External Factors In Action

Overview

This is lesson 2 of 20 in Strategic Business Responses. Students build on prior learning about businesses operating globally by classifying external factors using a PESTLE-style framework, then applying the framework to a New Zealand business and considering effects on people, customers and communities.

Learning intentions

• WALT classify external factors affecting a business operating in a global context.
• WALT use evidence to support the classification of each factor.
• WALT explain why external changes matter to a selected business.
• WALT ask useful questions about possible strategic responses.

Success criteria

• I can accurately classify political/legal, economic, social/cultural, technological, environmental and global factors.
• I can support each factor with relevant evidence.
• I can explain why an external factor matters to a selected business.
• I can identify an interaction between two external factors and ask a question about its impact.

Curriculum links

• Strategic response to external factors by a business operating in a global context.
• Internal and external business knowledge, including effects on functions, people, management and the wider environment.
• New Zealand Curriculum Refresh capabilities: thinking; using language, symbols and texts; relating to others; participating and contributing.
• Aotearoa New Zealand context: considering people, communities, cultural values and responsible business decision-making.

Lesson structure (45 minutes)

1. 0–5 min · Hook and retrieval. Teacher opens with the opening scenario slide showing a New Zealand food or clothing business facing a sudden overseas regulation, and asks, “What has changed, and what can the business control?” Students independently list one internal and one external factor, then share with a partner.

2. 5–12 min · Direct teaching. Teacher uses the PESTLE framework slides to introduce the six categories: political/legal, economic, social/cultural, technological, environmental and global. Clarify that external factors are outside the business’s direct control, but a business can respond strategically. Students annotate the PESTLE classification worksheet with a brief definition and one example for each category.

3. 12–17 min · Guided classification. Teacher displays six current-style scenarios, such as a change in import rules, inflation, changing consumer values, artificial intelligence, extreme weather and exchange-rate movements. Students hold up or point to the category they think fits, justify one answer using “I classified this as ___ because…”, and discuss examples that could fit more than one category.

4. 17–32 min · Collaborative business investigation. Teacher places students in three mixed-ability groups of three and assigns each group a New Zealand business operating internationally, such as Whittaker’s, Air New Zealand or Kathmandu. Teacher distributes the business investigation section and conferences with groups while they analyse short teacher-provided source extracts. Students identify at least one factor in each category, record evidence, and explain how three factors could affect the business’s people, customers and communities. Each student takes a role: evidence finder, classifier or impact analyst.

5. 32–39 min · Questions and connections. Teacher uses the discussion and challenge slides to prompt: “Which factor creates the greatest risk or opportunity?” and “Which two factors might interact?” Students generate two investigation questions, for example, “How could an exchange-rate change affect pricing and staffing?” Groups share one strong factor, one piece of evidence and one interaction. Other students offer a “clarify” or “challenge” question.

6. 39–45 min · Plenary and exit check. Teacher returns to the opening scenario on the final reflection slide and asks students to complete the final section of the individual exit response. Students write: one accurately classified factor, evidence for it, why it matters to their business, and one question about a possible response. Collect responses to identify misconceptions for the next lesson.

Resources

• the External Factors Overview slide deck
• the PESTLE and business investigation worksheet
• Six short, accessible source extracts about selected New Zealand businesses
• Projector or interactive display
• Factor vocabulary cards: political/legal, economic, social/cultural, technological, environmental, global
• Highlighters or coloured pens
• Optional headphones or text-to-speech access for source extracts

Assessment

• Listen for accurate classification and explanations during the guided scenarios; ask students to justify rather than simply name a category.
• Check group worksheets for six categories, relevant evidence and clear links to people, customers and communities.
• Use the individual exit response to assess whether students can classify, support and explain an external factor. Note students needing reteaching on category boundaries or evidence.

Differentiation

• Support students with a partially completed the scaffolded PESTLE framework, category definitions, visual factor cards, highlighted evidence and sentence starters such as “This matters because…” and “The evidence suggests…”.
• Use mixed-ability groups and explicit roles. Conference first with students who need help distinguishing external factors from business decisions.
• For dyslexia-friendly access, provide chunked source extracts, a clear sans-serif font, generous spacing, read-aloud or text-to-speech options, and permission to record audio notes instead of writing every idea.
• Extend advanced learners by requiring them to identify and explain an interaction between two external factors, weigh the greatest risk and opportunity, and propose a question about a business-wide strategic response.