Analyse the opportunities to SBC of the current economic environment in country X.

Mark scheme

Marking points from the official mark scheme (May/June 2021). The mark or mark type is shown in brackets.

1. Knowledge:
2. Economic environment as part of the external environment.
3. Changing structure from traditional manufacturing to service industries as part of economic development
4. Explanation of terms, such as meaning of economic growth, unemployment, inflation.
5. Government intervention such as spending and grants.
6. Credit understanding that government may try to use policies to control other economic variables, such as rate of unemployment.
7. Understanding of government investment in new technological infrastructure.
8. Application:
9. More jobs in service/technology sector, more need for SBC training courses
10. Stable economy (economic growth 3% per year and inflation 2.5%) means likelihood of further growth in demand for education and related services such as the 'grade booster' courses
11. Real economic growth of approximately 0.5%
12. Government intervention/policies improving infrastructure/grants/sponsored training all leading to more potential demand.
13. Analysis:
14. If country X continues to experience economic growth incomes will rise resulting in more potential revenue and profit.
15. High unemployment among low skilled labour might result in increasing demand for SBC's services as workers look to retrain. This will increase demand for basic skills courses and increase revenue.
16. High unemployment may result in government investing in skills training and thus boost demand for SBC.
17. Impact of variables such as high unemployment (cheap labour costs but not for skilled labour) low inflation (easier to plan finances, e.g. for government contract facilities)
18. Grants available to new businesses will increase demand from entrepreneurs who require basic business skills training.
19. As country X grows further the need for different types of technology and Business courses will increase further leading to business growth.