Unit 1 - Exploring Business

*Distinction Graded* Learning Aim E: D4 Justify the use of innovation and enterprise for a business in relation to its changing market and environment.

*Certified High Graded Work* Learning Aim E: M5 Analyse how successful the use of innovation and enterprise has been for a given business.

*Certified High Graded Work* Learning Aim E P7: Role of innovation and enterprise • Innovation, e.g. creative process, product or service development, new ways of increasing business efficiency or improving profitability, successfully exploiting a new idea, adding value to products, services or markets to differentiate the business from the competitors. • Enterprise: identifying opportunities to develop business activities through, e.g. creative, lateral (approaching subjects from alterna...

*Distinction Graded* Learning Aim D: D3 Evaluate how changes in the market have impacted on a given business and how this business may react to future changes.

*Certified High Graded Work* Unit 1 Learning Aim D.M4 Assess how a given business has responded to changes in the market.

*Certified High Graded Work* Learning Aim D: D1 Different market structures • Market structures: perfect competition, imperfect competition. • Features of different market structures: number of firms, freedom of entry, nature of product. D2 Relationship between demand, supply and price • Influences on demand, e.g. affordability, competition, availability of substitutes, level of Gross Domestic Product (GDP), needs and aspirations of consumers. • Influences on supply, e.g. availabili...

*Certified High Graded Work* Includes D2 Task: Evaluate the extent to which the business environment affects a given business, using a variety of situational analysis techniques.

*Certified High Graded Work* Includes: Learning Aim C M3 Assess the effects of the business environment on a given business.

*Certified High Graded Work* C4 Situational analysis • Assessment of the business environment using various techniques, e.g. PESTLE (Political, Economic, Social, Technological, Legal, Environmental) analysis, SWOT (Strengths, Weaknesses, Opportunities, Threats) analysis, 5Cs (Company, Competitors, Customers, Collaborators, Climate) analysis, Porter’s Five Forces.

*Certified High Graded Work* C1 External environment • Political, e.g. government support, trading partners with other countries. • Economic, fiscal, monetary and other government policies, e.g. supply side policy, economic growth, exchange rates. • Social attitudes to saving, spending and debt; social responsibility requirements; change, e.g. to demographic trends, consumers’ tastes/preferences. • Technological change, e.g. automation, improved communications. • Environmental fact...