Unit 4 a-Level Preparation Work for Edexcel

Topics: Generally Accepted Accounting Principles, Financial ratios, Net present value Pages: 7 (2074 words) Published: June 18, 2013
Pat’s Unit 4
We’ll smash it!! Have faith in Pat
We’ll smash it!! Have faith in Pat

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Things to know for Unit 4 Examination
1. You should by now understand company mission statements, corporate aims and objectives, you should identify how corporate objectives have been developed from the mission statement/corporate aims and be able to critically appraise mission statements. 2. Porters Strategic Matrix: Understand why this would be used and who would use it, for what purpose. 3. Boston Consulting Group Matrix (Boston Matrix) you know this by now!!! If you don’t I’ll kill you!! 4. Ansoff’s Matrix: Any question regarding growth this could and should be included 5. PESTLE – When asked about potential limitations or evaluating to this effect, the PESTLE model should help judge your memory. For example Egypt’s political problems, Spain’s economic problems, HK fasion trends and tastes, China’s Internet problems, China’s business ownership law, Carbon Footprint of producing in China and transporting goods back etc. 6. Investment Appraisal - Simple payback (Payback method); Average Rate of Return, Discounted Cash Flow (Net Present Value only) should be able to do calculations and interpret figures generated by these techniques. You also need to know the limitations of these techniques!! 7. Decision trees you need to construct and interpret simple decision trees. You also need to know the limitations of this technique. 8. Critical Path analysis: you need to know the nature and purpose of critical path analysis. Be able to draw simple networks, calculate Earliest Start Time and Latest Finish Time, identify the critical path and calculate the total float. you also need to know the limitations of these techniques. 9. Contribution: You need to know whether an unexpected order is worth accepting based on the contribution it will bring, and also at times is it worth dumping stock at cost or loss to generate contribution revenue 10. Contingency planning: you need to understand the importance of contingency planning, eg consider the risk of operating in a country or seeking growth in new overseas markets. You should be able to use the Ansoff Matrix to consider why a company may seek to invest in a factory overseas, eg to reduce dependence on domestic market (spread risk) through planning for growth. 11. Interpretation of financial statements: You need to use ratio analysis on simplified financial statements to Return on Capital, Liquidity (Current and Acid Test Ratio), and Gearing. I will do this after the Unit 3 exam. You then need to be able to examine a company’s performance over time and understand the limitations of ratios as a decision making tool; the likely corporate responses to results of ratio analysis and how level of assets can influence the level of financial borrowing permitted. 12. Human resources competitiveness: you should use labour productivity calculations based on labour/inputs/outputs and labour turnover calculations, including unavoidable leavers (eg in different country offices) in measuring organisational effectiveness and productivity. You should consider the use and limitations of such analyses how businesses seek to improve them and the potential corporate responses to results of human resource analysis.

Some Unit 4 Previous questions and other hot topics that I want you to look into
2 Marks

What is meant by the term: stakeholder
What is meant by the term: labour productivity
What is meant by the term: operating profit
What is meant by the term: corporate culture
What is meant by the term:competitive advantage
What is meant by the term:corporate strategy
What is meant by the term:mission statement
What is meant by the term:current Ratio
What is meant by the term:corporate objective
What is meant by the term: distinctive capabilities
What is meant by the term:corporate...
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