IGCSE & A LEVELS GUIDE

Chapter 18 - Market Research Learning Objective: To understand the basics of Market Research What is Market Research? "Market research is the action or activity of gathering information about consumers' needs and preferences, competitors, and the market itself." Market Research reveals important information about customers, competitors, and the market in which the business competes. It is useful for various reasons: It helps businesses understand what customers like and disli

Given all the impacts that business activity have on the environment and society, it is not uncomon for governments to create legal controls around business actions. - Penalties, fines, closures, imprisonment when waste/pollution laws are ignored; - Heavy Taxes on energy consumption to encourage energy-efficient methods; - Standards / Limits for the usage of natural resources forcing the usage of renewable resources; - Permissions may be denied to business considered 'unsust

Chapter 27 - Business and the International Economy Learning Objectives: To understand the impact of exchange rate fluctuations in businesses Do you know what is the exchange rate? Simply put, the exchange rate is how much one country's currency is worth it of another country's currency. Let's try to understand with an example (September 10, 2026): ₮ 1 is the equivalent of USD 0.00027803 - In other words, ₮ 1 is worth it a lot less than USD 1 USD 1 is the equivalent of ₮ 3,59

Chapter 21 - Marketing Analysis Lesson Objective: To understand the importance and methods of sales forecasting Sales Forecast is the process of trying to predict sales levels and trends and it's important for businesses because: The production department would know how much to produce, and order (capacity); The marketing department uses it for planning distribution and pricing; The HR department uses this information for a more accurate workforce planning; The finance depart

Let's now start looking at how governments' policies can influence a country's economy. We will mostly focus on two types of policies: Monetary Policies, that have to do with Interest Rates; Fiscal Policies, related to Tax Rates and Government Spending. Note: Both of these policies are used by governments with the intention of achieving their economic objectives. Monetary Policies is basically 'playing with interest rates' to achieve economic objectives by reducing the money

Chapter 16 - Human Resources Management Strategy Learning Objective: Strategies for improving workforce performance; the use of technology in HRM Now that you fully understand the different methods of measuring employee performance (productivity, absenteeism, wastage rates, rejection rates, consumer complaints, performance vs. targets), let's go on further in the issue and discuss strategies for improving employee performance. The main reason for poor employee performance has

Chapter 5 - Stakeholders in Business Lesson Objective: To understand what are stakeholders and what are their interests towards the business Stakeholders are any individual or group who are impacted or can impact a business activities/decisions. Stakeholders can be internal or external: Each stakeholders group have their own interests regarding the business and its activities. Let's look over some of these stakeholders and what are they interested in the most: Customers are l

Chapter 25 - Analysis of Accounts Lesson Objective: To understand how to calculate and interpret liquidity ratios Liquidity: Liquidity is a business access to cash - ability to pay its short-term debts. It is an important measure as it relates to business survival and therefore liquidity ratios should be monitored constantly: Current Ratio Acid-Test Ratio To understand Liquidity Ratios we will be making use of the following information: The Current Ratio shows the ratio betwe

Chapter 10 - Human Resource Management Learning Objective: Understand various responsibilities of the HRM There are different reasons why a business might recruit new workers, for example: Business is expanding and need workforce to support the growth; When workers leave and need to be replaced. That's when the process of Recruitment & Selection comes in - a process made out of various stages that can either be handled by the business itself or outsourced to specialist recrui

Chapter 22 - Statement of Financial Position Learning Objective: To understand the uses and how to analyze Balance Sheets After Cash Flow Forecast and Income Statement it's finally time to dive in to the Balance Sheet, also known as the Statement of Financial Position. Assets: any resources owned by the company and can be divided in two parts: - Current Assets: cash or any resource expected to be converted into cash within the next 12 months (e.g. inventories/stock, trade r

Chapter 4 - Types of Business Organization Lesson Objective: To understand franchises and joint-ventures Franchises which are nothing but a legal agreements between two firms, the Franchisor and the Franchisee (e.g. Tavan Bogd and KFC). This contract establishes that the franchisee has the rights to using the name, logo, and trading systems of an existing successful franchiser brand: Franchise is not a type of business organization such as sole trader, partnership, or limited

Chapter 21 - Income Statements Lesson Objective: To understand the different uses of an Income Statement The Income Statement is a financial report that records the business' revenue, costs and expenses, and profits. It is usually released once a year for the analysis of internal and external stakeholders: Income Statement vs. Cash Flow Forecast The purpose of the Income Statement is to show how much profit a business made at a period of time; On the other hand, Cash Flow For

Chapter 3 - Enterprise, Business Growth, and Size Learning Objectives: To understand the importance of startups to economies We all heard that trendy word... Start-ups: A business start-up is a newly formed business. They usually start small but might grow bigger. Start-ups have a great importance in a country's economy and therefore governments support business start-ups in different ways: Low interest loans; Grants (e.g. lower taxation or other financial incentives); Rent-f

Lesson Objective: The Meaning of 'An Economy' (2.1) What do you understand by the word 'economy'? What is an 'economy'? An economy is the measure of all the resources and wealth in a country - everything produced and purchased within a country. An economy is the place where business activity happen. An economy is made of businesses in different sectors (the sectors of an economy): The primary sector of an economy is based on activities that extract raw materials from nature (

You should now be clear that Strategic Analysis is the process of conducting research into the business environment within which an organization operates, and into the organization itself, to help form future strategies. One step ahead, after acquiring a clear view of the business and its environment, is Strategic Choice: Identifying strategic options and choosing between them; Good strategic options have the following features: - They create a competitive advantage to the bu

Chapter 22 - Cash Flow Forecasting and Working Capital Class Objective: To understand the difference between cash and profit Cash is important to business. Fact! Businesses need cash to pay wages, suppliers, utilities, etc... Cash Flow Management, therefore, is a key element of business management. It is the process of making sure that there is enough cash within the company for paying its debts. Think about it... Can a profitable business run out of cash? Can an unprofitable

Chapter 1.2 - Business Activity Learning Objective: Business Activity: Specialization in Providing Goods & Services (1.2) Do you know one thing every business has in common? They all try to add as much value as possible to their products and services! Adding value is increasing the difference between the cost of producing a good/service and the price of selling. Businesses can add value in different ways: 1. The most common way of adding value is through production: turning r

Chapter 2 - Economic Sectors Learning Objective: Structuring an Economy The economy of a country is made of different sectors of its economy: The balance of these sectors in the economies of different countries varies substantially. It depends on the level of industrialization in each country: We now completely understand the different sectors of an economy: primary, secondary, and tertiary. Companies within these different sectors can either be private or public: Most econo

Chapter 21 - Business Finance: Needs and Sources Class Objective: To understand the factors impacting sources of financing available What financing method is the best? Which one should a business pick? There are many factors influencing the choice of financing to a business: 1. The size and legal form of the business: Only PLC can issue shares; Small businesses have a hard time getting loans (and high interest). 2. The amount required: Bank loans have a limit depending on the