Key term
Eduqas A-Level Business A510QS
Enterprise, Business Plans and Location
Topic overviewEnterprise, entrepreneurs and SMEsNeeds, wants and spotting a business opportunityThe role of the entrepreneur in setting up and running a businessFinancial and non-financial motives of entrepreneursCharacteristics and skills of entrepreneursEntrepreneurs, SMEs and the sectors of the UK economyStakeholders and their interestsBusiness plans and sources of adviceChoosing a business location
Markets, Demand and Market Research
Topic overviewMarkets and competitionTypes of marketMarket size, market share and market trendsMarket segmentationMarket structures and degrees of competitionConsumer protectionDemand and the factors that shift itSupply and the factors that shift itEquilibrium price and shifts in the marketPrice and income elasticity of demandPrimary and secondary market researchQualitative and quantitative dataSampling and bias in market research
Business Structure and Sources of Finance
Topic overviewThe private sector and the public sectorAims of private sector businessesSole traders and partnershipsPrivate and public limited companiesUnlimited and limited liabilityChoosing a legal structureNot-for-profit organisationsInternal and personal sources of start-up financeBorrowing, equity and grants for a small business
Revenue, Costs and Break-Even
Topic overviewRevenue, costs and profitFixed, variable and semi-variable costsDirect costs, indirect costs and overheadsCalculating revenue, costs and profitContribution and its usesCalculating the break-even pointBreak-even charts and the margin of safetyWhat-if analysis of changes in costs and revenueThe usefulness and limits of break-even
Marketing and the Marketing Mix
Topic overviewThe purpose of marketing and market orientationThe marketing mix and the four PsProduct, brand, USP and differentiationThe product life cycleExtension strategiesThe product life cycle and cash flowThe Boston matrixPricing strategiesChoosing the right pricing strategyPromotion above the line and below the linePlace and distribution channelsThe marketing mix in different contextsNew technology in marketing
Financial Planning and Accounts
Topic overviewThe role of the finance departmentBudgets and the purpose of budgetingThe benefits and drawbacks of budgetsInternal sources of financeExternal sources of financeChoosing the right source of financeCash flow and cash flow forecastsConstructing and interpreting a cash flow forecastCash flow problems and how to improve cash flowThe income statement, gross profit and net profitGross and net profit margins
People in Organisations
Topic overviewThe role of the human resource departmentThe flexible workforceNew technology and changing working patternsWorkforce planningThe recruitment process, job analysis and job descriptionsInternal and external recruitmentMethods of selecting employeesMethods of trainingThe value of training to a businessAppraisal and its methodsMeasuring workforce performanceOrganisational structures and the chain of commandDelegation, empowerment and delayering
Motivation, Management and Employee Relations
Topic overviewMotivation and the benefits of a motivated workforceTaylor and scientific managementMayo and the Hawthorne studiesMaslow's hierarchy of needsHerzberg's two factor theoryExpectancy theories of Vroom, Porter and LawlerFinancial methods of motivationNon-financial methods of motivationManagement, management by objectives and Theory X and YLeadership and leadership stylesLeadership theories and choosing a styleEmployment rights, contracts and equal opportunitiesTrade unions, industrial conflict and dispute resolution
Operations Management
Topic overviewOperations management and added valueJob, batch and flow productionProductivity and how to raise itCapacity utilisationTechnology in operations: IT, CAD, CAM and roboticsLean production, kaizen and just-in-timeQuality control and quality assuranceTotal quality managementPurchasing, suppliers and methods of stock controlStock control diagrams and stock levelsInnovation, research and developmentInternal and external economies of scaleDiseconomies of scale and the survival of small firms
Data and Market Analysis
Topic overviewPresenting and interpreting business dataIndex numbers and comparing figures over timeCalculating price elasticity of demandInterpreting price elasticity and its effect on revenueIncome elasticity of demandSales forecasting and the reliability of a forecastMoving averages and time-series analysisCorrelation, scatter graphs and extrapolationQualitative forecasting techniques
Analysing Business Performance
Topic overviewBudget variances and how to calculate themAnalysing and evaluating budget variancesThe balance sheet and how it is constructedWorking capital, capital employed and depreciationLiquidity ratios: the current ratio and the acid testReturn on capital employed and gearingComparing accounts over time and between businessesEvaluating the financial position of a businessNon-financial measures of performance and vision statements
Aims, Objectives and Strategy
Topic overviewAims, objectives and SMART targetsMission and vision statementsStrategy, tactics and corporate plansSWOT analysisPorter's Five ForcesThe Ansoff matrixOrganic growthExternal growth: mergers and takeoversHorizontal and vertical integrationFranchising as a method of growthRationalisation and relocationOutsourcing production
Decision-Making and Investment Appraisal
Topic overviewTypes of business decisionScientific and intuitive decision-makingDecision trees: constructing and calculatingEvaluating decision tree analysisCritical path analysis: building the networkInterpreting and evaluating critical path analysisCost benefit analysisPayback and the average rate of returnDiscounted cash flow and net present valueChoosing between investmentsSpecial orders
Change and Risk Management
Topic overviewCauses of change in a businessInternal and external causes of changePlanned and unplanned changeEffects of change on a businessManaging change and Storey's four approachesResistance to change and how it is overcomeEvaluating change and its impact on stakeholdersTypes of risk a business facesRisk assessment, prevention and insuranceContingency planning and crisis management
PEST Factors and the External Environment
Topic overviewPolitical factors and the role of governmentTaxation and subsidiesFiscal and monetary policyEconomic growth, GDP and the business cycleInflation and how it is measuredInterest rates and exchange ratesUnemploymentDemographic changeSocial and cultural changeTechnological factors and automation
Ethical, Legal and Environmental Factors
Topic overviewBusiness ethics and ethical objectivesEthical issues facing a businessCorporate social responsibilityEthics, profitability and stakeholder viewsCompany law, intellectual property and pay lawEmployment, discrimination and health and safety lawConsumer, competition and data protection lawEnvironmental costs of business activityControlling environmental costs and business responses
International Trade, Globalisation and the European Union
Topic overviewInternational trade and why it happensFree trade and protectionismTrading blocs and the single marketEntering new international marketsGlobalisation and its causesThe effects of globalisation on businessStrategies for global growthGlocalisation and adapting to local marketsMultinational companiesThe European Union and the single European marketThe euro, the Eurozone and membership
PEST Factors and the External Environment
- 10 subtopics
- 30 things to know
- Component 3
What PEST Factors and the External Environment covers
PEST Factors and the External Environment is examined in Component 3, Business in a Changing World. It covers political factors and the role of government, taxation and subsidies, fiscal and monetary policy, economic growth, GDP and the business cycle, inflation and how it is measured, interest rates and exchange rates, unemployment, demographic change, social and cultural change and technological factors and automation.
The 10 subtopics
Each one has its own page.
- Political factors and the role of governmentTaxation, regulation, public spending and political stability, what PEST scans for, and how a change of policy reaches a business's costs and its market.Open →
- Taxation and subsidiesDirect and indirect taxes, corporation tax and VAT, and how a subsidy changes what a business can afford to charge — with the rates dated where they are stated at all.Open →
- Fiscal and monetary policyFiscal policy, budget deficit and monetary policy.Open →
- Economic growth, GDP and the business cycleEconomic growth, gross domestic product and real and nominal GDP.Open →
- Inflation and how it is measuredCPI basket, consumer Prices Index and the Retail Prices Index and demand-pull inflation.Open →
- Interest rates and exchange ratesInterest rate, bank Rate and exchange rate.Open →
- UnemploymentCyclical unemployment, structural unemployment and frictional unemployment.Open →
- Demographic changeDemographic change, ageing population and dependency ratio.Open →
- Social and cultural changeSocial factors in a PEST analysis, change in consumer tastes that has reshaped a market and lifestyle change.Open →
- Technological factors and automationTechnological factors in a PEST analysis, communication technology and research and development.Open →
What you need to know
Answer each one before you reveal it.
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What are political factors, and what does PEST stand for?
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What is a direct tax?
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What is meant by fiscal policy?
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What is meant by economic growth?
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What is meant by inflation?
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What is meant by unemployment?
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What is meant by demographic change?
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What is meant by social factors in a PEST analysis?
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What is meant by technological factors in a PEST analysis?
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What is meant by political factors in a PEST analysis?
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What is an indirect tax?
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What is expansionary fiscal policy?
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What is gross domestic product?
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How is inflation measured in the United Kingdom?
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What is meant by an interest rate?
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How is unemployment measured in the United Kingdom?
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What is meant by an ageing population?
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Give two examples of a change in consumer tastes that has reshaped a market.
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What is automation?
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What does the acronym PEST stand for?
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How does corporation tax affect a business?
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What is contractionary fiscal policy, and how does it affect business?
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Distinguish between real and nominal GDP.
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What is the CPI basket, and how is it kept relevant?
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What is Bank Rate?
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Why do the two measures of unemployment give different figures?
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Give two causes of an ageing population in the United Kingdom.
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What is meant by a lifestyle change, and how does it affect business?
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Give three benefits of automation to a business.
Take PEST Factors and the External Environment further
The same content, four other ways.
Questions from this topic
Each one with the model answer underneath.
- 1
What is meant by political factors in a PEST analysis?
Model answer
Political factors are the actions of government and the political climate that shape how a business can operate. Taxation, regulation, public spending and political stability are the main examples.
- 2
What does the acronym PEST stand for?
Model answer
PEST stands for political, economic, social and technological factors. A PEST analysis scans each of the four for the threats and opportunities they create.
- 3
Why does a business need political stability?
Model answer
Investment commits money for years, so owners need confidence that laws and taxes will not change unpredictably. Political instability raises the return a business demands before it will invest.
- 4
Give three ways in which government provides a stable framework for business.
Model answer
Government enforces contracts through the courts so that agreements can be relied upon. Government also maintains law and order and supports a stable currency and banking system.
- 5
How does the provision of infrastructure by government help business?
Model answer
Roads, railways, ports and broadband lower the cost of moving goods, staff and information. Businesses in poorly served areas face higher transport and communication costs.
- 6
How does state education and training affect business?
Model answer
State-funded education supplies businesses with a workforce that can read, calculate and be trained. Firms then spend less on basic training and can adopt more advanced technology.
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PEST Factors and the External Environment revision questions
- What does PEST Factors and the External Environment cover in Eduqas A-Level Business?
- 10 subtopics: political factors and the role of government, taxation and subsidies, fiscal and monetary policy, economic growth, gdp and the business cycle, inflation and how it is measured, interest rates and exchange rates, unemployment, demographic change, social and cultural change and technological factors and automation. Each one has its own page with questions and model answers.
- How is PEST Factors and the External Environment organised?
- By the Eduqas A510QS specification, subtopic by subtopic, so it matches the order you are taught it in.
Every question in PEST Factors and the External Environment, on a schedule.
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