Copyright 2002 TecEd

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Exam Guide
The Grid
C Criteria

“analyse how changes in market conditions might affect businesses and stakeholders”

Linked to:

As this criteria actually has two bits to it - business and stakeholders - it’s linked to two E criteria:

• Businesses - E3:
  looking at how changes in the market might affect the performance of a business
• Stakeholders - E5:
  looking at how changes in the market might affect the welfare of stakeholders

Assistance

In each case you are being asked to explain the impact on business or the stakeholder, so you are required to analyse the situations. You need to give a logical explanation of how a change in the market brings about consequences for the business or one of its stakeholders.

As always, the best way of practicing these “logical arguments” is to look at real world changes in market conditions (e.g. a change in customer tastes) and how they have affected the performance of a business (e.g. a fall in profits) or impacted on the stakeholder (e.g. a fall in the value of shares). However you must always fully explain this.