Economic Forces

Overview

Lesson 5 of 20 in Strategic Business Responses. Students analyse how economic conditions and global interdependence influence strategic choices, using a New Zealand business operating as an exporter or importer. The lesson builds on prior learning about external factors and strategic, business-wide responses.

Learning intentions

• WALT analyse how economic conditions affect business decisions.
• WALT explain how global interdependence creates opportunities and risks.
• WALT connect economic changes to costs, revenue, stakeholders and strategic pressure.
• WALT formulate useful questions for further business investigation.

Success criteria

• I can identify an economic or global change affecting a business.
• I can link that change to costs, revenue, stakeholders and strategic pressure.
• I can explain how an exporter or importer could respond at a business-wide level.
• I can ask a relevant question that would improve the quality of a strategic decision.

Curriculum links

• Demonstrate understanding of strategic response to external factors by a business that operates in a global context.
• Demonstrate understanding of how internal factors interact within a business that operates in a global context.
• Apply business knowledge to address a complex problem in a given global business context.
• New Zealand Curriculum Refresh: students use critical thinking, communication, collaboration and decision-making to interpret evidence and respond to a meaningful business situation.

Lesson structure (45 minutes)

1. 0–5 min · Hook and retrieval. Teacher displays a headline-style scenario from the economic forces introduction deck: “The New Zealand dollar falls sharply while shipping costs rise.” Students individually write one likely impact on a business and one external factor they remember from the previous lesson, then share with a partner.

2. 5–13 min · Build the knowledge base. Teacher uses the economic forces introduction deck to briefly explain inflation, interest rates, exchange rates, household income, supply chains, international trade and global competition. Use concrete examples: inflation can raise wages and input costs; higher interest rates can reduce borrowing and consumer spending; a weaker New Zealand dollar may improve export competitiveness but increase the cost of imported inputs. Students complete the first section of the economic forces analysis worksheet, recording whether each change is likely to increase or decrease costs, revenue or demand.

3. 13–18 min · Model a strategic link. Teacher models one complete chain on the economic forces introduction deck: “The New Zealand dollar weakens → imported packaging costs more → gross margin is squeezed → the business reviews suppliers, pricing and product size → employees, customers, owners and overseas suppliers are affected.” Emphasise that a strategic response is business-wide and may involve functions, people and management over different timeframes. Students rehearse the chain verbally with a partner using the prompt: “Because…, this means…, so the business could…”.

4. 18–32 min · Collaborative scenario analysis. Teacher places students in three groups of three and assigns each group a scenario in the economic forces analysis worksheet: a New Zealand food exporter facing weak overseas demand; a New Zealand clothing importer facing a weaker dollar and shipping disruption; or a technology business competing with cheaper international providers. Students use the scaffolded table to identify the economic/global change, immediate and longer-term consequences, affected stakeholders, and two possible strategic responses. Each group must formulate two student questions, such as “Would changing suppliers reduce risk without damaging quality?” or “Should the business raise prices or accept lower margins?”

5. 32–40 min · Share, challenge and evaluate. Teacher uses the economic forces introduction deck to structure one-minute reports from each group. After each report, another group asks one clarifying or challenging question. Students listen for links between the external factor and costs, revenue, stakeholders and strategic pressure, then add one improvement to their own response. Prompt groups to distinguish between an operational reaction and a strategic response involving several parts of the business.

6. 40–45 min · Individual exit response. Teacher displays the final prompt in the economic forces introduction deck and students complete the final section of the economic forces analysis worksheet: “Explain how one economic or global change could affect a New Zealand business. Recommend one strategic response and justify it using costs, revenue and stakeholder impacts.” Invite two students to read responses aloud, then collect the worksheets.

Resources

• the economic forces introduction deck
• the economic forces analysis worksheet
• Projector or interactive display
• Calculators or calculator app
• Whiteboard and markers
• Highlighters or coloured pens
• Timer
• Printed scenario cards within the worksheet

Assessment

• During retrieval and questioning, check whether students can distinguish an external factor from a business response.
• Circulate during group work and use the table to assess whether students make a clear cause-and-effect link to costs, revenue, stakeholders and strategic pressure.
• Use the individual exit response to identify whether students are explaining and justifying a business-wide strategic response, rather than merely naming an action.

Differentiation

• Provide concrete examples, a completed model row and sentence starters: “The change is…”, “This affects costs/revenue because…”, “The stakeholder impact is…”, and “A strategic response could…”.
• Allow paired verbal rehearsal before writing; accept labelled flow diagrams, speech-to-text or typed responses where appropriate.
• Use the uncluttered, dyslexia-friendly worksheet layout: large readable font, generous spacing, short instructions, clear table borders and limited information per section. Read instructions aloud and explain symbol-supported vocabulary such as “↑ costs”, “↓ demand” and “stakeholder”.
• Support groups by allocating roles: reader, evidence finder and spokesperson. Extension students model alternative outcomes under two economic scenarios and compare which response is more resilient, considering trade-offs between profitability, stakeholder interests and long-term sustainability.

Extension

• Students add a second economic scenario to their group response and explain how the recommendation would change.
• Students rank their two strategic responses and justify which is most appropriate in the short term and the long term.