As there are areas common to the two subjects and because business makes up such an important part of the economy people often ask how the two subjects differ. What makes Economics and Business Studies different from one another are their different approaches, even on similar topic areas. The example of the study of labour markets in Economics as opposed to Human Resource Management in Business Studies illustrates this and how different the two subjects are:
Business Studies does what it says! – it studies businesses and how they operate. The approach to the course is less theoretical than Economics and involves studying how today’s businesses carry out their various functions - including marketing, finance, people and operations management. The course looks at how external factors affect businesses (such as competition; consumer demand; the activities of pressure groups and ethical issues) and how businesses react to them. It also draws together the business functions and the external environment to study the objectives and strategies that businesses adopt.
In addition to the College’s entry requirements, students should be equipped with reasonable written communication and numeracy skills. Students should have the ability to use a variety of sources of information including textbooks, reference materials, government and business data, the internet and their own knowledge and experience of business.
Business Studies combines well with most other AS subjects although some might argue the apparent overlap with AS Economics is too great to make that a suitable combination.
The AS course concentrates on small to medium sized businesses operating within national markets. The first unit covers the issues involved in business start-ups, such as research, planning and the factors that determine whether a business is successful. The second unit of study focuses on how established businesses might improve their effectiveness.
The A2 course considers strategies for larger businesses and how these strategies may change according to circumstances. Finally, it considers the effects that external factors can have on businesses and how a business can plan for and manage change, including leadership style and change in business culture.
In the Lower Sixth there are two units:- Planning and Financing a Business (1 hr exam 40% of AS 20% of full A level) and Managing a Business (1 ½ hour exam 60% of AS and 30% of full A level). In the Upper Sixth two more units are studied:- Strategies for Success (1 ½ hour exam 25% of A level) and The Business Environment and Change (1 ½ hour exam 25% of A level).
A Level Business Studies provides an excellent foundation for a wide range of University courses and careers. It is one of the fastest growing subjects at degree level, with many degree course that combine Business Studies or Management Studies with other subjects, including a modern foreign language. Business Studies can lead to career opportunities in both the private and public sectors, inside and outside the UK. Business Studies prepares students for working in a range of environments in both the public and private sectors. It gives students confidence and an understanding about the workplace at all levels and even their own enterprise.
Economics teaches students to think logically and to use theories to understand how economies operate. The basic economic problem of how we divide up our scarce resources and how decisions resulting from this affect us all is at the core of the subject – in other words who gets what and why? The subject, therefore, studies all of society and the activities of various groups and institutions within it, including consumers, firms and the government. This involves studying how markets allocate scarce resources, the effects of competition and government intervention.
The macroeconomic part of the course is what most people associate with economics. This includes the study of economic growth, inflation, unemployment and international trade and the difficulties the government faces when it attempts to steer the economy towards a particular economic objective.
Students are expected to take an interest in current affairs, to want to learn about why the economy works in the way it does, debate issues, interpret evidence and be prepared to make their own judgements about relevant topics.
AS Economics is not mathematical as such but does require a reasonable level of numeracy. For this reason candidates need to have achieved a B in GSCE Mathematics, among the normal 5 A*-C grade GCSEs that the College requires for Sixth Form entry. The main skill that a good economist needs is the ability to analyse economic data, to interpret graphs and tables, identify trends and explain these using economic theory.
The ability to see how one economic policy objective (e.g. low inflation) may affect other aspects of the economy (e.g. employment) is extremely important. Candidates need to have a clear mind, the ability to think and analyse logically and to be able to express themselves clearly in writing.
Economics will combine well with most other AS subjects, including sciences, social sciences, humanities or arts subjects. Combined with subjects such as Mathematics and Physics it can lead into engineering, while with Languages the subject can provide an excellent base for those looking to work abroad or in a company with overseas links.
AS Economics is divided into two modules: Markets in Action and The National and International Economy. The first module emphasises how markets allocate scarce resources. It will develop an understanding of the economic behaviour of consumers, firms and the role and actions of governments in markets. The emphasis in the second module is on developing a critical understanding of macro-economic issues concerning the national and international economy. It considers why alternative approaches to economic policy can be argued to be the best ways to manage the economy.
Two further Modules are covered in the second year of the course for the full A Level: the first A2 module is Economics of Work and Leisure and the second A2 module is The Global Economy.
In the Lower Sixth two units are studied: Markets in Action (1 ½ hour exam 50% of AS and 25% of full A level) and The National and International Economy (1 ½ hour written paper (50% of AS and 25% of full A level). In the Upper Sixth another two units are studied which are Economics of Work and Leisure (2 hour exam) 25% of full A level and The Global Economy (2 hour exam) 25% of full A level).
Economics is highly thought of in universities. All the traditional universities offer degree courses in the subject, often combined with Politics, Philosophy, Accounting or Humanities. Although students graduating from university with Economics degrees most commonly enter occupations in banking, accounting, management, business consultancy and government advisory work, the analysis and logical thinking involved in studying the subject means that it provides a good grounding for many alternative career paths.
07 February 2012