Key term
OCR GCSE Business J204
Business Activity
Marketing
People
Operations
Finance
Influences on Business
- 4 subtopics
- 12 things to know
- Component 02
What Influences on Business covers
Influences on Business is examined in Component 02, Business 2: operations, finance and influences on business. It covers ethical and environmental considerations, the economic climate, globalisation and multinational companies and international branding and competition.
Where it is assessed
Component 02
Business 2: operations, finance and influences on business, 1 hour 30 minutes and 50% of the GCSE.
Check the OCR specification ↗The 4 subtopics
Each one has its own page.
- Ethical and environmental considerationsEthical treatment of workers, suppliers and customers, ethical sourcing and Fairtrade, unethical marketing, sustainability, waste, pollution, climate change, carbon footprints and pressure groups.Open →
- The economic climateConsumer and disposable income, how rising and falling incomes affect different businesses, unemployment, recession, interest rates and inflation, and a worked fall in sales.Open →
- Globalisation and multinational companiesWhat has driven globalisation, multinational companies and why they locate abroad, moving call centres overseas or bringing production home, and the threats and opportunities for UK businesses.Open →
- International branding and competitionInternational brands and adapting them for other countries, competing abroad on price and on other factors, e-commerce, exporting and importing, tariffs, and the value of the pound.Open →
What you need to know
Answer each one before you reveal it.
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What does ethical treatment of workers look like in a business?
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How can a business treat its suppliers and customers ethically?
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What has driven globalisation?
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What is an international brand?
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What is meant by the economic climate?
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Define globalisation.
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What are the benefits of an international brand to a business?
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What does it mean for a business to act ethically?
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What is consumer income, and what is disposable income?
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Define the term multinational company.
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Why might a business adapt its brand or products for different countries?
Take Influences on Business further
The same content, four other ways.
Commonly confused
Pairs that lose marks when they are blurred together.
Fairtrade vs Ethical sourcing
Fairtrade: a certification guaranteeing developing-country producers a minimum price and a premium. Ethical sourcing: buying materials only from suppliers that treat people and the planet fairly.
Sustainability vs Carbon footprint
Sustainability: meeting present needs without harming the prospects of future generations. Carbon footprint: the total greenhouse gas emissions an organisation causes.
Consumer income vs Disposable income
Consumer income: all the money households receive from wages, pensions and benefits. Disposable income: money left to spend once tax has been deducted.
Questions from this topic
Each one with the model answer underneath.
- 1
What does it mean for a business to act ethically?
Model answer
An ethical business does what is morally right, not just what is legal or most profitable. An ethical business treats workers, suppliers and customers fairly.
- 2
How can a business treat its workers ethically?
Model answer
An ethical employer pays a fair wage, provides safe working conditions and treats staff with respect. Some employers choose to pay the voluntary Real Living Wage, set above the legal minimum.
- 3
How can a business treat its suppliers ethically?
Model answer
An ethical business pays suppliers a fair price and pays on time. A large buyer does not use its power to force small suppliers into unfair terms.
- 4
How can a business treat its customers ethically?
Model answer
An ethical business sells safe products at honest prices, with clear information. An ethical business does not mislead customers or exploit vulnerable groups.
- 5
What is ethical sourcing of materials?
Model answer
Ethical sourcing means buying materials from suppliers that treat workers fairly and do not harm the environment. A business checks its supply chain for child labour and unsafe factories.
- 6
What is Fairtrade, and why do some businesses sell Fairtrade products?
Model answer
Fairtrade guarantees producers in developing countries a minimum price and an extra premium for community projects. Fairtrade products show customers that a business sources ethically.
What is inside Levo
Six ways to work the same material.
Influences on Business revision questions
- What does Influences on Business cover in OCR GCSE Business?
- 4 subtopics: ethical and environmental considerations, the economic climate, globalisation and multinational companies and international branding and competition. Each one has its own page with questions and model answers.
- How is Influences on Business organised?
- By the OCR J204 specification, subtopic by subtopic, so it matches the order you are taught it in.
Every question in Influences on Business, on a schedule.
Attempt a question from memory, write the correct version, then attempt it again. Levo records the jump between your first attempt and your last, and brings each question back on the day you are due to forget it.
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