Positive Impact
State one likely positive impact on the business if it adopts a new technology or responds well to an external factor.
Students must name a genuine benefit such as higher sales, improved efficiency, lower costs, better productivity, stronger reputation, improved quality, or higher customer satisfaction. Accept equivalents if specific; reject vague answers like “it helps the business” unless the help is named.
State one likely negative impact on the business when an external factor creates extra pressure or change.
Accept items such as setup cost, staff resistance, disruption, legal compliance cost, reduced demand, reputational risk, or training cost. Reject “bad for profits” unless the cause is stated.
Name two business functions or areas that could be affected by the external factor.
Likely functions include marketing, operations / production, finance, human resources. Award only if they are actual business functions or clearly defined areas.
Give one specific example from the business, organisation, or case that could support an answer about an external factor.
The student gives a specific detail, not simply “the business is affected” or “the business uses technology.”
Accept any specific, relevant fact or action from the case. For example: “The business imports its raw materials from overseas”; “The business has invested in self-service technology”; “The business employs 150 staff”; “The business has introduced recyclable packaging”; “The business operates in several New Zealand regions.” The example must be connected to a genuine external factor or response.
What does “explain” require a student to do in this standard?
The student includes both parts: what and why.
Answer framework: State the answer to the question, then give the reason why it happens or link ideas to form a coherent rationale. Student-friendly version: “Say what happens, then explain why it happens for the business.”
Explain how that positive impact could improve one business outcome such as profitability, efficiency, or customer satisfaction.
answer framework:
external factor / action → immediate positive effect → business outcome such as profit, sales, efficiency, loyalty.
Award if the link is clear, not merely asserted.
Explain how that negative impact could reduce performance in one area of the business.
answer frame:
factor / change → immediate cost, difficulty, or risk → effect on one business outcome (e.g.profitability)
Explain how the factor could affect one of those functions.
factor and specific business function → immediate effect → effect on one business outcome
Explain how that example is relevant to the question.
The student explains the link: case fact → external factor → business effect.
Model frame e.g: “Because the business imports raw materials, an increase in customs duties would raise its costs. This is relevant because the business may need to increase prices or accept lower profit margins.” The evidence must be used to prove why the factor matters to this particular business.
Turn this weak statement “Technology improves efficiency.” into an explanation by adding the reason why it happens.
The student changes a claim into a supported explanation by adding a reason or logical link.
Weak statement: “Technology improves efficiency.” Improved answer: “Technology can improve efficiency because automated systems can complete routine tasks faster and with fewer errors than manual processes.” The answer now explains why the effect occurs.
Explain a positive impact on one business function and show the likely knock-on effect on another area of the business.
Must show two linked effects,
e.g. “new technology improves monitoring → reduces wastage in operations → improves profit margin.” More developed answers compare functions or show ripple effects.
Explain a negative impact and show how it could create a second consequence for the business or a stakeholder.
answer frame:
factor / change → immediate cost, difficulty, or risk → effect on one business outcome
Explain how the same factor could affect a second function in a different way.
Same factor and new specific business function → immediate effect → effect on one business outcome (new perspective/info needed for this answer)
Add one piece of business knowledge that strengthens the example.
The student adds accurate business terminology or logic and explains how it strengthens the example.
Turn this explanation into a fuller explanation by adding the consequence for a business goal or stakeholder: “Technology can improve efficiency because automated systems complete routine tasks faster.”
The student includes: what → why → consequence.
Full explanation model answer: “Technology can improve efficiency because automated systems complete routine tasks faster, which can reduce labour costs and enable the business to process more customer orders. This may increase profitability or improve customer satisfaction through faster service.” Fully explaining means extending to a potential business or stakeholder goal, advantage, disadvantage, effect, or consequence.
Using a studied or supplied context, explain one positive impact in enough depth to show both the immediate effect and the longer-term business outcome.
Award full points if the student uses a specific example, explains the direct impact, and extends to a longer-term business outcome.
Reject generic endings such as “this is good for the business.”
Using a studied or supplied context, explain one negative impact in enough depth to show both the immediate cost and the longer-term business consequence.
Full-credit responses explain both the immediate problem and the wider consequence; acceptable alternatives depend on the chosen case if the logic is sound.
Compare how the factor affects two functions, showing which impact is likely to matter more and why.
Developed answers say which function is more affected and justify that choice using the case conditions.
Build a full answer sentence that links the example, the factor, and the business outcome clearly.
The student gives a coherent chain: specific evidence → factor → direct impact → further consequence / business goal.
Model response: “As [the business] imports [specific product/material] from [supplier/country], an increase in customs duties would raise the cost of goods sold. The business may increase its selling price to protect its profit margin, but this could reduce demand from price-sensitive customers and lower sales revenue. Alternatively, absorbing the higher cost would reduce profitability in the short term.” This reaches full explanation because it includes a precise example, an immediate effect, and a developed business outcome.
Write a mini answer that shows the difference between this simple point and a fully explained point: “Higher customs duties increase costs.”
The student accurately shows all three levels, particularly the final developed consequence.
Explained point: “Higher customs duties increase the cost of imported materials for the business.”
Fully explained point: “Higher customs duties increase the cost of imported materials for the business. To maintain its profit margin, the business may raise prices, but price-sensitive customers may purchase from competitors instead. This could reduce sales revenue and weaken short-term profitability.” The best answer clearly distinguishes a statement, an explanation, and a fully explained chain.