OTHM LEVEL 5 DIPLOMA IN BUSINESS MANAGEMENT | SPECIFICATION

OTHM LEVEL 5 DIPLOMA IN

BUSINESS MANAGEMENT
Qualification Number: 610/1527/1
Specification | June 2024

SPECIFICATION | JUNE 2024 WWW.OTHM.ORG.UK 1

 OTHM LEVEL 5 DIPLOMA IN BUSINESS MANAGEMENT | SPECIFICATION

TABLE OF CONTENTS
QUALIFICATION OBJECTIVES 3
QUALITY, STANDARDS AND RECOGNITIONS 3
REGULATORY INFORMATION 3
EQUIVALENCES 4
QUALIFICATION STRUCTURE 4
DEFINITIONS 4
ENTRY REQUIREMENTS 5
PROGRESSION 5
DELIVERY OF OTHM QUALIFICATIONS 5
ASSESSMENT AND VERIFICATION 5
RECOGNITION OF PRIOR LEARNING AND ACHIEVEMENT 7
EQUALITY AND DIVERSITY 8
LEVEL 5 UNIT SPECIFICATIONS 9
PRINCIPLES AND CONCEPTS OF STRATEGY 10
THE MANAGEMENT OF HUMAN RESOURCES 13
MARKETING FOR MANAGERS 16
BUSINESS LAW FOR MANAGERS 19
MANAGEMENT ACCOUNTING AND DECISION MAKING 22
BUSINESS START-UP: CONCEPTION TO MARKET 25
IMPORTANT NOTE 28

SPECIFICATION | JUNE 2024 WWW.OTHM.ORG.UK 2

 OTHM LEVEL 5 DIPLOMA IN BUSINESS MANAGEMENT | SPECIFICATION

QUALIFICATION OBJECTIVES

The objective of the OTHM Level 5 Diploma in Business Management qualification is to

provide learners with an excellent foundation for a career in a range of organisations. It is
designed to ensure that each learner is ‘business ready’: a confident, independent thinker
with a detailed knowledge of business and management and equipped with the skills to
adapt rapidly to change.

The content of the qualification is focused on human resource management, marketing,

management accounting, business law, and business principles and strategy. Learners will
also integrate their knowledge and skills from these disciplines and gain knowledge about
how to start a business and produce a viable business plan.

The qualification is ideal for those who have started, or are planning to move into, a career in
private or public sector business. Successful completion of the Level 5 Diploma in Business
Management qualification will provide learners with the opportunity to progress to further
study or employment.

QUALITY, STANDARDS AND RECOGNITIONS

OTHM Qualifications are approved and regulated by Ofqual (Office of Qualifications and
Examinations Regulation). Visit the Register of Regulated Qualifications.

OTHM has progression arrangements with several UK universities that acknowledges the
ability of learners after studying Level 3-7 qualifications to be considered for advanced entry
into corresponding degree year/top up and Master’s/top-up programmes.

REGULATORY INFORMATION

Qualification Title OTHM Level 5 Diploma in Business Management

Ofqual Reference Number 610/1527/1
Regulation Start Date 21/09/2022
Operational Start Date 21/09/2022
Duration 1 Year
Total Credit Value 120 Credits
Total Qualification Time (TQT) 1200 Hours
Guided Learning Hours (GLH) 600 Hours
Sector Subject Area (SSA) 15.3 Business Management
Overall Grading Type Pass / Fail
Assessment Methods Coursework
Language of Assessment English

SPECIFICATION | JUNE 2024 WWW.OTHM.ORG.UK 3

 OTHM LEVEL 5 DIPLOMA IN BUSINESS MANAGEMENT | SPECIFICATION

EQUIVALENCES

OTHM Level 5 Diploma qualifications represent practical knowledge, skills, capabilities and
competences that are assessed in academic terms as being equivalent to Higher National
Diplomas (HND) and Year 2 of a three-year UK Bachelor's degree programme.

QUALIFICATION STRUCTURE

The OTHM Level 5 Diploma in Business Management qualification consists of 6 mandatory

units, 120 credits, 1200 hours Total Qualification Time (TQT) and the recommended Guided
Learning Hours (GLH) for this qualification is a minimum of 600 hours.

All units are mandatory.

Unit Ref. No. Unit title Level Credit GLH TQT

F/650/1150 Principles and Concepts of Strategy 5 20 100 200
H/650/1151 The Management of Human Resources 5 20 100 200
J/650/1152 Marketing for Managers 5 20 100 200
K/650/1153 Business Law for Managers 5 20 100 200
L/650/1154 Management Accounting and Decision
5 20 100 200
Making
M/650/1155 Business Start-up; Conception to Market 5 20 100 200

DEFINITIONS

Total Qualification Time (TQT) is the number of notional hours which represents an
estimate of the total amount of time that could reasonably be expected to be required in
order for a learner to achieve and demonstrate the achievement of the level of attainment
necessary for the award of a qualification.

Total Qualification Time is comprised of the following two elements –

a) the number of hours which an awarding organisation has assigned to a qualification
for Guided Learning, and
b) an estimate of the number of hours a Learner will reasonably be likely to spend in
preparation, study or any other form of participation in education or training, including
assessment, which takes place as directed by – but, unlike Guided Learning, not
under the Immediate Guidance or Supervision of – a lecturer, supervisor, tutor or
other appropriate provider of education or training.
(Ofqual 15/5775 September 2015)

Guided Learning Hours (GLH) are defined as the hours that a teacher, lecturer or other
member of staff is available to provide immediate teaching support or supervision to a
learner working towards a qualification.

Credit value is defined as being the number of credits that may be awarded to a learner for
the successful achievement of the learning outcomes of a unit. One credit is equal to 10
hours of TQT.

SPECIFICATION | JUNE 2024 WWW.OTHM.ORG.UK 4

 OTHM LEVEL 5 DIPLOMA IN BUSINESS MANAGEMENT | SPECIFICATION

ENTRY REQUIREMENTS

These qualifications are designed for learners who are typically aged 18 and above.
The entry profile for learners is likely to include at least one of the following:
● Relevant Level 4 Diploma qualification or equivalent qualification

● GCE Advanced level in 3 subjects or equivalent qualification

● Mature learners (over 21) with relevant management experience (learners must
check with the delivery centre regarding this experience prior to registering for the
programme)

English requirements: If a learner is not from a majority English-speaking country, they

must provide evidence of English language competency. For more information visit the
English Language Expectations page on the OTHM website.

PROGRESSION

Successful completion of the OTHM Level 5 Diploma in Business Management provides

learners the opportunity for a wide range of academic progressions including the OTHM
Level 6 Diploma in Business Management qualification.

As this qualification is approved and regulated by Ofqual (Office of the Qualifications and
Examinations Regulation), learners are eligible to gain direct entry into Year 3 of a three-
year UK Bachelor’s degree programme. For more information visit the University
Progressions page on the OTHM website.

DELIVERY OF OTHM QUALIFICATIONS

OTHM do not specify the mode of delivery for its qualifications, therefore OTHM centres are
free to deliver this qualification using any mode of delivery that meets the needs of their
learners. However, OTHM centres should consider the learners’ complete learning
experience when designing the delivery of programmes.

It is important that centres develop an effective delivery method to teaching and learning that
supports the progression and stretch of learners.

OTHM Centres must ensure that the chosen mode of delivery does not unlawfully or unfairly
discriminate, whether directly or indirectly, and that equality of opportunity is promoted.
Where it is reasonable and practicable to do so, it will take steps to address identified
inequalities or barriers that may arise.

Guided Learning Hours (GLH) which are listed in each unit gives centres the number of
hours of teacher-supervised or direct study time likely to be required to teach that unit.

ASSESSMENT AND VERIFICATION

All units within this qualification are assessed and internally quality assured by the centre
and
externally verified by OTHM. The qualifications are criterion referenced, based on the
achievement of all the specified learning outcomes.

SPECIFICATION | JUNE 2024 WWW.OTHM.ORG.UK 5

 OTHM LEVEL 5 DIPLOMA IN BUSINESS MANAGEMENT | SPECIFICATION

To achieve a ‘pass’ for a unit, learners must provide evidence to demonstrate that they have
fulfilled all the learning outcomes and meet the standards specified by all assessment
criteria. Judgement that the learners have successfully fulfilled the assessment criteria is
made by the assessor.

Specific assessment guidance and relevant marking criteria for each unit are made available
in the Assignment Brief document. These are made available to centres immediately after
registration of one or more learners.

The assessor should provide an audit trail showing how the judgement of the learners’
overall achievement has been arrived at.

Assessment Tracking and Recording Learner Progress

It is necessary to track and record learner achievement throughout the delivery period of the
OTHM Level 5 Diploma and this should not be left until the end of the course.

This will include regular review of learner work through formative and summative
assessment and internal quality assurance at planned intervals during the programme:
● before decisions have been made on any unit

● sampling evidence once one or two of the units or assignments are completed

Tracking learner progress, recording the achievement of each learner per criteria on a unit-
by-unit basis ensures:
● the assessment evidence is clearly measured against national standards

● learner progress is accurately tracked

● the assessment process can be reliably verified

● evidence is valid, authentic and reliable for the safety of certification

● identification of which assessments are outstanding

● internal verification is timely

● samples for standards verification and other external audits can be made available
as required
● up to date, securely stored assessment records help to minimise the risk of
assessment malpractice and potential issues; maintaining the integrity of the
qualification.

Tutors/Assessors should provide learners with formative and summative feedback to aid
development during their studies.

Formative Assessment

Formative assessment is an integral part of the assessment process, involving both the
Tutor/Assessor and the learner about their progress during the course of study.
Formative assessment takes place prior to summative assessment and focuses on helping
the learner to reflect on their learning and improve their performance and does not confirm
achievement of grades at this stage.

SPECIFICATION | JUNE 2024 WWW.OTHM.ORG.UK 6

 OTHM LEVEL 5 DIPLOMA IN BUSINESS MANAGEMENT | SPECIFICATION

The main function of formative assessment is to provide feedback to enable the learner to
make improvements to their work. This feedback should be prompt so it has meaning and
context for the learner and time must be given following the feedback for actions to be
complete. Feedback on formative assessment must be constructive and provide clear
guidance and actions for improvement.

All records should be available for auditing purposes, as we may choose to check records of
formative assessment as part of our ongoing quality assurance.

Summative Assessment

Summative assessment is used to evaluate learner competence and progression at the end
of a unit or component. Summative assessment should take place when the assessor
deems that the learner is at a stage where competence can be demonstrated.

Learners should be made aware that summative assessment outcomes are subject to
confirmation by the Internal Verifier and External Quality Assurer (EQA) and thus is
provisional and can be overridden. Assessors should annotate on the learner work where
the evidence supports their decisions against the assessment criteria. Learners will need to
be familiar with the assessment and grading criteria so that they can understand the quality
of what is required.

Evidence of both formative and summative assessment MUST be made available at the time
of external quality assurance – EQA.

RECOGNITION OF PRIOR LEARNING AND ACHIEVEMENT

Recognition of Prior Learning (RPL) is a method of assessment that considers whether
learners can demonstrate that they can meet the assessment requirements for a unit
through knowledge, understanding or skills they already possess and do not need to develop
through a course of learning.

RPL policies and procedures have been developed over time, which has led to the use of a
number of terms to describe the process. Among the most common are:

● Accreditation of Prior Learning (APL)

● Accreditation of Prior Experiential Learning (APEL)

● Accreditation of Prior Achievement (APA)

● Accreditation of Prior Learning and Achievement (APLA)

All evidence must be evaluated with reference to the stipulated learning outcomes and
assessment criteria against the respective unit(s). The assessor must be satisfied that the
evidence produced by the learner meets the assessment standard established by the
learning outcome and its related assessment criteria at that particular level.

Most often RPL will be used for units. It is not acceptable to claim for an entire qualification
through RPL. Where evidence is assessed to be only sufficient to cover one or more
learning outcomes, or to partly meet the need of a learning outcome, then additional
assessment methods should be used to generate sufficient evidence to be able to award the

SPECIFICATION | JUNE 2024 WWW.OTHM.ORG.UK 7

 OTHM LEVEL 5 DIPLOMA IN BUSINESS MANAGEMENT | SPECIFICATION

learning outcome(s) for the whole unit. This may include a combination of units where
applicable.

SPECIFICATION | JUNE 2024 WWW.OTHM.ORG.UK 8

 OTHM LEVEL 5 DIPLOMA IN BUSINESS MANAGEMENT | SPECIFICATION

EQUALITY AND DIVERSITY

OTHM provides equality and diversity training to staff and consultants. This makes clear that
staff and consultants must comply with the requirements of the Equality Act 2010, and all
other related equality and diversity legislation, in relation to our qualifications.

We develop and revise our qualifications to avoid, where possible, any feature that might
disadvantage learners because of their age, disability, gender, pregnancy or maternity, race,
religion or belief, and sexual orientation.

If a specific qualification requires a feature that might disadvantage a particular group (e.g. a
legal requirement regarding health and safety in the workplace), we will clarify this explicitly
in the qualification specification.

SPECIFICATION | JUNE 2024 WWW.OTHM.ORG.UK 9

 OTHM LEVEL 5 DIPLOMA IN BUSINESS MANAGEMENT | SPECIFICATION

LEVEL 5 UNIT SPECIFICATIONS

SPECIFICATION | JUNE 2024 WWW.OTHM.ORG.UK 10

 OTHM LEVEL 5 DIPLOMA IN BUSINESS MANAGEMENT | SPECIFICATION

PRINCIPLES AND CONCEPTS OF STRATEGY

Unit Reference Number F/650/1150

Unit Title Principles and Concepts of Strategy
Unit Level 5
Number of Credits 20
Total Qualification Time (TQT) 200 hours
Guided Learning Hours (GLH) 100 hours
Mandatory / Optional Mandatory
Sector Subject Area (SSA) 15.3 Business Management
Unit Grading Type Pass / Fail

Unit Aims
The Principles and Concepts of Strategy module explores the fundamental elements that guide strategic decision-making in organisations. It
covers the analysis of internal and external environments, competitive positioning, and strategic resources and capabilities. Key frameworks
such as SWOT, PESTEL, and Porter's Five Forces are examined to understand how they influence strategic choices. This unit also delves into
the development and implementation of business strategies, emphasising the importance of alignment with organisational goals and the
dynamic nature of the strategic landscape.

Learning Outcomes, Assessment Criteria and Indicative Content

Learning Outcome – Assessment Criteria – Indicative Content
The learner will: The learner can:
1. Understand the principles of 1.1 Explain what is meant by the term ‘business
● Business Strategy:
business strategy. strategy.’
1.2 Compare different levels of business strategy. o Operational strategy
1.3 Compare elements of a strategic framework. o Tactical strategy
1.4 Explain strategy development processes. o Corporate strategy
● Elements:
o Vision
o Mission

SPECIFICATION | JUNE 2024 WWW.OTHM.ORG.UK 11

 OTHM LEVEL 5 DIPLOMA IN BUSINESS MANAGEMENT | SPECIFICATION

o Objectives
o Strategy
● Approach

● Tactics

● Deliberate strategies

● Emergent strategies

● Process and stages of strategy development

2. Understand key business 2.1 Differentiate between different types of
● Types
strategy theories and concepts. business strategies.
2.2 Compare the elements of a strategic o Growth strategies
management process. o Diversification strategies
2.3 Discuss key organisational theories which o Cost leadership strategies
impact business strategy. o Hybrid strategies
● Strategic Management:
o Planning – execution and monitoring –
review and adjust
o Scientific management
o Bureaucratic management
o Human relations
o Systems management
● Scientific Management by Frederick Taylor,
Bureaucratic Management by Max Weber,
Administrative Management by Henri Fayol, the
Hawthorne Studies by Elton Mayo, Theory X
and Theory Y by Douglas McGregor,
Contingency Theory by Fred Fiedler,
Situational Leadership by Paul Hersey and Ken
Blanchard, General Systems Theory by Ludwig
von Bertalanffy

SPECIFICATION | JUNE 2024 WWW.OTHM.ORG.UK 12

 OTHM LEVEL 5 DIPLOMA IN BUSINESS MANAGEMENT | SPECIFICATION

3. Be able to measure a 3.1 Explain different techniques used to measure

● Internal vs external environment
business’s micro and macro a business’s micro environment.
environment. 3.2 Apply techniques to measure a business’s ● Micro (internal and industry) vs Macro
micro environment.
environment (broader external)
3.3 Explain different techniques used to measure
a business’s macro environment. ● Internal environment
3.4 Apply techniques to measure a business’s
macro environment. ● Value chain analysis

● VRIO: Competitor analysis

● Porter’s 5 Forces analysis:

● Sector/industry analysis

● External/Macro environment swot

● PESTLE: political, economic, social,

technological, environmental, legal.
● Scenario analysis

● SWOT: Strengths, Weaknesses, Opportunities,

and Threats
4. Understand a business’s 4.1 Explain what is meant by the term ‘strategic
● Ansoff matrix
strategic options. option.’
4.2 Compare different strategic options available ● Porter’s Generic strategies
to a business.
4.3 Recommend and justify a relevant strategic ● Vertical/horizontal integration
option which a business could implement.
● Internationalisation

● Merger/acquisition /Joint ventures

Assessment

SPECIFICATION | JUNE 2024 WWW.OTHM.ORG.UK 13

 OTHM LEVEL 5 DIPLOMA IN BUSINESS MANAGEMENT | SPECIFICATION

To achieve a ‘pass’ for this unit, learners must provide evidence to demonstrate that they have fulfilled all the learning outcomes and meet the
standards specified by all assessment criteria.

Learning Outcomes to be met Assessment Criteria to be covered Assessment type Word count (approx. length)
All 1 to 4 All ACs under LO 1 to 4 Coursework 3000 words

Indicative Reading List

Johnson, G. et al (2019) Exploring Strategy 12th edition, Pearson, Harlow

Whittington, R. et al (2020) Fundamentals of Strategy 10th edition, Pearson, Harlow

Additional Resources
Business Strategy and the Environment

Journal of Business Strategy

Management Help

SPECIFICATION | JUNE 2024 WWW.OTHM.ORG.UK 14

 OTHM LEVEL 5 DIPLOMA IN BUSINESS MANAGEMENT | SPECIFICATION

THE MANAGEMENT OF HUMAN RESOURCES

Unit Reference Number H/650/1151

Unit Title The Management of Human Resources
Unit Level 5
Number of Credits 20
Total Qualification Time (TQT) 200 hours
Guided Learning Hours (GLH) 100 hours
Mandatory / Optional Mandatory
Sector Subject Area (SSA) 15.3 Business Management
Unit Grading Type Pass / Fail

Unit Aims
The ability to attract, develop and retain talented employees is a key factor in a business’s success. Human resource management has its
focus on supporting and enhancing business success and performance through its strategic vision and operational functions. The aim of this
unit is to introduce learners to the key human resource management principles and concepts so they can support a sustainable approach to
people management through an understanding of the purpose and scope of the human resource management function.

Learning Outcomes, Assessment Criteria and Indicative Content

Learning Outcome – Assessment Criterion – Indicative Content
The learner will: The learner can:
1. Understand the purpose and 1.1 Explain how human resource management
● Concept of human resource management
objectives of human resource has evolved.
management. 1.2 Discuss the purpose of human resource ● Welfare office – labour manager – personnel
management.
management – HRM
1.3 Explain the objectives of human resource
management. ● Staffing

● Employee compensation

● Discipline

SPECIFICATION | JUNE 2024 WWW.OTHM.ORG.UK 15

 OTHM LEVEL 5 DIPLOMA IN BUSINESS MANAGEMENT | SPECIFICATION

● People – process - performance

● Workforce planning

● Talent management

● Employee engagement

● Performance management
2. Understand the functions of 2.1 Explain key operational functions of human
● Recruitment and selection
human resource management. resource management.
2.2 Explain key strategic functions of human ● Training and development
resource management.
2.3 Assess the relationship between business ● Employee welfare
strategy and human resource management.
● Employment law compliance

● Strategy integration

● Strategic HR planning

● Human capital development

● Forecasting
3. Understand how internal and 3.1 Compare the internal factors which affect
● Internal factors:
external factors impact the human resource management.
3.2 Compare the external factors which affect o Resources and capabilities
human resource management
function. human resource management. o Leadership
o Learning and development
o Motivation
o Business and functional strategies
o Organisational culture
o Equality and diversity
● External factors:
o Competition and PESTEL forces

SPECIFICATION | JUNE 2024 WWW.OTHM.ORG.UK 16

 OTHM LEVEL 5 DIPLOMA IN BUSINESS MANAGEMENT | SPECIFICATION

o Skills trends
o Competitor behaviour
o HR availability
o HR costs
o Legislation
4. Understand modern 4.1 Discuss the impact of technological
● Impact of Technology
development in human advancements, such as artificial intelligence
and automation, on HRM functions. o Streamlined recruitment processes
resource management function
in a business. 4.2 Discuss the effectiveness of initiatives such o Automated screening and candidate
as flexible working arrangements, mental matching
health programs, and diversity training. o Enhanced employee performance
tracking
o AI-driven analytics for management
o Improved employee engagement
o Communication via AI-powered chatbots
o Virtual assistants for assistance
o Efficient training and development
programs
o Personalized learning platforms
o Automated administrative tasks
o Reduction of HR workload
o Increased efficiency
o Advanced data analytics
o Better decision-making
o Strategic planning support
● Flexible working arrangements:
o Promote work-life balance
o Allow for personalized schedules
o Increase employee autonomy
● Mental health programs:
o Provide support for employees' mental
well-being

SPECIFICATION | JUNE 2024 WWW.OTHM.ORG.UK 17

 OTHM LEVEL 5 DIPLOMA IN BUSINESS MANAGEMENT | SPECIFICATION

o Offer resources for stress management

and coping strategies
o Reduce absenteeism and improve overall
productivity
● Diversity training:
o Increase awareness of biases and
stereotypes
o Foster inclusive workplace culture
o Enhance understanding of diverse
perspectives

Assessment
To achieve a ‘pass’ for this unit, learners must provide evidence to demonstrate that they have fulfilled all the learning outcomes and meet the
standards specified by all assessment criteria.

Learning Outcomes to be met Assessment Criteria to be covered Assessment type Word count (approx. length)
All 1 to 4 All ACs under LO 1 to 4 Coursework 3000 words

Indicative Reading List

Hall, L. et al (2020) Human Resource Management 11th edition, Pearson, Harlow

Marchington, M. (2020) Human Resource Management at Work: The Definitive Guide 7th Edition, CIPD, London

Additional Resources
Human Resource Management Journal

International Journal of Human Resource Management

SPECIFICATION | JUNE 2024 WWW.OTHM.ORG.UK 18

 OTHM LEVEL 5 DIPLOMA IN BUSINESS MANAGEMENT | SPECIFICATION

Chartered Institute of Personnel and Development

SPECIFICATION | JUNE 2024 WWW.OTHM.ORG.UK 19

 OTHM LEVEL 5 DIPLOMA IN BUSINESS MANAGEMENT | SPECIFICATION

MARKETING FOR MANAGERS

Unit Reference Number J/650/1152

Unit Title Marketing for Managers
Unit Level 5
Number of Credits 20
Total Qualification Time (TQT) 200 hours
Guided Learning Hours (GLH) 100 hours
Mandatory / Optional Mandatory
Sector Subject Area (SSA) 15.3 Business Management
Unit Grading Type Pass / Fail

Unit Aims

The aim of this unit is to provide learners with a detailed understanding of the marketing planning process and to apply these principles to a
variety of business contexts. The unit also provides a comprehensive understanding of environmental analysis and how this can lead to the
development of appropriate objectives and strategies to enhance operational marketing performance.

Learning Outcomes, Assessment Criteria and Indicative Content

Learning Outcome – Assessment Criterion – Indicative Content
The learner will: The learner can:
1. Understand the context and 1.1 Explain what is meant by the term
● Marketing eras
concept of marketing. ‘marketing.’
1.2 Explain different marketing eras. o Simple trade era
1.3 Compare ways in which a business can o Production era
determine its marketplace. o Sales era
1.4 Discuss the concept of buyer behaviour in o Marketing era
consumer and business markets. o Relationship and social marketing era
● Segmentation

● Competitor analysis

SPECIFICATION | JUNE 2024 WWW.OTHM.ORG.UK 20

 OTHM LEVEL 5 DIPLOMA IN BUSINESS MANAGEMENT | SPECIFICATION

● 4 P’s of marketing: price, product, promotion, and

place
● Market positioning

● Individuals/households

● Personal use purchases

● End use purchases

● Economies of scale

● Strategic suppliers
2. Understand the functions of 2.1 Explain key operational functions of
● Advertising
marketing. marketing.
2.2 Explain key strategic functions of marketing. ● Public relations
2.3 Discuss the relationship between business
strategy and marketing. ● Market research

● Campaign planning

● Customer service

● Customer acquisition

● Customer retention

● Establishing distribution channels

● Product development
3. Understand how internal and 3.1 Compare the internal factors which affect
● Internal factors:
external factors impact the marketing.
marketing function. 3.2 Compare the external factors which affect o Production capacity
marketing. o Financial resources
o Capabilities and competences
o Stakeholder goals

SPECIFICATION | JUNE 2024 WWW.OTHM.ORG.UK 21

 OTHM LEVEL 5 DIPLOMA IN BUSINESS MANAGEMENT | SPECIFICATION

o Current business strategy

● External factors:
o Competitor behaviour
o Legislation
o Economic conditions
o Technological advancements
● Social and demographic trends
4. Understand how a business 4.1 Discuss techniques to measure the
● Conversion rates
uses its marketing function. effectiveness of a business’s marketing
function. ● Website Traffic
4.2 Suggest ways in which a business could
improve the effectiveness of its marketing ● Customer life-cycle
function.
● Average customer value

● Customer acquisition costs

● Customer retention costs

● Level of customer loyalty

Assessment
To achieve a ‘pass’ for this unit, learners must provide evidence to demonstrate that they have fulfilled all the learning outcomes and meet the
standards specified by all assessment criteria.

Learning Outcomes to be met Assessment Criteria to be covered Assessment type Word count (approx. length)
All LO 1 to 3 All ACs under LO 1 to 3 Coursework 2250 words
LO4 AC4.1, 4.2 Presentation 10-minute presentation (850
words equivalent)

Indicative Reading List

Baines, P. et al (2019) Marketing 5th edition, OUP, Oxford

SPECIFICATION | JUNE 2024 WWW.OTHM.ORG.UK 22

 OTHM LEVEL 5 DIPLOMA IN BUSINESS MANAGEMENT | SPECIFICATION

Kotter, P. T. et al (2019) Principles of Marketing 8th European edition, Pearson, Harlow

Additional Resources
European Journal of Marketing

Journal of Marketing

Chartered Institute of Marketing

SPECIFICATION | JUNE 2024 WWW.OTHM.ORG.UK 23

 OTHM LEVEL 5 DIPLOMA IN BUSINESS MANAGEMENT | SPECIFICATION

BUSINESS LAW FOR MANAGERS

Unit Reference Number K/650/1153

Unit Title Business Law for Managers
Unit Level 5
Number of Credits 20
Total Qualification Time (TQT) 200 hours
Guided Learning Hours (GLH) 100 hours
Mandatory / Optional Mandatory
Sector Subject Area (SSA) 15.3 Business Management
Unit Grading Type Pass / Fail

Unit Aims
All businesses and those employed by it must operate within the laws, legislation and regulations of the countries in which it conducts its
activities.
Some law only applies to specific types of business and their legal structure whereas other laws apply to any business irrespective of their
operations and location. The aim of this unit is, therefore, to support a learner’s exploration of laws, legislation and regulations which apply in
their home country and to different types of business.

Learning Outcomes, Assessment Criteria and Indicative Content

Learning Outcome – Assessment Criterion – Indicative Content
The learner will: The learner can:
1. Understand generic business 1.1 Explain why it is important to have business
● Protect rights
law. related laws.
1.2 Explain the principles of business law. ● Dispute resolution
1.3 Differentiate between civil and criminal law.
● Consumer protection

● Principles:
o Company law

SPECIFICATION | JUNE 2024 WWW.OTHM.ORG.UK 24

 OTHM LEVEL 5 DIPLOMA IN BUSINESS MANAGEMENT | SPECIFICATION

o Common law
o Civil law
o Criminal law
o Statutory law
● Criminal law seeks to punish for an offence.

● Civil law seeks to achieve a remedy such as

compensation for the injured party.
2. Understand legal and justice 2.1 Explain what is meant by the term ‘legal
● System for interpreting and enforcing the laws:
systems within a business system.’
context. 2.2 Describe a legal system. o Legislation
2.3 Explain what is meant by the term ‘justice o Directives
system.’ o Case law
2.4 Describe a justice system. o Treaties
● Court structures

● Role of government

● Role of government agencies

● Law enforcement

● Courts

● Correction
3. Understand key business- 3.1 Describe key features of consumer law.
● Consumer Law: false advertising, health and
related laws. 3.2 Describe key features of contract law.
3.3 Describe key features of law of tort. safety, fit for purpose, satisfactory quality
3.4 Describe key features of international laws. ● Contact Law: offer, acceptance, consideration,
intent
● Law of Tort: possession of rights, violation of
rights, injury

SPECIFICATION | JUNE 2024 WWW.OTHM.ORG.UK 25

 OTHM LEVEL 5 DIPLOMA IN BUSINESS MANAGEMENT | SPECIFICATION

● International economic, security and criminal law

4. Understand how laws impact 4.1 Explain how businesses are legally formed.
● Self-employed/individual registration
on businesses. 4.2 Describe the impact of key legislation on a
business. ● Incorporation
4.3 Explain why contractual obligations are
important to a business. ● Data protection
4.4 Explain how a business could resolve
different legal disputes. ● Health and safety

● Consumer laws

● Employment laws

● Duty to fulfil a contract

● Protect both parties

● Legally binding

● Mediation

● Arbitration

● Litigation

Assessment
To achieve a ‘pass’ for this unit, learners must provide evidence to demonstrate that they have fulfilled all the learning outcomes and meet the
standards specified by all assessment criteria.

Learning Outcomes to be met Assessment Criteria to be covered Assessment type Word count (approx. length)
All 1 to 4 All ACs under LO 1 to 4 Coursework 3000 words

Indicative Reading List

SPECIFICATION | JUNE 2024 WWW.OTHM.ORG.UK 26

 OTHM LEVEL 5 DIPLOMA IN BUSINESS MANAGEMENT | SPECIFICATION

Adams, A. et al (2020) Law for Business Learners 4th edition, Pearson, Harlow

Kelly, D. (2020) Business Law, Routledge, London

Additional Resources
Business Law Review

Journal of Business Law

Chambers Student

SPECIFICATION | JUNE 2024 WWW.OTHM.ORG.UK 27

 OTHM LEVEL 5 DIPLOMA IN BUSINESS MANAGEMENT | SPECIFICATION

MANAGEMENT ACCOUNTING AND DECISION MAKING

Unit Reference Number L/650/1154

Unit Title Management Accounting and Decision Making
Unit Level 5
Number of Credits 20
Total Qualification Time (TQT) 200 hours
Guided Learning Hours (GLH) 100 hours
Mandatory / Optional Mandatory
Sector Subject Area (SSA) 15.3 Business Management
Unit Grading Type Pass / Fail

Unit Aims
Management accounting provides business managers with financial information required to achieve business objectives. This requires effective
decision making based on the timeliness and accuracy of financial information. The aim of this unit is to provide learners with an awareness of
the scope and purpose of management accounting, so they are able to support effective decision making within a business.

Learning Outcomes, Assessment Criteria and Indicative Content

Learning Outcome – Assessment Criterion – Indicative Content
The learner will: The learner can:
1. Understand management 1.1 Explain what is meant by the term
● Management accounting:
accounting and decision ‘management accounting.’
making. 1.2 Explain what is meant by the term ‘decision o Cost management
making.’ o External reporting
1.3 Differentiate between management o Investment appraisal
accounting and financial accounting. o Budgetary control
● Decision making tools

● Decision making process

● Considering alternatives

SPECIFICATION | JUNE 2024 WWW.OTHM.ORG.UK 28

 OTHM LEVEL 5 DIPLOMA IN BUSINESS MANAGEMENT | SPECIFICATION

● Recording transactions

● Producing financial statements

● Preparing financial reports

2. Understand technical 2.1 Describe different management accounting
● Concepts:
procedures used in concepts.
management accounting. 2.2 Describe different tools and techniques used o Financial planning
in management accounting. o Decision making and control
o Business activity evaluation
o Financial risk management
● Tools/Techniques
o Cost accounting
o Financial statement analysis
o Cashflow analysis
o Budgetary control
o Investment analysis
3. Be able to use management 3.1 Apply management accounting techniques to
● Application of tools and techniques:
accounting to solve problems solve business problems.
3.2 Apply management accounting techniques to o Cost accounting
and inform decision-making.
inform business decision making. o Financial statement analysis
o Cashflow analysis
o Budgetary control
o Investment analysis

Assessment
To achieve a ‘pass’ for this unit, learners must provide evidence to demonstrate that they have fulfilled all the learning outcomes and meet the
standards specified by all assessment criteria.

Learning Outcomes to be met Assessment Criteria to be covered Assessment type Word count (approx. length)
All 1 to 3 All ACs under LO 1 to 3 Coursework 3000 words

SPECIFICATION | JUNE 2024 WWW.OTHM.ORG.UK 29

 OTHM LEVEL 5 DIPLOMA IN BUSINESS MANAGEMENT | SPECIFICATION

Indicative Reading List

Atril, P. (2021) Management Accounting for Decision Makers 10th edition, Pearson, Harlow

Drury, D. (2018) Management Accounting for Business 7th edition, Cengage, London

Additional Resources
Journal of Accounting and Economics

The Accounting Review

Management Help

SPECIFICATION | JUNE 2024 WWW.OTHM.ORG.UK 30

 OTHM LEVEL 5 DIPLOMA IN BUSINESS MANAGEMENT | SPECIFICATION

BUSINESS START-UP: CONCEPTION TO MARKET

Unit Reference Number M/650/1155

Unit Title Business Start-up: Conception to Market
Unit Level 5
Number of Credits 20
Total Qualification Time (TQT) 200 hours
Guided Learning Hours (GLH) 100 hours
Mandatory / Optional Mandatory
Sector Subject Area (SSA) 15.3 Business Management
Unit Grading Type Pass / Fail

Unit Aims
Many people dream of setting up their own business but are not aware of what is required, what support is available and what personal
qualities are required. The aim of this unit, therefore, is to consolidate previous learning where learners employ the knowledge and skills of
disciplines such as marketing and management to produce a viable business plan.

Learning Outcomes, Assessment Criteria and Indicative Content

Learning Outcome – Assessment Criterion – Indicative Content

The learner will: The learner can:
1. Understand the fundamental 1.1 Describe the range of resources required to
● Resources required for start-up:
requirements for starting a new start a business.
business. 1.2 Describe the personal skills and qualities o Capital investment
required to start a business. o Labour resources
1.3 Describe the legal requirements when o Physical resources
starting a business. o Support systems
● Personal skills and qualities: leadership
management
● financial management, problem solving skills,

SPECIFICATION | JUNE 2024 WWW.OTHM.ORG.UK 31

 OTHM LEVEL 5 DIPLOMA IN BUSINESS MANAGEMENT | SPECIFICATION

negotiation skills, project management skills

● Legal requirements: formalised business
structure, operating licence, business insurance,
register for taxation
2. Understand sources of support 2.1 Compare sources of financial support.
● Savings
available to new businesses. 2.2 Describe support provided by governments.
2.3 Describe support provided by non- ● Friends and family
government organisations.
2.4 Compare sources of non-financial support. ● Interest bearing loans

● Investment ‘angels’

● Grants

● Zero interest loans

● Employment support schemes

● Free training workshops

● Free business advice

● Free mentoring

● Local government

● Central government

● Banks

● Chambers of Commerce

● Professional bodies

● Community support

SPECIFICATION | JUNE 2024 WWW.OTHM.ORG.UK 32

 OTHM LEVEL 5 DIPLOMA IN BUSINESS MANAGEMENT | SPECIFICATION

3. Be able to create a business 3.1 Produce a business plan for a start-up

● Business Plan:
plan for a new business to gain business.
3.2 Demonstrate effective communication when o Executive Summary
stakeholder support.
seeking stakeholder support for a new o Industry Overview
business. o Market and Competition Analysis
o Sales and Marketing Plan
o Management Plan
o Operating Plan
o Financial Plan

SPECIFICATION | JUNE 2024 WWW.OTHM.ORG.UK 33

 OTHM LEVEL 5 DIPLOMA IN BUSINESS MANAGEMENT | SPECIFICATION

Assessment
To achieve a ‘pass’ for this unit, learners must provide evidence to demonstrate that they have fulfilled all the learning outcomes and meet the
standards specified by all assessment criteria.

Learning Outcomes to be met Assessment Criteria to be covered Assessment type Word count (approx. length)
All LO 1 to 2 All ACs under LO 1 to 2 Coursework 2500 words
LO3 (part) AC3.1
LO3 (part) AC3.2 Presentation 10-minute presentation (850
words equivalent)

Indicative Reading List

Barrow, C. (2016) Starting and Running a Small Business All-in-one for Dummies 3rd edition, John Wiley, London

Pink, A. and MacDonald, A. (2021) Business Start Start-Up Guide, Pink Proactive Publishing, UK

Flick, U. (2020) Introducing Research Methodology: A Beginner’s Guide to Doing a Research Project. 3rd Ed. London: Sage.

Gray, D. (2017) Doing Research in The Real World. 4th Ed. London: Sage.

Saunders, M., Lewis, P. And Thornhill, A. (2019) Research Methods for Business Students. 6th Ed. Harlow: Pearson.

Additional Resources
The Journal of Entrepreneurship

Management Help

Write a Business Plan

SPECIFICATION | JUNE 2024 WWW.OTHM.ORG.UK 34

 OTHM LEVEL 5 DIPLOMA IN BUSINESS MANAGEMENT | SPECIFICATION

IMPORTANT NOTE
Whilst we make every effort to keep the information contained in programme specification up
to date, some changes to procedures, regulations, fees matter, timetables, etc may occur
during the course of your studies. You should, therefore, recognise that this booklet serves
only as a useful guide to your learning experience.

For updated information please visit our website www.othm.org.uk.

SPECIFICATION | JUNE 2024 WWW.OTHM.ORG.UK 35