Copyright 2002 TecEd

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Exam Guide
The Grid
E Criteria

“identify market conditions that affect the way businesses operate”

Explanation

Given some information about the market a business is operating in, can you pick out features of the market that will make it easier or harder for the business to be successful?

The kinds of “features” you will be looking for are:

1. the type of market the business is operating in
2. the factors affecting supply and demand in the market
3. the degree of competition within the market
4. the recent changes that have taken place in the market

Assistance

As you can see, this criteria is quite closely linked to criteria E2.

In simple terms the criteria is asking you to recognise key features of the market that will alter the behaviour of a business. For example, whether the product is fashionable at the moment or whether new businesses are entering the market.