A2 Revision Exam Technique

Unit 6 External Influences and objectives and Strategy 20% of total A level mark, 84 marks Compulsory question based on a case study contained within the paper The exam requires knowledge from all course content (marketing, finance, people and operations )

External Influences Economic Opportunities and Constraints - Changes in, and the level of, interest rates, exchange rates, inflation, unemployment, the business cycle, labour market, International competitiveness and Economic growth The European Union and other overseas opportunities in emerging markets Governmental opportunities and constraints - Government policies affecting business Social opportunities and constraints - Social responsibilities, Business ethics, Environmental pressures and opportunities, Political change, Pressure group activity,Social auditing

Objectives and Strategy - Syllabus Transition in size - Financing growth, problems with growth and management changes Change in ownership - mergers, take-overs management buyouts Mission and culture Decision making tools - Ansoff’s matrix, scientific management, decision trees Contingency planning and crisis management Corporate planning - Porter’s Generic strategies

Exam Skills Content Application Analysis Evaluation Unit 6 20% 15% 25% 40%

Application Relating your answer directly to the text. Your answer should not be a general response but specific to the case-study

Application - Example Question: How could Company X increase its brand awareness and maintain it market share. Company X should invest in a variety of promotion methods. Application present Application not present, only content As company X is making a healthy level of profit of £1 million it will be able to invest in a range of above the line and below the line promotion methods. As it is in a very competitive market it must continue to promote heavily to maintain its existing market share.

Application key ideas How many products does the firm have? How much competition is there in the market? What is the firms financial position? How financially secure is the firm? How experienced/motivated are the staff? Is the company growing? Is the market growing?

Analysis Involves developing a line of thought and describing the cause and effect chain. Making points and then fully explaining their impact or consequence on the business Strong analysis requires the use of a range of business theory and terminology

An example of analysis Question: How will low interest rates influence the decision to enter a new market abroad? Low interest rates make investment more attractive and reduce business costs. - BASIC POINT - MOSTLY CONTENT MARKS A new premises in the foreign market will be able to be purchased more cheaply with a loan when interest rates are low. - START OF ANALYSIS - SOME BUSINESS IMPLICATIONS DISCUSSED The fact costs can be kept low will allow the firm to price their goods competitively using a price penetration strategy in the new foreign market. This will be vital to establish a market share and encourage brand loyalty in this new market.- POINT FULLY DEVELOPED AND IMPLICATIONS DISCUSSED FOR BUSINESS - FULLY ANALYSED

Evaluation Evaluation involves making a judgement by weighing up the evidence provided in the case study. Most questions will require you to fully analyse both sides of an argument and then choose the most suitable course of action. Must always consider what is the most important issue and the short and long term impacts

Evaluation key phrases (making a judgement) The most significant factor is….. However, X would also need to be considered because….. The decision may depend upon.. The probable result is…. because…. but in the long run X may become more……

Evaluation Key Ideas Long run Vs short run Internal Vs external factors Quantitative Vs Qualitative Market Conditions/changes Conflicting aims of business Quality of assumptions