certificate in business management course … · nqf level 3 certificate in business management...

CERTIFICATE IN BUSINESS

MANAGEMENT COURSE OUTLINES

Document Created by: Sivashankar Santhanam

NQF LEVEL 3 CERTIFICATE IN BUSINESS MANAGEMENT COURSE

OUTLINE

Entry Requirements

Trainees will be required to have:

1. Schooling requirements;

O level qualification or Botswana General Certificate of Secondary Education (BGCSE)

Certificate

2. Work experience;

Of at least two years

UNIT 1 INTRODUDCTION TO BUSINESS

UNIT TITTLE: INTRODUCTION TO BUSINESS UNIT CODE: IM

LEVEL 3 DURATION: 10 DAYS

Learning Outcomes and Indicative Content:

Candidates will be able to:

1. Understand and describe the nature and purpose of business in

terms of what businesses do, what resources they need and who

they are accountable to

1.1 Explain the needs of different stakeholders in a business;

owners/shareholders, customers, employees, management,

suppliers, creditors and government

1.2 Describe the inputs required by a business; labour, suppliers,

finance, land, management skills

1.3 Describe accountability; owners/shareholders and other

Stakeholders

2. Describe the structure and classification of business

2.1 Classify businesses by sector; primary, secondary, tertiary

2.2 Describe advantages and disadvantages of different forms of

legal structure; sole trader, partnership, franchise, private limited

company, public limited company

2.3 Describe the difference between the private sector and the public

sector in terms of ownership and objectives

3. Understand the different objectives that exist in a business and

appreciate the different stakeholder perspectives

3.1 Define and understand the terms corporate aims, corporate

objectives and corporate strategy

3.2 Describe how objectives might change through the life of a

business; survival, break-even, growth, profit maximisation,

market share, diversification

3.3 Describe the different objectives of the various stakeholders,

including government, and how they might conflict

3.4 Explain how stakeholder objectives might affect the behaviour

and decisions of a business

4. Understand how the external environment creates opportunities

and threats for a business

4.1 Describe the effect on businesses of changes in external factors;

interest rates, exchange rates, inflation, unemployment, the

business cycle, government legislation, technology

4.2 Explain how firms can use PEST (political, economic, social and

technological influences) analysis as part of a business strategy.

4.3 Understand and describe other influences on business activity;

environmental, cultural, moral and ethical

5. Understand the factors that influence the scale of production, the

location of production and the choice between different types of

production process

5.1 Describe the process and its associated advantages and

disadvantages; job, batch, flow, lean and cell

5.2 Describe the factors that influence the location of a business;

availability of land, labour, closeness to market, transport routes,

government grants, planning permission and environmental

factors

5.3 Explain and give examples of economies and diseconomies of

scale

6. Explain the need for, and describe the means of, achieving control

over quality and stock levels in production

6.1 Explain the importance of quality and its impact on the business

6.2 Describe different approaches to achieving quality; self-checking

versus inspection, TQM (Total Quality Management),

benchmarking, continuous improvement (kaizen)

6.3 Explain the costs and benefits of holding stock

6.4 Outline the benefits and problems associated with the JIT (Just In

Time) system of stock management

7. Understand and describe the marketing process in terms of

identifying, targeting and satisfying customers

7.1 Explain marketing strategy in terms of company objectives,

available resources and market possibilities

7.2 Describe various methods of market research; primary and

Secondary

7.3 Explain how a market for a product can be segmented e.g.

clothes, vehicles, holidays etc

8. Understand and explain marketing strategy and marketing planning

8.1 Define and explain the importance of the marketing process.

8.2 Explain the marketing mix (4 Ps) as part of a marketing plan.

8.3 Illustrate with a diagram and to explain the product life cycle.

8.4 Explain how the marketing mix might change at different points of

the product life cycle

8.5 Define marketing terms; niche market, mass market, USP (Unique

Selling Point)

9. Understand the purpose of and describe the main accounting terms

and statements

9.1 Define and describe basic accounting terms; fixed costs, variable

costs, revenue, profit, break-even, working capital

9.2 Explain the purpose of budgets and cash flow forecasts;

advantages and disadvantages

9.3 Explain the role, purpose and limitations of final accounts; balance

sheet and profit and loss statement

9.4 Explain the use of ratios to analyse business performance;

gearing, current ratio and Return on Capital Employed (ROCE) in

relation to risk, liquidity and profitability

10. Describe and explain relevant sources of finance for different

business purposes

10.1 Identify short term, medium term and long term sources of finance

10.2 Select appropriate source of finance to match a business need

e.g. overdraft for temporary expansion of stock levels

10.3 Explain the relative benefits and drawbacks of each type of

Finance

11. Understand the importance of human resources to an organisation

and explain the need for human resource planning

11.1 Explain the relationship between organisational objectives and

human resources

11.2 Describe workforce planning in action; recruitment, selection,

induction and training

11.3 Define and give equation for labour turnover

12. Understand motivation in theory and in practice

12.1 Outline principal theories; Taylor, Mayo, Maslow and Herzberg

12.2 Describe and explain the benefits of motivation in practice;

job enrichment, job enlargement, empowerment, team working

12.3 Financial incentives - describe the benefits and drawbacks of

different means of remuneration; piecework, time-based wage,

salary, commission, profit sharing, share ownership, fringe

benefits

Assessment Criteria:

• Assessment method: written examination

• Length of examination: three hours

• Candidates should answer four questions from a choice of eight, each

question carrying equal marks

Recommended Reading

ABE, ABE Study Manual – Introduction to Business, ABE

Marcouse I, Martin B, Surridge M, Wall N – Business Studies (2003), Hodder

and Stoughton

ISBN: 0340811102

Barrat M, Mottershead A – Business Studies: Student’s Book (2000),

Longman

ISBN: 058240575

UNIT 1 INTRODUCTION TO QUANTITATIVE METHODS

UNIT TITTLE: INTRODUCTION TO QUANTITATIVE METHODS UNIT CODE: IQM




1. Demonstrate the rules of numeracy

1.1 Apply the four rules to whole numbers, fractions and decimals

1.2 Express numbers in standard form

1.3 Multiply and divide negative numbers

2. Apply calculations

2.1 Compare numbers using ratios, proportions and percentages;

2.2 Obtain values for simple financial transactions involving

purchases, wages, taxation, discounts

2.3 Determine values for simple and compound interest

Depreciation

2.4 Convert foreign currency

2.5 Make calculations using a scientific calculator including roots

and powers; logarithms and exponential values

2.6 Evaluate terms involving a sequence of operations and use of

Brackets

2.7 Interpret, transpose and evaluate formulae

2.8 Approximate data using rounding, significant figures

2. Use algebraic methods

3.1 Solve linear and simultaneous equations

3.2 Solve quadratic equations using factorisation and formulae

3.3 Solve equations using roots or logarithms

3.4 Determine the equation of a straight line through two points and

also when given one point and its gradient

3.5 Determine the gradient and intercepts on the x or y axes for a

straight line

3. Construct and use: graphs, charts and diagrams

4.1 Draw charts and diagrams derived from tabular data: eg bar

charts, pie charts, scatter diagrams

4.2 Plot graphs, applying general rules and principles of graphical

construction including axes, choice of scale and zero

4.3 Plot and interpret mathematical graphs for simple linear,

quadratic, exponential and logarithmic equations

4.4 Identify points of importance on graphs eg maximum, minimum

and where they cut co-ordinate axes

UNIT 1 INTRODUCTION TO ACCOUNTING

UNIT TITTLE: INTRODUCTION TO ACCOUNTING UNIT CODE: IA




1. Describe and explain briefly the nature and scope of accounting

1.1 Briefly explain and describe the purpose of financial and

management accounting

1.2 Briefly explain and describe who are the different users of

financial information

1.3 Explain and describe the essential differences between a sole

trader, a partnership and a limited company

1.4 Briefly explain and describe the role and the function of

accounting concepts, standards and principles and Statements

of Standard Accounting Practice (S.S.A.P.’s) and Financial

Reporting Standards (FRS’s)

2. Describe, explain and accurately reflect double entry bookkeeping

principles and adjustments from books of original entry such as

day books to the trial balance stage

2.1 Explain, describe and accurately reflect bookkeeping entries

and adjustments in the books of a business

2.2 Explain, describe and accurately reflect the bookkeeping entries

necessary to complete a two or a three column cash book

2.3 Accurately prepare control accounts and suspense accounts

including any necessary adjustments

2.4 Accurately prepare a trial balance that reflects, as appropriate,

any necessary adjustments in the books of a business

3. Prepare a set of final annual accounts, including any appropriate

adjustments needed, for a sole trader, a partnership and a limited

company

3.1 Explain, describe and accurately prepare a trading account for a

sole trader, a partnership and a limited company

3.2 Explain, describe and accurately prepare a profit and loss

account for a sole trader, a partnership and a limited company

3.3 Explain, describe and accurately prepare an appropriation

account for a partnership and a limited company

3.4 Explain, describe and accurately prepare a balance sheet for a

sole trader, a partnership and a limited company

4. Understand the need for and complete accurately a cash flow

Statement

4.1 Outline and describe the requirements for a cash flow statement

4.2 Complete accurately a cash flow statement (under the

requirements of FRS 1) using either the direct (ie cash) method

or the indirect (ie accruals) method

4.3 Understand and describe the uses of a cash flow statement

5. Undertake some financial ratio analysis of a company’s accounts

and make reasoned judgements and comments on company

performance based on their figures

5.1 Accurately calculate a range of financial and accounting ratios

principally the following: return on capital employed (ROCE);

gross profit and net profit to sales ratio; asset turnover; working

capital ratio, acid test ratio; debtor days; creditor days; capital

gearing ratio

5.2 Describe and explain accurately the results of any ratio

Calculations

6. Describe, explain and calculate accurately different elements of

Costs

6.1 Describe and explain the nature, purpose and objectives of cost

and management accounting

6.2 Describe, explain and understand the following cost terms;

direct and indirect cost; overhead cost, fixed and variable cost

7. Describe, explain and calculate labour and material costs

7.1 Calculate material costs using the following three methods of

material (stock) valuation:

FIFO (first in first out); LIFO (last in first out); AVCO (average

cost)

7.2 Calculate labour costs, given a range of figures on wage and

payroll rates and labour hours

8. Describe and explain the essential concepts and principles of

break-even analysis and undertake calculations accurately to

demonstrate their overall understanding and knowledge

8.1 Describe and explain the essential concepts and principles of

the break-even point and break-even analysis

8.2 Use the concepts of break-even analysis to calculate the breakeven

point for a given level of profit and accurately account for

changes in either the fixed or variable cost level

9. Describe and explain the concepts and principles of budgeting

and the essential factors behind budgetary control

9.1 Describe and explain the main purposes and benefits of budgets

to a business

9.2 Describe and explain the different timescales for budgets and

the main steps in the preparation of a budget

9.3 Describe and explain the different styles and types of budgets

9.4 Accurately prepare a budget from a given set of simple figures






Recommended Reading

ABE, ABE Study Manual – Introduction to Accounting, ABE

Wood F, Sangster A – Business Accounting 1 (2005), Pearson Higher

Education

ISBN: 0273681494

UNIT 1 INTRODUCTION TO ACCOUNTING

UNIT TITTLE: INTRODUCTION TO BUSINESS COMMUNICATION UNIT CODE: IBC

LEVEL 3 DURATION DAY: 10 DAYS



1. Explain the principles which govern the transmission of information

in business situations

1.1 Describe the purposes of communication: to inform, instruct,

persuade, request, clarify, co-operate, buy and sell, advertise, etc

1.2 Explain the use of medium appropriate to a situation (e.g.

telephone, face to face, fax, email, letter, memo etc) and why likely

to be the most effective and most suited to the purpose

1.3 Explain how business relationships affect communication

2. Compose all common types of written communication in a clear,

complete and correct way, with attention to presentation and

neatness

2.1 Compose business letters, properly laid out with correct “top and

tail” in blocked or semi-blocked format, using a tone appropriate to

the purpose, written in legible handwriting

2.1.1 Letters of appreciation or complaint

2.1.2 Letters asking for assistance (e.g. in providing conference facilities)

or giving confirmation of an arrangement

2.1.3 Letters applying for a job, offering a job or responding to a job offer

2.1.4 Letters offering or declining the offer of a service

2.1.5 Letters accepting or declining an offer or invitation

2.1.6 Letters clarifying or explaining a situation

2.2 Prepare reports, their structure and content

2.3 Prepare memos, their purpose and layout, benefits and drawbacks

2.4 Prepare notices

2.5 Prepare simple advertisements and publicity material including

flyers and press releases

2.6 Prepare a curriculum vitae

3.0 Describe the principles of communicating orally in an effective way

3.1 Describe the use of the telephone

3.1.1 Making a call

3.1.2 Answering the telephone

3.1.3 Dealing with customers by telephone, including necessary personal

qualities, e.g. politeness, patience, organisation, tone of voice, etc

3.1.3 Using the telephone to deal with urgent and/or personal matters

3.2 Describe face to face communication, both formal and informal

3.3 Describe how to give a talk, a speech or a briefing

4. Explain how non-verbal signals can help or hinder communication

4.1 Explain the importance of personal appearance and grooming

4.2 Body language

4.2.1 Posture;

4.2.2 Eye contact;

4.2.3 Facial expressions;

4.2.4 Use of gestures and body movement;

4.2.5 Personal space;

5. Describe common barriers to successful communication and explain

how to overcome them, including:

5.1 Incomplete information, lack of clarity

5.2 Poor listening / decoding skills, lack of concentration

5.3 Noise (technical and psychological)

5.4 Differences of gender, language, culture, status, age, time zones

5.5 Preconceptions, stereotyping and unclarified assumptions

5.6 Inappropriate channels or media

5.7 Inappropriate language or vocabulary

5.8 Wrong time or place

5.9 Hostile or negative attitude

5.10 Lack of preparation and/or insufficient time to assimilate

6. Summarise effectively simple business documents and show an

understanding of their content

6.1 Selection of material

6.2 Use of an original vocabulary

6.3 Clarity and accuracy of the summary

6.4 Adherence to word limit

6.5 Fitness for purpose

9 Describe formal and informal communications structures in

business contexts and explain why, and how, they operate

9.1 Vertical downwards

9.2 Vertical upwards

9.3 Horizontal

9.4 Diagonal

9.5 Grapevine

9.6 The communications cycle from sender to receiver and back to

Sender

9.7 Communications models: chain, circle, wheel, star; their benefits

and drawbacks

10 Explain the meaning of common business and communications

terms, and also their uses, benefits and drawbacks

10.1 Describe IT terms, e.g.: WAP, LAN, interface, firewall, RAM,

screensaver, MMS, etc

10.2 Describe commercial terms, e.g.: tariffs, embargo, multinational,

conglomerate, etc

10.3 Describe external market terms, e.g.: target market, research

data, circular letter, etc

10.4 Describe terms related to people, e.g.: entrepreneur, CEO, HR,

sole trader, etc






Recommended Reading

ABE, ABE Study Manual – Introduction to Business Communication, ABE

Jack Shaw (ABE Examiner), Introduction to Business Communication: The

Essential Handbook for Students (2007). Published and distributed by

jacademia: www.jacademia.co.uk

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