Syllabus: Cambridge - International AS & A Level Business
Module: 1.3 Size of Business
Lesson: 1.3.1 Measurements of Business Size

Introduction

This section aligns directly with the Cambridge International AS & A Level Business syllabus topic 1.3.1 Measurements of business size. It introduces how business size is assessed using measures such as number of employees, capital employed, sales turnover and market share. Understanding these measurements helps students compare firms, evaluate growth strategies and link to strategic decision making. This clarity supports teacher planning and ensures learners grasp both theory and application in real contexts.

Key Concepts

• Number of employees – often used for comparing scale across sectors or regions.

• Capital employed – includes assets, equity and long-term liabilities to show the investment in the business.

• Sales turnover – total revenue over a period; useful to compare trading performance.

• Market share – business’s revenue as a percentage of total industry turnover; indicates competitive position.

• Other measures – for specific purposes, e.g. value of output in manufacturing, or asset turnover ratios in capital-intensive industries.

Real-World Relevance

Use real firms to bring measurement alive. For example:
• A supermarket chain like Tesco might report turnover of £57 billion, showing sheer sales scale.
• A tech start-up may have few employees yet high capital employed or revenue per worker, illustrating productivity.
• In automotive, Jaguar Land Rover’s market share in UK premium car market gives insight into brand positioning.
These examples help learners see that the same measure can illustrate different aspects depending on sector and strategy.

How It’s Assessed

Cambridge exam questions often ask students to:
• Define and explain measurements using command words such as “Define”, “Calculate”, “Compare” or “Evaluate”.
• Calculate and interpret turnover or market share from supplied figures.
• Analyse differences between firms based on employee numbers versus capital employed.
• Use extension data to assess implications for growth strategy or efficiency.
Ensure students note command words carefully to meet specific assessment demands.

Enterprise Skills Integration

Bringing enterprise skills into this topic:

• Problem-solving – students decide which measurement suits a given scenario.

• Decision-making – they weigh pros and cons; e.g. turnover may hide thin margins.

• Data literacy – interpreting numerical measures and drawing correct conclusions.

• Critical thinking – recognising that one metric alone may mislead; combining several gives fuller insight.

Careers Links

Link to several careers pathways emphasising measurement skills:
• Business analyst / strategy consultant – work with data to guide growth.
• Financial controller or accountant – use capital and revenue data for planning.
• Market researcher – track market share and turnover trends to advise firms.
This links directly to Gatsby Benchmark 4 (linking curriculum learning to careers) by showing how these core business measures feed into real roles.

Teaching Notes

• Tip Use mini case activity: give students mini-profiles of two firms (e.g. fast-food chain vs craft brewery) with employee, revenue and capital data. Ask them to compare and reflect on size and strategy.
• Common pitfall Students may equate more employees with larger or more successful; discuss productivity and capital intensity.
• Extension activity Challenge learners to find recent turnover or market share figures for firms they know – perhaps via annual reports – and bring evidence to class to discuss.
• Support Scaffold questions with data tables before moving to essay questions. Encourage them to interpret numbers not just quote them.