How do I revise Business in a Changing World for WJEC A-Level?

Ensure you can evaluate the impact of EU membership from the perspective of different stakeholders, not just the business itself.

What exam tips are there for Business in a Changing World? (2)

Be prepared to discuss the implications of the single currency (Eurozone) even if the UK was not a member, as it affects trade and exchange rates.

What exam tips are there for Business in a Changing World? (3)

Use the 'evaluate' command word to provide balanced arguments regarding the costs and benefits of EU membership or the single currency.

What mistakes should I avoid in Business in a Changing World?

Failing to distinguish between internal and external causes of change

What are common errors in Business in a Changing World exams? (2)

Confusing planned change with unplanned change

Business in a Changing World

WJEC

A-Level

The European Union subtopic focuses on the nature, purpose, and impact of the EU and the single European market on businesses. It covers the implications of the free movement of goods, labour, and capital, as well as the impact of EU legislation, regulations, and standards. It also examines the single European currency (the euro), the Eurozone, and the comparative impacts of EU membership versus non-membership for UK businesses.

Objectives

Exam Tips

Pitfalls

Key Terms

Mark Points

Subtopics in this area

Business in a Changing World

Topic Overview

Business in a Changing World is a foundational topic in WJEC A-Level Business that explores how external factors shape business strategy and operations. It examines the dynamic environment in which businesses operate, including economic, technological, social, legal, and ethical influences. Understanding this topic is crucial because businesses must constantly adapt to survive and thrive; failure to respond to change can lead to decline. This topic also introduces key models like PESTLE analysis and stakeholder mapping, which are used throughout the course to analyse real-world business scenarios.

The topic is divided into several key areas: the impact of external influences (e.g., interest rates, inflation, technological innovation), corporate social responsibility (CSR), ethics, and the pressures of globalisation. Students learn how businesses balance profit with social and environmental responsibilities, and how they navigate issues like climate change, fair trade, and data privacy. This topic connects directly to later modules on strategy, marketing, and finance, as external changes often trigger shifts in business objectives and resource allocation.

Mastering this topic is essential for exam success because it appears in multiple question types, from short-answer definitions to 25-mark essays. Students must be able to apply concepts like PESTLE to unfamiliar contexts, evaluate the impact of change on stakeholders, and argue for or against ethical business practices. A strong grasp of this topic also helps students develop critical thinking skills, as they learn to assess trade-offs between profitability and sustainability.

What You Need to Demonstrate

Key skills and knowledge for this topic

Explain the nature and purpose of the EU and the single European market
Explain the impact of the EU on businesses (free movement of goods, labour, capital, legislation, regulations, standards)
Evaluate the impact of the EU on businesses and their stakeholders
Explain the single European currency (the euro) and the Eurozone
Evaluate the costs and benefits of the single European currency to businesses and their stakeholders
Evaluate the impact to UK businesses of being a member of the EU and the Eurozone
Evaluate the impact to UK businesses of not being a member of the EU and the Eurozone
Distinction between internal and external causes of change

Marking Points

Key points examiners look for in your answers

Explain the nature and purpose of the EU and the single European market
Explain the impact of the EU on businesses (free movement of goods, labour, capital, legislation, regulations, standards)
Evaluate the impact of the EU on businesses and their stakeholders
Explain the single European currency (the euro) and the Eurozone
Evaluate the costs and benefits of the single European currency to businesses and their stakeholders
Evaluate the impact to UK businesses of being a member of the EU and the Eurozone
Evaluate the impact to UK businesses of not being a member of the EU and the Eurozone
Distinction between internal and external causes of change
Distinction between planned and unplanned change
Effects of change on business operations (production, equipment, products, workforce, markets)
Importance of managing change effectively
Application of J. Storey’s four approaches to managing change
Reasons for resistance to change
Methods for removing resistance to change (Lewin’s three-step process, organisational culture, leadership)
Evaluation of the management of change
Evaluation of the impact of change on stakeholders
Identification of specific business risks (e.g., natural disasters, IT failure, employee error, supply problems, economic factors, legal challenges, PR issues, product failures)
Understanding the relationship between risk likelihood and the level of investment in prevention
Distinction between insurable and uninsurable risks
Explanation of risk assessment as a preventative tool
Definition and application of contingency planning and crisis management
Evaluation of business responses to potential risks
Evaluation of the importance of risk management for stakeholders
Political: Role of government in providing a stable framework, taxation, subsidies, fiscal and monetary policy, and legislation/regulation.
Economic: Impact of economic growth (GDP), business cycle, inflation, interest rates, exchange rates, and unemployment.
Social: Impact of demographic change, consumer tastes, lifestyle, and cultural changes.
Technological: Impact of automation and communication technology on business activity.
Evaluation of the impact of these factors on businesses and their stakeholders.
Definition of business ethics and CSR
Identification of ethical issues (environment, animal rights, treatment of workers, suppliers, customers)
Analysis of the conflict between ethical objectives and profitability
Evaluation of ethical stances from different stakeholder perspectives
Knowledge of key legal areas: company law, employment/anti-discrimination, consumer protection, competition policy, health and safety, data protection, intellectual property, and minimum wage
Evaluation of the impact of legislation on businesses and stakeholders
Identification of environmental costs: pollution, climate change, congestion, waste
Explanation of control mechanisms: government intervention, pressure groups, education
Evaluation of the impact of business activity on the environment and the impact of implementing environmentally friendly policies
Definition of international trade
Reasons for international trade
Distinction between free trade and protectionism
Understanding of tariffs and quotas
Understanding of trading blocs and single markets
Evaluation of free trade and protectionism for UK businesses and stakeholders
Challenges of developing new international markets
Evaluation of the decision to develop new international markets
Definition of globalisation and global markets
Factors contributing to globalisation (communication tech, trade liberalisation, internet, transport costs, consumer tastes)
Impact of globalisation on businesses and stakeholders (competition, growth opportunities)
Strategies for global growth (global branding, external growth, target market selection)
Benefits and difficulties of operating in global markets for UK businesses
Concept of glocalisation (adapting products/marketing/practices to local needs)
Reasons for the existence of multinational companies (MNCs)
Evaluation of the decision to operate as an MNC
Evaluation of the impact of MNCs on host countries

Examiner Tips

Expert advice for maximising your marks

💡Ensure you can evaluate the impact of EU membership from the perspective of different stakeholders, not just the business itself.
💡Be prepared to discuss the implications of the single currency (Eurozone) even if the UK was not a member, as it affects trade and exchange rates.
💡Use the 'evaluate' command word to provide balanced arguments regarding the costs and benefits of EU membership or the single currency.
💡Use specific models like Lewin’s three-step process to structure your analysis of how to overcome resistance to change
💡Ensure you can link the need for change to specific external factors (e.g., legislation, technology) or internal factors (e.g., change in ownership)
💡When evaluating, always consider the impact on different stakeholder groups, not just the business owners
💡Use J. Storey’s four approaches to demonstrate depth in your analysis of change management
💡Use specific examples of risks (e.g., a cyber-attack or a supply chain disruption) to illustrate your analysis
💡When evaluating, consider the cost-benefit trade-off of preventative actions versus the potential impact of the risk
💡Ensure you link risk management strategies to the concept of business continuity
💡Distinguish clearly between preventative actions and reactive crisis management
💡Always link the PEST factor to a specific business consequence (e.g., how a rise in interest rates affects a business's cost of borrowing).
💡Use current business examples to illustrate how these factors create opportunities or threats.
💡Ensure evaluation considers both the short-term and long-term impacts on the business.
💡Remember that PEST factors are interconnected; for example, a political decision can lead to economic changes.
💡When evaluating ethical stances, always consider the perspective of different stakeholders (e.g., shareholders vs. employees vs. customers)
💡Use the 'conflict between ethics and profitability' as a central theme in evaluation questions
💡Ensure that environmental responses are linked to business strategy (e.g., how a business might use green policies to differentiate itself)
💡Focus on the impact of legislation rather than just listing the laws
💡Use specific examples of protectionist measures (tariffs/quotas) when evaluating their impact on a business's costs and competitiveness
💡When evaluating the decision to enter new international markets, always link the decision to the business's specific objectives and resources
💡Consider the perspective of different stakeholders (e.g., employees, consumers, government) when discussing the impact of trade policies
💡Use specific examples of multinational companies to support your evaluation
💡Ensure you can link globalisation to other topics like marketing mix, operations, and human resources
💡When evaluating, always consider the perspective of different stakeholders (e.g., employees, local communities, shareholders)
💡Focus on the 'why' and 'how' businesses adapt their strategies for global markets
💡Be prepared to discuss the potential conflicts between global standardisation and local adaptation

Common Mistakes

Pitfalls to avoid in your exam answers

Failing to distinguish between internal and external causes of change
Confusing planned change with unplanned change
Providing generic answers about change without applying J. Storey’s or Lewin’s models
Neglecting the impact of change on specific stakeholders
Failing to evaluate the effectiveness of change management strategies
Confusing contingency planning with general business planning
Failing to distinguish between insurable and uninsurable risks
Treating all risks as equally likely to occur
Neglecting the impact of risk management on specific stakeholders
Confusing internal factors with external PEST factors.
Listing PEST factors without explaining their specific impact on a business.
Failing to evaluate the significance of these factors on different stakeholders.
Providing generic definitions without applying them to a business context.
Confusing specific legal acts with general legal principles (learners are not expected to know specific Acts of Parliament)
Failing to link ethical or environmental decisions back to the impact on profitability or stakeholder interests
Treating environmental issues as purely negative costs without considering potential marketing or long-term strategic benefits
Providing generic answers about 'the law' without applying it to specific business contexts or stakeholder impacts
Confusing the impact of tariffs and quotas on domestic versus international producers
Failing to evaluate the specific impact on stakeholders beyond the business itself
Over-generalizing the benefits of international trade without considering the challenges of market entry
Misunderstanding the difference between a trading bloc and a single market
Confusing globalisation with international trade
Failing to distinguish between the benefits and difficulties of global operations
Providing generic answers about globalisation without applying them to specific business contexts
Overlooking the impact on stakeholders beyond just the business itself
Misunderstanding the concept of glocalisation as simply 'global marketing' rather than adaptation

Frequently Asked Questions

Common questions students ask about this topic

Likely Command Words

How questions on this topic are typically asked

Explain

Evaluate

Distinguish

Analyse

Identify

Understand

Ready to test yourself?

Practice questions tailored to this topic

Business in a Changing World

Subtopics in this area

Topic Overview

What You Need to Demonstrate

Marking Points

Examiner Tips

Common Mistakes

Frequently Asked Questions

Likely Command Words

Ready to test yourself?

Related Topics in WJEC A-Level Business

Business Analysis and Strategy

Business Analysis and Strategy

Business Analysis and Strategy

Business Opportunities and Functions

Business in a Changing World

Subtopics in this area

Topic Overview

What You Need to Demonstrate

Marking Points

Examiner Tips

Common Mistakes

Frequently Asked Questions

What is PESTLE analysis and how do I use it in an exam?

How does globalisation affect small businesses?

What is the difference between ethics and CSR?

How do I evaluate the impact of external changes on a business?

Why is stakeholder mapping important?

Can CSR actually increase profits?

Likely Command Words

Ready to test yourself?

Related Topics in WJEC A-Level Business

Business Analysis and Strategy

Business Analysis and Strategy

Business Analysis and Strategy

Business Opportunities and Functions