Higher Business Management: Advice, Command Words and Resources

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The SQA Higher Business Management course is divided up into five sections – understanding business, management of marketing, management of people, management of operations and management of finance. Higher Business Management is assessed by an exam lasting 2 hours and 45 minutes containing questions worth a total of 90 marks and an assignment completed in school which is worth 30 marks. The assignment involves candidates choosing a business and a topic to research and prepare a report.

This article will offer some tips for studying Higher Business Management, an overview of the command words, opportunities for further study and a list of useful resources.

Study Tips

  • Read business news stories and think about what is happening and why. This can help you put theory into practice.
  • Look at examples of real businesses. Remember including some examples in your answers may help you get your point across. 
  • Practice writing answers using the different command words. Make sure you understand what they mean and how to structure your answer. 

Command Words

Describe – You must offer a detailed description of the point you are making such as mentioning features or characteristics. One word answers or a brief outline will not be accepted. 

For example: Describe the main characteristics of high quality information.

High quality information is appropriate. The information provided will be suitable for the purpose for which it is intended. There will be no irrelevant information that is not related to the decision being made as this could cause confusion during decision making.

Explain – You must offer a detailed explanation of the reason for or impact of a particular course of action. Clearly explain the reasons and consider offering an example to explain your point. 

For example: Explain why a profitable business can have cash flow problems.

A profitable business can have cash flow problems due to having too much money tied up in stock. Having a large amount of unsold stock will cause cash flow problems as the business will not be generating income from the stock. The business will also be faced with the cost of storing stock. This means that the business’s revenue will decrease.

Justify – Give good reasons to support or explain your suggestions.

For example: Justify why strategic decisions are made by senior managers.

Senior managers making strategic decisions is beneficial as they will have a more thorough knowledge of the organisation. Senior managers are more likely to have better knowledge of the company, its aims and policies which is information that will be needed for effective decision making.

Outline – State the main features of a particular factor but do not go into great detail.

For example: Outline the main features of the Data Protection Act 1998 

Data held must be stored lawfully, securely and responsibly. 

Identify – State/list the answer. Identify is sometimes used alongside another command word such as explain or justify. 

For example: Identify a source of finance.

Bank overdraft.

Discuss – Examine the advantages and disadvantages of a particular factor and fully explain your point. You are making a case for or against the idea. 

For example: Discuss the use of just in time production. 

An advantage of just in time production is less storage space is needed as stock will not be on the premises for long. This could result in decreased rent or cost of premises. 

A disadvantage of just in time production is the business is relying greatly on suppliers. If the supplier does not deliver on time or delivers the wrong goods, the business may need to halt production meaning customer orders will not be completed on time. 

Distinguish – Identify differences between two or more factors. 

For example: Distinguish between a strategic decision and an operational decision. 

A strategic decision is made by senior management whereas an operational decision is made by lower management. 

Compare –  Show differences or similarities between two or more factors. You should point out the specific features of each to demonstrate each difference/similarity. 

For example: Compare functional grouping with product grouping. 

With functional grouping staff with similar knowledge and expertise will be working together whereas with product grouping staff are grouped together around a product or service. 

Interested in studying Business Management further?

Universities offer degrees in Business Management or a specific area of business such as Marketing, Finance, Accounting or Human Resources. If you are interested in particular area of business or know what sort of career you would like to have you can choose one of these areas of business to study. Some universities allow you to select two subjects to study as part of your degree for example Business and Marketing or Business and Human Resources.

You can also study Business courses at college or undertake a Modern Apprenticeship in an area of Business.

I remember studying Higher Business Management when I was in high school and I’m glad to say I kept all of my notes. Here they are in PDF format if anyone else feels they can get some use out of them.

Useful Resources

I have created a list of useful resources that could help you with your studying.