Analyse two likely impacts on PPP of the changing external influences.

Mark scheme

Marking points from the official mark scheme (Oct/Nov 2025). The mark or mark type is shown in brackets.

1. Definition of external influences (max K1) might include:
2. External influences are those outside the control of business and act as both constraints and enablers for PPP's activities.
3. External influences include legal, political, economic and social changes.
4. Knowledge of impact of changes in external influences might include (max K2):
5. Increased trading barriers making trade more difficult, such as due to import taxes/tariffs
6. Decreasing demand for luxury goods due to decreasing income
7. Increasing demand for budget or low-priced goods due to decreasing income
8. Changes to eating habits and diets, such as healthy eating
9. Application is making use of relevant case information not just repeating it.
10. Limited application, APP applies knowledge to PPP once.
11. Developed application, APP + APP applies knowledge to PPP twice.
12. Max one APP for application for the first impact in context and max one App for application for the second impact in context.
13. Trade more difficult between Country A and other countries in the region, may mean more expensive to export and import pies and ingredients, due to import taxes.
14. PPP sells both 'classic' pies and premium 'handmade' pies, the mix of items sold may change, due to falling real incomes.
15. 'Classic' pies may have a negative YED, whereas premium pies may have a positive YED (see table 1.1)
16. Maybe an opportunity for the new vegan range to be developed, due to people consuming less meat.
17. Maybe a threat to the new cheese pie aimed at the export market
18. Limited analysis AN candidate shows one link in the chain of analysis.
19. Developed analysis L2 AN candidate shows two or more links in the chain of analysis OR offers a two-sided analysis
20. An increase in export costs may make pies more expensive for overseas customers, leading to less export ord (AN resulting in reduced revenues and prof L2 AN / unless PPP finds a way to decrease production co L2 AN
21. Imported ingredients may become more expensive leading to higher production costs and pric AN
22. Demand may increase for 'classic' pies and decrease for 'premium' pie AN The impact on total revenue will depend on the different added value amounts, but is likely to decrease, maybe decreasing pro L2 AN
23. If pies are seen as generally unhealthy, overall demand will fall, due to the 'healthy eating' trend, leading to a decrease in sales revenue AN
24. Demand for meat pies may decrease, decreasing revenue AN but there could be an increase in demand for no-meat vegan pies, giving PPP an opportunity to develop this innovative range and increase sales L2 AN (two-sided analysis)
25. The difficulties in exporting to countries in the region may encourage Pedro, as an innovator to explore other markets and target a wider range of customers in other countries or at home resulting in increased brand awarene AN and sales revenue. L2 AN
26. Accept all valid responses.