Influences on business — AQA GCSE Business
Test yourself on Influences on business with AQA GCSE practice questions.
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Influences on business explained
Business operations is the functional area that produces the goods or delivers the services a business sells.
Read the full explanation
It covers production methods, quality, stock control, suppliers, capacity and the day-to-day running of processes. Influences on business change how operations work. A rise in the minimum wage raises labour costs, so a business may automate part of production. New environmental legislation may require cleaner processes and different packaging. A supply shortage may force a business to find alternative suppliers or hold more stock. Students should explain how a named influence changes an operational decision and then trace the effect on cost, quality, speed or flexibility. Assessment rewards specific operational consequences rather than general statements that operations are affected.
Your focus
- Describe how a named influence changes an operational decision such as production method, stock control or supplier choice.
- Explain the effect of an operational change on cost, quality, speed or flexibility.
- Analyse how an operational response affects at least one other functional area of the business.
Influences on business exam tips
Marking Points
- Names a specific influence, such as new legislation, a change in costs, or a supply problem, and links it to an operational decision.
- Explains how the influence changes a production method, for example moving from labour-intensive to capital-intensive production when wage costs rise.
- Explains how the influence changes quality management, for example introducing stricter checks when customer expectations or regulations change.
- Explains how the influence changes stock control, for example holding buffer stock when suppliers become unreliable.
- Explains how the influence changes supplier relationships, for example using more than one supplier to reduce dependence on a single source.
- Explains how the influence changes capacity or lead times, for example delaying expansion when demand falls or finance is limited.
Examiner Tips
- 💡Anchor each point in a specific operational decision so the answer shows understanding rather than repeating the influence.
- 💡Use connectives such as therefore and which means that to build a chain from influence to operational effect to business consequence.
- 💡If a case study is provided, refer to its product, scale or market so the operational effect is applied rather than generic.
Common Mistakes
- Writing that operations are affected without saying how; the correction is to name the operational decision, such as production method, stock level or supplier choice, and state the change.
- Assuming all influences raise costs; the correction is to consider whether an influence creates an opportunity, such as new technology reducing unit costs or improving quality.
- Ignoring the link to other functions; the correction is to note that an operational change usually requires finance, staffing or marketing support.