Syllabus: AQA - AS and A Level Business
Module: 3.9 Strategic Methods: How to Pursue Strategies (A-level Only)
Lesson: 3.9.2 Assessing Innovation

Introduction

This lesson focuses on Section 3.9.2 of the AQA A-level Business syllabus: Assessing Innovation. Part of the broader unit on strategic methods, this topic explores how businesses innovate and the strategic implications of doing so.

Understanding innovation is vital for both exams and real-world application. It builds commercial awareness by showing students how businesses create value through new ideas, processes, and products. The section aligns with AQA’s emphasis on applying business theory to dynamic, real-world scenarios—ideal for developing students’ strategic thinking and workplace readiness.

Key Concepts

Students are expected to learn the following as outlined in AQA’s specification:

• Pressures for innovation: Competitive markets, technological change, and evolving consumer needs.

• Types of innovation: Product innovation (new goods or services) and process innovation (new ways of delivering or producing).

• Approaches to innovation:

  • Kaizen: Continuous improvement through small, incremental changes.

  • Research and development (R&D): Investment in discovery and design.

  • Intrapreneurship: Innovation driven by employees within a business.

  • Benchmarking: Learning from industry leaders to improve processes.

• Protection of innovation: Understanding patents and copyrights.

• Functional impact: How innovation affects marketing, operations, finance, and HR strategies.

These concepts not only reflect business theory but also prepare students to evaluate strategic choices—meeting the broader assessment objectives of critical thinking and analysis.

Real-World Relevance

Innovation is everywhere—from how Amazon continuously optimises logistics, to how Dyson invests heavily in R&D to maintain competitive advantage. Consider these examples:

• Netflix evolved from DVD rentals to a streaming platform by investing in digital innovation and content production.

• Tesla uses process innovation in battery manufacturing and software updates to stay ahead.

• Greggs Bakery implemented Kaizen-style operational changes in its supply chain to improve efficiency and sustainability.

These examples bring theory to life and help students grasp the tangible effects of innovation on business success.

How It’s Assessed

The topic is typically examined in Paper 3, where students must apply knowledge to unseen contexts. Assessment often includes:

• Data-response questions: Interpret charts or case materials on innovation strategies.

• 20-mark evaluative essays: For example, “Assess the importance of innovation for long-term business success.”

• Command words: Common terms include analyse, assess, evaluate, and justify.

Students should practise using structured approaches such as PEEL (Point, Evidence, Explanation, Link) and be encouraged to incorporate case study evidence.

Enterprise Skills Integration

Innovation links directly to our Enterprise Skills themes:

• Commercial Awareness: Understanding how innovation drives growth and competitive advantage.

• Decision-Making & Problem-Solving: Weighing innovation strategies against risks, budgets, and market response.

• Workplace Readiness: Realistic insight into how businesses respond to change—a key skill for any future employee.

Simulations and tools such as Skills Hub Business allow students to make innovation-based decisions in context, e.g. launching a new product with limited resources or choosing between R&D and outsourcing.

Research shows that business simulation games improve higher-order thinking and engagement by up to 73% over traditional methods.

Careers Links

This topic maps clearly to Gatsby Benchmarks 4, 5 and 6:

• Benchmark 4: Students link curriculum content to real careers like product development, strategy, and R&D.

• Benchmark 5: Invite industry speakers (e.g. innovation managers, engineers) or use Enterprise Skills’ employer challenge library.

• Benchmark 6: Simulated strategy activities mirror workplace decision-making.

Careers related to this topic include:

• Innovation Consultant

• R&D Analyst

• Product Manager

• Technology Strategist

• Operations Planner

Enterprise Skills tools like Skills Hub Futures make these pathways visible to all students, not just those in Business Studies.

Teaching Notes

Tips for delivery:

• Use mini case studies like Apple vs. Samsung’s innovation strategies.

• Apply role-play or simulation for innovation budgeting decisions.

• Debrief using SWOT or cost-benefit frameworks.

Common pitfalls:

• Students often confuse invention with innovation.

• Many neglect to discuss the functional impact of innovation—remind them to link back to all departments (finance, HR, operations).

Extension ideas:

• Challenge students to create an innovation strategy for a local business or a charity.

• Use Skills Hub’s innovation scenario tools for low-prep, high-engagement sessions.

Assessment insight:

• Encourage precision with definitions (especially Kaizen vs. benchmarking).

• Develop students’ ability to write evaluative conclusions with balanced argument and strategic judgement.