CAIE IGCSE Business Studies 6.5 Pressure Groups Questions
Practise defining pressure groups and explaining how campaigns, publicity and boycotts can influence business decisions in context.
- Syllabus
- 2027–2029
- Course
- Business 0264
Exam points
- define a pressure group as people acting together to influence business or government
- explain how boycotts, publicity or campaigns can pressure a business to change
- justify which pressure group method is likely to be most effective in a case
Covered syllabus points
Question 1
[Maximum number: 4]
FSW is a multinational company with operations in 6 countries. It manufactures steel for use in the construction industry. Quality assurance is used to ensure quality production. FSW has many stakeholder groups who are interested in its activities. The Managing Director knows FSW's business creates external costs. She is aware that pressure groups try to influence business decisions.
Identify four ways a pressure group might try to influence business decisions.
Way 1:
Way 2:
Way 3:
Way 4:
Award 1 mark per way (max 4).
Points might include:
- (Organise) customer boycotts
- Raise awareness or examples such as cause negative publicity / publish information / write to newspaper
- Lobby/send letters to government
- Demonstrations/protests
- Arrange petitions
- Legal action
Other appropriate responses should be credited.
Only award the first four responses given.
Question 2
[Maximum number: 6]
RBG is an oil company. It has operations in 6 countries. RBG has 2000 employees including 60 managers. Some of its managers use a laissez-faire leadership style. All of RBG's internal communication uses information technology (IT) based methods. The Managing Director knows RBG's business activities can create external costs and external benefits. She says: 'Pressure groups often try to influence business decisions.'
Explain two ways a pressure group might try to influence business decisions. Which way do you think is likely to be the most effective? Justify your answer.
Award up to 2 marks for identification of relevant points. Award up to 2 marks for relevant development of points. Award up to 2 marks for a justified decision as to which is the most effective way for a pressure group to try to influence business decisions.
Points might include:
- (Customer) boycotts/encourage customers not to buy [k] leading to fewer sales [an] and possibly less revenue [an]
- Raise/increase awareness or examples such as cause negative publicity / publish information / write to newspaper / publicity stunts [k] which could damage the business' reputation [an]
- Lobbying (politicians)/send letters to government [k] which could lead to changes in the law / which could take time [an]
- Demonstrations/protests [k] which could lead to fewer people willing to invest in the business [an]
- Arrange petitions [k]
- Take legal action [k] but may increase costs [an]
Other appropriate responses should be credited.
Justification might include:
A pressure group could organise boycotts [k] leading to fewer sales [an]. It could lobby politicians [k] which could influence government decisions [an]. A boycott is the most effective way because fewer sales could mean less revenue which directly affects the business [eval], whereas lobbying may not achieve anything other than raising awareness [eval].
This is a general question so there are no marks for application.
Some points of analysis can be used for different ways but do not award the same development twice.
To access [eval], must discuss two valid ways.
Question 3
[Maximum number: 6]
DNG provides electricity to 16 million customers. It is a limited company which means DNG's shareholders benefit from limited liability. DNG is planning to stop using coal to produce its electricity. Pressure groups had an influence on this decision. The Managing Director knows there will be an opportunity cost to making this change. She is considering the best way to communicate this important information to DNG's 6500 employees.
Explain two ways a pressure group might influence DNG's decisions.
Way 1:
Explanation:
Way 2:
Explanation:
Award 1 mark for identification of each relevant way (max 2).
Award 1 mark for each relevant reference made to this business (max 2).
Award 1 mark for each relevant explanation (max 2).
Points might include:
- Create (negative) publicity / publish information / write to newspaper [k] about the impact of using coal [app] damaging its reputation [an]
- Organise customer boycotts [k] of its 16 million customers [app] leading to fewer sales / less revenue [an]
- Demonstrations / protests [k] about electricity production [app] which could reduce investment in the business [an]
- Petition / send letters to government [k] against this limited company [app]
- Lobbying [k]
- Take legal action [k]
Other appropriate responses should also be credited.
Note: Can award responses which refer to strikes as TU may use to influence pay or working conditions.
To use words from the stem as application, the reference must be appropriate (i.e. make sense) in relation to the point being made.
The following words are likely to be appropriate for this question:
- Electricity
- Coal
- 16 million (customers)
- 6500 (employees)
- Opportunity cost
- Limited company / shareholders
Other appropriate examples in context can still be credited.
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