Chapter 1 • 6 sets
Business activity, ownership, objectives, stakeholders, growth
The nature and purpose of business, the four sectors of activity, entrepreneurship, and starting up.
Public and private sector organisations, commercial structures, social enterprises, and non-profits.
Aims and objectives, strategy versus tactics, common organisational goals, and corporate social responsibility.
Internal and external stakeholders, their expectations and influence, and stakeholder conflict.
Economies and diseconomies of scale, reasons to grow or stay small, and methods of expansion.
The features and role of multinationals, and the implications of operating across several countries.
Chapter 2 • 7 sets
HR planning, structure, leadership, motivation, culture, conflict
Forecasting workforce needs, changes in working practices, resistance to change, and managing it.
Principles of organisational design, forms of organisational chart, and adaptable structures.
Leadership styles, how leaders influence employees, and when each approach is appropriate.
Taylor, Maslow and Herzberg, further theories, turnover, appraisal, recruitment, rewards, and training.
Types of corporate culture, the influence of values and behaviour, and culture clash.
Formal and informal channels, how information moves, and the effectiveness of each approach.
Causes of conflict, approaches to managing disagreement, and resolving industrial disputes.
Chapter 3 • 9 sets
Finance, costs, accounts, ratios, cash flow, investment, budgets
The role of finance in supporting activity, and its place in operational and strategic decisions.
Internal and external sources of finance, and the factors behind choosing between them.
Categories of cost, sales revenue, and the relationship between spending, output and income.
The statement of profit or loss, the statement of financial position, and methods of depreciation.
Profitability and liquidity ratios, and using ratio analysis to judge financial performance.
Stock turnover, gearing, debtor and creditor days, and what efficiency ratios reveal.
Cash inflows and outflows, working capital, cash-flow forecasts, and improving the cash position.
Payback period, average rate of return, net present value, and comparing projects.
Cost and profit centres, preparing and using budgets, and analysing variances.
Chapter 4 • 6 sets
Markets, planning, forecasting, research, mix, international
The role of marketing, market characteristics, market share calculations, and market growth.
The purpose of planning, competitive position, unique selling propositions, and differentiation.
Why businesses forecast sales, the benefits of doing so, and the limits of any forecast.
Primary and secondary research, methods of gathering information, and sampling techniques.
Product and portfolio, branding, standard and advanced pricing, promotion, place, people, process, physical evidence.
Methods of entering overseas markets, what drives international expansion, and the challenges involved.
Chapter 5 • 9 sets
Operations, lean, location, break-even, stock, crisis, R and D
The purpose of operations management and its role in turning inputs into goods and services efficiently.
Methods of production and the operational factors behind choosing the right approach.
Lean production, cutting waste, improving efficiency, and managing quality.
Factors influencing location, and the operational effects of relocating or reorganising production.
Break-even calculations, the effect of changing costs and revenues, and the limits of the technique.
Supply chains, stock-control charts, inventory planning, and operational performance measures.
Crisis management, contingency planning, and responding to unexpected operational problems.
Business research, product and process development, and innovation as a source of competitiveness.
Management information systems and how businesses collect, store and use data to support decisions.
Need the theory first?
Check the HL Curriculum Framework to see what each chapter covers, or use the HL Mastery Skill Tracker to work out where to start.
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