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Paper 1
Influences on Business
Both
Stakeholder needs influence business decisions.
Key Facts
- Stakeholder interests can overlap or conflict.
- Ethical operations can increase costs short term.
- Location decisions affect costs and access to markets.
Topics Covered
Stakeholders
What you need to know
- •Different stakeholders have different priorities.
- •Conflicts can occur between profit and ethics.
Exam Tips
- Explain both sides of a stakeholder conflict.
Ethics and the Environment
What you need to know
- •Ethical decisions can build reputation and trust.
- •Environmental impact affects brand perception.
Exam Tips
- Link ethical choices to long-term success.
Location Factors
What you need to know
- •Consider labour, suppliers, transport, and customers.
- •Online businesses reduce location constraints.
Exam Tips
- Apply factors to the case study context.
Key Terms
ethics
Moral principles guiding business decisions.
sustainability
Operating without damaging future resources.
stakeholder conflict
When stakeholders want different outcomes.
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Common Exam Questions
Explain one conflict between shareholders and employees.
3 markseasyPaper 1
Model Answer
Shareholders want higher profits, while employees may want higher wages.
What examiners want to see
- ✓Conflict explained
- ✓Link to priorities
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