Description
During this brief outline pertaining to pearson srf btec level 6 professional diploma in business innovation management.
Pearson SRF
BTEC Level 6
Professional Diploma
in Business Innovation
Management (18772)
Specifcation
First teaching January 2015
Issue 2
A Pearson Self-regulated
Framework qualifcation
Edexcel, BTEC and LCCI qualifcations
Edexcel, BTEC and LCCI qualifcations are awarded by Pearson, the UK’s largest
awarding body offering academic and vocational qualifcations that are globally
recognised and benchmarked. For further information, please visit our qualifcation
websites at www.edexcel.com, www.btec.co.uk or www.lcci.org.uk. Alternatively,
you can get in touch with us using the details on our contact us page at www.
edexcel.com/contactus
About Pearson
Pearson is the world’s leading learning company, with 40,000 employees in more
than 70 countries working to help people of all ages to make measurable progress
in their lives through learning. We put the learner at the centre of everything we do,
because wherever learning fourishes, so do people. Find out more about how we
can help you and your learners at: www.pearson.com/uk
Pearson’s Self-regulated Framework qualifcations
This qualifcation has been approved by Pearson as meeting the criteria for
Pearson’s Self-regulated Framework.
Pearson’s Self-regulated Framework is designed for qualifcations that have been
customised to meet the needs of a particular range of learners and stakeholders.
These qualifcations are not accredited or regulated by any UK regulatory body.
For further information please see Pearson’s Self-regulated Framework policy on
our website.
This specifcation is Issue 2. Key changes have been side-lined. We will inform
centres of any changes to this issue.
References to third-party material made in this specifcation are made in good faith.
We do not endorse, approve or accept responsibility for the content of materials,
which may be subject to change, or any opinions expressed therein. (Material may
include textbooks, journals, magazines and other publications and websites.)
ISBN: 9781446924709
All the material in this publication is copyright
© Pearson Education Limited 2014
Contents
1 Purpose of this specification 1
2 Qualification summary 2
Key information 2
Aim of the qualification 2
3 Centre resource requirements 3
4 Qualification structure 4
5 Assessment 5
6 Centre and qualification approval 5
Approvals agreement 5
7 Quality assurance 5
8 Programme delivery 6
9 Access and recruitment 7
10 Unit format 8
Units 11
Unit 1: Financial Principles and Techniques for Non-specialists 13
Unit 2: Strategic Management 21
Unit 3: Innovation and Creativity in Business 29
Unit 4: Supply Chain Management 39
Unit 5: Management and Leadership 47
Unit 6: Entrepreneurship in Business 55
Unit 7: Change Management 63
Unit 8: Contemporary Issues in Business 73
Unit 9: Applying Lean Principles to Business Operations 81
Unit 10: Project Management for Engineering 89
1 Purpose of this specification
All customised qualifications on Pearson’s Self-regulated Framework have a
specification developed by Pearson.
The purpose of this specification is to set out:
? the aim/objective of the qualification
? the structure and rule of combination of the qualification
? the resources required by the centre to offer the qualification
? the knowledge, skills and understanding which will be assessed as part of the
qualification
? the method of assessment and any associated requirements relating to it
? the criteria against which learners’ level of attainment will be measured
(for example assessment criteria).
This specification must be used for delivery and teaching. It will be used by Pearson
to externally verify and certificate the approved qualification.
If you need any guidance or support related to customised qualifications you should
contact your Pearson representative, who will be happy to provide advice.
Specification – Pearson SRF BTEC Level 6 Professional Diploma qualification 1
in Business Innovation Management – Issue 2 – October 2014
2 Qualification summary
Key information
Pearson SRF BTEC Level 6 Professional Diploma in Business Innovation
Management
Minimum total Notional
Learning Hours (NLH)
1200
Minimum qualification value
(NLH/10)
120
European Credit Transfer and
Accumulation System (ECTS)
60 ECTS credits*
Assessment This qualification is assessed via centre-devised
assessment (internal assessment)
Unit grading information Pass
Overall qualification grading
information
Pass
* The ECTS credit value is calculated on the basis that one credit represents 20 NLH.
The recognition of ECTS credit is at the discretion of Higher Education institutions,
and will depend on the relevance of the prior learning and associated learning
outcomes.
Aim of the qualification
The Pearson SRF BTEC Level 6 Professional Diploma in Business Innovation
Management is for learners who work in, or want to work in, business management.
It gives learners the opportunity to initiate and carry out projects, make business
decisions in complex and unpredictable contexts and identify viable solutions to
problems.
Learners will apply their knowledge and practical skills in the workplace. Full-time
learners have the opportunity to do this through formal work placements and part-
time learners through their employment experience.
Learners will be workplace ready and have academic progression opportunities (to
Level 7 qualifications) for lifelong learning. This qualification enables learners to
become effective and competent business unit managers across the entire value
chain. Learners will gain the knowledge and skills which can be applied across a
variety of sectors and to organisations of all sizes. This qualification will provide equal
benefit for self-employed learners or start-up owners.
Specification – Pearson SRF BTEC Level 6 Professional Diploma qualification
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3 Centre resource requirements
As part of the approval process, the centre must make sure that the resource
requirements below are in place before offering the qualification.
? The centre must have appropriate physical resources (for example equipment, IT,
learning materials, teaching rooms) to support the delivery and assessment.
? Staff involved in the assessment process must have relevant expertise and
occupational experience.
? There must be systems in place to make sure that there is continuing professional
development for staff delivering the qualification.
? The centre must have appropriate policies in place relating to the delivery of the
qualification.
? The centre must deliver the qualification in accordance with current equality
legislation.
Specification – Pearson SRF BTEC Level 6 Professional Diploma qualification 3
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4 Qualification structure
Pearson SRF BTEC Level 6 Professional Diploma in Business
Innovation Management
The Pearson SRF BTEC Level 6 Professional Diploma in Business Innovation
Management qualification is a minimum of 1200 Notional Learning Hours (NLH).
Learners must achieve all eight mandatory units to the value of 120 to achieve the
qualification.
Mandatory units (all units must be taken)
Unit Unit title Level Notional
Learning
Hours
Value
(NLH/10)
1 Financial Principles and Techniques for Non-
specialists
6 150 15
2 Strategic Management 6 150 15
3 Innovation and Creativity in Business 6 150 15
4 Supply Chain Management 6 150 15
5 Management and Leadership 6 150 15
6 Entrepreneurship in Business 6 150 15
7 Change Management 6 150 15
8 Contemporary Issues in Business 6 150 15
Learners may choose to study additional units if they want to specialise in lean
business operations and/or project management in the engineering sector, to meet
their employer's needs and/or progress to further study.
Additional units must not replace any of the mandatory units.
Additional units
Unit Unit title Level Notional
Learning
Hours
Value
(NLH/10)
9 Applying Lean Principles to Business Operations 6 150 15
10 Project Management for Engineering 6 150 15
Specification – Pearson SRF BTEC Level 6 Professional Diploma qualification
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5 Assessment
All units in this qualification are internally assessed.
Assessment is a process of measuring learners’ work reliably against criteria, to
produce results that are a valid interpretation of knowledge or performance.
To avoid over-assessment the centre is encouraged to link delivery and assessment
across units, where appropriate.
Each unit has specified outcomes of learning and assessment criteria. To pass a unit,
learners must meet all the outcomes of learning.
The centre will need to devise a range of assessment methods to allow learners the
opportunity to meet the outcomes of learning and assessment criteria.
6 Centre and qualification approval
The centre must be approved before delivering and assessing customised
qualifications on Pearson’s Self-regulated Framework. Centres that have not
previously been approved will need to apply for, and be granted, centre recognition
as part of the process for approval to offer this qualification.
Before you offer this qualification you must meet both centre and qualification
approval requirements.
Please refer to the centre approval guidance on our website at:
www.edexcel.com/iwantto/Pages/customised-qualification-approval.aspx
Approvals agreement
All centres are required to enter into an approval agreement that is a formal
commitment by the head or principal of a centre to meet all requirements. If the
centre does not comply with the agreement this could result in the suspension of
certification or withdrawal of approval.
7 Quality assurance
Quality assurance is at the heart of customised qualifications on Pearson’s Self-
regulated Framework. The centre internally assesses this customised qualification
and is responsible for making sure that all assessors and Internal Verifiers adhere to
their internal verification processes, to ensure consistency and validity of the
assessment process.
Pearson uses quality assurance to check that all centres are working to the agreed
standard. It gives us the opportunity to identify and provide support, if needed, to
safeguard certification.
For guidance, please refer to the Pearson’s Self-regulated Framework (SRF) Quality
Assurance Handbook on our website at:
www.edexcel.com/quals/cust/pages/srf.aspx
Specification – Pearson SRF BTEC Level 6 Professional Diploma qualification 5
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8 Programme delivery
The centre is free to offer this qualification using any mode of delivery (for example
full-time, part-time, evening only, distance learning) that meets their learners’
needs. Please refer to the policy pages on our website at:
www.edexcel.com/policies
Whichever mode of delivery is used, the centre must make sure that learners have
access to the required resources, outlined in the specification, and to the subject
specialists delivering the units. Centres must give due regard to Pearson’s policies
that may apply to different modes of delivery.
For this qualification, delivery methods include:
? face-to-face tutor-led classes for full-time learners
? work-based learning for part-time learners.
Specification – Pearson SRF BTEC Level 6 Professional Diploma qualification
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9 Access and recruitment
Pearson is committed to providing qualifications with no artificial barriers. A full
statement, included in our Equality Policy, can be found on our website at:
www.edexcel.com/policies
Equality and fairness are central to our work. We are committed to making sure that
qualifications do not discriminate and all learners achieve the recognition they
deserve from undertaking a qualification and that this achievement can be compared
fairly to the achievement of their peers.
Restrictions on learner entry
Centres should review potential learners' prior qualifications and/or experience,
considering whether this profile shows that they have the potential to achieve the
qualification.
This qualification is suitable for learners aged 18 and above. Centres must give due
regard to Pearson’s policies that apply to the fair and equal recruitment of learners to
all Pearson qualifications.
Full-time learners
Qualification requirement (one of the following):
• Pearson BTEC Level 5 HND Diploma in Business, or in another sector e.g.
Design/Engineering if the learner is actively self-employed or a start-up owner
OR
• European equivalent at EQF Level 5 (120 ECTS)
OR
• International equivalent at UK Level 5 (240 UK credits).
Note:
Work experience is desirable for full-time learners entering this programme.
Part-time learners
Qualification or experience requirement (one of the following):
• Pearson BTEC Level 5 HND Diploma in Business, or in another sector e.g.
Design/Engineering if the learner is actively self-employed or a start-up owner
OR
• European equivalent at EQF Level 5 (120 ECTS)
OR
• International equivalent at UK Level 5 (240 UK credits)
OR
• 1 to 3 years management experience.
Note:
For part-time learners the minimum age requirement is 18, however in most cases
learners will be 25+.
Part-time learners should have confirmation that their current or prospective
employer will support the work-based learning mode.
Specification – Pearson SRF BTEC Level 6 Professional Diploma qualification 7
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10 Understanding the units
All units in this qualification have the following sections.
Title
The title is a short description of the content of the unit.
Level
The level of the unit indicates the complexity and demand expected to achieve it. The
level places the unit on a framework of comparability with other units and
qualifications at that level.
Notional Learning Hours (NLH)
Notional Learning Hours (NLH) are the total amount of time a learner is expected to
take, on average, to complete the unit to the required standard, including teaching,
study and assessment time.
Unit value
The unit value is calculated by dividing the Notional Learning Hours (NLH) by 10.
SRF unit code
The unique approval code for the unit.
Unit aim
Says what the aims of the unit are in terms of what is covered and what the unit will
enable learners to do.
Unit introduction
The introduction gives a short description of the unit, and details the key knowledge,
skills and understanding the learner will gain through studying the unit. The
introduction highlights the focus of the unit and how it links to the vocational sector
to which the qualification relates.
Outcomes of learning
Outcomes of learning state what a learner can be expected to know, understand or
be able to do as a result of completing a programme of learning for the unit.
Assessment criteria
Assessment criteria specify the standard required by the learner to achieve each
outcome of learning.
Specification – Pearson SRF BTEC Level 6 Professional Diploma qualification
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Unit content
In the unit content section topics are listed as bullets to provide detail on what is
required to design and deliver a programme of learning. Not all topics have to be
covered to be able to meet the assessment criteria. Centres are able to select the
topics they deliver, ensuring that learners produce evidence of sufficient depth and
breadth to meet the assessment criteria.
Information for delivery staff
This section gives delivery staff information on delivery and assessment. It contains
the following subsections.
Delivery guidance – offers guidance on possible approaches to delivery of the unit.
Assessment guidance – gives information about the evidence that learners must
produce, together with any additional guidance if appropriate. This section should be
read in conjunction with the assessment criteria.
Suggested resources – indicates resource materials that can be used to support the
teaching of the unit, for example books and journals.
Specification – Pearson SRF BTEC Level 6 Professional Diploma qualification 9
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Specification – Pearson SRF BTEC Level 6 Professional Diploma qualification
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Units
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Unit 1: Financial Principles and Techniques
for Non-specialists
Level: 6
Notional Learning Hours: 150
Value (NLH/10): 15
SRF unit code: 20440E
This unit is internally assessed
Unit aim
This unit aims to give the learner understanding of some financial accounting and
reporting principles, together with the skills to apply financial and management
accounting principles in business.
Unit introduction
This unit provides an introduction to the context of both financial and management
accounting and financial reporting.
It looks at how the financial statements of a range of business entities differ, as well
as the common elements between them. Learners will be able to explain the
constituent elements and purpose and uses of the three main financial statements.
Learners will also gain practical experience of preparing both the statement of
financial position and income statement for limited companies, and the balance sheet
and profit and loss account for sole traders. Learners will gain practical experience of
analysing the performance of a business through the use of financial ratios and
become familiar with the components of published financial statements. The unit
covers the role of external auditors and the debate surrounding the development of
international accounting standards.
The unit then deals with cost accounting for businesses. Learners will gain experience
of determining the unit costs of production. Finally, the unit looks at budgetary
control procedures and performance evaluation. Learners will gain practical
experience of producing budgets, flexing budgets based on actual output, and
calculating variances between budgeted and actual results. Learners will be able to
identify possible causes of variances and suggest corrective actions to be taken by
management.
Specification – Pearson SRF BTEC Level 6 Professional Diploma qualification 13
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Outcomes of learning and assessment criteria
To pass this unit, the learner needs to demonstrate that they can meet all the
outcomes of learning. The assessment criteria determine the standard required to
achieve the unit.
Outcomes of learning Assessment criteria
1 Understand the
principles of
financial
accounting and
financial reporting
1.1 Explain the role of UK and international accounting
standards in financial accounting
1.2 Critically evaluate the impact on businesses of one set
of accounting standards being used on a worldwide
basis
1.3 Analyse the differences in the accounts of a range of
different types of business
1.4 Describe the constituent elements of the statement of
financial position and income statement for companies
1.5 Analyse the constituent elements of the balance sheet
and profit and loss accounts for sole traders
1.6 Evaluate the importance and structure of a cash-flow
statement for companies
2 Be able to apply
the principles of
financial
accounting and
financial reporting
2.1 Prepare financial statements for given businesses,
making adjustments and from incomplete records
2.2 Evaluate the importance of consolidated financial
statements for groups of companies
2.3 Evaluate the significance and importance of the
constituent parts of a given annual report
2.4 Analyse the results and position of a given company
using financial ratios
2.5 Analyse the importance of the relationship between a
company’s external auditor and its directors
3 Be able to apply
principles of
management
accounting to a
given business
3.1 Calculate the unit costs of a given business using
appropriate techniques
3.2 Suggest improvements to reduce costs and enhance
value in a given business
3.3 Select appropriate budgeting methods for a given
business and its needs
3.4 Prepare a cash budget from given information for a
given business
3.5 Calculate variances from flexed budget, identify
possible causes and recommend corrective action
3.6 Prepare an operating statement reconciling budgeted
and actual results
3.7 Report findings to management in accordance with
identified responsibility centres
Specification – Pearson SRF BTEC Level 6 Professional Diploma qualification
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Unit content
1 Understand the principles of financial accounting and financial reporting
Role of accounting standards:
? UK and international, comparability, harmonisation process
Entity financial statements:
? sole trader, partnership, limited company, charity
Constituent elements of financial statements:
? financial position and financial performance, assets, liabilities, equity, revenue,
expenses, cash flows, accrual accounting
Cash flow statement:
? cash flows from operating activities, financing activities and investing activities
2 Be able to apply the principles of financial accounting and financial
reporting
Preparation of financial statements:
? recording of financial transactions
? preparation of statement of financial position, balance sheet, income statement,
profit and loss account
Consolidated financial statements:
? rationale for consolidation
Annual reports:
? financial statements, notes to accounts, auditors’ report, chairman’s statement
Financial ratio analysis:
? profitability, management performance, liquidity, gearing, efficiency, investor
ratios
? comparisons with competitors and previous accounting periods
Role of external auditors:
? appointment, role, independence, agency theory
Specification – Pearson SRF BTEC Level 6 Professional Diploma qualification 15
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3 Be able to apply principles of management accounting to a given business
Unit cost measurement:
? cost types (materials, labour, overheads, direct and indirect, fixed, variable and
semi-variable)
? measurement
? appropriate techniques
? improvements
? cost reduction
? value enhancement
The budgeting process:
? purpose
? benefits
? links with organisational objectives/strategy
? the budget manual
? budgets as planning, coordinating, motivation and control devices
? behavioural aspects
Budget preparation:
? limiting or key factors
? master, subsidiary and functional budgets
? cash budgets
? the preparation of sales budget, debtors’ budgets, creditors’ budgets, production
costs, raw materials and finished goods budgets
Budgeting methods:
? incremental
? zero-based
? fixed and flexible
Variances:
? types
? analysis
? calculation
? flexed budget
? possible causes
? corrective action
Specification – Pearson SRF BTEC Level 6 Professional Diploma qualification
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Reporting:
? operating statement
? reconciliation of budgeted and actual results
Responsibility centres:
? relevance to budgeting
? identification of responsibility for variances
Specification – Pearson SRF BTEC Level 6 Professional Diploma qualification 17
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Information for tutors
Delivery guidance
This unit provides an essential background to external financial accounting and
reporting and internal management accounting for both companies and sole traders.
It will enable learners to understand the wider accountancy framework within which
businesses operates. Delivery of the unit can be undertaken in a variety of ways,
ranging from an integrated approach to discrete topic delivery.
The unit could be delivered in the outcome of learning order, or alternatively
outcomes of learning 1 and 2 could be taught alongside each other as part of a larger
assignment. Alternatively, outcome of learning 3 could be delivered first if
accompanied by a suitable introduction. If the unit order is followed for delivery
purposes, then there could either be separate assignments for each outcome of
learning, or preferably a case study could be constructed which links all or some of
the outcomes of learning together.
An integrated approach could be based upon a hypothetical business, for which
learners are required to prepare both internal and external reports of a company.
External financial reports could be prepared from either incomplete records or from
detailed accounting transactions. Learners could then be asked to provide advice for
a company if it were to become part of a larger group as well as to use ratio analysis
to interpret the financial performance over a number of years. Internal management
reports could be prepared starting with the subsidiary budgets culminating in the
master budget. Variance analysis could then be performed to compare actual results
with the original and flexed budgets.
There are many websites that can provide basic information for learner research.
Learners could be encouraged to undertake research regarding the layout of the
financial statements of a range of business entities which are freely available.
Representatives from local accountancy and audit firms may also be able to provide
some input.
Assessment guidance
It is important that assessment shows the learner’s understanding of the different
accountancy roles both within and external to a business. Ideally this should be
achieved through application in case studies and business scenarios investigating real
or simulated businesses.
Specification – Pearson SRF BTEC Level 6 Professional Diploma qualification
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Suggested resources
Books
Atrill P and McLaney E – Accounting and Finance for Non-specialists with
MyAccountingLab, 7th Edition (Financial Times/Prentice Hall, 2010)
ISBN 978-0273745969
Dyson J R – Accounting for non-Accounting Students, 8th Edition (Financial
Times/Prentice Hall, 2010) ISBN 978-0273722977
Gowthorpe C – Business Accounting and Finance for Non-specialists, 2nd Edition
(Cengage Learning EMEA, 2005) ISBN 978-1844802005
Walsh C – Key Management Ratios, 4th Edition (Financial Times/Prentice Hall, 2008)
ISBN 978-0273719090
Weetman P – Financial and Management Accounting: An Introduction, 5th Edition
(Financial Times/Prentice Hall, 2010) ISBN 978-0273703693
Journals
Accountancy (CCH)
Accountancy Age (Incisive Financial Planning Limited)
Accounting Technician (Association of Accounting Technicians)
PQ Magazine (PQ Publishing)
Websites
www.accountancyage.com Accounting news, information and case studies
www.accountingweb.co.uk Accounting news, information and case studies
www.bized.co.uk A business education resource site
www.bizhelp24.com Help and support for businesses
www.businesslink.gov.uk Business guidance for businesses, including
accounting
www.canterbury.gov.uk An example of a specific local business support
website
www.ons.gov.uk Office for National Statistics – UK government
statistics, including the Retail Price Index
www.thetimes100.co.uk The Times 100 case studies
www.tutor2u.net Educational website for business and economics
Specification – Pearson SRF BTEC Level 6 Professional Diploma qualification 19
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Unit 2: Strategic Management
Level: 6
Notional Learning Hours: 150
Value (NLH/10): 15
SRF unit code: 20441E
This unit is internally assessed
Unit aim
This unit aims to give the learner understanding of the importance of strategy to an
organisation in providing direction and scope over the long term. The unit also gives
the learner the skills to assess an organisation’s strategic position in order to gain an
advantage through combining its competencies and resources.
Unit introduction
Strategic management is constantly changing and it is important that learners
understand the strategic position of an organisation.
This involves the analysis of business environments, the evaluation of strategic
capability and the development of strategic purpose. Learners will examine how an
understanding of culture can help managers develop the strategies of their
organisations. The cultural web model which allows managers to analyse culture and
its influence on strategy will be introduced.
Strategic choices are concerned with decisions about an organisation’s future and the
way in which it needs to respond to the pressures and influences. The consideration
of strategies must take into account the realities of turning strategy into action which
in turn can be a significant constraint on strategic choice. The strategy of going
international is considered, including the sources of advantage and the methods of
market selection and entry.
The importance of effective change management is explored which is a critical
success factor in strategic management.
Specification – Pearson SRF BTEC Level 6 Professional Diploma qualification 21
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Outcomes of learning and assessment criteria
To pass this unit, the learner needs to demonstrate that they can meet all the
outcomes of learning. The assessment criteria determine the standard required to
achieve the unit.
Outcomes of learning Assessment criteria
1 Understand how
strategic choices
are made in
organisations
1.1 Analyse the different levels of strategy in an
organisation
1.2 Compare methods of strategy evaluation in
organisations
2 Understand the
importance of
culture within
strategic
positioning in
organisations
2.1 Assess the importance of culture in organisations
2.2 Evaluate how organisational culture influences
strategy in an organisation
2.3 Analyse the cultural web of an organisation
3 Understand the
risks involved in
an organisation
deciding to
internationalise
3.1 Evaluate the drivers that encourage organisations to
internationalise
3.2 Critically evaluate national and international sources
of advantage for an organisation
3.3 Assess methods of market selection and entry for an
organisation
4 Be able to assess
the strategic
position of an
organisation
4.1 Carry out an analysis of the business environment of
an organisation
4.2 Evaluate the strategic capability of an organisation
4.3 Develop a strategic purpose for an organisation
5 Understand the
importance of
change in strategic
management
5.1 Explain the methods for diagnosing change situations
5.2 Critically evaluate different change management
styles and roles
5.3 Evaluate the management of strategic change
programmes in organisations
Specification – Pearson SRF BTEC Level 6 Professional Diploma qualification
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Unit content
1 Understand how strategic choices are made in organisations
Levels of strategy:
? business level strategy
? corporate level strategy
? Ansoff’s Product/Market Growth Matrix
? international strategies
Strategy evaluation:
? suitability of the strategy
? threats, opportunities, weaknesses, strengths (TOWS matrix)
? ranking strategic options
? decision trees
? scenarios
? acceptability
? returns
? analysis (financial, cost benefit, shareholder value, risk, ration, sensitivity)
? feasibility of the strategy
? financial resources
? deployment of resources
2 Understand the importance of culture within strategic positioning in
organisations
Culture:
? national and regional cultures
? the organisational field
? sets of assumptions, norms and regimes
? organisational culture
Organisational culture and strategy:
? the management of culture
? culture as a driver of strategy
? development of strategy
? implementation of new strategies
? assessing corporate performance
? adopting a suitable paradigm
Specification – Pearson SRF BTEC Level 6 Professional Diploma qualification 23
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Cultural web:
? tool for analysing culture
? elements of the web
? paradigm
3 Understand the risks involved in an organisation deciding to
internationalise
Drivers to internationalise:
? Yip’s drivers of globalisation
National and international sources of advantage:
? Porter’s Diamond model
? the international value network
? international strategies
? simple export
? complex export
? multidomestic strategy
? global strategy
Market selection and entry:
? market characteristics
? political, economic, social, legal, competitive characteristics
? entry modes
? exporting
? joint ventures and alliances
? licensing
? foreign direct investment
4 Be able to assess the strategic position of an organisation
The business environment:
? macro environment
? industries and sectors
? competitors
? Porter’s five forces framework
? industry life cycle
? strategic groups
? market segments
? opportunities and threats
Specification – Pearson SRF BTEC Level 6 Professional Diploma qualification
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Strategic capability:
? methods for evaluating strategic capability
Strategic purpose:
? corporate governance
? business ethics and corporate social responsibility
? stakeholder expectations
? stakeholder power
? organisational purpose, values, mission, vision, objectives
5 Understand the importance of change in strategic management
Methods for diagnosing change situations:
? types of strategic change
? big bang, incremental, realignment, transformational, cultural context
? force field analysis
Change management styles and roles:
? roles in managing change
? strategic leadership
? education, participation, intervention, direction, coercion
Management of strategic change programmes:
? strategic reconstruction
? turnaround strategy
? managing revolutionary and evolutionary strategic change
Specification – Pearson SRF BTEC Level 6 Professional Diploma qualification 25
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Information for tutors
Delivery guidance
For outcome of learning 1, learners need to understand the strategic position of an
organisation. This could involve the learners working in small groups undertaking a
review of the business environment of selected organisations from different sectors.
They should be encouraged to apply Porter’s five forces to the particular area under
investigation and to use SWOT analysis and the value chain to assess strategic
capability. A review of strategic purpose should also take place which should focus on
corporate governance, business ethics and corporate social responsibility.
For outcome of learning 2, learners need to understand the importance of culture
within strategic positioning which could involve small group work examining case
studies focusing on particular cultures within a variety of organisations and the
impact these cultures have on their strategic positioning. Learners need to
understand that culture is a key driver of strategy and that culture in any
organisation can be analysed using the tool known as the ‘cultural web’. Learners
could through case studies or with reference to their own organisations use the
cultural web to analyse the cultural arrangements in place.
For outcome of learning 3, learners should also understand that when an
organisation makes a strategic decision to go international, a series of risks will
emerge. Learners need to be made aware of the key drivers that exist that
encourage organisations to go international. Again case studies can be used to
identify sources of advantage of entering foreign markets and the decision making
process involved associated with market selection and entry.
For outcome of learning 4, learners need to understand the importance of strategy
development and the difference between intended and emergent strategies. Class
and small group discussions can help learners identify these various strategic
developments in place in their own organisations. Learners will also need to
understand the importance of organisation structure and the effective management
of resources both physical and human in strategy development.
For outcome of learning 5, learners need to understand that when change is to take
place in an organisation, there are various different types of change situations and
that these can be diagnosed using various tools and techniques. The importance of
change management styles and roles also needs to be examined and this can be
successfully delivered through case study material, information from the learners’
own organisations and relevant guest speakers who can take learners through the
various stages of successful change management programmes that they may have
been involved with.
Assessment guidance
The preferred method of assessment for this unit is to have one full unit assignment
allowing the learner to research aspects of strategic management in their own
organisation or another organisation that will allow them access. The assignment
could if desired, be broken down into 2, 3 or 4 or smaller assignments. The evidence
could be in the form of a presentation or report covering the five outcomes of
learning and all the assessment criteria. It is advisable to teach the outcomes of
learning in their outcome of learning order (1 to 5) as each outcome of learning
builds on the knowledge of the previous one.
Specification – Pearson SRF BTEC Level 6 Professional Diploma qualification
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Suggested resources
Books
Asch D and Bowman C – Readings in Strategic Management (Palgrave Macmillan,
1989) ISBN 978-0333518090
Barney J – Gaining and Sustaining Competitive Advantage (Prentice-Hall, 2007)
ISBN 978-0131355026
Davenport T and Norton D – The Strategy-focused Organization (Harvard Business
School Press, 2000) ISBN 978-1578512508
Cusumano M and Markides C – Strategic Thinking for the Next Economy (Jossey
Bass, 2001) ISBN 978-0787957292
De Wit B and Meyer R – Strategy: Process, Content, Context (Thomson Learning,
2004) ISBN 978-1405119993
Grant R – Contemporary Strategy Analysis (Blackwell, 2004)
ISBN 978-0470972205
Gratton L – Living Strategy: Putting People at the Heart of Corporate Purpose
(Prentice Hall, 2000) ISBN 978-0273650157
Harrison J – Strategic Management: Concepts and Cases (Wiley, 2002)
ISBN 978-047122927
Johnson G, Scholes K and Whittingham R – Exploring Corporate Strategy (Prentice
Hall Ed 8, 2008) ISBN 978-0273711926
Johnson G – Exploring Public Sector Strategy (Prentice Hall, 2000)
ISBN 978-0273646877
Kaplan R and Norton D – The Strategy-Focused Organization: How Balanced
Scorecard Companies Thrive in the New Business Environment (Harvard Business
School Press, 2000) ISBN 978-1578512508
Lynch R – Corporate Strategy (Prentice Hall, 2005) ISBN 978-0273701781
McGee, J, Thomas, H and Wilson D – Strategy: Analysis and Practice (McGraw-Hill,
2005) ISBN 978-0077107055
Mintzberg H – The Rise and Fall of Strategic Planning (Prentice Hall, 2000)
ISBN 978-0273650379
Mintzberg H, Ahlstrand B and Lampel J – Strategy Safari: A Guided Tour through the
Wilds of Strategic Management (Prentice Hall, 2001)
ISBN 978-0273656364
Pettigrew A, Thomas H and Whittington R – The Handbook of Strategy and
Management (Sage, 2001) ISBN 978-0761958932
Schwartz P – The Art of the Long View (Wiley, 1997) ISBN 978-0471977858
Stacey R – Strategic Management and Organisational Dynamics (Prentice Hall, 2002)
ISBN 978-0273658986
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Journals
Academy of Management Journal (Academy of Management)
British Journal of Management (Blackwell)
California Management Review (University of California, Berkeley)
European Management Journal (Elsevier)
Harvard Business Review (Harvard Business School)
Journal of Business Strategy (Blackwell)
Journal of Management Studies (Blackwell)
Long Range Planning (Elsevier)
MIT Sloan Management Review (MIT Sloan School of Management)
Strategic Change (John Wiley & Sons Ltd)
Strategy and Leadership (Emerald)
Websites
www.ft.com Financial Times
www.managers.org.uk Chartered Management Institute
www.sps.org.uk Strategic Planning Society
Specification – Pearson SRF BTEC Level 6 Professional Diploma qualification
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Unit 3: Innovation and Creativity in
Business
Level: 6
Notional Learning Hours: 150
Value (NLH/10): 15
SRF unit code: 20442E
This unit is internally assessed
Unit aim
This unit aims to give learners an understanding of the importance to organisations
of creativity and innovation. The unit also gives learners the skills to overcome
barriers and influence others to support innovation in business.
Unit introduction
Innovation is becoming essential to growth and prosperity of business organisations
and countries. In this unit, learners start by exploring the need for business
organisations to continuously innovate in order to maintain competitive advantage
and the impact of innovation on national economies. Learners study the work of
theorists seeking to understand the processes of creativity in individuals. They then
experiment with using some of the many techniques designed to encourage creativity
and innovation in individuals and groups.
Learners will examine the theoretical approaches to the fostering or conversely the
stifling of innovation in organisations. This includes exploration of types of
motivation, culture, climate, leadership and innovation management processes found
in organisations.
Learners will plan the development and implementation of an innovative idea of their
own and in doing so apply some of the theory from this unit. In the final outcome of
learning, learners identify and plan to overcome barriers to the implementation of
their innovative idea. This includes examination of internal barriers such as culture
and resistance to change, as well as external barriers such as the market, legislative
framework and infrastructure issues.
Overall, the unit examines innovation in business from viewpoints of individual
creativity in individuals through to the drivers and actions of organisations and
national government. It links theory with practical application.
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Outcomes of learning and assessment criteria
To pass this unit, the learner needs to demonstrate that they can meet all the
outcomes of learning. The assessment criteria determine the standard required to
achieve the unit.
Outcomes of learning Assessment criteria
1 Understand the
importance of
innovation to
business
1.1 Explain the value of innovation to organisations
1.2 Evaluate support for a recent innovation in a selected
organisation
2 Understand how
creativity can be
fostered
2.1 Analyse key theoretical concepts about creativity in
individuals
2.2 Use analytical tools to identify potential creative ideas
2.3 Critically evaluate key theoretical concepts about
creativity
3 Understand how
innovation can be
fostered in an
organisation
3.1 Analyse how to lead others in an organisation to
positively embrace innovation
3.2 Critically evaluate current processes for managing
innovation within a selected organisation
4 Be able to
influence others to
effect innovative
change in an
organisation
4.1 Plan a creative idea to effect innovative change in an
organisation
4.2 Produce an appropriate rationale to persuade
stakeholders of an organisation of the benefits of a
creative idea
4.3 Communicate the idea to effect innovative change in
an organisation to stakeholders
4.4 Critically evaluate the idea and its prospects of
success
5 Be able to plan to
overcome barriers
to implementation
of creative and
innovative ideas in
an organisation
5.1 Assess the barriers to the implementation of a
creative and innovative idea in a selected organisation
5.2 Plan a strategy to overcome identified barriers to the
implementation of a creative and innovative idea in an
organisation
5.3 Evaluate the extent to which the plan will increase the
likelihood of success of an innovation within an
organisation
Specification – Pearson SRF BTEC Level 6 Professional Diploma qualification
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Unit content
1 Understand the importance of innovation to business
Innovation in engineering:
? definitions of innovation
? formats of innovation
? level of change
? innovation space mapping
Importance to organisations:
? increasingly competitive trading environment
? building and maintaining competitive advantage
? types of competitive advantage
Support for innovation:
? government policies supporting innovation
2 Understand how creativity can be fostered
Key theoretical concepts:
? comparison of approaches
? forms of creativity
? creative process
? personality traits for innovation
Creativity tools and techniques:
? positive
? negative
? interesting (PNI)
? mind mapping
? visioning
? fishbone diagram
? problem-solving techniques
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Analytical tools:
? SWOT (strengths, weaknesses, opportunities and threats)
? cost/benefit analysis
? Pareto analysis
? risk analysis
? value
Evaluation:
? criticisms of theoretical concepts and tools and techniques
3 Understand how innovation can be fostered in an organisation
Fostering innovation in organisations:
? theoretical approaches
? culture and climate encouraging innovation
? intrinsic versus extrinsic motivation
? impact of type of tasks
Leadership:
? climate
? reward
? work roles to support innovation
Innovation strategies:
? pioneering versus following
? leapfrog
? speed to market
? perfection
? market hedge
? product hedge
? outsource and alliance
? innovation protection strategies
Organisational processes:
? innovation strategies
? innovation process management development and models
Specification – Pearson SRF BTEC Level 6 Professional Diploma qualification
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4 Be able to influence others to effect innovative change in an organisation
Plan creative idea:
? identify problem/opportunity
? human resource, physical and technical requirements
? working environment
? idea generation
Rationale for stakeholders:
? identification of stakeholders
? analysis of stakeholder viewpoints and importance
? benefits of innovative idea
Communicate/evaluate idea:
? segmentation and targeting of stakeholders
? communications mix
? media selection
? stakeholder group interaction
? evaluation and selection processes
? financial measures
? market factors
5 Be able to plan to overcome barriers to implementation of creative and
innovative ideas in an organisation
Internal/external barriers to innovation:
? organisational culture
? organisational climate
? resistance to change
? types of resistance to change
? legislation
? infrastructure
? lack of government support
? market reaction
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Overcoming barriers:
? participation
? education
? involvement
? communication
? staff selection and rewards
? relocation
? lobbying
? adaptation
Evaluation /increasing success:
? measures of success
? factors enhancing success rates
? causes of failures
Specification – Pearson SRF BTEC Level 6 Professional Diploma qualification
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Information for tutors
Delivery guidance
This unit draws from a variety of disciplines and a variety of learning methods could
be used. A range of recent work of theorists on innovation is included and this
contextualised into the business studies world through drawing on established
principles from marketing, economics, finance and management.
As consumers and users of services, learners will be familiar with the results of
innovations, e.g. social media, and case studies of how these organisations innovate
would be valuable in bringing this unit to life.
Learners with experience of working in innovative or traditional organisations or that
fall somewhere between these two opposites, could be encouraged to use and share
their experiences in group discussions and in their assessed work.
Outcome of learning 1 sets the context and enables learners to explore why
innovation is regarded as so important at both organisational and national level. It
would be beneficial for learners to be exposed to a wide variety of current material
from the business world through reading ‘quality newspapers’ and journals. Learners
could collect key statistics on innovations over a recent time period and then share
them with fellow learners. It would also be useful for learners to hear the views of
those involved in government or in running businesses on government support for
innovation in business.
In outcome of learning 2, learners study the work of theorists investigating the
somewhat mysterious processes of creativity in individuals. Traditional styles of
delivery such as lectures and reading can be used for this content. This outcome of
learning also includes a practical element whereby learners can experiment with
using different techniques for developing creative ideas. The well-known methods
given in the unit content can be used, however other less well-known methods could
be tested by learners instead or as well as the methods given. Learners could be
given problems relevant to their own lives. Books or websites based on developing
creative thinking could also provide suitable exercises. A technique sometimes used
is for learners to keep an innovation or creativity log throughout their programme of
study.
Outcome of learning 3 is about the theory relating to how innovation can be fostered
or discouraged by the way the organisation is managed. The theory could be taught
through lectures or through learners reading selected materials. The theory could be
further explored through applying it to organisations with which learners are familiar
and to case study material.
Outcome of learning 4 is less abstract and more practical and learners will be
applying the theory learnt in the other outcomes of learning and also revisiting
learning from other units in the programme. Learners should have already studied
stakeholders, marketing communications and project evaluation techniques so for
these areas teaching should complement what has gone before and help learners to
relate it to the management of the development of an innovative idea. Some
techniques, such as the bubble diagrams, are specific to this unit but the factors used
within it are common to many business studies units. Learners could be given
opportunities to practise using all the techniques in small groups, using a case study
or a hypothetical idea for the development of a service in their own institution.
Outcome of learning 5 is practical rather than theoretical and focuses on the
implementation of an innovative idea. Much of the content follows on from the
theoretical content from the other outcomes of learning although some content
relates to resistance to change which learners may need to explore through lectures
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or reading before practising application of the principles to case studies. Analysis of a
current campaign which supports a controversial change could provide an interesting
way of delivering this part of the programme.
Assessment guidance
Assessment for this unit could be in the form of one large assignment covering all
criteria or it could be split into two or perhaps three assessments. It is envisaged that
outcomes of learning 4 and 5 would be assessed together and linked to outcome of
learning two. The theme of this assignment would be the development and planning
for the introduction of an innovative idea. Outcomes of learning 1 and 3 could be
linked into an assignment based on a study of an organisation.
In designing the assessments, consideration should be given to ensuring these
learners can adequately research the organisation used for many of the outcomes of
learning, especially 4 and 5. Learners will need to be able to fully understand factors
in the internal operations of the business and its external environment. Learners who
are in employment may have access to this information through their work roles. For
other learners, assessments for this unit could be based on a period of work
experience, or from an in-depth study of an organisation. Case-study material could
be provided and then supplemented by learners’ own research. The learning
institution could provide a context for an assessment whereby learners plan
innovative ideas for tackling current challenges faced by different sections of the
organisation. In this case, it is recommended that a different organisation is used for
the other assignment in the unit so that learners have exposure to innovation in a
commercial environment. It is unlikely that a fictitious context could provide enough
detail to enable the learners to cover the criteria.
There is a need to ensure that the assessment programme includes opportunities for
learners to use the analytical tools and it may be that this is better done in groups. If
group work is used for any of the criteria it is necessary to ensure that the guidance
on the use of group work is followed. Evidence should be produced identifying that
each learner has achieved each assessment criterion. Assessment outcomes for most
of the assessment criteria are likely to be in the form of reports, plans and
presentations.
Suggested resources
Books
Ahmed P K and Shepherd C D – Innovation Management: Context, Strategies,
Systems and Processes (Financial Times/Prentice Hall, 2010)
ISBN 978-0273683766
Drucker P F – Innovation and Entrepreneurship (Butterworth-Heinemann, 2007)
ISBN 978-0750685085
Hammer M and Champy J – Reengineering the Corporation: A Manifesto for Business
Revolution (Harper Paperbacks, 2004) ISBN 978-0060559533
Jones T – Innovating at the Edge: How Organizations Evolve and Embed Innovation
Capability (Butterworth-Heinemann, 2002) ISBN 978-0750655194
Kotler P, Armstrong G, Wong G and Saunders J – Principles of Marketing, 5th Edition
(Financial Times/Prentice Hall, 2008) ISBN 978-0273711568
Tidd J and Bessant J – Managing Innovation: Integrating Technological, Market and
Organizational Change, 4th Edition (John Wiley and Sons, 2009)
ISBN 978-0470998106
Specification – Pearson SRF BTEC Level 6 Professional Diploma qualification
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Journals
British Journal of Management (John Wiley and Sons)
Harvard Business Review (Harvard Business Publishing)
Journal of Product Innovation Management (John Wiley and Sons)
Financial Times (The Financial Times Ltd)
Websites
www.cambridgeaudits.com Cambridge Strategy Audits offers scoreable company
self-audits on innovation and related topics
www.enchantedmind.com A non-profit educational institution offering research
findings in areas of creative leadership
www.haygroup.com/uk The Hay Group website provides materials on the
business climate and encouraging innovation
www.managers.org.uk Chartered Management Institute – searchable
database which members can use to access
Specification – Pearson SRF BTEC Level 6 Professional Diploma qualification 37
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Specification – Pearson SRF BTEC Level 6 Professional Diploma qualification
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Unit 4: Supply Chain Management
Level: 6
Notional Learning Hours: 150
Value (NLH/10): 15
SRF unit code: 20443E
This unit is internally assessed
Unit aim
This unit aims to give the learner an understanding of why supply chains are
important to organisations for gaining sustainable competitive advantage and success
and the skills to apply strategic supply chain management issues and to assess the
impact of technology on supply chains.
Unit introduction
The unit provides a comprehensive review of the constantly developing and changing
area of supply chain management. The unit focuses on the fact that supply is a
dynamic strategic process and not an administrative function. The unit begins by
considering how the function and profile of supply chain management (SCM) within
organisations has changed significantly.
Different types of sourcing strategies are reviewed, as well as how organisations
strategically select suppliers. The unit then introduces the strategic supply wheel
model which was developed to explain the main principles and concepts of supply
management. At the centre of the model is the development of supply policy and
strategy. The model allows organisations to identify if supply and corporate
strategies are aligned and helps determine the competencies and skills required for
successful strategic supply.
Building on the above, the unit examines how performance is measured in supply
strategy, including associated costs as well as discussing how inter-business
relationships are managed. The strategic issues involved in supply chain
management are reviewed, these include environmental issues, the importance of
supplier involvement in new product development and the special nature of public
procurement. The unit then examines the important impact of technology on supply
chain management.
Specification – Pearson SRF BTEC Level 6 Professional Diploma qualification 39
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Outcomes of learning and assessment criteria
To pass this unit, the learner needs to demonstrate that they can meet all the
outcomes of learning. The assessment criteria determine the standard required to
achieve the unit.
Outcomes of learning Assessment criteria
1 Understand the
key supply
decisions that have
to be made in
businesses
1.1 Analyse sourcing strategies that are used by
businesses
1.2 Critically evaluate how businesses strategically select
suppliers
2 Understand how
businesses develop
supply strategy
2.1 Assess the importance of the strategic wheel in
developing supply strategy
2.2 Analyse how supply strategies are aligned to
corporate/organisational strategies
3 Understand the
role of
performance
management in
developing supply
strategy
3.1 Compare the different types of performance
measurement used in developing supply strategy
3.2 Assess the measurement of costs in developing
supply strategy
3.3 Review how inter-business relationships are managed
4 Be able to apply
strategic issues in
supply chain
management
4.1 Examine the environmental issues in supply chain
management which affect a given business
4.2 Analyse the benefits of involving suppliers in new
product development in a given business
4.3 Assess the special nature of public procurement in a
given business
5 Be able to assess
the impact of
technology on
supply chain
management
5.1 Analyse how information technology improves
communication between supply chain partners
5.2 Critically evaluate the advantages of different forms
of electronic exchanges in supply chain management
in a given business
Specification – Pearson SRF BTEC Level 6 Professional Diploma qualification
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Unit content
1 Understand the key supply decisions that have to be made in businesses
Sourcing strategies:
? Kraljic’s product and service positioning
? Porter’s five forces
? impact on business
? supply structure and design
Supplier selection:
? four stages of supplier selection
2 Understand how businesses develop supply strategy
The strategic wheel:
? three basic approaches to strategic supply
? interrelationships between each of the strategic elements of an organisation
Supply and corporate strategies:
? supply chain strategy supports and facilitates corporate strategy
? information sharing
? translation of competitive priorities into supply function objectives
? translating supply function objectives into supply chain practices
3 Understand the role of performance management in developing supply
strategy
Performance measurement:
? methods
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The measurement of costs:
? cost benefit analysis
? price versus cost
? total cost of ownership
? purchasing activities contributing to total cost of ownership
? management of purchasing function
? delivery administration
? service costs
? communication costs
? price negotiations
? quality costs
Inter-business relationships management:
? development of supply chain and relationship management
? Strategic Relationship Positioning Model (SRPM)
4 Be able to apply strategic issues in supply chain management
Environmental issues:
? from outside and inside a business’s internal and external sources
Suppliers and new product development (NPD):
? current issues
? competitive advantage
? costs
? increasing product complexity
? reduced product life cycles
? managing technological change
? resources and knowledge required to innovate
? benefits of involvement
Public procurement:
? public scrutiny of sourcing decisions
? no competitive markets in which to operate
? regulation
? EU procurement objectives
Specification – Pearson SRF BTEC Level 6 Professional Diploma qualification
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5 Be able to assess the impact of technology on supply chain management
Information technology and communication:
? electronic data interchange (EDI)
? development of Open Systems Integration (OSI)
? internet technologies
Electronic exchanges:
? marketplace in which goods and services are traded – global, connecting buyers
and sellers, auctions, VPNs, one to many, many to many, web marketplace,
vortices, butterfly hubs
? advantages
Specification – Pearson SRF BTEC Level 6 Professional Diploma qualification 43
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Information for tutors
Delivery guidance
For outcome of learning 1, learners need to understand the key decisions that have
to be made by supply chain managers which have a bearing on whether the
organisation will be successful. The most important decision for any organisation is
whether to make or buy what they need. Having decided that they may need to
purchase, strategies need to be produced to identify where products can be sourced.
Learners can be given case studies and asked to apply some of the tools and
techniques which assist sourcing strategy decision making, e.g. Porter’s five forces.
Finally, learners need to consider the important aspect of supplier selection and the
multitude of tests that can be applied to ensure the selection is correct.
For outcome of learning 2, learners need to understand how organisations develop
supply strategy. They should apply the strategic wheel to case study material to
identify the strategic relationships between each of the strategic elements within an
organisation. Building on this knowledge learners should be able to recognise the link
between supply chain management and the corporate strategies that exist. Again,
case studies and group work can help learners to understand these important links.
Learners also need to appreciate that in developing a supply strategy the
organisation needs to have appropriate competencies and skills within the
organisation to enable supply chain objectives to be met.
For outcome of learning 3, learners need to understand that in any strategic supply
chain initiative must be performance measured using criteria such as costs, quality
and supplier performance. Case studies and class discussions can help learners to
gain an appreciation of the necessity of performance management, including the
various methods of cost measurement. Finally, learners need to understand the
importance of the management of inter-firm relationships in the development of
supply strategy. A guest speaker from a business with well-developed supply chain
management would be useful for delivering this part of the outcome of learning,
covering relationship management and strategic collaboration.
For outcome of learning 4, learners need to be made aware of some of the more
important issues impacting on supply chain management. Class and small-group
discussions can help learners identify the various internal and external environmental
issues that are relevant, including customers, suppliers, regulatory authorities,
employees and organisational departments. Learners also need to understand the
benefit of involving suppliers in new product development, this can impact on issues
such as quality and delivery frequency. The particular situation of supply chain
management in the public sector must also be delivered and this could be taught by
a public sector supply chain officer covering the regulations in place and the process
of tendering.
For outcome of learning 5, learners need to understand the impact of technology on
supply chain management and in particular the role of information technology in
improving communication throughout the supply chain. Learners also need to
examine the important role of electronic exchanges in supply chain management. A
class visit to a business with good supply chain management systems with
appropriate technology would be very useful in delivering this part of the outcome of
learning.
It is advisable to teach the outcomes of learning in their outcome of learning order (1
to 5) as each outcome of learning builds on the knowledge of the previous one.
Specification – Pearson SRF BTEC Level 6 Professional Diploma qualification
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Assessment guidance
The preferred method of assessment for this unit is to have one full unit assignment
allowing the learner to research aspects of supply chain management in their own
organisation or another organisation that will allow them access. The assignment
could if desired, be broken down into two, three or four or smaller assignments. The
evidence could be in the form of a presentation or report covering the five outcomes
of learning and all the assessment criteria.
Suggested resources
Books
Chopra S and Meindl P – Supply Chain Management: Strategy, Planning and
Operation, 4th Edition (Pearson Education, 2009) ISBN 978-0136094517
Chaffey D – E-Business and E-Commerce Management: Strategy, Implementation
and Practice, 4th Edition (Financial Times/Prentice Hall, 2009) ISBN 978-0273719601
Christopher M – Logistics and Supply Chain Management, 4th Edition (Financial
Times/Prentice Hall, 2010) ISBN 978-0273731122
Harvard Business Review on Managing the Value Chain – (Harvard Business School
Press, 2000) ISBN 978-1578512348
Harvard Business Review on Supply Chain Management – (Harvard Business School
Press, 2006) ISBN 978-1422102794
Stadtler H and Kilger C – Supply Chain Management and Advanced Planning:
Concepts, Models, Software and Case Studies, 4th Edition (Springer, 2007)
ISBN 978-3540745112
Turban E, King D, Lee J K, Liang T P and Turban D – Electronic Commerce 2010: A
Managerial Perspective, 6th Edition (Pearson Education, 2009)
ISBN 978-0137034659
Journals
European Journal of Purchasing and Supply Management (Elsevier)
The Journal of Supply Chain Management (Institute for Supply Management)
Supply Chain Management: An International Journal (Emerald)
Websites
www.cips.org The Chartered Institute of Purchasing and Supply
www.iwvaluechain.com Industry Week’s The Value Chain
www.logistics.about.com/mbody News about logistics and the supply chain
Specification – Pearson SRF BTEC Level 6 Professional Diploma qualification 45
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Specification – Pearson SRF BTEC Level 6 Professional Diploma qualification
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Unit 5: Management and Leadership
Level: 6
Notional Learning Hours: 150
Value (NLH/10): 15
SRF unit code: 20444E
This unit is internally assessed
Unit aim
This unit aims to give the learner an understanding of the links between leadership
and management. The unit also gives learners the skills to be able to apply this
understanding in an organisational context.
Unit introduction
There is debate about whether the use of these terms should be restricted or used
interchangeably. In this unit, learners will have the opportunity to assess the merits
of this debate.
Learners will gain an insight into the current thinking on leadership from an
organisational perspective and they will examine the links between leadership and
management. Learners will have the opportunity to consider current theories of
leadership and management and investigate how the can be applied in an
organisational context. This will enable learners to compare and evaluate the
usefulness of these theories as they seek to apply them to the specific leadership
requirements in an organisation.
All organisations need leaders at every level of the business. However, the leadership
qualities that are required to make a good leader can vary in different organisations,
at different levels of the organisation, in teams and in different organisational
situations. Learners will look at the importance of leadership qualities and they will
explore how they link to leadership behaviour.
The unit will enable learners to understand the impact of management and leadership
styles on organisational decisions in differing situations, through examining the skills
and styles of successful leaders. Applying management and leadership theories and
models to specific situations will enable learners to assess the impact that different
leadership styles can have on organisational direction.
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Outcomes of learning and assessment criteria
To pass this unit, the learner needs to demonstrate that they can meet all the
outcomes of learning. The assessment criteria determine the standard required to
achieve the unit.
Outcomes of learning Assessment criteria
1 Understand the
relationship
between
management and
leadership
1.1 Discuss the similarities between management and
leadership
1.2 Assess the merits of the argument that management
is different from leadership
1.3 Evaluate the impact of both management and
leadership styles on staff in organisations
2 Understand the
features that
underpin effective
leadership
2.1 Assess the relationship between leadership style and
leadership behaviour
2.2 Explain how leadership behaviour is linked with
leadership qualities in effective leaders
2.3 Evaluate the importance of context on leadership
styles and qualities
3 Be able to apply
theories of
management and
leadership in
organisational
contexts
3.1 Examine the argument that leaders are born and not
made
3.2 Critically assess the impact of leadership in a selected
organisation using appropriate theories
3.3 Review the impact of selected theories of
management and leadership on organisational
direction of a selected organisation
4 Be able to advise
on the
management and
leadership skills
required for
selected roles in
an organisation
4.1 Propose methods to identify the skills required for
leadership of a given role in a selected organisation
4.2 Recommend a style of leadership that is suitable to
the role and appropriate to the culture in a selected
organisation
4.3 Make justified evaluations of recommended leadership
skills required for a selected role in an organisation
Specification – Pearson SRF BTEC Level 6 Professional Diploma qualification
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Unit content
1 Understand the relationship between management and leadership
Management and leadership:
? definitions of management
? perspectives on leadership
Management and leadership style:
? autocratic, charismatic, persuasive, participative
? influences on style
? emotional leadership styles
? differentiation between management and leadership styles in given situations
? Blake and Mouton’s managerial/leadership grid
2 Understand the features that underpin effective leadership
Leadership behaviour:
? theories
? differences between management and leadership in terms of behaviours
Leadership qualities:
? honesty, enthusiasm, confidence, charisma, intelligence, knowledgeable, able,
good communicator, respect, compassion, sensitivity, strong values
Context:
? organisational context
? situational context
3 Be able to apply theories of management and leadership in organisational
contexts
Theories – current theories:
? types of power and authority
? great man theory
Universal theories:
? difference between transformational and transactional leadership
? charismatic leadership
? leaders who fulfil these definitions
Specification – Pearson SRF BTEC Level 6 Professional Diploma qualification 49
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Situational theories:
? Adair’s Action Centred Leadership model
? Tannenbaum and Schmidt’s continuum of leadership behaviour
? Handy’s best-fit approach
? Hersey and Blanchard’s leadership styles
? difference between situational and contingency theory, e.g. Fiedler
Impact of leadership:
? efficiency, reliability, innovation, adaptation and human resources in the
organisation and sub-units, vision, cultural issues
? levels of leadership
? size and stage of development of organisation, e.g. business start-up versus
established business
? turnaround leadership
4 Be able to advise on the management and leadership skills required for
selected roles in an organisation
Development of management and leadership skills:
? different methods of developing leaders through formal learning
? different ‘on the job’ methods
? benefits of self-help activities
? developing leaders versus recruiting as needed
? creating a learning climate
? model for assessing future leadership requirements, e.g. Council for Excellence
in Leadership and Management diagnostic tools
? leadership competencies
Specification – Pearson SRF BTEC Level 6 Professional Diploma qualification
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Information for tutors
Delivery guidance
A good starting point for outcome of learning 1 is a whole-class discussion. For
example, the tutor could ask if prominent figures are leaders or managers. This will
almost certainly generate some lively debate of delivery of this outcome of learning.
All learners will have had some experience of working with managers and leaders in
social activities and/or in the workplace. Some learners may hold these positions in
the workplace or in other situations. Learners can draw on their own experiences by
working in small groups to discuss the similarities and differences between leadership
and management. Some tutor input will be required to develop understanding of
leadership. Learners could draw on their own experiences to identify situations where
these styles have been demonstrated. This could be followed by case studies with
learners working in small groups to discuss the management and leadership styles in
each of the situations. A good way to conclude outcome of learning 1 is to return to
the opening discussion on the two prominent figures. This could be an open
discussion or it could be conducted in pairs or small groups. Learners could be asked
if their initial perceptions about leadership and management have changed and to
feedback to the class on their current views.
Outcome of learning 2 will require some input from the tutor on leadership behaviour
and leadership qualities. This can be approached by using topical examples of
situations where leadership qualities and behaviour are in the public eye. A good
starting point here is to take some examples of current prominent leaders. Video
clips may be available if the leaders have appeared on television. Learners can then
be put into small groups with a list of agreed qualities and behaviours and be asked
to score the leaders against these lists. They can also be asked to compare the
strengths and weaknesses of the leaders in terms of their qualities and behaviour.
Learners can be introduced to the importance of context to the leadership styles used
through the use of case studies. Historical and contemporary examples can be
equally effective here. Learners could work in pairs to discuss the leadership style of
leaders such as Winston Churchill in the contrasting contexts of war and peace
situations. They could look at the leadership style of a contemporary industry leader
such as Willie Walsh in the context of the British Airways cabin crew dispute.
Learners could feed back their conclusions to the group.
For outcome of learning 3, there will need to be tutor input on the theories of
leadership and management. There are many theories of management and
leadership which have evolved and developed over a long period. There can be a
great deal of overlap between them. Tutors could give an overview of the
development of the different approaches as an introduction. This could be followed by
a more detailed look at selective theories from the main schools of thought. Tutors
could use the theories to lead group discussions on leaders who are facing the
challenges raised by current issues.
For outcome of learning 4, tutors will need to provide learners with guidance on the
methods of identifying leadership skills. A useful way of consolidating learning is to
ask learners to apply this and to identify a given role in their own organisation. It
could be their own role or it could be the role of a superior or a subordinate provided
that they are in a leadership or management position in the organisation. Learners
could work in pairs or in small groups to discuss the methods that they would use to
identify the leadership skills required for these roles. They could also identify which
methods would be the most appropriate in different circumstances and different
organisational contexts. The tutor could use the results of this exercise by asking
learners to apply their understanding of leadership styles covered in outcome of
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learning 1. They could work in the same groups to discuss their choice of leadership
style for their selected roles.
Assessment guidance
The learner must apply their understanding of management and leadership to a given
role either within their own organisation or a real or simulated organisation in a case
study.
Suggested resources
Books
Adair J – Effective Leadership: How to be a Successful Leader (Pan, 2009)
ISBN 978-0330504195
Adair J – How to Grow Leaders: The Seven Key Principles of Effective Leadership
Development (Kogan Page, 2009) ISBN 978-0749454807
Anderson M – The Leadership Book (Pearson, 2010) ISBN 978-0273732044
Dalton K – Leadership and Management Development: Developing Tomorrow’s
Managers (Pearson, 2010) ISBN 978-0273704706
Gold J, Thorpe R and Mumford A – Leadership and Management Development (CIPD,
2010) ISBN 978-1843982449
Kouzes J M and Posner B Z – The Leadership Challenge, 4th Edition (Jossey-Bass,
(2008) ISBN 978-0787984922
Mullins L J – Management and Organisational Behaviour, 9th Edition (Financial
Times/Prentice Hall, 2010) ISBN 978-0273724087
Radcliffe S – Leadership: Plain and Simple (Pearson, 2009)
ISBN 978-0273730897
Journals
Management Today (Haymarket Business Media)
People Management (Chartered Institute of Personnel and Development)
Professional Manager (Chartered Management Institute)
Training Journal (www.trainingjournal.com)
Specification – Pearson SRF BTEC Level 6 Professional Diploma qualification
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Websites
www.cipd.co.uk Chartered Institute of Personnel and Development
www.leadershipnow.com Articles and blogs on leadership challenges
www.managementhelp.org Free management library for articles and blogs on
leadership
www.managers.org.uk Chartered Management Institute – searchable
database that members can use to access journal
articles and other publications
www.peterhoney.com Questionnaires and trainer packs
www.businessballs.com Free management library with articles
www.teamtechnology.co.uk Case studies/articles on leadership and
management
Specification – Pearson SRF BTEC Level 6 Professional Diploma qualification 53
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Unit 6: Entrepreneurship in Business
Level: 6
Notional Learning Hours: 150
Value (NLH/10): 15
SRF unit code: 20445E
This unit is internally assessed
Unit aim
The aim of this unit is to provide an understanding of successful entrepreneurship
and the need for it in today's economy. The unit also provides the skills to plan a
viable entrepreneurial business idea and strategies for its growth.
Unit introduction
Across the world, entrepreneurial ventures are creating and bringing to market new
products and services, and this has an important impact on the pace of social and
economic change.
The unit introduces learners to the nature of entrepreneurship and then considers
how the entrepreneurial process is used to exploit business opportunities in
established organisations, and the potential and challenges this entrepreneurship
brings.
Developing a strategy to provide vision and direction for the venture is essential for
success and learners will examine ways that entrepreneurs develop a business idea,
and through using market research methods, learners will have the opportunity to
develop a business plan, taking account of any legal, financial and ethical issues.
Growth of the business venture needs to be approached from a number of
perspectives and in this unit learners will examine the issues affecting growth in the
key areas such as finance, marketing, resources and personal skills development.
On completion of the unit learners will have an understanding of the characteristics
of successful entrepreneurship and how strategies can be planned to develop
business ventures.
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Outcomes of learning and assessment criteria
To pass this unit, the learner needs to demonstrate that they can meet all the
outcomes of learning. The assessment criteria determine the standard required to
achieve the unit.
Outcomes of learning Assessment criteria
1 Understand the
scope for
entrepreneurship
in established
organisations in
today’s economy
1.1 Discuss how entrepreneurship can be encouraged
within organisations
1.2 Analyse what may limit entrepreneurship within
organisations
1.3 Evaluate how the entrepreneurial process contributes
to the economy
2 Understand how to
develop successful
entrepreneurial
business ideas
2.1 Explain how successful business entrepreneurs
develop business ideas
2.2 Explain the purpose of a feasibility analysis when
developing business ideas
2.3 Critically evaluate methods for exploring opportunities
and generating business ideas
3 Be able to plan a
strategy for a
viable
entrepreneurial
business idea
3.1 Develop a strategy for a viable entrepreneurial
business idea
3.2 Conduct market research to inform a business plan
for a viable business idea
3.3 Prepare a detailed business plan for a viable business
idea, taking account of any current legal, ethical and
financial implications
4 Be able to plan the
future growth of a
viable
entrepreneurial
business idea
4.1 Assess own entrepreneurial skills and characteristics
to meet future requirements of a viable business idea
4.2 Analyse potential barriers to growth of a viable
entrepreneurial business idea
4.3 Recommend alternative strategies for the growth of a
viable business idea
Specification – Pearson SRF BTEC Level 6 Professional Diploma qualification
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Unit content
1 Understand the scope for entrepreneurship in established organisations in
today’s economy
Encouraging entrepreneurship:
? definition of entrepreneur and entrepreneurship
? reasons for becoming entrepreneurs
? definition of corporate entrepreneurship or intrapreneurship
? benefits for intrapreneurial companies
? culture of corporate innovation
? levels of intrapreneurial activity
? how organisations can encourage
? advantages for self and others
Limitations for entrepreneurship in established organisations:
? resistance
? questioning change
? existing managers’ comfort zone
? decision-making control
? sufficient rewards for the effective intrapreneur
Entrepreneurial process contribution to the economy:
? stages of process
? impact on both the economy and society
2 Understand how to develop successful entrepreneurial business ideas
Generating and developing ideas and opportunities:
? methods
? difference between an opportunity and an idea
? approaches used
? environmental trends
? creative process
? unique selling points
? protecting ideas
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Feasibility analysis:
? definition
? importance
? analysis of industry/market
? analysis of product/service
? organisational analysis
? primary and secondary research
? concept test
? industry attractiveness
? obstacles to overcome
3 Be able to plan a strategy for a viable entrepreneurial business idea
Developing a strategy:
? articulating the vision
? achieving aims
? focus
? taking calculated risks
Market research:
? purpose
? primary research methods
? secondary research
Business plan:
? purpose
? full analysis of the situation
? medium for communication with stakeholders
? objectives of the business
? summary of the proposition
? physical and financial resources
? marketing and promotion
Risk management:
? assessing implications
? legal requirements and constraints
? ethical considerations
? financial risks
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4 Be able to plan the future growth of a viable entrepreneurial business idea
Assessing own entrepreneurial skills:
? skills audit
? development planning
? setting goals
? producing development plan
Barriers to growth:
? expansion strategy consistent with the capabilities of the venture
? resources
? risk
? overcoming barriers to growth
? procurement
? availability of essential supplies
? availability of skilled workforce
Strategies for growth:
? internal growth
? external growth
? franchising
? advantages and disadvantages of internal and external growth strategies
Specification – Pearson SRF BTEC Level 6 Professional Diploma qualification 59
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Information for tutors
Delivery guidance
This unit will help learners to develop an understanding of the characteristics of
successful entrepreneurship and the need for it in today's economy, together with the
skills to create a business plan for an entrepreneurial business idea and develop
strategies for its growth. It is recommended that centres use a wide range of
teaching and learning methods in order for learners to meet all the outcomes of
learning in the unit. These could include lectures, seminars, workshops, project work,
individual and group assessments.
The teaching/learning methods used should draw on material from industry wherever
possible, also learners’ own experiences. This will help learners to develop the
transferable skills necessary in a changing and dynamic environment. Learners will
develop skills to plan a strategy for future growth of a viable business idea.
To introduce the unit learners could discuss the creativity and innovation of emerging
entrepreneurs, identifying the most common characteristics and qualities. Learners
should be encouraged to talk to local entrepreneurs about their experiences, so that
they can understand the steps of the entrepreneurial process, and appreciate the
contribution of entrepreneurial firms to the economy’s strength and stability. There
are many misconceptions concerning who entrepreneurs are and what motivates
them to launch firms and develop their ideas, so learners should explore some of the
common myths and the realities.
For outcome of learning 1, the potential and role of entrepreneurship as change
master in established organisations – intrapreneurship – can be investigated through
examining the factors of successful ventures of intrapreneurial companies. For
example – how 3M encourages internal competition and duplication of resources
whilst most efficient companies try to eliminate them. Learners need to understand
that, although intrapreneurism exploits new opportunities and innovations whilst
reducing risk, it does present some challenges for the intrapreneur and the
organisation, and case studies should be used to illustrate this.
For outcome of learning 2, a guest speaker from a decision-maker in business,
preferably an entrepreneur or someone involved in developing new business ideas at
a large company, could talk about how they assess ideas and the chances of their
success.
Learners should have the opportunity to practise application of different techniques
for generating ideas through examining as many business ideas as possible. They
could then apply the four areas of feasibility analysis to these ideas to determine the
most viable. Learners need to understand that not all good ideas are viable business
opportunities, and case study examples can be used to illustrate the importance of
feasibility analysis in developing successful business ideas. To analyse the
industry/market, learners could select an industry, e.g. the soft drink beverage
industry, and work through Porter’s five forces model in class, discussing how these
five factors assess the attractiveness of the industry.
For outcome of learning 3, the importance of producing a well-defined strategy can
be illustrated through the tutor providing examples of completed and effective
business plans for learners to examine. A powerful, motivating personal vision is one
of the defining characteristics of entrepreneurial management. Guest speakers could
be used to explain how they articulate this vision to give the venture a sense of
direction and purpose.
Learners need to understand the difference between primary and secondary research
and questionnaires can be devised, tested and evaluated in the learner group. Case
Specification – Pearson SRF BTEC Level 6 Professional Diploma qualification
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study material can be used to illustrate the differences between qualitative and
quantitative data, and learners should appreciate the difficulties for an entrepreneur
in collecting relevant information in order to inform the business plan.
Finally, in order to plan the future growth of a viable business idea for outcome of
learning 4, learners need to assess their own entrepreneurial skills and attributes
against the needs of the business idea. A guest speaker, preferably a human
resources professional, could provide guidance and advice on the usefulness of
psychometric tests and how they appraise the results. Learners can access
psychometric tests on the internet – some are free of charge, some require a fee.
By the time learners study outcome of learning 4 they should have examined a range
of different strategies for growth from a wide range of case studies. This will help
them to consolidate their learning in order to recommend the suitability of alternative
strategies for growth of a viable business idea.
Assessment guidance
Assessment for this unit should be evidenced through research carried out on
entrepreneurial organisations and individual entrepreneurs, using either a selected
organisation or a case study approach. Where possible, learners should be
encouraged to use examples from their own organisations. If case studies are used
they must be sufficiently detailed to enable learners to apply their evaluative skills.
A range of assessment methods can be used, for example presentations,
management reports, essays, or professional discussion. All evidence presented must
support achievement of the assessment criteria.
One assignment could cover the evidence requirements for this unit, broken down
into four separate tasks, although centres should write their own assignments to
meet local needs. The learner could act as a business consultant advising on
entrepreneurship, the need for it in today's economy and the skills necessary in order
to plan an entrepreneurial business idea and strategies for its growth.
Learners could analyse the characteristics of successful entrepreneurs and how this
dynamism is exploited in an established business, and create a plan for a viable
business idea, ensuring that strategies for growth are considered. For example,
outcomes of learning 1 and 2 could be addressed by one assignment task on the
nature of entrepreneurship and intrapreneurship. The research on the process for
generating business ideas for outcome of learning 2 could be developed into the plan
for outcome of learning 3. The planning for growth for outcome of learning 4 could be
evidenced through a separate task whereby learners assess the skills and strategies
needed to achieve growth.
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Suggested resources
Books
Barringer B and Ireland R D – Entrepreneurship – Successfully Launching New
Ventures (Pearson 3rd Edition, 2010) ISBN 978-0138158088
Robson C – Confessions of an Entrepreneur – The Highs and Lows of Starting Up
(Pearson Education, 2010) ISBN 978-0273721482
Wickham P A – Strategic Entrepreneurship (FT Prentice Hall 4th Edition, 2006)
ISBN 978-0273706427
Journals
International Journal of Gender and Entrepreneurship (Emerald EarlyCite)
International and Entrepreneurship Management Journal (Springer)
The Economist
Newspapers
The Financial Times
Websites
www.bookbutler.co.uk Database and book price comparison site
www.businessballs.com Business resources including a template business
plan
www.businesslink.gov.uk Business link site for guidance on skills, planning
and legislation for entrpreneurs
www.fsb.org.uk Federation of Small Businesses
www.peterjones.tv Peter Jones’ website and resources
www.sfedi.co.uk UK Sector Skills Body for Enterprise
Specification – Pearson SRF BTEC Level 6 Professional Diploma qualification
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Unit 7: Change Management
Level: 6
Notional Learning Hours: 150
Value (NLH/10): 15
SRF unit code: 20446E
This unit is internally assessed
Unit aim
This unit aims to give learner understanding of the management of change in
organisations and the skills to engage in the process of proposing change in an
organisational context.
Unit introduction
All organisations are in a state of flux, changing their focuses, expanding or
contracting their activities and rethinking their products and services. Many
established organisations often look nothing like they did five years ago and it is
highly likely that over the next five years, organisations will not look as they do
today. Learners will understand that organisational change is often provoked by
some major external driving force such as substantial cuts in funding or competition
from emerging nations such as China or India. Typically, organisations must
undertake organisation-wide change to evolve to a different level in their life cycle.
Learners will discover that successful organisations respond intelligently to regional,
national and global factors which precipitate change. Economic climates, political
trends, changes in consumer demands, management policy or structure, employment
levels and financial resources – all these elements are constantly at play.
Although the unit is underpinned by an exploration of the relevant theoretical
models, the intention is that learners will apply their learning to specific
organisations. This will then enable them to identify issues that require change and
to use appropriate tools and techniques to develop a model for change in an
organisation.
Learners will understand that managers have to be able to introduce and manage
change to ensure that the organisational objectives of change are met. They will
learn that managers have to ensure that they gain the commitment of their people
and that this may involve managing resistance to change, both during and after
implementation. Often, at the same time, they also have to ensure that business
continues as usual.
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Outcomes of learning and assessment criteria
To pass this unit, the learner needs to demonstrate that they can meet all the
outcomes of learning. The assessment criteria determine the standard required to
achieve the unit.
Outcomes of learning Assessment criteria
1 Understand the
background to
change
management in
organisations
1.1 Discuss models of change management
1.2 Evaluate the relevance of models of change
management to selected organisations in the current
economy
2 Understand issues
relating to change
in organisations
2.1 Examine the need for change in an organisation
2.2 Critically evaluate factors that are driving the need for
change in selected organisations
2.3 Explain issues which hinder the process of change
3 Be able to present
proposals for
change in an
organisation
3.1 Identify an area for change in an organisation
3.2 Develop an appropriate model for change in an
organisation
3.3 Plan a model for implementing change in an
organisation
3.4 Examine the resource requirements for implementing
change in an organisation
3.5 Present a proposal for change to relevant
stakeholders in an organisation
4 Be able to prepare
to manage the
change process
4.1 Develop appropriate measures to monitor and
evaluate the progress of change in an organisation
4.2 Create a strategy for managing resistance to change
in an organisation
Specification – Pearson SRF BTEC Level 6 Professional Diploma qualification
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Unit content
1 Understand the background to change management in organisations
Models:
? Kotter
? Kübler-Ross
? Prosci – ADKAR (awareness, desire, knowledge, ability, reinforcement) model
? McKinsey’s 7S (strategy, structure, systems, shared values, skills, style, staff)
framework
? Kurt Lewin’s change management model
? Burke-Litwin’s causal change model
? action research
? gap analysis
2 Understand issues relating to change in organisations
Need for change:
? reasons
? changes in markets, economic downturns, customer expectations, competitive
edge, budget pressures, legislation, size, demographics, mergers, acquisitions,
change in mission, restructuring operations, new technologies, major
collaborations, rightsizing, new programmes such as Total Quality Management
(TQM), re-engineering
Factors driving change:
? change drivers
? economics
? political
? environmental
? financial
? new/loss of markets
? technological advances
? new chief executive
? funding cuts
? be competitive
? mergers
? acquisitions
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Factors hindering change:
? structural inertia
? existing power structures
? employee attitudes
? communication barriers
? embedded values
? exclusion from the change process
? process failures
3 Be able to present proposals for change in an organisation
Areas for change:
? restructuring functional areas
? organisation structures
? technological change
? change of mission, downsizing, rightsizing
Models for change:
? planned versus unplanned
? incremental/slow/gradual
change/transformational/radical/fundamental/easy/difficult change
? light/ medium/ complex models
? project management processes
Resource requirements:
? human resources, e.g. restructuring, interviewing and hiring, redundancies,
training
? physical resources, e.g. equipment, vehicles, buildings
? financial resources, e.g. costs of training, redundancy costs, relocation costs
? new building, refurbishment of existing buildings
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4 Be able to prepare to manage the change process
Measures to monitor and evaluate change:
? action planning
? flow diagrams
? task analysis, standards
? performance tolerance
? agreeing timescales
? setting and measuring outcomes
? measuring input/output
? feedback processes/systems
? control loops
? target revision
? regular and exception reporting
? surveys and interviews
? iterative processes
? formal and informal knowledge channels
? quantitative and qualitative measures
? 80/20 rule
? disseminating awareness
? sustainability
? records/data
? strengths and weaknesses
? indicators of efficiency and effectiveness
? qualitative and quantitative analysis
? review and evaluate progress
? make recommendations
Strategies for overcoming resistance to change:
? education and communication
? participation and involvement
? negotiation and agreement
? manipulation and co-option
? implicit and explicit coercion
? push-pull principle
? exchange principle
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Information for tutors
Delivery guidance
Outcome of learning 1 provides tutors with an opportunity to draw on the
experiences of learners in their own organisations. Learners could be encouraged to
discuss and share their experiences of change within their own workplaces. It is likely
that all employed learners will have different experiences of change in their
workplace. They could be encouraged to discuss the reasons why change was seen to
be necessary in their organisations and to compare the key drivers of that change.
Learners will have different experiences of factors that may have hindered the
change in their organisations and it will be useful for the tutor to draw out these
factors in discussions. Tutors could also draw on topical examples of change. For
example, the ways in which local authorities are considering changes to their
operations following the cuts in public expenditure by the current government.
Having considered the underlying background to change, outcome of learning 2
provides tutors with an opportunity to introduce learners to theoretical models of
change. There is likely to be some lecturing or other form of presentation and the
learning from this can be consolidated through small group discussions based on
analysis of case studies or on how the material applies to organisations familiar to
the students. Learners could conduct their own research into the models and identify
how these could be appropriate to organisations in the current economic climate.
Topical case studies are a useful method of examining the different ways in which
organisations approach the need to change. For example, the Legal Services
Commission’s strategy focused on changing work practices and reducing wasteful
expenditure. Tutors could use a case study such as this to examine the process of
change in an organisation and to link the application back to theoretical models.
Outcome of learning 3 focuses on learners being able to present proposals for change
to relevant stakeholders in an organisation. Learners should discuss their proposals
with their organisation and with the tutor before embarking on their research. When
covering outcome of learning 3, learners could be encouraged as much as possible to
apply the theoretical models to their selected organisation. Small group discussions
can be a valuable vehicle for testing ideas as their proposals begin to develop. Tutors
can lead group discussions on the resource implications of change using case studies
to illustrate this. Learners can present their findings to relevant stakeholders.
A good starting point for outcome of learning 4 is the experience of learners
themselves. It is likely that they will all have experienced change either in a
workplace or in a social situation. Small group discussions are a good method of
drawing out these experiences and of linking them to the issues surrounding
resistance to change in organisations. Tutor input would be required on ways to
monitor and evaluate change. This could be accompanied by case studies on
organisations that have experienced significant change such as Corus Steel or
Unison. Tutors could use case studies to draw out comparisons about the ways in
which the organisations have monitored and evaluated the change process and
outcomes.
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Assessment guidance
For AC1.1, learners will need to show that they understand the different approaches
to models of change management. They need to discuss a minimum of three
established models, highlighting the differences in approach.
For AC1.2, learners will need to show that they are able to evaluate the usefulness of
the models of change management in organisations of their own choice. They need to
use examples from organisations to explain how the model is appropriate in the
context of the selected organisation.
For AC2.1, learners will have identified the need for change from their research of
their selected organisation. They will need to provide reasons why the change is
required and this will need to be linked to their research on the organisation and its
operations.
For AC2.2, it is important that learners show an understanding of the factors that can
hinder change in organisations. Showing an understanding, needs to be more than
just a list of factors that can hinder the change process. Learners need to
demonstrate that they can link the factors to organisational contexts and explain how
these factors have hindered the process of change in organisations.
For AC2.3, learners need to demonstrate that they have researched the organisations
and that they are able to assess the factors in the organisations that are hindering
the process of change.
For AC3.1, learners need to research information from a selected organisation and
identify an area for change. It should be realistic and it should be agreed in the
organisation and with the tutor before the learner proceeds.
For AC3.2 and 3.3, the learner needs to use the results of their research to develop a
model for change in the area of the organisation which has been identified as an area
that requires change. It is expected that learners will apply their knowledge from AC
1.1 when developing their model. Learners will then need to plan how the model
would be utilised in the organisation.
For AC3.4 and 3.5, learners will need to present their proposals to a group of
relevant stakeholders. This could be presented in a number of ways including a
PowerPoint presentation or a briefing session with handouts. It is expected that the
presentation will include a session where stakeholders will have the opportunity to
probe and ask questions.
For AC4.1, learners will need to develop appropriate measures to monitor and
evaluate the progress of change in an organisation. This will need to be more than
just a list of general measures. The measures will need to be practical, workable and
appropriate to the organisational context.
For AC4.2, learners need to create a strategy for managing resistance to change. It
needs to address the issues and provide a workable approach to overcome the
resistance to change. The strategy will need to show awareness that resistance to
change can come from all levels and all sections of an organisation.
Specification – Pearson SRF BTEC Level 6 Professional Diploma qualification 69
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Suggested resources
Books
Blake I and Bush C – Project Managing Change: Practical Tools and Techniques to
Make Change Happen (Financial Times/Prentice Hall, 2008)
ISBN 978-0273720454
Cameron E – Making Sense of Change Management, 2nd Edition (Kogan Page, 2004)
ISBN 978-0749453107
Carnall C – Managing Change in Organizations, 5th Edition (Financial Times/Prentice
Hall, 2007) ISBN 978-0273704140
Diamond M A and Allcorn S – Private Selves in Public Organizations: The
Psychodynamics of Organizational Diagnosis and Change (Palgrave Macmillan, 2009)
ISBN 978-0230613096
Dunphy D, Griffiths A and Benn S – Organizational Change for Corporate
Sustainability (Routledge, 2007) ISBN 978-0415393300
Fullan M – Leading in a Culture of Change (Jossey-Bass, 2007)
ISBN 978-0787987664
Green M – Change Management Masterclass (Kogan Page, 2007)
ISBN 978-0749445072
Helms-Mills J, Dye K and Mills A J – Understanding Organizational Change
(Routledge, 2008) ISBN 978-0415355773
Herold D M and Fedor D B – Change the Way You Lead Change (Stanford University
Press, 2008) ISBN 978-0804758758
Kehoe D – Leading and Managing Change (McGraw-Hill Professional, 2007)
ISBN 978-0070137882
Leban B – Managing Organizational Change, 2nd Edition (John Wiley and Sons, 2007)
ISBN 978-0470897164
Lewis S, Passmore J and Cantore S – Appreciative Inquiry for Change Management
(Kogan Page, 2007) ISBN 978-0749450717
Nelson S – Implementing for Results (ALA Editions, 2009)
ISBN 978-0838935798
Stewart Black J and Gregersen H B – It Starts with One: Changing Individuals
Changes Organizations (Pearson Education/Wharton School Publishing, 2008)
ISBN 978-0132319843
Specification – Pearson SRF BTEC Level 6 Professional Diploma qualification
in Business Innovation Management – Issue 2 – October 2014
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Journals
Academy of Management Journal (Academy of Management)
British Journal of Management (John Wiley and Sons)
California Management Review (University of California, Berkeley)
European Management Journal (Elsevier)
Harvard Business Review (Harvard Business Publishing)
Journal of General Management (Braybrooke Press Ltd)
Journal of Management Studies (John Wiley and Sons)
Management Today (Haymarket Business Media)
MIT Sloan Management Review (Massachusetts Institute of Technology)
Websites
www.businessballs.com Change management articles and links
www.changingminds.org Useful articles on change management by leading
theorists
www.managementhelp.org Articles on strategic change and further links
www.themanager.org The ‘7s’ model of change
www.mindtools.com Lewin’s change management model
www.12manage.com Articles on the framework for change
Specification – Pearson SRF BTEC Level 6 Professional Diploma qualification 71
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Specification – Pearson SRF BTEC Level 6 Professional Diploma qualification
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Unit 8: Contemporary Issues in Business
Level: 6
Notional Learning Hours: 150
Value (NLH/10): 15
SRF unit code: 20448E
This unit is internally assessed
Unit aim
This unit aims to give the learner understanding of contemporary issues in business
resulting from changes in the business environment, together with the skills to apply
this understanding in an organisational context.
Unit introduction
The contemporary issues in engineering result from the ever-changing business
environment. All organisations, whatever their size and whether in the public or
private sector, operate in a constantly changing environment. Within this change,
organisations have the opportunity to develop and grow. This unit explores the issues
and the resultant skills needed to work effectively in this changing environment.
Organisations need to be concerned with the social, cultural and moral issues that
affect their business activities and in this unit learners will examine the implications
of this behaviour for an engineering organisation and its stakeholders. Taking an
ethical stance on topical issues such as whistleblowing, work-life balance and using
social networking as a business communication tool are all issues that learners will
investigate in this unit.
Learners will understand that key aspects of the business environment overlap and
interlink and that any changes cannot be neatly fitted into one specific area. This unit
will enable learners to appreciate the importance of understanding an organisation’s
environment in order to assure business success by being able to react to and
anticipate any changes that might affect it.
Finally, learners will assess how changes in the environment impact on business skills
requirements. They will investigate what business skills they need and the
communication requirements as a result of changes to the environment.
Specification – Pearson SRF BTEC Level 6 Professional Diploma qualification 73
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Outcomes of learning and assessment criteria
To pass this unit, the learner needs to demonstrate that they can meet all the
outcomes of learning. The assessment criteria determine the standard required to
achieve the unit.
Outcomes of learning Assessment criteria
1 Understand the
social, cultural and
moral issues that
affect
organisations in
the current
business
environment
1.1 Explain ways in which organisations can improve
workplace welfare
1.2 Assess approaches used by organisations to the
management of diversity
1.3 Evaluate the impact on stakeholders of the social,
cultural and moral issues facing a selected
organisation
2 Understand the
ethical issues that
affect
organisations in
the current
business
environment
2.1 Explain the ethical issues businesses should consider
in the current business environment
2.2 Evaluate the implications of ethical behaviour on the
stakeholders and the business
3 Be able to evaluate
current ethical
issues in a
business
3.1 Research a current ethical issue which is affecting a
selected organisation
3.2 Propose ways in which an organisation could improve
the ethics of their operations
4 Be able to assess
how changes in
the environment
are impacting on
business skills
requirements
4.1 Examine the drivers for change affecting required
business skills
4.2 Report on the impact of changes on business skill
requirements in a selected organisation
4.3 Plan to improve communication skills requirements
Specification – Pearson SRF BTEC Level 6 Professional Diploma qualification
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Unit content
1 Understand the social, cultural and moral issues that affect organisations
in the current business environment
Social, cultural and moral issues:
? equal opportunities, diversity
? disability
? discrimination
? racism
? harassment
? bullying
? whistleblowing
? privacy
? confidentiality (up-to-date legislation covering these issues must be used)
? workforce profiling
? dignity in the workplace
? multi-culturalism, stereotyping
? labelling
? prejudice, glass ceilings
? human rights
? moral imperatives
? value rigidity
? empowerment
? management styles
? work-life balance
? childcare provision
? professional development
? employee participation
Implications:
? adapting business behaviour
? influence of stakeholders and pressure groups
? impact on competitiveness
? reputation
? public image
? ethical trade
? value-added
? complying with relevant legislation and codes of practice
Specification – Pearson SRF BTEC Level 6 Professional Diploma qualification 75
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2 Understand the ethical issues that affect organisations in the current
business environment
Ethical issues:
? corporate governance
? corporate social responsibility
? environment
? sustainability
? human rights
? corruption
? trading fairly
? legal and regulatory compliance
? business practices
? working conditions
? individual ethical responsibilities
? stakeholders’ interests
3 Be able to evaluate current ethical issues in a business
Issues:
? ethical issues, e.g. corporate social responsibility, globalisation, cultural
imperialism, ecology, environment, fair trade, corruption, child labour, carbon
footprint, sources of timber, outsourcing, personal attitudes, whistleblowing,
contribution of business to the community, ethics in sales and marketing,
product placement, ‘green washing’, ethics in intellectual property (software
piracy, counterfeiting, peer-to-peer file sharing)
Implications:
? responding to ethical pressures; implementing ethical practices
? global, e.g. environment
? corporate, e.g. legal and regulatory compliance, policies and practices
? individual (employee, consumer)
4 Be able to assess how changes in the environment are impacting on
business skills requirements
Drivers for change:
? drivers, e.g. technology, globalisation, information
? need for instant information
? current business and economic climate
? political trends
Specification – Pearson SRF BTEC Level 6 Professional Diploma qualification
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Business skills:
? cross-cultural skills
? collaborative working
? management style
? customer service
? team development
? social and interpersonal skills
? entrepreneurial skills
? online and direct communication processes
? social networking
? impact of technology on interpersonal skills
? communication etiquettes
Specification – Pearson SRF BTEC Level 6 Professional Diploma qualification 77
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Information for tutors
Delivery guidance
The approach to delivery should provide a theoretical underpinning and draw from
current news media or professional journals. An active learning environment should
be provided in which learners are encouraged to explore the implications of the
contemporary issues raised in this unit. Activities should be designed to encourage
learners to develop the ability to evaluate issues from different viewpoints.
The delivery of outcome of learning 1 could begin with a group exercise where
learners discuss how to improve workplace welfare. Learners should be encouraged
to draw on their own experiences of work and they could record their discussions on
paper that is posted around the classroom to enable other learners to share their
thoughts. The tutor could then use this work to conduct a whole-class discussion on
the implications of any recommendations on organisations and on individuals. Other
useful classroom activities include learners using the internet to research examples of
good and bad practice relating to the social, cultural and moral issues raised. It is
important that the tutor thoroughly examines each of the social, cultural and moral
issues affecting organisations and provides up-to-date information on relevant
legislation. Where possible, tutors should bring in current examples from
organisations.
For outcome of learning 2, it is important that the tutor provides a theoretical
underpinning of the ethical issues raised, as well as drawing on current ethical issues
from news media. It would be a useful exercise to look at leading examples of ethical
business and explore the implications on stakeholders and the organisation.
For outcome of learning 3, learners will build on what they have already studied
about ethical issues by exploring the impact of ethical issues on selected
organisations. Learners could be asked to lead the delivery of this outcome of
learning by individually selecting a different ethical issue and exploring how it is
affecting a selected business. Learners could then share their findings with the rest of
the class. This activity could contribute towards their assessment.
In outcome of learning 4, learners will study drivers for change and how these
drivers impact on business skills requirements. It should be possible to build on
learners’ existing knowledge of changes in the environment and the tutor could
conduct a tutor-led discussion on the impact of these changes on work skills. Looking
at some current, well-selected examples from business that illustrate this process
would be beneficial. It may be an interesting exercise for learners to explore their
own work skills and assess whether they need to plan to improve their skills based on
changes in the environment. In doing this the tutor could provide a workshop-style
session where learners take part in a carousel of activities designed to update their
work skills based on the changing environment.
Specification – Pearson SRF BTEC Level 6 Professional Diploma qualification
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Assessment guidance
The assessments need to be based on carefully selected and well-developed case
studies or on real organisation(s). The assessment can be designed to direct learners
to find their own organisations or learners can be given suitable real organisations. If
learners are employed they may be able to use their own organisations for some of
the assessment criteria. Where possible, an organisation can be used for more than
one or all of the outcomes of learning but it is equally acceptable to use a different
organisation for each outcome of learning.
For outcomes of learning 1 and 2 learners could be given a scenario where they have
to provide an information pack for organisations to help them understand current
social, cultural, moral and ethical issues affecting organisations. Learners need to
provide enough detail with required analysis and evaluation to show that they have
met the assessment criteria. A number of tasks are needed to ensure that learners
have met the assessment criteria and tasks should direct learners to provide an
explanation of ways in which organisations can improve workplace welfare and an
assessment of approaches used by organisations to manage diversity and ethical
issues in the current business environment. Learners also need to select an
organisation to use to evaluate the impact of social, cultural and moral issues on
stakeholders and the impact of ethical behaviour on stakeholders and the
organisation. The organisation used could be the same one that the information pack
is directed towards or the learner could bring in other organisations.
For outcome of learning 3 learners could produce a report on the findings of their
own research into how one current ethical issue is affecting a selected organisation.
It is likely that the organisation selected will be one that has received negative media
attention for its business ethics. The report should include their own proposals about
how the organisation could improve the ethics of their operations.
For outcome of learning 4, learners could be given a made-up scenario where they
have been asked to provide training for their colleagues of a selected organisation
about how changes in the environment impact on business skills requirements. This
could involve learners producing a presentation where they examine, in general, how
drivers for change are affecting required business skills, before exploring how these
drivers have brought about change in the business skill requirements in a selected
organisation. Finally, learners need to put together a plan to help their colleagues to
improve communication skills in a selected organisation.
Suggested resources
Books
Crane A and Matten D – Business Ethics: Managing Corporate Citizenship and
Sustainability in the Age of Globalization (Oxford University Press, 2006)
ISBN 978-0199284993
Kotler P and Lee N – Corporate Social Responsibility: Doing the Most Good for Your
Company and Your Cause (John Wiley and Sons, 2005)
ISBN 978-0471476115
Mallin C – Corporate Governance (Oxford University Press, 2009)
ISBN 978-0199566457
Solomon J – Corporate Governance and Accountability (John Wiley and Sons, 2010)
ISBN 978-0470695098
Visser W, Matten D, Pohl M and Tolhurst N – The A to Z of Corporate Social
Responsibility (John Wiley and Sons, 2010) ISBN 978-0470686508
Specification – Pearson SRF BTEC Level 6 Professional Diploma qualification 79
in Business Innovation Management – Issue 2 – October 2014
Journals
Management Today (Haymarket Business Publications)
Professional Manager (Chartered Management Institute)
The Economist (The Economist Group) has articles on corporate social responsibility
from time to time.
The Times (Times Newspapers Ltd) has daily business pages which feature items on
a corporate social responsibility from time to time.
Websites
www.businesslink.gov.uk Government’s online resource for businesses
including advice on environmental issues and
efficiency
www.unodc.org/unodc/en/treaties/CAC/index.html
United National Convention Against Corruption
www.un.org/documents/ga/conf151/aconf15126-1annex1.htm
Rio Declaration on Environment and Development
Specification – Pearson SRF BTEC Level 6 Professional Diploma qualification
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Unit 9: Applying Lean Principles to
Business Operations
Level: 6
Notional Learning Hours: 150
Value (NLH/10): 15
SRF unit code: 20447E
This unit is internally assessed
Unit aim
The aim of this unit is to provide the understanding needed to evaluate the
effectiveness of the quality management of business operations, and to develop the
skills needed to apply lean tools and techniques for planning a quality change.
Unit introduction
Business operations includes how organisations produce goods and services. Every
organisation has an operations function.
In this unit learners will consider the meaning and role of business operations and its
importance and management in all types of organisation. This knowledge will enable
learners to evaluate the suitability of the management processes in the business
operations of an organisation in their pursuit of quality.
Learners will gain knowledge and understanding of the principles and concepts
associated with quality management. This unit gives learners the opportunity to look
at how managers can improve business operations through using different
approaches. The lean philosophy has been transposed to non-manufacturing
organisations and in this unit learners will assess the suitability of using different
tools and techniques to improve work activities.
Learners will examine the practices needed for planning a quality improvement
programme. Through identifying and planning the resources needed to meet specific
organisational objectives, learners will be able to make a significant contribution to
planning the introduction of a quality change to improve organisational performance.
Critical thinking and self-directed study are important aspects of working at this
level.
Finally, learners will consider the performance measurement methods available to
evaluate the impact of the improvement on the business activities.
Specification – Pearson SRF BTEC Level 6 Professional Diploma qualification 81
in Business Innovation Management – Issue 2 – October 2014
Outcomes of learning and assessment criteria
To pass this unit, the learner needs to demonstrate that they can meet all the
outcomes of learning. The assessment criteria determine the standard required to
achieve the unit.
Outcomes of learning Assessment criteria
1 Understand the
suitability of the
management of
business
operations in an
organisation
1.1 Discuss why the management of business operations
is important in any organisation
1.2 Evaluate the suitability of existing business operations
management for a selected organisation
2 Understand the
role of quality
management in an
organisation
2.1 Explain the importance of a total quality approach to
achieving organisational excellence
2.2 Critically evaluate the suitability of existing quality
processes for a selected work activity in an
organisation
3 Be able to use lean
methods to
improve the
management of
business
operations in an
organisation
3.1 Compare the benefits of using lean tools and
techniques with other approaches when managing the
improvement of business operations in an
organisation
3.2 Propose lean tools and techniques which can be used
for improvement in selected work activities in an
organisation
3.3 Justify the most appropriate approach for promoting
continual improvement of business operations in a
selected organisation
4 Be able to plan a
quality
improvement in an
organisation
4.1 Plan for a quality change to improve organisational
performance
4.2 Recommend resources, tools and systems to support
business processes in a quality improvement in an
organisation
5 Be able to evaluate
the impact of
quality
improvement on
an organisation
5.1 Critically evaluate the impact of the quality
improvement on business activities in a selected
organisation
Specification – Pearson SRF BTEC Level 6 Professional Diploma qualification
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Unit content
1 Understand the suitability of the management of business operations in an
organisation
Operations management:
? activity of managing the resources needed for the production and delivery of
products and services
? managing processes
? operations as a core function and as an activity
? transformation process
? importance
? relevance for all managers and organisations
2 Understand the role of quality management in an organisation
Quality:
? definitions
? quality gurus
? evolution of quality
? product quality and service quality, benchmarking
? best practice
? self-assessment
? vision
? continuous improvement
? quality models
? quality characteristics
Total Quality Management (TQM):
? definition
? philosophy, principles, methods, techniques
? quality costs
Importance of quality management:
? improvement in quality of the final product or service
? reduction in wasted resources
? increased productivity as effective use of time by staff
? long-term increase in market share, leading to sustained competitive advantage
? motivated workforce as employees realise their full potential
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3 Be able to use lean methods to improve the management of business
operations in an organisation
Lean principles:
? philosophy
? definition
? background
? benefits
? design and state of the workspace
? differences between lean production and lean organisation techniques
Lean tools and techniques:
? applying the tools
? tools
4 Be able to plan a quality improvement in an organisation
Planning for a quality change:
? identifying improvement needs
? developing plan
? gap analysis
? setting aims and objectives
? justification
? prioritising activities
? identifying constraints
? success criteria
? review
Designing systems:
? process, objectives, systems and operations
? layout and flow of processes
? approaches to improvement
Specification – Pearson SRF BTEC Level 6 Professional Diploma qualification
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Resources, tools and systems:
? project-management techniques
? facilities
? workforce
? machinery
? transportation
? technology
? quality systems
? quality circles
? TQM
? aligning resources with objectives
? resource constraints
Benefits of a quality change:
? improved business performance, corporate image, reputation, standing
? competitor response
? impact on other functions and departments
5 Be able to evaluate the impact of quality improvement on an organisation
Performance measures:
? key performance indicators
? objectives
? balanced scorecard
? difference between performance measurement and performance management
? benchmarking
Evaluation of quality improvement:
? monitoring and evaluation techniques
? action learning
? business performance indicators
? customer feedback
? effect on sales and profit
Specification – Pearson SRF BTEC Level 6 Professional Diploma qualification 85
in Business Innovation Management – Issue 2 – October 2014
Information for tutors
Delivery guidance
This unit will help learners develop an understanding of the factors involved in lean
quality management operations through considering a quality improvement in the
business operations of an organisation. It is recommended that centres use a wide
range of teaching and learning methods so that learners achieve all of the outcomes
of learning in the unit. These could include lectures, seminars, workshops, project
work, individual and group assessments.
The teaching/learning methods used should draw on material from industry wherever
possible, also learners’ own experiences. This will help learners to develop the
transferable skills necessary in a changing and dynamic environment. Learners will
develop skills to apply lean tools and techniques when planning a quality change.
To introduce the unit and outcome of learning 1, it would be useful for learners to
have a discussion on the historical development of operations management. Learners
could then explore the functions and activities of operations management in an
organisation, including their own. Learners need to understand how operations
management impacts on the achievement of organisational objectives and through
individual and group work, they could reflect and evaluate whether their own and
other organisations’ operations management has been successful or not. Case
studies can be used to demonstrate the importance of operations management.
For outcome of learning 2, learners need to understand the importance of managing
quality in an organisation to achieve organisational excellence. Learners could assess
quality management in their own organisations and guest speakers could be used to
give learners useful information on how other organisations manage quality.
For outcome of learning 3, learners need to understand the concept of lean as an
approach to operations management that emphasises the continual elimination of
waste. A guest speaker could explain how the principles and techniques of lean
manufacturing have affected non-manufacturing environments to improve business
performance. Learners could research the lean techniques used in their own
organisations, and use case study exercises to apply these techniques and explore
the differences between the improvement approaches in terms of a gradual,
continuous approach to change or a more radical ‘breakthrough’ change.
For outcome of learning 4, learners will need to understand the processes involved in
order to plan a quality change and the resources needed to achieve success. Group
activities can involve simulation exercises to plan a quality improvement, identifying
the resources, tools and systems that need to be in place. Again, case studies and
visiting speakers can be used to help learners understand the importance of planning
to ensure a successful outcome.
For outcome of learning 5, learners need to understand how to evaluate the
outcomes of a quality improvement. Tutors could encourage learners to use their
experiences and knowledge gained in their own organisations where quality
improvements may have been introduced. They also need to know about the various
evaluation methods and how they can be put in place to measure success. Case
studies or guest speakers would be useful to help examine the impact of the
improvement on the business.
Specification – Pearson SRF BTEC Level 6 Professional Diploma qualification
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Assessment guidance
Assessment for this unit should be evidenced through research carried out on the
operations management either in a selected organisation or using a case study
approach. Where possible, learners should be encouraged to use examples from their
own organisations. If case studies are used they must be sufficiently detailed to
enable learners to apply their evaluative skills.
A range of assessment methods can be used, for example presentations,
management reports, essays, or professional discussion. All evidence presented must
support achievement of the assessment criteria.
One assignment could cover the evidence requirements for this unit, although
centres should write their own assignments to meet local needs. The learner could
act as a lean quality operations consultant for an organisation of their choice that
wants to improve its quality management operations. They could investigate the
existing quality operations within the organisation, and apply lean tools and
techniques to plan a quality improvement for a selected work activity, ensuring that
monitoring systems are in place to evaluate the outcomes of the improvement.
Suggested resources
Books
Aikens C H – Quality Inspired Management (Prentice Hall, 2011)
ISBN 978-0131197565
Fliedner EB – Lean Management (Business Expert Press, 2011)
ISBN 978-1606492475
Goetsch D L and Davis S B – Quality Management for Organisational Excellence, 6th
Edition (Pearson, 2010) ISBN 978-0135019672
Johnston R, Chambers S, Slack N, Harrison A and Harland C – Cases in Operations
Management, 3rd Edition (Financial Times/Prentice Hall, 2002)
ISBN 978-0273655312
Oakland J S – TQM: Text with Cases, 3rd Edition (Butterworth-Heinemann, 2003)
ISBN 978-0750657402
Slack N, Chambers S and Johnston R – Operations Management, 6th Edition
(Financial Times/Prentice Hall, 2010) ISBN 978-0273731603
Journals
Production, Planning and Control (Taylor and Francis)
The TQM Magazine (Emerald)
Specification – Pearson SRF BTEC Level 6 Professional Diploma qualification 87
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Websites
www.efqm.org EFQM – helping European organisations learn
from each other and improve performance
www.hse.gov.uk Health and Safety Executive
www.iso9000.org International Quality Systems Directory
www.managerwise.com Business management information and resources
www.praxiom.com ISO quality standards translated into
understandable language
www.quality.co.uk Quality Network – a guide to subject of quality
management
www.uk.kaizen.com Information on Kaizen tools and techniques
Specification – Pearson SRF BTEC Level 6 Professional Diploma qualification
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Unit 10: Project Management for
Engineering
Level: 6
Notional Learning Hours: 150
Value (NLH/10): 15
SRF unit code: 20449E
This unit is internally assessed
Unit aim
The aim of this unit is to give learners an understanding of the techniques and skills
required for effective project management.
Unit introduction
Over the last decade companies and organisations have taken a much more strategic
interest in project management as they seek to address pressures to reduce costs
and manage projects effectively. Although projects are undertaken in all areas and
sectors, it is the failure of engineering projects to deliver on time and on cost that
provide unwanted headlines. Knowledge and expertise in effective project
management is an important employability skill which enables engineers to combine
academic subject expertise with project management to contribute to profitability.
Outcome of learning 1 raises learners’ awareness of the status of project
management and enables understanding of project-management processes.
Outcome of learning 2 examines the characteristics and attributes of project
managers together with human resources issues, including planning and risk
assessment for project personnel. Project organisation and costing are covered in
outcome of learning 3. Here the concept of earned value is extended to encompass
value and risk management as a technique for optimising project benefits and costs.
Outcome of learning 4 allows learners to demonstrate their project-management
expertise by applying the knowledge and skills gained from outcomes of learning 1 to
3 to a real project in their workplace.
Specification – Pearson SRF BTEC Level 6 Professional Diploma qualification 89
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Outcomes of learning and assessment criteria
To pass this unit, the learner needs to demonstrate that they can meet all the
outcomes of learning. The assessment criteria determine the standard required to
achieve the unit.
Outcomes of learning Assessment criteria
1 Understand
project-
management
processes
1.1 Describe the role of professional bodies in setting
standards for project management
1.2 Describe in detail the concept of the project lifecycle
1.3 Describe in detail the important features of the five
project-management processes
1.4 Compare and contrast project lifecycle and project-
management processes
2 Understand
personnel issues in
project
management
2.1 Critically evaluate the role of the project manager
2.2 Devise the staffing management plan for a project
involving more than ten personnel
2.3 Devise the personnel risk-management plan for a
project involving more than ten personnel
3 Understand project
execution
3.1 Describe in detail how project breakdown structure
and work breakdown structure are used for project
scheduling
3.2 Compare and contrast cost control techniques used in
project management
3.3 Critically evaluate the role of value and risk-
management plans in project management
4 Be able to
undertake project-
management
activities
4.1 Apply techniques and procedures to monitor and
report project progress
4.2 Plan actions arising from project progress
measurement information
4.3 Critically evaluate project outcomes
Specification – Pearson SRF BTEC Level 6 Professional Diploma qualification
in Business Innovation Management – Issue 2 – October 2014
90
Unit content
1 Understand project-management processes
Emerging standards in project management:
? standards and professional recognition, e.g. Project Management Body of
Knowledge (PMBOK), Projects IN Controlled Environments (PRINCE2),
Association for Project Management (APM)
Project lifecycle:
? lifecycle models, e.g. spiral development, Concept Assessment Development
Manufacturing In-Service Disposal (CADMID)
? project phasing, e.g. milestones, phases, stage gates
? front end loading
Project-management processes:
? project process groups (initiating, planning, executing, monitoring and
controlling, closing)
2 Understand personnel issues in project management
Project manager:
? roles
? responsibilities
? training
? decision making
? ethics
? professional practice
? communication skills, e.g. IT, written, verbal, meetings
? liaison skills, e.g. with project sponsor, with contractors, with consultants
? managerial skills, e.g. people management, time management, change
management, information management, negotiation, delegation
Specification – Pearson SRF BTEC Level 6 Professional Diploma qualification 91
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Project team:
? staffing management plan
? recruitment (processes, timetable, release)
? organisational charts (roles, responsibilities)
? skills matrix
? motivation
? training
? teamwork
? performance assessment
? health and safety
? equal opportunities
Risk management – personnel:
? risk assessment, e.g. recruitment gaps, skills gaps, absenteeism, ill health,
injury
? personnel risk analysis
? risk-mitigation
? risk management plan
3 Understand project execution
Project organisation:
? project breakdown structure (PBS)
? work breakdown structure (WBS)
? scheduling techniques (relationship between schedules WBS and PBS)
? project integration management
? Gantt charts
? milestones
? deliverables
? critical path analysis
? execution strategy
Specification – Pearson SRF BTEC Level 6 Professional Diploma qualification
in Business Innovation Management – Issue 2 – October 2014
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Project costing:
? procurement plan
? estimating
? budget allocation
? cost breakdown structure
? cost performance analysis
? cost control
? cash flow analysis (committed costs, actual costs, contingency)
? optimisation of benefits and costs
? concept of earned value
? value management (value drivers, key performance indicators)
Risk management – project execution:
? project organisation (risk analysis, risk mitigation)
? project costing (risk analysis, risk mitigation)
? time-cost-quality triangle
? value and risk-management plans
4 Be able to undertake project-management activities
Planning and programming:
? techniques for scheduling and programming material (diagrams and charts),
equipment, financial and human resources
Project progress and control:
? techniques and procedures (control, monitor and report progress)
? progress management information, e.g. completed work, work in progress,
costs, claims for variations, delays, disruption, cash flow
? post-project appraisal
Specification – Pearson SRF BTEC Level 6 Professional Diploma qualification 93
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Information for tutors
Delivery and assessment guidance
Outcomes of learning 1 to 3 are likely to require learners to read the recommended
textbooks and undertake internet searches in order to fully appreciate and
understand the importance and status of project management.
Outcome of learning 4 should, if possible, be based on a project or projects in the
learner’s workplace. If this is not possible, case study materials will need to be made
available.
The project management unit covers project management in its widest sense for
middle management and above, personnel involved in large projects, i.e. more than
ten personnel.
Care must be taken in assessing learner work to ensure that the level of discussion,
analysis, evaluation and reflection meets expectations for professional project
managers and academic work at final year degree level, i.e. level 6.
Suggested resources
Books
Nokes S and Kelley S – The Definitive Guide to Project Management (Prentice Hall,
2007) ISBN 978-0273710974
Duncan W R – A Guide to the Project Management Body of Knowledge (Project
Management Institute, 2009) ISBN 978-1933890517
Lock D – Project Management (Gower Publishing Ltd, 2007),
ISBN 978-0566087721
Dallas M F – Value and Risk Management: A Guide to Best Practice (Wiley-Blackwell,
2006) ISBN 978-1405120692
Websites
www.apm.org.uk The Association for Project Management
www.prince2.com Formation about PRINCE 2 courses and
certification for project management
Specification – Pearson SRF BTEC Level 6 Professional Diploma qualification
in Business Innovation Management – Issue 2 – October 2014
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Specification – Pearson SRF BTEC Level 6 Professional Diploma qualification 95
in Business Innovation Management – Issue 2 – October 2014
For further information about the qualifcation featured in this
specifcation or other Pearson qualifcations, please visit our website
(www.edexcel.com/contactus).
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Registered Offce: Edinburgh Gate, Harlow, Essex CM20 2JE. VAT Reg No GB 278 537121
ISBN: 9781446924709
doc_669327651.pdf
During this brief outline pertaining to pearson srf btec level 6 professional diploma in business innovation management.
Pearson SRF
BTEC Level 6
Professional Diploma
in Business Innovation
Management (18772)
Specifcation
First teaching January 2015
Issue 2
A Pearson Self-regulated
Framework qualifcation
Edexcel, BTEC and LCCI qualifcations
Edexcel, BTEC and LCCI qualifcations are awarded by Pearson, the UK’s largest
awarding body offering academic and vocational qualifcations that are globally
recognised and benchmarked. For further information, please visit our qualifcation
websites at www.edexcel.com, www.btec.co.uk or www.lcci.org.uk. Alternatively,
you can get in touch with us using the details on our contact us page at www.
edexcel.com/contactus
About Pearson
Pearson is the world’s leading learning company, with 40,000 employees in more
than 70 countries working to help people of all ages to make measurable progress
in their lives through learning. We put the learner at the centre of everything we do,
because wherever learning fourishes, so do people. Find out more about how we
can help you and your learners at: www.pearson.com/uk
Pearson’s Self-regulated Framework qualifcations
This qualifcation has been approved by Pearson as meeting the criteria for
Pearson’s Self-regulated Framework.
Pearson’s Self-regulated Framework is designed for qualifcations that have been
customised to meet the needs of a particular range of learners and stakeholders.
These qualifcations are not accredited or regulated by any UK regulatory body.
For further information please see Pearson’s Self-regulated Framework policy on
our website.
This specifcation is Issue 2. Key changes have been side-lined. We will inform
centres of any changes to this issue.
References to third-party material made in this specifcation are made in good faith.
We do not endorse, approve or accept responsibility for the content of materials,
which may be subject to change, or any opinions expressed therein. (Material may
include textbooks, journals, magazines and other publications and websites.)
ISBN: 9781446924709
All the material in this publication is copyright
© Pearson Education Limited 2014
Contents
1 Purpose of this specification 1
2 Qualification summary 2
Key information 2
Aim of the qualification 2
3 Centre resource requirements 3
4 Qualification structure 4
5 Assessment 5
6 Centre and qualification approval 5
Approvals agreement 5
7 Quality assurance 5
8 Programme delivery 6
9 Access and recruitment 7
10 Unit format 8
Units 11
Unit 1: Financial Principles and Techniques for Non-specialists 13
Unit 2: Strategic Management 21
Unit 3: Innovation and Creativity in Business 29
Unit 4: Supply Chain Management 39
Unit 5: Management and Leadership 47
Unit 6: Entrepreneurship in Business 55
Unit 7: Change Management 63
Unit 8: Contemporary Issues in Business 73
Unit 9: Applying Lean Principles to Business Operations 81
Unit 10: Project Management for Engineering 89
1 Purpose of this specification
All customised qualifications on Pearson’s Self-regulated Framework have a
specification developed by Pearson.
The purpose of this specification is to set out:
? the aim/objective of the qualification
? the structure and rule of combination of the qualification
? the resources required by the centre to offer the qualification
? the knowledge, skills and understanding which will be assessed as part of the
qualification
? the method of assessment and any associated requirements relating to it
? the criteria against which learners’ level of attainment will be measured
(for example assessment criteria).
This specification must be used for delivery and teaching. It will be used by Pearson
to externally verify and certificate the approved qualification.
If you need any guidance or support related to customised qualifications you should
contact your Pearson representative, who will be happy to provide advice.
Specification – Pearson SRF BTEC Level 6 Professional Diploma qualification 1
in Business Innovation Management – Issue 2 – October 2014
2 Qualification summary
Key information
Pearson SRF BTEC Level 6 Professional Diploma in Business Innovation
Management
Minimum total Notional
Learning Hours (NLH)
1200
Minimum qualification value
(NLH/10)
120
European Credit Transfer and
Accumulation System (ECTS)
60 ECTS credits*
Assessment This qualification is assessed via centre-devised
assessment (internal assessment)
Unit grading information Pass
Overall qualification grading
information
Pass
* The ECTS credit value is calculated on the basis that one credit represents 20 NLH.
The recognition of ECTS credit is at the discretion of Higher Education institutions,
and will depend on the relevance of the prior learning and associated learning
outcomes.
Aim of the qualification
The Pearson SRF BTEC Level 6 Professional Diploma in Business Innovation
Management is for learners who work in, or want to work in, business management.
It gives learners the opportunity to initiate and carry out projects, make business
decisions in complex and unpredictable contexts and identify viable solutions to
problems.
Learners will apply their knowledge and practical skills in the workplace. Full-time
learners have the opportunity to do this through formal work placements and part-
time learners through their employment experience.
Learners will be workplace ready and have academic progression opportunities (to
Level 7 qualifications) for lifelong learning. This qualification enables learners to
become effective and competent business unit managers across the entire value
chain. Learners will gain the knowledge and skills which can be applied across a
variety of sectors and to organisations of all sizes. This qualification will provide equal
benefit for self-employed learners or start-up owners.
Specification – Pearson SRF BTEC Level 6 Professional Diploma qualification
in Business Innovation Management – Issue 2 – October 2014
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3 Centre resource requirements
As part of the approval process, the centre must make sure that the resource
requirements below are in place before offering the qualification.
? The centre must have appropriate physical resources (for example equipment, IT,
learning materials, teaching rooms) to support the delivery and assessment.
? Staff involved in the assessment process must have relevant expertise and
occupational experience.
? There must be systems in place to make sure that there is continuing professional
development for staff delivering the qualification.
? The centre must have appropriate policies in place relating to the delivery of the
qualification.
? The centre must deliver the qualification in accordance with current equality
legislation.
Specification – Pearson SRF BTEC Level 6 Professional Diploma qualification 3
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4 Qualification structure
Pearson SRF BTEC Level 6 Professional Diploma in Business
Innovation Management
The Pearson SRF BTEC Level 6 Professional Diploma in Business Innovation
Management qualification is a minimum of 1200 Notional Learning Hours (NLH).
Learners must achieve all eight mandatory units to the value of 120 to achieve the
qualification.
Mandatory units (all units must be taken)
Unit Unit title Level Notional
Learning
Hours
Value
(NLH/10)
1 Financial Principles and Techniques for Non-
specialists
6 150 15
2 Strategic Management 6 150 15
3 Innovation and Creativity in Business 6 150 15
4 Supply Chain Management 6 150 15
5 Management and Leadership 6 150 15
6 Entrepreneurship in Business 6 150 15
7 Change Management 6 150 15
8 Contemporary Issues in Business 6 150 15
Learners may choose to study additional units if they want to specialise in lean
business operations and/or project management in the engineering sector, to meet
their employer's needs and/or progress to further study.
Additional units must not replace any of the mandatory units.
Additional units
Unit Unit title Level Notional
Learning
Hours
Value
(NLH/10)
9 Applying Lean Principles to Business Operations 6 150 15
10 Project Management for Engineering 6 150 15
Specification – Pearson SRF BTEC Level 6 Professional Diploma qualification
in Business Innovation Management – Issue 2 – October 2014
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5 Assessment
All units in this qualification are internally assessed.
Assessment is a process of measuring learners’ work reliably against criteria, to
produce results that are a valid interpretation of knowledge or performance.
To avoid over-assessment the centre is encouraged to link delivery and assessment
across units, where appropriate.
Each unit has specified outcomes of learning and assessment criteria. To pass a unit,
learners must meet all the outcomes of learning.
The centre will need to devise a range of assessment methods to allow learners the
opportunity to meet the outcomes of learning and assessment criteria.
6 Centre and qualification approval
The centre must be approved before delivering and assessing customised
qualifications on Pearson’s Self-regulated Framework. Centres that have not
previously been approved will need to apply for, and be granted, centre recognition
as part of the process for approval to offer this qualification.
Before you offer this qualification you must meet both centre and qualification
approval requirements.
Please refer to the centre approval guidance on our website at:
www.edexcel.com/iwantto/Pages/customised-qualification-approval.aspx
Approvals agreement
All centres are required to enter into an approval agreement that is a formal
commitment by the head or principal of a centre to meet all requirements. If the
centre does not comply with the agreement this could result in the suspension of
certification or withdrawal of approval.
7 Quality assurance
Quality assurance is at the heart of customised qualifications on Pearson’s Self-
regulated Framework. The centre internally assesses this customised qualification
and is responsible for making sure that all assessors and Internal Verifiers adhere to
their internal verification processes, to ensure consistency and validity of the
assessment process.
Pearson uses quality assurance to check that all centres are working to the agreed
standard. It gives us the opportunity to identify and provide support, if needed, to
safeguard certification.
For guidance, please refer to the Pearson’s Self-regulated Framework (SRF) Quality
Assurance Handbook on our website at:
www.edexcel.com/quals/cust/pages/srf.aspx
Specification – Pearson SRF BTEC Level 6 Professional Diploma qualification 5
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8 Programme delivery
The centre is free to offer this qualification using any mode of delivery (for example
full-time, part-time, evening only, distance learning) that meets their learners’
needs. Please refer to the policy pages on our website at:
www.edexcel.com/policies
Whichever mode of delivery is used, the centre must make sure that learners have
access to the required resources, outlined in the specification, and to the subject
specialists delivering the units. Centres must give due regard to Pearson’s policies
that may apply to different modes of delivery.
For this qualification, delivery methods include:
? face-to-face tutor-led classes for full-time learners
? work-based learning for part-time learners.
Specification – Pearson SRF BTEC Level 6 Professional Diploma qualification
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9 Access and recruitment
Pearson is committed to providing qualifications with no artificial barriers. A full
statement, included in our Equality Policy, can be found on our website at:
www.edexcel.com/policies
Equality and fairness are central to our work. We are committed to making sure that
qualifications do not discriminate and all learners achieve the recognition they
deserve from undertaking a qualification and that this achievement can be compared
fairly to the achievement of their peers.
Restrictions on learner entry
Centres should review potential learners' prior qualifications and/or experience,
considering whether this profile shows that they have the potential to achieve the
qualification.
This qualification is suitable for learners aged 18 and above. Centres must give due
regard to Pearson’s policies that apply to the fair and equal recruitment of learners to
all Pearson qualifications.
Full-time learners
Qualification requirement (one of the following):
• Pearson BTEC Level 5 HND Diploma in Business, or in another sector e.g.
Design/Engineering if the learner is actively self-employed or a start-up owner
OR
• European equivalent at EQF Level 5 (120 ECTS)
OR
• International equivalent at UK Level 5 (240 UK credits).
Note:
Work experience is desirable for full-time learners entering this programme.
Part-time learners
Qualification or experience requirement (one of the following):
• Pearson BTEC Level 5 HND Diploma in Business, or in another sector e.g.
Design/Engineering if the learner is actively self-employed or a start-up owner
OR
• European equivalent at EQF Level 5 (120 ECTS)
OR
• International equivalent at UK Level 5 (240 UK credits)
OR
• 1 to 3 years management experience.
Note:
For part-time learners the minimum age requirement is 18, however in most cases
learners will be 25+.
Part-time learners should have confirmation that their current or prospective
employer will support the work-based learning mode.
Specification – Pearson SRF BTEC Level 6 Professional Diploma qualification 7
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10 Understanding the units
All units in this qualification have the following sections.
Title
The title is a short description of the content of the unit.
Level
The level of the unit indicates the complexity and demand expected to achieve it. The
level places the unit on a framework of comparability with other units and
qualifications at that level.
Notional Learning Hours (NLH)
Notional Learning Hours (NLH) are the total amount of time a learner is expected to
take, on average, to complete the unit to the required standard, including teaching,
study and assessment time.
Unit value
The unit value is calculated by dividing the Notional Learning Hours (NLH) by 10.
SRF unit code
The unique approval code for the unit.
Unit aim
Says what the aims of the unit are in terms of what is covered and what the unit will
enable learners to do.
Unit introduction
The introduction gives a short description of the unit, and details the key knowledge,
skills and understanding the learner will gain through studying the unit. The
introduction highlights the focus of the unit and how it links to the vocational sector
to which the qualification relates.
Outcomes of learning
Outcomes of learning state what a learner can be expected to know, understand or
be able to do as a result of completing a programme of learning for the unit.
Assessment criteria
Assessment criteria specify the standard required by the learner to achieve each
outcome of learning.
Specification – Pearson SRF BTEC Level 6 Professional Diploma qualification
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Unit content
In the unit content section topics are listed as bullets to provide detail on what is
required to design and deliver a programme of learning. Not all topics have to be
covered to be able to meet the assessment criteria. Centres are able to select the
topics they deliver, ensuring that learners produce evidence of sufficient depth and
breadth to meet the assessment criteria.
Information for delivery staff
This section gives delivery staff information on delivery and assessment. It contains
the following subsections.
Delivery guidance – offers guidance on possible approaches to delivery of the unit.
Assessment guidance – gives information about the evidence that learners must
produce, together with any additional guidance if appropriate. This section should be
read in conjunction with the assessment criteria.
Suggested resources – indicates resource materials that can be used to support the
teaching of the unit, for example books and journals.
Specification – Pearson SRF BTEC Level 6 Professional Diploma qualification 9
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Specification – Pearson SRF BTEC Level 6 Professional Diploma qualification
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Units
Specification – Pearson SRF BTEC Level 6 Professional Diploma qualification 11
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Specification – Pearson SRF BTEC Level 6 Professional Diploma qualification
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Unit 1: Financial Principles and Techniques
for Non-specialists
Level: 6
Notional Learning Hours: 150
Value (NLH/10): 15
SRF unit code: 20440E
This unit is internally assessed
Unit aim
This unit aims to give the learner understanding of some financial accounting and
reporting principles, together with the skills to apply financial and management
accounting principles in business.
Unit introduction
This unit provides an introduction to the context of both financial and management
accounting and financial reporting.
It looks at how the financial statements of a range of business entities differ, as well
as the common elements between them. Learners will be able to explain the
constituent elements and purpose and uses of the three main financial statements.
Learners will also gain practical experience of preparing both the statement of
financial position and income statement for limited companies, and the balance sheet
and profit and loss account for sole traders. Learners will gain practical experience of
analysing the performance of a business through the use of financial ratios and
become familiar with the components of published financial statements. The unit
covers the role of external auditors and the debate surrounding the development of
international accounting standards.
The unit then deals with cost accounting for businesses. Learners will gain experience
of determining the unit costs of production. Finally, the unit looks at budgetary
control procedures and performance evaluation. Learners will gain practical
experience of producing budgets, flexing budgets based on actual output, and
calculating variances between budgeted and actual results. Learners will be able to
identify possible causes of variances and suggest corrective actions to be taken by
management.
Specification – Pearson SRF BTEC Level 6 Professional Diploma qualification 13
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Outcomes of learning and assessment criteria
To pass this unit, the learner needs to demonstrate that they can meet all the
outcomes of learning. The assessment criteria determine the standard required to
achieve the unit.
Outcomes of learning Assessment criteria
1 Understand the
principles of
financial
accounting and
financial reporting
1.1 Explain the role of UK and international accounting
standards in financial accounting
1.2 Critically evaluate the impact on businesses of one set
of accounting standards being used on a worldwide
basis
1.3 Analyse the differences in the accounts of a range of
different types of business
1.4 Describe the constituent elements of the statement of
financial position and income statement for companies
1.5 Analyse the constituent elements of the balance sheet
and profit and loss accounts for sole traders
1.6 Evaluate the importance and structure of a cash-flow
statement for companies
2 Be able to apply
the principles of
financial
accounting and
financial reporting
2.1 Prepare financial statements for given businesses,
making adjustments and from incomplete records
2.2 Evaluate the importance of consolidated financial
statements for groups of companies
2.3 Evaluate the significance and importance of the
constituent parts of a given annual report
2.4 Analyse the results and position of a given company
using financial ratios
2.5 Analyse the importance of the relationship between a
company’s external auditor and its directors
3 Be able to apply
principles of
management
accounting to a
given business
3.1 Calculate the unit costs of a given business using
appropriate techniques
3.2 Suggest improvements to reduce costs and enhance
value in a given business
3.3 Select appropriate budgeting methods for a given
business and its needs
3.4 Prepare a cash budget from given information for a
given business
3.5 Calculate variances from flexed budget, identify
possible causes and recommend corrective action
3.6 Prepare an operating statement reconciling budgeted
and actual results
3.7 Report findings to management in accordance with
identified responsibility centres
Specification – Pearson SRF BTEC Level 6 Professional Diploma qualification
in Business Innovation Management – Issue 2 – October 2014
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Unit content
1 Understand the principles of financial accounting and financial reporting
Role of accounting standards:
? UK and international, comparability, harmonisation process
Entity financial statements:
? sole trader, partnership, limited company, charity
Constituent elements of financial statements:
? financial position and financial performance, assets, liabilities, equity, revenue,
expenses, cash flows, accrual accounting
Cash flow statement:
? cash flows from operating activities, financing activities and investing activities
2 Be able to apply the principles of financial accounting and financial
reporting
Preparation of financial statements:
? recording of financial transactions
? preparation of statement of financial position, balance sheet, income statement,
profit and loss account
Consolidated financial statements:
? rationale for consolidation
Annual reports:
? financial statements, notes to accounts, auditors’ report, chairman’s statement
Financial ratio analysis:
? profitability, management performance, liquidity, gearing, efficiency, investor
ratios
? comparisons with competitors and previous accounting periods
Role of external auditors:
? appointment, role, independence, agency theory
Specification – Pearson SRF BTEC Level 6 Professional Diploma qualification 15
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3 Be able to apply principles of management accounting to a given business
Unit cost measurement:
? cost types (materials, labour, overheads, direct and indirect, fixed, variable and
semi-variable)
? measurement
? appropriate techniques
? improvements
? cost reduction
? value enhancement
The budgeting process:
? purpose
? benefits
? links with organisational objectives/strategy
? the budget manual
? budgets as planning, coordinating, motivation and control devices
? behavioural aspects
Budget preparation:
? limiting or key factors
? master, subsidiary and functional budgets
? cash budgets
? the preparation of sales budget, debtors’ budgets, creditors’ budgets, production
costs, raw materials and finished goods budgets
Budgeting methods:
? incremental
? zero-based
? fixed and flexible
Variances:
? types
? analysis
? calculation
? flexed budget
? possible causes
? corrective action
Specification – Pearson SRF BTEC Level 6 Professional Diploma qualification
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Reporting:
? operating statement
? reconciliation of budgeted and actual results
Responsibility centres:
? relevance to budgeting
? identification of responsibility for variances
Specification – Pearson SRF BTEC Level 6 Professional Diploma qualification 17
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Information for tutors
Delivery guidance
This unit provides an essential background to external financial accounting and
reporting and internal management accounting for both companies and sole traders.
It will enable learners to understand the wider accountancy framework within which
businesses operates. Delivery of the unit can be undertaken in a variety of ways,
ranging from an integrated approach to discrete topic delivery.
The unit could be delivered in the outcome of learning order, or alternatively
outcomes of learning 1 and 2 could be taught alongside each other as part of a larger
assignment. Alternatively, outcome of learning 3 could be delivered first if
accompanied by a suitable introduction. If the unit order is followed for delivery
purposes, then there could either be separate assignments for each outcome of
learning, or preferably a case study could be constructed which links all or some of
the outcomes of learning together.
An integrated approach could be based upon a hypothetical business, for which
learners are required to prepare both internal and external reports of a company.
External financial reports could be prepared from either incomplete records or from
detailed accounting transactions. Learners could then be asked to provide advice for
a company if it were to become part of a larger group as well as to use ratio analysis
to interpret the financial performance over a number of years. Internal management
reports could be prepared starting with the subsidiary budgets culminating in the
master budget. Variance analysis could then be performed to compare actual results
with the original and flexed budgets.
There are many websites that can provide basic information for learner research.
Learners could be encouraged to undertake research regarding the layout of the
financial statements of a range of business entities which are freely available.
Representatives from local accountancy and audit firms may also be able to provide
some input.
Assessment guidance
It is important that assessment shows the learner’s understanding of the different
accountancy roles both within and external to a business. Ideally this should be
achieved through application in case studies and business scenarios investigating real
or simulated businesses.
Specification – Pearson SRF BTEC Level 6 Professional Diploma qualification
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Suggested resources
Books
Atrill P and McLaney E – Accounting and Finance for Non-specialists with
MyAccountingLab, 7th Edition (Financial Times/Prentice Hall, 2010)
ISBN 978-0273745969
Dyson J R – Accounting for non-Accounting Students, 8th Edition (Financial
Times/Prentice Hall, 2010) ISBN 978-0273722977
Gowthorpe C – Business Accounting and Finance for Non-specialists, 2nd Edition
(Cengage Learning EMEA, 2005) ISBN 978-1844802005
Walsh C – Key Management Ratios, 4th Edition (Financial Times/Prentice Hall, 2008)
ISBN 978-0273719090
Weetman P – Financial and Management Accounting: An Introduction, 5th Edition
(Financial Times/Prentice Hall, 2010) ISBN 978-0273703693
Journals
Accountancy (CCH)
Accountancy Age (Incisive Financial Planning Limited)
Accounting Technician (Association of Accounting Technicians)
PQ Magazine (PQ Publishing)
Websites
www.accountancyage.com Accounting news, information and case studies
www.accountingweb.co.uk Accounting news, information and case studies
www.bized.co.uk A business education resource site
www.bizhelp24.com Help and support for businesses
www.businesslink.gov.uk Business guidance for businesses, including
accounting
www.canterbury.gov.uk An example of a specific local business support
website
www.ons.gov.uk Office for National Statistics – UK government
statistics, including the Retail Price Index
www.thetimes100.co.uk The Times 100 case studies
www.tutor2u.net Educational website for business and economics
Specification – Pearson SRF BTEC Level 6 Professional Diploma qualification 19
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Specification – Pearson SRF BTEC Level 6 Professional Diploma qualification
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Unit 2: Strategic Management
Level: 6
Notional Learning Hours: 150
Value (NLH/10): 15
SRF unit code: 20441E
This unit is internally assessed
Unit aim
This unit aims to give the learner understanding of the importance of strategy to an
organisation in providing direction and scope over the long term. The unit also gives
the learner the skills to assess an organisation’s strategic position in order to gain an
advantage through combining its competencies and resources.
Unit introduction
Strategic management is constantly changing and it is important that learners
understand the strategic position of an organisation.
This involves the analysis of business environments, the evaluation of strategic
capability and the development of strategic purpose. Learners will examine how an
understanding of culture can help managers develop the strategies of their
organisations. The cultural web model which allows managers to analyse culture and
its influence on strategy will be introduced.
Strategic choices are concerned with decisions about an organisation’s future and the
way in which it needs to respond to the pressures and influences. The consideration
of strategies must take into account the realities of turning strategy into action which
in turn can be a significant constraint on strategic choice. The strategy of going
international is considered, including the sources of advantage and the methods of
market selection and entry.
The importance of effective change management is explored which is a critical
success factor in strategic management.
Specification – Pearson SRF BTEC Level 6 Professional Diploma qualification 21
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Outcomes of learning and assessment criteria
To pass this unit, the learner needs to demonstrate that they can meet all the
outcomes of learning. The assessment criteria determine the standard required to
achieve the unit.
Outcomes of learning Assessment criteria
1 Understand how
strategic choices
are made in
organisations
1.1 Analyse the different levels of strategy in an
organisation
1.2 Compare methods of strategy evaluation in
organisations
2 Understand the
importance of
culture within
strategic
positioning in
organisations
2.1 Assess the importance of culture in organisations
2.2 Evaluate how organisational culture influences
strategy in an organisation
2.3 Analyse the cultural web of an organisation
3 Understand the
risks involved in
an organisation
deciding to
internationalise
3.1 Evaluate the drivers that encourage organisations to
internationalise
3.2 Critically evaluate national and international sources
of advantage for an organisation
3.3 Assess methods of market selection and entry for an
organisation
4 Be able to assess
the strategic
position of an
organisation
4.1 Carry out an analysis of the business environment of
an organisation
4.2 Evaluate the strategic capability of an organisation
4.3 Develop a strategic purpose for an organisation
5 Understand the
importance of
change in strategic
management
5.1 Explain the methods for diagnosing change situations
5.2 Critically evaluate different change management
styles and roles
5.3 Evaluate the management of strategic change
programmes in organisations
Specification – Pearson SRF BTEC Level 6 Professional Diploma qualification
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Unit content
1 Understand how strategic choices are made in organisations
Levels of strategy:
? business level strategy
? corporate level strategy
? Ansoff’s Product/Market Growth Matrix
? international strategies
Strategy evaluation:
? suitability of the strategy
? threats, opportunities, weaknesses, strengths (TOWS matrix)
? ranking strategic options
? decision trees
? scenarios
? acceptability
? returns
? analysis (financial, cost benefit, shareholder value, risk, ration, sensitivity)
? feasibility of the strategy
? financial resources
? deployment of resources
2 Understand the importance of culture within strategic positioning in
organisations
Culture:
? national and regional cultures
? the organisational field
? sets of assumptions, norms and regimes
? organisational culture
Organisational culture and strategy:
? the management of culture
? culture as a driver of strategy
? development of strategy
? implementation of new strategies
? assessing corporate performance
? adopting a suitable paradigm
Specification – Pearson SRF BTEC Level 6 Professional Diploma qualification 23
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Cultural web:
? tool for analysing culture
? elements of the web
? paradigm
3 Understand the risks involved in an organisation deciding to
internationalise
Drivers to internationalise:
? Yip’s drivers of globalisation
National and international sources of advantage:
? Porter’s Diamond model
? the international value network
? international strategies
? simple export
? complex export
? multidomestic strategy
? global strategy
Market selection and entry:
? market characteristics
? political, economic, social, legal, competitive characteristics
? entry modes
? exporting
? joint ventures and alliances
? licensing
? foreign direct investment
4 Be able to assess the strategic position of an organisation
The business environment:
? macro environment
? industries and sectors
? competitors
? Porter’s five forces framework
? industry life cycle
? strategic groups
? market segments
? opportunities and threats
Specification – Pearson SRF BTEC Level 6 Professional Diploma qualification
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Strategic capability:
? methods for evaluating strategic capability
Strategic purpose:
? corporate governance
? business ethics and corporate social responsibility
? stakeholder expectations
? stakeholder power
? organisational purpose, values, mission, vision, objectives
5 Understand the importance of change in strategic management
Methods for diagnosing change situations:
? types of strategic change
? big bang, incremental, realignment, transformational, cultural context
? force field analysis
Change management styles and roles:
? roles in managing change
? strategic leadership
? education, participation, intervention, direction, coercion
Management of strategic change programmes:
? strategic reconstruction
? turnaround strategy
? managing revolutionary and evolutionary strategic change
Specification – Pearson SRF BTEC Level 6 Professional Diploma qualification 25
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Information for tutors
Delivery guidance
For outcome of learning 1, learners need to understand the strategic position of an
organisation. This could involve the learners working in small groups undertaking a
review of the business environment of selected organisations from different sectors.
They should be encouraged to apply Porter’s five forces to the particular area under
investigation and to use SWOT analysis and the value chain to assess strategic
capability. A review of strategic purpose should also take place which should focus on
corporate governance, business ethics and corporate social responsibility.
For outcome of learning 2, learners need to understand the importance of culture
within strategic positioning which could involve small group work examining case
studies focusing on particular cultures within a variety of organisations and the
impact these cultures have on their strategic positioning. Learners need to
understand that culture is a key driver of strategy and that culture in any
organisation can be analysed using the tool known as the ‘cultural web’. Learners
could through case studies or with reference to their own organisations use the
cultural web to analyse the cultural arrangements in place.
For outcome of learning 3, learners should also understand that when an
organisation makes a strategic decision to go international, a series of risks will
emerge. Learners need to be made aware of the key drivers that exist that
encourage organisations to go international. Again case studies can be used to
identify sources of advantage of entering foreign markets and the decision making
process involved associated with market selection and entry.
For outcome of learning 4, learners need to understand the importance of strategy
development and the difference between intended and emergent strategies. Class
and small group discussions can help learners identify these various strategic
developments in place in their own organisations. Learners will also need to
understand the importance of organisation structure and the effective management
of resources both physical and human in strategy development.
For outcome of learning 5, learners need to understand that when change is to take
place in an organisation, there are various different types of change situations and
that these can be diagnosed using various tools and techniques. The importance of
change management styles and roles also needs to be examined and this can be
successfully delivered through case study material, information from the learners’
own organisations and relevant guest speakers who can take learners through the
various stages of successful change management programmes that they may have
been involved with.
Assessment guidance
The preferred method of assessment for this unit is to have one full unit assignment
allowing the learner to research aspects of strategic management in their own
organisation or another organisation that will allow them access. The assignment
could if desired, be broken down into 2, 3 or 4 or smaller assignments. The evidence
could be in the form of a presentation or report covering the five outcomes of
learning and all the assessment criteria. It is advisable to teach the outcomes of
learning in their outcome of learning order (1 to 5) as each outcome of learning
builds on the knowledge of the previous one.
Specification – Pearson SRF BTEC Level 6 Professional Diploma qualification
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Suggested resources
Books
Asch D and Bowman C – Readings in Strategic Management (Palgrave Macmillan,
1989) ISBN 978-0333518090
Barney J – Gaining and Sustaining Competitive Advantage (Prentice-Hall, 2007)
ISBN 978-0131355026
Davenport T and Norton D – The Strategy-focused Organization (Harvard Business
School Press, 2000) ISBN 978-1578512508
Cusumano M and Markides C – Strategic Thinking for the Next Economy (Jossey
Bass, 2001) ISBN 978-0787957292
De Wit B and Meyer R – Strategy: Process, Content, Context (Thomson Learning,
2004) ISBN 978-1405119993
Grant R – Contemporary Strategy Analysis (Blackwell, 2004)
ISBN 978-0470972205
Gratton L – Living Strategy: Putting People at the Heart of Corporate Purpose
(Prentice Hall, 2000) ISBN 978-0273650157
Harrison J – Strategic Management: Concepts and Cases (Wiley, 2002)
ISBN 978-047122927
Johnson G, Scholes K and Whittingham R – Exploring Corporate Strategy (Prentice
Hall Ed 8, 2008) ISBN 978-0273711926
Johnson G – Exploring Public Sector Strategy (Prentice Hall, 2000)
ISBN 978-0273646877
Kaplan R and Norton D – The Strategy-Focused Organization: How Balanced
Scorecard Companies Thrive in the New Business Environment (Harvard Business
School Press, 2000) ISBN 978-1578512508
Lynch R – Corporate Strategy (Prentice Hall, 2005) ISBN 978-0273701781
McGee, J, Thomas, H and Wilson D – Strategy: Analysis and Practice (McGraw-Hill,
2005) ISBN 978-0077107055
Mintzberg H – The Rise and Fall of Strategic Planning (Prentice Hall, 2000)
ISBN 978-0273650379
Mintzberg H, Ahlstrand B and Lampel J – Strategy Safari: A Guided Tour through the
Wilds of Strategic Management (Prentice Hall, 2001)
ISBN 978-0273656364
Pettigrew A, Thomas H and Whittington R – The Handbook of Strategy and
Management (Sage, 2001) ISBN 978-0761958932
Schwartz P – The Art of the Long View (Wiley, 1997) ISBN 978-0471977858
Stacey R – Strategic Management and Organisational Dynamics (Prentice Hall, 2002)
ISBN 978-0273658986
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Journals
Academy of Management Journal (Academy of Management)
British Journal of Management (Blackwell)
California Management Review (University of California, Berkeley)
European Management Journal (Elsevier)
Harvard Business Review (Harvard Business School)
Journal of Business Strategy (Blackwell)
Journal of Management Studies (Blackwell)
Long Range Planning (Elsevier)
MIT Sloan Management Review (MIT Sloan School of Management)
Strategic Change (John Wiley & Sons Ltd)
Strategy and Leadership (Emerald)
Websites
www.ft.com Financial Times
www.managers.org.uk Chartered Management Institute
www.sps.org.uk Strategic Planning Society
Specification – Pearson SRF BTEC Level 6 Professional Diploma qualification
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Unit 3: Innovation and Creativity in
Business
Level: 6
Notional Learning Hours: 150
Value (NLH/10): 15
SRF unit code: 20442E
This unit is internally assessed
Unit aim
This unit aims to give learners an understanding of the importance to organisations
of creativity and innovation. The unit also gives learners the skills to overcome
barriers and influence others to support innovation in business.
Unit introduction
Innovation is becoming essential to growth and prosperity of business organisations
and countries. In this unit, learners start by exploring the need for business
organisations to continuously innovate in order to maintain competitive advantage
and the impact of innovation on national economies. Learners study the work of
theorists seeking to understand the processes of creativity in individuals. They then
experiment with using some of the many techniques designed to encourage creativity
and innovation in individuals and groups.
Learners will examine the theoretical approaches to the fostering or conversely the
stifling of innovation in organisations. This includes exploration of types of
motivation, culture, climate, leadership and innovation management processes found
in organisations.
Learners will plan the development and implementation of an innovative idea of their
own and in doing so apply some of the theory from this unit. In the final outcome of
learning, learners identify and plan to overcome barriers to the implementation of
their innovative idea. This includes examination of internal barriers such as culture
and resistance to change, as well as external barriers such as the market, legislative
framework and infrastructure issues.
Overall, the unit examines innovation in business from viewpoints of individual
creativity in individuals through to the drivers and actions of organisations and
national government. It links theory with practical application.
Specification – Pearson SRF BTEC Level 6 Professional Diploma qualification 29
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Outcomes of learning and assessment criteria
To pass this unit, the learner needs to demonstrate that they can meet all the
outcomes of learning. The assessment criteria determine the standard required to
achieve the unit.
Outcomes of learning Assessment criteria
1 Understand the
importance of
innovation to
business
1.1 Explain the value of innovation to organisations
1.2 Evaluate support for a recent innovation in a selected
organisation
2 Understand how
creativity can be
fostered
2.1 Analyse key theoretical concepts about creativity in
individuals
2.2 Use analytical tools to identify potential creative ideas
2.3 Critically evaluate key theoretical concepts about
creativity
3 Understand how
innovation can be
fostered in an
organisation
3.1 Analyse how to lead others in an organisation to
positively embrace innovation
3.2 Critically evaluate current processes for managing
innovation within a selected organisation
4 Be able to
influence others to
effect innovative
change in an
organisation
4.1 Plan a creative idea to effect innovative change in an
organisation
4.2 Produce an appropriate rationale to persuade
stakeholders of an organisation of the benefits of a
creative idea
4.3 Communicate the idea to effect innovative change in
an organisation to stakeholders
4.4 Critically evaluate the idea and its prospects of
success
5 Be able to plan to
overcome barriers
to implementation
of creative and
innovative ideas in
an organisation
5.1 Assess the barriers to the implementation of a
creative and innovative idea in a selected organisation
5.2 Plan a strategy to overcome identified barriers to the
implementation of a creative and innovative idea in an
organisation
5.3 Evaluate the extent to which the plan will increase the
likelihood of success of an innovation within an
organisation
Specification – Pearson SRF BTEC Level 6 Professional Diploma qualification
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Unit content
1 Understand the importance of innovation to business
Innovation in engineering:
? definitions of innovation
? formats of innovation
? level of change
? innovation space mapping
Importance to organisations:
? increasingly competitive trading environment
? building and maintaining competitive advantage
? types of competitive advantage
Support for innovation:
? government policies supporting innovation
2 Understand how creativity can be fostered
Key theoretical concepts:
? comparison of approaches
? forms of creativity
? creative process
? personality traits for innovation
Creativity tools and techniques:
? positive
? negative
? interesting (PNI)
? mind mapping
? visioning
? fishbone diagram
? problem-solving techniques
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Analytical tools:
? SWOT (strengths, weaknesses, opportunities and threats)
? cost/benefit analysis
? Pareto analysis
? risk analysis
? value
Evaluation:
? criticisms of theoretical concepts and tools and techniques
3 Understand how innovation can be fostered in an organisation
Fostering innovation in organisations:
? theoretical approaches
? culture and climate encouraging innovation
? intrinsic versus extrinsic motivation
? impact of type of tasks
Leadership:
? climate
? reward
? work roles to support innovation
Innovation strategies:
? pioneering versus following
? leapfrog
? speed to market
? perfection
? market hedge
? product hedge
? outsource and alliance
? innovation protection strategies
Organisational processes:
? innovation strategies
? innovation process management development and models
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4 Be able to influence others to effect innovative change in an organisation
Plan creative idea:
? identify problem/opportunity
? human resource, physical and technical requirements
? working environment
? idea generation
Rationale for stakeholders:
? identification of stakeholders
? analysis of stakeholder viewpoints and importance
? benefits of innovative idea
Communicate/evaluate idea:
? segmentation and targeting of stakeholders
? communications mix
? media selection
? stakeholder group interaction
? evaluation and selection processes
? financial measures
? market factors
5 Be able to plan to overcome barriers to implementation of creative and
innovative ideas in an organisation
Internal/external barriers to innovation:
? organisational culture
? organisational climate
? resistance to change
? types of resistance to change
? legislation
? infrastructure
? lack of government support
? market reaction
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Overcoming barriers:
? participation
? education
? involvement
? communication
? staff selection and rewards
? relocation
? lobbying
? adaptation
Evaluation /increasing success:
? measures of success
? factors enhancing success rates
? causes of failures
Specification – Pearson SRF BTEC Level 6 Professional Diploma qualification
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Information for tutors
Delivery guidance
This unit draws from a variety of disciplines and a variety of learning methods could
be used. A range of recent work of theorists on innovation is included and this
contextualised into the business studies world through drawing on established
principles from marketing, economics, finance and management.
As consumers and users of services, learners will be familiar with the results of
innovations, e.g. social media, and case studies of how these organisations innovate
would be valuable in bringing this unit to life.
Learners with experience of working in innovative or traditional organisations or that
fall somewhere between these two opposites, could be encouraged to use and share
their experiences in group discussions and in their assessed work.
Outcome of learning 1 sets the context and enables learners to explore why
innovation is regarded as so important at both organisational and national level. It
would be beneficial for learners to be exposed to a wide variety of current material
from the business world through reading ‘quality newspapers’ and journals. Learners
could collect key statistics on innovations over a recent time period and then share
them with fellow learners. It would also be useful for learners to hear the views of
those involved in government or in running businesses on government support for
innovation in business.
In outcome of learning 2, learners study the work of theorists investigating the
somewhat mysterious processes of creativity in individuals. Traditional styles of
delivery such as lectures and reading can be used for this content. This outcome of
learning also includes a practical element whereby learners can experiment with
using different techniques for developing creative ideas. The well-known methods
given in the unit content can be used, however other less well-known methods could
be tested by learners instead or as well as the methods given. Learners could be
given problems relevant to their own lives. Books or websites based on developing
creative thinking could also provide suitable exercises. A technique sometimes used
is for learners to keep an innovation or creativity log throughout their programme of
study.
Outcome of learning 3 is about the theory relating to how innovation can be fostered
or discouraged by the way the organisation is managed. The theory could be taught
through lectures or through learners reading selected materials. The theory could be
further explored through applying it to organisations with which learners are familiar
and to case study material.
Outcome of learning 4 is less abstract and more practical and learners will be
applying the theory learnt in the other outcomes of learning and also revisiting
learning from other units in the programme. Learners should have already studied
stakeholders, marketing communications and project evaluation techniques so for
these areas teaching should complement what has gone before and help learners to
relate it to the management of the development of an innovative idea. Some
techniques, such as the bubble diagrams, are specific to this unit but the factors used
within it are common to many business studies units. Learners could be given
opportunities to practise using all the techniques in small groups, using a case study
or a hypothetical idea for the development of a service in their own institution.
Outcome of learning 5 is practical rather than theoretical and focuses on the
implementation of an innovative idea. Much of the content follows on from the
theoretical content from the other outcomes of learning although some content
relates to resistance to change which learners may need to explore through lectures
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or reading before practising application of the principles to case studies. Analysis of a
current campaign which supports a controversial change could provide an interesting
way of delivering this part of the programme.
Assessment guidance
Assessment for this unit could be in the form of one large assignment covering all
criteria or it could be split into two or perhaps three assessments. It is envisaged that
outcomes of learning 4 and 5 would be assessed together and linked to outcome of
learning two. The theme of this assignment would be the development and planning
for the introduction of an innovative idea. Outcomes of learning 1 and 3 could be
linked into an assignment based on a study of an organisation.
In designing the assessments, consideration should be given to ensuring these
learners can adequately research the organisation used for many of the outcomes of
learning, especially 4 and 5. Learners will need to be able to fully understand factors
in the internal operations of the business and its external environment. Learners who
are in employment may have access to this information through their work roles. For
other learners, assessments for this unit could be based on a period of work
experience, or from an in-depth study of an organisation. Case-study material could
be provided and then supplemented by learners’ own research. The learning
institution could provide a context for an assessment whereby learners plan
innovative ideas for tackling current challenges faced by different sections of the
organisation. In this case, it is recommended that a different organisation is used for
the other assignment in the unit so that learners have exposure to innovation in a
commercial environment. It is unlikely that a fictitious context could provide enough
detail to enable the learners to cover the criteria.
There is a need to ensure that the assessment programme includes opportunities for
learners to use the analytical tools and it may be that this is better done in groups. If
group work is used for any of the criteria it is necessary to ensure that the guidance
on the use of group work is followed. Evidence should be produced identifying that
each learner has achieved each assessment criterion. Assessment outcomes for most
of the assessment criteria are likely to be in the form of reports, plans and
presentations.
Suggested resources
Books
Ahmed P K and Shepherd C D – Innovation Management: Context, Strategies,
Systems and Processes (Financial Times/Prentice Hall, 2010)
ISBN 978-0273683766
Drucker P F – Innovation and Entrepreneurship (Butterworth-Heinemann, 2007)
ISBN 978-0750685085
Hammer M and Champy J – Reengineering the Corporation: A Manifesto for Business
Revolution (Harper Paperbacks, 2004) ISBN 978-0060559533
Jones T – Innovating at the Edge: How Organizations Evolve and Embed Innovation
Capability (Butterworth-Heinemann, 2002) ISBN 978-0750655194
Kotler P, Armstrong G, Wong G and Saunders J – Principles of Marketing, 5th Edition
(Financial Times/Prentice Hall, 2008) ISBN 978-0273711568
Tidd J and Bessant J – Managing Innovation: Integrating Technological, Market and
Organizational Change, 4th Edition (John Wiley and Sons, 2009)
ISBN 978-0470998106
Specification – Pearson SRF BTEC Level 6 Professional Diploma qualification
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Journals
British Journal of Management (John Wiley and Sons)
Harvard Business Review (Harvard Business Publishing)
Journal of Product Innovation Management (John Wiley and Sons)
Financial Times (The Financial Times Ltd)
Websites
www.cambridgeaudits.com Cambridge Strategy Audits offers scoreable company
self-audits on innovation and related topics
www.enchantedmind.com A non-profit educational institution offering research
findings in areas of creative leadership
www.haygroup.com/uk The Hay Group website provides materials on the
business climate and encouraging innovation
www.managers.org.uk Chartered Management Institute – searchable
database which members can use to access
Specification – Pearson SRF BTEC Level 6 Professional Diploma qualification 37
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Specification – Pearson SRF BTEC Level 6 Professional Diploma qualification
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Unit 4: Supply Chain Management
Level: 6
Notional Learning Hours: 150
Value (NLH/10): 15
SRF unit code: 20443E
This unit is internally assessed
Unit aim
This unit aims to give the learner an understanding of why supply chains are
important to organisations for gaining sustainable competitive advantage and success
and the skills to apply strategic supply chain management issues and to assess the
impact of technology on supply chains.
Unit introduction
The unit provides a comprehensive review of the constantly developing and changing
area of supply chain management. The unit focuses on the fact that supply is a
dynamic strategic process and not an administrative function. The unit begins by
considering how the function and profile of supply chain management (SCM) within
organisations has changed significantly.
Different types of sourcing strategies are reviewed, as well as how organisations
strategically select suppliers. The unit then introduces the strategic supply wheel
model which was developed to explain the main principles and concepts of supply
management. At the centre of the model is the development of supply policy and
strategy. The model allows organisations to identify if supply and corporate
strategies are aligned and helps determine the competencies and skills required for
successful strategic supply.
Building on the above, the unit examines how performance is measured in supply
strategy, including associated costs as well as discussing how inter-business
relationships are managed. The strategic issues involved in supply chain
management are reviewed, these include environmental issues, the importance of
supplier involvement in new product development and the special nature of public
procurement. The unit then examines the important impact of technology on supply
chain management.
Specification – Pearson SRF BTEC Level 6 Professional Diploma qualification 39
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Outcomes of learning and assessment criteria
To pass this unit, the learner needs to demonstrate that they can meet all the
outcomes of learning. The assessment criteria determine the standard required to
achieve the unit.
Outcomes of learning Assessment criteria
1 Understand the
key supply
decisions that have
to be made in
businesses
1.1 Analyse sourcing strategies that are used by
businesses
1.2 Critically evaluate how businesses strategically select
suppliers
2 Understand how
businesses develop
supply strategy
2.1 Assess the importance of the strategic wheel in
developing supply strategy
2.2 Analyse how supply strategies are aligned to
corporate/organisational strategies
3 Understand the
role of
performance
management in
developing supply
strategy
3.1 Compare the different types of performance
measurement used in developing supply strategy
3.2 Assess the measurement of costs in developing
supply strategy
3.3 Review how inter-business relationships are managed
4 Be able to apply
strategic issues in
supply chain
management
4.1 Examine the environmental issues in supply chain
management which affect a given business
4.2 Analyse the benefits of involving suppliers in new
product development in a given business
4.3 Assess the special nature of public procurement in a
given business
5 Be able to assess
the impact of
technology on
supply chain
management
5.1 Analyse how information technology improves
communication between supply chain partners
5.2 Critically evaluate the advantages of different forms
of electronic exchanges in supply chain management
in a given business
Specification – Pearson SRF BTEC Level 6 Professional Diploma qualification
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Unit content
1 Understand the key supply decisions that have to be made in businesses
Sourcing strategies:
? Kraljic’s product and service positioning
? Porter’s five forces
? impact on business
? supply structure and design
Supplier selection:
? four stages of supplier selection
2 Understand how businesses develop supply strategy
The strategic wheel:
? three basic approaches to strategic supply
? interrelationships between each of the strategic elements of an organisation
Supply and corporate strategies:
? supply chain strategy supports and facilitates corporate strategy
? information sharing
? translation of competitive priorities into supply function objectives
? translating supply function objectives into supply chain practices
3 Understand the role of performance management in developing supply
strategy
Performance measurement:
? methods
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The measurement of costs:
? cost benefit analysis
? price versus cost
? total cost of ownership
? purchasing activities contributing to total cost of ownership
? management of purchasing function
? delivery administration
? service costs
? communication costs
? price negotiations
? quality costs
Inter-business relationships management:
? development of supply chain and relationship management
? Strategic Relationship Positioning Model (SRPM)
4 Be able to apply strategic issues in supply chain management
Environmental issues:
? from outside and inside a business’s internal and external sources
Suppliers and new product development (NPD):
? current issues
? competitive advantage
? costs
? increasing product complexity
? reduced product life cycles
? managing technological change
? resources and knowledge required to innovate
? benefits of involvement
Public procurement:
? public scrutiny of sourcing decisions
? no competitive markets in which to operate
? regulation
? EU procurement objectives
Specification – Pearson SRF BTEC Level 6 Professional Diploma qualification
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5 Be able to assess the impact of technology on supply chain management
Information technology and communication:
? electronic data interchange (EDI)
? development of Open Systems Integration (OSI)
? internet technologies
Electronic exchanges:
? marketplace in which goods and services are traded – global, connecting buyers
and sellers, auctions, VPNs, one to many, many to many, web marketplace,
vortices, butterfly hubs
? advantages
Specification – Pearson SRF BTEC Level 6 Professional Diploma qualification 43
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Information for tutors
Delivery guidance
For outcome of learning 1, learners need to understand the key decisions that have
to be made by supply chain managers which have a bearing on whether the
organisation will be successful. The most important decision for any organisation is
whether to make or buy what they need. Having decided that they may need to
purchase, strategies need to be produced to identify where products can be sourced.
Learners can be given case studies and asked to apply some of the tools and
techniques which assist sourcing strategy decision making, e.g. Porter’s five forces.
Finally, learners need to consider the important aspect of supplier selection and the
multitude of tests that can be applied to ensure the selection is correct.
For outcome of learning 2, learners need to understand how organisations develop
supply strategy. They should apply the strategic wheel to case study material to
identify the strategic relationships between each of the strategic elements within an
organisation. Building on this knowledge learners should be able to recognise the link
between supply chain management and the corporate strategies that exist. Again,
case studies and group work can help learners to understand these important links.
Learners also need to appreciate that in developing a supply strategy the
organisation needs to have appropriate competencies and skills within the
organisation to enable supply chain objectives to be met.
For outcome of learning 3, learners need to understand that in any strategic supply
chain initiative must be performance measured using criteria such as costs, quality
and supplier performance. Case studies and class discussions can help learners to
gain an appreciation of the necessity of performance management, including the
various methods of cost measurement. Finally, learners need to understand the
importance of the management of inter-firm relationships in the development of
supply strategy. A guest speaker from a business with well-developed supply chain
management would be useful for delivering this part of the outcome of learning,
covering relationship management and strategic collaboration.
For outcome of learning 4, learners need to be made aware of some of the more
important issues impacting on supply chain management. Class and small-group
discussions can help learners identify the various internal and external environmental
issues that are relevant, including customers, suppliers, regulatory authorities,
employees and organisational departments. Learners also need to understand the
benefit of involving suppliers in new product development, this can impact on issues
such as quality and delivery frequency. The particular situation of supply chain
management in the public sector must also be delivered and this could be taught by
a public sector supply chain officer covering the regulations in place and the process
of tendering.
For outcome of learning 5, learners need to understand the impact of technology on
supply chain management and in particular the role of information technology in
improving communication throughout the supply chain. Learners also need to
examine the important role of electronic exchanges in supply chain management. A
class visit to a business with good supply chain management systems with
appropriate technology would be very useful in delivering this part of the outcome of
learning.
It is advisable to teach the outcomes of learning in their outcome of learning order (1
to 5) as each outcome of learning builds on the knowledge of the previous one.
Specification – Pearson SRF BTEC Level 6 Professional Diploma qualification
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Assessment guidance
The preferred method of assessment for this unit is to have one full unit assignment
allowing the learner to research aspects of supply chain management in their own
organisation or another organisation that will allow them access. The assignment
could if desired, be broken down into two, three or four or smaller assignments. The
evidence could be in the form of a presentation or report covering the five outcomes
of learning and all the assessment criteria.
Suggested resources
Books
Chopra S and Meindl P – Supply Chain Management: Strategy, Planning and
Operation, 4th Edition (Pearson Education, 2009) ISBN 978-0136094517
Chaffey D – E-Business and E-Commerce Management: Strategy, Implementation
and Practice, 4th Edition (Financial Times/Prentice Hall, 2009) ISBN 978-0273719601
Christopher M – Logistics and Supply Chain Management, 4th Edition (Financial
Times/Prentice Hall, 2010) ISBN 978-0273731122
Harvard Business Review on Managing the Value Chain – (Harvard Business School
Press, 2000) ISBN 978-1578512348
Harvard Business Review on Supply Chain Management – (Harvard Business School
Press, 2006) ISBN 978-1422102794
Stadtler H and Kilger C – Supply Chain Management and Advanced Planning:
Concepts, Models, Software and Case Studies, 4th Edition (Springer, 2007)
ISBN 978-3540745112
Turban E, King D, Lee J K, Liang T P and Turban D – Electronic Commerce 2010: A
Managerial Perspective, 6th Edition (Pearson Education, 2009)
ISBN 978-0137034659
Journals
European Journal of Purchasing and Supply Management (Elsevier)
The Journal of Supply Chain Management (Institute for Supply Management)
Supply Chain Management: An International Journal (Emerald)
Websites
www.cips.org The Chartered Institute of Purchasing and Supply
www.iwvaluechain.com Industry Week’s The Value Chain
www.logistics.about.com/mbody News about logistics and the supply chain
Specification – Pearson SRF BTEC Level 6 Professional Diploma qualification 45
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Unit 5: Management and Leadership
Level: 6
Notional Learning Hours: 150
Value (NLH/10): 15
SRF unit code: 20444E
This unit is internally assessed
Unit aim
This unit aims to give the learner an understanding of the links between leadership
and management. The unit also gives learners the skills to be able to apply this
understanding in an organisational context.
Unit introduction
There is debate about whether the use of these terms should be restricted or used
interchangeably. In this unit, learners will have the opportunity to assess the merits
of this debate.
Learners will gain an insight into the current thinking on leadership from an
organisational perspective and they will examine the links between leadership and
management. Learners will have the opportunity to consider current theories of
leadership and management and investigate how the can be applied in an
organisational context. This will enable learners to compare and evaluate the
usefulness of these theories as they seek to apply them to the specific leadership
requirements in an organisation.
All organisations need leaders at every level of the business. However, the leadership
qualities that are required to make a good leader can vary in different organisations,
at different levels of the organisation, in teams and in different organisational
situations. Learners will look at the importance of leadership qualities and they will
explore how they link to leadership behaviour.
The unit will enable learners to understand the impact of management and leadership
styles on organisational decisions in differing situations, through examining the skills
and styles of successful leaders. Applying management and leadership theories and
models to specific situations will enable learners to assess the impact that different
leadership styles can have on organisational direction.
Specification – Pearson SRF BTEC Level 6 Professional Diploma qualification 47
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Outcomes of learning and assessment criteria
To pass this unit, the learner needs to demonstrate that they can meet all the
outcomes of learning. The assessment criteria determine the standard required to
achieve the unit.
Outcomes of learning Assessment criteria
1 Understand the
relationship
between
management and
leadership
1.1 Discuss the similarities between management and
leadership
1.2 Assess the merits of the argument that management
is different from leadership
1.3 Evaluate the impact of both management and
leadership styles on staff in organisations
2 Understand the
features that
underpin effective
leadership
2.1 Assess the relationship between leadership style and
leadership behaviour
2.2 Explain how leadership behaviour is linked with
leadership qualities in effective leaders
2.3 Evaluate the importance of context on leadership
styles and qualities
3 Be able to apply
theories of
management and
leadership in
organisational
contexts
3.1 Examine the argument that leaders are born and not
made
3.2 Critically assess the impact of leadership in a selected
organisation using appropriate theories
3.3 Review the impact of selected theories of
management and leadership on organisational
direction of a selected organisation
4 Be able to advise
on the
management and
leadership skills
required for
selected roles in
an organisation
4.1 Propose methods to identify the skills required for
leadership of a given role in a selected organisation
4.2 Recommend a style of leadership that is suitable to
the role and appropriate to the culture in a selected
organisation
4.3 Make justified evaluations of recommended leadership
skills required for a selected role in an organisation
Specification – Pearson SRF BTEC Level 6 Professional Diploma qualification
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Unit content
1 Understand the relationship between management and leadership
Management and leadership:
? definitions of management
? perspectives on leadership
Management and leadership style:
? autocratic, charismatic, persuasive, participative
? influences on style
? emotional leadership styles
? differentiation between management and leadership styles in given situations
? Blake and Mouton’s managerial/leadership grid
2 Understand the features that underpin effective leadership
Leadership behaviour:
? theories
? differences between management and leadership in terms of behaviours
Leadership qualities:
? honesty, enthusiasm, confidence, charisma, intelligence, knowledgeable, able,
good communicator, respect, compassion, sensitivity, strong values
Context:
? organisational context
? situational context
3 Be able to apply theories of management and leadership in organisational
contexts
Theories – current theories:
? types of power and authority
? great man theory
Universal theories:
? difference between transformational and transactional leadership
? charismatic leadership
? leaders who fulfil these definitions
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Situational theories:
? Adair’s Action Centred Leadership model
? Tannenbaum and Schmidt’s continuum of leadership behaviour
? Handy’s best-fit approach
? Hersey and Blanchard’s leadership styles
? difference between situational and contingency theory, e.g. Fiedler
Impact of leadership:
? efficiency, reliability, innovation, adaptation and human resources in the
organisation and sub-units, vision, cultural issues
? levels of leadership
? size and stage of development of organisation, e.g. business start-up versus
established business
? turnaround leadership
4 Be able to advise on the management and leadership skills required for
selected roles in an organisation
Development of management and leadership skills:
? different methods of developing leaders through formal learning
? different ‘on the job’ methods
? benefits of self-help activities
? developing leaders versus recruiting as needed
? creating a learning climate
? model for assessing future leadership requirements, e.g. Council for Excellence
in Leadership and Management diagnostic tools
? leadership competencies
Specification – Pearson SRF BTEC Level 6 Professional Diploma qualification
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Information for tutors
Delivery guidance
A good starting point for outcome of learning 1 is a whole-class discussion. For
example, the tutor could ask if prominent figures are leaders or managers. This will
almost certainly generate some lively debate of delivery of this outcome of learning.
All learners will have had some experience of working with managers and leaders in
social activities and/or in the workplace. Some learners may hold these positions in
the workplace or in other situations. Learners can draw on their own experiences by
working in small groups to discuss the similarities and differences between leadership
and management. Some tutor input will be required to develop understanding of
leadership. Learners could draw on their own experiences to identify situations where
these styles have been demonstrated. This could be followed by case studies with
learners working in small groups to discuss the management and leadership styles in
each of the situations. A good way to conclude outcome of learning 1 is to return to
the opening discussion on the two prominent figures. This could be an open
discussion or it could be conducted in pairs or small groups. Learners could be asked
if their initial perceptions about leadership and management have changed and to
feedback to the class on their current views.
Outcome of learning 2 will require some input from the tutor on leadership behaviour
and leadership qualities. This can be approached by using topical examples of
situations where leadership qualities and behaviour are in the public eye. A good
starting point here is to take some examples of current prominent leaders. Video
clips may be available if the leaders have appeared on television. Learners can then
be put into small groups with a list of agreed qualities and behaviours and be asked
to score the leaders against these lists. They can also be asked to compare the
strengths and weaknesses of the leaders in terms of their qualities and behaviour.
Learners can be introduced to the importance of context to the leadership styles used
through the use of case studies. Historical and contemporary examples can be
equally effective here. Learners could work in pairs to discuss the leadership style of
leaders such as Winston Churchill in the contrasting contexts of war and peace
situations. They could look at the leadership style of a contemporary industry leader
such as Willie Walsh in the context of the British Airways cabin crew dispute.
Learners could feed back their conclusions to the group.
For outcome of learning 3, there will need to be tutor input on the theories of
leadership and management. There are many theories of management and
leadership which have evolved and developed over a long period. There can be a
great deal of overlap between them. Tutors could give an overview of the
development of the different approaches as an introduction. This could be followed by
a more detailed look at selective theories from the main schools of thought. Tutors
could use the theories to lead group discussions on leaders who are facing the
challenges raised by current issues.
For outcome of learning 4, tutors will need to provide learners with guidance on the
methods of identifying leadership skills. A useful way of consolidating learning is to
ask learners to apply this and to identify a given role in their own organisation. It
could be their own role or it could be the role of a superior or a subordinate provided
that they are in a leadership or management position in the organisation. Learners
could work in pairs or in small groups to discuss the methods that they would use to
identify the leadership skills required for these roles. They could also identify which
methods would be the most appropriate in different circumstances and different
organisational contexts. The tutor could use the results of this exercise by asking
learners to apply their understanding of leadership styles covered in outcome of
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learning 1. They could work in the same groups to discuss their choice of leadership
style for their selected roles.
Assessment guidance
The learner must apply their understanding of management and leadership to a given
role either within their own organisation or a real or simulated organisation in a case
study.
Suggested resources
Books
Adair J – Effective Leadership: How to be a Successful Leader (Pan, 2009)
ISBN 978-0330504195
Adair J – How to Grow Leaders: The Seven Key Principles of Effective Leadership
Development (Kogan Page, 2009) ISBN 978-0749454807
Anderson M – The Leadership Book (Pearson, 2010) ISBN 978-0273732044
Dalton K – Leadership and Management Development: Developing Tomorrow’s
Managers (Pearson, 2010) ISBN 978-0273704706
Gold J, Thorpe R and Mumford A – Leadership and Management Development (CIPD,
2010) ISBN 978-1843982449
Kouzes J M and Posner B Z – The Leadership Challenge, 4th Edition (Jossey-Bass,
(2008) ISBN 978-0787984922
Mullins L J – Management and Organisational Behaviour, 9th Edition (Financial
Times/Prentice Hall, 2010) ISBN 978-0273724087
Radcliffe S – Leadership: Plain and Simple (Pearson, 2009)
ISBN 978-0273730897
Journals
Management Today (Haymarket Business Media)
People Management (Chartered Institute of Personnel and Development)
Professional Manager (Chartered Management Institute)
Training Journal (www.trainingjournal.com)
Specification – Pearson SRF BTEC Level 6 Professional Diploma qualification
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Websites
www.cipd.co.uk Chartered Institute of Personnel and Development
www.leadershipnow.com Articles and blogs on leadership challenges
www.managementhelp.org Free management library for articles and blogs on
leadership
www.managers.org.uk Chartered Management Institute – searchable
database that members can use to access journal
articles and other publications
www.peterhoney.com Questionnaires and trainer packs
www.businessballs.com Free management library with articles
www.teamtechnology.co.uk Case studies/articles on leadership and
management
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Unit 6: Entrepreneurship in Business
Level: 6
Notional Learning Hours: 150
Value (NLH/10): 15
SRF unit code: 20445E
This unit is internally assessed
Unit aim
The aim of this unit is to provide an understanding of successful entrepreneurship
and the need for it in today's economy. The unit also provides the skills to plan a
viable entrepreneurial business idea and strategies for its growth.
Unit introduction
Across the world, entrepreneurial ventures are creating and bringing to market new
products and services, and this has an important impact on the pace of social and
economic change.
The unit introduces learners to the nature of entrepreneurship and then considers
how the entrepreneurial process is used to exploit business opportunities in
established organisations, and the potential and challenges this entrepreneurship
brings.
Developing a strategy to provide vision and direction for the venture is essential for
success and learners will examine ways that entrepreneurs develop a business idea,
and through using market research methods, learners will have the opportunity to
develop a business plan, taking account of any legal, financial and ethical issues.
Growth of the business venture needs to be approached from a number of
perspectives and in this unit learners will examine the issues affecting growth in the
key areas such as finance, marketing, resources and personal skills development.
On completion of the unit learners will have an understanding of the characteristics
of successful entrepreneurship and how strategies can be planned to develop
business ventures.
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Outcomes of learning and assessment criteria
To pass this unit, the learner needs to demonstrate that they can meet all the
outcomes of learning. The assessment criteria determine the standard required to
achieve the unit.
Outcomes of learning Assessment criteria
1 Understand the
scope for
entrepreneurship
in established
organisations in
today’s economy
1.1 Discuss how entrepreneurship can be encouraged
within organisations
1.2 Analyse what may limit entrepreneurship within
organisations
1.3 Evaluate how the entrepreneurial process contributes
to the economy
2 Understand how to
develop successful
entrepreneurial
business ideas
2.1 Explain how successful business entrepreneurs
develop business ideas
2.2 Explain the purpose of a feasibility analysis when
developing business ideas
2.3 Critically evaluate methods for exploring opportunities
and generating business ideas
3 Be able to plan a
strategy for a
viable
entrepreneurial
business idea
3.1 Develop a strategy for a viable entrepreneurial
business idea
3.2 Conduct market research to inform a business plan
for a viable business idea
3.3 Prepare a detailed business plan for a viable business
idea, taking account of any current legal, ethical and
financial implications
4 Be able to plan the
future growth of a
viable
entrepreneurial
business idea
4.1 Assess own entrepreneurial skills and characteristics
to meet future requirements of a viable business idea
4.2 Analyse potential barriers to growth of a viable
entrepreneurial business idea
4.3 Recommend alternative strategies for the growth of a
viable business idea
Specification – Pearson SRF BTEC Level 6 Professional Diploma qualification
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Unit content
1 Understand the scope for entrepreneurship in established organisations in
today’s economy
Encouraging entrepreneurship:
? definition of entrepreneur and entrepreneurship
? reasons for becoming entrepreneurs
? definition of corporate entrepreneurship or intrapreneurship
? benefits for intrapreneurial companies
? culture of corporate innovation
? levels of intrapreneurial activity
? how organisations can encourage
? advantages for self and others
Limitations for entrepreneurship in established organisations:
? resistance
? questioning change
? existing managers’ comfort zone
? decision-making control
? sufficient rewards for the effective intrapreneur
Entrepreneurial process contribution to the economy:
? stages of process
? impact on both the economy and society
2 Understand how to develop successful entrepreneurial business ideas
Generating and developing ideas and opportunities:
? methods
? difference between an opportunity and an idea
? approaches used
? environmental trends
? creative process
? unique selling points
? protecting ideas
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Feasibility analysis:
? definition
? importance
? analysis of industry/market
? analysis of product/service
? organisational analysis
? primary and secondary research
? concept test
? industry attractiveness
? obstacles to overcome
3 Be able to plan a strategy for a viable entrepreneurial business idea
Developing a strategy:
? articulating the vision
? achieving aims
? focus
? taking calculated risks
Market research:
? purpose
? primary research methods
? secondary research
Business plan:
? purpose
? full analysis of the situation
? medium for communication with stakeholders
? objectives of the business
? summary of the proposition
? physical and financial resources
? marketing and promotion
Risk management:
? assessing implications
? legal requirements and constraints
? ethical considerations
? financial risks
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4 Be able to plan the future growth of a viable entrepreneurial business idea
Assessing own entrepreneurial skills:
? skills audit
? development planning
? setting goals
? producing development plan
Barriers to growth:
? expansion strategy consistent with the capabilities of the venture
? resources
? risk
? overcoming barriers to growth
? procurement
? availability of essential supplies
? availability of skilled workforce
Strategies for growth:
? internal growth
? external growth
? franchising
? advantages and disadvantages of internal and external growth strategies
Specification – Pearson SRF BTEC Level 6 Professional Diploma qualification 59
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Information for tutors
Delivery guidance
This unit will help learners to develop an understanding of the characteristics of
successful entrepreneurship and the need for it in today's economy, together with the
skills to create a business plan for an entrepreneurial business idea and develop
strategies for its growth. It is recommended that centres use a wide range of
teaching and learning methods in order for learners to meet all the outcomes of
learning in the unit. These could include lectures, seminars, workshops, project work,
individual and group assessments.
The teaching/learning methods used should draw on material from industry wherever
possible, also learners’ own experiences. This will help learners to develop the
transferable skills necessary in a changing and dynamic environment. Learners will
develop skills to plan a strategy for future growth of a viable business idea.
To introduce the unit learners could discuss the creativity and innovation of emerging
entrepreneurs, identifying the most common characteristics and qualities. Learners
should be encouraged to talk to local entrepreneurs about their experiences, so that
they can understand the steps of the entrepreneurial process, and appreciate the
contribution of entrepreneurial firms to the economy’s strength and stability. There
are many misconceptions concerning who entrepreneurs are and what motivates
them to launch firms and develop their ideas, so learners should explore some of the
common myths and the realities.
For outcome of learning 1, the potential and role of entrepreneurship as change
master in established organisations – intrapreneurship – can be investigated through
examining the factors of successful ventures of intrapreneurial companies. For
example – how 3M encourages internal competition and duplication of resources
whilst most efficient companies try to eliminate them. Learners need to understand
that, although intrapreneurism exploits new opportunities and innovations whilst
reducing risk, it does present some challenges for the intrapreneur and the
organisation, and case studies should be used to illustrate this.
For outcome of learning 2, a guest speaker from a decision-maker in business,
preferably an entrepreneur or someone involved in developing new business ideas at
a large company, could talk about how they assess ideas and the chances of their
success.
Learners should have the opportunity to practise application of different techniques
for generating ideas through examining as many business ideas as possible. They
could then apply the four areas of feasibility analysis to these ideas to determine the
most viable. Learners need to understand that not all good ideas are viable business
opportunities, and case study examples can be used to illustrate the importance of
feasibility analysis in developing successful business ideas. To analyse the
industry/market, learners could select an industry, e.g. the soft drink beverage
industry, and work through Porter’s five forces model in class, discussing how these
five factors assess the attractiveness of the industry.
For outcome of learning 3, the importance of producing a well-defined strategy can
be illustrated through the tutor providing examples of completed and effective
business plans for learners to examine. A powerful, motivating personal vision is one
of the defining characteristics of entrepreneurial management. Guest speakers could
be used to explain how they articulate this vision to give the venture a sense of
direction and purpose.
Learners need to understand the difference between primary and secondary research
and questionnaires can be devised, tested and evaluated in the learner group. Case
Specification – Pearson SRF BTEC Level 6 Professional Diploma qualification
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study material can be used to illustrate the differences between qualitative and
quantitative data, and learners should appreciate the difficulties for an entrepreneur
in collecting relevant information in order to inform the business plan.
Finally, in order to plan the future growth of a viable business idea for outcome of
learning 4, learners need to assess their own entrepreneurial skills and attributes
against the needs of the business idea. A guest speaker, preferably a human
resources professional, could provide guidance and advice on the usefulness of
psychometric tests and how they appraise the results. Learners can access
psychometric tests on the internet – some are free of charge, some require a fee.
By the time learners study outcome of learning 4 they should have examined a range
of different strategies for growth from a wide range of case studies. This will help
them to consolidate their learning in order to recommend the suitability of alternative
strategies for growth of a viable business idea.
Assessment guidance
Assessment for this unit should be evidenced through research carried out on
entrepreneurial organisations and individual entrepreneurs, using either a selected
organisation or a case study approach. Where possible, learners should be
encouraged to use examples from their own organisations. If case studies are used
they must be sufficiently detailed to enable learners to apply their evaluative skills.
A range of assessment methods can be used, for example presentations,
management reports, essays, or professional discussion. All evidence presented must
support achievement of the assessment criteria.
One assignment could cover the evidence requirements for this unit, broken down
into four separate tasks, although centres should write their own assignments to
meet local needs. The learner could act as a business consultant advising on
entrepreneurship, the need for it in today's economy and the skills necessary in order
to plan an entrepreneurial business idea and strategies for its growth.
Learners could analyse the characteristics of successful entrepreneurs and how this
dynamism is exploited in an established business, and create a plan for a viable
business idea, ensuring that strategies for growth are considered. For example,
outcomes of learning 1 and 2 could be addressed by one assignment task on the
nature of entrepreneurship and intrapreneurship. The research on the process for
generating business ideas for outcome of learning 2 could be developed into the plan
for outcome of learning 3. The planning for growth for outcome of learning 4 could be
evidenced through a separate task whereby learners assess the skills and strategies
needed to achieve growth.
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Suggested resources
Books
Barringer B and Ireland R D – Entrepreneurship – Successfully Launching New
Ventures (Pearson 3rd Edition, 2010) ISBN 978-0138158088
Robson C – Confessions of an Entrepreneur – The Highs and Lows of Starting Up
(Pearson Education, 2010) ISBN 978-0273721482
Wickham P A – Strategic Entrepreneurship (FT Prentice Hall 4th Edition, 2006)
ISBN 978-0273706427
Journals
International Journal of Gender and Entrepreneurship (Emerald EarlyCite)
International and Entrepreneurship Management Journal (Springer)
The Economist
Newspapers
The Financial Times
Websites
www.bookbutler.co.uk Database and book price comparison site
www.businessballs.com Business resources including a template business
plan
www.businesslink.gov.uk Business link site for guidance on skills, planning
and legislation for entrpreneurs
www.fsb.org.uk Federation of Small Businesses
www.peterjones.tv Peter Jones’ website and resources
www.sfedi.co.uk UK Sector Skills Body for Enterprise
Specification – Pearson SRF BTEC Level 6 Professional Diploma qualification
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Unit 7: Change Management
Level: 6
Notional Learning Hours: 150
Value (NLH/10): 15
SRF unit code: 20446E
This unit is internally assessed
Unit aim
This unit aims to give learner understanding of the management of change in
organisations and the skills to engage in the process of proposing change in an
organisational context.
Unit introduction
All organisations are in a state of flux, changing their focuses, expanding or
contracting their activities and rethinking their products and services. Many
established organisations often look nothing like they did five years ago and it is
highly likely that over the next five years, organisations will not look as they do
today. Learners will understand that organisational change is often provoked by
some major external driving force such as substantial cuts in funding or competition
from emerging nations such as China or India. Typically, organisations must
undertake organisation-wide change to evolve to a different level in their life cycle.
Learners will discover that successful organisations respond intelligently to regional,
national and global factors which precipitate change. Economic climates, political
trends, changes in consumer demands, management policy or structure, employment
levels and financial resources – all these elements are constantly at play.
Although the unit is underpinned by an exploration of the relevant theoretical
models, the intention is that learners will apply their learning to specific
organisations. This will then enable them to identify issues that require change and
to use appropriate tools and techniques to develop a model for change in an
organisation.
Learners will understand that managers have to be able to introduce and manage
change to ensure that the organisational objectives of change are met. They will
learn that managers have to ensure that they gain the commitment of their people
and that this may involve managing resistance to change, both during and after
implementation. Often, at the same time, they also have to ensure that business
continues as usual.
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Outcomes of learning and assessment criteria
To pass this unit, the learner needs to demonstrate that they can meet all the
outcomes of learning. The assessment criteria determine the standard required to
achieve the unit.
Outcomes of learning Assessment criteria
1 Understand the
background to
change
management in
organisations
1.1 Discuss models of change management
1.2 Evaluate the relevance of models of change
management to selected organisations in the current
economy
2 Understand issues
relating to change
in organisations
2.1 Examine the need for change in an organisation
2.2 Critically evaluate factors that are driving the need for
change in selected organisations
2.3 Explain issues which hinder the process of change
3 Be able to present
proposals for
change in an
organisation
3.1 Identify an area for change in an organisation
3.2 Develop an appropriate model for change in an
organisation
3.3 Plan a model for implementing change in an
organisation
3.4 Examine the resource requirements for implementing
change in an organisation
3.5 Present a proposal for change to relevant
stakeholders in an organisation
4 Be able to prepare
to manage the
change process
4.1 Develop appropriate measures to monitor and
evaluate the progress of change in an organisation
4.2 Create a strategy for managing resistance to change
in an organisation
Specification – Pearson SRF BTEC Level 6 Professional Diploma qualification
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Unit content
1 Understand the background to change management in organisations
Models:
? Kotter
? Kübler-Ross
? Prosci – ADKAR (awareness, desire, knowledge, ability, reinforcement) model
? McKinsey’s 7S (strategy, structure, systems, shared values, skills, style, staff)
framework
? Kurt Lewin’s change management model
? Burke-Litwin’s causal change model
? action research
? gap analysis
2 Understand issues relating to change in organisations
Need for change:
? reasons
? changes in markets, economic downturns, customer expectations, competitive
edge, budget pressures, legislation, size, demographics, mergers, acquisitions,
change in mission, restructuring operations, new technologies, major
collaborations, rightsizing, new programmes such as Total Quality Management
(TQM), re-engineering
Factors driving change:
? change drivers
? economics
? political
? environmental
? financial
? new/loss of markets
? technological advances
? new chief executive
? funding cuts
? be competitive
? mergers
? acquisitions
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Factors hindering change:
? structural inertia
? existing power structures
? employee attitudes
? communication barriers
? embedded values
? exclusion from the change process
? process failures
3 Be able to present proposals for change in an organisation
Areas for change:
? restructuring functional areas
? organisation structures
? technological change
? change of mission, downsizing, rightsizing
Models for change:
? planned versus unplanned
? incremental/slow/gradual
change/transformational/radical/fundamental/easy/difficult change
? light/ medium/ complex models
? project management processes
Resource requirements:
? human resources, e.g. restructuring, interviewing and hiring, redundancies,
training
? physical resources, e.g. equipment, vehicles, buildings
? financial resources, e.g. costs of training, redundancy costs, relocation costs
? new building, refurbishment of existing buildings
Specification – Pearson SRF BTEC Level 6 Professional Diploma qualification
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4 Be able to prepare to manage the change process
Measures to monitor and evaluate change:
? action planning
? flow diagrams
? task analysis, standards
? performance tolerance
? agreeing timescales
? setting and measuring outcomes
? measuring input/output
? feedback processes/systems
? control loops
? target revision
? regular and exception reporting
? surveys and interviews
? iterative processes
? formal and informal knowledge channels
? quantitative and qualitative measures
? 80/20 rule
? disseminating awareness
? sustainability
? records/data
? strengths and weaknesses
? indicators of efficiency and effectiveness
? qualitative and quantitative analysis
? review and evaluate progress
? make recommendations
Strategies for overcoming resistance to change:
? education and communication
? participation and involvement
? negotiation and agreement
? manipulation and co-option
? implicit and explicit coercion
? push-pull principle
? exchange principle
Specification – Pearson SRF BTEC Level 6 Professional Diploma qualification 67
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Information for tutors
Delivery guidance
Outcome of learning 1 provides tutors with an opportunity to draw on the
experiences of learners in their own organisations. Learners could be encouraged to
discuss and share their experiences of change within their own workplaces. It is likely
that all employed learners will have different experiences of change in their
workplace. They could be encouraged to discuss the reasons why change was seen to
be necessary in their organisations and to compare the key drivers of that change.
Learners will have different experiences of factors that may have hindered the
change in their organisations and it will be useful for the tutor to draw out these
factors in discussions. Tutors could also draw on topical examples of change. For
example, the ways in which local authorities are considering changes to their
operations following the cuts in public expenditure by the current government.
Having considered the underlying background to change, outcome of learning 2
provides tutors with an opportunity to introduce learners to theoretical models of
change. There is likely to be some lecturing or other form of presentation and the
learning from this can be consolidated through small group discussions based on
analysis of case studies or on how the material applies to organisations familiar to
the students. Learners could conduct their own research into the models and identify
how these could be appropriate to organisations in the current economic climate.
Topical case studies are a useful method of examining the different ways in which
organisations approach the need to change. For example, the Legal Services
Commission’s strategy focused on changing work practices and reducing wasteful
expenditure. Tutors could use a case study such as this to examine the process of
change in an organisation and to link the application back to theoretical models.
Outcome of learning 3 focuses on learners being able to present proposals for change
to relevant stakeholders in an organisation. Learners should discuss their proposals
with their organisation and with the tutor before embarking on their research. When
covering outcome of learning 3, learners could be encouraged as much as possible to
apply the theoretical models to their selected organisation. Small group discussions
can be a valuable vehicle for testing ideas as their proposals begin to develop. Tutors
can lead group discussions on the resource implications of change using case studies
to illustrate this. Learners can present their findings to relevant stakeholders.
A good starting point for outcome of learning 4 is the experience of learners
themselves. It is likely that they will all have experienced change either in a
workplace or in a social situation. Small group discussions are a good method of
drawing out these experiences and of linking them to the issues surrounding
resistance to change in organisations. Tutor input would be required on ways to
monitor and evaluate change. This could be accompanied by case studies on
organisations that have experienced significant change such as Corus Steel or
Unison. Tutors could use case studies to draw out comparisons about the ways in
which the organisations have monitored and evaluated the change process and
outcomes.
Specification – Pearson SRF BTEC Level 6 Professional Diploma qualification
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Assessment guidance
For AC1.1, learners will need to show that they understand the different approaches
to models of change management. They need to discuss a minimum of three
established models, highlighting the differences in approach.
For AC1.2, learners will need to show that they are able to evaluate the usefulness of
the models of change management in organisations of their own choice. They need to
use examples from organisations to explain how the model is appropriate in the
context of the selected organisation.
For AC2.1, learners will have identified the need for change from their research of
their selected organisation. They will need to provide reasons why the change is
required and this will need to be linked to their research on the organisation and its
operations.
For AC2.2, it is important that learners show an understanding of the factors that can
hinder change in organisations. Showing an understanding, needs to be more than
just a list of factors that can hinder the change process. Learners need to
demonstrate that they can link the factors to organisational contexts and explain how
these factors have hindered the process of change in organisations.
For AC2.3, learners need to demonstrate that they have researched the organisations
and that they are able to assess the factors in the organisations that are hindering
the process of change.
For AC3.1, learners need to research information from a selected organisation and
identify an area for change. It should be realistic and it should be agreed in the
organisation and with the tutor before the learner proceeds.
For AC3.2 and 3.3, the learner needs to use the results of their research to develop a
model for change in the area of the organisation which has been identified as an area
that requires change. It is expected that learners will apply their knowledge from AC
1.1 when developing their model. Learners will then need to plan how the model
would be utilised in the organisation.
For AC3.4 and 3.5, learners will need to present their proposals to a group of
relevant stakeholders. This could be presented in a number of ways including a
PowerPoint presentation or a briefing session with handouts. It is expected that the
presentation will include a session where stakeholders will have the opportunity to
probe and ask questions.
For AC4.1, learners will need to develop appropriate measures to monitor and
evaluate the progress of change in an organisation. This will need to be more than
just a list of general measures. The measures will need to be practical, workable and
appropriate to the organisational context.
For AC4.2, learners need to create a strategy for managing resistance to change. It
needs to address the issues and provide a workable approach to overcome the
resistance to change. The strategy will need to show awareness that resistance to
change can come from all levels and all sections of an organisation.
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Suggested resources
Books
Blake I and Bush C – Project Managing Change: Practical Tools and Techniques to
Make Change Happen (Financial Times/Prentice Hall, 2008)
ISBN 978-0273720454
Cameron E – Making Sense of Change Management, 2nd Edition (Kogan Page, 2004)
ISBN 978-0749453107
Carnall C – Managing Change in Organizations, 5th Edition (Financial Times/Prentice
Hall, 2007) ISBN 978-0273704140
Diamond M A and Allcorn S – Private Selves in Public Organizations: The
Psychodynamics of Organizational Diagnosis and Change (Palgrave Macmillan, 2009)
ISBN 978-0230613096
Dunphy D, Griffiths A and Benn S – Organizational Change for Corporate
Sustainability (Routledge, 2007) ISBN 978-0415393300
Fullan M – Leading in a Culture of Change (Jossey-Bass, 2007)
ISBN 978-0787987664
Green M – Change Management Masterclass (Kogan Page, 2007)
ISBN 978-0749445072
Helms-Mills J, Dye K and Mills A J – Understanding Organizational Change
(Routledge, 2008) ISBN 978-0415355773
Herold D M and Fedor D B – Change the Way You Lead Change (Stanford University
Press, 2008) ISBN 978-0804758758
Kehoe D – Leading and Managing Change (McGraw-Hill Professional, 2007)
ISBN 978-0070137882
Leban B – Managing Organizational Change, 2nd Edition (John Wiley and Sons, 2007)
ISBN 978-0470897164
Lewis S, Passmore J and Cantore S – Appreciative Inquiry for Change Management
(Kogan Page, 2007) ISBN 978-0749450717
Nelson S – Implementing for Results (ALA Editions, 2009)
ISBN 978-0838935798
Stewart Black J and Gregersen H B – It Starts with One: Changing Individuals
Changes Organizations (Pearson Education/Wharton School Publishing, 2008)
ISBN 978-0132319843
Specification – Pearson SRF BTEC Level 6 Professional Diploma qualification
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Journals
Academy of Management Journal (Academy of Management)
British Journal of Management (John Wiley and Sons)
California Management Review (University of California, Berkeley)
European Management Journal (Elsevier)
Harvard Business Review (Harvard Business Publishing)
Journal of General Management (Braybrooke Press Ltd)
Journal of Management Studies (John Wiley and Sons)
Management Today (Haymarket Business Media)
MIT Sloan Management Review (Massachusetts Institute of Technology)
Websites
www.businessballs.com Change management articles and links
www.changingminds.org Useful articles on change management by leading
theorists
www.managementhelp.org Articles on strategic change and further links
www.themanager.org The ‘7s’ model of change
www.mindtools.com Lewin’s change management model
www.12manage.com Articles on the framework for change
Specification – Pearson SRF BTEC Level 6 Professional Diploma qualification 71
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Specification – Pearson SRF BTEC Level 6 Professional Diploma qualification
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Unit 8: Contemporary Issues in Business
Level: 6
Notional Learning Hours: 150
Value (NLH/10): 15
SRF unit code: 20448E
This unit is internally assessed
Unit aim
This unit aims to give the learner understanding of contemporary issues in business
resulting from changes in the business environment, together with the skills to apply
this understanding in an organisational context.
Unit introduction
The contemporary issues in engineering result from the ever-changing business
environment. All organisations, whatever their size and whether in the public or
private sector, operate in a constantly changing environment. Within this change,
organisations have the opportunity to develop and grow. This unit explores the issues
and the resultant skills needed to work effectively in this changing environment.
Organisations need to be concerned with the social, cultural and moral issues that
affect their business activities and in this unit learners will examine the implications
of this behaviour for an engineering organisation and its stakeholders. Taking an
ethical stance on topical issues such as whistleblowing, work-life balance and using
social networking as a business communication tool are all issues that learners will
investigate in this unit.
Learners will understand that key aspects of the business environment overlap and
interlink and that any changes cannot be neatly fitted into one specific area. This unit
will enable learners to appreciate the importance of understanding an organisation’s
environment in order to assure business success by being able to react to and
anticipate any changes that might affect it.
Finally, learners will assess how changes in the environment impact on business skills
requirements. They will investigate what business skills they need and the
communication requirements as a result of changes to the environment.
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Outcomes of learning and assessment criteria
To pass this unit, the learner needs to demonstrate that they can meet all the
outcomes of learning. The assessment criteria determine the standard required to
achieve the unit.
Outcomes of learning Assessment criteria
1 Understand the
social, cultural and
moral issues that
affect
organisations in
the current
business
environment
1.1 Explain ways in which organisations can improve
workplace welfare
1.2 Assess approaches used by organisations to the
management of diversity
1.3 Evaluate the impact on stakeholders of the social,
cultural and moral issues facing a selected
organisation
2 Understand the
ethical issues that
affect
organisations in
the current
business
environment
2.1 Explain the ethical issues businesses should consider
in the current business environment
2.2 Evaluate the implications of ethical behaviour on the
stakeholders and the business
3 Be able to evaluate
current ethical
issues in a
business
3.1 Research a current ethical issue which is affecting a
selected organisation
3.2 Propose ways in which an organisation could improve
the ethics of their operations
4 Be able to assess
how changes in
the environment
are impacting on
business skills
requirements
4.1 Examine the drivers for change affecting required
business skills
4.2 Report on the impact of changes on business skill
requirements in a selected organisation
4.3 Plan to improve communication skills requirements
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Unit content
1 Understand the social, cultural and moral issues that affect organisations
in the current business environment
Social, cultural and moral issues:
? equal opportunities, diversity
? disability
? discrimination
? racism
? harassment
? bullying
? whistleblowing
? privacy
? confidentiality (up-to-date legislation covering these issues must be used)
? workforce profiling
? dignity in the workplace
? multi-culturalism, stereotyping
? labelling
? prejudice, glass ceilings
? human rights
? moral imperatives
? value rigidity
? empowerment
? management styles
? work-life balance
? childcare provision
? professional development
? employee participation
Implications:
? adapting business behaviour
? influence of stakeholders and pressure groups
? impact on competitiveness
? reputation
? public image
? ethical trade
? value-added
? complying with relevant legislation and codes of practice
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2 Understand the ethical issues that affect organisations in the current
business environment
Ethical issues:
? corporate governance
? corporate social responsibility
? environment
? sustainability
? human rights
? corruption
? trading fairly
? legal and regulatory compliance
? business practices
? working conditions
? individual ethical responsibilities
? stakeholders’ interests
3 Be able to evaluate current ethical issues in a business
Issues:
? ethical issues, e.g. corporate social responsibility, globalisation, cultural
imperialism, ecology, environment, fair trade, corruption, child labour, carbon
footprint, sources of timber, outsourcing, personal attitudes, whistleblowing,
contribution of business to the community, ethics in sales and marketing,
product placement, ‘green washing’, ethics in intellectual property (software
piracy, counterfeiting, peer-to-peer file sharing)
Implications:
? responding to ethical pressures; implementing ethical practices
? global, e.g. environment
? corporate, e.g. legal and regulatory compliance, policies and practices
? individual (employee, consumer)
4 Be able to assess how changes in the environment are impacting on
business skills requirements
Drivers for change:
? drivers, e.g. technology, globalisation, information
? need for instant information
? current business and economic climate
? political trends
Specification – Pearson SRF BTEC Level 6 Professional Diploma qualification
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Business skills:
? cross-cultural skills
? collaborative working
? management style
? customer service
? team development
? social and interpersonal skills
? entrepreneurial skills
? online and direct communication processes
? social networking
? impact of technology on interpersonal skills
? communication etiquettes
Specification – Pearson SRF BTEC Level 6 Professional Diploma qualification 77
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Information for tutors
Delivery guidance
The approach to delivery should provide a theoretical underpinning and draw from
current news media or professional journals. An active learning environment should
be provided in which learners are encouraged to explore the implications of the
contemporary issues raised in this unit. Activities should be designed to encourage
learners to develop the ability to evaluate issues from different viewpoints.
The delivery of outcome of learning 1 could begin with a group exercise where
learners discuss how to improve workplace welfare. Learners should be encouraged
to draw on their own experiences of work and they could record their discussions on
paper that is posted around the classroom to enable other learners to share their
thoughts. The tutor could then use this work to conduct a whole-class discussion on
the implications of any recommendations on organisations and on individuals. Other
useful classroom activities include learners using the internet to research examples of
good and bad practice relating to the social, cultural and moral issues raised. It is
important that the tutor thoroughly examines each of the social, cultural and moral
issues affecting organisations and provides up-to-date information on relevant
legislation. Where possible, tutors should bring in current examples from
organisations.
For outcome of learning 2, it is important that the tutor provides a theoretical
underpinning of the ethical issues raised, as well as drawing on current ethical issues
from news media. It would be a useful exercise to look at leading examples of ethical
business and explore the implications on stakeholders and the organisation.
For outcome of learning 3, learners will build on what they have already studied
about ethical issues by exploring the impact of ethical issues on selected
organisations. Learners could be asked to lead the delivery of this outcome of
learning by individually selecting a different ethical issue and exploring how it is
affecting a selected business. Learners could then share their findings with the rest of
the class. This activity could contribute towards their assessment.
In outcome of learning 4, learners will study drivers for change and how these
drivers impact on business skills requirements. It should be possible to build on
learners’ existing knowledge of changes in the environment and the tutor could
conduct a tutor-led discussion on the impact of these changes on work skills. Looking
at some current, well-selected examples from business that illustrate this process
would be beneficial. It may be an interesting exercise for learners to explore their
own work skills and assess whether they need to plan to improve their skills based on
changes in the environment. In doing this the tutor could provide a workshop-style
session where learners take part in a carousel of activities designed to update their
work skills based on the changing environment.
Specification – Pearson SRF BTEC Level 6 Professional Diploma qualification
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Assessment guidance
The assessments need to be based on carefully selected and well-developed case
studies or on real organisation(s). The assessment can be designed to direct learners
to find their own organisations or learners can be given suitable real organisations. If
learners are employed they may be able to use their own organisations for some of
the assessment criteria. Where possible, an organisation can be used for more than
one or all of the outcomes of learning but it is equally acceptable to use a different
organisation for each outcome of learning.
For outcomes of learning 1 and 2 learners could be given a scenario where they have
to provide an information pack for organisations to help them understand current
social, cultural, moral and ethical issues affecting organisations. Learners need to
provide enough detail with required analysis and evaluation to show that they have
met the assessment criteria. A number of tasks are needed to ensure that learners
have met the assessment criteria and tasks should direct learners to provide an
explanation of ways in which organisations can improve workplace welfare and an
assessment of approaches used by organisations to manage diversity and ethical
issues in the current business environment. Learners also need to select an
organisation to use to evaluate the impact of social, cultural and moral issues on
stakeholders and the impact of ethical behaviour on stakeholders and the
organisation. The organisation used could be the same one that the information pack
is directed towards or the learner could bring in other organisations.
For outcome of learning 3 learners could produce a report on the findings of their
own research into how one current ethical issue is affecting a selected organisation.
It is likely that the organisation selected will be one that has received negative media
attention for its business ethics. The report should include their own proposals about
how the organisation could improve the ethics of their operations.
For outcome of learning 4, learners could be given a made-up scenario where they
have been asked to provide training for their colleagues of a selected organisation
about how changes in the environment impact on business skills requirements. This
could involve learners producing a presentation where they examine, in general, how
drivers for change are affecting required business skills, before exploring how these
drivers have brought about change in the business skill requirements in a selected
organisation. Finally, learners need to put together a plan to help their colleagues to
improve communication skills in a selected organisation.
Suggested resources
Books
Crane A and Matten D – Business Ethics: Managing Corporate Citizenship and
Sustainability in the Age of Globalization (Oxford University Press, 2006)
ISBN 978-0199284993
Kotler P and Lee N – Corporate Social Responsibility: Doing the Most Good for Your
Company and Your Cause (John Wiley and Sons, 2005)
ISBN 978-0471476115
Mallin C – Corporate Governance (Oxford University Press, 2009)
ISBN 978-0199566457
Solomon J – Corporate Governance and Accountability (John Wiley and Sons, 2010)
ISBN 978-0470695098
Visser W, Matten D, Pohl M and Tolhurst N – The A to Z of Corporate Social
Responsibility (John Wiley and Sons, 2010) ISBN 978-0470686508
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Journals
Management Today (Haymarket Business Publications)
Professional Manager (Chartered Management Institute)
The Economist (The Economist Group) has articles on corporate social responsibility
from time to time.
The Times (Times Newspapers Ltd) has daily business pages which feature items on
a corporate social responsibility from time to time.
Websites
www.businesslink.gov.uk Government’s online resource for businesses
including advice on environmental issues and
efficiency
www.unodc.org/unodc/en/treaties/CAC/index.html
United National Convention Against Corruption
www.un.org/documents/ga/conf151/aconf15126-1annex1.htm
Rio Declaration on Environment and Development
Specification – Pearson SRF BTEC Level 6 Professional Diploma qualification
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Unit 9: Applying Lean Principles to
Business Operations
Level: 6
Notional Learning Hours: 150
Value (NLH/10): 15
SRF unit code: 20447E
This unit is internally assessed
Unit aim
The aim of this unit is to provide the understanding needed to evaluate the
effectiveness of the quality management of business operations, and to develop the
skills needed to apply lean tools and techniques for planning a quality change.
Unit introduction
Business operations includes how organisations produce goods and services. Every
organisation has an operations function.
In this unit learners will consider the meaning and role of business operations and its
importance and management in all types of organisation. This knowledge will enable
learners to evaluate the suitability of the management processes in the business
operations of an organisation in their pursuit of quality.
Learners will gain knowledge and understanding of the principles and concepts
associated with quality management. This unit gives learners the opportunity to look
at how managers can improve business operations through using different
approaches. The lean philosophy has been transposed to non-manufacturing
organisations and in this unit learners will assess the suitability of using different
tools and techniques to improve work activities.
Learners will examine the practices needed for planning a quality improvement
programme. Through identifying and planning the resources needed to meet specific
organisational objectives, learners will be able to make a significant contribution to
planning the introduction of a quality change to improve organisational performance.
Critical thinking and self-directed study are important aspects of working at this
level.
Finally, learners will consider the performance measurement methods available to
evaluate the impact of the improvement on the business activities.
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Outcomes of learning and assessment criteria
To pass this unit, the learner needs to demonstrate that they can meet all the
outcomes of learning. The assessment criteria determine the standard required to
achieve the unit.
Outcomes of learning Assessment criteria
1 Understand the
suitability of the
management of
business
operations in an
organisation
1.1 Discuss why the management of business operations
is important in any organisation
1.2 Evaluate the suitability of existing business operations
management for a selected organisation
2 Understand the
role of quality
management in an
organisation
2.1 Explain the importance of a total quality approach to
achieving organisational excellence
2.2 Critically evaluate the suitability of existing quality
processes for a selected work activity in an
organisation
3 Be able to use lean
methods to
improve the
management of
business
operations in an
organisation
3.1 Compare the benefits of using lean tools and
techniques with other approaches when managing the
improvement of business operations in an
organisation
3.2 Propose lean tools and techniques which can be used
for improvement in selected work activities in an
organisation
3.3 Justify the most appropriate approach for promoting
continual improvement of business operations in a
selected organisation
4 Be able to plan a
quality
improvement in an
organisation
4.1 Plan for a quality change to improve organisational
performance
4.2 Recommend resources, tools and systems to support
business processes in a quality improvement in an
organisation
5 Be able to evaluate
the impact of
quality
improvement on
an organisation
5.1 Critically evaluate the impact of the quality
improvement on business activities in a selected
organisation
Specification – Pearson SRF BTEC Level 6 Professional Diploma qualification
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Unit content
1 Understand the suitability of the management of business operations in an
organisation
Operations management:
? activity of managing the resources needed for the production and delivery of
products and services
? managing processes
? operations as a core function and as an activity
? transformation process
? importance
? relevance for all managers and organisations
2 Understand the role of quality management in an organisation
Quality:
? definitions
? quality gurus
? evolution of quality
? product quality and service quality, benchmarking
? best practice
? self-assessment
? vision
? continuous improvement
? quality models
? quality characteristics
Total Quality Management (TQM):
? definition
? philosophy, principles, methods, techniques
? quality costs
Importance of quality management:
? improvement in quality of the final product or service
? reduction in wasted resources
? increased productivity as effective use of time by staff
? long-term increase in market share, leading to sustained competitive advantage
? motivated workforce as employees realise their full potential
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3 Be able to use lean methods to improve the management of business
operations in an organisation
Lean principles:
? philosophy
? definition
? background
? benefits
? design and state of the workspace
? differences between lean production and lean organisation techniques
Lean tools and techniques:
? applying the tools
? tools
4 Be able to plan a quality improvement in an organisation
Planning for a quality change:
? identifying improvement needs
? developing plan
? gap analysis
? setting aims and objectives
? justification
? prioritising activities
? identifying constraints
? success criteria
? review
Designing systems:
? process, objectives, systems and operations
? layout and flow of processes
? approaches to improvement
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Resources, tools and systems:
? project-management techniques
? facilities
? workforce
? machinery
? transportation
? technology
? quality systems
? quality circles
? TQM
? aligning resources with objectives
? resource constraints
Benefits of a quality change:
? improved business performance, corporate image, reputation, standing
? competitor response
? impact on other functions and departments
5 Be able to evaluate the impact of quality improvement on an organisation
Performance measures:
? key performance indicators
? objectives
? balanced scorecard
? difference between performance measurement and performance management
? benchmarking
Evaluation of quality improvement:
? monitoring and evaluation techniques
? action learning
? business performance indicators
? customer feedback
? effect on sales and profit
Specification – Pearson SRF BTEC Level 6 Professional Diploma qualification 85
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Information for tutors
Delivery guidance
This unit will help learners develop an understanding of the factors involved in lean
quality management operations through considering a quality improvement in the
business operations of an organisation. It is recommended that centres use a wide
range of teaching and learning methods so that learners achieve all of the outcomes
of learning in the unit. These could include lectures, seminars, workshops, project
work, individual and group assessments.
The teaching/learning methods used should draw on material from industry wherever
possible, also learners’ own experiences. This will help learners to develop the
transferable skills necessary in a changing and dynamic environment. Learners will
develop skills to apply lean tools and techniques when planning a quality change.
To introduce the unit and outcome of learning 1, it would be useful for learners to
have a discussion on the historical development of operations management. Learners
could then explore the functions and activities of operations management in an
organisation, including their own. Learners need to understand how operations
management impacts on the achievement of organisational objectives and through
individual and group work, they could reflect and evaluate whether their own and
other organisations’ operations management has been successful or not. Case
studies can be used to demonstrate the importance of operations management.
For outcome of learning 2, learners need to understand the importance of managing
quality in an organisation to achieve organisational excellence. Learners could assess
quality management in their own organisations and guest speakers could be used to
give learners useful information on how other organisations manage quality.
For outcome of learning 3, learners need to understand the concept of lean as an
approach to operations management that emphasises the continual elimination of
waste. A guest speaker could explain how the principles and techniques of lean
manufacturing have affected non-manufacturing environments to improve business
performance. Learners could research the lean techniques used in their own
organisations, and use case study exercises to apply these techniques and explore
the differences between the improvement approaches in terms of a gradual,
continuous approach to change or a more radical ‘breakthrough’ change.
For outcome of learning 4, learners will need to understand the processes involved in
order to plan a quality change and the resources needed to achieve success. Group
activities can involve simulation exercises to plan a quality improvement, identifying
the resources, tools and systems that need to be in place. Again, case studies and
visiting speakers can be used to help learners understand the importance of planning
to ensure a successful outcome.
For outcome of learning 5, learners need to understand how to evaluate the
outcomes of a quality improvement. Tutors could encourage learners to use their
experiences and knowledge gained in their own organisations where quality
improvements may have been introduced. They also need to know about the various
evaluation methods and how they can be put in place to measure success. Case
studies or guest speakers would be useful to help examine the impact of the
improvement on the business.
Specification – Pearson SRF BTEC Level 6 Professional Diploma qualification
in Business Innovation Management – Issue 2 – October 2014
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Assessment guidance
Assessment for this unit should be evidenced through research carried out on the
operations management either in a selected organisation or using a case study
approach. Where possible, learners should be encouraged to use examples from their
own organisations. If case studies are used they must be sufficiently detailed to
enable learners to apply their evaluative skills.
A range of assessment methods can be used, for example presentations,
management reports, essays, or professional discussion. All evidence presented must
support achievement of the assessment criteria.
One assignment could cover the evidence requirements for this unit, although
centres should write their own assignments to meet local needs. The learner could
act as a lean quality operations consultant for an organisation of their choice that
wants to improve its quality management operations. They could investigate the
existing quality operations within the organisation, and apply lean tools and
techniques to plan a quality improvement for a selected work activity, ensuring that
monitoring systems are in place to evaluate the outcomes of the improvement.
Suggested resources
Books
Aikens C H – Quality Inspired Management (Prentice Hall, 2011)
ISBN 978-0131197565
Fliedner EB – Lean Management (Business Expert Press, 2011)
ISBN 978-1606492475
Goetsch D L and Davis S B – Quality Management for Organisational Excellence, 6th
Edition (Pearson, 2010) ISBN 978-0135019672
Johnston R, Chambers S, Slack N, Harrison A and Harland C – Cases in Operations
Management, 3rd Edition (Financial Times/Prentice Hall, 2002)
ISBN 978-0273655312
Oakland J S – TQM: Text with Cases, 3rd Edition (Butterworth-Heinemann, 2003)
ISBN 978-0750657402
Slack N, Chambers S and Johnston R – Operations Management, 6th Edition
(Financial Times/Prentice Hall, 2010) ISBN 978-0273731603
Journals
Production, Planning and Control (Taylor and Francis)
The TQM Magazine (Emerald)
Specification – Pearson SRF BTEC Level 6 Professional Diploma qualification 87
in Business Innovation Management – Issue 2 – October 2014
Websites
www.efqm.org EFQM – helping European organisations learn
from each other and improve performance
www.hse.gov.uk Health and Safety Executive
www.iso9000.org International Quality Systems Directory
www.managerwise.com Business management information and resources
www.praxiom.com ISO quality standards translated into
understandable language
www.quality.co.uk Quality Network – a guide to subject of quality
management
www.uk.kaizen.com Information on Kaizen tools and techniques
Specification – Pearson SRF BTEC Level 6 Professional Diploma qualification
in Business Innovation Management – Issue 2 – October 2014
88
Unit 10: Project Management for
Engineering
Level: 6
Notional Learning Hours: 150
Value (NLH/10): 15
SRF unit code: 20449E
This unit is internally assessed
Unit aim
The aim of this unit is to give learners an understanding of the techniques and skills
required for effective project management.
Unit introduction
Over the last decade companies and organisations have taken a much more strategic
interest in project management as they seek to address pressures to reduce costs
and manage projects effectively. Although projects are undertaken in all areas and
sectors, it is the failure of engineering projects to deliver on time and on cost that
provide unwanted headlines. Knowledge and expertise in effective project
management is an important employability skill which enables engineers to combine
academic subject expertise with project management to contribute to profitability.
Outcome of learning 1 raises learners’ awareness of the status of project
management and enables understanding of project-management processes.
Outcome of learning 2 examines the characteristics and attributes of project
managers together with human resources issues, including planning and risk
assessment for project personnel. Project organisation and costing are covered in
outcome of learning 3. Here the concept of earned value is extended to encompass
value and risk management as a technique for optimising project benefits and costs.
Outcome of learning 4 allows learners to demonstrate their project-management
expertise by applying the knowledge and skills gained from outcomes of learning 1 to
3 to a real project in their workplace.
Specification – Pearson SRF BTEC Level 6 Professional Diploma qualification 89
in Business Innovation Management – Issue 2 – October 2014
Outcomes of learning and assessment criteria
To pass this unit, the learner needs to demonstrate that they can meet all the
outcomes of learning. The assessment criteria determine the standard required to
achieve the unit.
Outcomes of learning Assessment criteria
1 Understand
project-
management
processes
1.1 Describe the role of professional bodies in setting
standards for project management
1.2 Describe in detail the concept of the project lifecycle
1.3 Describe in detail the important features of the five
project-management processes
1.4 Compare and contrast project lifecycle and project-
management processes
2 Understand
personnel issues in
project
management
2.1 Critically evaluate the role of the project manager
2.2 Devise the staffing management plan for a project
involving more than ten personnel
2.3 Devise the personnel risk-management plan for a
project involving more than ten personnel
3 Understand project
execution
3.1 Describe in detail how project breakdown structure
and work breakdown structure are used for project
scheduling
3.2 Compare and contrast cost control techniques used in
project management
3.3 Critically evaluate the role of value and risk-
management plans in project management
4 Be able to
undertake project-
management
activities
4.1 Apply techniques and procedures to monitor and
report project progress
4.2 Plan actions arising from project progress
measurement information
4.3 Critically evaluate project outcomes
Specification – Pearson SRF BTEC Level 6 Professional Diploma qualification
in Business Innovation Management – Issue 2 – October 2014
90
Unit content
1 Understand project-management processes
Emerging standards in project management:
? standards and professional recognition, e.g. Project Management Body of
Knowledge (PMBOK), Projects IN Controlled Environments (PRINCE2),
Association for Project Management (APM)
Project lifecycle:
? lifecycle models, e.g. spiral development, Concept Assessment Development
Manufacturing In-Service Disposal (CADMID)
? project phasing, e.g. milestones, phases, stage gates
? front end loading
Project-management processes:
? project process groups (initiating, planning, executing, monitoring and
controlling, closing)
2 Understand personnel issues in project management
Project manager:
? roles
? responsibilities
? training
? decision making
? ethics
? professional practice
? communication skills, e.g. IT, written, verbal, meetings
? liaison skills, e.g. with project sponsor, with contractors, with consultants
? managerial skills, e.g. people management, time management, change
management, information management, negotiation, delegation
Specification – Pearson SRF BTEC Level 6 Professional Diploma qualification 91
in Business Innovation Management – Issue 2 – October 2014
Project team:
? staffing management plan
? recruitment (processes, timetable, release)
? organisational charts (roles, responsibilities)
? skills matrix
? motivation
? training
? teamwork
? performance assessment
? health and safety
? equal opportunities
Risk management – personnel:
? risk assessment, e.g. recruitment gaps, skills gaps, absenteeism, ill health,
injury
? personnel risk analysis
? risk-mitigation
? risk management plan
3 Understand project execution
Project organisation:
? project breakdown structure (PBS)
? work breakdown structure (WBS)
? scheduling techniques (relationship between schedules WBS and PBS)
? project integration management
? Gantt charts
? milestones
? deliverables
? critical path analysis
? execution strategy
Specification – Pearson SRF BTEC Level 6 Professional Diploma qualification
in Business Innovation Management – Issue 2 – October 2014
92
Project costing:
? procurement plan
? estimating
? budget allocation
? cost breakdown structure
? cost performance analysis
? cost control
? cash flow analysis (committed costs, actual costs, contingency)
? optimisation of benefits and costs
? concept of earned value
? value management (value drivers, key performance indicators)
Risk management – project execution:
? project organisation (risk analysis, risk mitigation)
? project costing (risk analysis, risk mitigation)
? time-cost-quality triangle
? value and risk-management plans
4 Be able to undertake project-management activities
Planning and programming:
? techniques for scheduling and programming material (diagrams and charts),
equipment, financial and human resources
Project progress and control:
? techniques and procedures (control, monitor and report progress)
? progress management information, e.g. completed work, work in progress,
costs, claims for variations, delays, disruption, cash flow
? post-project appraisal
Specification – Pearson SRF BTEC Level 6 Professional Diploma qualification 93
in Business Innovation Management – Issue 2 – October 2014
Information for tutors
Delivery and assessment guidance
Outcomes of learning 1 to 3 are likely to require learners to read the recommended
textbooks and undertake internet searches in order to fully appreciate and
understand the importance and status of project management.
Outcome of learning 4 should, if possible, be based on a project or projects in the
learner’s workplace. If this is not possible, case study materials will need to be made
available.
The project management unit covers project management in its widest sense for
middle management and above, personnel involved in large projects, i.e. more than
ten personnel.
Care must be taken in assessing learner work to ensure that the level of discussion,
analysis, evaluation and reflection meets expectations for professional project
managers and academic work at final year degree level, i.e. level 6.
Suggested resources
Books
Nokes S and Kelley S – The Definitive Guide to Project Management (Prentice Hall,
2007) ISBN 978-0273710974
Duncan W R – A Guide to the Project Management Body of Knowledge (Project
Management Institute, 2009) ISBN 978-1933890517
Lock D – Project Management (Gower Publishing Ltd, 2007),
ISBN 978-0566087721
Dallas M F – Value and Risk Management: A Guide to Best Practice (Wiley-Blackwell,
2006) ISBN 978-1405120692
Websites
www.apm.org.uk The Association for Project Management
www.prince2.com Formation about PRINCE 2 courses and
certification for project management
Specification – Pearson SRF BTEC Level 6 Professional Diploma qualification
in Business Innovation Management – Issue 2 – October 2014
94
Specification – Pearson SRF BTEC Level 6 Professional Diploma qualification 95
in Business Innovation Management – Issue 2 – October 2014
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