NQF BTEC Level 3 Assessment Mapping - Unit 1 Exploring Business
Assignment 1 recommended assessment approach: A report that examines the features of a for-profit and a not-for profit
business, looking at how each is organised, how their structures enable achievement of their aims and objectives and the
relationship and communication with stakeholders.
Learning aims: A and B (A.P1, A.P2, B.P3, A.M1, B.M2, AB.D1)
Assessment Guidance for
Learning aim A - Explore the features of different businesses and analyse what makes them
Learning aims A and B
successful
Unit Content
Assessment Criteria
A1 Features of businesses
Ownership and liability:
private, e.g. sole trader, partnership, private limited
company, public limited company, cooperative, limited and
unlimited liability
public, e.g. government department
not-for-profit, e.g. charitable trust, voluntary.
Purposes, e.g. supply of products or services, difference between
for-profit and not-for-profit businesses.
Sectors: primary, secondary, tertiary, quaternary.
Scope of business activities: local, national, international.
Size: micro up to nine staff, Small and Medium Enterprises
(SMEs): small between 10 and 49 staff, medium between 50
and 249 staff; large: more than 250 staff.
Reasons for success: how these differ depending on the type of
business (profit or non-profit), and its aims and objectives, e.g.
clarity of vision, innovative products or processes.
A2 Stakeholders and their influence
Stakeholders:
internal, e.g. managers, employees, owners
external, e.g. suppliers, lenders, competitors, debtors,
creditors, customers, government agencies and
departments (local, national, international),
communities (local, national, international), pressure
groups, interest groups.
The influence of stakeholders on business success, e.g.
shareholder value; customers as long-term assets (strong
customer service enables customer loyalty and retention);
employee involvement, corporate social responsibility
(community groups and interest groups).
A.P1 Explain
the features of
two
contrasting
businesses.
A.P2 Explain
how two
contrasting
businesses are
influenced by
stakeholders.
A.M1 Assess the
relationship
and communication
with stakeholders of
two contrasting
businesses using
independent
research.
AB.D1 Evaluate
the reasons
for the success of
two
contrasting
businesses,
reflecting on
evidence
gathered.
(Assesses both
learning aims A
and B)
A3 Effective business communications
Appropriate presentation and delivery of information to a given
audience:
written presentations, e.g. financial, non-financial, formal and
informal reports
oral presentations, e.g. computer projection/PowerPoint with
speaker notes
importance of communication to aid business success, e.g. social
media, virtual communities.
Learning aim B: Investigate how businesses are organised
Unit Content
B1 Structure and organisation
Organisational structure, e.g. hierarchical, flat, matrix, holacratic.
Functional/operational areas, e.g. human resources, research and
development, sales, marketing, purchasing, production and
quality, finance, customer service, IT, administration.
B2 Aims and objectives
Aims of businesses in different sectors mission, vision and
values:
o
private, e.g. making profits, profit maximisation,
break-even, survival, growth, market leadership
o
public, e.g. service provision, cost control, value for
money, service quality, meeting government
standards
o
not-for-profit, e.g. education, housing, alleviating
poverty, healthcare
SMART (Specific, Measurable, Achievable, Relevant, Time
constrained) objectives.
Assessment Criteria
B.P3 Explore
the
organisation
structures,
aims and
objectives of
two
contrasting
businesses.
B.M2 Analyse how
the structures of two
contrasting
businesses allow
each to achieve its
aims and objectives
AB.D1 Evaluate
the reasons
for the success of
two
contrasting
businesses,
reflecting on
evidence
gathered.
(Assesses both
learning aims A
and B)
For distinction standard,
learners will produce relevant
evidence of how differing
features and the complex
relationship and
communications with its
internal and external
stakeholders make businesses
successful to support the
evaluation given. The report
will be professional, logically
structured, use the correct
business terminology and will
contain high-quality written
language. It will be suitable
for the given audience.
For merit standard, learners
will demonstrate clear
analysis of the range of
features that have made two
businesses successful, and
show how the organisation of
each business has allowed it
to achieve its aims and
objectives. The report will be
logically structured, use
appropriate business
terminology and will contain
good-quality written
language. It will be suitable
for the given audience.
For pass standard, learners
will carry out research that
allows them to clearly link
familiar and obvious features
of the businesses and the
stakeholder influence to
success factors. The report
will be structured, use some
business terminology
appropriately and will contain
quality written language. It
will be suitable for the given
audience.
NQF BTEC Level 3 Assessment Mapping - Unit 1 Exploring Business
Assignment 2 recommended assessment approach: A report that examines the effects of the internal and external
environment on a large business and how the business has, and will, respond to changes.
Learning aims: C and D (C.P4, C.P5, D.P6, C.M3, D.M4, C.D2, D.D3)
Assessment Guidance for
Learning aim C: Examine the environment in which businesses operate
Learning aims C and D
Unit Content
Assessment Criteria
C1 External environment
Political, e.g. government support, membership of trading
communities such as the European Union.
Economic, fiscal, monetary and other government policies, e.g.
supply side policy, economic growth, exchange rates.
Social attitudes to saving, spending and debt; social responsibility
requirements; change, e.g. to demographic trends, consumers
tastes/preferences.
Technological change, e.g. automation, improved
communications.
Environmental factors and ethical trends, e.g. carbon emissions,
waste, recycling, pollution.
Legal environment, e.g. Partnership Act 1890, Companies Act
2006, Charities Act 2011, Competition Act 1998, UK Corporate
Governance Code, financial services regulation, industry
regulators, government departments. (Statutes and regulations
current at the time of teaching should be used. Outline
understanding only is expected.)
C.P4 Discuss
the internal,
external and
competitive
environment
on a given
business.
For distinction standard,
learners will carry out indepth research on the extent
to which the business
environment affects a given
business, and how it could
affect the business in the
future. Learners will be able
to utilise a variety of
situational analysis
techniques to support their
evaluation. The report will be
professional, logically
structured, use the correct
business terminology and will
contain high-quality written
language. It will be suitable
for the given audience.
C2 Internal environment
Corporate culture.
Corporate social responsibility (CSR), ethics
C3 Competitive environment
Competition (local, national and international).
Factors influencing competitive advantage, e.g. differentiation,
pricing policies, market leadership, reputation, market share, cost
control, technology relationships with customers, suppliers,
employees.
Benefits and importance of establishing and maintaining a
competitive advantage.
C4 Situational analysis
Assessment of the business environment using various
techniques, e.g. PESTLE (Political, Economic, Social, Technological,
Legal, Environmental) analysis, SWOT (Strengths, Weaknesses,
opportunities, Threats) analysis, 5Cs (Company, Competitors,
Customers, Collaborators, Climate) analysis, Porters Five Forces.
C.P5 Select a
variety of
techniques to
undertake a
situational
analysis of a
given business.
C.M3 Assess the
effects of the
business
environment on
a given business.
C.D2 Evaluate
the extent to
which the
business
environment
affects a
given business,
using a
variety of
situational
analysis
techniques.
Learning aim D: Examine business markets
Unit Content
D1 Different market structures
Market structures: perfect competition, imperfect competition.
Features of different market structures: number of firms,
freedom of entry, nature of product.
D2 Relationship between demand, supply and price
Influences on demand, e.g. affordability, competition, availability
of substitutes, level of Gross Domestic Product (GDP), needs and
aspirations of consumers.
Influences on supply, e.g. availability of raw materials and labour,
logistics, ability to produce profitably, competition for raw
materials, government support.
Elasticity: price elasticity of demand.
D3 Pricing and output decisions
Impact on pricing and output decisions in different market
structures.
Reponses by business to pricing and output decisions of
competitors in different market structures.
Assessment Criteria
D.P6 Explore
how the
market
structure and
influences on
supply and
demand affect
the pricing and
output
decisions for a
given business.
D.M4 Assess how a
given business has
responded to
changes in the
market.
D.D3 Evaluate
how changes
in the market
have impacted
on a given
business and
how this
business may
react to future
changes.
For merit standard, learners
will select and apply relevant
knowledge of the effects of
the business environment on
a given business and how it
has responded to changes in
the market. The report will be
logically structured, use
appropriate business
terminology and will contain
good-quality written
language. It will be suitable
for the given audience.
For pass standard, learners
will carry out research that
allows them to discuss the
effect of the internal, external
and competitive environment
on a given business. Learners
will show an understanding of
situational analysis
techniques that can be used
to analyse the business
environment. The report will
be structured, use some
business terminology
appropriately and will contain
good-quality written
language. It will be suitable
for the given audience.
NQF BTEC Level 3 Assessment Mapping - Unit 1 Exploring Business
Assignment 3 recommended assessment approach: A presentation that investigates the use of enterprise and innovation
in an existing business.
Learning aim: E (E.P7, E.M5, E.D4)
Assessment Guidance for
Learning aim E: Investigate the role and contribution of innovation and enterprise to business
Learning aim E
success
Unit Content
Assessment Criteria
E1 Role of innovation and enterprise
Innovation, e.g. creative process, product or service
development, new ways of increasing business efficiency or
improving profitability, successfully exploiting a new idea, adding
value to products, services or markets to differentiate the
business from the competitors.
Enterprise: identifying opportunities to develop business
activities through, e.g. creative, lateral (approaching subjects
from alternative perspectives) and blue sky thinking
(approaching subjects with no restrictions on perspectives);
chance and serendipity, intuition.
E2 Benefits and risks associated with innovation and enterprise
Benefits: improvements to products, processes, services and
customer experience, business growth, development of new and
niche markets, offering unique selling points, improved
recognition and reputation, smarter working.
Risks: failing to meet operational and commercial requirements,
failing to achieve a return on investment, cultural problems
(resistance to change, unsupportive systems and processes,
insufficient support from leadership and management).
E.P7 Explore
how
innovation
and enterprise
contribute to
the success of
a business.
E.M5 Analyse how
successful the use of
innovation and
enterprise has been
for a given business.
E.D4 Justify the
use of innovation
and enterprise
for a business in
relation to
its changing
market and
environment.
For distinction standard,
learners will prepare and
present an individual
assessment and analysis
of the use of innovation and
enterprise in an existing
business. Learners will weigh
up risks versus advantages
and come to a justified
conclusion, supported by
relevant evidence that clearly
explains the importance of
innovation and enterprise.
The presentation will be
professional, i.e.
appropriately structured, use
the correct business
terminology, contain highquality written language and
be supported by speaker
notes. It will be suitable for
the given audience.
Throughout the unit learners
will show individuality of
thought, independent
collection, collation and
judgement of evidence.
For merit standard, learners
will carry out adequate
research to allow them to
demonstrate how the use of
innovation and enterprise has
affected a business, and to
analyse how this has affected
the success of this business.
The presentation will be
professional, i.e.
appropriately structured,
use appropriate business
terminology, contain goodquality written language and
be supported by speaker
notes. It will be suitable for
the given audience.
For pass standard, learners
will carry out research on use
of enterprise and innovation
in an existing business, and
show an understanding that
although innovation and
enterprise may have its
benefits, there are also risks
and drawbacks. The
presentation will be
structured, use some
business terminology, contain
good-quality written language
and be supported by speaker
notes. It will be suitable for
the given audience.
