Source: https://senecalearning.com/en-gb/revision-notes/a-level/business/aqa/1-3-1-external-environments [Revision notes](https://senecalearning.com/en-gb/revision-notes.md) › [A Level](https://senecalearning.com/en-gb/revision-notes/a-level.md) › [Business](https://senecalearning.com/en-gb/revision-notes/a-level/business.md) › [AQA](https://senecalearning.com/en-gb/revision-notes/a-level/business/aqa.md) › External Environments # External Environments Business: AQA A Level (2023 Specification), topic 1.3.1 ## Understanding the Impact of the External Environment The external environment covers the range of factors which may affect a business but are outside the business' control. External environmental factors can affect a business’ costs and demands. Businesses must understand the external environment factors so that they can respond to changes: ### Competition ![Competition](https://image-v2.cdn.app.senecalearning.com/courseImages/biology/4.2.1-%20Respiration/relay-race-655353_640-min.jpg) - Competition can affect a business’ costs and demands as the presence of competitors may reduce demand for a business' product or service. - The presence of a competitor can also increase business costs as a business may increase its spending on promotion and advertising or may invest in research and development to improve the products offered for sale. ### Example of the impact of competition ![Example of the impact of competition](https://image-v2.cdn.app.senecalearning.com/2018-03/7fea96c1-7ee1-4ea3-b5bb-403c05c5ad3f/shutterstock_573204253.jpg) - For example, from 2012, Tesco experienced falling demand as competition from Aldi and Lidl rose in the food retail industry. - This competition increased Tesco’s costs as it increased its promotional activity and increases its investment in developing its new range of food items, known as Stockwell & Co, which replaced its Tesco Value range. ### Market conditions ![Market conditions](https://image-v2.cdn.app.senecalearning.com/2019-01/ceb7f9f4-d53f-4476-a26f-afd54c082444/morrisons.jpg) - Market conditions can affect a business’ costs and demands. If a market is increasing in size, a business must ensure it competes against other competitors to secure its own share of the increasing market, and this increases costs. - For example, the market for online food shopping has increased in recent years and Morrisons has had to invest in its website and delivery network to maintain competitiveness otherwise the demand for Morrisons' services may fall. ### Consumer income ![Consumer income](https://image-v2.cdn.app.senecalearning.com/2019-01/668951f7-bbe3-4859-a7ff-7253290f9bc2/buy.jpg) - Consumer income can affect a business’ costs and demands. - If consumer incomes are decreasing, demand for luxury items, like watches and cars may decrease as people make decisions to stop purchasing these products. - Businesses may also invest more heavily in promotional and advertising campaigns to try and increase demand, and this also increases business costs. ### Example: The impact of consumer income ![Example: The impact of consumer income](https://image-v2.cdn.app.senecalearning.com/2018-08/b568039f-2470-4fdb-aefe-61f5d4f6964c/shopping-clothes-bags-fashion.jpg) - In the 2007-08 recession, consumer incomes fell. The demand for luxury goods and upmarket groceries fell during the time of the recession. This initially impacted food retailers like Waitrose. Many people shifted from supermarkets like Tesco and Asda to Aldi and Lidl too. - But, falling consumers incomes can benefit some businesses e.g Aldi. ## The External Environment - Other Environmental Factors External environment factors can affect a business’ costs and demands. Businesses must understand the external environment factors, so that it can respond to changes: ### Interest rates ![Interest rates](https://image-v2.cdn.app.senecalearning.com/2018-06/287ca7f7-6b72-4001-8387-f5b7e5e6d24d/interest-rate.jpg) - Interest rates can affect a business’ costs and demands as an increase in interest rates increases the cost of business’ borrowing whilst also reducing the amount spent by consumers as they make decisions to save instead of spend. - For example, an increase in the interest rate will affect a car manufacturer, such as Toyota, as consumers are less likely to take out loans to purchase new cars, which decreases demand. - If Toyota has any variable rate loans, then Toyota's business costs will rise too as they repay the loan. ### Demographic changes ![Demographic changes](https://image-v2.cdn.app.senecalearning.com/2018-08/9b6c7b46-abd2-49bd-b934-771800d899f4/globe-1340187_1920.jpg) - Demographic changes, such as an ageing population, can affect a business’ costs and demands. For example, as the UK’s population ages, there is an increase in the number of people in higher age brackets, and this increases demand for items such as holiday packages targeted at senior citizens and cruises. - As net migration continues to increase, demand for cultural shops such as Polish food stores continues to increase and this can reduce demand for groceries from existing retailers such as Asda. ### Environmental and ethical factors ![Environmental and ethical factors](https://image-v2.cdn.app.senecalearning.com/2018-09/8edf554a-4343-4695-8765-1b51a8791845/time-for-a-change-.jpg) - Environmental and ethical factors can affect a business’ costs and demands. As consumer awareness of environmental and ethical factors continues to develop, consumers are demanding products which are produced ethically and in an environmentally friendly way which increases business costs and can decrease demand if businesses fail to address changing needs. - For example, consumers are becoming increasingly aware of the issues caused by plastic production which has led cosmetics businesses to remove plastic beads from its products, which may increase costs or reduce demand. - There is also a focus on vegan foods and artificial meat businesses like Impossible Foods. ## Test yourself on External Environments - What usually happens to demand for luxury items if consumer incomes are decreasing? - How has online shopping impacted brick and mortar retail shops? - Impact of a rise in interest rates for a business - **BOL** is a food brand which produces only plant-based meals. This is due to ethical considerations. Do you think the demand for BOL increased or decreased between 2015 and 2019? [Practise this topic for free](https://app.senecalearning.com/classroom/course/609d2093-4bcc-4d5d-a0d3-3b20148430cd/section/84dcd6f5-ef75-4b26-88f1-916cbf18e3a2/session) - Previous topic: [1.2.9 A-A* (AO3/4) - Franchising at Blockbuster](https://senecalearning.com/en-gb/revision-notes/a-level/business/aqa/1-2-9-a-a-ao34-franchising-at-blockbuster.md) - Next topic: [1.3.2 A-A* (AO3/4) - Interest Rates in the UK](https://senecalearning.com/en-gb/revision-notes/a-level/business/aqa/1-3-2-a-a-ao34-interest-rates-in-the-uk.md) ## Business: AQA A Level (2023 Specification) contents ### 1 What is Business? - 1.1 Nature & Purpose of Business - [1.1.1 Why Businesses Exist](https://senecalearning.com/en-gb/revision-notes/a-level/business/aqa/1-1-1-why-businesses-exist.md) - [1.1.2 Business Aims & Objectives](https://senecalearning.com/en-gb/revision-notes/a-level/business/aqa/1-1-2-business-aims-and-objectives.md) - [1.1.3 End of Topic Test - The Nature of Business](https://senecalearning.com/en-gb/revision-notes/a-level/business/aqa/1-1-3-end-of-topic-test-the-nature-of-business.md) - 1.2 Different Business Forms - [1.2.1 Key Business Terms](https://senecalearning.com/en-gb/revision-notes/a-level/business/aqa/1-2-1-key-business-terms.md) - [1.2.2 Sole Traders](https://senecalearning.com/en-gb/revision-notes/a-level/business/aqa/1-2-2-sole-traders.md) - [1.2.3 Limited Liability](https://senecalearning.com/en-gb/revision-notes/a-level/business/aqa/1-2-3-limited-liability.md) - [1.2.4 Non-Profit Organisations & Social Enterprises](https://senecalearning.com/en-gb/revision-notes/a-level/business/aqa/1-2-4-non-profit-organisations-and-social-enterprises.md) - [1.2.5 Social Enterprises](https://senecalearning.com/en-gb/revision-notes/a-level/business/aqa/1-2-5-social-enterprises.md) - [1.2.6 Franchising](https://senecalearning.com/en-gb/revision-notes/a-level/business/aqa/1-2-6-franchising.md) - [1.2.7 Shareholders](https://senecalearning.com/en-gb/revision-notes/a-level/business/aqa/1-2-7-shareholders.md) - [1.2.8 End of Topic Test - Different Businesses](https://senecalearning.com/en-gb/revision-notes/a-level/business/aqa/1-2-8-end-of-topic-test-different-businesses.md) - [1.2.9 A-A* (AO3/4) - Franchising at Blockbuster](https://senecalearning.com/en-gb/revision-notes/a-level/business/aqa/1-2-9-a-a-ao34-franchising-at-blockbuster.md) - 1.3 Businesses Operate Within an External Environment - [1.3.1 External Environments](https://senecalearning.com/en-gb/revision-notes/a-level/business/aqa/1-3-1-external-environments.md) - [1.3.2 A-A* (AO3/4) - Interest Rates in the UK](https://senecalearning.com/en-gb/revision-notes/a-level/business/aqa/1-3-2-a-a-ao34-interest-rates-in-the-uk.md) ### 2 Managers, Leadership & Decision Making - 2.1 Management, Leadership & Decision Making - [2.1.1 Managers](https://senecalearning.com/en-gb/revision-notes/a-level/business/aqa/2-1-1-managers.md) - [2.1.2 Management Theories](https://senecalearning.com/en-gb/revision-notes/a-level/business/aqa/2-1-2-management-theories.md) - [2.1.3 Management vs Leadership](https://senecalearning.com/en-gb/revision-notes/a-level/business/aqa/2-1-3-management-vs-leadership.md) - [2.1.4 Leadership Styles](https://senecalearning.com/en-gb/revision-notes/a-level/business/aqa/2-1-4-leadership-styles.md) - [2.1.5 End of Topic Test - Management](https://senecalearning.com/en-gb/revision-notes/a-level/business/aqa/2-1-5-end-of-topic-test-management.md) - 2.2 Management Decision Making - [2.2.1 Scientific Decision Making](https://senecalearning.com/en-gb/revision-notes/a-level/business/aqa/2-2-1-scientific-decision-making.md) - [2.2.2 Influences on Decision Making](https://senecalearning.com/en-gb/revision-notes/a-level/business/aqa/2-2-2-influences-on-decision-making.md) - [2.2.3 Intuition Decision Making](https://senecalearning.com/en-gb/revision-notes/a-level/business/aqa/2-2-3-intuition-decision-making.md) - [2.2.4 A-A* (AO3/4) - Cost Leadership](https://senecalearning.com/en-gb/revision-notes/a-level/business/aqa/2-2-4-a-a-ao34-cost-leadership.md) - [2.2.5 End of Topic Test - Management Decisions](https://senecalearning.com/en-gb/revision-notes/a-level/business/aqa/2-2-5-end-of-topic-test-management-decisions.md) - 2.3 Role & Importance of Stakeholders - [2.3.1 Stakeholders](https://senecalearning.com/en-gb/revision-notes/a-level/business/aqa/2-3-1-stakeholders.md) ### 3 Marketing Management - 3.1 Setting Marketing Objectives - [3.1.1 Setting Marketing Objectives](https://senecalearning.com/en-gb/revision-notes/a-level/business/aqa/3-1-1-setting-marketing-objectives.md) - [3.1.2 Market Calculations](https://senecalearning.com/en-gb/revision-notes/a-level/business/aqa/3-1-2-market-calculations.md) - 3.2 Understanding Markets & Customers - [3.2.1 Market Research](https://senecalearning.com/en-gb/revision-notes/a-level/business/aqa/3-2-1-market-research.md) - [3.2.2 Methods of Market Research](https://senecalearning.com/en-gb/revision-notes/a-level/business/aqa/3-2-2-methods-of-market-research.md) - [3.2.3 Interpreting PED & YED](https://senecalearning.com/en-gb/revision-notes/a-level/business/aqa/3-2-3-interpreting-ped-and-yed.md) - 3.3 Segmentation, Targeting, Positioning - [3.3.1 Segmentation](https://senecalearning.com/en-gb/revision-notes/a-level/business/aqa/3-3-1-segmentation.md) - [3.3.2 Niche & Mass Markets](https://senecalearning.com/en-gb/revision-notes/a-level/business/aqa/3-3-2-niche-and-mass-markets.md) - [3.3.3 Market Mapping](https://senecalearning.com/en-gb/revision-notes/a-level/business/aqa/3-3-3-market-mapping.md) - 3.4 Using the Marketing Mix - [3.4.1 Marketing Mix](https://senecalearning.com/en-gb/revision-notes/a-level/business/aqa/3-4-1-marketing-mix.md) - [3.4.2 Pricing Decisions & Price Skimming](https://senecalearning.com/en-gb/revision-notes/a-level/business/aqa/3-4-2-pricing-decisions-and-price-skimming.md) - [3.4.3 Pricing Decisions & Price Penetration](https://senecalearning.com/en-gb/revision-notes/a-level/business/aqa/3-4-3-pricing-decisions-and-price-penetration.md) - [3.4.4 Promotional Decisions](https://senecalearning.com/en-gb/revision-notes/a-level/business/aqa/3-4-4-promotional-decisions.md) - [3.4.5 Promotional Decisions 2](https://senecalearning.com/en-gb/revision-notes/a-level/business/aqa/3-4-5-promotional-decisions-2.md) - [3.4.6 Promotional Decisions 3](https://senecalearning.com/en-gb/revision-notes/a-level/business/aqa/3-4-6-promotional-decisions-3.md) - [3.4.7 Distribution Decisions](https://senecalearning.com/en-gb/revision-notes/a-level/business/aqa/3-4-7-distribution-decisions.md) - [3.4.8 Distribution Decisions 2](https://senecalearning.com/en-gb/revision-notes/a-level/business/aqa/3-4-8-distribution-decisions-2.md) - [3.4.9 Social Media & Influencers](https://senecalearning.com/en-gb/revision-notes/a-level/business/aqa/3-4-9-social-media-and-influencers.md) - [3.4.10 Digital Marketing](https://senecalearning.com/en-gb/revision-notes/a-level/business/aqa/3-4-10-digital-marketing.md) - [3.4.11 Evaluating Digital Marketing](https://senecalearning.com/en-gb/revision-notes/a-level/business/aqa/3-4-11-evaluating-digital-marketing.md) - [3.4.12 A-A* (AO3/4) - The Marketing Mix & Promotion](https://senecalearning.com/en-gb/revision-notes/a-level/business/aqa/3-4-12-a-a-ao34-the-marketing-mix-and-promotion.md) - [3.4.13 A-A* (AO3/4) - Pricing & Competition](https://senecalearning.com/en-gb/revision-notes/a-level/business/aqa/3-4-13-a-a-ao34-pricing-and-competition.md) ### 4 Operational Management - 4.1 Setting Operational Objectives - [4.1.1 Setting Operational Objectives](https://senecalearning.com/en-gb/revision-notes/a-level/business/aqa/4-1-1-setting-operational-objectives.md) - 4.2 Analysing Operational Performance - [4.2.1 Operations Data](https://senecalearning.com/en-gb/revision-notes/a-level/business/aqa/4-2-1-operations-data.md) - [4.2.2 Capacity](https://senecalearning.com/en-gb/revision-notes/a-level/business/aqa/4-2-2-capacity.md) - [4.2.3 A-A* (AO3/4) - The Problem with Operations Data](https://senecalearning.com/en-gb/revision-notes/a-level/business/aqa/4-2-3-a-a-ao34-the-problem-with-operations-data.md) - 4.3 Increasing Efficiency & Productivity - [4.3.1 Productivity & Efficiency](https://senecalearning.com/en-gb/revision-notes/a-level/business/aqa/4-3-1-productivity-and-efficiency.md) - [4.3.2 Lean Production](https://senecalearning.com/en-gb/revision-notes/a-level/business/aqa/4-3-2-lean-production.md) - [4.3.3 Technology & Efficiency](https://senecalearning.com/en-gb/revision-notes/a-level/business/aqa/4-3-3-technology-and-efficiency.md) - [4.3.4 A-A* (AO3/4) - Toyota Production System](https://senecalearning.com/en-gb/revision-notes/a-level/business/aqa/4-3-4-a-a-ao34-toyota-production-system.md) - 4.4 Improving Quality - [4.4.1 Measuring & Identifying Quality](https://senecalearning.com/en-gb/revision-notes/a-level/business/aqa/4-4-1-measuring-and-identifying-quality.md) - [4.4.2 Total Quality Management](https://senecalearning.com/en-gb/revision-notes/a-level/business/aqa/4-4-2-total-quality-management.md) - [4.4.3 Evaluating Total Quality Management](https://senecalearning.com/en-gb/revision-notes/a-level/business/aqa/4-4-3-evaluating-total-quality-management.md) - [4.4.4 Quality Assurance & Quality Control](https://senecalearning.com/en-gb/revision-notes/a-level/business/aqa/4-4-4-quality-assurance-and-quality-control.md) - 4.5 Managing Inventory & Supply Chains - [4.5.1 Inventory](https://senecalearning.com/en-gb/revision-notes/a-level/business/aqa/4-5-1-inventory.md) - [4.5.2 Improving the Supply Chain](https://senecalearning.com/en-gb/revision-notes/a-level/business/aqa/4-5-2-improving-the-supply-chain.md) - [4.5.3 Outsourcing](https://senecalearning.com/en-gb/revision-notes/a-level/business/aqa/4-5-3-outsourcing.md) - 4.6 Business & The External Environment - [4.6.1 Business Considerations from Globalisation](https://senecalearning.com/en-gb/revision-notes/a-level/business/aqa/4-6-1-business-considerations-from-globalisation.md) ### 5 Financial Management - 5.1 Setting Financial Objectives - [5.1.1 Setting Financial Objectives](https://senecalearning.com/en-gb/revision-notes/a-level/business/aqa/5-1-1-setting-financial-objectives.md) - [5.1.2 Influences on Financial Objectives](https://senecalearning.com/en-gb/revision-notes/a-level/business/aqa/5-1-2-influences-on-financial-objectives.md) - [5.1.3 Profit](https://senecalearning.com/en-gb/revision-notes/a-level/business/aqa/5-1-3-profit.md) - [5.1.4 Revenue & Costs](https://senecalearning.com/en-gb/revision-notes/a-level/business/aqa/5-1-4-revenue-and-costs.md) - [5.1.5 Cash-Flow & Budgets](https://senecalearning.com/en-gb/revision-notes/a-level/business/aqa/5-1-5-cash-flow-and-budgets.md) - 5.2 Analysing Financial Performance - [5.2.1 Break-Even & Profitability Analysis](https://senecalearning.com/en-gb/revision-notes/a-level/business/aqa/5-2-1-break-even-and-profitability-analysis.md) - [5.2.2 A-A* (AO3/4) - Assessing Financial Performance](https://senecalearning.com/en-gb/revision-notes/a-level/business/aqa/5-2-2-a-a-ao34-assessing-financial-performance.md) - 5.3 Sources of Finance - [5.3.1 Internal Sources of Finance](https://senecalearning.com/en-gb/revision-notes/a-level/business/aqa/5-3-1-internal-sources-of-finance.md) - [5.3.2 External Sources of Finance](https://senecalearning.com/en-gb/revision-notes/a-level/business/aqa/5-3-2-external-sources-of-finance.md) - [5.3.3 Crowdfunding](https://senecalearning.com/en-gb/revision-notes/a-level/business/aqa/5-3-3-crowdfunding.md) - [5.3.4 Factors for Financing](https://senecalearning.com/en-gb/revision-notes/a-level/business/aqa/5-3-4-factors-for-financing.md) - [5.3.5 A/A* (AO3/4) - Debt](https://senecalearning.com/en-gb/revision-notes/a-level/business/aqa/5-3-5-aa-ao34-debt.md) - 5.4 Improving Cash Flow & Profits - [5.4.1 Improving Cash Flow & Profits](https://senecalearning.com/en-gb/revision-notes/a-level/business/aqa/5-4-1-improving-cash-flow-and-profits.md) ### 6 Human Resource Management - 6.1 Setting Human Resource Objectives - [6.1.1 Setting Human Resource Objectives](https://senecalearning.com/en-gb/revision-notes/a-level/business/aqa/6-1-1-setting-human-resource-objectives.md) - [6.1.2 Human Resource Management](https://senecalearning.com/en-gb/revision-notes/a-level/business/aqa/6-1-2-human-resource-management.md) - 6.2 Analysing Human Resource Performance - [6.2.1 Analysing Human Resource Performance](https://senecalearning.com/en-gb/revision-notes/a-level/business/aqa/6-2-1-analysing-human-resource-performance.md) - [6.2.2 Analysing Human Resource Performance 2](https://senecalearning.com/en-gb/revision-notes/a-level/business/aqa/6-2-2-analysing-human-resource-performance-2.md) - 6.3 Improving Org Design & Human Resource Flow - [6.3.1 Organisational Design](https://senecalearning.com/en-gb/revision-notes/a-level/business/aqa/6-3-1-organisational-design.md) - [6.3.2 Human Resource Flow](https://senecalearning.com/en-gb/revision-notes/a-level/business/aqa/6-3-2-human-resource-flow.md) - 6.4 Improving Motivation & Engagement - [6.4.1 Motivating & Engaging Employees](https://senecalearning.com/en-gb/revision-notes/a-level/business/aqa/6-4-1-motivating-and-engaging-employees.md) - [6.4.2 Different Incentives](https://senecalearning.com/en-gb/revision-notes/a-level/business/aqa/6-4-2-different-incentives.md) - [6.4.3 Evaluating Incentives](https://senecalearning.com/en-gb/revision-notes/a-level/business/aqa/6-4-3-evaluating-incentives.md) - [6.4.4 Taylor's Theory](https://senecalearning.com/en-gb/revision-notes/a-level/business/aqa/6-4-4-taylors-theory.md) - [6.4.5 Maslow's Theory](https://senecalearning.com/en-gb/revision-notes/a-level/business/aqa/6-4-5-maslows-theory.md) - [6.4.6 Herzberg's Theory](https://senecalearning.com/en-gb/revision-notes/a-level/business/aqa/6-4-6-herzbergs-theory.md) - [6.4.7 A-A* (AO3/4) - Amazon & Netflix Org Design](https://senecalearning.com/en-gb/revision-notes/a-level/business/aqa/6-4-7-a-a-ao34-amazon-and-netflix-org-design.md) - [6.4.8 A-A* (AO3/4) - Taylorism & Jack Welch](https://senecalearning.com/en-gb/revision-notes/a-level/business/aqa/6-4-8-a-a-ao34-taylorism-and-jack-welch.md) - 6.5 Improving Employer-Employee Relations - [6.5.1 Improving Employer-Employee Relations](https://senecalearning.com/en-gb/revision-notes/a-level/business/aqa/6-5-1-improving-employer-employee-relations.md) ### 7 Strategic Position of a Business (A Level Only) - 7.1 Mission, Objectives, Strategy - [7.1.1 Business Mission & Corporate Objective](https://senecalearning.com/en-gb/revision-notes/a-level/business/aqa/7-1-1-business-mission-and-corporate-objective.md) - [7.1.2 Mission, Corporate Objectives & Strategy](https://senecalearning.com/en-gb/revision-notes/a-level/business/aqa/7-1-2-mission-corporate-objectives-and-strategy.md) - [7.1.3 SWOT Analysis](https://senecalearning.com/en-gb/revision-notes/a-level/business/aqa/7-1-3-swot-analysis.md) - [7.1.4 A-A* (AO3/4) - SWOT Analysis](https://senecalearning.com/en-gb/revision-notes/a-level/business/aqa/7-1-4-a-a-ao34-swot-analysis.md) - 7.2 Financial Ratio Analysis - [7.2.1 Financial Ratios](https://senecalearning.com/en-gb/revision-notes/a-level/business/aqa/7-2-1-financial-ratios.md) - 7.3 Assessing Overall Performance - [7.3.1 Non-Financial Data](https://senecalearning.com/en-gb/revision-notes/a-level/business/aqa/7-3-1-non-financial-data.md) - [7.3.2 Core Competences](https://senecalearning.com/en-gb/revision-notes/a-level/business/aqa/7-3-2-core-competences.md) - [7.3.3 Assessing Business Performance](https://senecalearning.com/en-gb/revision-notes/a-level/business/aqa/7-3-3-assessing-business-performance.md) - 7.4 Assessing Political & Legal Change - [7.4.1 Political & Legal Change](https://senecalearning.com/en-gb/revision-notes/a-level/business/aqa/7-4-1-political-and-legal-change.md) - 7.5 Assessing Economic Change - [7.5.1 Economic Environment](https://senecalearning.com/en-gb/revision-notes/a-level/business/aqa/7-5-1-economic-environment.md) - 7.6 Assessing Social & Technological Change - [7.6.1 Social & Technological Environment](https://senecalearning.com/en-gb/revision-notes/a-level/business/aqa/7-6-1-social-and-technological-environment.md) - [7.6.2 Lifestyle & Technological Environment](https://senecalearning.com/en-gb/revision-notes/a-level/business/aqa/7-6-2-lifestyle-and-technological-environment.md) - [7.6.3 Corporate Social Responsibility](https://senecalearning.com/en-gb/revision-notes/a-level/business/aqa/7-6-3-corporate-social-responsibility.md) - 7.7 The Competitive Environment - [7.7.1 Choosing Areas of Competition](https://senecalearning.com/en-gb/revision-notes/a-level/business/aqa/7-7-1-choosing-areas-of-competition.md) - [7.7.2 Choosing How to Compete](https://senecalearning.com/en-gb/revision-notes/a-level/business/aqa/7-7-2-choosing-how-to-compete.md) - 7.8 Investment Appraisal - [7.8.1 Investment Appraisal](https://senecalearning.com/en-gb/revision-notes/a-level/business/aqa/7-8-1-investment-appraisal.md) ### 8 Choosing Strategic Direction (A Level Only) - 8.1 Markets to Compete & Products to Offer - [8.1.1 Product Decisions](https://senecalearning.com/en-gb/revision-notes/a-level/business/aqa/8-1-1-product-decisions.md) - 8.2 How to Compete - [8.2.1 Porter's Five Forces](https://senecalearning.com/en-gb/revision-notes/a-level/business/aqa/8-2-1-porters-five-forces.md) - [8.2.2 A-A* (AO3/4) - The 5 Forces](https://senecalearning.com/en-gb/revision-notes/a-level/business/aqa/8-2-2-a-a-ao34-the-5-forces.md) ### 9 Pursuing Strategies (A Level Only) - 9.1 Assessing a Change in Scale - [9.1.1 Growth & Retrenchment](https://senecalearning.com/en-gb/revision-notes/a-level/business/aqa/9-1-1-growth-and-retrenchment.md) - [9.1.2 Challenges of Growth](https://senecalearning.com/en-gb/revision-notes/a-level/business/aqa/9-1-2-challenges-of-growth.md) - [9.1.3 Sourcing Resources & Entering Markets](https://senecalearning.com/en-gb/revision-notes/a-level/business/aqa/9-1-3-sourcing-resources-and-entering-markets.md) - [9.1.4 A-A* (AO3/4) - Diversification](https://senecalearning.com/en-gb/revision-notes/a-level/business/aqa/9-1-4-a-a-ao34-diversification.md) - [9.1.5 A-A* (AO3/4) - Diseconomies of Scale](https://senecalearning.com/en-gb/revision-notes/a-level/business/aqa/9-1-5-a-a-ao34-diseconomies-of-scale.md) - 9.2 Assessing Innovation - [9.2.1 Assessing Innovation](https://senecalearning.com/en-gb/revision-notes/a-level/business/aqa/9-2-1-assessing-innovation.md) - 9.3 Globalisation & Internationalisation - [9.3.1 Internationalisation](https://senecalearning.com/en-gb/revision-notes/a-level/business/aqa/9-3-1-internationalisation.md) - [9.3.2 Managing Internationalisation](https://senecalearning.com/en-gb/revision-notes/a-level/business/aqa/9-3-2-managing-internationalisation.md) - [9.3.3 Impact of Internationalisation](https://senecalearning.com/en-gb/revision-notes/a-level/business/aqa/9-3-3-impact-of-internationalisation.md) - [9.3.4 A-A* (AO3/4) - Internationalisation in Guatemala](https://senecalearning.com/en-gb/revision-notes/a-level/business/aqa/9-3-4-a-a-ao34-internationalisation-in-guatemala.md) - 9.4 Greater Use of Digital Technology - [9.4.1 Assessing Use of Digital Technology](https://senecalearning.com/en-gb/revision-notes/a-level/business/aqa/9-4-1-assessing-use-of-digital-technology.md) - [9.4.2 Impact of Digital Technology](https://senecalearning.com/en-gb/revision-notes/a-level/business/aqa/9-4-2-impact-of-digital-technology.md) ### 10 Managing Strategic Change - 10.1 Managing Change - [10.1.1 Managing Change](https://senecalearning.com/en-gb/revision-notes/a-level/business/aqa/10-1-1-managing-change.md) - 10.2 Managing Organisational Culture - [10.2.1 Managing Organisational Culture](https://senecalearning.com/en-gb/revision-notes/a-level/business/aqa/10-2-1-managing-organisational-culture.md) - [10.2.2 Organisational Structures](https://senecalearning.com/en-gb/revision-notes/a-level/business/aqa/10-2-2-organisational-structures.md) - 10.3 Managing Strategic Implementation - [10.3.1 Managing Strategic Implementation](https://senecalearning.com/en-gb/revision-notes/a-level/business/aqa/10-3-1-managing-strategic-implementation.md) - 10.4 Problems with Strategy & Why They Fail - [10.4.1 Problems with Strategy](https://senecalearning.com/en-gb/revision-notes/a-level/business/aqa/10-4-1-problems-with-strategy.md)