Component 3

Question 1

Explain the causes of change in business including a change in the size of the business, a change in ownership, developments in technology, market changes, consumer tastes, legislation, changes in the workforce and changes in the economy (Change)

Question 2

Distinguish between internal and external causes of change (Change)

Question 3

Distinguish between planned and unplanned change (Change)

Question 4

Explain the effects of change on business including the need to change production methods and update equipment, need to develop new products, need to meet legal requirements, need to retrain the workforce and need to look for new markets (Change)

Question 5

Explain the importance of managing change effectively (Change)

Question 6

Explain different approaches to managing change including Storey’s four different approaches (Change)

Question 7

Explain why there may be resistance to change and ways of removing resistance including Lewin’s three step process, changes in organisational culture and the role of leadership (Change)

Question 8

Explain how the management of change can be evaluated (Change)

Question 9

Evaluate the impact of change on a business and its stakeholders (Change)

Question 10

Evaluate the importance of managing change effectively (Change)

Question 11

Identify the risks that businesses are likely to encounter, including natural disasters, failure of equipment/technology, employee error, supply problems, economic factors, legal challenges, public relations and product failures (Risk Management)

Question 12

Explain that some risks are more certain to happen than others and that this will affect the decision as to how much a business will be willing to spend on their prevention (Risk Management)

Question 13

Explain the importance of risk assessment as a tool for avoiding risks (Risk Management)

Question 14

Explain how some risks can be dealt with by preventative actions such as installing water sprinklers, backing up IT data and training employees (Risk Management)

Question 15

Explain the difference between insurable and uninsurable risks (Risk Management)

Question 16

Explain what is meant by contingency planning and crisis management(Risk Management)

Question 17

Explain ways in which businesses can use contingency planning to deal with risks that may affect their activities such as having contingency funds, alternative production arrangements, allocating responsibilities to managers/employees and dealing with public relations in the event of a crisis (Risk Management)

Question 18

Evaluate the possible responses of a business to the potential risks that it faces (Risk Management)

Question 19

Evaluate the importance of risk management and contingency planning to a business and its stakeholders (Risk Management)

Question 20

Explain how political factors affect business activity (Political factors)

Question 21

Explain the role of the government in providing a stable framework in which businesses operate (Political Factors)

Question 22

Explain how businesses are affected by taxation and subsidies (Political Factors)

Question 23

Explain how fiscal and monetary policies affect businesses (Political Factors)

Question 24

Explain why governments legislate and regulate business activity (Political Factors)

Question 25

Explain the importance of the government as a purchaser of goods and services from the private sector (Political Factors)

Question 26

Evaluate the relationship between government and businesses (Political Factors)

Question 27

Explain how economic factors affect business activity (Economic Factors)

Question 28

Explain what is meant by economic growth and the business cycle and their measurement (GDP) (Economic Factors)

Question 29

Explain what is meant by inflation including its measurement and causes (Economic Factors)

Question 30

Explain what is meant by interest rates (Economic Factors)

Question 31

Explain what is meant by exchange rates (Economic Factors)

Question 32

Explain what is meant by unemployment (Economic Factors)

Question 33

Evaluate the impact of the business cycle, inflation, interest rates, exchange rates and unemployment on businesses and their stakeholders (Economic Factors)

Question 34

Explain what is meant by demographic change (Social Factors)

Question 35

Explain how demographic change and other social factors such as changes in consumer tastes, lifestyle and cultural changes affect business activity (Social Factors)

Question 36

Evaluate the impact of demographic change on businesses and their stakeholders (Social Factors)

Question 37

Evaluate the impact of other social factors on businesses and their stakeholders Social Factors)

Question 38

Explain how technological factors, including automation and communication technology affect business activity (Technological Factors)

Question 39

Evaluate the impact of technological factors on businesses and their stakeholders (Technological Factors)

Question 40

Explain the meaning of business ethics

Question 41

Understand the types of ethical issues a business will face including environmental, animal rights, treatment of workers, suppliers and customers

Question 42

Explain the meaning of corporate social responsibility (CSR)

Question 43

Understand the possible conflict between ethics and profitability

Question 44

Evaluate the impact on the profitability of a business of having ethical objectives

Question 45

Evaluate the ethical stance of businesses from the point of view of different stakeholders (Ethical Factors)

Question 46

Explain the main laws that concern businesses, including company law, employment and anti-discrimination law, consumer protection, competition policy and health and safety legislation, data protection, intellectual property and minimum wage (learners are not expected to have detailed knowledge of specific Acts of Parliament)

Question 47

Evaluate the impact of legislation on businesses and their stakeholders (Legal Factors)

Question 48

Explain the potential environmental costs of business activity including air, water and noise pollution, climate change, congestion, destruction of the environment and waste disposal

Question 49

Explain how potential environmental costs can be controlled by government intervention, the influence of pressure groups and education

Question 50

Explain how businesses can respond to environmental issues

Question 51

Evaluate the impact of business activity on the environment

Question 52

Evaluate the impact on a business of implementing environmentally friendly policies (Environmental Factors)

Question 53

Explain what is meant by international trade

Question 54

Explain the reasons for international trade

Question 55

Explain what is meant by free trade and protectionism (including tariffs and quotas)

Question 56

Explain what is meant by a trading bloc and a single market

Question 57

Evaluate free trade and protectionism to UK businesses and their stakeholders

Question 58

Explain the challenges to UK businesses of developing new international markets for their products

Question 59

Evaluate the decision of a business to develop new international markets for its products (International Trade)

Question 60

Explain what is meant by globalisation

Question 61

Explain the nature of globalisation and global markets, including developing markets

Question 62

Explain the factors that have contributed to globalisation including communication technologies, liberalisation of trade, Internet, cost of transportation and consumer tastes

Question 63

Explain the effect of globalisation on businesses and their stakeholders including increased competition and opportunities for growth

Question 64

Explain the different strategies that businesses might use in order to achieve global growth including global branding, external growth and choice of target markets

Question 65

Evaluate the strategies that businesses use to achieve global growth

Question 66

Explain the benefits and difficulties for UK businesses of operating in global markets

Question 67

Explain how businesses adapt their products, marketing activities and working practices to reflect the local needs (glocalisation)

Question 68

Evaluate the impact of globalisation on UK businesses and their stakeholders

Question 69

Explain what is meant by a multinational company

Question 70

Explain the reasons for the existence of multinational companies

Question 71

Evaluate the decision of a business to operate as a multinational company

Question 72

Evaluate the impact of multinational companies on the countries in which they operate (Globalisation)

Question 73

Explain the nature and purpose of the European Union (EU) and the single European market

Answer 73

- Free trade of goods, services, and actors of production - Common technical standards (metric units and safety) - Common external tariff on imports from outside - A single European currency

Question 74

Explain the impact of the EU on businesses including free movement of goods, labour and capital, legislation, regulations and standards

Question 75

Evaluate the impact of the EU on businesses and their stakeholders

Question 76

Explain what is meant by the single European currency (the euro) and the Eurozone

Question 77

Evaluate the costs and benefits of the single European currency to businesses and their stakeholders

Question 78

Evaluate the impact to UK businesses of being a member of the EU and the Eurozone

Question 79

Evaluate the impact to UK businesses of not being a member of the EU and the Eurozone (The European Union)