B120An Introduction to Business StudiesDay School 2

Phillippa Seaward

Safety and practicalities

• Health and safety– Register– Fire

• Breaks– Food and drink– Time of breaks

• Comfort – flexible to suit your needs

Agenda

• Introduction• Experiences TMA01 & TMA02 + feedback• Looking at Finance & Accounting• Lunch• Looking at Marketing• Questions & Close

Experiences - TMA01 & TMA02

Feedback on TMAs

• Referencing– When you use a course concept reference it in the text

• Word count– Take care not to exceed the word limit (up to +/-10% is acceptable)

• Read the question– Ensure that you have answered all parts of the question

• Use of course material– Demonstrate you have read, understood and can apply course concepts

• Allocating time / words– Look at the weighting of the marks and what you are asked to do

• Use diagrams– A picture really is worth many words when you are writing an assignment

B120 Day School 2

Overview of Book 3

Book 3 Aims and Objectives

• Give you a good grounding in the fundamental terms, concepts and concerns of accounting and finance in business

• Raise your awareness of the relevance of accounting and finance to decision making in everyday business practice

• Describe the context in which accounting has developed and now operates

• Provide an understanding of the key components of accounting in a business, such as the basic accounting statements and budgets

• Begin to develop your knowledge of how spreadsheets are used in accounting and finance

Book 3 Sessions

1. What is accounting?

2. Businesses and cash accounting

3. The accounting statements

4. The accounting world

5. Budgets and the budgeting process

Key Book 3 Ideas and Concepts

• One of the most basic accounting services involves keeping a record of all financial transactions and then preparing financial statements such as balance sheets, income and cash flow statements.

• Accounting refers to the practice of tracking a business's income and expenses and using those figures to evaluate its financial status.

• But the business of accountants goes beyond just basic number-crunching. Accountants include a number of other services: business consulting, business valuation, and financial planning, just to name a few.

Characteristics of good financial information

• Relevance• Reliability• Comparability• Understandability• Timeliness• Materiality

Accounting statements

• Income statements are a standard financial document that summarises a company's revenue and expenses for a specific period of time, usually one quarter of a fiscal year and the entire fiscal year

• Balance sheet is a financial statement at a given point in time. It provides a snapshot summary of what a business owns or is owed - assets - and what it owes - liabilities - at a particular date

• Cash flow statement is a financial statement which reports the inflows and outflows of cash for a particular period for the operating, investing and financing activities undertaken by a company

Finance Quiz

• A short quiz to help you understand the purpose of different accounting statements

• Split into small groups

• Discuss and answer the questions

Budgets and the budgeting process

• A budget usually requires considerable effort and can be seen as a financial plan for the new financial year which contribute expected revenues and expenses to the final budget.

• If the actual numbers delivered through the financial year turn out to be close to the budget, this will demonstrate that the company understands their business and has been successfully driving it in the direction they had planned. On the other hand, if the actual numbers diverge wildly from the budget, this sends out an 'out of control' signal.

Budgets: Types of Cost / Budget

Variable Costs

Variable Budget

Discretionary Costs

Discretionary Budget

Fixed Costs

Fixed Budget

Contingency Costs

Contingency Budget

All Costs

Master Budget

More book 3 concepts

• Framework of accounting concepts within which the accounting statements are prepared

• Branches of accounting (financial accounting and management accounting)

• Regulation of accounting information and professional accountancy bodies

• Image of accountancy and accountants

Activity: Budgets

• What is a Budget and what does it do ?

• Should we rely solely on budgets for making decisions about running a business ?

Practical advice on TMA03

• Read the questions carefully

• Read the student guidance notes (they are very helpful)

• Structure using the word limit and break down of the question

• Use your course material (All the information you need is in Book 3 and there are worked examples there which are very similar to the TMA task)

Break

Book 4 Aims and Objectives

• Explain the role of marketing in a business• Explain various aspects of marketing strategy and management• Relate marketing theory as contained in this book to everyday

marketing situations with which you may come into contact• Explain how marketers relate to their stakeholders and what ethical

implications of these relationships are• Discuss aspects of consumer behaviour and explain what is meant

by a consumer society• Explain how marketing affects the natural

environment and how ‘green marketing’ attemptsto reduce these effects

Book 4 Sessions

1. What is marketing?

2. Understanding marketing environments

3. Understanding customers and consumption

4. The marketing mix

5. Addressing societal and environmental concerns in marketing

Activity: What is Marketing?

• How would you define marketing?

• What do you think is the main purpose of the marketing department in a business?

Key Book 4 Ideas and Concepts

• Marketing is a way of doing business, not just advertising or promotions

• Understanding their customers and their business environments is the first important task of marketers

• Consumption (and marketing) is an important aspect of contemporary societies, which goes beyond commercial concerns

• Marketing has significant impacts on society and the natural environment and, due to its close contact with customers and other stakeholders, the marketing function of a business faces particular ethical concerns

Activity: Glastonbury Festival

In small groups, discuss

1. What is the marketing problem facing the Glastonbury Festival ?

2. Using the 4P model (product, price, place, packaging) what do you think their marketing plan might include ?

3. Does this marketing plan differ from one to increase consumer goods’ sales ?

Activity: Glastonbury Festival

BusinessObjectives

DevelopMarketing Strategy

ImplementStrategy and

Monitor

EvaluateStrategy and

Amend

Source: www.bized.co.uk

Practical advice on TMA04

• Read the questions carefully• Read the student guidance notes (they are very helpful)

• Ensure your example is a personal experience of buying something

• Structure using the word limit and break down of the question• Use your course material • Ask for advice

Questions

Important Dates

• TMA03• TMA04

• Next Tutorial