External Influences

Curriculum Specification: Business Studies, Level 3 (Year 12 Equivalent, UK Curriculum)

Unit Focus: International Business
Learning Aim C: Investigate the external factors that influence international businesses

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Lesson Duration

120 minutes (split into 4 x 30-minute segments)

Class Size: 25 students

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Learning Objectives

By the end of this lesson, students will:

1. Identify and evaluate the external factors (political, economic, social, technological, legal, environmental, and ethical) that impact international businesses.
2. Apply situational analysis techniques (such as PESTLE) to assess a business operating internationally.
3. Understand the influence of the internet and technology on international business processes and support systems.
4. Compare different international payment methods and understand their suitability for varying business scenarios.

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Required Materials

1. Whiteboard or Smartboard
2. Handouts on PESTLE analysis (pre-prepared)
3. Case Study: UK-Based Business Expanding Internationally
4. Counters or Tokens for Group Activity
5. Mock International Business Scenarios (pre-prepared cards with details)
6. Videos or visual aids on international trade

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Lesson Structure

Segment 1: Introduction to External Factors (30 mins)

1. Starter Activity: Word Cloud Creation (10 mins)

• Objective: Engage students while introducing key concepts regarding external factors.
• Facilitate a brief group activity:
  • Write “External Influences” on the board.
  • Ask students to shout out words they associate with external factors (e.g., politics, economy, technology).
  • Use these words to collectively build a word cloud on the board or paper.

2. Mini Lecture: Overview of the PESTLE Framework (15 mins)

• Define the PESTLE framework (Political, Economic, Social, Technological, Legal, Environmental).
• Provide real-world examples linked to UK businesses (e.g., Brexit’s political impact, environmental sustainability regulations like COP26).
• Discuss why ethical factors are integral to an international context (e.g., fair trade, labour rights).

3. Class Discussion: Impact of Factors (5 mins)

• Students share examples of businesses they think are impacted by PESTLE factors, helping contextualise and personalise the topic.

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Segment 2: Applying Situational Analysis (30 mins)

1. Case Study Analysis (20 mins)

• Case Study: A mid-sized UK company considering expansion into India.
  • Break students into 5 groups of 5.
  • Assign each group a specific PESTLE factor to analyse in relation to the case study and how it might impact the company's operations.
  • Provide guided worksheets to support their analyses.

2. Group Presentations (10 mins)

• Each group presents their findings on their assigned factor (e.g., political impact: tariffs and trade rules).
• Encourage constructive discussion and questions from their peers.

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Segment 3: International Business Support Systems (30 mins)

1. Mini Lecture: The Role of Technology in International Business (10 mins)

• Highlights:

  • Speed of communication (email, video conferencing platforms like Zoom).
  • Impact on supply chains through tracking systems and digital inventory management.
  • E-commerce growth and international online transactions.

• Discuss real UK examples:

  • ASOS’s use of online platforms for global customers.
  • Tesco’s incorporation of international sourcing using technological systems.

2. Activity: Technology Poetry (10 mins)

• Students pair up to collaboratively create a short, creative “Technology & International Business” poem.
• Example template:
  • “The internet broke the trade barriers wide,
    Emails and Zoom took businesses for a ride.
    Payment platforms made deals complete,
    International success with technology to meet.”
• Ask volunteers to read out their poems.

3. Class Debate – The Role of Ethics vs. Advancement (10 mins)

• Pose a question: “Should ethical concerns outweigh technological advancement in international trade?”
• Divide students into two teams.
• Allow them 5 minutes to prepare, then have a structured debate.

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Segment 4: International Payment Methods (30 mins)

1. Introduction Lecture: Payment Methods (10 mins)
Provide an overview of international payment methods with their features and risks, including:

• Cash in advance: Low risk for seller but high for buyer.
• Letters of credit: Security for seller but involve bank fees.
• Open account: Riskier but fosters trust for long-term trading partners.
• Commercial payment systems (e.g., PayPal or Revolut for businesses): Quick and user-friendly but less secure for high-value transactions.

Use a table to compare and contrast the payment methods.

2. Role-Playing Activity: Business Scenario (15 mins)

• Prepare scenario cards for international business deals requiring payment.
  • Example: “You’re a small UK company selling artisan products to a retailer in Japan. Decide on the most suitable payment method.”
• Split students into small groups to roleplay and debate which payment method works best for their scenario.
• Groups present their decisions and justify why that method was chosen.

3. Key Takeaway Summary (5 mins)

• Reinforce key points from the activity. Discuss how understanding different payment systems makes businesses more agile and globally competitive.

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Plenary: Reflection & Exit Activity (10 mins)

1. Rapid Recall Quiz

• Questions:
  • What does PESTLE stand for?
  • Give one example of how technology impacts international trade.
  • Name and describe one international payment method.

2. Personal Reflection Task:

• On sticky notes, students write one factor from today’s lesson they find most interesting and one question they still have.
• Stick notes to the designated “Engagement Board” as they leave.

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Homework Assignment

Task 1: Research and write a one-page summary of a UK company’s international expansion strategy. Highlight at least three PESTLE factors that influenced their success or challenges.
Task 2: Create a flowchart of the process for completing an international trade payment using a method of your choice.

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Assessment Opportunities

1. Informal assessment through group discussions, presentations, and role-play activity.
2. Homework assignments to assess understanding and applied knowledge.
3. Final summary notes or questions students ask during plenary for insight into individual comprehension.

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Differentiation Strategies

1. Provide scaffolding for less confident students (e.g., simplified case study examples).
2. Stretch tasks for advanced students: Ask them to research how geopolitical issues like war or trade sanctions can impact international trade.
3. Alternative formats (e.g., visual flowcharts vs. written notes) for students with diverse learning needs.

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This lesson plan ensures student engagement, real-world connections, and a deep understanding of international business concepts while aligning with UK education standards.