Skills You Need To Demonstrate (AQA GCSE Business): Revision Note

Exam code: 8132

Lisa Eades

Written by: Lisa Eades

Reviewed by: Steve Vorster

Updated on

Knowledge and Understanding

  • This skill involves showing that you know the key business terms, facts and ideas from the course, and that you can recall them accurately when asked

  • When a question tests this skill, it does not expect you to explain, analyse or evaluate - it is simply checking whether you remember and understand the basics

What this involves

  • Select: choosing the correct answer from a set of options

  • Define: writing the meaning of a business term

  • State: writing a simple fact or short sentence, often linked to information in the question

  • Identify: giving a valid piece of information

Example

  • In this response, knowledge has been demonstrated by identifying a valid point

Multiple-choice question about barriers to effective communication with options: A) New information, B) New machinery, C) Jargon (selected), D) Job description.

Application

  • This skill is about showing that you can take your business knowledge and apply it to a given situation, data or case study

  • It involves showing how the knowledge works in practice. This means linking your answer to the context provided in the question (for example, a business, data table, or case study extract)

What this involves

  • Calculate: using maths skills to work out an answer from the data given. You must show your workings clearly, even if you use a calculator

  • Explain: giving points about a business concept or issue, and making sure these are connected to the case study or context in the question

Example

  • In this response, application has been demonstrated by relating a knowledge point to a business scenario

DJ imports and exports goods to and from the UK where it is based. One of its most successful export markets is the USA, where it has 14 stores. It also imports diamonds to the UK from India as they are much cheaper to buy from here than other countries. This means DJ can make a larger profit on each item sold. DJ only has stores in large cities, so customers mainly use the website to find information on jewellery items.

DJ has always advertised in fashion magazines read by its wealthy target market but wants to raise its profile further. Other jewellery businesses are promoting their brands by sponsoring big events such as sports competitions, festivals and awards ceremonies. DJ would like to sponsor a fashion show in London for a world-famous British designer with an expensive clothing range. The designer has agreed that if the sponsorship goes ahead, the models will all wear jewellery from the DJ collection. As well as attracting reporters and photographers from around the world, the fashion show will be streamed live on the Internet and shown on television.

Explain one DJ can use digital technology to communicate with customers.

[2 marks]

Text suggests using messages to update delivery of jewellery. Includes two green check marks, labelled as "Valid point" in purple and "Applied to the scenario" in orange.

Analysis

  • This involves showing that you can break down a business idea, issue or problem into parts, explain them clearly, and show how they connect.

  • You are moving beyond recalling knowledge or applying it to context and developing chains of reasoning

What this involves

  • Analyse: develop a chain of reasoning using a given context by expanding and exploring an issue. Your response will show clear cause-and-effect links

Example

  • In this response, analysis has been demonstrated by a chain of linked points that build on a valid point

Swim to Success (STS) is a programme that teaches young children how to swim through weekly lessons, developed by Jade Jackson, an ex-Olympic swimmer. Jade employs swimming instructors who deliver the programme using the pool facilities at gyms across the north-east of England.

Number of pools with swimming classes

5

Price per class per child

£9

Number of swimming classes per pool per week

14

Maximum number of children per swimming class

8

Jade set STS up as a sole trader because she wanted to make the key business decisions herself. Initially, Jade used a bank loan as her main source of finance and secured the loan against her home, which she owns.

Jade would like to expand STS. However, she is struggling to raise finance herself as her costs are still high. To help her manage financially, Jade has arranged an overdraft on her business bank account. She relies on this to pay employees if the business does not have enough cash at the end of the month. Jade has recently received a letter from the bank explaining that interest rates on bank loans and overdrafts are going to increase.

Analyse one effect of the increase in interest rates on STS.

[6 marks]

The image displays three words: "Knowledge" in yellow, "Application" in blue, and "Analysis" in pink, each with a coloured background.
Highlighted text explaining how increased interest rates affect Jade's ability to repay her overdraft, impacting her business and employees.

Evaluation

  • This involves showing that you can weigh up different arguments, options or outcomes and reach a justified conclusion.

  • You are expected to demonstrate higher-order thinking by recognising both sides, balancing evidence and making a decision that is clearly supported

  • You need to demonstrate evaluation in 9-mark and 12-mark responses

What this involves

  • Recommend: use the information provided in the question to choose between options, and recommend one, explaining why that option is better, using evidence

  • Evaluate: give a balanced argument about a business situation, weighing up advantages and disadvantages or short-term vs long-term effects. You should end with a supported conclusion that directly answers the question

Example

  • In this response, evaluation has been demonstrated by weighing up the different options and a supported judgement

  • This response shows a full-mark answer that demonstrates all skills

Zephyr's T-shirts has a good reputation for embroidering polo shirts with personalised logos with an exceptionally fast delivery time. Customers upload an image of the logo, and Zephyr's T-shirts aim to deliver the finished shirts within 3 working days. This is a highly competitive market, with many suppliers offering a similar product, albeit with an average 4-day lead time.

Staff must work at a very fast pace and often do not have breaks, working extra hours in order to complete their assigned daily workload. They often spend an hour or more each day repairing the sewing machines that are old and inefficient.

Zephyr has noticed an increase in complaints and returned polo shirts that do not conform to the high quality of workmanship stated on the website.

Zephyr has identified two options available to improve the quality of polo shirts sold:

  • provide more breaks for his staff and reduce overtime working

  • invest in buying and training workers on new, faster sewing machines that are faster

Recommend whether Zephyr should award more breaks to his staff, or invest in the new sewing equipment. Give reasons for your choice.

[9 marks]

Handwritten text highlighted in various colours outlines arguments for purchasing new sewing machines and granting breaks, with annotations on reasoning.

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Lisa Eades

Author: Lisa Eades

Expertise: Business Content Creator

Lisa has taught A Level, GCSE, BTEC and IBDP Business for over 20 years and is a senior Examiner for Edexcel. Lisa has been a successful Head of Department in Kent and has offered private Business tuition to students across the UK. Lisa loves to create imaginative and accessible resources which engage learners and build their passion for the subject.

Steve Vorster

Reviewer: Steve Vorster

Expertise: Economics & Business Subject Lead

Steve has taught A Level, GCSE, IGCSE Business and Economics - as well as IBDP Economics and Business Management. He is an IBDP Examiner and IGCSE textbook author. His students regularly achieve 90-100% in their final exams. Steve has been the Assistant Head of Sixth Form for a school in Devon, and Head of Economics at the world's largest International school in Singapore. He loves to create resources which speed up student learning and are easily accessible by all.