Syllabus: AQA - AS and A Level Business
Module: 3.7 Analysing the Strategic Position of a Business (A-level only)
Lesson: 3.7.6 Analysing the External Environment to Assess Opportunities and Threats: Social and Technological

Introduction

This A-level Business topic from the AQA specification sits within the broader module on Analysing the Strategic Position of a Business (3.7). In 3.7.6, students are expected to examine how social and technological changes in the external environment influence strategic decision-making. This is a critical area of the curriculum, helping students understand how businesses adapt to external pressures and opportunities—skills vital for navigating an increasingly complex commercial landscape.

This topic supports development of commercial awareness, decision-making skills, and links directly to Gatsby Benchmarks 4 and 5 by contextualising theory through real-world applications and employer expectations.

Key Concepts

According to the AQA specification, students should understand the following:

• Social Changes:

  • Demographic shifts such as ageing populations and migration

  • Changes in consumer lifestyles and buying behaviours

  • Growth of online and remote working

  • Increased expectations for ethical behaviour and sustainability

• Technological Changes:

  • Automation, digital transformation, and e-commerce growth

  • Technological disruption across sectors (e.g., AI, robotics, 5G)

  • Strategic use of big data and analytics

  • Cybersecurity and data protection

• Corporate Social Responsibility (CSR):

  • Carroll’s CSR Pyramid

  • Tensions between stakeholder and shareholder perspectives

  • Ethical decision-making and long-term value creation

• Impact on Business Strategy:

  • Functional changes across departments (marketing, HR, operations)

  • Strategic repositioning due to digital or societal shifts

  • Risks and opportunities presented by rapid change

Real-World Relevance

This topic is grounded in real-time developments. Consider the following:

• Tesco and Social Responsibility: Tesco’s focus on sustainable packaging and reducing food waste reflects growing consumer demand for ethical practices.

• Netflix and Technological Disruption: Netflix’s pivot to streaming and use of AI for personalisation demonstrates the importance of adapting to technological change.

• Working from Anywhere: Organisations like PwC and Nationwide have embraced hybrid working, reshaping operational strategy to reflect shifts in societal expectations around work-life balance.

• CSR and Brand Value: Brands like Patagonia and Ben & Jerry’s use CSR not only as ethical practice but as a strategic differentiator in competitive markets.

These examples allow students to connect syllabus content to commercial awareness—an essential workplace skill across industries.

How It’s Assessed

AQA A-level Business uses a variety of command words to assess this topic:

• Explain (e.g. the impact of demographic change on strategic decisions)

• Analyse (e.g. how technological change affects functional areas)

• Evaluate (e.g. the effectiveness of CSR policies in driving business success)

• Assess (e.g. the risks and rewards of adopting new technology)

Students should expect data response questions, extended essays, and case study-based scenarios requiring integrated knowledge across specification areas.

Example question:
“Evaluate the impact of social and technological trends on the strategic position of a UK retail business.”

Strong responses will:

• Reference real-world trends and company behaviour

• Consider short and long-term impacts

• Weigh stakeholder interests and ethical dimensions

Enterprise Skills Integration

This topic builds multiple competencies aligned to commercial awareness, workplace readiness, and decision-making, as highlighted in Enterprise Skills’ thematic framework:

• Strategic Thinking: Evaluating the implications of emerging social and technological trends.

• Risk Assessment: Weighing the cost of investing in new technology versus competitive risk.

• Stakeholder Management: Considering ethical responsibility alongside shareholder interests.

• Data Interpretation: Applying demographic or tech adoption data to support strategic choices.

Enterprise Skills’ tools and simulations develop these proficiencies through interactive, curriculum-mapped activities, increasing student comprehension by up to 73% over traditional methods.

Careers Links

This module links directly to Gatsby Benchmarks 4 and 5, as students:

• See curriculum content applied to real-world careers

• Analyse decisions faced by business leaders, tech strategists, and CSR managers

• Explore roles in:

  • Strategic analysis

  • Corporate social responsibility

  • Digital transformation and technology consulting

  • Market research and consumer insight

  • Ethical compliance and ESG reporting

Employer validation is embedded in Enterprise Skills’ approach through case studies and simulation events, enhancing career relevance for every learner.

Teaching Notes

Top Tips:

• Integrate News Media: Use live articles on AI or CSR to ground theory in current affairs.

• Use Debates: Have students debate shareholder vs stakeholder priorities in CSR cases.

• Map to Careers: Draw direct lines between syllabus points and job functions using Skills Hub resources.

Common Pitfalls:

• Over-generalisation: Encourage students to use data and named examples.

• Ignoring CSR complexity: Help them avoid simplistic “CSR is always good” arguments.

• Missing cross-functional impact: Push for answers that consider marketing, HR, and operations implications.

Extension Activity:

• Use Skills Hub’s ‘Innovation Thinking’ or ‘Data-Driven Decisions’ tools to simulate how companies respond to social/tech trends. These sessions require no teacher prep and generate evidence for Gatsby compliance.