Area of Study 4: How are businesses managed?

		Foundation Level	General Level*	Credit Level*
4.1	What are the key decisions that businesses make?	- what to produce •-what to charge •-what to employ •-where to produce	- market research • relationship between price and sales •-people v machines •-whether to grow	•-inter-relationship between components of marketing mix •-combination of factors of production
4.2	What influences the decisions?	• owner needs • customer needs • competition	- the legal environment - the social environment	•-the economic evironment •-the political environment
4.3	What aids decision-making?	- how information helps decision-making • -types of information	• -decision-making model • -range of information used for decision-making	• -complex decision-making model
4.4	How are decisions made?	• -consensual v authoritarian	• -impact of management style on motivation and morale	•- characteristics of effective management
4.5	How do businesses communicate?	• -purpose – to inform, sell • -process – written, visual, spoken •- using IT to communicate	• -formal/informal, internal/external • -select and use appropriate IT • -select appropriate communication methods	• -comparison and evaluation of effectiveness of different communications • -comparison and evaluation of communication technology, eg internet, e-mail, video-conferencing