External Factors (Edexcel IGCSE Business): Exam Questions

Greenfield Foods is a large food manufacturing company based in the UK. The Managing Director believes that the business has a responsibility to the local community.

Greenfield Foods provides apprenticeship programmes for young people in the area and pays all its workers above the minimum wage. The company also donates a percentage of its profits to local charities and sponsors community events. Greenfield Foods sources many of its ingredients from local farmers, supporting small businesses in the region.

The Managing Director uses regular staff meetings to communicate these social objectives to employees.

Kraft Heinz has set itself many targets to reach before 2025. These include reducing its impact on the environment and improving its use of robotic technology for production. It is hoped that these targets will lower the impact Kraft Heinz production has on the environment by reducing its waste and greenhouse gases that contribute to global warming.

Figure 2 shows the amount of waste to landfill for Kraft Heinz from 2019 to 2021.

Figure 2

The Better Toy Store (TBTS) is a children’s toy shop. TBTS has three shops in Singapore. Two of the shops are located in busy shopping malls and the third is located at the Jewel Changi Airport. TBTS has a website for customers looking to buy toys online.

TBTS selects toys to sell that are excellent for play, value, design and quality. All TBTS toys are environmentally friendly.

Saving the environment in which we all live is important. The Chairman ensures that Emirates works hard to recycle many of the materials it uses and to reduce atmospheric pollution from the fuel that powers its aircraft. Water consumption for washing aircraft has been reduced, newspapers and other paper products collected from Emirates aircraft cabins are recycled. Emirates uses a variety of methods to monitor its employees when carrying out these jobs. For these roles Emirates uses a short chain of command.

Emirates used 13,457,776 litres of petrol in 2016–2017. In 2017–2018 it reduced this figure by 12.5%.

Saving the environment in which we all live is important. The Chairman ensures that Emirates works hard to recycle many of the materials it uses and to reduce atmospheric pollution from the fuel that powers its aircraft. Water consumption for washing aircraft has been reduced, newspapers and other paper products collected from Emirates aircraft cabins are recycled. Emirates uses a variety of methods to monitor its employees when carrying out these jobs. For these roles Emirates uses a short chain of command.

Coral is a small diving school based on the coast of Zanzibar, Tanzania. It was set up eight years ago by Amina and employs six instructors. The business offers diving courses and snorkelling trips for tourists visiting the island. Coral has built a strong reputation through positive reviews on travel websites and word of mouth.

In recent years, Amina has noticed two significant changes. Rising sea temperatures have caused coral reef damage around Zanzibar, reducing the quality of the diving experience. At the same time, the growth of social media has made it easier for Coral to reach potential customers worldwide, and online bookings have increased by 40% over the past two years.

Grove is a small olive oil producer based on the island of Crete, Greece. The owner, Nikos, employs 15 workers and sells bottled olive oil to supermarkets across Europe. Grove has won several awards for the quality of its oil.

In recent years, Nikos has faced two significant external challenges. Increasingly hot and dry summers caused by climate change have reduced olive harvests by 30% over the past three years. At the same time, a growing social trend towards plant-based diets and healthy cooking has increased demand for high-quality olive oil across Europe.

BrightWave is a small solar panel manufacturer based in Manchester, UK. The owner, Verna, employs 20 workers and sells solar panels to construction firms and housing developers across the UK. BrightWave has built a strong reputation for producing reliable, high-efficiency panels.

In recent years, Verna has faced two significant external challenges. A sharp rise in interest rates has increased the cost of borrowing, making it more expensive for BrightWave's customers to finance large construction projects. At the same time, the UK government has introduced new legislation requiring all new-build homes to include renewable energy sources from 2026, significantly increasing future demand for solar panels.