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5
1
E
Eliza Stephenson
08/12/2025
Business
Unit 2 - AQA A Level Business
135
•
8 Dec 2025
•
AQA A Level Business (2024 Spec) - Unit 2 Overview
E
Eliza Stephenson
@elizastephenson_tmee
1 / 8
Managers, Leadership and Decision Making
You're about to dive into one of the most practical areas of business studies. Understanding how managers think and lead will help you grasp why businesses succeed or fail.
This topic covers everything from decision-making techniques to leadership styles, plus how businesses balance the competing demands of different stakeholder groups. It's the kind of stuff that actually matters in the real world of business.
Quick Tip: These concepts appear frequently in exam questions, so getting comfortable with the terminology and processes will boost your confidence significantly.
Unit Overview
This unit focuses on three core areas that every successful business leader needs to master. Decision making forms the foundation - whether you're choosing between two suppliers or deciding on a major investment.
Leadership styles determine how managers interact with their teams, whilst stakeholder management deals with balancing the different groups who have interests in the business. Think customers wanting low prices versus shareholders wanting high profits.
These aren't just theoretical concepts - they're tools that real managers use every day to navigate complex business situations.
Decision Making Formulas
When businesses face risky decisions, they often use mathematical models to work out the best option. The expected value formula helps calculate the likely outcome when there are multiple possibilities.
Expected Value = (Pay off of A × Probability of A) + (Pay off of B × Probability of B)
Once you've got the expected value, subtract the initial cost to find the net gain. This shows whether a decision is actually worth making financially.
Remember: Probability is always expressed as a decimal between 0 and 1, where 1 means absolutely certain and 0 means impossible.
Decision Making Approaches
Managers typically use two main approaches when making decisions. Scientific decision making follows a logical, data-driven process with six clear steps, from defining the problem to monitoring the solution.
Intuitive decision making relies on gut instinct and past experience. It's faster and can spark innovation, but it's harder to justify and depends heavily on the manager's expertise.
Scientific methods provide solid evidence and encourage logical thinking, but they're time-consuming and expensive. Intuitive approaches allow quick decisions but can be difficult to explain to others.
Opportunity cost - the value of what you give up when making a choice - applies to both approaches and is crucial for understanding the true cost of any decision.
Leadership Styles and Management
Different situations call for different leadership styles. Autocratic leaders make decisions without consultation, whilst democratic leaders involve their team but retain final authority.
The Tannenbaum Schmidt Continuum shows leadership as a spectrum from high control to high delegation. It ranges from simply telling staff what to do, through to giving them complete freedom within set limits.
Managers focus on practical tasks like setting objectives and coordinating resources. Leaders provide vision and inspiration, gaining support through personal qualities rather than just authority.
Key Insight: The best approach depends on forces in the manager, subordinates, and the situation itself - there's no one-size-fits-all leadership style.
Decision Trees
Decision trees are visual tools that help businesses make complex decisions involving risk and uncertainty. They use squares for decision points and circles for chance events, with probabilities expressed as decimals.
To calculate the Expected Monetary Value (EMV), multiply each probability by its monetary outcome, then add them together. Subtract the cost of each alternative from the EMV to find the net gain.
Decision trees clearly show options and encourage logical thinking whilst accounting for risk. However, they rely heavily on estimates that might be biased or outdated.
Exam Tip: Always read decision trees from left to right, and remember that all probabilities on each branch must add up to 1.0.
Stakeholders and Mapping
Stakeholders are individuals or groups affected by business decisions. Internal stakeholders include employees and managers, whilst external stakeholders include customers, suppliers, and the government.
Primary stakeholders have direct financial interests in the business, whereas secondary stakeholders are affected but don't have direct financial involvement. Their objectives often conflict - managers wanting higher prices whilst customers want lower ones.
Stakeholder mapping plots groups according to their power and interest levels. This helps managers decide whether to engage closely, keep satisfied, keep informed, or simply monitor each group.
Reality Check: Stakeholder conflicts are inevitable in business - the skill lies in managing these competing demands effectively.
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This app is really great. There are so many study notes and help [...]. My problem subject is French, for example, and the app has so many options for help. Thanks to this app, I have improved my French. I would recommend it to anyone.
Samantha Klich
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Wow, I am really amazed. I just tried the app because I've seen it advertised many times and was absolutely stunned. This app is THE HELP you want for school and above all, it offers so many things, such as workouts and fact sheets, which have been VERY helpful to me personally.
Anna
iOS user
Best app on earth! no words because it’s too good
Thomas R
iOS user
Just amazing. Let's me revise 10x better, this app is a quick 10/10. I highly recommend it to anyone. I can watch and search for notes. I can save them in the subject folder. I can revise it any time when I come back. If you haven't tried this app, you're really missing out.
Basil
Android user
This app has made me feel so much more confident in my exam prep, not only through boosting my own self confidence through the features that allow you to connect with others and feel less alone, but also through the way the app itself is centred around making you feel better. It is easy to navigate, fun to use, and helpful to anyone struggling in absolutely any way.
David K
iOS user
The app's just great! All I have to do is enter the topic in the search bar and I get the response real fast. I don't have to watch 10 YouTube videos to understand something, so I'm saving my time. Highly recommended!
Sudenaz Ocak
Android user
In school I was really bad at maths but thanks to the app, I am doing better now. I am so grateful that you made the app.
Greenlight Bonnie
Android user
very reliable app to help and grow your ideas of Maths, English and other related topics in your works. please use this app if your struggling in areas, this app is key for that. wish I'd of done a review before. and it's also free so don't worry about that.
Rohan U
Android user
I know a lot of apps use fake accounts to boost their reviews but this app deserves it all. Originally I was getting 4 in my English exams and this time I got a grade 7. I didn’t even know about this app three days until the exam and it has helped A LOT. Please actually trust me and use it as I’m sure you too will see developments.
Xander S
iOS user
THE QUIZES AND FLASHCARDS ARE SO USEFUL AND I LOVE THE SCHOOLGPT. IT ALSO IS LITREALLY LIKE CHATGPT BUT SMARTER!! HELPED ME WITH MY MASCARA PROBLEMS TOO!! AS WELL AS MY REAL SUBJECTS ! DUHHH 😍😁😲🤑💗✨🎀😮
Elisha
iOS user
This apps acc the goat. I find revision so boring but this app makes it so easy to organize it all and then you can ask the freeeee ai to test yourself so good and you can easily upload your own stuff. highly recommend as someone taking mocks now
Paul T
iOS user
The app is very easy to use and well designed. I have found everything I was looking for so far and have been able to learn a lot from the presentations! I will definitely use the app for a class assignment! And of course it also helps a lot as an inspiration.
Stefan S
iOS user
This app is really great. There are so many study notes and help [...]. My problem subject is French, for example, and the app has so many options for help. Thanks to this app, I have improved my French. I would recommend it to anyone.
Samantha Klich
Android user
Wow, I am really amazed. I just tried the app because I've seen it advertised many times and was absolutely stunned. This app is THE HELP you want for school and above all, it offers so many things, such as workouts and fact sheets, which have been VERY helpful to me personally.
Anna
iOS user
Best app on earth! no words because it’s too good
Thomas R
iOS user
Just amazing. Let's me revise 10x better, this app is a quick 10/10. I highly recommend it to anyone. I can watch and search for notes. I can save them in the subject folder. I can revise it any time when I come back. If you haven't tried this app, you're really missing out.
Basil
Android user
This app has made me feel so much more confident in my exam prep, not only through boosting my own self confidence through the features that allow you to connect with others and feel less alone, but also through the way the app itself is centred around making you feel better. It is easy to navigate, fun to use, and helpful to anyone struggling in absolutely any way.
David K
iOS user
The app's just great! All I have to do is enter the topic in the search bar and I get the response real fast. I don't have to watch 10 YouTube videos to understand something, so I'm saving my time. Highly recommended!
Sudenaz Ocak
Android user
In school I was really bad at maths but thanks to the app, I am doing better now. I am so grateful that you made the app.
Greenlight Bonnie
Android user
very reliable app to help and grow your ideas of Maths, English and other related topics in your works. please use this app if your struggling in areas, this app is key for that. wish I'd of done a review before. and it's also free so don't worry about that.
Rohan U
Android user
I know a lot of apps use fake accounts to boost their reviews but this app deserves it all. Originally I was getting 4 in my English exams and this time I got a grade 7. I didn’t even know about this app three days until the exam and it has helped A LOT. Please actually trust me and use it as I’m sure you too will see developments.
Xander S
iOS user
THE QUIZES AND FLASHCARDS ARE SO USEFUL AND I LOVE THE SCHOOLGPT. IT ALSO IS LITREALLY LIKE CHATGPT BUT SMARTER!! HELPED ME WITH MY MASCARA PROBLEMS TOO!! AS WELL AS MY REAL SUBJECTS ! DUHHH 😍😁😲🤑💗✨🎀😮
Elisha
iOS user
This apps acc the goat. I find revision so boring but this app makes it so easy to organize it all and then you can ask the freeeee ai to test yourself so good and you can easily upload your own stuff. highly recommend as someone taking mocks now
Paul T
iOS user
AQA A Level Business (2024 Spec) - Unit 2 Overview
E
Eliza Stephenson
@elizastephenson_tmee
Ever wondered how business leaders make tough decisions and manage different groups of people? This unit explores the essential skills of management and leadership, from making data-driven choices to handling conflicts between various stakeholders who all want different things from... Show more
Managers, Leadership and Decision Making
You're about to dive into one of the most practical areas of business studies. Understanding how managers think and lead will help you grasp why businesses succeed or fail.
This topic covers everything from decision-making techniques to leadership styles, plus how businesses balance the competing demands of different stakeholder groups. It's the kind of stuff that actually matters in the real world of business.
Quick Tip: These concepts appear frequently in exam questions, so getting comfortable with the terminology and processes will boost your confidence significantly.
Sign up to see the contentIt's free!
Access to all documents
Improve your grades
Join milions of students
By signing up you accept Terms of Service and Privacy Policy
Unit Overview
This unit focuses on three core areas that every successful business leader needs to master. Decision making forms the foundation - whether you're choosing between two suppliers or deciding on a major investment.
Leadership styles determine how managers interact with their teams, whilst stakeholder management deals with balancing the different groups who have interests in the business. Think customers wanting low prices versus shareholders wanting high profits.
These aren't just theoretical concepts - they're tools that real managers use every day to navigate complex business situations.
Sign up to see the contentIt's free!
Access to all documents
Improve your grades
Join milions of students
By signing up you accept Terms of Service and Privacy Policy
Decision Making Formulas
When businesses face risky decisions, they often use mathematical models to work out the best option. The expected value formula helps calculate the likely outcome when there are multiple possibilities.
Expected Value = (Pay off of A × Probability of A) + (Pay off of B × Probability of B)
Once you've got the expected value, subtract the initial cost to find the net gain. This shows whether a decision is actually worth making financially.
Remember: Probability is always expressed as a decimal between 0 and 1, where 1 means absolutely certain and 0 means impossible.
Sign up to see the contentIt's free!
Access to all documents
Improve your grades
Join milions of students
By signing up you accept Terms of Service and Privacy Policy
Decision Making Approaches
Managers typically use two main approaches when making decisions. Scientific decision making follows a logical, data-driven process with six clear steps, from defining the problem to monitoring the solution.
Intuitive decision making relies on gut instinct and past experience. It's faster and can spark innovation, but it's harder to justify and depends heavily on the manager's expertise.
Scientific methods provide solid evidence and encourage logical thinking, but they're time-consuming and expensive. Intuitive approaches allow quick decisions but can be difficult to explain to others.
Opportunity cost - the value of what you give up when making a choice - applies to both approaches and is crucial for understanding the true cost of any decision.
Sign up to see the contentIt's free!
Access to all documents
Improve your grades
Join milions of students
By signing up you accept Terms of Service and Privacy Policy
Leadership Styles and Management
Different situations call for different leadership styles. Autocratic leaders make decisions without consultation, whilst democratic leaders involve their team but retain final authority.
The Tannenbaum Schmidt Continuum shows leadership as a spectrum from high control to high delegation. It ranges from simply telling staff what to do, through to giving them complete freedom within set limits.
Managers focus on practical tasks like setting objectives and coordinating resources. Leaders provide vision and inspiration, gaining support through personal qualities rather than just authority.
Key Insight: The best approach depends on forces in the manager, subordinates, and the situation itself - there's no one-size-fits-all leadership style.
Sign up to see the contentIt's free!
Access to all documents
Improve your grades
Join milions of students
By signing up you accept Terms of Service and Privacy Policy
Decision Trees
Decision trees are visual tools that help businesses make complex decisions involving risk and uncertainty. They use squares for decision points and circles for chance events, with probabilities expressed as decimals.
To calculate the Expected Monetary Value (EMV), multiply each probability by its monetary outcome, then add them together. Subtract the cost of each alternative from the EMV to find the net gain.
Decision trees clearly show options and encourage logical thinking whilst accounting for risk. However, they rely heavily on estimates that might be biased or outdated.
Exam Tip: Always read decision trees from left to right, and remember that all probabilities on each branch must add up to 1.0.
Sign up to see the contentIt's free!
Access to all documents
Improve your grades
Join milions of students
By signing up you accept Terms of Service and Privacy Policy
Stakeholders and Mapping
Stakeholders are individuals or groups affected by business decisions. Internal stakeholders include employees and managers, whilst external stakeholders include customers, suppliers, and the government.
Primary stakeholders have direct financial interests in the business, whereas secondary stakeholders are affected but don't have direct financial involvement. Their objectives often conflict - managers wanting higher prices whilst customers want lower ones.
Stakeholder mapping plots groups according to their power and interest levels. This helps managers decide whether to engage closely, keep satisfied, keep informed, or simply monitor each group.
Reality Check: Stakeholder conflicts are inevitable in business - the skill lies in managing these competing demands effectively.
Sign up to see the contentIt's free!
Access to all documents
Improve your grades
Join milions of students
By signing up you accept Terms of Service and Privacy Policy
We thought you’d never ask...
What is the Knowunity AI companion?
Our AI Companion is a student-focused AI tool that offers more than just answers. Built on millions of Knowunity resources, it provides relevant information, personalised study plans, quizzes, and content directly in the chat, adapting to your individual learning journey.
Where can I download the Knowunity app?
You can download the app from Google Play Store and Apple App Store.
Is Knowunity really free of charge?
That's right! Enjoy free access to study content, connect with fellow students, and get instant help – all at your fingertips.
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The app is very easy to use and well designed. I have found everything I was looking for so far and have been able to learn a lot from the presentations! I will definitely use the app for a class assignment! And of course it also helps a lot as an inspiration.
Stefan S
iOS user
This app is really great. There are so many study notes and help [...]. My problem subject is French, for example, and the app has so many options for help. Thanks to this app, I have improved my French. I would recommend it to anyone.
Samantha Klich
Android user
Wow, I am really amazed. I just tried the app because I've seen it advertised many times and was absolutely stunned. This app is THE HELP you want for school and above all, it offers so many things, such as workouts and fact sheets, which have been VERY helpful to me personally.
Anna
iOS user
Best app on earth! no words because it’s too good
Thomas R
iOS user
Just amazing. Let's me revise 10x better, this app is a quick 10/10. I highly recommend it to anyone. I can watch and search for notes. I can save them in the subject folder. I can revise it any time when I come back. If you haven't tried this app, you're really missing out.
Basil
Android user
This app has made me feel so much more confident in my exam prep, not only through boosting my own self confidence through the features that allow you to connect with others and feel less alone, but also through the way the app itself is centred around making you feel better. It is easy to navigate, fun to use, and helpful to anyone struggling in absolutely any way.
David K
iOS user
The app's just great! All I have to do is enter the topic in the search bar and I get the response real fast. I don't have to watch 10 YouTube videos to understand something, so I'm saving my time. Highly recommended!
Sudenaz Ocak
Android user
In school I was really bad at maths but thanks to the app, I am doing better now. I am so grateful that you made the app.
Greenlight Bonnie
Android user
very reliable app to help and grow your ideas of Maths, English and other related topics in your works. please use this app if your struggling in areas, this app is key for that. wish I'd of done a review before. and it's also free so don't worry about that.
Rohan U
Android user
I know a lot of apps use fake accounts to boost their reviews but this app deserves it all. Originally I was getting 4 in my English exams and this time I got a grade 7. I didn’t even know about this app three days until the exam and it has helped A LOT. Please actually trust me and use it as I’m sure you too will see developments.
Xander S
iOS user
THE QUIZES AND FLASHCARDS ARE SO USEFUL AND I LOVE THE SCHOOLGPT. IT ALSO IS LITREALLY LIKE CHATGPT BUT SMARTER!! HELPED ME WITH MY MASCARA PROBLEMS TOO!! AS WELL AS MY REAL SUBJECTS ! DUHHH 😍😁😲🤑💗✨🎀😮
Elisha
iOS user
This apps acc the goat. I find revision so boring but this app makes it so easy to organize it all and then you can ask the freeeee ai to test yourself so good and you can easily upload your own stuff. highly recommend as someone taking mocks now
Paul T
iOS user
The app is very easy to use and well designed. I have found everything I was looking for so far and have been able to learn a lot from the presentations! I will definitely use the app for a class assignment! And of course it also helps a lot as an inspiration.
Stefan S
iOS user
This app is really great. There are so many study notes and help [...]. My problem subject is French, for example, and the app has so many options for help. Thanks to this app, I have improved my French. I would recommend it to anyone.
Samantha Klich
Android user
Wow, I am really amazed. I just tried the app because I've seen it advertised many times and was absolutely stunned. This app is THE HELP you want for school and above all, it offers so many things, such as workouts and fact sheets, which have been VERY helpful to me personally.
Anna
iOS user
Best app on earth! no words because it’s too good
Thomas R
iOS user
Just amazing. Let's me revise 10x better, this app is a quick 10/10. I highly recommend it to anyone. I can watch and search for notes. I can save them in the subject folder. I can revise it any time when I come back. If you haven't tried this app, you're really missing out.
Basil
Android user
This app has made me feel so much more confident in my exam prep, not only through boosting my own self confidence through the features that allow you to connect with others and feel less alone, but also through the way the app itself is centred around making you feel better. It is easy to navigate, fun to use, and helpful to anyone struggling in absolutely any way.
David K
iOS user
The app's just great! All I have to do is enter the topic in the search bar and I get the response real fast. I don't have to watch 10 YouTube videos to understand something, so I'm saving my time. Highly recommended!
Sudenaz Ocak
Android user
In school I was really bad at maths but thanks to the app, I am doing better now. I am so grateful that you made the app.
Greenlight Bonnie
Android user
very reliable app to help and grow your ideas of Maths, English and other related topics in your works. please use this app if your struggling in areas, this app is key for that. wish I'd of done a review before. and it's also free so don't worry about that.
Rohan U
Android user
I know a lot of apps use fake accounts to boost their reviews but this app deserves it all. Originally I was getting 4 in my English exams and this time I got a grade 7. I didn’t even know about this app three days until the exam and it has helped A LOT. Please actually trust me and use it as I’m sure you too will see developments.
Xander S
iOS user
THE QUIZES AND FLASHCARDS ARE SO USEFUL AND I LOVE THE SCHOOLGPT. IT ALSO IS LITREALLY LIKE CHATGPT BUT SMARTER!! HELPED ME WITH MY MASCARA PROBLEMS TOO!! AS WELL AS MY REAL SUBJECTS ! DUHHH 😍😁😲🤑💗✨🎀😮
Elisha
iOS user
This apps acc the goat. I find revision so boring but this app makes it so easy to organize it all and then you can ask the freeeee ai to test yourself so good and you can easily upload your own stuff. highly recommend as someone taking mocks now
Paul T
iOS user