Analyse two opportunities for TK resulting from changes in the external environment (lines 17–23).

Mark scheme

Marking points from the official mark scheme (May/June 2022). The mark or mark type is shown in brackets.

1. [3] Knowledge: Definition of external environment, factors outside the control of a business, such as government policies, economic factors and demographic and social changes.
2. [3] Knowledge: Reference to PEST analysis.
3. [3] Knowledge: Opportunities: Economic growth – increase in GDP
4. [3] Knowledge: Opportunities: Government policy to promote economic growth
5. [3] Knowledge: Opportunities: Social changes, age structure of population and changing working patterns
6. [3] Knowledge: Opportunities: Technological – use of smartphones and ecommerce.
7. [2] Application: Increasing incomes mean more demand for non-essentials, such as takeaway and delivered food
8. [2] Application: Government grants and loans help TK to recover from lack of demand caused by the recession
9. [2] Application: Fewer consumers eating out in restaurants
10. [2] Application: Demographics in cities where TK are located are likely to purchase delivered meals as they tend to be income rich / time poor
11. [2] Application: Use of mobile phone apps – most TK customers use these
12. [2] Application: TK specialises in meal delivery including USP of quality and packaging
13. [5] Analysis: Positive impact of increasing incomes on demand and therefore sales and profits.
14. [5] Analysis: Analysis of benefits of using mobile phone apps, such as efficient ordering and less errors which will reduce costs and better customer satisfaction which will increase sales.
15. [5] Analysis: Government grants may encourage investment in updated technology to increase efficiency.
16. [5] Analysis: Younger high-income professionals changing culture away from cooking at home will give TK opportunities to increase sales and expand.