Syllabus: AQA - AS and A Level Business
Module: 3.9 Strategic Methods: How to Pursue Strategies (A-level Only)
Lesson: 3.9.1 Assessing a Change in Scale
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Introduction
This article explores 3.9.1 Assessing a Change in Scale, part of AQA’s A-level Business specification under Strategic Methods: How to Pursue Strategies. The topic is exclusively examined at A-level and centres on evaluating business growth, retrenchment, and related management implications. Aligned directly to the AQA specification, this module plays a crucial role in helping students connect strategic business theory with real-world decision-making and workplace readiness.
Understanding scale changes is essential for developing students’ commercial awareness and strategic thinking – core elements of the Enterprise Skills thematic framework. These insights also map directly to Gatsby Benchmarks 4 and 5.
Key Concepts
AQA expects students to understand the following under 3.9.1:
Reasons for Growth or Retrenchment: Why a business might expand or contract its operations.
Types of Growth:
Organic (internal): E.g. opening new stores, increasing product range
External: Mergers, takeovers, joint ventures, franchising
Integration Types:
Horizontal – same industry, same stage
Vertical – same industry, different stage
Conglomerate – unrelated industries
Growth Management Challenges:
Economies of Scale – cost advantages with scale
Diseconomies of Scale – coordination/communication issues
Overtrading – growing too quickly without adequate finance
Synergy – combined performance expected to be greater than individual firms
Each of these topics ties directly into the syllabus and requires students to apply knowledge contextually, especially when analysing case studies or constructing arguments in longer responses.
Real-World Relevance
This topic is rich with real-life relevance. Consider:
Greggs plc: A well-known UK food-on-the-go brand that grew organically by expanding its store footprint and focusing on operational efficiencies.
Meta’s Retrenchment (2022–23): After overexpansion, Meta cut 11,000 jobs globally, highlighting the risk of diseconomies of scale and poor strategic forecasting.
Morrisons’ Acquisition by CD&R: Demonstrates external growth through private equity-backed takeover and the strategic rationale of synergy and market consolidation.
These examples enable students to explore the consequences of strategic choices, bridging theory with boardroom reality.
How It’s Assessed
The AQA A-level assessment style focuses on three key command structures:
Short Analysis (10 markers) – Focused on cause-effect chains.
Application-Based (12/16 markers) – Students must contextualise theory into real business settings.
Extended Essays (20/25 markers) – Require argument development, analysis of alternatives, and evaluation (e.g. long-term vs short-term impact).
Command words include analyse, evaluate, discuss, and assess – all requiring high-level reasoning and structured justification.
Students must show:
Clear knowledge of growth/scale strategies
Application to a business context
Balanced arguments with judgement
Use of relevant terminology (e.g. synergy, diseconomies of scale)
Enterprise Skills Integration
This topic connects powerfully with our Enterprise Skills themes:
Commercial Awareness
Students explore how scale affects operations, strategy, and financial viability – core to understanding how businesses create and sustain value.
Decision-Making & Problem-Solving
Assessing growth strategies requires weighing risks (overtrading, loss of control) against rewards (market share, cost efficiency). These are the exact higher-order thinking skills that simulation-based learning promotes.
Workplace Readiness
Understanding organisational scale links to operational roles, stakeholder management, and resource allocation – preparing students for real workplace dynamics.
Careers Links
This module offers clear alignment with Gatsby Benchmarks 4, 5 and 6:
Benchmark 4 (Linking curriculum to careers): Students explore how senior leadership roles (e.g. CFOs, Strategy Directors) manage business growth.
Benchmark 5 (Encounters with employers): Employer challenges involving scale decisions (e.g. expansion plans, merger evaluations) are built into Skills Hub Futures activities.
Benchmark 6 (Experiences of workplaces): Simulated decision-making environments reflect real-world strategic planning, validated by employer partners.
Career pathways tied to this unit include:
Corporate Strategy Analyst
Financial Controller
Operations Manager
Investment Banking Analyst (M&A focus)
Management Consultant
Teaching Notes
Suggested Teaching Approaches:
Use simulation tools: Enterprise Skills’ business simulations present realistic growth scenarios for students to navigate and justify decisions.
Incorporate case studies: Encourage use of current affairs, such as high-profile mergers or retrenchments.
Debate-based learning: “Should Company X merge or grow organically?” enables critical comparison and evaluation.
Common Pitfalls:
Confusion between organic and external growth
Overemphasis on benefits without discussing risks (e.g. diseconomies)
Lack of contextualisation in written answers – encourage linking theory to named businesses
Extension Activities:
Analyse a recent UK merger (e.g. Sainsbury’s/Asda attempt) and evaluate why it succeeded or failed
Create a business growth strategy for a fictional company using strategic method options
