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External Influences 1 - Lesson Plan: flexible timing

A series of 'off the shelf' lesson plans and resources for use in the classroom. These lessons deal with External Influences and are relevant to the following specifications:

• AQA: Module 3, 12.1
• Edexcel: Unit 1, Sections 3
• OCR: Module 2871

Aim:

This lesson is a very straightforward activity asking students to apply their knowledge of external influences to a fictitious case study - very similar to the type of approach adopted by some exam boards. Students will be expected to be able to recognise trends in economic data and to analyse the likely impact on the performance of the business.

The trends are that the economy is slowing down - interest rates have been falling, but are on the rise and are predicted to stay at a higher level. The average rate of wage growth is slowing down as well. The clues to the students in the case study are given with the hint about the price and income elasticity of demand. In addition, the potential for growth abroad is offered but there are changes in the exchange rate that might influence the degree of sucess here. The case study deliberately gives students the chance to look at the relative impact of a rising exchange rate on both the imports of raw materials - the pots in this case - and the effect on exporters.

Smart candidates will be able to highlight the fact that the ultimate effect of movements in exchange rates will depend on the amount of trade a firm carries out abroad, in terms of both imports and exports. The conclusions to be drawn can be varied - the marks awarded should be based on the range of skills demonstrated and in particular the analysis and evaluation skills shown by the student, as reflected in the assessment weighting given below.

Learning Objectives:

At the end of the lessons, students be able to:

• Understand the main economic objectives of the government
• Understand the impact of changing economic data on business decision making and performance
• Select and apply appropriate key economic data to a business scenario to arrive at informed analysis and judgement
• Present a report in an appropriate format

Resources:

• PowerPoint Presentation - External Influences: The Macro-Economy [133K]
• Mind Map - External Influences 1
• Activity - External Influences 1: PotArts Ltd

Lesson Structure:

Read through the case study and highlight some of the key infomation. The extent of the explanation about the company performance so far and the economic data offered can be as detailed or as simplistic as desired! The 1,000 words is a guideline and can be amended up or down to suit.

Assessment Weighting (Suggested)

• Knowledge: 15%
• Application: 20%
• Analysis, Organisation and Selection: 35%
• Synthesis: 5%
• Evaluation: 25%