Unit 1 LA C&D Guidance

What is PESTLE analysis?

Why is important for busineses to conduct PESTLE analysis?

How does PESTLE analysis help a business to succeed?

Explain the political enviroment in the UK

Describe using two / three examples, explain some of the political policies in the UK.

Discuss the positive impacts these policies have on the business.

Discuss the positive impacts these policies have on their customers.

Discuss the negative impacts these policies have on the business.

Discuss the negative impacts these policies have on their customers.

Support your examples with evidence of your research. 
Use screenshots
Relate it to your business.

Explain the Economic enviroment in the UK

Describe using two / three examples, explain some of the Economic activities in the UK.

Discuss the positive impacts these policies have on the business.

Discuss the positive impacts these policies have on their customers.

Discuss the negative impacts these policies have on the business.

Discuss the negative impacts these policies have on their customers.

Support your examples with evidence of your research. 
Use screenshots
Relate it to your business.

Explain the Social enviroment in the UK

Describe using two / three examples, explain some of the Social activities in the UK.

Discuss the positive impacts these policies have on the business.

Discuss the positive impacts these policies have on their customers.

Discuss the negative impacts these policies have on the business.

Discuss the negative impacts these policies have on their customers.

Support your examples with evidence of your research. 
Use screenshots
Relate it to your business.

Explain the Technological enviroment in the UK

Describe using two / three examples, explain some of theTechnological changes in the market.

Discuss the positive impacts these policies have on the business.

Discuss the positive impacts these policies have on their customers.

Discuss the negative impacts these policies have on the business.

Discuss the negative impacts these policies have on their customers.

Support your examples with evidence of your research. 
Use screenshots
Relate it to your business.

Explain the Legal enviroment in the UK

Describe using two / three examples, explain some of the legal policies in the UK.

Discuss the positive impacts these policies have on the business.

Discuss the positive impacts these policies have on their customers.

Discuss the negative impacts these policies have on the business.

Discuss the negative impacts these policies have on their customers.

Support your examples with evidence of your research. 
Use screenshots
Relate it to your business.

Describe using two / three examples, explain some of the Enviromentall policies in the UK. 

Discuss the positive impacts these policies have on the business.

Discuss the positive impacts these policies have on their customers.

Discuss the negative impacts these policies have on the business.

Discuss the negative impacts these policies have on their customers.

Support your examples with evidence of your research. 
Use screenshots
Relate it to your business.

Describe how PESTLE analysis can POSITIVELY  affect your business.

Describe how PESTLE analysis can NEGATIVELY affect your business.

Evaluate the EXTENT to which PESTLE analysis can have on YOUR business.

In summary to what EXTENT does a PESTLE analysis have positive or negative effects on your chosen business? Explain Why. 

Identify 3 businesses that are competiting with your business.

Explain why they are competitors.

What are some of the similarities in their activities?

What are some of the differences in their activities?

What positive impact does your competitors activities have on your business?

What negative impact does your competitors activities have on your business?

• To what EXTENT does the competitors activity affect your business?
• Give reasons for your answer.
• Draw on the positive and negative impacts of the competitors activities on your business.

What is SWOT Analysis?

Why is it important for a business to conduct SWOT Analysis?

In what way can SWOT Analysis help a business to Succeed?

What are the strengths of your business?

Highlight 4-6 Strengths

Examples of strength includes.....

• What makes them better than the competitors?
• Do they have loyal customers?
• Do they have a good reputation?
• What is the unique thing about the company?
• How skilled are the employees?
• What are the things that other people say the business does well?
• Do they have lots of experience with the product/market?
• What are the advantages they have over their competitors?
• Do they have a strong brand?

Make Reference to your business and show evidence from your research

What are the Weaknesses of your business?

Highlight 4-6 weaknesses?

Examples of weaknesses includes....

• What areas does the business need improvement on?
• What areas do their competitors have an advantage on?
• Are they making enough profit?
• Do they have a bad reputation?
• Do they have a wide product range to rely on?

Make Reference to your business and show evidence from your research

What are the opportunities for your business?

Highligth 4-6 opportunities.

Some examples of Opportunities includes ...

• Are there any current ongoing trends that the business could take advantage of?
• Are there any technological improvements that the business can take advantage of? 
• Is there a gap in the market the business can fill? 
• Is your rival company failing to satisfy their customer base?
• If so, can you steal their customers?
• Will natural causes like weather and climatic changes give you the competitive edge?
• Are there any new locations/markets the business can take advantage of? 

Make Reference to your business and show evidence from your research

What are the threats your business is faced with?

Highlight at least 4-6 threats.

Some examples of threats are ....

• What are the negative aspects in the current market?
• What are the obstacles you are facing in the current market e.g. too much competition?
• Do you see a change in consumer taste?
• Are the government regulations/legislations going to affect you?
• Is the economy stable? Will this affect your business?
• Increased cost of supplies?

Make Reference to your business and show evidence from your research

What is Porter's Five Forces

Why does a business use Porter's Five Forces

Why is it important for a business to understand its position in terms of competition.

With reference to the market your business is operating in ...

Is competition high or low? Use statistic in your answer.

what is the size of the market?

what are the groth prospects in the market?

Are the customers in the market loyal? or are they easily swayed? Give reasons and show statistics.

How is it for businesses in the market to differentiate their products?

Are there close substitutes for their products?

What are the threats posed by New Markets Entrants?

How easy is it for new businesses to enter the market?

what are the barreirs to entry in that market?

Support with evidence collected from research.

Who are their customers/buyers?

• How powerful are they (customers/buyers).
• How big is the number of potential customers in your market?
• What quantity do they buy the products in your market e.g is it a one off purchase or regular?
• How many other suppliers of the product are there?
• How easy is it for customers to switch to competitors if the price goes down?

Support with evidence collected from research.

who are the main suppliers in the market?

What power do the suppliers have in the market / your business?

what impact does the power of suppliers have on your business? 

Discuss both positive and negative impact.

How easy is it for your business / market to get hold of raw materials?

What impact does this  (availability of raw materials) have on price?

Support with evidence collected from research.

Does your business have substitute product?- other businesses meeting the same needs... example bus business will have trains as substitute.

Are the customers loyal to the product / brand?

Will it cost customers to switch to substite products?

Support with evidence collected from research.

• What are the advantages of Porter's Five Forces to your business?
• What are the disadvantages of Porter's Five Forces to your business?
• Discuss how it has affected your business.
• To what EXTENT does it affect your business.
• Give reasons for your answer.

Support this with your research data.

• Explain which situational analysis affects your business more(to what EXTENT),e.g. SWOT, PESTLE, Competitive environment or Porter’s Five Forces. 

• Use data from your research.

C.P4 – Discuss the internal, external and competitive environment on a given organisation

C.P5 select a variety of techniques to undertake a situational analysis of a given business

C.M3 Assess the effects of the business environment on a given organisation

C.D2 Evaluate the extent to which the business environment affects a given business, using a variety of situational analysis techniques.

Include Evidence of Research

Include References

What is a Perfect Competition Market Structure?

What are the features of a Perfect Competition Market?

Name some real life businesses that fall in this market structure.

What is an imperfect Competition Market Structure?

What are the features of an imperfect Competition Market?

Name some real life businesses that fall in this market structure.

What is the market structure of your business operates in?

Explain with evidence why you think your business operates in this market structure.

What are the advantages and disadvantages to your business for operating in this market structure.

Explain the term "demand"

What are the factors that influence demand. Factors should include the following....

Affordability

• what is affordability?
• are the prices charged by your business affordable?
• how does the price your business charge impact on the demand for the businesses goods and service...

if prices are high what is the impact on demand.
if prices are low what is the impact on demand 

• Explain the impact on demand of your business if they decide to increase their prices.
• Explain the impact on demand of your business if they decide to decrease their prices.

What are the factors that influence demand. Factors should include the following....

Competition

what is competition?

How competitive is the market your business operates in?

Explain the positive impacts competition have on the demand for your chosen business.

Explain the negative impacts competition have on the demand for  your chosen business.

• Identify a recent change in the market.
• Evaluate how your chosen business has adapted and developed to meet this change and the impact it has had on demand for the product. 

Explain Gross Domestic Product(GDP)

What is the current GDP for the UK?

What positive impact does the current GDP in the UK have on demand for your business?

What negative impact does the current GDP in the UK have on demand for your business?

What does "needs and aspiration of consumers" mean?

Does your business provide a NEED or an ASPIRATION?

Explain the impact need and aspiration has on demand for your chosen business.

What is meant by supply

Explain what is meant by availabilty of raw materials and labour.

Discuss the factors that affect the availability of raw materials and labour.

Analyse how your business has dealt with these factors

Explain the positive impact this has on supply for your chosen business.

Explain the negative impact this has on supply for your chosen business.

Explain what is meant by Logistics.

Discuss how the logistics affect supply.

Explain the positives impact this has on supply for your chosen business.

Explain the negatives impact this has on supply for your chosen business.

Explain Availability to produce profitably.

• Explain the impact this has on supply for your chosen businesses product/service

What is meant by government support?

How does the government support your business?

Explain the positive impact this has on supply for your chosen businesses product/service

Explain the negative impact this has on supply for your chosen businesses product/service

Explain what price leasticity of demand is?

Explain using real life Examples?

What positive impact does this have on your chosen businesses goods/service?

What negaitive impact does this have on your chosen businesses goods/service?

• Explain how the above you have discussed has effected the pricing and output decisions made by your business.

• Identify if they use loss leaders and the impact this has

• Explain the impact pricing and output decisions made by competitors have on your business. 

• For the Merit Task you must choose 2 changes in the market that your business has responded to.

• Make a judgement on how your business responded to the changes

• Evaluate how the changes mentioned in the merit section have impacted on the business (positives and negatives of the changes)

• Discuss how the business will respond to future changes (E.g. Brexit)

D.P6 – Explore how the market structure and influences on supply and demand affect the pricing and output decisions for a given business

D.M4 – Assess how a given business has responded to changes in the market

D.D3 – Evaluate how changes in the market have impacted on a given business and how this business may react to future changes