1. A2 Business Studies Objectives;
Monday, 28 May 2018
A2 Business Studies
Objectives;
Understand the distinction between AS and A2
Outline the basic course structure, including timeline and assessments
Introduction to financial strategies 1

2. The distinction between AS & A2
AS focus on knowledge (A01)
A2 focus on analysis and evaluation (A03 and A04) and pulling strands together – synoptic understanding AS A2
A01 30 20
A02 25
A03
A04

3. The distinction between AS & A2

4. Course Structure
Summer / Autumn 2015
Spring 2016

7. BHS A2 Business Presents The Weekly Business News Update
Rules of being an A* SCD A2 Business Reporter:
Article must focus on a large UK based business
Presentation must relate to an aspect of the course you have recently covered with either teacher
You must analyse your article- this might relate to a decision taken, a situation that has occurred, an external factor impacting the large UK business etc
You might be able to evaluate therefore draw a judgement/opinion that makes sense and follows your line of argument depending on what your article is about.

8. What are your financial objectives?

9. Understanding Financial Objectives
The financial objective of any business must work towards delivering the overall corporate objectives.
The common objectives are;
Return on Capital Employed (ROCE)
Shareholder Returns
Cost minimisation
Cash-flow targets

10. Understanding Financial Objectives
The common objectives are;
Return on Capital Employed (ROCE)
A target based on the amount of net profit generated from the resources employed. An easy quantifiable target; achieved by increasing net profit or minimising the value of assets employed in a business.
Shareholder Returns
This could be either dividend payments (an opportunity cost of reinvestment) or increased share value. The objective can be achieved by reducing costs to maximise profits or minimising reinvestment.

11. Understanding Financial Objectives
The common objectives are;
Cost minimisation
Not necessarily ‘lowest’ prices, rather the lowest to maintain a desired level of quality. Examples include ‘Easyjet’ and ‘Ryanair’. In addition cost minimisation may also mean opting not to invest in new technology or machinery.
Cash-flow targets
Especially important in industries with historic cash flow issues such as a long cash cycle (construction). The objective could practically mean setting low or zero credit periods; minimum monthly inflow targets.

12. Influences on objectives
Market / economic conditions
The actions of other businesses
INTERNAL
The corporate objectives of the firm
The nature of the industry / product range offered
The aims of key personnel and senior managers
The availability of external finance

13. Putting into practice…
Using the four strategies outlined, identify how they could be applied to the businesses below with detailed and realistic examples;
Apple
Ted Baker
Honda
Waitrose