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15
50−35 = 15.
A Level · English Medium · Cambridge · Business studies
External influences and enterprise
Evaluate how external changes affect a business through identifiable mechanisms.
Shared cross-level core and stretch unit. Start with the core questions, then use the stretch example for deeper work. The same unit is available in related class and board pathways; it is not a full grade-specific or examination-specification course. A teacher should select the appropriate depth and further topics.
Learn the idea
External influences include technology, competition, prices, regulation and social expectations. Their effects depend on the firm’s customers, costs and ability to respond. An external factor is not itself a business decision. Current laws need authoritative verification before a real compliance decision.
Worked example
If a delivery service’s fuel cost rises, its unit cost may rise. Passing the whole increase to customers may reduce demand; absorbing it may reduce margin. The outcome depends on competitors and customer response.
- Identify the external change.
- Trace its effect on costs or demand.
- Compare responses and remaining uncertainty.
Stretch example
Scenario planning compares coherent alternatives, such as demand rising while costs stay stable versus demand falling while costs rise. It does not assign reliable probabilities merely by naming three scenarios.
Your written practice
Show your working on paper and enter your answer here. If it does not match, compare the model and try again.
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10
50−40 = 10.
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external
It is outside the firm’s direct control.
Write in your own words. A guardian or teacher should review this response.
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It may improve delivery while requiring equipment, training and maintenance.
Trace both sides of the change.
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Actual duties depend on jurisdiction, date and the specific activity.
Require current authoritative verification before acting.
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20
20/100 × 100 = 20.
Write in your own words. A guardian or teacher should review this response.
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A sustained rise in unit costs beyond the stated budget assumption could trigger a price-and-capacity review.
Use an observable condition linked to a decision.
Scenario table
Compare two fictional external changes and two possible responses.
Review with a guardian or teacher
- Explain the mechanism.
- State costs and trade-offs.
- Name evidence needed before choosing.
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