment. Oxford: Oxford University
Press
Worthington, I. (2009) The Business Environment. Harlow: FT Prentice Hall.

UNIT 03: INTRODUCTION TO BUSINESS COMMUNICATION
Unit Reference Number H/616/2720

Unit Title Introduction to Business Communication
Unit Level 4
Unit Aims
The aim of this unit is to enhance learners’ business communication skills and enable them
to operate confidently in the business world. Learners will be able to:
• make persuasive presentations
• negotiate convincingly
• write reports that address and/or solve strategic problems
• write promotional material
• enhance their cultural awareness
• enhance their understanding of cross-cultural communication, and the role of
languages in business.

1 Understand the principles 1.1 Categorise the aims of business communication.
which govern
1.2 Evaluate the benefits and limitations of a particular
communication in
communication medium in a given situation.
business situations.
1.3 Explain how relationships between people affect
communication.
1.4 Explain different communication models.
2 Be able to compose 2.1 Produce common types of formal business
common types of written communications using language appropriate for its
communication. purpose.
2.2 Produce types of informal business communications
using language appropriate for its purpose.
3 Understand the principles 3.1 Explain how to communicate effectively face to face in
of oral and non-verbal both formal and informal situations.
communication
3.2 Explain how body language and physical appearance
can help or hinder communication.

4 Understand common 4.1 Explain how communication barriers caused by the

barriers to communication sender of a message in oral, written or non-verbal
and how they are form can be overcome.
overcome.
4.2 Explain how communication barriers caused by the
receiver of a message can be overcome.
5 Understand the role of 5.1 Assess how computers and other modern
technology in business communication technologies help communication
communication. within companies and throughout the modern
business world.
5.2 Explain common threats to the security of business
data held on computer.
5.3 Explain how to protect business data against security
threats.
Indicative contents

Learning Outcomes 1 and 3 • Types of information: verbal; written; onscreen; multi-
Different types of business media; web based
information • Purpose of information: updating knowledge;
informing future developments; SWOT analysis;
communicating sales promotions; inviting support for
activities
• Sources of information: internal, e.g. financial, human
resources, marketing, purchasing, sales,
manufacturing, administration; external
Learning Outcomes 2, 3, 4 • Presentation methods: e.g. document, use of style,
and 5 verbal presentations, role plays, onscreen multi-media
Presenting business presentation, use of images, web-based presentation,
information effectively multi-lingual support
• Output requirement: e.g. images, page layout, text
formatting, use of tables, combining information from
a range of applications, use of software and hardware
• Corporate communication: methods; mission
statements, advertising, packaging, logos
Learning Outcomes 4 and • Legal issues: relevant data protection legislation e.g.
5 Data Protection Act 1998, Freedom of Information Act
Issues and constraints in 2000; other relevant legislation, e.g. Computer Misuse
relation to the use of business Act 1990
information • Ethical issues: codes of practice, e.g. on use of email,
in organisations internet, ‘whistle blowing’; organisational policies;
information ownership
• Operational issues: security of information; backups;
health and safety; organisational policies; cost of
development; impact of increasing sophistication of
systems
Learning Outcomes 2, 3, 4 • Audience requirements: eg age, gender, ethnicity,

and 5 special needs, accessibility, business experience and

Communicating business knowledge, industry-related experience and
information using appropriate knowledge
methods • Methods of written communication: eg letter,
memorandum, fax, invoice, flow charts, publicity
material, email and screen based, SMS (short
message service), www (worldwide web)
• Methods of non-written communication: eg telephone
call, video conferencing
• Technologies: computers; touch screens; digital
broadcasting; DVD mobile phones; the internet and
WAP
• Communication skills: formal/informal; verbal/non-
verbal; listening; understanding; seeking clarification;
responsiveness; eye contact; facial expressiveness;
body language; use of appropriate professional
language
Assessment
criteria.


Clutterbuck, D. and Hirst, S. (2003) Talking Business: Making Communication Work.
Lincolnshire: Butterworth-Heinemann
Hastings, H. and Saperstein, J. (2007) Improve Your Marketing to Grow Your Business. New
York: Wharton School Publishing.
Hooley, G., Saunders, J., Piercy, N. F. and Nicoulaud, B. (2007) Marketing Strategy and
Competitive Positioning. 4th Edition. Harlow: Financial Times/Prentice Hall.
Kotler, P. and Armstrong, G. (2008) Principles of Marketing. 13th Edition. New York: Prentice
Hall.
Kotler, P. and Keller, K. L. (2008) A Framework for Marketing Management. London:

Pearson Education.
Thill, J V. and Bovee, C L. (2012) Excellence in Business Communication. 10th Edition.

USA: Prentice Hall

UNIT 04: INTRODUCTION TO QUANTITATIVE METHODS
Unit Reference Number T/616/0695

Unit Title Introduction to Quantitative Methods
Unit Level 4
Unit Aims
The aim of this unit is to review the basic concepts in mathematics, algebraic equations,
graph construction, matrix algebra and probability that need to be understood by all business
learners. The emphasis rests on applying these concepts to a variety of mathematical
problems encountered in business contexts.

Understand the rules of 1.1 Apply the four rules of numeracy.
numeracy.
1 1.2 Express numbers in standard form.
1.3 Multiply and divide negative numbers.
Be able to make and 2.1 Compare numbers and approximate data.
apply calculations
2 2.2 Determine values for simple financial transactions.
relevant to business.
2.3 Make and apply calculations.
Be able to use algebraic 3.1 Solve equations using algebraic methods.
methods to solve
3 3.2 Solve equations using roots or logarithms.
business problems.
3.3 Determine the equation of a straight line.
Be able to construct and Draw charts and diagrams derived from tabular
4.1
use graphs, charts and business data.
diagrams in a business
Plot graphs, applying the general rules and principles
4 context. 4.2
of graphical construction.
Plot and interpret mathematical graphs of business
4.3
data.
Be able to apply 5.1 Distinguish between different types of business data.
5 statistical methods to
5.2 Represent and interpret business data.

provide business and

management 5.3 Determine and interpret summary statistics.
information.
Be able to apply the laws Explain the application of the laws of probability in a
6.1
of probability to find business context
6 solutions to business
6.2 Calculate the expected value of an outcome.
problems.
6.3 Determine probabilities using the normal distribution.
Indicative contents
Learning Outcome 1 Application of the rules of numeracy to whole numbers,
Basic Rules of numeracy fractions and decimals
Comparing numbers and approximate data and
percentages
Approximating data using rounding, significant figures.
Interpret, transpose and evaluate formulae
Learning Outcome 2 Roots and powers; logarithms and exponential values.

Making and apply Simple financial transactions involving purchases,
calculations relevant to wages, taxation, discounts
business Simple and compound interest
Depreciation
Foreign currency conversion
Learning Outcome 3 Linear and simultaneous equations.

Use algebraic methods to Quadratic equations
solve business problems Equation of a straight line
Learning Outcomes 3 and • Methods of data presentation.

4 • Interpretation of data in business.
Constructing and using • Charts and diagrams derived from tabular data
graphs, charts and diagrams • Mathematical graphs
in a business context • Graphing quadratic, exponential and logarithmic
equations
Learning Outcomes 2 and • Quantitative and qualitative data

5 • Definition of discrete and continuous data
Statistical Methods • Represent and interpret data using histograms
cumulative frequency curves
• Measures of central tendency and their correct
selection and application.
• Calculation of averages (e.g. mean, mode and median),
for different types of data/data sets.
• Measures of dispersion

Learning Outcome 6 • Concept of probability

Application of the laws of • Determining probabilities,
probability to find solutions to • Calculating the expected value of an outcome
business problems • Probabilities and normal distribution
Assessment
criteria.

Dewhurst, F. (2006) Quantitative methods for Business and Management. 2nd Edition. New
York: McGraw-Hill
Morris, C. (2012) Quantitative Approaches in Business Studies. 8th Edition. New Jersey:
Prentice Hall

UNIT 05: INTRODUCTION TO BUSINESS FUNCTIONS
Unit Reference Number K/616/2721

Unit Title Introduction to Business Functions
Unit Level 4
Unit Aims
The aim of this unit is to develop learners’ understanding of businesses types and various
external influences on organisations such as the comparative environmental framework.

1 Understand business 1.1 Explain key business terms related to corporate
objectives, objectives.
accountability for them,
1.2 Determine human and other resources required by a
and how they are
business.
resourced,
2 Understand the 2.1 Classify an economy by sectors.
structure and
2.2 Evaluate different forms of corporate legal structure.
classification of
businesses.
3 Understand factors that 3.1 Explain economies and diseconomies of scale.
influence the
3.2 Explain the factors that influence the location of a
production process.
business.
3.3 Evaluate the efficiency and effectiveness of a
production process in a business context.
4 Be able to articulate the 4.1 Explain the importance of the marketing process.
elements of the
4.2 Define terms: market segmentation, Product Life Cycle,
marketing process
Unique Selling Point.
including strategy,
planning and research. 4.3 Explain marketing strategy in terms of company
objectives, available resources and market possibilities.
4.4 Explain different methods of market research.
5 Understand accounting 5.1 Define basic accounting and budgeting concepts.
concepts and sources
5.2 Differentiate between different sources of finance for
of finance for business.
business.

6 Understand factors 6.1 Describe workforce planning and how to manage

involved in workforce labour turnover for a business.
planning and the
importance of 6.2 Evaluate different motivation theories.
motivation. 6.3 Evaluate contemporary approaches to motivation.
Indicative contents

Learning Outcomes 1 and • The structure and classification of business
2 • Classification an economy by sector: primary, secondary,
The structure and tertiary
classification of business • The difference between the private sector and the public
sector in terms of ownership and objectives
• Advantages and disadvantages of different forms of legal
structure: sole trader, partnership, franchise, private
limited company, public limited company
• Vision and mission statements
Learning Outcome 6 • The need for human resource planning, and the
An introduction to human importance of motivation in theory and in practice
resource management in • Workforce planning in action
business • Different approaches to recruitment, selection, induction
and training.
• Motivation theories and different practical approaches to
motivation,
• Benefits and disadvantages of different means of
remuneration: piecework, time-based wage, salary,
commission, profit sharing, share ownership, fringe
benefits
Learning Outcome 5 • Main accounting concepts and sources of finance for
An introduction to business.
accounting and finance in • Basic accounting terms: fixed costs, variable costs,
business revenue, profit, break-even, working capital.
• The purpose of budgets and cash flow forecasts;
advantages and disadvantages
• Appropriate source of finance to match a business need
e.g. overdraft for temporary expansion of stock levels.
• Relative benefits and disadvantages of each type of
finance.
Learning Outcome 4 • The marketing process including marketing strategy,
An introduction to marketing planning and market research
marketing in business • Key marketing terms, including market segmentation,
Product Life Cycle, marketing mix, niche market, mass
market, Unique Selling Point.
• Marketing strategy in terms of company objectives,
available resources and market possibilities
• Alternative methods of market research, primary,

secondary
Learning Outcome 3 • How the external environment creates opportunities and
The external environment threats for a business
• The effect on businesses of changes in external
economic factors: interest rates, exchange rates,
inflation, unemployment, the business cycle, government
legislation, technology.
• Other non-economic influences on business activity:
environmental, cultural, moral and ethical.
• How firms can use PESTEL (political, economic, social,
technological, environmental, legislative influences)
analysis as part of a business strategy
Assessment
criteria.

to be met Covered (approx. length)

Brooks, I. Weatherston, J. and Wilkinson, G. (2011) The International Business
Environment. 2nd Edition London: Pearson
Erbert, J. and Griffin, R.W. (2013) Business Essentials, global edition. 9th Edition. London:
Financial Times Prentice Hall.
Mullins, L.J. (2010) Management and Organisational Behaviour. 9th Edition. Essex, UK:
Pearson Education
Rae, D. (2007) Entrepreneurship: From opportunity to action. Hampshire: Palgrave

Macmillan
Reuvid, J. (2006) Start-up and run your own business. London: Kogan Page.
Robinson, K. (2005) The element: How finding passion changes everything. London:
Penguin.
Stokes, D. and Wilson, N. (2006) Small business management and entrepreneurship.

London: Thomson.

UNIT 06: INTRODUCTION TO FINANCE

Unit Title Introduction to Finance
Unit Level 4
Unit Aims
The aim of this unit is to develop learners’ understanding of the current regulations
governing financial reporting, as well as the purpose and formats of financial statements for
different users.

1 Understand sources 1.1 Assess the benefits and limitations of the different sources
of finance available of finance.
to a business.
1.2 Evaluate appropriate sources of finance for a business
project.
2 Understand finance 2.1 Determine the costs of different sources of finance.
as a resource within
2.2 Explain the importance of financial planning.
a business.
2.3 Assess the information needs of different decision makers
in a business.
2.4 Explain the impact of sources of finance on the financial
statement.
3 Be able to make 3.1 Analyse budgets and recommend appropriate decisions.
financial decisions
3.2 Explain the calculation of unit costs.
based on financial
information. 3.3 Make pricing decisions using relevant information.
3.4 Assess the viability of a project using investment appraisal
techniques.
4 Be able to assess 4.1 Compare formats of financial statements appropriate for
the financial different types of business.
performance of a
4.2 Interpret financial statements using appropriate ratios and
business.
comparisons, both internal and external.

Indicative contents

Learning Outcomes 1 and 2 • Range of sources: sources for different businesses;
Understand the sources of long term such as share capital; retained earnings;
finance available to a business loans; third-party investment; short/medium term such
as hire purchase and leasing; working capital stock
control; cash management; debtor factoring
Implications of choices: legal, financial and dilution of
control implications; bankruptcy
• Choosing a source: advantages and disadvantages of
different sources; suitability for purpose e.g. matching
of term of finance to term of project
Learning Outcome 2 • Finance costs: tangible costs e.g. interest, dividends;
Understand the implications of opportunity costs e.g. loss of alternative projects when
finance as a resource within a using retained earnings; tax effects
business • Financial planning: the need to identify shortages and
surpluses e.g. cash budgeting; implications of failure
to finance adequately; overtrading
• Decision making: information needs of different
decision makers
• Accounting for finance: how different types of finance
and their costs appear in the financial statements of a
business; the interaction of assets and liabilities on
the balance sheet and on international equivalents
under the International Accounting Standards (IAS)
Learning Outcomes 2 and 3 • Terminology: introduction to debit, credit, books of
Be able to make financial prime entry, accounts and ledgers, trial balance, final
decisions based on financial accounts and international equivalents under the
information International Accounting Standards (IAS)
• Financial statements: basic form, structure and
purpose of main financial statements i.e. balance
sheet, profit and loss account, cash flow statement,
notes, preparation not required; changes to reporting
requirements under the International Accounting
Standards (IAS) e.g. statement of comprehensive
income, statement of financial position; distinctions
between different types of business i.e. limited
company, partnership, sole trader Interpretation: use
of key accounting ratios for profitability, liquidity,
efficiency and investment; comparison both external
i.e. other companies, industry standards and internal
ie previous periods, budgets
Learning Outcomes 3 and 4 • Statements: trial balance; assets, liabilities, income,
Be able to evaluate the expenses, capital; profit and loss accounts; balance
financial performance of a sheet; cash flow statement; notes to the accounts;
business statement of recognised gains and losses
• Preparation: from trial balance with adjustments e.g.
stock, prepayments, accruals, bad debts,
depreciation; from incomplete records; basic

consolidation of accounts
Learning Outcomes 3 and 4 • Ratios: calculate ratios to reflect profitability, liquidity,
Interpret financial statements efficiency, gearing, investment; comparison of these
ratios both externally (other companies, industry
standards) and internally (previous periods);
interpretation of results
• Reporting: present findings in a format appropriate to
users; weaknesses and limitations of analysis
Assessment
criteria.


Atrill, P. (2011) Financial management for decision makers. Harlow: FT Prentice Hall.
Atrill, P. and McLaney, E. (2006) Management accounting for decision makers. Harlow:
Prentice Hall.
Atrill, P. and McLaney, E. (2007) Accounting & Finance for Non-specialists. 6th Edition.
London: Financial Times/ Prentice Hall.
Cox, D. and Fardon, M. (1997) Management of Finance. London: Osborne Books.
Drury, C. (2009) Management accounting for business. 4th Edition. London: Cengage
Learning
Dyson, J. R. (2004) Accounting for non-accounting learners. 6th Edition. Harlow: FT Prentice
Hall.
EMEA.
Marsh, C. (2009) Mastering Financial Management. Harlow: FT Prentice Hall.
Van Horne, J. and Wachewicz, J. (2009) Fundamentals of Financial Management. Harlow:

FT Prentice Hall
White, G. I., Sondhi, A. C. and Fried, D. (2003) The Analysis and use of Financial
Statements. 3rd Edition. Hampshire: John Wiley and Sons.

IMPORTANT NOTE
Whilst we make every effort to keep the information contained in programme specification up
to date, some changes to procedures, regulations, fees matter, timetables, etc may occur
during the course of your studies. You should, therefore, recognise that this booklet serves
only as a useful guide to your learning experience. For updated information please visit our
website www.othm.org.uk.

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OTHM LEVEL 4 DIPLOMA IN BUSINESS MANAGEMENT | (RQF) SPECIFICATION

(RQF) SPECIFICATION | AUGUST 2017 | VERSION 1.0 WWW.OTHM.ORG.UK PAGE 1 OF 28

(RQF) SPECIFICATION | AUGUST 2017 | VERSION 1.0 WWW.OTHM.ORG.UK PAGE 2 OF 28

The content of the qualification is focused on:

QUALITY, STANDARDS AND RECOGNITIONS

(RQF) SPECIFICATION | AUGUST 2017 | VERSION 1.0 WWW.OTHM.ORG.UK PAGE 3 OF 28

Unit Ref. No. Unit title Credit GLH TQT

Total Qualification Time is comprised of the following two elements –

(RQF) SPECIFICATION | AUGUST 2017 | VERSION 1.0 WWW.OTHM.ORG.UK PAGE 4 OF 28

DELIVERY OF OTHM QUALIFICATIONS

ASSESSMENT AND VERIFICATION

(RQF) SPECIFICATION | AUGUST 2017 | VERSION 1.0 WWW.OTHM.ORG.UK PAGE 5 OF 28

RECOGNITION OF PRIOR LEARNING AND

EQUALITY AND DIVERSITY

(RQF) SPECIFICATION | AUGUST 2017 | VERSION 1.0 WWW.OTHM.ORG.UK PAGE 6 OF 28

Tel : +44(0)20 7118 4243

(RQF) SPECIFICATION | AUGUST 2017 | VERSION 1.0 WWW.OTHM.ORG.UK PAGE 7 OF 28

(RQF) SPECIFICATION | AUGUST 2017 | VERSION 1.0 WWW.OTHM.ORG.UK PAGE 8 OF 28

UNIT 01: RESEARCH AND ACADEMIC WRITING

Unit Reference Number M/616/0694

Learning Outcomes and Assessment Criteria

Learning Outcome – Assessment Criterion –

(RQF) SPECIFICATION | AUGUST 2017 | VERSION 1.0 WWW.OTHM.ORG.UK PAGE 9 OF 28

self-study and evaluation 5.3 Reflect on research and academic writing.

Topic Course Coverage

(RQF) SPECIFICATION | AUGUST 2017 | VERSION 1.0 WWW.OTHM.ORG.UK PAGE 10 OF 28

Learning Outcomes Assessment criteria Assessment Word count

Indicative Reading list

Binsardi, A. (2008) Research Methods for Management. Cambridge: International Academic

Booth, A., Papaioannou, D. and Sutton, A. (2012) Systematic Approaches to a Successful

Cooper, D. R. and Schindler, P. S. (2006) Business Research Methods. Boston: McGraw

Deniels, P. and Becker, L. (2012) Developing Research Proposals. London: Sage

Fink, A. (2009) Conducting Research Literature Reviews. London: Sage Publications.

Keleman, M. L. and Rumens, N. (2008). An Introduction to Critical Management Research.

Marshall, L. (1998) A Guide to Learning Independently. New York: Longman.

(RQF) SPECIFICATION | AUGUST 2017 | VERSION 1.0 WWW.OTHM.ORG.UK PAGE 11 OF 28

(RQF) SPECIFICATION | AUGUST 2017 | VERSION 1.0 WWW.OTHM.ORG.UK PAGE 12 OF 28

UNIT 02: BUSINESS ENVIRONMENT

Unit Reference Number M/616/2719

Learning Outcomes and Assessment Criteria

(RQF) SPECIFICATION | AUGUST 2017 | VERSION 1.0 WWW.OTHM.ORG.UK PAGE 13 OF 28

Topic Course Coverage

(RQF) SPECIFICATION | AUGUST 2017 | VERSION 1.0 WWW.OTHM.ORG.UK PAGE 14 OF 28

movement; taxation regimes; workforce skills; exchange rates;

Learning Outcomes Assessment criteria Assessment type Word count

Indicative Reading list

Hamilton, L. and Webster, P. (2009) The International Business Environment. Oxford:

Worthington, I. (2009) The Business Environment. Harlow: FT Prentice Hall.

(RQF) SPECIFICATION | AUGUST 2017 | VERSION 1.0 WWW.OTHM.ORG.UK PAGE 15 OF 28

UNIT 03: INTRODUCTION TO BUSINESS COMMUNICATION

Unit Reference Number H/616/2720

Learning Outcomes and Assessment Criteria

Learning Outcome – Assessment Criterion –

(RQF) SPECIFICATION | AUGUST 2017 | VERSION 1.0 WWW.OTHM.ORG.UK PAGE 16 OF 28

4 Understand common 4.1 Explain how communication barriers caused by the

Topic Course Coverage

(RQF) SPECIFICATION | AUGUST 2017 | VERSION 1.0 WWW.OTHM.ORG.UK PAGE 17 OF 28

and 5 special needs, accessibility, business experience and