Practise external factors by using case evidence, environmental data and business aims to explain or justify business decisions.
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
A02
- 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
A03
- 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
(6)
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)
The demand for NOF products can be affected by external factors.
State one external factor that could cause a change in demand for NOF products.
A02-1 mark
Award 1 mark for a valid external factor in the
context of the business.
Accept any other appropriate response.
(1)
Artify Studio was set up in 2015 by Tay Hui Jae in the busy Kampong Glam area of Singapore. Artify Studio's aim is to have 'a communal art space where people can come together and paint, where people would be given as much creative freedom as they would have if they were in their own spaces.'
Artify Studio provides many services including its popular Liberty Art Jam where customers can paint as well as listen to music. The studio offers a Corporate Art Jam and Regular Kids Classes. Customers can purchase art materials after attending the studio.
Artify Studio is a profit-making organisation with a social element. It employs seven part-time people, all of whom are art enthusiasts.
Which one of the following is a political factor that can affect a business?
Select one answer.
Taxation
Global warming
Habitat destruction
Part-time workers
A