Aqa 7131 7132 SP 2023

Get help and support as and
Visit our website for information, guidance, support and resources at aqa.org.uk/7132
You can talk directly to the Business subject team a-level
E: business-studies@aqa.org.uk
T: 01483 477 863
business
AS (7131)
A-level (7132)
Specifications
For teaching from september 2023 onwards
For as exams in May/June 2024 onwards
For a-level exams in May/June 2025 onwards
Version 2.0 June 2023
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AS Business (7131) and A-level Business (7132). AS exams May/June 2024 onwards. A-level exams May/June 2025 onwards. Version 2.0
Contents
1 Introduction 5
1.1 Why choose AQA for AS and A-level Business 5
1.2 Support and resources to help you teach 5
2 Specification at a glance 8
3 Subject content 11
3.1 What is business? 11
3.2 Managers, leadership and decision making 13
3.3 Marketing management 14
3.4 Operational management 17
3.5 Financial management 19
3.6 Human resource management 21
3.7 Analysing the strategic position of a business (A-level
only) 24
3.8 Choosing strategic direction (A-level only) 27
3.9 Strategic methods: how to pursue strategies (A-level
only) 28
3.10 Managing strategic change (A-level only) 30
4 Scheme of assessment 33
4.1 Aims 33
4.2 Assessment objectives 34
4.3 Assessment weightings 35
5 General administration 37
5.1 Entries and codes 37
5.2 Overlaps with other qualifications 37
5.3 Awarding grades and reporting results 37
5.4 Re-sits and shelf life 38
5.5 Previous learning and prerequisites 38
5.6 Access to assessment: diversity and inclusion 38
5.7 Working with AQA for the first time 39
5.8 Private candidates 39
6 Annex: quantitative skills in business 41
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Are you using the latest version of this specification?
• You will always find the most up-to-date version of this specification on our website at
• We will write to you if there are significant changes to the specification.
4 Visit for the most up-to-date specification, resources, support and administration
1 Introduction
1.1 Why choose AQA for AS and A-level Business
Dynamic and engaging content
We have a long history and proven track record of providing high quality, successful Business
qualifications that we have continued to improve through teacher feedback, operational experience
and by working closely with universities and the wider academic community. By taking a holistic
approach to the subject, we demonstrate the interrelated nature of business using business
models, theories and techniques to support analysis of contemporary business issues and
situations to provide a dynamic specification. Our content is designed to engage students through
topics and issues that are relevant in today’s society – they will study key contemporary
developments such as digital technology and business ethics, and globalisation is covered
throughout the topics.
Real life skills

Students will develop the knowledge and skills needed to analyse data, think critically about issues
and make informed decisions – all skills that are needed for further study and employment.
Assessment success
Our question papers use a variety of assessment styles including multiple choice, short answer,
data response, essay and case studies so that students feel more confident and engage with the
questions. Real life case studies will be used wherever possible to make it easier for students to
relate to and apply their knowledge and skills developed throughout the course.
Teach AS and A-level together

Our AS is fully co-teachable with the first year of A-level, helping you with resourcing and
timetabling and providing students with the option to continue studying the full A-level.
Comprehensive support
We offer a comprehensive range of support and resources to support your planning, teaching and
assessment of our specifications through direct contact with our business subject team, our
website, teacher CPD courses and work with publishers. At AQA, we help your students get the
results they deserve, from the exam board you can trust. Learn more about all our Business
qualifications at aqa.org.uk/business
1.2 Support and resources to help you teach

We know that support and resources are vital for your teaching and that you have limited time to
find or develop good quality materials. So we’ve worked with experienced teachers to provide you
with a range of resources that will help you confidently plan, teach and prepare for exams.
Teaching resources
We have too many Business resources to list here so visit aqa.org.uk/7132 to see them all. They
include:
• flexible sample schemes of work to help you plan for course delivery in your own way
• individual lesson plans on specific topic areas to assist you in providing continuity and
progression in teaching
• student textbooks and e-learning materials that have been scrutinised by AQA
• training courses to help you deliver AQA Business qualifications
• subject expertise courses for all teachers, from newly-qualified teachers who are just getting
started to experienced teachers looking for fresh inspiration.
Preparing for exams

Visit aqa.org.uk/7707 for everything you need to prepare for our exams, including:
• past papers, mark schemes and examiners’ reports
• sample papers and mark schemes for new courses
• example student answers with examiner commentaries.
Analyse your students' results with Enhanced Results Analysis (ERA)

Find out which questions were the most challenging, how the results compare to previous years
and where your students need to improve. ERA, our free online results analysis tool, will help you
see where to focus your teaching. Register at aqa.org.uk/era
For information about results, including maintaining standards over time, grade boundaries and our
post-results services, visit aqa.org.uk/results
Keep your skills up to date with professional development

Wherever you are in your career, there’s always something new to learn. As well as subject-
specific training, we offer a range of courses to help boost your skills:
• improve your teaching skills in areas including differentiation, teaching literacy and meeting
Ofsted requirements
• help you prepare for a new role with our leadership and management courses.
You can attend a course at venues around the country, in your school or online – whatever suits
your needs and availability. Find out more at coursesandevents.aqa.org.uk
Get help and support

Visit our website for information, guidance, support and resources at aqa.org.uk/7201
You can talk directly to the Business subject team:
T: 01483 477 862
2 Specification at a glance
Subject content
1 What is business? (page 11)
2 Managers, leadership and decision making (page 13)
3 Marketing management (page 14)
4 Operational management (page 17)
5 Financial management (page 19)
6 Human resource management (page 21)
7 Analysing the strategic position of a business (A-level only) (page 24)
8 Choosing strategic direction (A-level only) (page 27)
9 Strategic methods: how to pursue strategies (A-level only) (page 28)
10 Managing strategic change (A-level only) (page 30)
AS
Assessments
Paper 1: Business 1
What's assessed
1–6 above
Assessed
• written exam: 1 hour 30 minutes
• 80 marks in total
• 50% of AS
Questions
Three compulsory sections:
• Section A has 10 multiple choice questions (MCQs) worth 10 marks.
• Section B has short answer questions worth approximately 20 marks.
• Section C has two data response stimuli with questions worth approximately 25 marks.
Paper 2: Business 2
What's assessed
1–6 above
Assessed
• written exam: 1 hour 30 minutes
• 50% of AS
Questions
One compulsory case study consisting of approximately seven questions.
Before the qualification can be awarded, students must undertake both the assessments.
A-level
Assessments
Paper 1: Business 1
What's assessed
All content above
Assessed
• written exam: 2 hours
• 33.3% of A-level
Questions
Three compulsory sections:
• Section A has 15 multiple choice questions (MCQs) worth 15 marks.
• Section B has short answer questions worth 35 marks.
• Sections C and D have two essay questions (choice of one from two and one from two)
worth 25 marks each.
Paper 2: Business 2
What's assessed
All content above
Assessed
Questions
Three data response compulsory questions worth approximately 33 marks each and made up of
three or four part questions
Paper 3: Business 3
What's assessed
All content above
Assessed
Questions
One compulsory case study followed by approximately six questions
Before the qualification can be awarded, students must undertake all the assessments.
3 Subject content
Students of this course should study business in a variety of contexts (eg large/small, UK focused/
global, service/manufacturing) and consider:
• the importance of the context of business in relation to decision making
• the interrelated nature of business activities and how they affect competitiveness
• the competitive environment and the markets in which businesses operate
• the influences on functional decisions and plans including ethical and environmental issues
• the factors that might determine whether a decision is successful eg the quality of data and
the degree of uncertainty
• how technology is changing the way decisions are made and how businesses operate and
compete
• the impact on stakeholders of functional decisions and their response to such decisions
• use of non-quantitative and quantitative data in decision making (including the interpretation
of index numbers and calculations such as ratios and percentages). See Annex: Quantitative
skills in Business (page 41)
Strategic decision making (A-level only)

The study of strategic decision making should build on the study of decision making in the
functional areas.
Students should consider:
• the impact of technology on strategic decision making
• the influences of Corporate Social Responsibility, ethical and environmental issues on
strategic decisions
• the difficulties in forecasting future trends
• the importance of assessing feasibility and risk when making strategic decisions
• the impact on stakeholders of strategic decisions and their response to such decisions.
The topics lend themselves to studying and engaging with the business world. The specification
and assessment should encourage students to follow business developments and think critically
about contemporary business issues. Most of the assessment material is based on real business
situations. By examining and thinking critically about real business situations as they study the
subject, students will gain an insight into different contexts which will help them to understand the
key issues in any situation and compare and contrast this with other situations and apply their
understanding.
3.1 What is business?

3.1.1 Understanding the nature and purpose of business
Content Additional information
Why businesses exist Business objectives such as profit, growth,

survival, cash flow, social and ethical objectives
The relationship between mission and

objectives
Why businesses set objectives
The measurement and importance of profit The measurement of profit should include:
• revenue (also turnover and sales)
• fixed costs
• variable costs
• total costs.
3.1.2 Understanding different business forms

Reasons for choosing different forms of Different forms of business include:

business and for changing business form
• sole traders
• private limited companies and public
limited companies
• private sector and public sector
organisations
• non-profit organisations
• social enterprises
Issues with different forms of business include:
• unlimited and limited liability
• ordinary share capital
• market capitalisation
• dividends.
The role of shareholders and why they invest
Influences on share price and the significance

of share price changes
The effects of ownership on mission and

objectives
3.1.3 Understanding that businesses operate within an external

environment
How the external environment can affect costs Factors influencing costs and demand to include
and demand the effect of:
• competition
• market conditions
• incomes
• interest rates
• demographic factors
• environmental issues and fair trade.
3.2 Managers, leadership and decision making

3.2.1 Understanding management, leadership and decision making
The distinction between management and

leadership
Types of management and leadership styles Leadership styles should include:

and influences on these
• autocratic
• paternalistic
• democratic
• laissez-faire
Theories of management and leadership should
include the Tannenbaum Schmidt continuum.
The effectiveness of different styles of

management and leadership
3.2.2 Understanding management decision making
The value of decision making based on data Scientific decision making should include
(scientific decision making) and on intuition understanding and interpreting decision trees
and calculating expected value and net gains.
Decision making to include an understanding of:
• risks
• rewards
• uncertainty
• opportunity cost
• the use and value of decision trees in
decision making.
Influences on decision making Influences on decision making to include:

• mission
• objectives
• ethics
• the external environment including
competition
• resource constraints.
3.2.3 Understanding the role and importance of stakeholders

The need to consider stakeholder needs when Stakeholder mapping: stakeholder power and
making decisions interest
Stakeholder needs and the possible overlap

and conflict of these needs
How to manage the relationship with different Managing the relationship with different
stakeholders stakeholders includes communication and
consultation.
3.3 Marketing management

Students should consider the following throughout this section of the specification:
• how developments in technology are affecting marketing decision making and activities (eg
digital marketing and the use of social media, relationship marketing and dynamic pricing)
• ethical and environmental influences on marketing decisions
• market conditions and competition
• how marketing decisions help improve competitiveness
• the interrelationship between marketing decisions and other functions.
3.3.1 Setting marketing objectives

The value of setting marketing objectives Marketing objectives include:

• sales volume and sales value
• market size
• market and sales growth
• market share
• brand loyalty.
3.3.2 Understanding markets and customers

The value of primary and secondary marketing Marketing research should include qualitative
research and quantitative data.
You should be able to calculate market and
sales growth, market share and size.
The value of sampling Sampling methods should include:

• random
• stratified
• quota.
The interpretation of marketing data Interpretation of marketing data should include:

• positive and negative correlation and an
understanding of the strength of the
relationship
• understanding the concept of confidence
intervals
• understanding extrapolation.
The interpretation of price and income elasticity Students should be able to interpret price and
of demand data income elasticity of demand data and be able
to analyse the impact of changes in price and
income on revenue (they do not need to be
able to calculate these).
The value of the concepts of price and income

elasticity of demand to marketing decision
makers
The use of data in marketing decision making

and planning
3.3.3 Making marketing decisions: segmentation, targeting,
positioning
The process and value of segmentation, Segmentation methods include:

targeting and positioning
• demographic
• geographic
• income
• behavioural segmentation.
Influences on choosing a target market and Targeting may include niche and mass
positioning marketing.
Positioning should include market mapping.
3.3.4 Making marketing decisions: using the marketing mix

The elements of the marketing mix (7Ps)
The influences on and effects of changes in the The marketing mix should be considered for
elements of the marketing mix goods and services, both industrial and
consumer.
Product decisions Product decisions should include:

• the value of product portfolio analysis and
the Boston Matrix
• the value of the product life cycle model
including extension strategies
• influences on and the value of new
product development.
Pricing decisions Pricing decisions should include penetration

and price skimming.
Decisions about the promotional mix Promotional decisions should include:

• the value of branding
• social media
• viral marketing.
Distribution (place) decisions Distribution decisions should include multi-

channel distribution.
Decisions relating to other elements of the

marketing mix: people, process and physical
environment
The importance of and influences on an Influences on an integrated marketing mix

integrated marketing mix include:
• the position in the product life cycle
• the Boston Matrix
• the type of product
• marketing objectives
• the target market
• competition
• positioning.
Understanding the value of digital marketing

and e-commerce
3.4 Operational management

• how developments in technology are affecting decision making and activities in operations
(eg more online businesses, better links with customers, suppliers, inventory control,
automation and robotics)
• ethical and environmental influences on operations decisions
• how decisions in operations improve the competitiveness of a business
• the interrelationship between operational decisions and other functions.
3.4.1 Setting operational objectives

The value of setting operational objectives Operational objectives include:

• costs
• quality
• speed of response
• flexibility
• environmental objectives
• added value.
3.4.2 Analysing operational performance

The interpretation, calculation and use of Students should be able to calculate:

operations data in operational decision making
• labour productivity
and planning
• unit costs (average costs)
• capacity
• capacity utilisation.
3.4.3 Making operational decisions to improve performance: increasing

efficiency and productivity
The importance of capacity The importance of capacity should include how

to utilise capacity efficiently.
The importance of efficiency and labour The importance of efficiency and labour should
productivity include:
• how to increase efficiency and labour
productivity
• difficulties increasing efficiency and labour
productivity.
The benefits and difficulties of lean production Lean production should include 'Just in Time'
operations vs 'Just in Case'.
How to choose the optimal mix of resources The mix of resources should include an
understanding of labour and capital intensive
processes.
How to use technology to improve operational

efficiency
3.4.4 Making operational decisions to improve performance: improving

quality
Methods of improving quality Methods of improving quality should include

quality assurance vs quality control.
The benefits and difficulties of improving quality
The consequences of poor quality
3.4.5 Making operational decisions to improve performance: managing

inventory and supply chains
How to manage supply to match demand and Ways of matching supply to demand include:
the value of doing so
• outsourcing
• use of temporary and part time employees
• producing to order.
Influences on the amount of inventory held Inventory control should include:

• interpreting inventory control charts
• lead time
• re-order levels
• buffer level of inventory
• re-order quantities.
Influences on the choice of suppliers
How to manage the supply chain effectively and

efficiently and the value of this
The value of outsourcing
3.5 Financial management

• how developments in technology are affecting financial decision making and activities (eg
crowd funding)
• ethical and environmental influences on financial decisions
• how decisions in finance improve the competitiveness of the business
• the interrelationship between financial decisions and other functions.
3.5.1 Setting financial objectives

The value of setting financial objectives Financial objectives to include:

• the concept of a return on investment
• revenue, costs and profit objectives
• cash flow objectives.
The distinction between cash flow and profit
The distinction between gross profit, operating

profit and profit for the year
3.5.2 Analysing financial performance

How to construct and analyse budgets and Analysing budgets should include variance
cash flow forecasts analysis and adverse and favourable variances.
The value of budgeting
How to construct and interpret break-even Break-even analysis should include:

charts
• break-even output
• margin of safety
• contribution per unit
• total contribution.
How to calculate and illustrate on a break-even

chart the effects of changes in price, output and
cost
The value of break-even analysis
How to analyse profitability Analysing profitability margins should include

the following ratio analysis:
• gross profit
• profit from operations
• profit for the year.
How to analyse timings of cash inflows and Analysing timings of cash flow should include an
outflows understanding of payables and receivables.
The use of data for financial decision making

and planning
3.5.3 Making financial decisions: sources of finance

Internal and external sources of finance Sources of finance should include:

• debt factoring
• overdrafts
• retained profits
• share capital
• loans
• venture capital
• crowd funding.
Advantages and disadvantages of different

sources of finance for short- and long-term uses
3.5.4 Making financial decisions: improving cash flow and profits

Methods of improving cash flow Students should be able to assess ways of

improving cash flow.
Methods of improving profits and profitability Students should be able to assess ways of
improving profits and profitability.
Difficulties improving cash flow and profit
3.6 Human resource management

• how developments in technology are affecting decision making and activities in relation to
human resources (eg changing the nature of work, the skills that are required and ways of
working such as remote working)
• ethical and environmental influences on human resources decisions
• market conditions (including the labour market) and competition
• how human resource decisions help improve the competitiveness of a business
• the interrelationship between human resource decisions and other functions.
3.6.1 Setting human resource objectives
The value of setting human resource objectives Human resource objectives include:
• employee engagement
• talent development
• training
• diversity
• alignment of employee and employer
values
• number, skills and location of employees.
Methods of achieving human resource Methods should include soft and hard human
objectives resource management (HRM) approaches.
3.6.2 Analysing human resource performance

Calculating and interpreting human resource Students should be able to calculate and
data interpret:
• labour turnover
• labour productivity
• employee costs as percentage of turnover
• labour cost per unit.
The use of data for human resource decision

making and planning
3.6.3 Making human resource decisions: improving organisational

design and managing the human resource flow
Models of organisational structure Organisational structures to include:

• functional
• product-based
• regional
• matrix structure.
Influences on organisational design Decisions relating to organisational design

include:
• authority
• span
• hierarchy
• delegation
• centralisation and decentralisation.
The value of changing organisational design
How managing the human resource flow helps Human resource flow to include:
meet human resource objectives
• human resource plan
• recruitment
• training
• redeployment
• redundancy.
3.6.4 Making human resource decisions: improving motivation and

engagement
The benefits of motivated and engaged Theories of motivation should include Taylor,
employees Maslow and Herzberg.
How to improve employee engagement and Financial methods of motivation should include:
motivation
• piece rate
• commission
• salary schemes
• performance-related pay.
Non-financial methods of motivation should
include:
• empowerment
• team working
• flexible working
• job enrichment
• job rotation.
Influences on the choice and assessment of the

effectiveness of financial and non-financial
methods of motivating employees
3.6.5 Making human resource decisions: improving employer-
employee relations
Influences on the extent and methods of Employee representation methods to include

employee involvement in decision making trade unions and works councils.
How to manage and improve employer-

employee communications and relations
Value of good employer-employee relations
3.7 Analysing the strategic position of a business (A-level

only)
3.7.1 Mission, corporate objectives, functional objectives and strategy
Influences on the mission of a business
Internal and external influences on corporate Influences on corporate objectives should

objectives and decisions include the pressures for short termism,
business ownership, the external and internal
environment.
The links between mission, corporate objectives

and strategy
The distinction between strategy and tactics
The impact of strategic decision making on

functional decision making
Internal and external influences on functional

objectives and decisions
The value of SWOT analysis
3.7.2 Analysing the existing internal position of a business to assess

strengths and weaknesses: financial ratio analysis
How to assess the financial performance of a Financial ratio analysis to include:

business using balance sheets, income
• profitability (return on capital employed)
statements and financial ratios
• liquidity (current ratio)
• gearing
• efficiency ratios: payables days,
receivables days, inventory turnover.
The value of financial ratios when assessing Data may be analysed over time or in
performance comparison with other businesses.
3.7.3 Analysing the existing internal position of a business to assess

strengths and weaknesses: overall performance
How to analyse data other than financial Data other than financial statements should
statements to assess the strengths and include operations, human resource and
weaknesses of a business marketing data.
Data may be analysed over time or in
comparison with other businesses.
The importance of core competences
Assessing short- and long-term performance
The value of different measures of assessing Methods of assessing overall business

business performance performance to include Elkington’s Triple
Bottom Line (Profit, People, Planet).
3.7.4 Analysing the external environment to assess opportunities and

threats: political and legal change
The impact of changes in the political and legal The political and legal environment should
environment on strategic and functional include a broad understanding of the scope and
decision making effects of laws related to competition, the labour
market and environmental legislation.
The impact of government policy related to
enterprise, the role of regulators, infrastructure,
the environment and international trade.
threats: economic change
The impact of changes in the UK and the global Economic factors to include:
economic environment on strategic and
• GDP
functional decision making
• taxation
• exchange rates
• inflation
• fiscal and monetary policy
• more open trade v protectionism.
Students should be able to understand
economic data, interpret changes in economic
data for the UK and globally, and consider the
implications of such changes for business.

threats: social and technological
The impact of the social and technological Social changes to include demographic
environment on strategic and functional changes and population movements such as:
decision making
• migration
• changes in consumer lifestyle and buying
behaviour
• the growth of online businesses.
The social environment to include Corporate
Social Responsibility (CSR) and:
• the reasons for and against (CSR)
• the difference between the stakeholder v
shareholder concept
• Carroll’s Corporate Social Responsibility
pyramid.
Technological change should include the impact
of technological change on functional areas and
strategy.
The pressures for socially responsible

behaviour

threats: the competitive environment
Porter’s five forces, how and why these might An understanding of the five forces to include:
change, and the implications of these forces for
• entry threat (barriers to entry)
strategic and functional decision making and
profits • buyer power
• supplier power
• rivalry
• substitute threat.
Students should consider how the five forces
shape competitive strategy.
3.7.8 Analysing strategic options: investment appraisal

Financial methods of assessing an investment Investment appraisal should include the

calculation and interpretation of payback,
average rate of return and net present value.
Factors influencing investment decisions Factors to include investment criteria, non-

financial factors, risk and uncertainty.
3.8 Choosing strategic direction (A-level only)

3.8.1 Strategic direction: choosing which markets to compete in and
what products to offer
Factors influencing which markets to compete Strategic direction to include the Ansoff matrix
in and which products to offer and value of:
• market penetration
• market development
• new product development
• diversification.
The reasons for choosing and value of different

options for strategic direction
3.8.2 Strategic positioning: choosing how to compete
How to compete in terms of benefits and price Strategic positioning to include Porter’s low
cost, differentiation and focus strategies.
Influences on the choice of a positioning

strategy
The value of different strategic positioning

strategies
The benefits of having a competitive advantage
The difficulties of maintaining a competitive

advantage
3.9 Strategic methods: how to pursue strategies (A-level

only)
3.9.1 Assessing a change in scale
The reasons why businesses grow or retrench Types of growth to include organic and external
The difference between organic and external

growth
How to manage issues caused by growth and Issues with growth should include:
retrenchment
• economies of scale (including technical,
purchasing and managerial)
• economies of scope
• diseconomies of scale
• synergy
• overtrading.
The impact of growth or retrenchment on the

functional areas of the business
Assessing methods and types of growth Methods of growth to include mergers,

takeovers, ventures, franchising
Types of growth to include vertical (backward
and forward), horizontal and conglomerate
integration
3.9.2 Assessing innovation

The pressures for innovation Types of innovation should include product and
process innovation.
The value of innovation
The ways of becoming an innovative Ways of becoming innovative include:

organisation
• Kaizen
• research and development
• intrapreneurship
• benchmarking.
How to protect innovation and intellectual Ways of protecting intellectual property include
property patents and copyrights.
The impact of an innovation strategy on the

functional areas of the business
3.9.3 Assessing globalisation and internationalisation

Reasons for greater globalisation of business

The importance of globalisation for business
The importance of emerging economies for
business
Reasons for targeting, operating in and trading Methods of entering international markets
with international markets include:
• export
• licensing
• alliances
• direct investment.
Factors influencing the attractiveness of

international markets
Reasons for producing more and sourcing more Decisions regarding producing overseas
resources abroad include off-shoring and re-shoring.
Ways of entering international markets and Targeting overseas markets may include being
value of different methods a multinational.
Influences on buying, selling and producing

abroad
Managing international business Managing international business should

include:
• pressures for local responsiveness
• pressures for cost reduction.
3.9.4 Assessing greater use of digital technology

The pressures to adopt digital technology Digital technology should include automation, e-
commerce, big data and data mining.
The value of digital technology
3.10 Managing strategic change (A-level only)

3.10.1 Managing change
Causes of and pressures for change Types of change include:

• internal change
• external change
• incremental change
• disruptive change.
Managing change should include:
• Lewin’s force field analysis.
The value of change
The value of a flexible organisation Flexible organisations include:

• restructuring
• delayering
• flexible employment contracts
• organic structures v mechanistic
• knowledge and information management.
The value of managing information and

knowledge
Barriers to change Kotter and Schlesinger’s four reasons for

resistance to change
How to overcome barriers to change Kotter and Schlesinger's six ways of overcoming
resistance to change
3.10.2 Managing organisational culture

The importance of organisational culture Cultural models should include Handy’s task
culture, role culture, power culture and person
culture.
The influences on organisational culture
The reasons for and problems of changing

organisational culture
3.10.3 Managing strategic implementation

How to implement strategy effectively Implementing strategy effectively to include:

• the value of leadership in strategic
implementation
• the value of communications in strategic
implementation.
The importance of organisational structure in

strategic implementation
The value of network analysis in strategic Network analysis to include:

implementation
• understanding and interpreting network
diagrams
• amendment of network diagrams
• identifying the critical path and total float.
3.10.4 Problems with strategy and why strategies fail

Difficulties of strategic decision making and

implementing strategy
Planned v emergent strategy
Reasons for strategic drift
Evaluating strategic performance
The value of strategic planning
The value of contingency planning and crisis

management
4 Scheme of assessment
Find past papers and mark schemes, and specimen papers for new courses, on our website at
aqa.org.uk/pastpapers
The AS specification is designed to be taken over one or two years with all assessments taken at
the end of the course. The A-level specification is designed to be taken over two years with all
assessments taken at the end of the course.
Assessments and certification for the AS specification are available for the first time in May/June
2024 and then every May/June for the life of the specification.
Assessments and certification for the A-level specification are available for the first time in May/
June 2025 and then every May/June for the life of the specification.
These are linear qualifications. In order to achieve the award, students must complete all exams in
May/June in a single year. All assessments must be taken in the same series.
All materials are available in English only.
AS
Our assessment in AS Business includes questions that allow students to demonstrate their ability
to:
• draw together their knowledge, skills and understanding from across the full course of study
• provide extended responses.
For example the final question in Paper 2 is an extended response question which requires a
student to draw together different areas of the specification. An extended response is evidence
generated by a student which is of sufficient length to allow that student to demonstrate the ability
to construct and develop a sustained line of reasoning which is coherent, relevant, substantiated
and logically structured.
A-level
Our assessment in A-level Business includes questions that allow students to demonstrate their
ability to:
• draw together their knowledge, skills and understanding from across the full course of study
• provide extended responses.
For example questions in Section C of Paper 1 are extended response questions which require a
student to draw together different areas of the specification. An extended response is evidence
generated by a student which is of sufficient length to allow that student to demonstrate the ability
to construct and develop a sustained line of reasoning which is coherent, relevant, substantiated
and logically structured.
4.1 Aims
Courses based on these specifications should encourage students to:
• develop an enthusiasm for studying business
• gain holistic understanding of business in a range of contexts
• develop a critical understanding of organisations and their ability to meet society’s needs and
wants
• understand that business behaviour can be studied from a range of perspectives
• generate enterprising and creative approaches to business opportunities, problems and
issues
• be aware of the ethical dilemmas and responsibilities faced by organisations and individuals
• acquire a range of relevant business and generic skills, including decision making, problem
solving, the challenging of assumptions and critical analysis
• apply numerical skills in a range of business contexts.
4.2 Assessment objectives

Assessment objectives (AOs) are set by Ofqual and are the same across all AS and A-level
Business specifications and all exam boards.
The exams will measure how well students have achieved the following assessment objectives.
• AO1: Demonstrate knowledge of terms, concepts, theories, methods and models to show an
understanding of how individuals and organisations are affected by and respond to business
issues
• AO2: Apply knowledge and understanding to various business contexts to show how
individuals and organisations are affected by and respond to issues
• AO3: Analyse issues within business, showing an understanding of the impact on individuals
and organisations of external and internal influences
• AO4: Evaluate quantitative and qualitative information to make informed judgements and
propose evidence-based solutions to business issues.
Weighting of assessment objectives for AS Business

Assessment objectives (AOs) Component Overall weighting
weightings (approx (approx %)
%)
Paper 1 Paper 2
AO1 17-20 13-15 31-34
AO2 13-15 10-13 24-27
AO3 9-11 11-13 21-23
AO4 6-9 11-14 19-21
Overall weighting of components 50 50 100
Weighting of assessment objectives for A-level Business

Assessment objectives (AOs) Component weightings Overall weighting
(approx %) (approx %)
Paper 1 Paper 2 Paper 3
AO1 9–11 6–8 5–8 22–25
AO2 9–11 8–11 5–7 24–27
AO3 5–8 8–11 9–12 25–28
AO4 5–8 6–9 9–12 23–26
Overall weighting of components 33.3 33.3 33.3 100
4.3 Assessment weightings

The marks awarded on the papers will be scaled to meet the weighting of the components.
Students' final marks will be calculated by adding together the scaled marks for each component.
Grade boundaries will be set using this total scaled mark. The scaling and total scaled marks are
shown in the table below.
AS
Component Maximum raw mark Scaling factor Maximum scaled mark
Paper 1 80 x1 80
Paper 2 80 x1 80
Total scaled mark 160
A-level
Component Maximum raw mark Scaling factor Maximum scaled mark
Paper 1 100 x1 100
Paper 2 100 x1 100
Paper 3 100 x1 100
Total scaled mark 300
5 General administration
You can find information about all aspects of administration, as well as all the forms you need, at
aqa.org.uk/examsadmin
5.1 Entries and codes

Students only need to make one entry for each qualification – this will cover all the question papers
and certification.
Every specification is given a national discount (classification) code by the Department for
Education (DfE), which indicates its subject area.
If a student takes two specifications with the same discount code, Further and Higher Education
providers are likely to take the view that they have only achieved one of the two qualifications.
Please check this before your students start their course.
Qualification title AQA DfE

entry discount
code code
AQA Advanced Subsidiary GCE in Business 7131 3210
(post-16)
, AA3
(KS4)
AQA Advanced Level GCE in Business 7132 3210
These specifications comply with Ofqual’s:

• General conditions of recognition that apply to all regulated qualifications
• GCE qualification level conditions that apply to all GCEs
• GCE subject level conditions that apply to all GCEs in this subject
• all relevant regulatory documents.
Ofqual has accredited these specifications. The qualification accreditation number (QAN) for the
AS is 601/4337/X . The QAN for the A-level is 601/4336/8 .
5.2 Overlaps with other qualifications

There is overlapping content in the AS and A-level Business specifications. This helps you teach
the AS and A-level together.
5.3 Awarding grades and reporting results

The A-level qualification will be graded on a six-point scale: A*, A, B, C, D and E.
Students who fail to reach the minimum standard for grade E will be recorded as U (unclassified)
and will not receive a qualification certificate.
5.4 Re-sits and shelf life
Students can re-sit these qualifications as many times as they wish, within the shelf life of the
qualifications.
5.5 Previous learning and prerequisites

There are no previous learning requirements. Any requirements for entry to a course based on
these specifications are at the discretion of schools and colleges.
5.6 Access to assessment: diversity and inclusion

General qualifications are designed to prepare students for a wide range of occupations and
further study. Therefore our qualifications must assess a wide range of competences.
The subject criteria have been assessed to see if any of the skills or knowledge required present
any possible difficulty to any students, whatever their ethnic background, religion, sex, age,
disability or sexuality. If any difficulties were encountered, the criteria were reviewed again to make
sure that tests of specific competences were only included if they were important to the subject.
As members of the Joint Council for Qualifications (JCQ) we participate in the production of the
JCQ document Access Arrangements and Reasonable Adjustments: General and Vocational
qualifications. We follow these guidelines when assessing the needs of individual students who
may require an access arrangement or reasonable adjustment. This document is published on the
JCQ website at jcq.org.uk
Students with disabilities and special needs

We can make arrangements for disabled students and students with special needs to help them
access the assessments, as long as the competences being tested are not changed. Access
arrangements must be agreed before the assessment. For example, a Braille paper would be a
reasonable adjustment for a Braille reader but not for a student who does not read Braille.
We are required by the Equality Act 2010 to make reasonable adjustments to remove or lessen
any disadvantage that affects a disabled student.
If you have students who need access arrangements or reasonable adjustments, you can apply
using the Access arrangements online service at aqa.org.uk/eaqa
Special consideration
We can give special consideration to students who have been disadvantaged at the time of the
assessment through no fault of their own – for example a temporary illness, injury or serious
problem such as the death of a relative. We can only do this after the assessment.
Your exams officer should apply online for special consideration at aqa.org.uk/eaqa
For more information and advice about access arrangements, reasonable adjustments and special
consideration please see aqa.org.uk/access or email accessarrangementsqueries@aqa.org.uk
5.7 Working with AQA for the first time

If your school or college has not previously offered any AQA specification, you need to register as
an AQA centre to offer our specifications to your students. Find out how at aqa.org.uk/
becomeacentre
If your school or college is new to these specifications, please let us know by completing an
Intention to enter form. The easiest way to do this is via e-AQA at aqa.org.uk/eaqa
5.8 Private candidates

A private candidate is someone who enters for exams through an AQA-approved school or college
but is not enrolled as a student there.
If you are a private candidate you may be self-taught, home-schooled or have private tuition, either
with a tutor or through a distance-learning organisation. You must be based in the UK.
If you have any queries as a private candidate, you can:
• speak to the exams officer at the school or college where you intend to take your exams
• visit our website at aqa.org.uk/examsadmin
• email: privatecandidates@aqa.org.uk
6 Annex: quantitative skills in

business
In order to be able to develop their skills, knowledge and understanding in business, students need
to have acquired competence in the quantitative skills that are relevant to the subject content and
which are applied in the context of a business A-level, including:
• calculate, use and understand ratios, averages and fractions
• calculate, use and understand percentages and percentage changes
• construct and interpret a range of standard graphical forms
• interpret index numbers
• calculate cost, revenue, profit and break-even
• calculate investment appraisal outcomes and interpret results
• interpret values of price and income elasticity of demand
• use and interpret quantitative and non-quantitative information in order to make
decisions
• interpret, apply and analyse information in written, graphical and numerical forms.
Quantitative skills not in bold do not form part of the AS core content requirement; however, an
exam board may include them in their AS specifications.
The assessment of quantitative skills will include at least level 2 mathematical skills as a minimum
of 10% of the overall AS marks and as a minimum of 10% of the overall A-level marks.
These quantitative skills may be assessed across the assessment objectives.
Get help and support
Visit our website for information, guidance, support and resources at
You can talk directly to the Business subject team:
T: 01483 477 862
aqa.org.uk
Copyright © 2023 AQA and its licensors. All rights reserved.
AQA retains the copyright on all its publications, including the specifications. However, schools and colleges registered with AQA are
permitted to copy material from this specification for their own internal use.
AQA Education (AQA) is a registered charity (number 1073334) and a company limited by guarantee registered in England and Wales
(company number 3644723). Our registered address is AQA, Devas Street, Manchester M15 6EX.

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6 Annex: quantitative skills in business 41

Real life skills

Teach AS and A-level together

1.2 Support and resources to help you teach

Preparing for exams

Analyse your students' results with Enhanced Results Analysis (ERA)

Keep your skills up to date with professional development

Get help and support

Strategic decision making (A-level only)

3.1 What is business?

Why businesses exist Business objectives such as profit, growth,

The relationship between mission and

Why businesses set objectives

3.1.2 Understanding different business forms

Reasons for choosing different forms of Different forms of business include:

The role of shareholders and why they invest

Influences on share price and the significance

The effects of ownership on mission and

3.1.3 Understanding that businesses operate within an external

3.2 Managers, leadership and decision making

The distinction between management and

Types of management and leadership styles Leadership styles should include:

The effectiveness of different styles of

Influences on decision making Influences on decision making to include:

3.2.3 Understanding the role and importance of stakeholders

Stakeholder needs and the possible overlap

3.3 Marketing management

3.3.1 Setting marketing objectives

The value of setting marketing objectives Marketing objectives include:

3.3.2 Understanding markets and customers

The value of sampling Sampling methods should include:

The interpretation of marketing data Interpretation of marketing data should include:

The value of the concepts of price and income

The use of data in marketing decision making

The process and value of segmentation, Segmentation methods include:

3.3.4 Making marketing decisions: using the marketing mix

The elements of the marketing mix (7Ps)

Product decisions Product decisions should include:

Pricing decisions Pricing decisions should include penetration

Decisions about the promotional mix Promotional decisions should include:

Distribution (place) decisions Distribution decisions should include multi-

Decisions relating to other elements of the

Content Additional information

The importance of and influences on an Influences on an integrated marketing mix

Understanding the value of digital marketing

3.4 Operational management

3.4.1 Setting operational objectives

The value of setting operational objectives Operational objectives include:

3.4.2 Analysing operational performance

The interpretation, calculation and use of Students should be able to calculate:

3.4.3 Making operational decisions to improve performance: increasing

The importance of capacity The importance of capacity should include how

How to use technology to improve operational

3.4.4 Making operational decisions to improve performance: improving

Methods of improving quality Methods of improving quality should include

The benefits and difficulties of improving quality

The consequences of poor quality