Business Studies

Rationale

Business Studies Level 3 gives learners the opportunity to understand how vital business is to the wealth and well-being of Australians and how it impacts on many aspects of our lives. Learners study the nature of business, key business functions and the importance of business practices and management strategies to the sustainability of businesses. The role of management and entrepreneurship are also recognised as powerful influences in business success. Business Studies assists learners to think critically about the role of business and about the ethical responsibilities business has to society.

Business Studies develops business literacy which enhances a learner’s ability to appreciate the issues that face businesses and stakeholders in a rapidly changing world and to make informed and rational decisions about business matters. Learners will be well equipped to be proactive participants in the world of business, behaving responsibly and demonstrating integrity in business activities.

Aims

Business Studies Level 3 aims to develop learners’:

Business knowledge: Learners describe and use business terms, concepts and processes as they describe business situations
Business reasoning: Learners apply appropriate business and financial tools, concepts and processes to interpret financial data and information for business purposes
Business decision-making: Learners analyse business situations and the forces that influence the operation of a business to determine the effectiveness of management actions and to formulate recommendations to improve business performance
Business communication: Learners select and use business terms and language conventions to convey meaning to stakeholders
Business inquiry skills: Learners develop skills in the inquiry method of learning as they apply them to the preparation of a feasibility study.

Learning Outcomes

On successful completion of this course, learners will be able to:

describe functions of business and entrepreneurship in contemporary Australian environments
describe features of operations management, human resource management, marketing management and financial management
apply tools, techniques and processes to assess data and information and draw evidence-based conclusions about business performance
assess the effectiveness of business practices and management strategies
make logical decisions, judgments and recommendations to improve management practice and business performance
apply relevant business ideas, practices, processes and concepts and inquiry skills to prepare a feasibility study
communicate in ways that are suitable for the business environment and for purpose and audience, including the use of appropriate information and communication technologies
analyse the social, ethical, economic and environmental implications and consequences of business and enterprise practices.

Pathways

Business Studies – Foundation Level 2 provides a pathway to this course.

Business Studies Level 3 complements vocational education and training (VET) pathways in Business Services, such as Certificate II in Business (BSB20112), Certificate III in Business (BSB30112) and Certificate III in Business Administration (BSB30412).

Business Studies establishes a basis for tertiary study in business and commerce, and further education, training and employment in the fields of small-to-medium enterprise, business management, human resource management, financial management, commerce, marketing and operations management and corporate systems management.

Course Size And Complexity

This course has a complexity level of 3.

At Level 3, the learner is expected to acquire a combination of theoretical and/or technical and factual knowledge and skills and use judgement when varying procedures to deal with unusual or unexpected aspects that may arise. Some skills in organising self and others are expected. Level 3 is a standard suitable to prepare learners for further study at tertiary level. VET competencies at this level are often those characteristic of an AQF Certificate III.

This course has a size value of 15.

Course Description

Business Studies Level 3 is the study of the nature of business and the environments in which businesses operate. Learners develop understanding of business organisations, the markets they serve, the internal workings and management of business and the processes of decision-making. They learn about sustainable management practices and are made aware of the economic, environmental, ethical, regulatory, social and technological issues associated with business activity. Learners also plan and prepare a feasibility study for a business start-up idea.

Course Delivery

Units 1–5 may be taught in any order. Unit 6 may be introduced early in the course and run concurrently.
A Glossary of terms used in the standards and throughout the course document is provided in Appendix 1.
Formulae used in this course are provided in Appendix 2.

Course Requirements

The storing, processing and accessing of digital data and information are now essential parts of current business practice. Learners are required to utilise office productivity software as part of their engagement with this course.

Course Content

There are six (6) compulsory areas of study:

Unit 1: The Business Environment (30 hours)
Unit 2: Operations Management (20 hours)
Unit 3: Human Resource Management (20 hours)
Unit 4: Financial Management (30 hours)
Unit 5: Marketing Management (30 hours)
Unit 6: Business Inquiry: Preparing a Feasibility Study (20 hours)

UNIT 1: THE BUSINESS ENVIRONMENT (30 HOURS)

The focus of this unit is business and entrepreneurship in Australia. It involves business structures, the impact of internal and external environments on business, and the roles of business managers and entrepreneurs who plan, organise and lead businesses to fulfil key business functions.

Business knowledge	Business reasoning	Business decision-making
The Functions of business
Economic and social roles of businesses in the economy: production, employment, careers, enterprise, investment Overview of the four key business functions and their relationship to one another: operations management human resources management marketing management financial management Business goals and objectives: profit, personal efficiency, effectiveness, social responsibility.
Types of business
Classification of business by: Sector – primary, secondary, tertiary size geographical spread – local, national, global legal structure – unincorporated and incorporated Factors influencing choice of legal structure Sources of finance to fund the legal structure – debt (external) and equity (internal).		Implications of each type of legal structure when making business decisions.
The business environment
External influences on business and how Political, Economic, Social, Technological, Legal Environmental (PESTLE) changes in these influences impact on business: political (including government policies and changes to policies) economic (including the economic cycle – boom and recession) social technological (including scientific discoveries/ inventions) legal environmental Internal influences on business: product; location; management; resource management; and business culture Stakeholders in the internal and external environments and their interests and issues: shareholders; managers; employees; consumers; community and society; and the environment.		Managers consider the views of stakeholders, risks, resources and the internal and external environment as they make decisions to achieve business goals and objectives.
Entrepreneurship
Innovation and identification of opportunities and risk taking Leadership traits – skilled communication, social awareness, skilled decision-making, futures thinking, self-discipline, responsibility and to inspire and motivate.	Entrepreneurship requires an understanding of processes to test the viability and ethical nature of new ideas.	Innovative ideas come to fruition through the development of clear feasibility studies (see Unit 6).
Ethical behaviour in business
Business ethics is about how businesses are expected to conduct their affairs in the context of the expectations and requirements of society. It concerns the socially accepted standards of right attitudes and conduct concerning the way a business interacts with other businesses, individuals, society, the environment, and governments.		Business decisions and behaviours often involve ethical considerations which may conflict with profit considerations and corporate culture. Businesses undertake audits to determine corporate social responsibility and develop codes of conduct.

UNIT 2: OPERATIONS MANAGEMENT (20 HOURS)

The focus of this unit is Operations Management (OM) which involves businesses efficiently and effectively converting inputs (resources) into quality products or services desired by customers.

Business knowledge	Business reasoning	Business decision-making
Key concepts in OM
Inputs, process and outputs Competitive advantage, e.g. cost leadership and product differentiation Production – efficiency		Implications for effective OM decision-making and business planning.
Role of operations managers
Operational decisions – purchasing, dispatching, inventory control, planning and scheduling, maintenance and quality control involving planning, developing, and the use of established and leading edge technology Strategic decisions – planning, developing and controlling the activities required to create a product and supply a service. Strategic decisions and planning for the use of established and leading edge technology Scheduling techniques to ensure materials are in the right place at the right time (e.g. just-in-time, total quality management).		Implications for effective OM decision-making and business planning.
Social, environmental, legal and ethical issues in OM
Conservation and environmental concerns, offshore production, outsourcing. Deskilling. Legal concepts such as breach of contract and intellectual property.		Implications for effective OM decision-making and business planning.

UNIT 3: HUMAN RESOURCE MANAGEMENT (20 HOURS)

The focus of this unit is about managing the people in a business organisation. It explores ways Human Resource Management (HRM) helps achieve business and personal goals.

Business knowledge	Business reasoning	Business decision-making
Purpose of HRM
Attracting, motivating, developing, training and retaining the appropriate mix of human resources.		Implications for effective HRM decision-making and business planning.
Factors influencing HRM
Factors that drive change and reasons for resistance, such as finance and managerial inertia The Australian workplace, such as the need to understand: diversity and cross-cultural awareness types of employment contracts National Employment Standards Legal regulations Fair Work Act Equal Opportunity Work, health and safety (WHS).		Implications for effective HRM decision-making and business planning.
The employment cycle
Stages acquisition – staffing requirements, job design, selection and recruitment development – induction and training maintenance – agreements, contracts and performance management separation – voluntary and involuntary (retirement, resignation, retrenchment and dismissal) The role of social media in the employment cycle.		Implications for effective HRM decision-making and business planning.
Social, environmental, legal and ethical issues in HRM
Business closure or restructure The rights of employees Child labour.	Possible conflicts between personal and business goals, which at times may differ.	Understanding individual and cultural diversity, showing tolerance to other points of view and encouraging consensus and collaboration to assist in achieving mutually beneficial outcomes and better business decisions.

UNIT 4: FINANCIAL MANAGEMENT (30 HOURS)

The focus of this unit is Financial Management (FM). This occurs through the analysis and interpretation of financial data and information and is necessary to achieve business goals.

Business knowledge	Business reasoning	Business decision-making
The nature of financial statements used for external reporting
Balance Sheets purpose classified by elements (current assets, non-current assets, current liabilities, non-current liabilities, owner’s equity) link to financial objectives Income Statements purpose classified by elements (net sales, cost of goods sold, expenses) link to financial objectives.	Calculation of ratios: measures of profitability: Gross Profit Ratio, Net Profit Ratio and Rate of Return on Owner’s Equity measure of financial stability: Gearing (or Debt to Equity) Ratio measure of liquidity: Current (or Working Capital) Ratio measure of efficiency: Debtors Collection Period. (Refer to Appendix 2 for formulae.)	Interpretation of an Income Statement in terms of its main elements Interpretation of a balance Sheet in terms of its main elements Interpretation of financial ratios in terms of profitability, financial stability, liquidity and efficiency comparison of ratios to 3 previous years and industry average Recommendations to improve business performance.
The nature of a Cash Budget as a planning tool
Importance of cash flow to business viability Sources of finance equity short term debt (e.g. bank overdraft and trade creditors) long term debt (e.g. mortgages, leasing) Managing the risks of finance Purpose of a Cash Budget Components (expected cash receipts/inflows and expected cash payments/outflows) Link to financial objectives.		Interpretation of a Cash Budget Recommendations to improve business performance.
Cost-volume-profit (CVP) or Break-even analysis
Cost behaviour: fixed and variable Contribution margin Break-even point. (Refer to Appendix 2 for formulae.)	Calculation of variable cost, fixed cost, profit or sales volume Calculation of contribution margin per unit Calculation of break-even point Calculation of effect on profit/loss of changes in any component.	Analysis and interpretation of results to changing decisions about volumes, pricing and costs.
Social, environmental, legal and ethical issues in FM
Fraud, non-disclosure or distortion of financial information, business closure or restructure and the rights of financial stakeholders.		Implications for effective FM decision-making and business planning.

UNIT 5: MARKETING MANAGEMENT (30 HOURS)

The focus of this unit is Marketing Management (MM). This involves businesses researching consumer markets and tailoring products, ideas and services to satisfy the changing needs and wants of consumers and society.

Business knowledge	Business reasoning	Business decision-making
Nature of marketing
The notion and importance of marketing Attributes of marketing The marketing planning process: use of the tool – SWOT analysis (Strengths, Weaknesses, Opportunities and Threats) competitive analysis product life-cycle (establishment, growth, maturity, decline) establishing objectives (expansion, diversification, increasing market share, increasing size of existing market) identifying target markets (demographic, geographical, psychographic and behavioural factors).	Completion of a SWOT analysis.	Implications of the SWOT analysis for business planning.
Market research methods
Primary methods Secondary methods.		Implications of market research for establishing the target market and marketing mix.
The marketing mix
Competitive advantage through: product price promotion place.		Implications of the marketing mix for business planning.

Business knowledge	Business reasoning	Business decision-making
Marketing strategies to sustain a competitive advantage
Market segmentation and product differentiation Positioning, branding, packaging, logo, corporate slogan Pricing methods (break-even analysis or cost-volume-profit [CPV], cost-based, market-based, competition-based) Pricing strategies (price skimming, penetration pricing, loss leader pricing, price points) Promotion strategies (advertising, online, personal selling, sales promotions, direct marketing, public relations) Place and distribution strategies (e.g. online, home delivery) Web based marketing (e.g. internet, social media).	CVP calculations (Refer to Unit 4 and Appendix 2 for formulae).	Implications of marketing strategies for business planning Interpretation of CVP calculations to make recommendations to improve business performance.
Performance evaluation – the key performance indicators (KPIs) to be used
Financial – sales revenue, sales returns, cost reduction, profitability Non-financial – quality, customer satisfaction.		Implications for effective MM decision-making and business planning.
Social, environmental, legal and ethical issues in MM
Marketing decisions or strategies and advertising practices are impacted by legislation, codes of behaviours and societal and ethical considerations, e.g. alcohol, tobacco and fast food, deceptive and misleading advertising, environmental sustainability and environmentally responsible products.		Implications for effective MM decision-making and business planning.

UNIT 6: BUSINESS INQUIRY: PREPARING A FEASIBILITY STUDY (20 HOURS)

The focus of this unit is business development and entrepreneurship for a start-up idea for a business, either buying an existing business or planning for an innovative and enterprising opportunity. Learners may complete this inquiry independently or collaboratively in groups of up to three (3). They will apply the inquiry approach to their study of a real-world situation. The inquiry approach can be represented by the following diagram:

Business inquiry skills
Skills	Questions to be considered
1. Planning and organising	What time frame am I working to? What time, resources and equipment do I need? What steps do I need to undertake? What do I need to negotiate with my teacher?
2. Defining and questioning	What opportunity have I identified? What does the focus and key ideas tell me? What do I need or want to know about it? What do I already know about it?
3. Researching	What primary and/or secondary resources can I use? How do I know the information is valid and reliable?
4. Analysing and evaluating	How is the information relevant to the question? What other information do I need? What parts support/do not support my task? What conclusions can I draw about the opportunity?
5. Reflecting	What have I found out about the viability of the opportunity? What else is important? What recommendation would I make? What have I learnt that can inform future learning?
6. Communicating	What is my main point? What is my audience and what format is expected? What is my decision/conclusion? What business terms, concepts and ideas do I need to use? Have I used these appropriately?

THE FEASIBILITY STUDY

Focus	Entrepreneurial ideas come to fruition through a clear business development proposal or feasibility study.
Task	Learners are to prepare a feasibility study for a start-up idea for a business, either buying an existing business or planning for an innovative and enterprising opportunity. They are to use the key ideas and guidelines below to assist their research and report preparation.
Key Ideas	Business profile – outline what the business will do Operations analysis Marketing analysis Human resource analysis Financial analysis Evaluation to determine its viability Recommendations.

Work Requirements

Guidelines

The feasibility study must be presented as a written report of between 1500–3000 words. It may be complemented by an oral/signed presentation of 8–12 minutes or the equivalent in multimodal form.

Bullet points, diagrams and charts are appropriate
Appendices are appropriate (up to 5 pages)
Definitions of terms are not appropriate
Appropriate referencing must be used. See TASC’s Authenticity and Academic Integrity: A Guide .

Assessment

Criterion-based assessment is a form of outcomes assessment that identifies the extent of learner achievement at an appropriate end-point of study. Although assessment – as part of the learning program – is continuous, much of it is formative, and is done to help learners identify what they need to do to attain the maximum benefit from their study of the course. Therefore, assessment for summative reporting to TASC will focus on what both teacher and learner understand to reflect end-point achievement.

The standard of achievement each learner attains on each criterion is recorded as a rating ‘A’, ‘B’, or ‘C’, according to the outcomes specified in the standards section of the course.

A ‘t’ notation must be used where a learner demonstrates any achievement against a criterion less than the standard specified for the ‘C’ rating.

A ‘z’ notation is to be used where a learner provides no evidence of achievement at all.

Providers offering this course must participate in quality assurance processes specified by TASC to ensure provider validity and comparability of standards across all awards. To learn more, see TASC's quality assurance processes and assessment information.

Internal assessment of all criteria will be made by the provider. Providers will report the learner’s rating for each criterion to TASC.

TASC will supervise the external assessment of designated criteria which will be indicated by an asterisk (*). The ratings obtained from the external assessments will be used in addition to internal ratings from the provider to determine the final award.

Quality Assurance Process

The following processes will be facilitated by TASC to ensure there is:

a match between the standards of achievement specified in the course and the skills and knowledge demonstrated by learners
community confidence in the integrity and meaning of the qualification.

Process – TASC gives course providers feedback about any systematic differences in the relationship of their internal and external assessments and, where appropriate, seeks further evidence through audit and requires corrective action in the future.

External Assessment Requirements

The external assessment for this course will comprise:

a written examination assessing criteria: 1, 2, 3, 4 and 5.

For further information see the current external assessment specifications and guidelines for this course available in the Supporting Documents below.

Criteria

The assessment for Business Studies Level 3 will be based on the degree to which the learner can:

1. describe and use business terms, concepts, principles and ideas related to the management of business in Australia*
2. use tools, techniques and processes to assess data and information about business performance*
3. analyse issues arising from business practices and management strategies*
4. make recommendations to improve management practices and business performance*
5. communicate business ideas and information*
6. undertake research about business opportunities
7. use inquiry skills to plan and prepare a feasibility study

* = denotes criteria that are both internally and externally assessed