Syllabus: AQA - AS and A Level Business
Module: 3.7 Analysing the Strategic Position of a Business (A-level only)
Lesson: 3.7.3 Analysing the Existing Internal Position of a Business to Assess Strengths and Weaknesses: Overall Performance

Introduction

This topic is part of the AQA A-level Business syllabus (3.7.3) and focuses on evaluating a business’s overall internal performance to identify strengths and weaknesses. It expands analysis beyond financial ratios, encouraging students to consider operational, marketing, and human resource data, along with strategic measures such as core competences and Elkington’s Triple Bottom Line. This approach fosters strategic thinking and supports real-world application, aligning with AQA’s emphasis on dynamic business contexts and critical decision-making.

Key Concepts

Students must grasp the following core areas from the AQA syllabus:

• Non-financial performance indicators: Understanding data from operations (e.g. capacity utilisation), marketing (e.g. customer retention), and HR (e.g. labour turnover) to assess internal performance.

• Comparison over time and between businesses: Analysing performance trends and benchmarking against competitors.

• Core competences: Recognising unique capabilities that provide a competitive advantage.

• Short-term vs long-term performance: Differentiating tactical success from sustainable strategy.

• Triple Bottom Line: Evaluating performance using Elkington’s framework—Profit, People, Planet—to incorporate social and environmental metrics into business performance.

These areas encourage students to move beyond spreadsheets and into strategic interpretation—a key part of developing commercial awareness and workplace readiness.

Real-World Relevance

High-profile examples of businesses balancing short-term performance with long-term goals include:

• Unilever’s sustainability strategy, which leverages the Triple Bottom Line to balance shareholder returns with ethical sourcing and environmental impact.

• Greggs plc, known for aligning its operational efficiency with core values—e.g. inclusive recruitment policies and environmental initiatives—demonstrating core competences in ethical business.

• Tesla’s HR practices, where rapid growth has clashed with high staff turnover, raising questions about long-term sustainability despite strong financials.

Embedding such examples into lessons shows students how companies measure more than just profit—and how internal dynamics drive external success.

How It’s Assessed

Students will encounter this content primarily in Paper 2 and Paper 3 of AQA A-level Business, typically within:

• Data response questions: Students interpret case study material and must identify and evaluate internal strengths and weaknesses.

• Extended 20-mark essays: Expect evaluative questions such as “To what extent is the use of non-financial data more useful than financial ratios in assessing business performance?”

• Command words: Assessments will include Analyse, Evaluate, Assess, and To what extent—requiring structured argument and critical judgement.

Mark schemes reward the application of knowledge to business contexts, balanced arguments, and substantiated conclusions.

Enterprise Skills Integration

This topic directly supports three of Enterprise Skills’ core themes:

• Commercial Awareness: Understanding how internal business functions—beyond just finance—contribute to overall success.

• Decision-Making & Problem-Solving: Evaluating performance holistically requires interpretation of data, identification of issues, and formulation of responses.

• Workplace Readiness: Applying tools like SWOT, benchmarking, or Triple Bottom Line nurtures a professional mindset, strategic thinking, and readiness for performance evaluation in the workplace.

Enterprise Skills simulations reinforce this through live decision-making scenarios and employer feedback—helping students experience the challenges of performance analysis first-hand.

Careers Links

This module aligns with Gatsby Benchmarks 4, 5 and 6:

• Benchmark 4: Linking curriculum learning to careers—understanding performance data is central in roles like business analyst, operations manager, HR adviser, and marketing executive.

• Benchmark 5: Encounters with employers—employer-led case studies and simulation judges can reinforce these concepts.

• Benchmark 6: Workplace experiences—through virtual simulations or employer-set challenges analysing business KPIs.

Example roles where this knowledge is critical:

• Management consultant

• Strategy analyst

• ESG (Environmental, Social, Governance) officer

• Finance graduate trainee

• Business operations coordinator

Skills Hub Futures supports this through mapped careers sessions like Understanding Business Models and Data-Driven Decisions.

Teaching Notes

Delivery Tips:

• Use a business dashboard simulation tool or spreadsheet analysis challenge to mimic real-life data assessment.

• Present students with contrasting business case studies—one excelling in financials but weak on people/planet; another with strong ethics but weaker profit.

• Encourage strategic discussions around core competences—what truly gives a business long-term value?

Common Pitfalls:

• Students often focus too narrowly on finance—ensure balance by highlighting operational and HR metrics.

• Core competences can be abstract—use real company capabilities (e.g. Apple’s design ecosystem) to clarify.

Extension Activities:

• Get students to map a business against the Triple Bottom Line using recent annual reports.

• Run a simulated boardroom debate: should a business prioritise profit or people?

Resources:

• Skills Hub Business tools mapped to AQA spec points

• Employer video interviews discussing real performance measures

• Reflection worksheets comparing case study businesses’ internal KPIs