Sunday Business Post March 2013

Introduction

As we approach the Leaving Cert examinations this article analyses the Higher Level
Business paper and in particular past papers. We will look at trends and the more
frequently asked questions. We will also look at techniques to improve grades.

Short answer questions
This section is worth 20% of the exam and it is important that you know all of the terms
from the exam questions. It is better to write as much information as possible as one-
sentence definitions are far from sufficient. There is a good mix of Questions varying
from definitions to simple computations to acronyms to chart drawing. It is wise to split
all definitions into 2 separate points. All information should be relevant to the specific
way that the question was asked.
FIT IN AS MUCH ACCURATE AND RELEVANT INFORMATION AS TIME WILL ALLOW



Applied Business Question

Compulsory Section
80 marks (20%)

In Leaving Cert 2013 students will be examined on Units 5, 6 and 7.

Watch for the more general topics


Business : The FINAL Countdown
Unit 5
Market research
Marketing mix
New product Development
Business Plan
Methods of expansion
Unit 6
Services of Community Development Organisations
Impact of economic variables on business
Impact of business on local economy and national economy
Social responsibility
Environmental issues and examples
All the Types of Organisations
Unit 7
Opportunities and Challenges associated with International trade
Importance of global markets
EU Decision making process
Impact of EU policies and Institutions

There are three questions based on a given passage.
You must state your point, expand the point and relate it to the text.

ALWAYS REFER TO THE PASSAGE

Course knowledge is essential here and each part of the answer must be planned.
In the 2012 exam 4 definitions of the Promotional mix components would have been
sufficient plus an appropriate link.
Course knowledge dictates the marks and the links only have a supporting role.
An isolated link without knowledge is never awarded marks.



60 Mark questions Unit by Unit

Question 1 has been taken from Unit 1 every year so far: there has been a question on
relationships almost every year between the various people in the business.

The nine parties are
Entrepreneur
Investor
Producer
Consumer
Employer
Employee
Service provider
Government and society
Interest group

The relationships are co-operative and competitive and definitions and examples of each
are very important.

- Last year was a mixture of Consumer and Labour law and an easier Law of
Contract question.
- From an exam perspective the Labour Relations Commission and Labour Court
cannot be ignored.
- Individual questions on legislative methods or Non legislative methods of conflict
resolution are also important.
- Another question on the Labour Laws would not be a surprise and the conditions
and warranties in contract law have not been asked before.


Unit 1

Parties in a business
Relationships Co-operative + Competitive
Law of Contract (Elements, How to end a contract, Remedies for breach)
Legislative methods of conflict resolution
Non- legislative methods of conflict resolution
Sales of Goods and Supply of Services Act 1980
- Consumer Protection Act 2007
- Employment Equality Act 1998
- Industrial Relations Act 1990 (including Labour Relations Commission
and Labour Court)
- Unfair Dismissals Act 1977-93



UNIT 2

This section is short but appeared as a 60 mark question previously.
Apart from characteristics, skills and
intrapreneurship the applications of enterprise are
important.
In 2011 only specific relevant enterprising words for
a Tidy towns project was suitable















Remember
that Organising and
Controlling are
management terms only.

UNIT 3
Students should be familiar with the following areas:
Management Skills

1 Leadership
Main styles: Autocratic, democratic, laissez faire. WHAT THEY ARE AND A RESULT
OF EACH STYLE PLUS AN EXAMPLE
Include directing and co-ordinating as part of leading.
Know the link with delegation and in particular the span of control definition
and diagram and Chain of Command.

2 Motivation
Definition
How to improve motivation
Maslows hierarchy and why it is important and how a manager can satisfy the needs
McGregor - be able to distinguish between Theory X and Theory Y.

3 Communication
Definition and importance
Types e.g. upward, downward etc.
Principles of good communication
Barriers to effective communication
Factors when deciding on choosing an effective method of communication.
Layout of Memo, Business letter, Report.
Visual communications (including drawing the diagrams)
Communications and Technology including
Role of Chairperson at meetings
Role of Secretary at meetings and types of meetings
Notice, agenda, minutes, quorum, ad hoc
Benefits of Meetings

- Electronic Data Interchange - Internet
- Electronic Mail - Integrated Services Digital Network
- Videoconferencing
Management Activities
1 Planning
Principles of Planning
Why it is the most important activity
Objectives
Role of SWOT analysis (Know a prepared
example)
Mission Statement
Types e.g. strategic, tactical, contingency and
link them to the benefits of planning
Know a basic definition of each control Type

2 Organising
How to draw any organisation structure and label correctly
How to define and draw a span of control
Various structures e.g. Line
Matrix
Benefits of each
Delegation and factors affecting Span of Control

3 Controlling
Definition
Principles
Types
- Stock
- Credit
- Cash
- Quality
- Cost
Why it is the most important activity including examples
Simple definition of each is needed and Stock quality and credit are the main ones.
It is important to be able to define each management skill and activity

Remember
Evaluation means
In my opinion and
make a comment
or judgement to
back up your
opinion.

UNIT 4
NB There is usually at least one 60 mark question from Unit 4 on the higher level paper.
Human Resources Management and or Changing Role are likely sections this year
The key areas are of unit 4
Household and Business Manager

Finance
Similarities and differences between managing a household and a business in the
areas of tax insurance and finance
Cash flow forecast
- How to analyse a cash flow forecast e.g Capital Expenditure usually
causes liquidity problems.
- Purpose or Benefits of a cash flow forecast named and explained
- Household cash flow forecast vs. Business cash flow forecast.
Matching a source with a need e.g. house with mortgage and know examples
from each Type of Source of Finance.

Know examples of all types of finance.

Short Term Medium Term Long Term
- Bank Overdraft - Hire purchase - Equity Shares
- Factoring - Leasing - Loan Capital
- Trade Credit - Medium term Loan - Project Finance
- Bank loan - Retained earnings

Insurance
Principles (5 basic ones)
Average clause application and explanation and link to INDEMNITY
Relationship between risk and premium
Overlap with risk management (Planned approach)
Strategies to reduce risk (Insurance\ Health and Safety \and one method all
explained)
Household policies
Business policies

Taxation
Types of Income Tax including:
Tax forms P12, P21, P45, P60
How to calculate net pay using tax credits
Self Assessment

Business Taxes
Recognise:
Corporation Tax
Value Added tax
Capital Gains tax
Capital Acquisitions tax

Implications of each tax on the business example
VAT of 23% on consumer goods makes products unaffordable and Demand falls affecting
the business



Monitoring the Business
Know how to analyse a basic Trading A/C, Profit and Loss A/C and the Balance
Sheet.
Know the terms, e,g current asset, closing stock.
Sales cost of sales = Gross Profit
Gross Profit expenses = Net Profit
Know the importance of financial information
The users of financial information
1. Employees look at profits
2. Suppliers look at cash flow
3. Investors look at Capital Structure
Spreadsheets (uses)
Advantages of Low Gearing
Remember
In exams concepts are
more important than a
range of rates and taxes.
Relationship between Debt and Equity
Advantages of High Gearing
Know how to apply 6 ratios and comment on the trend under the following
headings:

1. Profitability (all percentages)
- Gross Margin
- Net Margin
- Return on Investment
2. Liquidity (:1)
- Current Ratio
- Acid Test Ratio
3. Capital Structure (:1)
- Debt Equity Ratio
UNIT 5
Identifying opportunities
Sources of opportunities: internal and external sources of ideas
New product and service development process
The correct stages in order are very important:
1) Idea generation
2) Screening
3) Concept Development
4) Feasibility Study
5) Prototype Development
6) Test Marketing
7) Full Launch
Marketing
The marketing concept (consumer orientation)
The marketing strategy (benefits of the plan and its parts)
Developing the marketing mix - product, price, promotion and place
Know every aspect of the Marketing Mix thoroughly especially the individual
parts of the Ps
Getting started
Finance, ownership and production options
Developing a business plan
Start up factors which includes the challenges.
Expansion
Reasons (Name and Explain) and finance for expansion (debt and Equity)
Implications and methods of expansion
Know the benefits of mergers and takeovers and the risks involved.
Alliances and franchises overlap with this unit
UNIT 6
1 Categories of industry
Agriculture, manufacturing, services and natural resources
Changing trends in each sector and how it affects business
Know 3 good definitions plus the contribution that each one makes to the Irish
economy
2 Types of business organisation
Choosing between alternatives:
o Sole trader, partnership, alliances, franchising, private limited companies,
transnationals, public limited companies, co-operatives, state-owned
enterprises and indigenous firms
Know the pros and cons of each
Changing trends in ownership and structure
Why the firm would change from one type to
another
3 Community development
Local community and business
County enterprise board /FAS /LEADER/Area partnership Companies are the only
organisations relevant in this section
Community development, incorporating local community initiatives
Use words like local/ self help /social and economic in this chapter
4 Business and the economy
The impact of the economy on business, taking into account the general state of
the economy, inflation, interest rates, tax and grants
Use a table with definitions and the impact on the business
The impact of business on the economy at local and national level, taking into
account employment, tax revenues and environmental issues
The interaction between business and the wider economy
Remember that Alliances
and Franchises can be
asked from here or from
unit 5
5 Government and business
An introduction to the Government's role in encouraging and regulating
business.(Creating a suitable climate)
Role of the Government as employer
6 Social responsibilities of business.
Ethical business practice
Socially responsible business at local and national level
Characteristics of an environmentally conscious firm
Costs and opportunities associated with doing the right thing
The following are the key outcomes from Unit 6 Part 6
i. describe the characteristics of an environmentally conscious company (HL);
ii. analyse the impact of environmental issues on business (HL);
iii. discuss the social responsibilities of business (HL);
iv. NNB: evaluate the effects on a firm's costs of meeting its ethical, social and
environmental responsibilities (HL).

Unit 7
Introduction to the international trading environment
The significance of international trade for the Irish economy
Know the visible and invisible sections and balance of trade and Balance of
Payments
The changing nature of the international economy and its effects on Irish business
Opportunities and challenges for Irish business in international trade
Trading blocs and agreements and an open economy
European Union
The importance of the European Union
The purpose of the main European Union policies and directives and Regulations
and their impact on Irish business
1. Agricultural
2. Fisheries
3. Competition
4. Social
5. Economic and monetary
An outline of the decision-making process in the main European Union
institutions
The role of the special interest groups in this process


International business
The global marketing of products and services including the challenges
The development (reasons for coming here) and impact of transnational
companies (corporation tax paid/jobs created/spinoff effect/payroll paid/types of
companies)

Identify the effects of the single market on Irish business;
outline reasons for the development of transnational companies;
explain the role of information technology on international trade;
discuss the opportunities and challenges facing Irish business in developed and
developing markets; explain the role of global marketing in international business;
explain the purpose of the main European Union policies and directives (HL).




The Last word
It is important
(i) to learn the material and
(ii) to test yourself regularly.
Each question has three areas to look at as follows;

Evaluate how the provisions of the Sale of goods and the supply of services act help to
protect the consumer

(i) Evaluate (in my opinion)
(ii) The Act
(iii) Protecting the consumer

All questions should be treated in a similar fashion.
Almost all questions are state and explain the point using relevant knowledge from the
course.

Learn the course in bullet points and quality revision means being able to rewrite the
exact information unaided

IN THE LONG QUESTIONS A MINIMUM OF 1 AND A MAXIMUM OF 2 QUESTIONS MUST
COME FROM PART 1

NAME
EXPLAIN

EXAMPLE OR EVALUATION in red

TIMING:
Short Questions 30 minutes
ABQ 40 minutes
4 long questions 25 minutes each
10 Minutes planning and reading questions carefully



_________________________
Philip Curry
Ashfield College