Business prerelease
Page 1: Introduction
Document Overview
Title: CTEC Business Pre Release Unit 1: The Business Environment
Date: 8th January 2025
Page 2: Copyright Information
Fair Use Policy
Educational use for instruction or examination.
Content available at www.orc.org.uk.
Not a replacement for published information from the awarding body.
Page 3: Business Table
Businesses Listed
TESCO
WAITROSE
PIZZA - & PARTNERS
Box numbers: 01, 02, 03, 04, 05
Page 4: Exam Structure
Exam Details
Date: 8th January 2025
Duration: 2 hours
Assessment Structure
Section A: Multiple choice questions.
Section B: Short answer questions (90 marks).
Section C: Short answer and extended response questions based on an unseen scenario.
Grading Criteria
Near-Pass, Pass, Merit, or Distinction based on external assessment.
Page 5: Examination Instructions
Research Requirement
Conduct your own research for preparation.
Mandatory to bring all research compiled in this document to the exam.
Use tables, pictures, graphs for better preparation.
Page 6: Research Brief
Themes for Research
Meeting external stakeholders' objectives.
Compliance with the Consumer Rights Act.
SWOT analysis in action.
Operational responses to rising disposable income.
Use of short-term sources of finance.
Page 7: Research Section
Notes Placeholder
Place for personal research entries.
Page 8: External Stakeholder Objectives
Objectives Overview
Identify internal and external stakeholders.
Conflict Management
How businesses respond to conflicting objectives.
Response Strategies
Internal/external groups' influence on business behavior.
Page 9: Internal Stakeholders
Stakeholders Defined
Role of stakeholders: CEOs, directors, managers, employees, trade unions.
Importance
Stakeholders have vested interests in business activities.
Page 10: External Stakeholders
Categories
Customers: crucial for sales.
Suppliers: essential for product availability and costs.
Local Community, Government: influence through regulations and support.
Page 11: Conflicting Stakeholder Objectives
Examples of Potential Conflict
Customers seek low prices vs. owners profit goals.
Suppliers demand higher prices vs. business cost management.
Government regulatory effects on profit margins.
Page 12: Business Responses
Responses to External Objectives
Influence of stakeholders on business decisions.
Page 13: Conflict Resolution Techniques
Business Strategies
Set clear standards and written policies.
Improve communication with stakeholders.
Explore acceptable compromises for conflicting interests.
Page 14: Customer Value Proposition
Yearly Focus
Commitment to value through pricing strategies.
Examples
Price cuts, promotional campaigns, and assurances of economic relief.
Page 15: Community Involvement
Local Engagement
Initiatives like Stronger Starts, meal donations, and community programs.
Impact of cost-of-living crisis on community needs.
Page 16: Community Engagement Strategies
Programs and Contributions
Significant meal donations.
Community project support and involvement.
Page 17: Research Prompts
Questions for Reflection
What are stakeholder objectives?
How does Tesco meet their stakeholders' needs?
Consequences of failing to meet these needs.
Page 18: Example Response
Customer Satisfaction Example
Tesco cuts prices on groceries, enhancing customer retention and sales.
Page 19: Compliance with Consumer Rights Act
Legal Obligations
Importance of adhering to consumer protection laws and implications of violations.
Page 20: Consumer Protection Laws
Overview
Inclusion of digital content in consumer rights.
Ensuring satisfactory quality, fitness for purpose, and accurate descriptions.
Page 21: Product Standards
Compliance Criteria
Goods must be: appropriate quality, fit for intended use, and as described.
Customer Rights
Refund eligibility for defective goods.
Page 22: Volkswagen Scandal Analysis
Key Points
Impact of the scandal on trust and sales.
Consequences including regulatory fines and loss of consumer confidence.
Page 23: Volkswagen's Response
Warranty Overview
Comprehensive warranty for customer assurance.
Changes and Future Products
Improvements to product offerings post-scandal.
Page 24: Research Prompts on Consumer Rights
Questions for Exploration
What is the Consumer Rights Act?
What rights do consumers have?
Consequences for businesses failing to comply.
Page 25: Example Response Structure
Writing Guidance
Use Point, Explain, Example, Leading to format for a structured answer.
Page 26: SWOT Analysis Overview
SWOT Framework
Definition: Tool assessing internal strengths/weaknesses and external opportunities/threats.
Page 27: SWOT Analysis Breakdown
Purpose
Assists businesses in decision-making and current position assessment.
Page 28: SWOT Elements
Elements Defined
Strengths (internal advantages), Weaknesses (internal drawbacks), Opportunities (external favorable conditions), Threats (external risks).
Page 29: TESCO SWOT Analysis Details
Key Metrics
2023 Sales and Market Share overview.
Business Growth and Community Involvement Impact.
Page 30: Consumer Behavior Insights
Market Dynamics
Trends in consumer spending and focus on sustainability and value.
Page 31: Principal Risks Overview
Major Risks
Cybersecurity, data privacy, and operational safety risks.
Page 32: Research Prompts on SWOT Analysis
Questions for Analysis
Define SWOT and its utility; perform SWOT for Tesco.
Page 33: Example Answer Template
Structuring Responses
Encourage use of structured approach for analysis, covering products or industry context.
Page 34: Operational Responses Overview
External Influences on Businesses
Focus on societal factors affecting retail strategies.
Page 35: Concept of Disposable Income
Definition
Disposable income: Money available for spending or saving after taxes.
Page 36: Business Strategies Based on Disposable Income
Strategic Responses
Stocking luxury goods during high income phases.
Adjusting pricing strategies according to economic context.
Page 37: Waitrose's Responses
Community Engagement in Different Economic Levels
Strategies to cater to varying disposable incomes:
Store presence adjustments.
Product offering diversity.
Page 38: Research Prompts on Disposable Income
Evaluative Questions
Importance of understanding disposable income.
Responses made by businesses in relation to income trends.
Page 39: Example Answer Structure for Disposable Income
Structuring Guidance
Use structured approach for focusing on product implications and financial outcomes.
Page 40: Short-term Finance Overview
Financial Planning Importance
Need for varying financial sources (internal/external, short/long-term).
Page 41: Short-term Finance Implications
Cash Flow Management
Recognizing issues leading to potential business failure and measures to resolve cash flow problems.
Page 42: Definition of Short-term Finance
Characteristics
Short-term finance: liabilities settled within 12 months.
Page 43: Overdraft Use
Overdraft Features
Allows businesses quick access to funds;
Advantages for managing operational costs and emergencies.
Page 44: Case Study: Pizza Box
Contextual Application
Use Pizza Box scenario illustrating need for short-term finance during growth periods.
Page 45: Research Questions on Short-term Finance
Guided Questions
Importance of short-term finance and its various forms; case studies for contextual understanding.
Page 46: Structured Response Example
Writing Instructions
Use Point, Explain, Example, Leading to format with application to industry specifics.