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Assessment Exemplar for Higher National Graded Unit DL1N 35: Business with Accounting: Group Award Graded Unit 3 Published by the Scottish Qualifications Authority Hanover House, 24 Douglas Street, Glasgow, G2 7NQ, and Ironmills Road, Dalkeith, Midlothian EH22 1LE The information in this publication may be reproduced to support SQA qualifications. If it is reproduced, SQA should be clearly acknowledged as the source. If it is to be used for any other purpose, then written permission must be obtained from the Support Materials Development Officer at SQA. It must not be reproduced for trade or commercial purposes. © Scottish Qualifications Authority 2004 Contents 1 Introduction 2 How to generate evidence 3 Assessment exemplar 1 Introduction This pack must be used in conjunction with a copy of the Graded Unit specification which details the standard of performance expected of the candidate. A copy of the Graded Unit specification can be obtained from SQA. This pack supplements the instructions for designing the assessment task and assessing candidates of the Graded Unit specification. It aims to provide an example of assessment that is valid, reliable and practicable. The assessment task(s) detailed in this pack corresponds to the instructions for designing the assessment task outlined in the Graded Unit specification. The example provided is intended for guidance only. It may be used in a variety of ways including, for example: · to exemplify the standard of performance expected of candidates achieving the Graded Unit, ie as a benchmark · to help you develop your own assessment for the Graded Unit · to give you new ideas · as a staff development tool It is important that you make sure that the assessment exemplar is used in a context appropriate to the delivery of the Graded Unit and to the group award of which it forms a part. It is also very important that you note that using this assessment exemplar does not automatically guarantee successful external moderation. It is still your responsibility to make sure that all the appropriate internal quality assurance procedures are satisfactorily completed. For example, a valid, effective and approved internal moderation system must be in use at your centre. Recommended reading Before using this material you might find it useful to look at some of our other publications, in particular: · Guide to Assessment and Quality Assurance for Colleges of Further Education (AA0841/3, September 2003) · Guidance on Special Assessment Arrangements (AA0645/4, September 2003) · Quality Assurance Principles, Elements and Criteria (A0798, December 1998) Details of these and other SQA publications are available in SQA Information, our publications catalogue which is updated and printed twice a year (telephone: 0845 279 1000). SQA Information lists all published HN assessment exemplars. You could also visit our website at www.sqa.org.uk. A free copy of this pack is available to all SQA approved centres at the time of initial distribution. Additional copies can be obtained, price £20.00 from SQA’s Customer Contact Centre, Scottish Qualifications Authority, 24 Douglas Street, Glasgow, G2 7NQ (telephone: 0845 279 1000 or fax: 0141-242 2123). Other related Units This Graded Unit has been validated as part of the HND Business with Accounting at level 8 within the Scottish Credit and Qualifications Framework (SCQF) . Centres are required to develop the assessment instrument in accordance with the validated specification. It is recommended that the candidate should have completed, or be in the process of completing, the following Units relating to these specific aims prior to undertaking this Graded Unit: Unit title Business Culture and Strategy Behavioural Skills for Business Economics 1: Micro and Macro Theory and Application Economics 2: The World Economy Preparing Financial Forecasts Information and Communication Technology in Business [All these are mandatory Units in the HND Business with Accounting] Core Skills Where Core Skills have been embedded in a Graded Unit specification and an assessor wishes to use an alternative method of assessment, she/he must ensure that the assessment generates the Evidence Requirements specified in the Graded Unit specification. It is recommended that the centre seek prior moderation for the alternative method to ensure that the Core Skill is still covered. The Graded Unit specification will detail the Core Skills covered within the Graded Unit. *There are no Core Skills embedded in this Graded Unit. 2 How to generate evidence Introduction The Scottish Qualifications Authority’s system of assessment measures the evidence of a candidate’s attainment of knowledge, understanding and skills against defined criteria. The assessment process must allow for evidence of each candidate’s performance to be generated and collected. This evidence must then be judged against the standards set out in the Graded Unit specification. To achieve the Graded Unit the candidate must successfully meet the standards and there must be evidence to prove this. The Graded Unit specification defines the criteria you need to use to judge whether or not the candidate has met the standards. All Graded Units have the following: Instructions for designing the task These tell you what the candidate actually has to do. Recommended prior knowledge and/or skills This section details the recommended knowledge and skills which the candidate should have completed or be in the process of completing prior to undertaking the Graded Unit. Assessment guidelines This section should give guidance on how best to conduct the assessment to generate the evidence required. It is important to realise that it is up to the assessor to judge when and if the candidate has satisfactorily met the standards. This decision should be based on the quality and correct quantity of evidence collected, set against the standards in the Graded Unit. The assessment instrument in this pack should not create any unnecessary barriers to achievement for open/distance learning delivery or candidates with special needs. However, you may need to adapt it so that you can assess candidates with special needs or candidates who are undertaking the Graded Unit on an open/distance learning basis. Obviously, whilst taking into account the needs of the candidate concerned, the methods of assessment you choose must still be valid, reliable and practicable. If you have any questions or problems, or if you are in any doubt as to whether or not the alternative assessment you have chosen is still valid, please contact the Customer Contact Centre at the Scottish Qualifications Authority on telephone: 0845 279 1000. Assessment exemplar Assessment tasks The table below summarises how the assessment exemplar task is to be marked and also indicates the evidence which should be retained for external moderation. Suggested task Suggested evidence to be retained Closed-book examination with seen case study. Questions should be marked in accordance with marking guidelines drawn up prior to the examination. Examination paper (including case study), marking guidelines, candidate responses to the examination. Conditions of assessment These are set out in the Graded Unit specification. They are given below. The assessment is based on a closed-book written examination lasting three hours. The examination consists of a case study of an organisation and questions relating to the case study. The examination questions are unseen and the assessment should be conducted in controlled and invigilated conditions. The case study should be given to candidates no less than 10 days prior to the date of the examination. Candidates may not bring their copy of the case study to the examination with them. A fresh copy of the case study must be given to candidates at the time of the examination. The grade given will reflect the candidate’s achievement on the first assessment event. A candidate may wish to retake the Group Award Graded Unit but this should be based on a significantly different examination. Assessment task Closed-book examination with seen case study Assessment task instructions An examination paper and a case study of BAA are given on the following pages. As noted above, candidates may be given a copy of the case study no less than 10 days before the date of the examination. They are not allowed to bring their copy to the examination and should be given a clean copy on the day. The examination should last for three hours. In accordance with the Graded Unit specification, the total marks for the examination are 100. Assessors should aggregate the marks achieved by the candidate to arrive at an overall mark for the examination. Assessors will then assign a grade to the candidate for this group award Graded Unit based on the following grade boundaries: · A = 70% — 100% · B = 60% — 69% · C = 50% — 59% The examination has been structured to meet the requirements of the Graded Unit specification. The table below illustrates how this is achieved. The Graded Unit specification does stress that the weightings given are an approximation. They are met on this occasion but several questions involve integration and any allocation between the various topics cannot be hard and fast. Topic Questions Weighting [Suggested weighting] Integration and problem solving 1 (a); 1 (b); 2 and 7 [part — 4 marks] 40% [40%] Applying financial concepts 4 (a) and 4 (b) 12% [12%] Applying economic concepts 7 [part — 4 marks] and 8 12% [12%] Applying strategic concepts 6 and 7 [part — 4 marks] 12% [12%] The use of behavioural skills 5 12% [12%] The use of ICT in business 3 12% [12%] BAA Background information BAA is the world’s largest airport company. It owns and operates seven UK airports and is involved in operations in twelve airports outside the UK. It began in 1966 when a state-owned enterprise, British Airports Authority, was established to manage key UK airports. The company was privatised as BAA plc and floated on the Stock Exchange in 1987. It operates four airports in England (Heathrow, Gatwick and Stansted in London plus Southampton) as well as Aberdeen, Edinburgh and Glasgow airports in Scotland. The company employs over 11,000 people throughout the world and its core business is airport operation. BAA’s activities cover all aspects of airport operation such as safety and security as well as the construction, development and maintenance of runways, terminals and other buildings. BAA also develops and manages all commercial activities at its airports. These include shops, car parks, catering outlets and a range of travel services. About 10% of airport space is allocated to retailing. Its main customers are those who make use of airport facilities such as airlines, passengers and other visitors. As a result, BAA gains revenue from three main sources: airport charges (applying to passengers and aircraft), property and operational facilities charges and retail income. Passenger volume is thus critical to its total revenue. BAA is the first company to be given the Partnership for Productivity award by the International Air Transport Association (IATA) which represents the world’s airlines. The award was based on BAA’s control of infrastructure costs and its ability to provide airlines with quality of service and value for money. BAA Gatwick has won the Travel Weekly ‘Best UK Airport’ Award eight times while leading industry experts consider Heathrow to be the best business airport in the UK. Appendix 1 gives further information on BAA’s organisation and management while Appendix 2 gives BAA’s mission statement and some measures of its operational performance in recent years. Appendix 3 gives some background on the aviation industry of which BAA is part. Operations The operations of BAA are directly related to its position in the aviation industry and the nature of airports. For instance, they are affected by the fact that many other organisations and companies work at airports. Appendix 4 lists some of the main ones involved. Appendix 5 shows the business model which BAA uses. Broadly, BAA’s operations cover two things: airport management which involves all aspects of airfield management (runways, aprons and taxiways — about 83 aircraft an hour leave BAA’s airports) and terminal management (buildings, passenger services and cargo). A key part of terminal management is the commercial facilities in airports. About 10% of all airport space is allocated to retailing. Security and passenger safety, including emergency arrangements in the event of an accident, are key aspects of BAA’s operations. About 35% of BAA’s UK staff work in security and about 1,000 new security staff have joined the company since 2001. BAA has been awarded the Gold Award for Safety Excellence from RoSPA (Royal Society for the Prevention of Accidents) for six consecutive years. The Civil Aviation Authority (CAA) affects BAA’s operations in that, by law, it regulates the charges at the three London airports by imposing a ‘cap’ on the amount that BAA can charge. This cap is fixed for a five year period and for 2003–2008, a rise above RPI was permitted for Heathrow but not for Gatwick or Stansted. BAA makes considerable use of information technology in co-ordinating the various activities that take place at airports and in providing up-to-date facilities for airport users. Appendix 6 gives some examples of how BAA makes use of ICT. Strategy BAA conducted a Strategic Review in 2000 which concluded that it should focus on its key airport business. As a result, BAA sold its interests in direct duty and tax-free retailing in the USA as well as dissolving its partnership in McArthurGlen designer outlet malls in the UK. Chairman Mike Clasper believes that this core business faces three key challenges: · managing the company’s capital programme tightly, efficiently and with imagination · laying the groundwork for longer-term expansion of our UK airports · responding to rising customer expectations about the quality of service provided Meeting these challenges means that BAA must have a substantial investment programme in order to maintain and develop its airport infrastructure. However, for this expenditure to be justified it needs to be confident that airport expansion will be possible. This, in turn, depends on the attitude of the government whose support for such developments is vital as are other stakeholders such as those living close to airports. Investment BAA has a significant capital investment programme. For example, in 2002, it completed a refurbishment of Terminal 3 at Heathrow which cost £100 million. Over the next ten years it plans to spend £8.4 billion on its three London airports and £500 million on its airports in Scotland. These plans mean it will spend more than £2 million every day on airport infrastructure. This level of investment requires careful management, especially as the construction industry is notorious for exceeding budgets. BAA has attempted to streamline the way that it manages its construction projects. From 2002, every construction worker must produce evidence of a specified level of competency. A ‘One in a Million’ campaign was launched in 2002 to reduce the accident frequency rate to one reportable accident per one million hours worked. Energy management and resource use have also been addressed. For example, a construction waste recycling scheme has led to over 70% of construction waste being recycled. Measures like these have improved safety and quality of output as well as reducing budget overruns. In 2002, BAA completed 94% of its construction projects with cost savings and 91% ahead of schedule. Airport expansion: the 2003 White Paper This is critical to BAA’s future but it depends on government policy on aviation. At the end of 2003, the government published a White Paper on the framework for the future development of the aviation industry in the UK over the next 30 years. Its recommendations, as far as BAA is concerned, include: · two new runways should be built in South-East England, one at Stansted and the other at Heathrow. However, while the runway at Stansted could start immediately, the new development at Heathrow would only take place if BAA can overcome nitrogen pollution and guarantee that no extra residents would suffer noise inconvenience · land should be safeguarded for terminal development and an additional runway at Edinburgh but, although substantial terminal development at Glasgow is supported a new runway is not Although the White Paper recommends expansion plans at 20 UK airports, BAA had argued for a bigger amount of expansion than it proposes. BAA’s formal submission to the White Paper consultation had suggested, for example, that land should be safeguarded for new runways at both Glasgow and Edinburgh to allow the opportunity for both airports to grow to their full potential. It argued that the cost of protecting land at both airports would be significantly less than the environmental and other costs if only one airport were safeguarded and demand for a new runway materialised elsewhere. BAA also quoted figures from Oxford Economic Forecasting to the effect that if aviation growth were restricted to lower levels then UK GDP could be up to £4 billion a year lower by 2015 than it might have been otherwise. However, the Environment Agency stressed that it would require to be consulted on all aspects of any expansion and Friends of the Earth accused the government of abdicating its environmental responsibilities. BAA and the environment: sustainable development BAA is committed to a policy of ‘responsible growth’ based on a policy of sustainable development which aims to achieve economic and social benefits while minimising environmental effects. It involves setting medium and long-term objectives for the five key environmental issues — climate change, air quality, surface transport, noise and waste. BAA has developed a management framework for sustainable development, which includes audits of its operations based on international environmental standards. Appendix 7 gives further details of these. In 2003 BAA was first in this sector in the Dow Jones Sustainability Index and scored 89.55% in the first Business in the Community Corporate Responsibility Index, one of the highest scores across all sectors. Working with stakeholders BAA has recognised that its expansion plans depend on working successfully with all its stakeholders. Traditionally, gaining planning approval, in particular, has been a confrontational process and most plans encounter some opposition, usually from local residents and environmental groups. To address these issues, BAA has tried to develop what it describes as a ‘positive, consultative approach’. Appendix 8 gives some details and examples of how the company has attempted to achieve this. Heathrow Terminal 5: A BAA case study In late 2001, after a four year public inquiry, the government announced that it would approve BAA’s planning application, originally submitted in 1993, to build a new terminal at Heathrow. Demand for air travel in South East England is expected to double over the next 20 years and the existing four terminals cannot cope with this increase. In addition, a failure to expand could jeopardise Heathrow’s current importance: · it is the UK’s principal gateway for tourists — the UK tourist industry is worth £60 billion a year · one third of Heathrow’s traffic is connecting passengers who contribute £1 billion to the UK economy · 60,000 people currently work at Heathrow and a further 245,000 jobs across the UK depend on it. It gen