Pearson LCCI Level 2 Certificate In Business Fundamentals
Pearson LCCI Level 2 Certificate inBusinessFundamentals(ASE20300)TEACHER’S GUIDE
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Contents1. Specification overview52. Content71. The business environment2. Communication and the customer3. Management information systems and businessdocumentation4. Business policies5. Personal skills and performance3. AssessmentAssessment summaryAssessment objectivesPerformance descriptorsCommand wordsItem typesMark schemesModel answersConstructing a mock examination paper4. ResourcesSupport resourcesSupplementary resource suggestions816202329323233343536373741464646
Pearson LCCI Level 2 Certificate inBusinessFundamentals(ASE20300)TEACHER’S GUIDEIntroductionWelcome to the Teacher’s Guide for Pearson LCCI Level 2 Certificate in Business Fundamentals (ASE20300).We are delighted that you are interested in teaching this new qualification in the LCCI Business suite. We haveprovided this free resource written by subject experts to support your delivery of the specification. It wascreated to support both new and existing LCCI teachers and is based on the content of the specification. It isessential that you familiarise yourself with the full requirements of the specification. This guide is purely forsupport purposes and is not designed to be a substitute for the specification itself.We encourage you to check the Pearson website for further information about LCCI qualifications.
5PEARSON LCCI LEVEL 2 CERTIFICATE IN BUSINESS FUNDAMENTALS (ASE20300): TEACHER’S GUIDE1Specification overviewAll of the new specifications have been designed in the same way to allow for comparability and ease of understanding across the LCCIportfolio.Knowledge,skillsand understandingHereyou can seean exampleof how the content in the new specifications are organised.ContentTo prepare students for the final assessment of this qualification, the followingcontent must be covered.1. The business environmentSubject contentWhat students need to learn1.1 The purpose ofbusiness activityUnderstand how businesses operate to meet the demandsof the consumer and achieve business objectives. The purpose of business activity:ocombine factors of production (labour, land, capital,enterprise/entrepreneurship)oadd value to productsosatisfy consumer demandosatisfy customer needsomeet business objectives.The main features of a competitive market:obuyersosellersoprofit motive.The role, risks and rewards of the entrepreneur:identifiesThe content is broken odownintomarkettopicopportunitiesheadings. In this example, the topic heading can be seen at the top of the page, labelled 1. Theocombinestogetherthe factors of productionbusiness environment.oloss of capitalomake a profitopersonal satisfactionosocial and ethical responsibility.Each topic heading is divided into subject content and are labelled with numbers. In this example, the subject content is shown on the lefto response of competitorsof the table, labelled 1.1 The purpose of business activity.
6PEARSON LCCI LEVEL 2 CERTIFICATE IN BUSINESS FUNDAMENTALS (ASE20300): TEACHER’S GUIDEThe subject content is further subdivided into specific content items that students need to learn and will be assessed in the examination.These items are preceded by a rider statement (discussed later in this section) and the specific content is shown as bulleted lists. Thesolid bullet points indicate what students need to know and the hollow bullet points indicate the specific content required. From the above,one example that learners need to know is The main features of a competitive market, which can be broken down further to cover buyers,sellers and profit motive only.Note: Many of the new specifications have a content topic on legal and ethical considerations. Please note that when teaching this topic,although learners must be aware of relevant legislation, regulations and codes of practice, the specific names, dates and sections of thesewill not be assessed in the examination.Rider statementsEach subject content area has a heading followed by a rider statement. The rider statements in the specification outlines the breadth anddepth of the content. It details what the student needs to know and/or be able to demonstrate in the examination. It will be expressed insentence case (not bullet points) and will be followed by the specific content to support the statement to which it relates. In the previousexample you saw when exploring the specification structure and format, the rider statement can be clearly seen at the top right of thetable:Understand how businesses operate to meet the demands of the consumer and achieve business objectives.Specification terminologyIn order to understand the breadth and depth of what needs to be taught and learned, the below provides a brief explanation of each ofthe typical terms which can be found in the rider statements for this qualification.In the Level 2 Business Fundamentals specification, two are used:Understand Rider statements which start with the word ‘understand’ require learners to explain business principles and practices byproviding specific examples or with reference to a specific business case study or scenario.Know Rider statements which start with the word ‘know’ require learners to memorise certain key facts which provide the basis of furtherexploration in other sections of the specification.
7PEARSON LCCI LEVEL 2 CERTIFICATE IN BUSINESS FUNDAMENTALS (ASE20300): TEACHER’S GUIDE2ContentThis qualification is split into five content (topic) areas. These content areas can be found on the ‘Specification at a glance’ page of eachspecification. For this qualification, the content areas are:1.2.3.4.5.The business environmentCommunication and the customerManagement information systems and business documentationBusiness policiesPersonal skills and performanceIn this section, there is an overview of each content area which provides a summary of the approach that could be taken when teaching thecontent. This introduction is then followed by a table which covers: The outcomes of each subject content area which learners will need to know once they have completed the topic;A set of sequenced teaching activities which build upon learners’ knowledge and understanding of the subject matter;Suggested classroom activities that can be completed by the learners;Suggested homework tips.
8PEARSON LCCI LEVEL 2 CERTIFICATE IN BUSINESS FUNDAMENTALS (ASE20300): TEACHER’S GUIDE1The business environmentIn commencing Topic 1, it would be useful for your learners to have a broad understanding of the scope and scale of the Level 2Business Fundamentals specification. You might like to consider providing a brief overview of the specification content and how thelearners will be assessed. This would provide a useful context to Topic 1, The business environment.It is always useful to start the teaching programme by focusing upon the experience of the students. In this topic, you could askthem to consider: Their most recent purchases; The criteria they prioritised when making their purchasing decisions (price, quality, reliability, advertising and brand image)which could lead on to the notion of a competitive market; They could then list the businesses that they have used, identify their common features and objectives and classify them interms of different types.You could take any of these businesses and identify: How they are structured and organised into departments; The functions of each department.You could then build upon this understanding by introducing the concept of business stakeholders and their needs and interests.Next introduce the concept of business enterprise: Its characteristics such as innovation; Taking risks.This can be followed-up by: Introducing the importance of business planning; How business plans can be informed by the outcome of a SWOT analysis; The importance of information technology in business operations.The learners will then be introduced to the main sources of business finance which can support the business plan: The relationship between financial record-keeping; The information contained in two of the main financial statements;»» The statement of comprehensive income;»» The statement of financial position.
9PEARSON LCCI LEVEL 2 CERTIFICATE IN BUSINESS FUNDAMENTALS (ASE20300): TEACHER’S GUIDESpecificcontentOutcomesSuggested teachingActivities1.1 Thepurpose ofbusinessactivityAt the completionof this section ofthe specificationstudents will be ableto:1.Prepare a short presentation on the five areas covered bythe specification and how the learners will be assessed.2.Ask the students to prepare a list of four products theyhave purchased in the last week and the criteria theyused to make their purchasing decisions (they couldtabulate their results); link this to the concept of acompetitive market and its main features. Draw outfrom the discussion the implications for the business ofoperating in a competitive market.Students commence an on-goingglossary of recording key businessterms with definitions.Understand howbusinesses operateto meet the demandsof the consumer andachieve businessobjectives.3.The characteristics of successful entrepreneurs – showvideo clips of successful entrepreneurs and theirinnovations and their role, risks and rewards, in relationto their business enterprise.4.From the table, ask the students to draw out the mainfeatures, purpose of business activity and the mainobjectives of business.5.Return to the products purchased by the students andask them to identify some of the common featuresof these products – lead into the notion of factors ofproduction and their role in the production of goods andservices.6.Complete a summary of the main learning pointscompleted in the topic and map against the specificationto ensure all the points are covered. Ask targeted questions to confirm understanding Provide feedback on homework tasksTest students’ understanding of subject matter(students can mark their own work)Address any issues raised from homework tasks.Tabulate the reasons for purchasingdecisions.Participate in class discussion.Discuss the implications for thebusiness of operating in a competitivemarket.On-line research to find examples ofbusiness plans.Watch extracts from TV programmesof entrepreneurs seeking investmentfor their business ideas (studentsto identify and take notes of thecharacteristics of a successful businesspitch for business finance).Homework tips Revision for short test Update glossary of terms Sample examination questions(Short ‘explain’ or ‘describe’questions).
10PEARSON LCCI LEVEL 2 CERTIFICATE IN BUSINESS FUNDAMENTALS (ASE20300): TEACHER’S GUIDE1.2 Typesof businessorganisationAt the completionof this section ofthe specificationstudents will be ableto:Know the key features,differences between,and advantages anddisadvantages of themain types of businessorganisation.1.Students to undertake research into the businesses inthe local economy; these should be classified by size, typeand products/services offered.2.Use the source material prepared by the studentsto classify the businesses further in terms of theirownership - public and private sectors.3.Use the source material prepared by the studentsto classify the businesses further in terms of theirownership, which should link to the concept andimplications of limited and unlimited liability.4.Use the source material prepared by the students toclassify the businesses further in terms of the keyfeatures of different types of business and theiradvantages and disadvantages (pay particular attentionto the implications of limited and unlimited liability).5.Identify national organisations in the public sector whichcan be classified as public corporations identifying theirfeatures, advantages and disadvantages.1.3 BusinessdepartmentsAt the completionof this section ofthe specificationstudents will be ableto:Understand howbusinesses arestructured and howthe main departmentscontribute to businessobjectives.6.Provide examples of how the students could apply theirknowledge in different business scenarios.1.Divide the class into pairs and allocate a businessorganisation to each pair. Students will be required toinvestigate the internal departmental structure of thebusiness.2.When the students have completed their research theyuse flip charts to record their findings. Teacher highlights:(i) the main departments within a business(ii) the main purpose and features of anorganisational structure.Teacher to provide examples of job roles and the spanof control.Students continue their on-goingrecording of a glossary of key businessterms with definitions.Complete a research task to identifydifferent businesses in the localeconomy; classify the business by sizeand products/services offered.Use the research material tocomplete a range of tasks relatingto the classification of businessesby ownership; advantages anddisadvantages.Homework tipsUndertake research on a publiccorporation in the public sector:Identify its features; advantages anddisadvantages.Complete exam-type question relatingto Assessment Objective 2 (AO2)Demonstrate understanding.Students continue their on-goingrecording of a glossary of key businessterms with definitions.Research on individual businessorganisations allocated by the teacher.Individual presentations on researchfindings.Learners to devise a set of tenquestions:Group 1: ten questions on the types ofbusiness ownership.
11PEARSON LCCI LEVEL 2 CERTIFICATE IN BUSINESS FUNDAMENTALS (ASE20300): TEACHER’S GUIDE3.4.Using the same groupings, allocate each of the fourmain departments (marketing, production, finance,human resources). Using the example of a new product,each group to identify how their allocated departmentcontributes to the successful launch of the product.Teacher reinforces the business objectives covered inSection 1.1 (profits; sales revenue; market share; costcontrol); class discussion regarding the contribution ofeach department to each objective. 1.4 BusinessstakeholdersAt the completionof this section ofthe specificationstudents will be ableto:Understand the mainbusiness stakeholdersand their influenceon a business, andhow corporatesocial responsibilityinitiatives cancontribute towardsmeeting the needs andinterests of differentstakeholder groups.Ask targeted questions to confirm understandingTest students’ understanding of subject matterProvide feedback on homework tasksAddress any issues raised from homework tasks.1.Ask students to consider the type of groups affected bythe activities of a business (and therefore these groupshave a stake in these activities). Provide examples of howeach group may be affected.2.List their suggestions onto a flip chart. Ask the studentsto classify these stakeholder groups as internal orexternal stakeholders.3.Using the same table add another column to provideexamples of the influence of stakeholders.4.Return to the concept of Corporate Social Responsibility(CSR) as a business objective (this will have beenintroduced in Section 1.1 and developed in Section 1.3).Students undertake research to provide examples of howbusinesses promote corporate social responsibility.5.Teacher-led class discussion on the impact of corporatesocial responsibility (on a business’s objectives).Group 2: ten questions on thestructure of business organisations.Groups ask each other their questions.Confirm the answers and ask targetedquestions to confirm understanding.Homework tipsExam type question which requires thestudents to describe how individualdepartments contribute to businessobjectives.Revision to prepare for a short classtest.Students continue their on-goingrecording of a glossary of key businessterms with definitions.Class discussion.Individual presentations.Short tests of factual recall.Homework tipsComplete exam-type question relatingto Assessment Objective 3 (AO3)Apply concepts.For example, a question which testsa student’s ability to identify howdifferent CSR initiatives contributeto the needs and interests of specificstakeholder groups.
12PEARSON LCCI LEVEL 2 CERTIFICATE IN BUSINESS FUNDAMENTALS (ASE20300): TEACHER’S GUIDE1.5 Businessplanning andperformanceAt the completionof this section ofthe specificationstudents will be ableto:Understand thepurpose of businessplanning, a businessplan and how theperformance of abusiness can bemeasured.1.6 Theinfluence oftechnology onbusinessAt the completionof this section ofthe specificationstudents will be ableto:Understand theadvantages anddisadvantages forbusinesses of usingtechnology to achievetheir objectives1.Divide the group into pairs and allocate a businessorganisation to each group (teacher to choose thebusiness organisations and appropriate researchsources).2.All groups to list three objectives of the business.Allocate half the groups to consider the strengths of thebusiness and half the group to consider the weaknesses.Record their findings onto a flip chart or whiteboard.3.Complete the exercise by identifying opportunities andthreats.4.Teacher-led class discussion to identify the differencebetween internal and external influences in the businessenvironment. Identify the business risks which follow onfrom the SWOT analysis; the link between business risksand planning.Students continue their on-goingrecording of a glossary of key businessterms with definitions.Complete individual SWOT analysis ona business.Short answer test to confirmunderstanding.Individual/group presentations of theoutcome of a SWOT analysis.Identify the business risks faced by adesignated business.Homework tipsPrepare a short business plan onbehalf of a new enterprise, includingbusiness risks and performancemeasures.5.Teacher presentation on the main components of abusiness plan and the importance of measuring theperformance of a business (link this to the businessobjectives covered in 1.1 and developed in 1.3).6.Working in pairs, students to identify the ways in whichbusiness performance could be measured. Teacherrecords their findings on a flip chart or whiteboard andleads a class discussion to classify the performancemeasures into financial and non-financial performancemeasures. Teacher explains and defines each of theperformance measures.Complete exam-type question relatingto the four Assessment Objectivesbased upon a teacher-devisedbusiness scenario (See Section Three:Assessment further down).1.Review the outcome of business planning homeworkcompleted by the students.2.Teacher-led classroom discussion on the role of theinternet and its use by businesses.Students continue their on-goingrecording of a glossary of key businessterms with definitions.3.Students to identify the ways in which the business cancommunicate with its workforce, customers and suppliersusing the internet.4.Teacher-led presentation focusing upon a case studyof the role of the internet in business (See Section 4:Learning Resources).Revision for classroom test.Research case studies on howbusinesses use the internet and themain business software packages.Complete teacher-devised worksheetsand tables.
13PEARSON LCCI LEVEL 2 CERTIFICATE IN BUSINESS FUNDAMENTALS (ASE20300): TEACHER’S GUIDE5.1.7 BusinessfinanceAt the completionof this section ofthe specificationstudents will be ableto:Understand why abusiness requiresfinance, the mainsources of businessfinance and thefinancial statementsproduced by abusiness.Students provided with a teacher-prepared worksheetand are required to complete the features of the mainbusiness software packages and the advantages oftechnology to a business (link this to the businessobjectives covered in 1.1 and developed in 1.3).6.Teacher-led discussion on the disadvantages which maybe faced by a business using technology (refer back tothe business risks covered in 1.5).7.Students to complete a teacher-prepared table in whichthey identify the information requirements of a business(link this to the business objectives covered in 1.1 and 1.3,and business planning and business risks covered in 1.5).8.Teacher-led presentation on the functions of amanagement information system (MIS).1.Use the basic business plans produced by the students asthe basis for this section of the specification.2.Students to work in small groups to identify the resourcerequirements of the business and why they may needbusiness finance for their business (business start-upfinance).3.Teacher-prepared worksheet: students to compareand contrast the needs of a start-up enterprise withestablished enterprises and why they may need businessfinance.4.Teacher-led presentation to identify the internal andexternal sources of business finance (link this with thework covered in 1.2 Types of business organisations,emphasising the link between public limited companies,shareholders, limited liability and the role of the stockmarket as a vehicle for raising business finance).5.Students to undertake individual research to identifyexamples of crowdfunding for new business start-upsand their innovations (See Section 4: Learning Resourcesfurther down).Homework tipsAdd an additional section to thebusiness plan prepared in 1.5 whichidentifies how the business could usetechnology to achieve its businessobjectives: the internet business software the information required bythe business to measure itsperformance.Students continue their on-goingrecording of a glossary of key businessterms with definitions.Completion of teacher-devisedworksheets.Individual research on types ofbusiness finance.Homework tipsTeacher-prepared worksheet requiringthe students to identify the mostappropriate source of business financein different business scenarios (givingreasons for their choice).This will cover Assessment Objective 3(AO3) Apply concepts.Prepare for classroom test.
14PEARSON LCCI LEVEL 2 CERTIFICATE IN BUSINESS FUNDAMENTALS (ASE20300): TEACHER’S GUIDE1.8GlobalisationAt the completionof this section ofthe specificationstudents will be ableto:Understandthe influence ofglobalisation to abusiness.6.Using their own business plans, students identifythe financial records that will need to be kept by thebusiness. Follow this up with a teacher-led presentationon the reasons for keeping financial records.7.Students presented with some basic financial data oncosts and revenue and asked to calculate profits (NOTE:the students will not be required to perform calculationsin the examination - this task will enable the students tounderstand the need to prepare financial statements).Teacher presentation on the financial statements(statement of comprehensive income and the statementof financial position) using simplified versions of each ofthe financial statements.8.Students presented with a simplified incomplete financialstatement and are required to insert the correct financialterms into each of the financial statements (NOTE:students will not be required to complete financialcalculations in the examination).1.Students to identify their recent purchases or businessorganisations in the local economy.2.Classify the businesses on whether they are local,national or international.3.4.Tabulate the results and for each classification ofbusiness, identify how far they are engaged with the restof the world (such as products sold, supplies purchased,customer base, characteristics of workforce employed,currency exchange, communication networks - email,websites, social media).Use these results to identify the features ofglobalisation.Students continue their on-goingrecording of a glossary of key businessterms with definitions.Teacher-prepared worksheets.Classroom discussions.Making notes on video clips onglobalisation issues.
15PEARSON LCCI LEVEL 2 CERTIFICATE IN BUSINESS FUNDAMENTALS (ASE20300): TEACHER’S GUIDE5.Teacher-led discussion on current issues facing the globaleconomy (trade disputes, impact on local economy - jobs,exploitation of workers and raw materials).6.Student research on globalisation (See Section 4:Learning Resources further down).7.Class debate - the advantages and disadvantages ofglobalisation.Homework tipsComplete exam-type question relatingto the four Assessment Objectivesbased upon a teacher-devisedbusiness scenario (See Section Three:Assessment further down).Revise for a classroom-based timedassessment under examinationconditions which cover the content ofSection 1 of the specification.Suggest a one hour classroom-basedtest covering a selection of the typesof questions which form the basis ofthe external examination. (See Section3: Assessment further down).
16PEARSON LCCI LEVEL 2 CERTIFICATE IN BUSINESS FUNDAMENTALS (ASE20300): TEACHER’S GUIDE2Communication and the customerHaving completed Topic 1, students will now have a clear understanding of the internal and external business environment andthe range of business objectives which will influence the activities of an enterprise.In this topic, students will consider the importance of business communication looking particularly at the interactions betweenthe business and its customers. Students will be able to provide examples of how types of business communications relate to their own purchasingdecisions:»» Ask them to consider different ‘messages’ communicated by a range of different businesses to promote their brand.»» The students could then complete research and make presentations on aspects such as brand image and companyethos.Use the experience of students who are already engaged in the world of work to: Consider the importance of communications in a work setting Consider the types of interaction between managers and supervisors and the workforce Communications with different stakeholder groups.Students should also understand the disadvantages of the different methods of communications linking these to theireffectiveness in getting a message over to specific stakeholder groups.Focus upon one of the main stakeholder groups – the customers. It is important for students to understand the requirements ofinternal as well as external customers. Link with the role and functions of the departments covered in Topic 1. Develop an understanding of the more conventional way of considering customer service in respect of a business’s externalcustomers. Link into the function and features of customer service and how it impacts upon the operating practices of a business inrelation to:»» responding to feedback from customers»» improvements to business practices, process and products»» impact upon business performance which was covered in Topic 1.
17PEARSON LCCI LEVEL 2 CERTIFICATE IN BUSINESS FUNDAMENTALS (ASE20300): TEACHER’S GUIDESpecificcontentOutcomesSuggested teachingActivities2.1 BusinesscommunicationAt the completionof this section ofthe specificationstudents will be ableto:1.Students continue their on-goingrecording of a glossary of key businessterms with definitions.Understandthe importanceof businesscommunication andthe advantages anddisadvantages ofdifferent methodsof businesscommunication.2.Start the topic by reinforcing the main learning pointsfrom the previous topic. Students to research examplesof business literature such as promotional leaflets,websites, literature from own workplace, annual reportsand social media campaigns. Students could also beasked to collect examples of business literature beforethis topic is introduced and bring the literature to thefirst lesson on this topic. Students will be required toreview the literature with regards to message, intendedaudience, content, purpose.Teacher-led classroom discussion to identify theimportance of business communication with referenceto the specific items identified in the specification (themanagement of employees, company ethos etc.).3.Students to complete review of the literature andhighlight the importance of communications in respect ofthe specification content in 2.1.4.Working in pairs, the students are asked to considerthe most appropriate methods of communication ina variety of different scenarios. The suggestions arecompared with other pairs leading on to a teacher-ledclassroom discussion focused upon the advantagesand disadvantages of different methods of businesscommunication.5.This could be a follow-up of a short scenario in which thestudents must identify formal and informal businesscommunications. For example, a scenario could befocused upon plans for a restructuring of the businessinto different work groups or plans to relocate part of thebusiness to another area of the country.Review of business literature toidentify the features and purpose ofsuch communications.Work in pairs to identify the mainmethods of communication andidentify their respective advantagesand disadvantages.Homework tipsComplete a series of work-basedscenarios to identify informal andformal communications and thecharacteristics of each.
18PEARSON LCCI LEVEL 2 CERTIFICATE IN BUSINESS FUNDAMENTALS (ASE20300): TEACHER’S GUIDE2.2 CustomerserviceAt the completionof this section ofthe specificationstudents will be ableto:Understand theimportance ofcustomer service inmeeting businessobjectives.1.Stude
Welcome to the Teacher's Guide for Pearson LCCI Level 2 Certificate in Business Fundamentals (ASE20300). We are delighted that you are interested in teaching this new qualification in the LCCI Business suite. We have provided this free resource written by subject experts to support your delivery of the specification. It was
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