Practise external factors by using case evidence, environmental data and business aims to explain or justify business decisions.
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
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)
Loaf, a bakery and cookery school, was set up by Tom Baker in Birmingham, UK. The aim is to promote real food and healthy living. It wants to use its skilled chefs to bring real food to the kitchens of the local community. It uses its cookery courses and bakery to help restore the local high street. Loaf also hosts pop-up events (one-off events) in different parts of the city where it shows off its products. Any profit made through these events is directed towards furthering Loaf's charitable work.
Loaf operates a scheme called 'Waste Not'. At the end of the day Loaf donates any leftover food to charities who distribute it to local people. In addition, Loaf provides a recycling hub for the local community.
Loaf is a social enterprise with nine members of staff; six of whom are directors.
Analyse the importance of environmental factors for Loaf.
AO2 = 3 marks AO3 = 3 marks
AO2
- There is more interest in businesses becoming 'green' and Loaf provides somewhere for the community to recycle.
- Loaf operates the 'Waste Not' scheme by giving away waste instead of disposing of it to reduce the amount the business disposes of.
AO3
- If the business is able to recycle packaging then it can cut costs leading to more profit to be contributed back to the local community, customers will be happy about this as they can physically see their local area being helped.
- This is important for Loaf as customers will be able to see that the business is helping charities, meeting its social objectives and reducing any waste that it produces as a business.
(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)