Practise external factor questions by calculating data changes, analysing demand or cost effects and justifying decisions with case evidence.
The Better Toy Store (TBTS) is a children's toy shop. TBTS has three shops in Singapore. Two of the shops are located in busy shopping malls and the third is located at the Jewel Changi Airport. TBTS has a website for customers looking to buy toys online.
TBTS selects toys to sell that are excellent for play, value, design and quality. All TBTS toys are environmentally friendly.
Analyse the likely impact of external factors on business decisions made by TBTS.
AO2 = 3 marks AO3 = 3 marks
AO2
- Social factors can help TBTS as changes in society shows customers might be demanding more environmentally friendly toys
- Technological advances could increase the cost of buying or the price of a range of toys
AO3
- This will make TBTS more competitive and bring more customers into the toy shops as they are acting in a responsible way for the environment whilst selling high quality goods
- If the technology in toys increases rapidly then TBTS could be left with unwanted stock as customers buy the newer toys
| Level | Mark | Descriptor |
|---|---|---|
| 0 | No Rewardable material. | |
| Level 1 | 1-2 | - Limited application of knowledge and understanding of business concepts and issues to the business context. (AO2) - Attempts to deconstruct business information and/or issues, finding limited connections between points. (AO3) |
| Level 2 | 3-4 | - Sound application of knowledge and understanding of business concepts and issues to the business context although there may be some inconsistencies. (AO2) - Deconstructs business information and/or issues, finding interconnected points with chains of reasoning, although there may be some logical inconsistencies. (AO3) |
| Level 3 | 5-6 | - Detailed application of knowledge and understanding of business concepts and issues to the business context throughout. (AO2) - Deconstructs business information and/or issues, finding detailed interconnected points with logical chains of reasoning. (AO3) |