AQA AS level: Preparing for AQA BUS1 in January

Teaching Business & Economics, Autumn 2003 by Hammond, Andy

Since the introduction of the new AS and A2 qualification, I have been following the pattern of assessment shown in Table 1 below.

Given the new style of BUS2 and BUS3 paper, this pattern seems to make a great deal of sense, with students only needing to 'get to know' a maximum of two BUS2/3 case studies even if they sit each of BUS2 and BUS3 twice.

The two major pressure points within this pattern are the two January sittings. Speed is of the essence if one is to cover the course content in time to hit these two examination sessions. I always start BUS4 work as soon as possible after AS exams in June, allowing up to 5 weeks of fairly hard work at some 'stand-alone' BUS4 topics. This clears the way for a full and frantic autumn term, during which we manage to cover all four topic areas covered by the BUS4 exam. The BUS1 deadline can be hit fairly easily, I even have time to start the course by introducing motivation theory and practice to our students. The tricky part for BUS 1 is in shifting students from GCSE to AS standard in just four months of teaching time.

Initially, students must be equipped with a clear understanding of the skills of application and simple analysis. Later some time can be spent introducing the skill of evaluation, probably after a few weeks of the course. Since Application is a common weakness on both BUS 1 and BUS2 exams, this is the skill that I tend to try to push hardest, encouraging students to identify a feature that is particular to the firm used in any case studies we tackle. Clearly, plenty of homeworks need to be set in this first term, and these should, wherever possible be marked using a mark scheme that imitates as closely as possible the AQA model. Furthermore, students' work should be annotated with the four skills so that they are able to learn through a process of trial and error what is application and what is analytical. Explaining these skills is so much easier if one can flick back through a student's past homeworks and highlight every appropriately annotated section. In this way, students go into their BUS 1 exam knowing how they are going to be assessed and what examiners expect from them.

Another aspect of my approach to this challenge is to try to encourage students to see a bigger picture from the start of the course. Any exercises that I can find that allow them to see several of the topics they have already covered operating together are welcome. The exercise below is one that I can use in that first term as a valid preparation for the BUS1 exam. Though clearly not of exactly the same format as a BUS1 question I find this to be an excellent way to encourage students to use various parts of their new-found knowledge to tackle the questions. Feel free to use the exercise and the suggested answers below.

My final, critical advice is to run at least two fully blown mock papers. Although there is only one previous 1 hour BUS1 paper in circulation at the time of writing, a little tweaking of former BUS1s can simulate the new style paper fairly well. At least one of these mock exams should take place before the Christmas break, with time for full feedback to each student before they break up for what they had previously considered holidays. Many will now choose to use the break as sensible preparation time, and if possible, a mock exam in early January may provide the positive feedback that sets the student up to approach their exam with well-placed confidence.

The Rowlands Digital Sub-Super Woofer Amplifier/Speaker combination

The Rowlands hi-fi company is planning the launch of their new sound enhancement product, the Rowlands Digital Sub-Super Woofer Amplifier/Speaker combination. The variable costs of the product are £120, whilst the trade price (at which the product is sold to retailers) is set at £200. Distribution will take place through a chain of upmarket hi-fi retailers. Annual fixed costs are £3,500,000.

The firm has set the following targets for distribution for the year of launch:

The firm has calculated that the average sales per outlet that are likely to be achieved will be 400 units per year.

1. Calculate the anticipated profit per year assuming that distribution targets are met. (8)

Actual distribution levels achieved in the year after launch are shown in the table below:

2. Calculate the contribution variance in each region, then the profit variance for the firm for the year. (14)

3. Explain the benefits of setting distribution targets for sales staff. (8)

4. Analyse the actions that the firm could take in preparation for next year, in order to improve its actual performance. (10)

* So total estimated contribution was £3,808,000, leaving a profit of £308,000 after deducting FC.

* Total actual contribution was £3,488,000, leaving a loss of £12,000 after deducting FC.

* Therefore, profit variance was the difference between £308,000 and (£12,000) = £320,000 (adverse).

3. Setting targets helps because:

* sales staff can aim at a clear target and feel a sense of achievement if the target is reached