Management Of Business Syllabus 1o2x8

         

CARIBBEAN  EXAMINATIONS  COUNCIL     Caribbean  Advanced  Proficiency  Examination  

CAPE®

MANAGEMENT OF BUSINESS SYLLABUS Effective for examinations from May/June 2004

Including amendments up to 2009

 

CXC A24/U2/03

Published in Jamaica, 2010 by Ian Randle Publishers 11 Cunningham Avenue P.O Box 686 Kingston 6 www.ianrandlepublishers.com © 2010, Caribbean Examinations Council ISBN 978-976-637-478-5 (pbk)   All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form, or by any means electronic, photocopying, recording or otherwise without prior permission of the author or publisher.   Cover and book design by Ian Randle Publishers Correspondence related to the syllabus should be addressed to: The Pro-Registrar Caribbean Examinations Council Caenwood Centre 37 Arnold Road, Kingston 5, Jamaica, W.I. Telephone: (876) 630-5200 Facsimile Number: (876) 967-4972 E-mail address: [email protected] Website: www.cxc.org Copyright © 2003 by Caribbean Examinations Council The Garrison, St Michael BB14038, Barbados

 

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Contents tion

RATIONALE ..........................................................................................................................................1 AIMS .......................................................................................................................................................2 SKILLS AND ABILITIES TO BE ASSESSED.......................................................................................3 STRUCTURE OF THE SYLLABUS ....................................................................................................4 UNIT 1 : MANAGEMENT PRINCIPLES AND PROCESSES MODULE 1: BUSINESS AND ITS ENVIRONMENT .....................................................5 - 10 MODULE 2: THE MANAGEMENT OF PEOPLE............................................................11 - 18 MODULE 3: BUSINESS FINANCE AND ING............................................19 - 23 UNIT 2: APPLICATIONS IN MANAGEMENT MODULE 1: PRODUCTION AND OPERATIONS MANAGEMENT..........................24 - 30 MODULE 2: FUNDAMENTALS OF MARKETING .......................................................31 - 37 MODULE 3: SMALL BUSINESS MANAGEMENT .........................................................38 - 41 OUTLINE OF ASSESSMENT ...............................................................................................................42 - 49 REGULATIONS FOR PRIVATE CANDIDATES ...............................................................................51 REGULATIONS FOR RESIT CANDIDATES ....................................................................................51 ASSESSMENT GRID .............................................................................................................................52

CXC A20/U2/03

 

CXC A20/U2/03

 

T

Introduction

T

he Caribbean Advanced Proficiency Examination (CAPE) is designed to provide certification of the academic, vocational and technical achievement of students in the Caribbean who, having completed a minimum of five years of secondary education, wish to further their studies. The examinations address the skills and knowledge acquired by students under a flexible and articulated system where subjects are organised in 1-Unit or 2-Unit courses with each Unit containing three Modules. Subjects examined under CAPE may be studied concurrently or singly. The Caribbean Examinations Council offers three types of certification. The first is the award of a certificate showing each CAPE Unit completed. The second is the CAPE diploma, awarded to candidates who have satisfactorily completed at least six Units, including Caribbean Studies. The third is the CAPE Associate Degree, awarded for the satisfactory completion of a prescribed cluster of seven CAPE Units including Caribbean Studies and Communication Studies. For the CAPE diploma and the CAPE Associate Degree, candidates must complete the cluster of required Units within a maximum period of five years. Recognized educational institutions presenting candidates for CAPE Associate Degree in one of the nine categories must, on ing these candidates at the start of the qualifying year, have them confirm in the required form, the Associate Degree they wish to be awarded. Candidates will not be awarded any possible alternatives for which they did not apply.

CXC A20/U2/03

 

CXC A20/U2/03

 

T

Management of Business Syllabus ♦ RATIONALE

T

he uncertainties and the dynamic environment within which businesses operate today present serious challenges for business leaders. The growth in economic and social needs in most economies also constitutes another area of great challenge. As students proceed beyond the Caribbean Secondary Education Certificate (CSEC) level, preparing to pursue their career goals, they must be cognisant of the changing socio-economic climate within which modern businesses operate. Management of Business students must understand the principles that govern the human and operational interactions within a business. Also, Management of Business students must be aware of how a business operates within a society. Moreover, it is imperative that the Caribbean management student possesses a comprehensive understanding of the markets in the region, in addition to knowledge of the global marketplace. The CAPE Management of Business syllabus provides opportunities for students to develop the required knowledge and understanding of management principles and practices. The syllabus also equips students with the basic skills required to address managerial problems and the challenges faced by businesses. These skills will enable students to function not only in existing business organisations, but also as independent entrepreneurs. Additionally, the syllabus prepares students to access management training at the tertiary level. In deg this syllabus, a comprehensive approach to management has been adopted. However, special attention was given to ensuring that the aims of the syllabus are realisable within the time frame available for this course.

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♦ AIMS The syllabus aims to: 1.

develop an understanding of the integrated nature of business organisations and the environment in which they operate;

2.

develop an awareness of how global issues impact on the development of business organisations with special reference to the Caribbean;

3.

provide basic information about knowledge of principles, legal issues, and practices of modern management with special reference to the Caribbean;

4.

develop critical thinking skills that involve analysis, evaluation, decision making and problem solving;

5.

develop an understanding of the importance of management of people;

6.

develop skills in communicating information effectively in numerical, graphical and verbal form;

7.

provide opportunities to acquire knowledge and understanding of practical decision-making;

8.

provide opportunities for acquisition of prerequisite knowledge and skills necessary to pursue further studies and career development in the field;

9.

provide knowledge and skills needed to become successful entrepreneurs;

10.

develop attitudes, values, and ethical practices related to business;

11.

develop an appreciation of the need for organisations and individuals to act as responsible citizens.

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♦ SKILLS AND ABILITIES TO BE ASSESSED The skills that students are expected to have developed on completion of this syllabus have been grouped under three main headings: 1.

Knowledge and Comprehension;

2.

Use of Knowledge;

3.

Interpretation and Application.

Knowledge and Comprehension The examinations will test candidates’ skills and ability to: 1.

grasp and recall basic facts, concepts, and principles of management theory;

2.

understand the diverse managerial functions and roles;

3.

understand the impact of workforce diversity on the management of organisations.

Use of Knowledge The examinations will test candidates’ skills and ability to: 1.

select and use facts, theories and concepts appropriately in formulating solutions to business problems;

2.

draw conclusions based on a body of information;

3.

distinguish relationships between various components of business and its environment.

Interpretation and Application The examinations will test candidates’ skills and ability to: 1.

assemble and analyse relevant data and information to make projections and solve problems;

2.

draw logical conclusions and make recommendations about managerial issues.

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♦ STRUCTURE OF THE SYLLABUS The syllabus is divided into two (2) Units. Each Unit comprises three Modules. Each Module requires fifty (50) hours. Unit 1: Management Principles and Processes Module 1 Module 2 Module 3

-

Business and its Environment The Management of People Business Finance and ing

Unit 2: Application in Management Module 1 Module 2 Module 3

-

Production and Operations Management Fundamentals of Marketing Small Business Management

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♦ UNIT 1: MANAGEMENT PRINCIPLES AND PROCESSES MODULE 1: BUSINESS AND ITS ENVIRONMENT GENERAL OBJECTIVES On completion of this Module, students should: 1.

understand the nature and scope of business and its role in society;

2.

understand how different business organisations function;

3.

appreciate the process of decision making and its impact on the environment;

4.

become aware of how the environment impacts on business.

SPECIFIC OBJECTIVES Students should be able to: 1.

distinguish among different types of business activity;

2.

differentiate between public sector and private sector organisations;

3.

explain the importance of setting business objectives;

4.

explain the relationship between business organisations and the economic system in which they operate;

5.

explain the growth and significance of multinational corporations;

6.

explain the nature and culture of the Caribbean business environment;

7.

evaluate the impact of trade liberalisation and globalisation on Caribbean business organisations;

8.

explain the five main constraints that affect decision making in business organisations.

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UNIT 1 MODULE 1: BUSINESS AND ITS ENVIRONMENT (cont'd) CONTENT 1.

Types of Business Activity Classification of economic activity: primary; secondary; tertiary.

2.

Private and Public Sectors (i)

(ii)

3.

Private Sector Organisations: (a)

sole-trader;

(b)

partnerships;

(c)

private limited company;

(d)

public limited company;

(e)

co-operative enterprises;

(f)

franchises;

(g)

t ventures (legal element governing formation, financing and management).

Public Sector Organisations: (a)

public corporations;

(b)

statutory boards.

Business Objectives (i)

The nature, role, and importance of objectives.

(ii)

Short and long-term objectives.

(iii)

Hierarchy of objectives: mission statements; aims; goals; operational objectives.

(iv)

Business ethics and social responsibility.

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UNIT 1 MODULE 1: BUSINESS AND ITS ENVIRONMENT (cont'd) 4.

Business and Economic Systems (i)

(ii)

Examination of the different economic systems: (a)

traditional (subsistence economy);

(b)

planned;

(c)

free market;

(d)

mixed.

Impact of economic systems on business organisations’ size and growth. Criteria for measuring size and growth:

(iii)

5.

(a)

output;

(b)

labour force;

(c)

market shares;

(d)

capital structure.

Advantages and disadvantages of small firms versus large firms with respect to: (a)

size and financial requirements;

(b)

the economies of scale (internal and external) and diseconomies;

(c)

strategies for growth;

(d)

management and control.

Multinationals Definition and examples, reasons for their growth globally and in the Caribbean; advantages and disadvantages of multinationals.

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UNIT 1 MODULE 1: BUSINESS AND ITS ENVIRONMENT (cont'd) 6.

7.

8.

Caribbean Business Environment (i)

Nature and structure of business organisations in the Caribbean.

(ii)

Culture of organisations, for example, group behaviour (management and leadership style) values and norms.

Impact of Trade Liberalisation and Globalisation (i)

The economy.

(ii)

Government.

(iii)

Consumers.

(iv)

Business.

Decision Making (i)

(ii)

Process of decision making: (a)

nature of decision making;

(b)

essential features of information for decision making – accuracy, timeliness, relevance and cost effectiveness.

Stages of decision making (in relation to objectives): (a)

definition of problem;

(b)

data collection – importance and sources;

(c)

analysis and evaluation;

(d)

formulation of alternative strategies;

(e)

implementation;

(f)

evaluation.

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UNIT 1 MODULE 1: BUSINESS AND ITS ENVIRONMENT (cont'd) (iii)

(iv)

Factors affecting decision making: (a)

governmental, political and legal;

(b)

social and cultural;

(c)

technological;

(d)

economic;

(e)

ecological;

(f)

human constraints.

Decision making tools: (a)

the advantages and disadvantages of the use of the following tools - A, decision trees, cost benefit analysis (calculations are required);

(b)

the significance of qualitative versus quantitative decision making.

Suggested Teaching and Learning Activities To facilitate students’ attainment of the objectives in Module 1, teachers are advised to engage students in the teaching and learning activities listed below. 1.

Conduct field investigation (feasibility study) to determine growth or decline in different business sectors.

2.

Engage class in discussion on Porter's Five Forces Model for analysing an industry and industry analysis as a project.

3.

Engage class in discussions and debates on types of business organisations to enable students to recognise advantages and disadvantages of one business organisation over another.

4.

Assign different students to listen to business news (both regional and international) and make an oral presentation to the class to sensitise students to local and regional developments.

5.

Use of newspaper clippings on business news for class discussions and students’ journals.

6.

Invite resource personnel from different types of organisations to share information on their organisations.

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UNIT 1 MODULE 1: BUSINESS AND ITS ENVIRONMENT (cont'd) 7.

Assign expository and argumentative essays on various topics.

8.

Assign group research project to foster team work.

9.

Conduct simulation exercises, role play, video presentations.

10.

Engage class in discussion of case studies.

11.

Conduct study of an existing company's stages of growth and performance.

Teachers and students may identify other activities that are more suitable to their own class settings.

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UNIT 1 MODULE 2: THE MANAGEMENT OF PEOPLE GENERAL OBJECTIVES On completion of this Module, students should: 1.

appreciate the importance of management theories in the operation of business organisations;

2.

understand the roles and responsibilities of employers and employees within an organisation;

3.

develop an awareness of the effects of human motivation on organisational effectiveness;

4.

appreciate the broad formal framework of labour management relations.

SPECIFIC OBJECTIVES Students should be able to: 1.

evaluate the contributions of management theories to present day organisations;

2.

explain the main functions of management;

3.

explain the features of the formal organisational structure;

4.

explain the theories and practices of motivation;

5.

differentiate between types of leadership skills, styles, and roles;

6.

describe the nature, characteristics and importance of effective teams;

7.

analyse the causes of conflict on organisations;

8.

describe potential strategies to resolve conflict in organisations;

9.

explain the importance of effective communication in organisations;

10.

justify the need to cope with, as well as to lead and manage, change in the organisation;

11.

evaluate the importance of human resource management in organisations.

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UNIT 1 MODULE 2: THE MANAGEMENT OF PEOPLE (cont'd) CONTENT 1.

The Need for, and Nature of Organisations The major management theories:

2.

(a)

classical;

(b)

human behaviour;

(c)

systems;

(d)

contingency.

The applications of the functions of management: planning, organising, motivating and controlling (i)

(ii)

Criteria for effective organisational structure: (a)

flexibility;

(b)

satisfying needs of the firm;

(c)

encouraging growth and development;

(d)

incorporating organisational design.

Classification of organisations: (a)

by function;

(b)

by product;

(c)

geographical market;

(d)

matrix;

(e)

team;

(f)

network.

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UNIT 1 MODULE 2: THE MANAGEMENT OF PEOPLE (cont’d) 3.

The Formal Organisational Structure Characteristics of the Formal Organisational Structure:

4.

(a)

hierarchy;

(b)

chain of command;

(c)

span of control;

(d)

line and staff relationship;

(e)

responsibility;

(f)

authority;

(g)

ability;

(h)

delegation;

(i)

centralisation;

(j)

decentralisation.

The Need for Motivation (i)

Factors that stimulate and influence motivation: individual needs; ability to make choices; environmental opportunities.

(ii)

Theories of motivation:

(iii)

(a)

content: Maslow’s hierarchy of needs; McGregor’s Theory X and Y;

(b)

process: Herzberg Hygiene Theory.

Financial and non-financial motivational strategies: (a)

financial incentives: payment systems and their effectiveness; appraisal; job valuation and work study;

(b)

non-financial incentives: individual job needs; participation; job satisfaction; job enrichment and job enlargement; self motivation; opportunities for promotion.

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UNIT 1 MODULE 2: THE MANAGEMENT OF PEOPLE (cont’d)

(iv)

5.

Implication to managers: getting the best out of individuals; appreciation of work and appropriate reward systems.

Leadership (i)

Definition of leadership.

(ii)

Leadership skills:

(iii)

(iv)

(a)

communication;

(b)

critical thinking;

(c)

listening.

Leadership styles: (a)

directive;

(b)

paternalistic;

(c)

constitutional;

(d)

participative.

Leadership role: (a)

guidance;

(b)

direction;

(c)

counselling;

(d)

coaching and inspiration of others;

(e)

informal leadership and its influence on the working of a business.

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UNIT 1 MODULE 2: THE MANAGEMENT OF PEOPLE (cont'd) 6.

Team Management and Conflict (i)

(ii)

7.

Nature of team: (a)

composition;

(b)

interaction;

(c)

shared objectives.

Characteristics of effective teams: (a)

commitment;

(b)

participation;

(c)

trust;

(d)

decision by consensus;

(e)

flexibility;

(f)

encouragement;

(g)

and growth.

Causes of Conflict and Strategies to Manage Conflict (i)

Possible Causes of Conflict: (a)

management style;

(b)

competition for scarce resources;

(c)

lack of communication;

(d)

clash of personalities.

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UNIT 1 MODULE 2: THE MANAGEMENT OF PEOPLE (cont'd) (ii)

8.

Strategies to manage conflict: (a)

avoidance;

(b)

smoothing;

(c)

compromise;

(d)

collaboration;

(e)

confrontation.

(iii)

Advantages and disadvantages of working in teams.

(iv)

Benefits of team management to the organisation.

Communication in Business (i)

Diagram of the Communication Process.

(ii)

Barriers to effective communication: (a)

selective-perceptions;

(b)

attitudes;

(c)

noise;

(d)

cultural bias.

(iii)

Communication methods.

(iv)

Lines of Communication: (a)

formal channel - vertical and horizontal;

(b)

informal channel;

(c)

problems associated with formal channel;

(d)

formal channel versus informal channels.

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UNIT 1 MODULE 2: THE MANAGEMENT OF PEOPLE (cont'd)

9.

10.

(v)

Communication dynamics: employer-employee interface; customer relations.

(vi)

Managing .

Management of Change (i)

Nature of change, technical, economic; demographic, social and legal.

(ii)

Differences between leading and managing change.

(iii)

Resistance to change: fear, disrupted habits, loss of control and confidence, poor training, redistribution of workload and lack of purpose.

(iv)

The importance of communication in the management process.

Human Resource Management (i)

Importance of human resource management in the efficient running of the organisation.

(ii)

Functions: recruitment, selection, compensation, training and development, and performance management.

(iii)

Labour-management relations: collective bargaining, dispute settlements, trends in strike and work-ins, the importance of communication, and the need for reconciliation.

(iv)

Laws affecting health and safety in the work place: (a)

education of employees on safety regulations;

(b)

importance of the provision of safety facilities;

(c)

procedure to deal with safety complaints.

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UNIT 1 MODULE 2: THE MANAGEMENT OF PEOPLE (cont'd) Suggested Teaching and Learning Activities To facilitate students’ attainment of the objectives of Module 2, teachers are advised to engage students in the teaching and learning activities listed below. 1.

Lectures, tutorials and presentations by teachers and other resource persons with specialised knowledge of a wide range of content areas.

2.

Engage class in research and presentations by students (individually and in groups).

3.

Engage class in debates and discussions on topical issues, for example, strikes, salary and wages negotiations, redundancy and its impact on individual behaviour in organisations.

4.

Assign experiential activities.

5.

Conduct role play or simulation exercises.

6.

Engage class in discussion on case studies on motivation, leadership, and decision making.

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UNIT 1 MODULE 3: BUSINESS FINANCE AND ING GENERAL OBJECTIVES On completion of this Module, students should: 1.

understand the roles and functions of finance and ing in the management of business in a global environment;

2.

understand the impact of changes in trade, finance and ing procedures on the overall operations of business;

3.

develop skills to analyse cases related to problems in finance and ing.

SPECIFIC OBJECTIVES Students should be able to: 1.

identify the main needs for funds and how such needs may be met;

2.

differentiate among the main sources of finance;

3.

explain the main criteria that businesses use when seeking short- and long- term finance;

4.

explain the roles, workings and functioning of regional and international money and capital markets;

5.

justify the need for the efficient production of ing records;

6.

explain the main concepts and conventions of ing;

7.

prepare final s, with adjustments, from original data;

8.

interpret financial statements through the use of inspection, comments, and ratios;

9.

explain the purpose, nature, and usefulness of cash and funds flow, budgeting and forecasts;

10.

explain the circumstances in which a firm may choose one investment method as opposed to another.

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UNIT 1 MODULE 3: BUSINESS FINANCE AND ING (cont’d) CONTENT 1.

2.

3.

4.

The Need for Capital (i)

Start-up or venture capital.

(ii)

Working capital.

(iii)

Investment capital.

Sources of Finance (i)

Equity versus debt.

(ii)

Forms of equity: capital and shares.

(iii)

Forms of debt: debentures and bonds.

Criteria for Seeking Finance (i)

Sources of short-term finance: trade creditors and commercial banks.

(ii)

Sources of long-term finance: commercial and development banks, venture capital funds, small business associations, development funds and family.

(iii)

Short-term versus long-term sources of finance.

The role, workings and functioning of regional and international money and capital markets (i)

(ii)

Roles of Regional and International Banking Institutions, for example, CDB, IADB, IMF and World Bank: (a)

provide technical and managerial advice;

(b)

conduct feasibility studies and economic appraisal of countries.

Functioning and Workings of Money and Capital Markets: working knowledge of Stock Exchange of New York, London, Trinidad and Tobago, Jamaica and Barbados.

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UNIT 1 MODULE 3: BUSINESS FINANCE AND ING (cont’d)

5.

6.

7.

Use of ing Information (i)

Stakeholders.

(ii)

Other interested parties.

(iii)

Current ing standards.

ing Procedures and Methods (i)

Basic procedures: debit, credit, posting entries to journals.

(ii)

General ledger applications.

(iii)

Calculation of Final s.

(iv)

Adjustments to Final s: (a)

straight line and declining balance methods of depreciation;

(b)

stock valuation (LIFO, FIFO, Weighted Average);

(c)

provisions for doubtful s;

(d)

goodwill.

Financial Statements and Analysis (i)

Financial Statements: (a)

elements of statements;

(b)

structure of statements;

(c)

types of statements;

(d)

purpose of statements.

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UNIT 1 MODULE 3: BUSINESS FINANCE AND ING (cont’d) (ii)

8.

9.

Financial Analysis: (a)

comments;

(b)

inspections;

(c)

ratios.

Budgetary ing, Simple Calculations of Cash and Funds Flow Statements (i)

Data gathering.

(ii)

Projections.

(iii)

Cash flow management.

(iv)

Interpretation of cash and funds flow statements.

Investment Criteria Analytical method pay back period: average rate of return, net present value, internal rate of return, time value of money, discounted cash flow. (Simple calculations required)

10.

Major ing Concepts (i)

Going Concerns.

(ii)

Accruals.

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UNIT 1 MODULE 3: BUSINESS FINANCE AND ING (cont’d)

Suggested Teaching and Learning Activities To facilitate students’ attainment of the objectives of Module 3, teachers are advised to engage students in the teaching and learning activities listed below. 1.

Engage class in projects, publications, individual, group, and lecture presentations.

2.

Engage students in analysis of published financial statements.

3.

Use case studies in order to reinforce learning and provide opportunities for application of techniques.

4.

Assign students to participate in field trips to established institutions, for example, central banks, insurance companies and stock exchange.

5.

Engage students in listening to taped materials from various sources, for example, radio and television, (C.B.U, B.B.C).

6.

Assign students to use graphics, charts, slides, audio-visual aids, magazines and the Internet.

7.

Assign students to read annual publications of professional journals, for example, N.Y.S.E, Financial Times.

8.

Invite guest speakers from different firms to discuss issues related to business finance and ing.

RESOURCES Birchall, John and Graham Morris

Business Studies, London: Thomas Nelson and Sons Ltd., 1995.

Hall, Dave, Rob Jones and Carlo Raffo

Business Studies, Lancaster: Causeway Press Limited, 1993.

Hammond, Susan

Business Studies, London: Longman Group Ltd., 1994.

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UNIT 2: APPLICATIONS IN MANAGEMENT

MODULE 1: PRODUCTION AND OPERATIONS MANAGEMENT GENERAL OBJECTIVES On completion of this Module, students should: 1.

understand the operations involved in the production of goods and services;

2.

develop awareness of the importance of productivity and quality in production;

3.

appreciate the use of tools and techniques required for production and operations management;

4.

be aware of the impact of the external environment on the production and operations function.

SPECIFIC OBJECTIVES Students should be able to: 1.

identify the major decisions involved in production;

2.

describe the major factors involved in production;

3.

describe the dimensions of production planning;

4.

outline the strategies used in various dimensions of production planning;

5.

examine various strategies used in production control;

6.

explain the dimensions of quality;

7.

describe methods of improving quality;

8.

explain the concept of total quality management;

9.

identify the factors that affect productivity;

10.

explain methods of measuring productivity;

11.

explain methods of improving productivity;

12.

assess the impact of elements in the internal and external environments on production and operations management.

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UNIT 2 MODULE 1: PRODUCTION AND OPERATIONS MANAGEMENT (cont'd) CONTENT 1.

2.

3.

Major Decisions in Production (i)

What to produce.

(ii)

How to produce (job production, batch production and flow production).

(iii)

When to produce.

(iv)

Location.

Factors involved in Production (i)

Market demand.

(ii)

Regulations.

(iii)

Level of competition.

(iv)

Availability of raw materials.

(v)

Supply of labour.

(vi)

Available technology.

Dimensions of Production Planning (i)

Forecasting.

(ii)

Product.

(iii)

Product design.

(iv)

Layout.

(v)

Processes.

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UNIT 2 MODULE 1: PRODUCTION AND OPERATIONS MANAGEMENT (cont'd)

4.

(vi)

Technology.

(vii)

Scheduling.

(viii)

Capacity.

Strategies for Production Planning (i)

(ii)

(iii)

Forecasting techniques: (a)

sales force composite;

(b)

delphi method;

(c)

consumer surveys;

(d)

jury of experts;

(e)

moving average;

(f)

least squares regression.

Product Design Planning: (a)

modularization;

(b)

miniaturisation;

(c)

integration.

Lay out of Business: (a)

process layout;

(b)

production layout;

(c)

Fixed Position Layout.

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UNIT 2 MODULE 1: PRODUCTION AND OPERATIONS MANAGEMENT (cont'd) (iv)

Scheduling: (a)

Critical Path Method (M);

(b)

Project Evaluation and Review Technique (PERT);

(c)

preparation and use of decision trees and simulation.

NB – students are required to prepare and use interpret charts

5.

6.

Control Strategies (i)

Design control.

(ii)

Materials control.

(iii)

Inventory control.

(iv)

Quality control.

The Dimensions of Quality (i)

Performance.

(ii)

Features.

(iii)

Reliability.

(iv)

Conformance.

(v)

Durability.

(vi)

Serviceability.

(vii)

Aesthetics.

(viii)

Perceived quality.

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UNIT 2 MODULE 1: PRODUCTION AND OPERATIONS MANAGEMENT (cont'd) 7.

8.

Methods of Improving Quality (i)

Research and Development (R&D).

(ii)

Quality Circles.

(iii)

Kauzen or Continuous Improvement.

(iv)

Benchmarking, Outsourcing.

Total Quality Management (TQM) (i)

Scope of TQM.

(ii)

Role of internal parties:

(iii)

9.

(a)

managers;

(b)

workers;

(c)

trade unions.

Role of external parties: (a)

suppliers;

(b)

customers;

(c)

consultants.

Factors That Affect Productivity (i)

Internal factors: (a)

labour-management relations;

(b)

required investor returns.

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UNIT 2 MODULE 1: PRODUCTION AND OPERATIONS MANAGEMENT (cont'd) (ii)

10.

11.

12.

External factors: (a)

level of prices;

(b)

regulations and laws, for example anti-pollution laws;

(c)

market demand;

(d)

competition;

(e)

quality of labour supply.

Methods of Measuring Productivity (i)

Output per man hour.

(ii)

Consumer .

(iii)

Quality assurance .

Methods of Improving Productivity (i)

Good working environment.

(ii)

Profit sharing plans.

(iii)

Technological improvements.

(iv)

Training.

(v)

Staff participation in decision-making.

Environmental Factors That Affect Production and Operations Management (i)

Micro-environmental Factors: (a)

level of competition;

(b)

availability of raw materials;

(c)

supply of labour.

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UNIT 2 MODULE 1: PRODUCTION AND OPERATIONS MANAGEMENT (cont'd) (ii)

Macro-environmental Factors: (a)

market demand;

(b)

regulations;

(c)

trade unions;

(d)

available technology;

(e)

ethical practices;

(f)

current social issues;

(g)

economic incentives and issues.

Suggested Teaching and Learning Activities To facilitate students’ attainment of the objectives of Module 1, teachers are advised to engage students in the teaching and learning activities listed below. 1.

Encourage students to participate in lectures, tutorials and presentations by teachers and other resource persons with specialised knowledge of a wide range of content areas.

2.

Engage students in research and presentations (individually and in groups).

3.

Encourage students to participate in class debates and discussions on topical issues related to production and operations management.

4.

Conduct experiential activities related to production and operations management.

5.

Encourage students to interpret issues related to production and operations management through role play or simulation exercises.

6.

Engage students in class discussion on case studies related to production and operations management.

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UNIT 2 MODULE 2: FUNDAMENTALS OF MARKETING GENERAL OBJECTIVES On completion of this Module, students should: 1.

understand the concept of marketing and its role in society;

2.

appreciate the role of marketing as a management function;

3.

assimilate the principles of marketing management;

4.

develop awareness of the impact of the environment on marketing.

SPECIFIC OBJECTIVES Students should be able to: 1.

define the term “marketing” and relate it to the concepts of “market” and “exchange”;

2.

distinguish among the implications of the marketing, product, production and social marketing concepts;

3.

describe the role of marketing in society;

4.

explain the nature of marketing as a management function;

5.

describe the elements of the marketing research process;

6.

identify the principles of market segmentation;

7.

explain the principles of product management;

8.

apply the principles of pricing;

9.

explain the major concepts and principles of distribution;

10.

describe the major tools of promotion and their relative advantages;

11.

assess the process of consumer behaviour and its relevance to marketing strategy;

12.

distinguish between the micro- and macro- environments in which a firm operates and their effects on the marketing strategy of the firm.

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UNIT 2 MODULE 2: FUNDAMENTALS OF MARKETING (cont’d) CONTENT 1.

2.

3.

The Concept of Marketing (i)

Definitions of marketing.

(ii)

Related concepts: (a)

markets;

(b)

human needs and wants;

(c)

value and satisfaction;

(d)

organizational objectives;

(e)

exchange transactions.

Implications of Different Business Concepts (i)

Implications of the marketing concept.

(ii)

The product concept and implications.

(iii)

The production concept and implications.

(iv)

The selling concept and implications.

(v)

The societal marketing concept and implications.

Roles of Marketing in Society (i)

Quality of life improvement.

(ii)

Customer satisfaction.

(iii)

Consumer choice.

(iv)

Product variants.

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UNIT 2 MODULE 2: FUNDAMENTALS OF MARKETING (cont’d)

4.

(v)

Employment.

(vi)

Wealth creation.

(vii)

Maximum consumption.

(viii)

Maximum production.

Marketing Management (i)

The marketing management concept.

(ii)

Marketing management processes:

(iii)

(a)

analysis;

(b)

planning;

(c)

implementation;

(d)

control.

Organisational role of marketing: (a)

identification of opportunities;

(b)

product development;

(c)

input to strategic management;

(d)

co-ordination of other functional areas.

(iv)

The Role of the Marketing Manager.

(v)

Marketing strategies, for example, advertising.

(vi)

Organisation of the Marketing Department.

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UNIT 2 MODULE 2: FUNDAMENTALS OF MARKETING (cont’d) 5.

6.

7.

Marketing Research (i)

Concept of marketing research.

(ii)

Process of marketing research: (a)

management problem identification;

(b)

research objectives;

(c)

sources of data - primary, secondary;

(d)

sampling - probability and non-probability;

(e)

research techniques - focus groups, surveys, in-depth interviews; observation;

(f)

presentation of results.

Principles of Segmentation (i)

Concept of segmentation.

(ii)

Reasons for segmentation.

(iii)

Bases of segmentation: (a)

demographic;

(b)

geographic;

(c)

behavioural;

(d)

benefits.

Product Management (i)

The concept of product – core, formal, augmented.

(ii)

The augmented product concept.

(iii)

Dimensions of the product mix.

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UNIT 2 MODULE 2: FUNDAMENTALS OF MARKETING (cont’d)

8.

9.

(iv)

New product development process.

(v)

Product life cycle.

(vi)

Branding and packaging.

(vii)

Characteristics of services.

Pricing Strategy (i)

Pricing process - objectives, internal and external analysis, pricing basis, list price, price adaptation.

(ii)

Pricing strategies: (a)

cost plus pricing;

(b)

competition pricing;

(c)

perceived value;

(d)

going rate;

(e)

penetration pricing and price skimming.

Distribution Strategy (i)

Concept of distribution.

(ii)

Customer service as objective of distribution.

(iii)

Channel strategy.

(iv)

Types of distribution channels.

(v)

Elements of physical distribution (logistics) strategy.

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UNIT 2 MODULE 2: FUNDAMENTALS OF MARKETING (cont’d) 10.

11.

12.

Promotion Strategy (i)

Objectives of Promotion.

(ii)

Tools of promotion and their relative advantages: (a)

advertising;

(b)

personal selling;

(c)

sales promotion and publicity;

(d)

publicity.

Consumer Behaviour (i)

Consumers versus customers.

(ii)

Organisations as customers.

(iii)

Consumer decision making process.

(iv)

Marketing mix and consumer decision making process.

The Environment of Markets (i)

(ii)

Composition of the Marketing Environment: (a)

micro-environment;

(b)

macro-environment;

Forces in the micro-environment: (a)

company’s suppliers;

(b)

competitors;

(c)

marketing intermediaries;

(d)

customers.

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UNIT 2 MODULE 2: FUNDAMENTALS OF MARKETING (cont’d) (iii)

Forces in the macro-environment: (a)

demographic forces;

(b)

economic forces;

(c)

natural forces;

(d)

political forces;

(e)

cultural forces.

Suggested Teaching and Learning Activities To facilitate students’ attainment of the objectives in Module 2, teachers are advised to engage students in the teaching and learning activities listed below. 1.

Engage students in simulated case studies related to marketing.

2.

Engage students in group projects to foster teamwork.

3.

Encourage students to participate in discussion on marketing issues conducted by external resource persons.

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UNIT 2 MODULE 3: SMALL BUSINESS MANAGEMENT GENERAL OBJECTIVES On completion of this Module, students should: 1.

appreciate the nature of entrepreneurship;

2.

develop awareness of the characteristics of small business management.

SPECIFIC OBJECTIVES Students should be able to: 1.

explain the nature and characteristics of entrepreneurship;

2.

assess the challenges and opportunities faced by entrepreneurs in today’s world;

3.

describe the skills needed for managing a small business;

4.

identify factors in the micro- and macro- environments that impact on small business;

5.

identify agencies that assist small businesses;

6.

describe the types of assistance agencies offer to small businesses.

CONTENT 1.

The Nature and Characteristics of Entrepreneurship (i)

Definition of entrepreneurship.

(ii)

Characteristics of successful entrepreneurs.

(iii)

Types of entrepreneurial businesses.

(iv)

Impact of entrepreneurship on the economy.

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UNIT 2 MODULE 3: SMALL BUSINESS MANAGEMENT (cont’d) 2.

3.

4.

Major Challenges faced by Entrepreneurs (i)

Identifying successful business opportunities.

(ii)

Sourcing Capital (finance).

(iii)

Choosing a type of business.

(iv)

Determining location.

(v)

Globalization and trade liberalization.

(vi)

E-commerce.

Skills Required for Small Business Management (i)

Market Research.

(ii)

Forecasting of Sales.

(iii)

Costing and Pricing.

(iv)

Record Keeping.

(v)

Employee Relationship.

(vi)

Promoting and Advertising.

(vii)

Developing and presenting a business plan.

Micro- and Macro-Environmental Factors which affect Small Businesses (i)

Internal: (a)

lack of record keeping;

(b)

working capital deficiencies;

(c)

poor management skills.

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UNIT 2 MODULE 3: SMALL BUSINESS MANAGEMENT (cont’d) (ii)

5.

6.

External: (a)

market demand;

(b)

seasonality;

(c)

regulations and legislation;

(d)

supply of raw materials;

(e)

trade unions;

(f)

social and cultural conditions.

Agencies that Assist Small Businesses (i)

Governmental Agencies.

(ii)

Non-Governmental Agencies.

(iii)

Financial Institutions.

Types of Assistance Offered to Small Businesses (i)

Financial.

(ii)

Technical.

(iii)

Education and Training.

Suggested Teaching and Learning Activities To facilitate students’ attainment of the objectives in Module 3, teachers are advised to engage students in the teaching and learning activities listed below. 1.

Decide on a “product” or “service” company and allow students to determine what each company will produce or offer.

2.

Assign students to develop a questionnaire to investigate if there is a need to start a company of their choice.

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UNIT 2 MODULE 3: SMALL BUSINESS MANAGEMENT (cont’d) 3.

Develop a yearly sales estimate and a cash budget for their company.

4.

Establish and operate a small store to sell items used by students in the school, involving the steps of: ordering, banking, inventory, cost and sales analysis, sales.

5.

Create a list of costs to start the business.

6.

Encourage students to work in groups to “sell” specific items to the rest of the class using the sales and marketing methods discussed in the class.

RESOURCES Hammond, Susan

Business Studies, United Kingdom: Longman Group Ltd., 1994.

Birchall, John and Morris, Graham

Business Studies, Surrey: United Kingdom: Thomas Nelson and Sons Ltd., Walton-on-Thames, 1995.

Hall, Dave, Jones, Rob and Raffo, Carlo

Business Studies, Lancaster: Causeway Press Limited, 1993.

Good, Walter S.

Building a Dream: A Comprehensive Guide to Starting a Business of Your Own, Toronto: McGraw Hill Ryerson, 1993.

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♦ OUTLINE OF ASSESSMENT Each Unit of the syllabus is assessed separately. The assessment scheme is identical in each Unit; however, grades are awarded independently. The Assessment will comprise two components, one external and one internal. Candidates must complete the Internal Assessment for the first Unit that they write. Candidates may carry forward the Internal Assessment mark from the first Unit written to the second Unit (irrespective of the mark earned), or may opt to complete the Internal Assessment for the second Unit as well. (80%)

EXTERNAL ASSESSMENT FOR EACH UNIT

Paper 01 (1 hour 15 minutes)

This paper will consist of forty-five (45) multiple-choice items. There will be fifteen (15) items based on each Module.

Paper 02 (2 hours 30 minutes)

This paper will consist of three sections, each corresponding to a Module in the Unit. Each section contains two essay type questions. Students are required to attempt three questions, one from each section. (20%)

INTERNAL ASSESSMENT FOR EACH UNIT

Paper 03/1 A research paper of approximately 2000 words, based on any topic covered in any of the three (3) Modules of a Unit. Candidates who, in the same year, for both Units of CAPE Management of Business may opt to: (a)

submit a single Internal Assessment assignment for both Units; or

(b)

submit a separate Internal Assessment assignment for each Unit.

Candidates who are doing two Units of CAPE Management of Business at the same sitting must indicate from which Unit the Internal Assessment assignment was selected. If a candidate is repeating a Unit, the moderated Internal Assessment score obtained for that Unit may be used for both Units taken at the same time.

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MODERATION OF INTERNAL ASSESSMENT An Internal Assessment Record Sheet will be sent each year to schools submitting students for the examinations. All Internal Assessment Record Sheets and samples of assignments must be submitted to CXC by May 31 of the year of the examination. A sample of assignments will be requested by CXC for moderation purposes. These samples will be re-assessed by CXC Examiners who moderate the Internal Assessment. Teachers’ marks may be adjusted as a result of moderation. The Examiners’ comments will be sent to schools. Copies of the students’ assignments that are not submitted must be retained by the school until three months after publication by CXC of the examinations results. ASSESSMENT DETAILS External Assessment by Written Papers (80% of Total Assessment) Paper 01 (1 hour 15 minutes - 30% of Total Assessment) 1.

Numbers of Questions All questions are compulsory. This paper will consist of 45 multiple-choice questions. There will be 15 questions from each Module.

2.

3.

4.

Syllabus Coverage (i)

Knowledge of the entire syllabus is required.

(ii)

The intention of this paper is to test candidates’ knowledge across the breadth of the syllabus.

Mark Allocation (i)

One mark will be assigned for each question.

(ii)

The total number of marks available for this paper is 45.

(iii)

This paper contributes 30% towards the final assessment.

Use of Calculators Candidates may use silent non-programmable calculators. CXC A20/U2/03

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Paper 02 (2 hours 30 minutes - 50% of Total Assessment) This paper will be divided into three sections, each section corresponding to a Module of the Unit. 1.

2.

3.

Composition of Paper (i)

This paper will consist of six essays or extended response questions.

(ii)

There will be two questions in each section.

(iii)

Candidates are required to attempt three questions, one from each section

(iv)

The total number of marks available for the paper is 150.

(v)

This paper contributes 50% towards the final assessment.

Syllabus Coverage (i)

Each question requires a greater depth of understanding than those questions in Paper 01.

(ii)

The purpose of this paper is to test candidates’ in-depth knowledge of the syllabus.

Question Type Questions require an extended response involving reasoning, analysis and synthesis.

4.

Mark Allocation Each question carries 50 marks.

5.

Award of Marks Marks will be awarded for: (i)

clear logical reasoning;

(ii)

evidence of ability to analyse a problem step by step and to apply principles and practices, skills and knowledge to reach a logical conclusion;

(iii)

evidence of problem solving ability;

(iv)

evidence of the ability to synthesise information.

Full marks will be awarded when candidates meet all criteria.

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6.

Use of Calculators Candidates may use silent non-programmable calculators.

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INTERNAL ASSESSMENT The Project - Paper 03A Internal Assessment is an integral part of student assessment in the course covered by this syllabus. It is intended to assist students in acquiring certain knowledge, skills and attitudes that are associated with the subject. The activities for the Internal Assessment are linked to the syllabus and should form part of the learning activities to enable the student to achieve the objectives of the syllabus. During the course of study for the subject, students obtain marks for the competence they develop and demonstrate in undertaking their Internal Assessment assignments. These marks contribute to the final marks and grades that are awarded to students for their performance in the examination. The guidelines provided in this syllabus for selecting appropriate tasks are intended to assist teachers and students in selecting assignments that are valid for the purpose of Internal Assessment. The guidelines provided for the assessment of the assignments are intended to assist teachers in awarding marks that are reliable estimates of the achievement of students in the Internal Assessment component of the course. In order to ensure that the scores awarded by teachers are consistent with the CXC standards, the Council undertakes the moderation of a sample of the Internal Assessment assignments marked by each teacher. Presentation of Project 1.

2.

The aims of the project are to: (i)

promote self-learning;

(ii)

allow teachers the opportunity to engage in the formative assessment of their students;

(iii)

allow students to enhance their understanding of the nature of business organisations through local studies;

(iv)

allow students to display evidence of careful observation and some degree of originality in their work;

(v)

allow students to analyse business information gathered and make practical decisions;

(vi)

explore more fully, some areas of the Unit which may not be assessed adequately in an external examination.

Requirements The reporting of results in Caribbean Advanced Proficiency Examination is by Unit and Module and, as a result the project must cover the three Modules. Students need to choose a firm on which they would do their investigative research report. The project should afford students the opportunity to pursue areas of personal interest. Students must undertake a project which embraces all three (3) Modules within the Unit being assessed.

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Primary Sources of Data Candidates can use primary sources of data in their research activities. These include information gathered through questionnaires, and face to face interviews. Secondary Sources Secondary sources of data can also be used. These include newspapers, trade and professional journals, magazines, (such as News Week, Times) and documentation on the firm studied. 3.

4.

Management of the Project (i)

An early start to planning project work is highly recommended.

(ii)

Each candidate should know the requirements of the project and its assessment procedures, as part of the orientation to the Unit.

(iii)

Teachers should guide the candidates in choosing appropriate projects that relate to candidates’ interest and the specific objectives identified.

(iv)

A schedule of the dates for submitting project work (agreed by teachers and candidates) should be established.

(v)

A teacher should offer guidance in the data collection process and the preparation of the report.

the

Project Reports A candidate’s project should be presented in a soft folder bearing the candidate’s number, of subject and the date submitted. The project document should comprise: (i)

title;

(ii)

table of contents;

(iii)

aims and objectives;

(iv)

methodology employed;

(v)

the report.

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name

The report (approximately 2000 – 2500 words) should be typed double-spaced or hand-written legibly, addressing: (i)

description;

(ii)

analysis;

(iii)

evaluation;

(iv)

recommendations;

(v)

appendices (such as questionnaires, diagrams, charts, statistical data);

(vi)

references.

Skills to be assessed 1.

Knowledge and Understanding:

candidate’s ability to demonstrate knowledge and understanding of the objectives being assessed in the Module.

2.

Application:

candidate’s ability to collect, classify and communicate information.

3.

Analysis:

candidate’s ability to distinguish relationships among components of the business environment.

4.

Evaluation and Reasoned Judgement:

candidate’s ability to interpret, make judgement and recommendations appropriate to the business under investigation.

5.

Presentation:

candidate’s ability to present the report using, where necessary, relevant charts, tables and graphs.

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Candidates will be awarded a total of 6 marks for communicating information in a logical way using correct grammar. The marks are shown below. MARK ALLOCATION FOR THE PROJECT MARKS 6

1.

Knowledge and Understanding

2.

Planning

9

3(a)

Collection and classification of relevant information

6

3(b)

Synthesis of information

6

4.

Presentation of Data

6

5.

Analysis and Interpretation of Data

12

6.

Conclusion and Recommendations

6

7.

Communication of information in a logical way using correct grammar

6

8.

Referencing and Citation Total

3 60

DETAILED MARK SCHEME FOR INTERNAL ASSESSMENT

1.

Knowledge and Understanding - Objectives of the project well defined - Objectives of the project appropriate - Objectives of the project realistic and achievable

MARKS [6 marks] 2 2 2

2.

Planning - Methodology well defined - Description and selection of sample - Description of research instrument - Description of research design - Outline of research procedure

[9 marks] 1 2 2 2 2

3(a)

Collection and Classifying of Relevant Information Information collected is highly relevant to topic and appropriately classified Information collected is fairly relevant to topic and fairly well classified Information collected is partially relevant to topic and inaccurately classified

[6 marks] 5-6

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3-5 1-2

DETAILED MARK SCHEME FOR INTERNAL ASSESSMENT

Synthesis of Information Linkage among business components well established Linkage among business components fairly well established Linkage among business components partially established

MARKS [6 marks] 5-6 3-4 1-2

Presentation of Data Mode of data presentation very appropriate and highly relevant Mode of data presentation fairly appropriate and relevant Mode of data presentation inappropriate or irrelevant

[6 marks] 5-6 3-4 1-2

5.

Analysis and Interpretation of Data Data interpretation highly related to findings Data interpretation fairly well related to findings Data interpretation partially related to findings

[12 marks] 8-12 4-7 1-3

6.

Conclusion and Recommendations Conclusion drawn from findings Recommendations related to findings

[6 marks] 3 3

7.

Communication of Information in a Logical way using Correct Grammar

[6 marks] 4-6 2-3

3(b)

4.

-

8.

Communication of information in a logical way using correct grammar Communication of information in a fairly logical way with few grammatical errors Communication of information in a partially logical way with several grammatical errors

Referencing and Citation Consistently used an acceptable style of referencing with appropriate linkage to in text discussion Consistently used an acceptable style of referencing with few linkage to in text discussion Consistently used and acceptable style of referencing with minimal linkage to in text discussion

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1

[ 3 marks] 3 2 1

♦ REGULATIONS FOR PRIVATE CANDIDATES Paper 03B (1 hour 30 minutes) Private candidates will be required to write Papers 01, 02 and Paper 03B. This paper will be 1½ hours long and will consist of one case study incorporating all three Modules of the Unit assessed. The case study will comprise of three (3) questions, one (1) from each Module. Twenty (20) marks will be allocated to each question, for a total of sixty (60) marks for the paper. Candidates will be required to answer all questions, drawing on their knowledge from research undertaken.

♦ REGULATIONS FOR RESIT CANDIDATES Resit candidates must complete Papers 01 and 02 and Paper 03 of the examination for the year for which they re-. Resit candidates may elect not to repeat the Internal Assessment component, provided they re-write the examination no later than two years following their first attempt. Candidates may opt to complete an Internal Assessment (IA) for each Unit written or may opt to re-use another IA score which satisfies any of the conditions listed at (i) to (ii) below. (i)

A candidate who re-writes the examination in the same Unit within two years may re-use the moderated IA score earned in the previous sitting within the preceding two years. Candidates re-using IA scores in this way must as “Resit candidates” and provide the previous candidate number.

(ii)

For CAPE Management of Business, candidates who enter for Unit 1 or Unit 2, in different sittings, may re-use a moderated IA score obtained in a previous sitting of either Unit within the preceding two years. The IA score may be re-used in either Unit, or in both Units, irrespective of the Unit in which it was first obtained. Candidates re-using IA scores in this way must as ‘Transfer’ candidates.

All resit candidates may enter through schools, recognized educational institutions, or the Local Registrar’s Office.

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ASSESSMENT GRID The Assessment Grid for each Unit showing marks assigned to each paper and to each Module, and the percentage contribution of each paper to the total scores. Papers External Assessment Paper 01 Multiple-choice questions Paper 02 Essay/Extended Response Internal Assessment Paper 03/1 or 03/2 Total

Module 1

Module 2

Module 3

Total

(%)

30

30

30

90

(30)

50

50

50

150

(50)

20 100

20 100

20 100

60 300

(20) (100)

Western Zone Office 2003/05/05

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