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: 2]
KCL manufactures paper which is used in the production of newspapers and books. KCL holds a high level of inventory and buys all its raw materials, including wood, from local suppliers. Quality control is important. The Operations Director is considering ways to increase efficiency in the factory. Pressure groups are trying to influence KCL's decisions to ensure that the business does not create more external costs than external benefits.
Identify two ways a pressure group might try to influence business decisions.
Way 1:
Way 2:
Award 1 mark per way (max 2).
Points might include:
- Create negative publicity / publish information about business / write to newspaper
- Organise customer boycotts
- Organise demonstrations / protests / rally opposition
- Lobby/petition / send letters to government
- Demand interview with company
- Take legal action
Other appropriate responses should also be credited.
Only award the first two responses given.
Do not award:
Change laws
Spread awareness on own - need how.
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