← How a large business responds to external factors

Answering "with reference to TWO specific business functions"

A recurring instruction that names marketing, sales, production, and HR/finance as examples — mapping an external factor onto SPECIFIC functions is itself assessed.

The business functions, and what an external factor typically does to each

  • MARKETING: may need to justify a price change, reposition the product, or change messaging in response to the factor.
  • SALES: volume may rise or fall as customers react to a price or availability change caused by the factor.
  • PRODUCTION: may need to re-source inputs, change processes, or adjust output levels in response.
  • HUMAN RESOURCES: may face cost pressure on wages/hours, need retraining, or need to manage morale during the change.
  • FINANCE: must re-forecast costs and revenue, and may need to secure additional funding to manage the transition.
✕

Describing the factor's effect on "the business" generally, without naming functions

A question that specifically instructs "with reference to TWO specific business functions" is checking whether you can trace the SAME external factor through two DIFFERENT parts of the organisation with different specific effects on each — a generic answer about "the business" facing higher costs, with no functions named, does not meet this specific instruction. Worked example Tracing one factor through two functions With reference to TWO specific business functions, explain how a rise in customs duties on imported timber could impact a furniture manufacturer. FUNCTION 1 — PRODUCTION: higher-cost imported timber may force a switch to a domestic (or different imported) timber source, potentially changing product quality or requiring new supplier relationships. FUNCTION 2 — MARKETING: the resulting higher retail price must be justified to customers, perhaps by emphasising quality, sustainability, or local-sourcing angles rather than competing purely on price. Each function faces a DIFFERENT specific consequence from the SAME single factor — that is exactly what the instruction is checking for. ✓ Two functions, two distinct specific effects, both traced back to the same named factor — this is the complete shape of a "with reference to TWO functions" answer.

Practise just this