Clarification details
Updated December 2019. This document has been updated to address new issues that arose from moderation.
Context
Students are required to choose a specific business and explain at least two influences that could impact business viability. For example, a student could explain the potential for a proposed government policy to damage brand reputation, market share and profits of the business.
As an example of a specific business, the student could refer to a local veterinary practice or case study of a farm or another type of business, rather than examine a whole industry sector.
The viability of a business is measured by its long-term survival and its ability to sustain profits over a period.
The influences could be actual ones experienced by the business, or could be theoretical. They may be positive, causing the business to consider opportunities to enhance viability, or negative, representing threats to viability. Influences might include the increasing demand for traceability of products, the use of robotic technology, technological disruptions, animal welfare, biosecurity, and volubility of business income.
Students need to focus on the future proofing influences rather than on solutions that could mitigate the influences. For example, the context might be proposed new environmental regulations that will come into effect in three years. These regulations, and how they could impact viability of the business, would need to be explained.
Merit and Excellence
At Merit, the student would explain in detail how at least two influences impact or have the potential to affect the business in the near and long-term future. A thorough explanation could cover how the influences might impact resourcing, including staffing, production and profitability.
Excellence involves predicting then evaluating the short and long-term impacts of the influences on the business, as well as impacts on external parties such as consumers, the local community, other businesses etc. The consequences of these impacts should also be evaluated.
In discussing short and long-term impacts of the influences on the business, a student needs to consider impacts and consequences on the business and on external parties. This will enable the student to make a judgement on how well the short and long-term impacts of the influences ensure the continuity of the business.