Writing for Success in Business Studies

Writing for success
in business studies
Teacher’s book
Answers and teaching suggestions
Literacy Works Trish Weekes PhD

Writing for success in business studies (Teacher’s Book) i Literacy Works
Published 2016
Literacy Works
Website: www.literacyworks.com.au
Email: trish@literacyworks.com.au
Ph: 0412198270
ISBN 978-1-876926-82-3 (teacher book - printed)
ISBN 978-1-876926-84-7 (teacher book - PDF)
Copyright © 2016 by Trish Weekes and Literacy Works
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Writing for success in business studies (Teacher’s Book) ii Literacy Works

Contents
Focus area Case study Page
About this book v
Teaching reading and writing vi
The teaching and learning cycle vii
Curriculum links by module viii
Curriculum links ix
Icons used in this book and what they mean x
Teaching Module 1: Writing like a business expert 1
The rules of business writing 2

Show me the money! Objectives of business 3
Identifying expert business writing Factors that contribute to 4
Writing like a business expert business success and failure 5
How to write dot points 6
Practice with dot points Influences on business 7
Purposes and forms of writing in business 8
Teaching Module 2: Explaining the business world 9
Explaining the business world Effects of business decisions 10

Cause and effect language: conjunctions Competitive advantage 11
Using conjunctions to explain 12
Explaining using conjunctions Achieving business goals TANDA 13
More cause and effect language: verbs and nouns Competitive advantage 14
Using a range of cause and effect language to explain ISA Group 15
Cause and effect language: prepositions and text Customer product benefits
16
connectives
Explaining competitive advantage Competitive advantage 17
Writing cause and effect sentences about a case study Explaining the benefits of
18
business decisions
Cause and effect language for explaining in business 19
Teaching Module 3: Explaining in PEEL paragraphs 20
Explaining with a PEEL paragraph Factors that contribute to GRANA 21

The stages of a PEEL paragraph business success 22
Understanding the stages of PEEL paragraphs 23
Writing a PEEL paragraph I 24
Writing a PEEL paragraph 2 25
Writing a PEEL paragraph 3 26
Teaching Module 4: Reading a case study 27
How to read a case study: a 5-step process How businesses can manage 28
How to read a case study: a 5-step process growth effectively OneShift 29
OneShift case study 30
OneShift case study (continued) 31
Writing a summary paragraph about a case study 32
Planning to write about a case study 33
Write about OneShift 34
Teaching Module 5: Explaining influences on case studies 35
External influences on a business External influences on 36

Finding external influences in a case study business Nourished 37
Planning to writing about external influences Life 38
Writing about external influences 39
Internal influences on a business Internal influences on 40
Finding internal influences in a case study business SurfStitch 41
Planning to writing about internal influences 42
Writing about internal influences 43
Writing for success in business studies (Teacher’s Book) iii Literacy Works
Contents
Focus areas Case study Page
Teaching Module 6: Evaluating the business world 44
Evaluating the business world 45

Positive and negative evaluations Business planning 46
Evaluating a case study company’s decisions Choosing a location for the TANDA 47
Evaluating business decisions business 48
Teaching Module 7: Recommending in the business world 49
Golden rules for recommendations 50

Recommending using modal language Government licences 51
What is the difference between recommending and Establishment options
52
explaining?
How to recommend Factors that contribute to 53
Making recommendations stronger or weaker business success 54
Writing a recommendation paragraph Workplace health and safety 55
Recommend for a scenario Establishment options T&M’s Fantastic 56
Writing recommendations Business planning Fitness 57
Teaching Module 8: Interpreting a question/ instruction 58
Parts of a question or instruction 59

Interpreting the question or instruction 60
Planning your writing Establishment options 61
Teaching Module 9: Writing an extended response 62
The stages of an extended response 63

Introduction Managing business growth 64
Conclusion One Shift 65
Planning an introduction and conclusion 1 Using sources of finance to Switch 66
Planning an introduction and conclusion 2 manage growth Automation 67
Writing an introduction and case study summary 68
Writing a conclusion 69
Extended response template 70-71
Teaching Module 10: Writing a business report 72
What are business reports? 73

The stages of a business report 74
The executive summary Establishment options 75
Planning an answer to an assignment instruction Recommending global 76
Model business report – activities 1 expansion Big Dog Pet 77
Model business report – activities 2 Foods 78
Business report – Big Dog Pet Foods 1 79
References 82
Writing for success in business studies (Teacher’s Book) iv Literacy Works

About this book
Why do we need this book? This book:
contains teaching suggestions and answers to
As teachers of business subjects know, success in activities in the Student Book
secondary schooling comes from knowing and
understanding the subject content, and also from is easy to use - just copy and teach
writing about the content effectively. Reading is
also critical in Business Studies, as students have to gives models and practical support for
incorporate real and fictitious case studies in their writing business sentences, paragraphs,
assignments and examination answers, as well as extended responses and business reports
reading about business theory in text books. (Of
course, numeracy is also important but the focus can be used for Year 10 as preparation for
of this book is literacy.) senior studies as well as Year 11 or Year 12
Even if students do know the content, sometimes integrates with the syllabus for Business
they find it hard to ‘get it onto the page’ or to Studies (NSW), Business Management (VIC
answer a question under the pressure of and QLD) and the Australian Curriculum for
examination conditions. This book aims to help Economics and Business.
students to learn how to read and write about
business, so they can convey what they know and
gain the best results they possibly can.
How do we know it’s right?
The explanations and exercises in this book are
What is literacy in business based on research into successful writing in senior
secondary schooling (see reference list on page
subjects? 82). The lessons and activities in this book have
been trialled in many classrooms.
According to the authority behind the Australian
The sequence of learning activities in this book is
Curriculum, ‘success in any learning area depends
based on a body of educational research into how
on being able to use the significant, identifiable and
to teach effective writing in schools (see references
distinctive literacy that is important for learning
e.g. Rothery 1994; Rose and Martin 2012).
and representative of the content of that learning
area’ (ACARA 2013, p9).
The way of describing language is based on the
model of language that underpins the Australian
So what are the ‘significant, identifiable and
Curriculum (Systemic Functional Linguistics)
distinctive’ reading and writing practices for
(ACARA 2013; Halliday and Matthiesen 2004;
business subjects?
Martin 1992; see reference on p82 for others).
Unfortunately, the ‘rules for writing’ are not always
clear to students or to teachers. There are some About the author
official government documents which provide Dr Trish Weekes is a teacher, literacy researcher
some support for what content to include in and academic. Trish knows about the practical side
certain answers but there are few models of of business writing as she worked in business
exemplar answers. This book will fill this gap by before becoming a teacher. She gained a wide
providing models and examples of business writing. range of business writing experience while
Also, this book helps students to apply these employed in marketing and advertising with
models and to write for success in Business Procter & Gamble, George Patterson Bates and IIR
Studies or Business Management. Conferences. She has a PhD in literacy education,
focusing on writing in business subjects in senior
secondary schooling.
www.literacyworks.com.au
Writing for success in business studies (Teacher’s Book) v Literacy Works
Teaching reading and writing
How to use this book Why PEEL paragraphs?
This book has been arranged in a logical sequence, This book proposes a scaffold or structure for
so please start at the beginning and work through writing paragraphs based on PEEL (point, explain,
it in order. example, link). Many schools use PEEL paragraphs
to help students learn about paragraphs. PEEL is
The concepts in this book are arranged as a spiral only a suggestion. There are many other paragraph
curriculum, that is, each piece of knowledge builds acronyms that could work, including:
on the previous piece of knowledge. So, if you jump TEEL (Topic, Explain, Example, Link) or
ahead, the content might not make sense. SEXY (Statement, Explain, X –example, and Y
Why?).
This book supplements business text books. It can See the reference list (Weekes 2014a and b) for
be used for regular classroom activities, as part of more paragraph structure ideas.
student preparation for assessment, for homework
activities, and for extra lessons if you are away. Reading a case study with
Blackline masters students
Each page in this book is a blackline master, so you Imagine this scenario.
can copy or print it as often as you like.You can
purchase a site licence for the book if you would The teacher hands out a case study and asks students
like each student in your class to have their own to read aloud, in turn. After a brief discussion, students
electronic copy. Contact are required to answer comprehension questions.
trish@literacyworks.com.au.
This is the typical way that Business Studies
How to teach writing teachers ‘teach’ reading. While this is a good start,
Research in secondary schooling shows that there many students of business subjects still find it
are some proven ways to teach reading and writing difficult to locate business theory in a case study.
so that all students in the class get involved and They often find it even more challenging to
learn how to write. integrate the case study in an extended response
or business report.
The most important idea is that teachers should
write with students. This book proposes an alternate, active way of
teaching reading. On pages 27-34, students are
It is very common for teachers to talk about how explicitly shown how to read a case study.
to write. They may even show an example and Following these exercises, students may be more
discuss it. However, for most students, just listening able to do research on their own. Teachers can use
is not enough to help them write well. these pages as a model for further case study
explorations in preparation for assessment tasks
All teachers hand out assessment notice sheets and assignments.
with detailed instructions for students about what
is required, including marking criteria. Yet it is not Teaching suggestions
enough for students to read about how to write. At the start of each module, there are several
teaching suggestions that might work in your
Reading and listening are not enough to classroom. These teaching suggestions are based
improve student writing. Teachers should on the model for teaching writing, the Teaching and
practise writing with students. Learning Cycle, found on the next page.
Research shows that students benefit greatly when
their teachers practise writing with them, regularly.
Page vii explains the steps in teaching writing.
Writing for success in business studies (Teacher’s Book) vi Literacy Works
The teaching and learning cycle
The teaching and learning Deconstruction
cycle After field building, the teacher leads the students
The reading and writing activities in this book are in exploring a ‘model’ text. The model text is a
based on research into how teachers can help all sample of a written text that students will have to
students to read and write in subject areas. (See create. The model ‘text’ may be a sentence or a
the reference list, e.g. Rose & Martin 2012). paragraph or a complete business report. To
deconstruct the model, the teacher explicitly
The teaching and learning cycle is based on the shows the students the language features that are
concept of scaffolding, where ‘teachers take an used in the model and how they achieve the
explicit approach to the teaching of writing while purpose of the text. This book contains many such
at the same time supporting student autonomy and models and deconstructed texts.
ownership of the writing process’ (Gibbons 2009,
pp. 106-107). While there have been several Joint construction
versions of this cycle, the one used here is shown The next stage is joint construction, when the
in Figure 1, developed by Rothery (1994). teacher leads the students in the collaborative
writing of a class text. This is the very important
stage of ‘writing with’ students. The teacher and
students write together on the board or they can
use a computer and projector to write a text
together. At first, the teacher controls the writing,
with students offering suggestions. The next time,
students can hold the pen or control the keyboard,
with the teacher supervising. In this way, the
teacher gradually releases control to the students
as they gain in confidence and skill. Many of the
pages in this book can be used as joint
construction activities with the teacher leading the
class in writing together.
Independent construction
In this stage, students apply what they have learnt
Figure 1: Teaching and learning cycle (Rothery 1994) to a new text they write in pairs or by themselves.
This stage also involves planning, writing and
gaining feedback from the teacher, as well as editing
Setting the context and and publishing.
building the field
The first step in any lesson is ‘setting context’ and Follow the cycle many times
‘building field’. Students need to know about the These stages should occur many times, as often as
‘context’, that is, why they are learning this topic you have time for. It would be ideal to write with
and how the lesson relates to other knowledge. students once a fortnight. Many teachers say that
They also need to know about how the lesson there is not enough time for this kind of writing
links with assessment and examination practice. There is no doubt that time is precious in
requirements. Building the ‘field’ means to teach the classroom and that there is a lot of content to
key concepts and terminology related to the topic cover. This book argues that teaching reading and
of the lesson. Setting the context and building field writing is critical for all students. After all, there is
can occur many times during the cycle and several little point in teaching content, if students are not
times in a lesson. able to write about the content effectively.
Writing for success in business studies (Teacher’s Book) vii Literacy Works
Curriculum links by module
The table below shows relevant links to the curriculum for each module of this book. This table may
assist teachers when integrating literacy activities into units of work, and in planning and assessment.
Module NSW VIC QLD Australian

Curriculum
Business Studies Business Business Management Economics
Management and Business
Outcomes Topics Unit, area of study, Dimension Area of study Content
outcome descriptions
1 Writing like P1 P2 H1 9.1 9.2 Unit 1, Area of study 1, 1, 3 Management ACHES045
a business H2 outcome 1; Unit 2, Area of Practices ACHES048
expert study 1, outcome 1
2 Explaining P1 P3 H2 9.1 9.2 Unit 2, Area of study 1, 1, 2, 3 Management ACHEK041
the business 10.2 outcome 1; Unit 2, Area of Practices; Business ACHES045
world study 2, outcome 2 Development;
Marketing
Management
3 Explaining in P1 P3 H2 9.1 9.2 Unit 1, Area of study 2, 1, 2, 3 Business ACHEK054
PEEL outcome 2 Development; ACHES045
paragraphs Marketing ACHES048
Management ACHES049
4 Reading a P1 P2 H5 9.1 9.2 Unit 1, Area of study 1, 2, 3 Human Resource ACHEK054
case study outcome 1; Unit 2, Area of Management ACHES043
study 2, outcome 2; Unit 4, ACHES044
Area of study 2, outcome 2
5 Explaining P1 P2 H2 9.1 9.2 Unit 1, Area of study 1, 1, 3 Management ACHEK054
influences on 9.3 outcome 1; Unit 4, Area of Practices; Business ACHES043
case studies study 2, outcome 2 Development ACHES049
6 Evaluating P3 H2 H2 9.3 Unit 1, Area of study 2, 3 Business ACHES046
the business H6 outcome 2; Unit 2, Area of Development
world study 1, outcome 1
7 Recommend P3 H6 9.3 Unit 1, Area of study 2, 3 Business ACHES046
ing in the outcome 2; Unit 2, Area of Development
business study 1, outcome 1; Unit 4,
world Area of study 2, outcome 2
8 Interpreting P3 H6 9.3 Unit 1, Area of study 2, 3 Business ACHES048
a question / outcome 2; Unit 2, Area of Development
instruction study 1, outcome 1
9 Writing an P1 P2 H2 9.3 Unit 1, Area of study 2, 2, 3 Business ACHEK054
extended 10.3 outcome 2; Development; ACHES045
response Unit 4, Area of study 2, Financial ACHES048
outcome 2 Management
10 Writing a P1 H6 9.1 9.3 Unit 1, Area of study 2, 2, 3 Management ACHEK054
business 10.4 outcome 2; Unit 2, Area of Practices; Business ACHES046
report study 1, outcome 1 Development ACHES048
Writing for success in business studies (Teacher’s Book) viii Literacy Works
Curriculum links
See the table on p viii for the curriculum links relevant to each module of this book.
NSW Business Studies Syllabus Area of study 2: Managing the marketing function:
P1 discusses the nature of business, its role in society Outcome 2: On completion of this unit the student
and types of business structures should be able to analyse effective marketing strategies
P2 explains the internal and external influences on and processes and apply these strategies and processes
business to business-related situations.
P3 describes the factors contributing to the success or
failure of small to medium enterprises Unit 4: Managing people and change
H1 critically analyses the role of business in Australia Area of study 1: The human resource management
and globally function: Outcome 1: On completion of this unit the
H2 evaluates management strategies in response to student should be able to analyse and evaluate practices
changes in internal and external influences and processes related to human resource management.
H5 evaluates the effectiveness of management in the Area of study 2: The management of change; Outcome
performance of business 2: On completion of this unit the student should be able
to analyse and evaluate the management of change in a
Topics large-scale organisation, and evaluate the impact of
9.1 Nature of business change on the internal environment of a large scale
9.2 Business management organisation
9.3 Business planning
10.2 Marketing Australian Curriculum: Economics and Business
10.3 Finance Year 9 and 10
10.4 Human resources The nature of innovation and why businesses seek to
create and maintain a competitive advantage in the
Queensland Business Management market, including the global market. (ACHEK041)
Dimension 1: Knowing and understanding business The ways businesses respond to changing economic
management conditions and improve productivity through
Dimension 2: Applying and analysing management organisational management and workforce
strategies management. (ACHEK054)
Dimension 3: Evaluating and communicating Develop questions and hypotheses about an economic
management strategies or business issue or event, and plan and conduct an
investigation. (ACHES043)
Victoria VCE Business Management Gather relevant and reliable data and information from
Unit 1: Small business management a range of digital, online and print sources. (ACHES044)
Area of study 1: Introducing business; Outcome 1: On Analyse data and information in different formats to
completion of this unit, the student should be able to explain cause-and-effect relationships, make predictions
explain a set of generic business characteristics and and illustrate alternative perspectives. (ACHES045)
apply them to a range of businesses Generate a range of viable options in response to an
Area of study 2: Small business decision-making, economic or business issue or event, use cost-benefit
planning and evaluation: Outcome 2: On completion of analysis and appropriate criteria to recommend and
this unit the student should be able to apply decision- justify a course of action and predict the potential
making and planning skills to establish and operate a consequences of the proposed action. (ACHES046)
small business, and evaluate the management of an Present reasoned arguments and evidence-based
ethical and a socially responsible small business. conclusions in a range of appropriate formats
using economics and business conventions, language and
Unit 2: Communication and management concepts. (ACHES048)
Area of study 1: Communication in business: Outcome Reflect on the intended and unintended consequences
1: On completion of this unit the student should be able of economic and business decisions. (ACHES049)
to explain, apply and justify a range of effective
communication methods used in business-related
situations.
Writing for success in business studies (Teacher’s Book) ix Literacy Works

Icons used in this book
and what they mean
writing activity what successful
students know or do
analyse, highlight interesting point

or underline or fact
read this PEEL paragraph
grammar point the main objective

of business is to
make profits
case study
How to type on a PDF

If you have this book as a e-book, download Adobe Acrobat Reader
(free software). Open the PDF file.
Click on ‘Sign’. Click ‘Add Text’. You should be able to type anywhere.
Click on ‘Comment’. You should be able to add a sticky note to add

comments anywhere on the page.
Writing for success in business studies (Teacher’s Book) x Literacy Works
Teaching
Module 1
Writing like
a business expert
Key concepts
the purposes of writing and the forms of
In this module, students will learn about: writing in Business Studies & Business
the importance of profitability in business Management
how to write using technical business terms how to write dot points and plan an answer.
Teaching Write with students
suggestions
The sentence writing activity on page 4 can be done as a
class activity. For the first couple of examples, ask students
to suggest wordings for an ’expert’ business sentence and
write/type them on the board. Then students can write in
pairs, and students can read out their versions. The rest of
Terminology Competition the class can determine the ’best’ or ’most expert’ sentence.
(NB: Students tend to find texts created by their classmates
To help students start using business terms, split students more interesting than texts in a book.)
into groups and run a competition to think of and write as
many business words as possible that have similar meanings
to: money, people, business. Winning groups can make lists
of useful business words for the classroom wall (or a wiki).
Causes of business failure
Before teaching the expert business writing on page 5, it
would be helpful to have a class discussion about the Top 4
Money word celebrity head causes of business failure (in the box on page 5). The latest
financial news can be explored for relevant examples.
Students work in groups. The whole class can do this activity
together, depending on class size. To prepare, write different
money words on post-it notes. Each group of students
receives a pile of post-it notes, face down, so they cannot Interpreting questions
see the words. Each student takes one post-it and puts it on Page 8 introduces the purpose for writing in business. The
their own forehead. The rest of the group can see their rest of the book explains these purposes in more detail.
word, but each student cannot see his or her own word. When you introduce writing tasks to students, you can refer
Each student has to ask the rest of the group ‘yes/no’ back to this page and identify the purpose of any piece of
questions to try to guess their word. e.g. Is the word about writing. An important point to reinforce is the difference
money that flows out of a business? If the answer is ‘no’, the between a purpose and a form. For example, a business
next student has a turn at answering questions. A student report is a form, but its purpose could be evaluating or
wins if they can guess their own word. explaining or recommending (or all three).
Word families
Create and display lists of word families based on the same
Media search - dot points
terminology: Distribute some actual examples of business reports in class
e.g. invest word family - investor, investment, investing, invested or do some company searches on the internet. Ask students
e.g. profit word family - profitability, profit-generating, profitable to find examples of dot points and identify which strategy of
e.g. strategy word family - strategise, strategist, strategic dot points is being used (ie. list, separate sentences or one
e.g. economy word family - economic, economies of scale,
economist, economical long sentence). Ask students to critique the use of dot
e.g. sustain word family - sustainable, sustainability, sustaining points and assess whether or not dot points are making the
e.g. innovate word family - innovative, innovation, innovated document easier to read or understand.
Writing for success in business studies (Teacher’s Book) 1 Literacy Works

The rules of business writing
Answers
Writing for business is different from writing in
other subjects. Business writing tends to be clear
and direct because business people are very busy Business writing should be
and they want to save time. To write like a objective, formal and impersonal, using
business expert, refer to the DON’T and DO list technical business terms.
below.
DON’T DO
use everyday or informal language use formal language and business terms
The business will be OK. The business will maximise profits.
use contractions use the written version of a contraction
don’t, can’t, they’d does not, cannot, they would
refer to money use business terms for money
The business will get more money. The business will maximise revenue.
write about people use business terms for people
People want different things. Consumers have diverse tastes.
try to sound fancy by writing long sentences write concisely and clearly using technical
without a reason business language
Strategizing for maximising the reduction of costs Economies of scale can reduce manufacturing
involve vital decision-making regarding costs.
manufacturing according to economies of scale.
give personal opinions based on personal write about business in an objective and
experience formal way
I don’t believe it went well because I haven’t seen Due to the lack of advertising, the product did
any ads about it. not succeed.
people
people business go badly
(outside the business)
(inside the e.g. company e.g. fail
e.g. consumers
Write a list of business) organisation, start-up, crash, be unsuccessful,
consumers, customers,
enterprise, workplace, go under, default,
business terms stakeholders, regulators, e.g. employees institution, job, trade, become bankrupt,
government, users, end-users, management, staff,
that have target market, bankers, employees, employers,
profession, factory, become insolvent
shop, corporation,
similar investors, suppliers, clientele, owners, workers,
establishment,
meaning as clients etc. directors, line
managers, proprietors,
partnership, go well
these everyday executives, supervisors,
manufacturer, supplier
etc.
e.g. succeed
words businessmen/women, succeed, thrive,
entrepreneurs etc. prosper, triumph,
grow, build

Show me the money!
Answers
All businesses must make money or they will not be successful. There are
many other objectives for businesses too, such as to offer employment
opportunities and to build the economy. However, the fundamental and
The main goal of central goal of business is to earn profits. Profits are achieved by increasing
business is to increase revenue and reducing costs.
revenue, reduce costs
and, as a result, to In business, we do not use the everyday word: money. Instead, we use
make profits. technical words that describe the role that money plays in a business.
Some common money words are shown in this word cloud.
All businesses have a common objective – to produce goods

and services and to sell them in order to earn maximum
Read this profits. Businesses generate revenue, also known as earnings or
paragraph. Find
and circle every income, by selling goods and services at a competitive price.
‘money’ word There are many costs associated with running a business, such
in this as wages and salaries, production costs, loan repayments,
paragraph.
rent and taxes. After all expenses have been paid, the remaining
In these funds are known as profits. If businesses are to succeed in a
answers money competitive market, they must aim to increase sales and
words are in reduce costs. In addition, businesses need to manage their cash
bold.
flow, that is, their income and expenditure. Healthy cash flow
ensures that a business can meet its short term expenses and
still have enough finance to grow the business.

Identifying expert
business writing Answers
On this page, you will find 8 sentences written by students of
business. Using the DO and DON’T list on page 2, decide if the
sentence is written like a business expert.Tick the box to show your
decision. Discuss the reasons for your answers with your classmates.
Does the student write like a business expert?

Tick in the ‘yes’ or ‘no’ column
YES NO
1. Business confidence is a good thing.
2. There was a fast food store and it was the only one around so people had to go to that
one.
3. Deregulation means that the government allows businesses greater freedom in how
they operate by minimising regulations.
4. If you have a business, you have to be sure that you don’t try to expand too fast or you
might not go well.
5. Successful businesses are required to manage both external and internal influences.
6. The customers didn’t like that product because they weren’t really interested in it all
that much.
7. Globalisation is a significant factor that impacts on the profitability of many businesses.
8. The business may as well try out the new product because if it does work out, they
might get lots of money from it.
Examples of re-written sentences

1. Business confidence is a positive influence in the market.
Select 4 2. Since the fast food store was the only one in that location,
sentences that consumers had little choice.
you consider
were not 4. Controlled business expansion is vital for sustainable growth.
written like a 6. Consumers showed little interest in the product as it did not
business meet their needs.
expert. 8. The business may introduce the new product in order to expand
Re-write these
sentences here potential future revenue.
using expert
business
language.

Writing like a business expert
Answers
Business students need to know business theory FACT BOX
and also how to write about the theory. This ASIC Top 4 causes of failure
page will help you practise writing like a business of Australian businesses in 2013-2014
expert. The fact box on the right lists the four main 1. Inadequate cash flow or high cash use
reasons why companies failed in Australia in 2013- 2. Poor strategic management of business
2014. A student has identified these reasons below, 3. Trading losses
but the writing is not suitable for business. 4. Under capitalisation
http://asic.gov.au/about-asic/media-centre/find-a-media-release/2014-
releases/14-254mr-asic-reports-on-corporate-insolvencies-2013-14/
Read the paragraph below. Discuss On the lines below, rewrite the
the weaknesses of this paragraph paragraph in a formal, objective way,
with your classmates.Then using business terminology.You can
underline the main points or ideas use the ideas and terminology from
in the paragraph. the fact box above.
Identify the factors that contribute to Identify the factors that contribute to
business failure in Australia business failure in Australia
If you’re a small business, you have to think a lot (Example) Small business owners must
about heaps of things that might make you fail. consider several factors that can
First off, if you don’t keep your eye on money,
contribute to business failure. Firstly,
you won’t go well. If they don’t know what’s
business owners should manage cash flow
happening in the business, they can’t get on top of
carefully so they can maintain control of
costs and expenditure. Strategic
their costs or how much they’re spending either.
management of the business is essential.
Then another thing to think about is about the
Business owners should strategically plan
people in charge, like if the boss isn’t really smart
for the direction of the business.
or hasn’t thought through the direction of the
Inexperienced staff can also be a limiting
business and all that. Maybe the people who work
factor for business success. To achieve
there haven’t spent a lot of time working in
success, each business should have a clear
similar businesses. That’s a bad idea. Speaking of
plan and model for its future direction.
the business, if the business doesn’t have a plan
Financial planning documents are essential
and a model for where it wants to go, and how to
for obtaining finance. If a business has
do it, then that can be a massive problem. And inadequate finance, it will be unable to
another thing, no-one will want to give them any grow and maximise its profit potential.
money or lend to them if they haven’t got the
right paperwork. That means they haven’t got
enough money and other things they need to keep
the business going and to really give it everything.

How to write dot points
A dot point (also known as a bullet point) is a type

of list. Dot points organise key pieces of The first part of a dot point is called
information in an eye-catching way, and they are the ‘stem’.
frequently used in business writing.
In business writing, dot points can be used for: This part is the stem:
a list point
separate, stand-alone sentences point
one long sentence. point.
DOT POINT DON’Ts

LIST Don’t overuse dot points or they
Dot points can be used for a list of simple lose their impact. One set of dots per
ideas after each point. page is usually enough.
Punctuation: use a colon after the stem and Don’t use dot points for explaining.
use lower case letters to start each point. It is tricky to explain cause and effect
Put a full stop at the end. in a dot point.
Example: Don’t use dot points for their own

sake. The fact that you use dot points
Businesses can be classified according to:
will not necessarily gain you higher
size
marks.
location
industry
legal structure. ONE LONG SENTENCE
Dot points can be used to break up one long
SEPARATE SENTENCES
sentence. All points have to follow on from
Dot points can be used to present 3-5 full the stem in a way that makes sense.
sentences.
Punctuation: use a colon after the stem.
Punctuation: each sentence should be Each point should start with a lower case
punctuated as if it is a stand-alone sentence letter. Use a full stop after the final point.
with a capital letter at the start and a full
Example:
stop after each point. Don’t just put dot points for every sentence.
If theiscompany
There no need.is to succeed, the
Example:
management should:
The company has three main strengths: develop a business plan
The employees are experienced. conduct market research with their
Products and services are high quality. customers
The location of the business is in a explore new technology.
prominent position.

Practice with dot points
Answers
Below you will find three real examples of student work. In these
dot points, the students have not followed the guidelines on page 6.
For each example, circle the mistakes and edit these points so they
are correct and make sense.
Example 1 Example 2 Example 3

Problems faced by the business such as Due to external and internal influences To achieve competitive advantage, a
on businesses in this market, it is likely business can introduce:
poor income with the limited
that
availability of products to sell. new products
Product prices will fall.
Damaged products. differentiating
the number of local and foreign
Suppliers could be affected as special sales and incentives
competitors will increase.
raw materials cannot be sent to
creating promotions
the manufacture. A change of consumer tastes.
reduce prices
Answer Answer Answer
There are several problems faced by Due to external and internal To achieve competitive advantage,
the business, such as: influences on businesses in this a business can introduce:
low income and limited market, it is likely that
new products
availability of products to sell product prices will fall
differentiation strategies for
damaged products the number of local and products and services
unavailability of raw materials foreign competitors will
special sales and incentives
for manufacturing. increase
new promotions.
consumer tastes will change.
Internal influences on business Competitive situations can create

include product, location, greater efficiency in production,
management, resource management create a better quality product or
and business culture. service and lead to market growth.
Re-write the
sentences on Answer Answer
the right as dot
Internal influences on business Competitive situations can:
points. Use the
guidelines on include: create greater efficiency in
page 6. product production
location create a better quality product

or service
management
lead to market growth.
resource management
business culture.

Purposes and forms of writing
in business
Writing in Business Studies and Business To meet these three main purposes, you have
Management has three main purposes: to master different forms of writing in
1. explaining assessment tasks and examinations:
2. evaluating short answers
3. recommending. extended response
The table below shows these purposes along with business plan
sample questions and suggested task words that business report.
may help you work out the purpose. A task The form of writing is not a purpose. For
word is the key word or instruction or question example, a business report is not a purpose.
word. You will need to read the entire question The purpose depends on the examination
to identify the purpose. question or assignment instruction.
Purposes for
Task words Sample question
writing
explaining how How can employee rewards be See pages
why used to improve business 9-43
explain
performance? Use an example of
give reasons
causes a specific reward to support
impacts your answer.
effects
outline a strategy to …
evaluating evaluate Evaluate the decision to adopt a See pages

justify niche market approach. 44-48
assess the importance
outline strengths
outline the pros and cons
discuss … compared with …
recommending recommend Recommend a source of finance See pages

advise your client... for the factory expansion. 49-57
Even though the task word is

Discuss ONE dispute resolution method ‘discuss’, you are required to
a business could use to resolve explain how a business could
workplace conflict resolve workplace conflict.
Some
assignment questions Even though the task word is
do not use the task Analyse the use of sequencing and ‘analyse’ , you are required to
word ‘explain’ but scheduling to improve business explain how sequencing and
operations. scheduling can improve business
their purpose is to operations.
explain. Here are two
examples, on the right. Practise interpreting assessment questions and instructions in Module 8.
Teaching
Module 2
Explaining the
business world
Key concepts
how to use cause and effect language to
In this module, students will learn: explain business activities and their impacts
that explaining is very important in business about conjunctions and other cause and effect
language.
Teaching Prepare for case studies

This module involves two case studies: Tanda and
suggestions
iFLYdownunder. Before reading, it is important for students
to know about the topic. This stage is called ‘building the
field’. If you build the field, students will know the context
and they are more likely to read with understanding.
These teaching strategies might be helpful.
Explaining is important Let students briefly explore the websites of these
case studies,
The material in this module is very important for reasoning Discuss the business idea behind each case study and
and communicating about business. Research has shown that ask students for their experiences with similar
one of the most important ways of thinking in business businesses.
involves explaining the influences on a business, and also The Tanda case study is more technical as it involves
explaining the impacts of business actions. In fact, it is pay rates and awards etc. Students could discuss their
possible to view the entire syllabus of business subjects as a part time jobs and how they are paid, if they fill in
complex inter-related series of causes and effects, as shown timesheets, and so on.
in the figure below: Discuss the potential advantages and disadvantages of
running these different businesses.
Make a cause and effect poster

The table on page 19 can be made into a poster and
displayed in the classroom. The table shows several different
ways of expressing cause and effect, By developing a
command of cause and effect language, students will be more
likely to recognise an explanation (in a case study or
examination question) and they will be more likely to explain
effectively. By using grammatical terms (e.g. conjunctions,
prepositions and adjectives), you will be able to give students
specific and explicit feedback and instructions for writing.
Write with students

As we know, writing with students as a class is an effect
teaching strategy. These pages provide several activities for
students: pp 12, 13, 16 and 17. You can write the first
example with them (or the first two examples), to make
The figure above shows a cycle of cause and effect in sure that everyone understands what to do.
business. The arrows indicate a cause and effect relationship.
Starting on the left, there are external and internal factors
that can impact on a business. Then a business takes action, Shorthand for profits π
which leads to effects and outcomes. These become You could consider using the symbol pi π to remind
influences on business, and the cycle continues. students about the importance of profits in business.
Explaining the business world
Answers
To ‘explain’ is to ‘relate cause and effect; make the
relationship between things evident; provide why and/or how’.
Explaining
(BOSTES 2012)
is an important
purpose for
writing in In an examination, you will be instructed to
business. explain. Circle the words below that indicate
that the purpose is to explain. Answers underlined
Questions:
Explain why managers may be resistant to change Explain the global factors that need to be
considered if they decide to use
How do employer associations influence human
outsourcing as an operations strategy.
resource management?
Analyse both the causes of workplace disputes
Maintenance is a process of human resource
and the strategies used to resolve them.
management. By referring to a specific
example, explain how maintenance could Explain why the ‘percentage of market share’ is
be used to improve business performance. important for a large-scale organisation.
(BOSTES NSW, 2014a; VCAA 2013)
Explain government influences on the financial
management of businesses.
In Business Studies and Business Management, Remember

we write about the influences on business, the that you
effects of business actions and the reasons why have to read the entire
businesses make decisions.Think about the question or instruction
consequences of these influences on businesses to work out the
and write possible outcomes or effects on the purpose.
lines provided.
1. If a business hires new staff, what are some possible may increase due to the new purchase of technology
effects? The new staff members could attract new and systems. Staff members will need to be trained on
customers and sell more products/services. The these new systems. As a result, they may be less
salary bill will also rise and so costs of running the productive for a period of time while they learn the
business will increase. Also, management will need to new systems. However, in the long term, the new
spend more time managing the new staff. technology and systems may improve the efficiency of
2. If a business decides to reduce its advertising budget, the organisation
what are some possible results? Costs will reduce in 4. If a business decides to start selling its products and
the short term, possibly reducing pressure on the services online, what are some of the possible
budget. However, customers will not see any outcomes? The business will face more costs
advertising or promotions so they may not buy the including the introduction of new technology and new
product, sales will decrease and profitability will be distribution / fulfilment strategies for online sales. The
reduced. company may benefit from reduced costs in staffing in
3. If a business decides to introduce new technology and the longer term.
systems, what are some of the possible effects? Costs
Cause and effect language:
conjunctions Answers
When we explain,
we use cause and A conjunction
effect language. is a ‘word that
joins other
words, phrases
or clauses
Cause and effect can be expressed through conjunctions. We can show together in
cause and effect relationships by using conjunctions like ‘because’ or ‘so’ to logical
link ideas. For example, these sentences use conjunctions to help explain why relationships’
businesses expand: (ACARA 2013).
Businesses expand because they want to increase profits.
Businesses expand so they can increase profits.
Conjunctions of cause and effect

because, so, since, therefore, as, as a result of, so that, in order to,
in order that, as long as, if, in case, unless, on condition that, thus
Look at the list

of conjunctions Before starting a business, new business owners need to do
of cause and market research. Market research is vital so that business
effect in the owners can ensure there is demand for their products or
box. Then read
this paragraph. services. Many new businesses fail because there is not enough
Find and circle consumer demand for the product. Demand can be hard to
every predict since market dynamics can change rapidly. It is also
conjunction important to evaluate competitors’ pricing in order to ensure
that shows
cause and that pricing is competitive. If the price is higher than the
effect. competition, consumers might not be prepared to pay for the
Answers are in product or service. Therefore, market research is vital for any
bold.
new business so they can maximise profit and succeed.
Add a Examples of possible answers

conjunction 1. All businesses need competitive advantage in order to achieve
then finish market leadership.
these 2. Competitive pricing is important so that customers consider
sentences.
that they are getting value for money.
Using conjunctions to explain
Answers
The main goal of business is to generate profits by
increasing revenue and/or reducing costs. Profitability
depends on both revenue and costs. The best strategy to achieve
Successful answers profits is to increase revenue and decrease costs. However,
repeatedly refer to
profits can also be generated by increased revenue without a reduction in
costs, or by stable revenue and reduced costs.
increasing revenue
and reducing costs. Successful answers in examinations tend to refer to profits, revenue and
costs in nearly every paragraph. We use cause and effect language to explain
how businesses generate profits by increasing revenue and reducing costs.
Conjunctions help us to link business actions with profits.
State what a Use a Explain the effect on the

business did or conjunction business (to increase
Read this 3 step
model for a point of to show revenue, reduce costs
writing a business theory. cause and effect and improve profits)
sentence about
business. Businesses expand in order to increase revenue and profits.
Examples of possible answers
1. New businesses do they can find a gap in the market for their
market research so products or services and maximise
revenue.
Use the 3 step
model to write
6 sentences. 2. Competitor analysis competitive products and services are
since essential for business success.
Read each is vital
sentence
starter, then
3. Effective pricing pricing is one of the ways to achieve
choose a
strategies should be as competitive advantage and maximise
conjunction profits.
from the list on developed
page 11, write
4. Businesses must create products that meet these needs,
the conjunction in order to thereby increasing sales and revenue.
in the arrow, understand customer
then finish the needs
sentence in the
5. Businesses need a they need to attract passing trade in
empty box. because order to increase sales.
good location
6. Many new small they are not prepared to manage finances

businesses fail if and minimise costs.

Explaining using conjunctions
Answers
CASE STUDY
Tanda is a successful small business based in Brisbane. Tanda creates
online staff rosters, timesheets and payroll in the cloud. Tanda’s clients
no longer need paper timesheets and they save time for data entry
and payroll administration.
On this page, you will read about four of Tanda’s clients. Use
conjunctions (from page 11) to explain why the businesses
have chosen to use Tanda. Use a different conjunction in
each sentence.
Client 1: Pizza Capers (a

chain of pizza stores) use
Tanda. Every day, Pizza Capers uses they can check planned and actual
management can check Tanda so costs in every store.
rostered and actual costs
from every store.
Client 2: Some Telstra

Retail Stores use Tanda. Telstra retail stores
Tanda’s payroll software save time for store managers
use Tanda for in order to
also links to accounting accounting
software packages. This
saves time for Telstra
store managers.
Client 3: Bimbi Daycare

Centre staff are on many
Bimbi Daycare they can calculate correct pay
different awards but so that
Tanda automatically Centres use Tanda rates for each worker.
calculates correct pay
rates for each worker.
Client 4: Interport Cargo

use Tanda for daily,
weekly, monthly, quarterly Interport Cargo use staff can access reports from
and annual reports of Tanda’s automated because mobile devices at the office or the
staff costs. Interport Cargo reports
staff access reports from depot.
mobile devices, at the
office or the depot. Images and case study information used with permission
More cause and effect language:
nouns and verbs Answers
Besides conjunctions, cause and effect can
also be expressed by verbs and nouns.
When writing, we can explain using a range of
Successful Nouns show
cause and effect language resources. Apart from
students use a what is involved
conjunctions, nouns and verbs can also express
range of language e.g. factor, goal,
cause and effect. The two boxes below show
resources to result, reason.
nouns and verbs for explaining cause and effect.
express cause
The following pages will help you practise using Verbs express
and effect.
nouns and action verbs to explain why and how what is happening
businesses succeed. e.g. leads to, causes,
impacts.
Nouns for showing cause and effect

cause, factor, influence, consideration, reason, Verbs for showing cause and effect
motive, purpose, basis, motivation, rationale, causes, leads to, results in, contributes to,
goal, aim, objective, intention, plan, effect, way, creates, makes happen, gives rise to, generates,
strategy, consequence, result, outcome, means, brings about, affects, influences, enables,
repercussion, payoff allows for, impacts, achieves, gains
A noun group answers the question ‘who?’ or ‘what?’ A noun group can contain one word
e.g. ‘strategy’ or many words e.g. ‘an effective pricing strategy’.
A verb group answers the question ‘what is happening?’ A verb group can contain one word
e.g. ‘create’, or many words e.g. ‘may be able to create’.
In the following example, the verb group is in green and the noun groups are in red:
An effective pricing strategy may be able to create competitive advantage.
Competitive advantage can be achieved by several factors including

Read product benefits, a good location and effective pricing. Product
this paragraph. benefits that are unique in the market contribute to competitive
Find and circle advantage and also enable the business to meet customer needs. A
every verb good location leads to increased retail traffic and consumer demand.
group or noun Another consideration for achieving advantage in the market involves
group that competitive pricing. The impact of low prices could be increased
shows cause sales. Alternately, premium pricing might create customer perceptions
and effect. of a high quality and desirable product. These strategies for
Verb groups are competitive advantage result in improved revenue and profitability.
green. Noun Ultimately, strategies for competitive advantage can have a large
groups are red. impact on the success or failure of a business. Without competitive
advantage, there could be serious consequences for business viability.

Using a range of cause and effect
language to explain
CASE STUDY
Read Indoor Skydive Australia (ISA) Group is an Australian company that
this case runs indoor skydiving facilities. Their first indoor facility, called
study about an ‘iFLYdownunder’, opened in 2013 in Penrith in Western Sydney. The
indoor skydiving main competitors for this business are open air skydiving operators who jump from
planes. ISA Group achieves competitive advantage as a result of a good location,
business. superior product benefits, innovative technology and effective pricing.
Images and case study information used with permission
A good location can contribute to/leads to competitive advantage. If a

retail business is in the right location, it can attract passing customers. A
location close to competitors is ideal because/since the business can
Choose cause directly compete and possibly take their customers. iFLYdownunder is
and effect located in Penrith in Western Sydney. This location was chosen since
resources from /because
the box below Penrith is a busy suburb and, therefore / as a result, many potential
to complete customers are close by. iFLYdownunder is next to the busy Panthers
this paragraph. Leagues Club, so it can attract passing trade from the club. The
Penrith location is also close to Holsworthy Army Base and,
therefore / as a result, iFLYdownunder can attract military customers
leads to since who need skydiving training. Another reason why location is
consequences important is that competitor skydiving operators use airfields near
can contribute to Penrith, so iFlydownunder is close to competition. In
because therefore this way, the consequences of the suitable location chosen by ISA
so if so Group are increased customer traffic and direct competition with open-air
as a result operators. Location can contribute to/leads to competitive advantage for
reason iFLYdownunder and improves profitability.
Place the cause

and effect words Conjunctions Verbs leads to
under the correct since as a result can contribute to
heading to show if
they are because therefore Nouns reason
conjunctions, so so consequences
verbs or nouns. if
More cause and effect language:
prepositions and text connectives Answers
So far, you have learned that cause and effect can

be expressed in conjunctions, nouns and verbs.
There are two more resources for building
Text
Prepositions meaning about cause and effect in business. You
connectives
start a phrase can also use prepositions and text
are words that
e.g. due to, as a connectives in your explanations. All of these
help to join
result of, because language features create a range of options for
longer sections
of, by means of you to choose from when explaining business
of text
actions and their consequences.
e.g. consequently,
therefore. Some
of these words
You can also show
are the same as
cause and effect
with conjunctions
by + verb + ing because they can
by ______ing be used within
e.g. By choosing a sentences too:
good location, the
business can attract e.g. consequently,
customers. therefore,
for that reason,
because of this,
as a result
The vertical wind tunnel at iFLYdownunder
Examples
Read the 1. Indoor skydiving is safer than open air skydiving. Due to
sentences on superior safety, consumers may choose indoor skydiving rather
the right that than outdoor skydiving.
explain the 2. Indoor skydiving uses vertical wind tunnel technology that is
benefits of unique in Australia. Therefore, there are no other competitors for
iFLYdownunder. indoor skydiving and iFLYdownunder has a monopoly in the
Then choose a market.
text connective 3. Military personnel require a safe training environment to test
or preposition their equipment and manoeuvres. As a result, iFLYdownunder
to start a offers a convenient and safe environment for military activities.
second 4. Every year, there are fatalities from open air skydiving accidents.
sentence that As a result of these statistics, many consumers prefer the safety
explains why of indoor skydiving.
this is a benefit
for customers.

Explaining competitive advantage
Answers
CASE STUDY: FACTS

about ISA Group’s
competition
Open air skydiving only
operates in daylight
hours, and only if the
weather is fine.
An open air tandem
jump (with an instructor)
costs around $259.
The minimum age for
open air skydiving is 12
years.
Examples of possible answers

1. iFLYdownunder e.g. Since iFLYdownunder has flexible hours, customers
offers flexible hours can come at any time and therefore potential revenue
(24 hours a day, 7 is maximised. Another benefit is that the facilities
days a week). are utilised to their full capacity, 24 hours a day.
Write 1-2
sentences next 2. Young children are allowed to use iFLY-
downunder’s facilities so the potential customer
to each box 2. Anyone from age 3 base for indoor skydiving is bigger than for open-
explaining the to 90 is allowed to air skydiving. This provides a competitive advantage
benefit of use iFLYdownunder’s for indoor skydiving, because open-air skydiving is
iFLYdownunder facilities. only permitted for people over 12 years old.
compared with 3. The cost of indoor skydiving is cheaper then
the open air open air skydiving. As a result, customers may be
skydiving 3. At $89 for two attracted by the lower price point of $89,
competition. jumps, the cost is compared with $259 for one open-air jump, leading
cheaper than open air to competitive advantage for iFLYdownunder.
For each skydiving. 4. Due to the fact that several people can jump at
example, use a once in indoor skydiving, friends, families and
corporate groups may be attracted to
different cause
iFLYdownunder. As a result, the skydiving
and effect 4. Several people can experience can be more enjoyable for customers,
language dive at once at providing an additional benefit and competitive
resource: iFLYdownunder. advantage. Also, the company can attract more
conjunction paying customers, leading to increased revenue and
verb profits.
noun 5. ISA Group has 5. ISA Group has secured exclusive access to the
preposition secured exclusive wind tunnel technology in Australia and New
text access to the wind Zealand. Consequently, iFLYdownunder has a
connective.
tunnel technology in monopoly in the market and they can build a solid
Australia and New customer base and maximise revenue and profits.
Zealand.

Writing cause and effect sentences
about a case study Answers
CASE STUDY
The owners of iFLYdownunder are Wayne

Jones and Daniel Hogan. Both spent many
years working in the Australian military including the
SAS (Special Air Service). While in the SAS, both men
trained in an indoor skydiving facility in the United
States, which gave them the idea for the business in
Australia. The defence forces use indoor skydiving
facilities for training and they are big customers for
iFLYdownunder.
In the early days of the business, Jones and Hogan

knew they needed more expertise in tourism. They
hired a Chief Marketing Officer who had extensive The owners of iFLYdownunder, Jones (left) and Hogan (right)
experience in tourism. in the wind tunnel in Penrith
Why is the background of the Why did the owners need to hire
owners a benefit for the business? new staff for their management
Think of three reasons and explain team? Think of two reasons and
each using a range of cause and explain each using a range of cause
effect language. and effect language.
Examples Examples
Due to the fact that the owners are ex-military One of the reasons why the owners needed to hire
paratroopers, they understand the needs of their new staff in their management team, is because they
military customers. As a consequence, they are in a needed a manager with tourism experience. The
position to meet the needs of military customers and owners did not have any experience with the tourist
discuss their customer’s requirements with authority consumer market, so they needed to hire someone
and credibility. This gives them a competitive advantage with this valuable expertise. Consequently, they hired a
and may build loyalty from their military customers, Chief Marketing Officer from the tourism industry.
increasing sales and profitability.
The new hire had another benefit. It is important for
As a result of the owners’ military experience, they management teams to have individuals with
have contacts within the military. Since the military are complementary strengths and different areas of
important customers, the owners’ contacts can attract expertise. Due to the fact that the new Chief
more customers to the business, and increase revenue Marketing Officer was from a different industry to the
and profits. owners, greater diversity was brought to meetings,
which lead to strengthening of the company’s
As the owners used to be in the SAS, they can explain management, ensuring future growth and profitability.
military needs to investors with authority.
Consequently, they may attract more finance for the
business, so it can expand and grow.

Cause and effect language for
explaining in business
The main goal of

Use this page as
business is to
a summary of
increase revenue
cause and effect
and reduce costs,
language for
resulting in
business.
increased profits.
conjunctions as, because, since, therefore, so, as a result of, so that, in order to, in order that,
for linking ideas thus, therefore, so, consequently, for that reason, due to, because of this, as a
within a sentence result
(a condition for cause and effect) if, in case, unless, on condition that, as long as
prepositions because of, due to, as a result of, for, through

for starting a
phrase
adjectives contributing, resulting, causal
for describing
verb causes, leads to, results in, contributes to, creates, makes happen, gives rise to,
explains what is generates, means, brings about, affects, influences, enables, allows for, impacts,
happening helps to, achieves, gains
Verbs can appear in many forms depending on their tense e.g. past: ‘caused’, present: ‘cause’,
future: ‘will cause’, and depending on number e.g. singular: ‘it causes’ or plural: ‘they cause’.
noun (a cause) cause, factor, influence, consideration

a thing (an effect) effect, consequence, result, outcome, repercussion, payoff, impact
(a reason) reason, motive, purpose, basis, motivation, rationale
(a purpose) purpose, goal, aim, objective, intention, plan, strategy
text therefore, so, consequently, therefore, for that reason, because of this,
connectives as a result
other useful by + verb + ing e.g. by finding Businesses can grow by finding new markets.
ways of to + verb e.g. to find Businesses expand overseas to find new markets.
explaining ‘to’ on its own may not indicate cause and effect. If you can insert ‘in order’ before ‘to’, then it does indicate cause and effect; e.g.
Businesses expand overseas in order to find new markets.
Text connectives can have other however (to show a contrasting idea)
purposes, besides cause and in addition, furthermore (to add an idea)
effect. Here are some useful although, whereas (to consider another point
examples: of view but then to disregard it)

Teaching
Module 3
Explaining in PEEL
paragraphs
Key concepts
In this module, students will learn about:
how to explain using a PEEL paragraph how to write a PEEL paragraph using a case
the stages of a PEEL paragraph study as an example of business theory.
Teaching Disruptive pricing

As we know, retail price = wholesale price + markup.
suggestions
However, in the age of internet shopping, this typical model
is changing. It is important to discuss markup and pricing
before students attempt page 24.
Page 24 introduces the concept of ‘disruptive pricing’. As
you know, ‘disruptive’ is a hot word right now for business
Build the field about Grana start ups. Wikipedia has a great article about disruptive
innovation.
Before teaching in this module, it would be helpful to hold a https://en.wikipedia.org/wiki/Disruptive_innovation
brief class discussion about the context for the case study, According to the business strategist, Stephan Liozu,
Grana, an online clothing retailer. Questions to discuss could disruptive pricing means ‘taking a leadership position in value
be: and pricing management, inventing pricing models that the
Who in the class buys online clothing? From which rest of the industry wants to adopt, launching innovative
sites? Why? offerings that are priced high and right and that competitors
Why do you choose these particular sites when there cannot compete against’. http://stephanliozu.com/practitioner-papers/
are so many options?
Why can online retailers provide goods at lower
costs? Writing with students
This chapter provides a perfect opportunity to take students
Success factors for business through the teaching and learning cycle (explained on page
vii). These activities can be done in one lesson or in a few
As we know, there are many complex success factors for minutes per lesson over a week.
businesses. This chapter will focus on six factors but there MODELLING AND DECONSTRUCTION
are many more possibilities too. The six focus areas are: Pages 21 and 22 provide a model of a PEEL paragraph and
1. choosing an industry with a proven market size and clearly explain the features. On page 23, students can identify
high demand the parts of a PEEL paragraph by drawing lines between the
2. conducting market research heading (e.g. point) and the appropriate sentence.
3. planning strategies to minimise costs (e.g. effective JOINT CONSTRUCTION
logistics) On the lower half of page 23, you can write the ‘example’
4. competitive pricing strategies for a high quality stage with students by scribing on the board. Before
product attempting page 24, you can discuss disruptive pricing (see
5. strategies to maximise sales the orange box above) then help students to plan and write
6. innovative marketing strategies. the ‘explain’ and ‘example’ stages of the PEEL paragraph on
Before teaching this module, it may be useful to present page 24.
these factors to students and discuss them. You could even INDEPENDENT CONSTRUCTION
organise the class into groups, give each group one strategy Depending on student abilities, students can work in groups,
and ask students to explain the success factor and give an pairs or independently to write the PEEL paragraphs on page
example to the rest of the class. 25 and 26. An additional idea is to ask students to look at
their own writing, or another student’s writing, and to
identify cause and effect language.

Explaining with a PEEL paragraph
In Business Studies and Business Management,
students have to write a range of written
responses, including:
Successful A business
students of short answers
paragraph needs
business need to extended responses to address the
know how to question or
business plans
write effective instruction, refer
paragraphs. business reports. to syllabus dot
In each of these texts, well structured and clear points and use a
paragraphs are needed. Sometimes, it is also case study as an
possible to use headings and dot points (see p6- example.
7). Even so, all successful students need to know
how to write a well structured and powerful
Every paragraph paragraph.
should refer to
Business paragraphs are special, because they use
increasing
case studies as examples of business theory. One PEEL paragraphs
revenue and
way of writing a paragraph is to use the PEEL are used in the
reducing costs
structure. Even if you have heard about PEEL body or middle
to maximise
before, this page shows a special business version. of an extended
profits.
PEEL paragraphs are used for the body of an response or
extended response, not an introduction or report.
conclusion. To find out about other paragraph
types, see p32, 55, 64 and 65.
POINT
Make a point related to business theory. Preview the rest of the
paragraph. There should be no examples here.
EXPLAIN
Explain what the point means. Elaborate (tell us more). Use cause
and effect language to explain.
EXAMPLE
Use a case study to apply the point. Explain what the case study
company has done in relation to the point.
LINK
Link the point to revenue, costs and profits. Link to the
assignment question or instruction.

The stages of a PEEL paragraph
CASE STUDY
This module will explore a case study, GRANA. Grana is an online
fashion retailer started by a young entrepreneur, Luke Grana.
Above: Luke Grana (centre in the green shirt) and some of the Grana team
Read the PEEL paragraph on the right

about one of Grana’s success factors and
look at an explanation of the PEEL stages Successful businesses choose industries
with a proven market size and high
POINT consumer demand. If there is a large
The main point of business theory is number of potential customers, the
clearly stated: that proven market size is
a success factor. business has the best chance to grow
resulting in higher profits. Luke Grana,
EXPLAIN a successful entrepreneur, has shown
The point is explained using cause and
effect language (underlined). that market size and consumer demand
are major factors in building a successful
EXAMPLE fashion business. Currently, the fashion
Grana is introduced as the case study to
apply the point. The next sentence retail industry is worth $1.7 trillion
explains what the case study company has worldwide and it is predicted that by
done in relation to the point. As you can
2030 the online market will skyrocket
see, there can be one or two sentences
in each stage of the paragraph. from 5% to 30% of total global fashion
sales. Therefore, Luke Grana has chosen
LINK
The final sentence makes a link to the a market with proven size and potential
point and there is a link to profits. for significant profits in the long term.
Understanding the stages of
PEEL paragraphs Answers
The paragraph below has stages in the wrong
order. Draw a line to link each paragraph section
with the correct stage of the PEEL paragraph.
Underline the cause and effect language.
POINT Luke Grana spent a long time on market research before he started his
online fashion business, ‘Grana’. He worked for six months in fashion retail
stores so that he could identify what kinds of clothing consumers were
interested in and what they wanted to purchase. As a result, he learnt that
EXPLAIN consumers were interested in high quality fabrics and ‘timeless designs’
rather than items that were only in fashion for a short time.
Market research is important because it provides evidence of what kinds of

EXAMPLE products consumers are prepared to buy and how much they will pay.
Therefore, market research helped Luke Grana to determine what products

would interest consumers and therefore to have the best chance of
becoming profitable.
LINK
Successful businesses conduct market research to identify what consumers
need and want.
Below, you will find a PEEL paragraph about logistics.The Example

stage is missing. Use the information about Grana in the case study
box to complete the missing section.
POINT Successful businesses plan effective logistics to minimise

costs.
Logistics like delivery and transportation can be some

CASE STUDY EXPLAIN of the highest costs for any business.
Australia Post’s parcel

delivery is expensive. (Possible answer) Luke Grana’s online retail business faced
potentially high costs for delivery. In order to avoid Australia
Post’s high costs for parcel delivery, Grana moved his operation
Luke Grana based his EXAMPLE to Hong Kong. Consequently, the business was able to use a
business in Hong Kong, a courier company, DHL, which is much cheaper than Australia
shipping hub for DHL Post. DHL charges as little as $10 for a box from Hong Kong to
couriers. anywhere in the world and, as a result, costs for Grana’s
business have been reduced.
DHL charges as little as
$10 for a box from Hong LINK
Kong to anywhere in the As a consequence of cheap delivery rates, Grana can
world. reduce costs and keep prices low.
Writing a PEEL paragraph 1
Answers
Read the case study
information on the right
about Grana’s prices then
follow the instructions below.
1. The Grana website lists five ways they achieve

low prices. Underline them in the text and
list them here:
Grana deal directly with the fabric mills,
They cut out middlemen
They can eliminate costs of physical stores
Grana ship directly from warehouse
They choose low mark-ups
2. ‘To disrupt’ means to break or interrupt. Who
or what is Grana breaking or interruptive
with their ‘disruptive’ prices?
Grana is disrupting the usual cost structure where Our prices are the lowest you will find in respect to
wholesalers charge a mark-up to supply fabrics to the fabric quality. How we achieve this is simple; we
clothing manufacturers. By dealing directly with deal directly with fabric mills, cut out all middlemen,
fabric mills, Grana has avoided the usual mark-ups eliminate the burdensome costs of physical stores
in the supply chain which adds costs for the and instead ship directly from our warehouse in
customer. Hong Kong. Finally, we choose mark-ups as low as
we can manage. (Source: www.grana.com)
POINT Successful businesses offer quality products at

competitive prices.
Write the
(Possible answer) Businesses must price their products
missing parts of
at a level that consumers can afford and are prepared
this PEEL EXPLAIN to pay, when compared with the competition in the
paragraph. market, while also balancing the need to cover costs
EXPLAIN what and make profits.
the point
means. Use
cause and effect (Possible answer) Luke Grana’s products are relatively
cheap for consumers, a strategy which Grana calls
language. ‘disruptive prices’. For example, a silk shirt costs $49 and a
EXAMPLE
In the T shirt costs $16, which are competitive prices. The
EXAMPLE company sells directly to customers online, so there are
no wholesaling costs. This minimises costs and improves
stage, explain competitive advantage, which provides the best chance for
how Grana has long term success for the business.
reduced prices
and the effect LINK
on profits. Therefore, low prices are likely to attract consumers
and lead to competitive advantage.
Answers
Read what the Grana

website says about the
Grana boxes.
CASE
STUDY Our Grana box comes in three sizes and are each charged different shipping
Grana.com has a system fees:
that tells customers how Small box (10 spaces): AU$10 shipping fee
much more they can buy Medium box (20 spaces): AU$15 shipping fee
before shipping costs go Large box (50 spaces): AU$20 shipping fee
up.
To make it easy, for each of our products we indicate how many Grana Box
This encourages spaces it will consume. For example one t-shirt equals two spaces therefore a
customers to fill up their small Grana box can fit up to 5 t-shirts. Want to buy more? Time to go up to
carts to that level. the next size. (Source: www.grana.com)
POINT In order to succeed, businesses have to maximise sales

from each and every customer.
Write the
missing parts of
this PEEL (Possible answer)
Each customer has a value to the business for current
paragraph. EXPLAIN and future sales, and successful businesses know how
to maximise this value potential.
Explain what
the point
means.
Use Grana as (Possible answer)
an Example. Luke Grana’s business has a system for encouraging customers
EXAMPLE to increase the value of their order. Grana’s online customers
Explain how the pay shipping costs based on the size of the ‘Grana box’ that
Grana Box contains their purchases. When customers order, the website
encourages includes a system that tells customers how much more they can
customers to buy before the shipping cost goes up. This encourage customers
to buy more clothing to fill up their Grana box.
buy more.
LINK the point
to profits and LINK (Possible answer)
In this way, Luke Grana has established an effective way to
costs. increase the value of each customer’s order, so that profits can be
maximised.

Answers
Look at this
information about
Grana ambassadors
from the website.
CASE
STUDY
Grana has a series of

brand ambassadors
who take photos of
themselves wearing
Grana clothing and
then share the photos.
POINT Successful businesses market their

products in innovative ways. Businesses
Write a PEEL
paragraph
must choose the most effective way to
about how reach customers with the brand’s key
successful messages, while also minimising costs and
EXPLAIN
businesses achieving ‘cut through’ in a crowded
market their market place. Grana has identified an
products in
innovative ways. innovative strategy to build brand
This time, there awareness by using brand ambassadors.
is no need to EXAMPLE Brand ambassadors are young, funky artists,
use the boxes. photographers, creative workers and
Instead, each
travellers who take photos of themselves
sentence
should follow wearing Grana products and post them on
on from the their websites. This is a cheap and effective
previous one to form of advertising for the business, which
create a LINK
builds awareness among customers and
seamless
paragraph.
minimises marketing costs.
Teaching
Module 4
Reading a
case study
Key concepts writing a summary paragraph about a case
how to read a case study and respond to an study
assignment question or instruction how to write a PEEL paragraph about a case
study company’s strategies.
Teaching Use visual organisers
suggestions
Another idea for teaching reading is to use visual organisers.
As students are looking for 3 growth strategies, it may be
helpful to have students draw this diagram and fill it in when
they skim the headings in the case study:
Why teach reading?

Reading might seem like a basic task for senior students.
However, research shows that the demands of reading
increase throughout schooling and many senior students
struggle with academic reading. For students of business, the
big challenge is to link what they read to business theory and
to case studies. Many students struggle to find the business
theory in a case study from a business magazine or a press
release.
Typically, teaching reading in senior school involves reading

aloud, around the class, then answering comprehension
questions. This is not an effective teaching strategy for all
learners.
Build the field before reading Other reading strategies

Before reading the case study about OneShift, build the field These reading strategies require some preparation by the
first by introducing the topic and relating the topic to teacher and some scissors.
students’ prior learning and real-life experiences. Questions Give students a case study that is cut up into three or
for class discussion could be: four main sections. Students have to arrange the
sections in a logical sequence and discuss why they
How did you find your part time job? have arranged the sections like that.
How do employers usually find staff? What about Type up one a few excellent PEEL paragraphs created
workers for one or two shifts or one event? by students. Cut them up and have students arrange
What are the challenges for employers in trying to them into PEEL stages.
find staff?
Does the age of a staff member matter? What are the
advantages and disadvantages of younger / older Discuss the press release
workers? The OneShift case study is a press release, sent out to
journalists to try to gain positive media coverage. The press
Then try the active reading activities in this module.
release does not use PEEL paragraphs because it is written in
Students will read the case study several times during these
small chunks. Small chunks help journalists to lift out small
activities. Each time, they will be looking for different
sections or headings for their articles.
meanings.
How to read a case study:
a 5-step process Answers
In Business Studies and Business Management, The audience for these texts is not usually
you need to use case studies to illustrate students but potential investors. As a result, you
business theory. To find information about may have to dig through a case study to find what
companies to use as case studies, you might you need for your assignment or report writing.
explore:
news articles This module provides a 5 step process for
feature articles in business magazines reading and interpreting a case study. We will
annual reports apply this process to a real case study of a
press releases. company called OneShift.
Before you start to read, you need to know what you are looking for. Your
KNOW purpose for reading will relate to the assignment question or instruction. For
YOUR example, you may have an extended response question like this:
PURPOSE How can businesses manage growth effectively?
We will use this question as our purpose for reading the case study of
OneShift.
Analyse the assignment GROWTH

question and key
e.g. grow
words BEFORE you expand
read. Use a list of growing grown
synonyms to help you expansion expanding
Write a list of expand expansion
find what you are words related build
looking for. Write to growth in increase increasing
what you already know the box on the thrive advance
about the topic, from right. develop spread
the syllabus and text flourish mature
PROS of growth CONs of growth

more sales and greater profits not enough staff to deal with orders
increased cash flow, business can management may be stressed, staff
achieve economies of scale, business and systems may not meet increased
can hire more staff, business can demand, delay times for delivery of
Fill in the table invest in new technology and products, products may be out of
to explore the systems, potential to launch new stock, customers may become
positive and products and services, growth of dissatisfied with poor service, cash
negative one company can build the overall flow problems from higher
size of the market, potential to build production costs, staff turnover may
aspects of fast
the economy, potential to buy other increase leading to loss of knowledge/
business smaller companies, business may be intellectual property within the
growth. able to expand globally company, company may lose touch
with competitors and be vulnerable to
hostile takeovers
How to read a case study:
a 5-step process Answers
Skimming means to look at the text without
SKIM THE reading it in detail. Look at the headings and
CASE highlight them. Notice any sections that seem
STUDY
Now turn to
relevant to your purpose. You might need to read pages 30 and 31
these in detail later on. and skim and
scan the case
Scan the case study for key words related to your study about
SCAN FOR OneShift.
question. Scanning means to read ‘lightly’ and
KEY
focus on finding key words. Highlight or underline
WORDS
words that relate to our topic of managing
growth. Do not read in detail yet.
READ THE Read the introduction Read the introduction

INTRO section in detail. Make section of the OneShift
sure you understand case study and answer the
what who where: what? who? where? questions
on the pie chart below.
what is the case
study company is OneShift is a job
called and what do search website for Genevieve George
they do? short and long is the founder and
term work CEO
who are the
owners? who are
the customers? customers are
employers and
where are they employees
located? where are
their customers?
Australia (Sydney). Customers

are all over Australia.
READ IN Read the case study in detail. Only read what you Read the
DETAIL need. You may not need to read the entire case OneShift case
study. As you read, highlight wordings related to study in detail
your question. Write a summary of what you find and look for 3
in the margins. strategies to
manage
growth.
OneShift case study
Answers
Press release: OneShift prepares for a massive 2015

Responds to growing demand for a hassle-free job matching service
Expands team with new hires
Announces key new clients
Acquires Australia’s leading mature age jobs platform Adage Words related to growth
Launches new iOS and Android app are underlined.
Sydney, Australia, 12 February, 2015: OneShift, the In less than three years, OneShift has grown its user
online job network which matches employees with base to over 400,000 jobseekers and 36,000 employers,
employers, today announced a series of strategic moves matching people with jobs across a range of industries
to kick off 2015, following a major year of growth for including hospitality, retail, events & promotions,
the online jobs platform. landscaping & gardening and administration.
This year will see the two and half year old startup Founder and CEO, Gen George, said that the major
expand its team to support a range of exciting new focus would be bolstering the team to ensure it could
clients, such as major Australian brands such support the growing popularity of the platform and
as SumoSalad, integrate the database of Australia’s improving the end-user experience of both the website
leading job site for seniors - Adage - and launch and mobile apps.
completely redesigned iOS and Android apps.
“We have major expectations for this year ahead, and
are making the necessary decisions to maintain growth
and expand our already impressive roster of clients. It’s
an intense start to the year, but one that’s absolutely
necessary to remain one foot ahead of the
competition.”
Expanding the OneShift team to support new
business
The startup, which has already grown from staff of 2-40

since its launch, will expand its team by an additional
10-15 people in the coming months boosting the 10
hires made last quarter.
The new hires, which will be primarily sales and tech

roles, will help support the business’s rapidly growing
client base, which has grown from mostly small
businesses to major household names.
“The speed at which we match people with jobs has

always appealed to smaller businesses who need a
scalable approach to hiring. But in the last twelve
months, we’ve been surprised and excited to become a
platform of choice for a range of larger businesses,”
George said.
“Today we have fantastic relationships with major

recruitment companies such as BENCHMARQUE, who
regularly use our service to source staff quickly and
cost-effectively.”
Founder and CEO of OneShift, Genevieve George

OneShift case study (continued)
Staffing Manager at BENCHMARQUE Hospitality & Event and Android app to make finding work even faster and
Recruitment, Michelle Watson, said as recruiters, the simpler for jobseekers on the go.
number one frustration was the time wasted waiting
More than 35 per cent of traffic for the service comes
for applications to come in from generic job board
directly from smartphones and tablets.
advertising
"For us, the genius behind OneShift is it allows us to be Using smart technology to establish compatibility
proactive about recruitment. We can view and search (based on a number of metrics, including geography,
candidate profiles to contact the people who are most previous experience and other desirable traits), the
suitably matched for the roles we are recruiting to fill. app will alert jobseekers to the best matches instantly,
It means we always have a pool of candidates to work meaning that whether they’re on public transport, at
with, and we don’t have to spend huge amounts of the movies, or just at home on the couch, they can be
money posting advertisements that may or may not job hunting 24/7.
receive any traction. Not only this, but OneShift’s
entire approach to their customers is aligned with our George said that a big focus of recent months had been
own culture of going above & beyond for our clients. improving the end user experience of the service,
Our questions are always answered, our suggestions holding focus groups and investing in research and
welcomed and we are dealing with people who enjoy development to make the product as efficient and easy
dealing with people.” -to-use as possible. With the latest data from the IAB/
Nielson Mobile Audience Panel Pilot study revealing
Acquisition of leading mature age jobs board, Adage
Australians spend 52 per cent of digital screen time on
mobile devices, taking the service mobile was the next
Due to Australia’s ageing population, the 45 year and
vital step.
above age bracket is forecasted to be the fastest
growing labour market segment over the next decade.
“Our aim is to make the process as seamless and quick
In response, OneShift has acquired Australia’s leading as possible for both businesses and jobseekers and to
mature age jobs board Adage.
take the pain out of the recruitment,” said George.
Adage is a jobs board and online community for
“Going mobile is key to enabling that flexible working
jobseekers over the age of 45. It will continue to
lifestyle, and helping promote a ‘work to live’ not ‘live
remain a free service for mature age Australians
to work’ attitude.”
looking to re-enter the workforce.
Having launched in New Zealand in February last year,
Improving the user-experience and going mobile George is now considering further International
expansion for OneShift later this year.
OneShift has recently launched its new IOS

Writing a summary paragraph
When writing an extended response or report,
sometimes we need to start with a summary
paragraph about the case study. A case study
summary paragraph gives the reader enough Successful
A case study information to understand the background. A writers know
paragraph does good case study paragraph answers these that a case
not follow the questions: study paragraph
PEEL stages. should be brief
What does the business do?
(that is, not a
Who owns it?
whole page!)
How will the case study be relevant to the
assignment question or instruction?
Acme Pty Ltd is an online retailer that What does the

sells high quality children’s toys and business do?
educational games. Acme Pty Ltd is
Read this
example of a owned by two Australian entrepreneurs, Who owns it?
case study Taylor and Maddie Davis. Acme is
paragraph. expanding rapidly so it is an interesting
How will the case
case study of managing growth. study be relevant
to the question?
OneShift provides an online job-

matching service for employers who What does the
Write a case are looking for staff, and for business do?
study summary employees who want to work.
paragraph
about OneShift.
OneShift is owned by Genevieve
George, a young entrepreneur. The Who owns it?
Reminder - The company has seen massive growth in
assignment question
is:
the past three years and it now
How can services 36,000 employers and
businesses 400,000 employees. Due to its fast How will the case
manage growth growth, OneShift is a suitable case
effectively? study be relevant
study for exploring strategies for to the question?
managing growth effectively.

Planning to write
The OneShift case study presents three strategies for managing growth. The first one involves hiring new
staff. Here is how your notes from detailed reading might appear. All the words related to growth have
been circled.
The business started with 2 staff
and now there are 40 staff.
The
company will
hire 10-15
new staff.
That’s a The new staff
growth will be in sales
strategy. and tech. Why?
For example: New sales

Now think about the possible effects of hiring new staff. How people can find new
customers and improve
would that help OneShift to manage growth? customer service for
existing customers; Tech
staff can manage the
technology and systems for
the new app and support
Use your notes from the OneShift case study new customers.
to fill in this table.The table outlines three
main growth strategies and explains how the
strategy will help OneShift to manage growth
effectively.
Growth strategy How this will help OneShift to manage growth.

Cause and effect language is in bold.
1 hiring new staff in sales and tech roles Hiring new staff in sales and tech roles will help OneShift to manage
the increased customer demand caused by their rapid growth. The
sales people can improve customer service and the tech staff can
develop systems and technology to support the company.
(to + verb indicates cause and effect e.g. to manage, to support)
2 buying another jobs board (Adage) Buying another jobs board (Adage) provides employers with a range
of new employees to choose from. Since new employees are
attracted to the business, the Adage jobs board will provide
OneShift’s customers with a wider range of potential staff.
Consequently, customer satisfaction can be maintained during
OneShift’s growth stage.
3 find the third strategy from your reading The third strategy is introducing new technology and a mobile app.
Introducing new technology can support OneShift’s growth stage by
introducing new technology improving access and usability for both employers and employees.
The new app can be used on all mobile devices so that users can
find a job or find staff, on the go, from any device. As a result, this
new technology improves the customer experience and provides an
important product benefit during the growth stage of the business.

Write about OneShift
Answers
Remember, the assignment question is : How can businesses manage growth effectively?
POINT
One strategy to manage growth is to increase
the number of staff.
Write a PEEL
paragraph If the customer list is growing, there is a need for
about EXPLAIN
more staff to service the needs of these
OneShift’s customers.
strategy to
manage growth One Shift will hire 10-15 new sales and tech
by hiring new people in the coming months in order to meet
staff, EXAMPLE the needs of customers and manage growth. New
sales people will be able to gain new business and
provide efficient service to customers and the
new tech hires will be able to ensure that the
back-end systems are effective and can cope with
growth.
LINK
This will ensure that profits can be maintained
during the growth of the business.
Sample paragraph 1 Sample paragraph 2
POINT Another way that companies The introduction of new
can manage growth is to technology and systems can
provide new products for support a company in the growth
Plan and write clients. stage.
another PEEL Customers are likely to spend When a company grows, it needs
paragraph EXPLAIN more if they have access to a ‘behind the scenes’ systems and
about a wide range of high quality technology that will enable the
products and services. company to operate smoothly and
OneShift efficiently.
growth strategy In the case of OneShift,
– you can products refer to the pool of OneShift introduced new
jobseekers that employers can technology to improve access and
choose which choose from. Buying another usability for both employers and
strategy you EXAMPLE jobs board (Adage) provides employees. A new app was
write about. employees with a range of new developed for mobile devices so
potential employees. As new that users can find a job or find
employees are attracted to the staff on the go.
business, the Adage jobs board
will provide OneShift’s
customers with more staff to
choose from. This new technology improves the
LINK customer experience and provides
Consequently, customer and important product benefits for
satisfaction can be maintained customers during this growth stage
during the growth stage, of the business, ensuring that
maintaining revenue and profits. revenue is maintained.

Teaching
Module 5
Explaining influences
on case studies
Key concepts
how to find examples of internal and external
In this module, students will learn about: influences in case studies
internal and external influences on a business how to explain internal and external
influences on a business.
Teaching Matching activity

Enlarge these definitions on the photocopier. Cut them up
suggestions
and have students match the term and the definition.
External influences
economic factors related to the economy such as
economic growth and exchange rates
External and influences on financial influences related to financial markets,
including the share market, impacting on
business the cost of obtaining finance
geographic refers to the location of countries,
The activities in this module should be taught AFTER
markets, the business, suppliers,
students learn about external and internal influences on
competitors, resources, staff and so on
business. See the definitions in the orange box on the right.
social influences related to general trends in
attitudes, beliefs and behaviour of people
Understanding external and internal influences on business
legal factors related to laws, regulations and
can be tricky. Many external influences overlap (e.g. financial
standards that a business must follow
and economic or legal and institutional). Many effects in the
political refers to the policies and ideas of political
business world (e.g. rising interest rates) are caused by a
parties and governments
number of factors. Discuss with students how influences in
institutional influences related to large organisations
the business environment are inter-connected.
related to businesses e.g. trade unions and
employer associations
The matching activities on p36 and p40 will be messy. There
technological refers to developments in hardware,
will arrows going everywhere. Conduct a class discussion
software and the internet
about students’ reasons for matching certain influences with
competitive situation
the business phenomena. These activities can help students
relates to other businesses operating in
develop business reasoning skills and to understand cause
the same market
and effect in the business environment. Rather than ‘right’
markets the features or characteristics of the
and ‘wrong’ answers, this activity can explore the complexity
business market where products and
of the business environment, while ensuring that students
services are sold
can identify examples of key external and internal influences.
Internal influences
products the range of products or services offered
by a business
location the physical or online location of the
business
Visual dictionary resources the people, materials and finance needed
to run a business
Create a visual dictionary (online or on paper) of external management the people who run a business as well as
and internal influences. Students pick an image from the their attitudes, values and behaviours
internet to explain each influence (e.g. the picture of a business culture the general environment and context
lawyer for legal, or a computer for technological). created within a business

External influences on a business
Answers
An important part of your studies of business
involves learning about influences on a business.
When you write about influences on a business, influences in the business environment
and how businesses react to those influences, you external influences – economic,
will need to explain using cause and effect financial, geographic, social, legal,
language. This page reminds you about external political, institutional, technological,
influences on a business. You will need to find the competitive situation, markets
definitions of the types of external influences from (BOS NSW 2010, p.14)
your text book. On the next page, we will explore
the external influences on a case study company.
Draw connecting lines to match the type of external influence with

an example in a shaded box. Many external influences are related so
there there may be several examples for each influence.
EXTERNAL more skilled migrant

INFLUENCES workers are available
new competitors enter
the market
economic and financial the Chinese stockmarket
dives
the National Broadband
Network is expanded
geographic and social Workplace Health and
Safety laws are revised the Australian economy
goes into recession
legal, political and the GST is increased
to 15%
institutional
interest rates for
business loans rise trade unions negotiate
technological changes to working
more older workers
conditions
enter the workforce
competitive situation online retail stores

become more popular
the Australian dollar
salary award rates on
depreciates
markets Sundays are reduced
wearable technology
becomes popular The Australian
government signs a Free
Trade Agreement
with China
Finding external influences
in a case study Answers
The external influences on business in this case
study are:
Your purpose for social Skim and scan
reading this case
government / legal the case study
study is to find and underline
technological
the external wordings
influences on economic / financial. related to the
this business Focus on these four influences when you read external
the case study. influences.
CASE
STUDY
Nourished Life
is an online
skin care and
cosmetics company that sells
certified organic products.
One of the hottest buzz-words in the beauty due to its rigorous testing and research of products.
market right now is ‘organic’. According to IBIS As a result of the testing undertaken by Nourished
World research, the market for organic beauty Life, customers can be satisfied that the products
products in Australia is worth $265 million and it is sold on its website comply with the strictest
forecast to grow at 17% per year. This trend shows organic standards. Irene even provides personal
that consumers appear to be moving away from advice about organic and natural products to
toxins and chemicals and towards natural and 30,000 Facebook followers and 10,000 Instagram
healthy ingredients. One of the big winners in this followers.
market is ‘Nourished Life’, an online beauty retailer
that distributes brands such as Miranda Kerr’s Nourished Life sources
KORA Organics and international favourites like its products from
100% Pure. around the world, but
this poses several
The term ‘organic’ is not as simple as it seems. If a challenges for the
product is labelled ’organic’, it does not necessarily business. One of
mean that it meets government standards. The Nourished Life’s first
regulation authority, Australian Certified Organic brands was a lip balm
(ACO), certifies organic cosmetics under the from the USA. At the
Australian National Standard National Organic time, the exchange
Program. However, each standard has different rate was near parity, so
requirements and these can be hard for consumers Falcone paid around
to differentiate. What makes it even more confusing $1 per stick and she
for consumers is that imported products do not could sell them for
have to meet these requirements. In fact, any $5.95. Now that the
product can call itself ‘organic’ without meeting any exchange rate is not as
of these standards. favourable, Nourished Above: Irene Falcone, Founder
Life must negotiate of Nourished Life
Amongst this confusion, Irene Falcone found a with its suppliers for
niche for her business, Nourished Life. Nourished cheaper prices, so it can keep costs low for
Life calls itself ‘the strictest natural beauty store’ customers and continue to succeed.
Planning to write about
external influences Answers
Influences on a business can be positive or negative.
Some external influences on a business can be
positive, such as the new opportunity for
Nourished Life caused by the social trend towards
Our purpose for writing is to respond to this
organic beauty products. However, some
assignment instruction:
influences can be negative, such as the variable
Explain how external influences can impact
Australian exchange rate.
on business opportunities.
Complete the table below to explain the main external influences on

Nourished Life. Evaluate the positive or negative impact on the
business and opportunities for the business.
Explain how the influence impacts on

Relate to the business opportunities for the case study.
External influence Nourished Life case study Use cause and effect language.
social There is a trend for Australians want to buy more organic skin care
Australian consumers to buy products so, as a result, there is an
organic skin care products. opportunity for Nourished Life to build a
successful business to meet this growing need.
government / legal Regulations for organic Positive: Since the government regulations are
complex, Nourished Life can offer a service to advise
cosmetics are complex and customers on which products are truly organic.
the government cannot Negative: However, international products can claim
regulate international they are organic without providing any proof. These
international brands may become competitors for
products.
the products sold on the Nourished Life site.
technological The owner of Nourished Life, Positive: By connecting with 30,000 Facebook
followers and 10,000 Twitter customers, Irene can
Irene Falcone, uses provide advice on the latest organic products and
(look at paragraph 3
technology to communicate thereby build loyalty and traffic to her website,
of the case study)
with her customers. leading to increased revenue and profits.
economic/financial Nourished Life imports Negative: Since the business sources products from
overseas, product prices for Australian customers
(look at paragraph 4 products so it is sensitive to rely on the exchange rate. For example, if the
exchange rate changes for the Australian dollar depreciates against the US Dollar,
of the case study - this
American goods become more expensive for
is a negative impact on Australian dollar. Australian consumers. This may lead to some
the business) products being too expensive for Australians and this
may lead to reduced sales and profits.

Writing about
external influences Answers
Here is a paragraph about social influences on business. The stages
of PEEL are in the wrong order. Draw a line to link each paragraph
section with the correct stage of the PEEL paragraph. Underline the
cause and effect language.
POINT Nourished Life is an Australian company that distributes a range of organic

products to Australian consumers. By capitalising on social changes in the
habits of Australian consumers, Nourished Life has the potential to gain
significant revenue in the organic cosmetics sector.
EXPLAIN
This social factor is a positive influence on business opportunities for
Nourished Life, as it has the potential to build revenue and profits.
EXAMPLE Social factors can be a major influence on a business by creating market

opportunities.
In the cosmetics industry, Australian consumers are becoming more

LINK
interested in organic and natural products. As a consequence, this market is
growing substantially, at around 17% per year. This social trend has led to a
market opportunity for Australian businesses.
Sample PEEL paragraphs

Government/Legal Technological Economic/Financial
Government and legal influences, Developments in the external Economic and financial impacts from
including regulations, can provide influence of technology can offer changes to the exchange rate can have
opportunities for Australian Australian businesses potential an influence on Australian businesses. If
businesses. In Australia, regulations benefits. When new technology Australian companies import products
or materials from overseas, and if the
of organic cosmetics are complex emerges, companies need to change.
Australian dollar falls, costs will increase
and the government cannot regulate Companies can take advantage of since imported goods will be more
international products. This creates new technology, for example, by expensive. Similarly, if the Australian
some problems for Australian using social media to improve brand dollar rises, goods from overseas will be
organic products trying to compete awareness and to communicate with cheaper and import costs will be
with international products that are their potential customers. The reduced. Therefore, changes in the
not truly organic. Since government owner of Nourished Life, Irene Australian dollar have a direct impact on
regulations are complex, Nourished Falcone, uses technology to costs, prices and profitability. Nourished
Life can offer a service to advise communicate with her customers. By Life is sensitive to exchange rate changes
customers about regulation and connecting with 30,000 Facebook for the Australian dollar. For example,
when the Australian dollar depreciated
about which products are truly followers and 10,000 Twitter
against the US Dollar, American goods
organic. This provides Nourished customers, Irene can provide advice become more expensive for Nourished
Life with a market opportunity to on the latest organic products and Life’s Australian consumers. This led to
build a loyal customer base and drive thereby build loyalty and traffic to higher costs for Australian consumers,
consumers to their website to buy her website, leading to increased and this may lead to reduced sales and
organic products, thereby increasing revenue and profits. profits for Nourished Life.
potential revenue for their business.

Internal influences
on a business Answers
Internal influences are Internal influences –
factors that the products, location,
organisation has some resources,
control over. This page management and
will explore the types business culture,
of internal influences stakeholders
on business.
(BOS 2010, p.14)
Draw connecting lines to match the type of internal influence with an

example of that influence.The first one has been done for you as an
example.There may be several examples for each influence. Some
examples may also be relevant to more than one influence.
a business decides to
move manufacturing
INTERNAL overseas new product packaging is
INFLUENCES introduced the company introduces
new uniforms for
a new cloud-based workers
version of the product is the company introduces
developed a bonus and incentive
products scheme for sales staff the company has an IPO
(initial public offering) of
shares to obtain funds
new computers are
leased
location some staff are
retrenched
the company moves to
employees are bigger offices closer to
resources encouraged to do a day suppliers
of charity volunteering a new marketing director
during work time is hired
a new ‘innovation of the
management month’ award is
the company is introduced
restructured new product lines are
released
business culture
Casual Friday is
introduced
new suppliers are found
for raw materials new machinery is
purchased
a workplace diversity
policy is introduced
Finding internal influences
in a case study Answers
Skim and scan the case study and underline wordings related to
internal influences on the business.
SurfStitch is a world leading online retailer of in France, including an 8,000sqm purpose-built

sports and youth apparel. So what has driven the distribution center. SurfStitch Europe offers
growth of this business, from a garage in Sydney’s customers the options of multi-currency
northern beaches to an international operation? transactions and a friendly multi-lingual customer
service department
The SurfStitch story is all about innovation. The
company is always on the lookout for new brands
to offer its customers. Recently, SurfStitch released
a new range of fitness clothing and accessories,
bringing its total to over 900 brands and 20,000
products. Beyond retail, SurfStitch aims to become
a destination online site for customers to connect
with everything surf-related. To achieve this goal,
SurfStitch launched ‘The Lens’, a website that offers
customers a forum to share photos and ideas about
music, media and style. In addition, SurfStitch has
acquired two new surfing websites: Magicseaweed
and Stab Magazine. Magicseaweed is the world’s
leading online surf forecaster and user generated
surf content network. Stab Magazine is the world’s
leading online surf publishing network and a social Founders of SurfStitch, Lex Pedersen and Justin Cameron
media hub in surfing. In total, Magicseaweed and
Stab Magazine have over 2 million unique users, It takes special people to build such a dynamic and
providing SurfStitch with the opportunity to innovative business. The fast pace and energy that
capture and influence customers at all points of the surrounds action sports is at the core of the
surf and action sports lifestyle cycle. SurfStitch organisational culture. SurfStitch has
focused on creating a youthful and entrepreneurial
These developments have helped to drive the environment for their employees, where high
expansion of SurfStitch, both in Australia and performance and innovation are globally recognised.
overseas. Originally, the business was launched out SurfStitch now employs in excess of 400 people
of a garage on Sydney’s Northern Beaches in 2007 globally in logistics, finance, technology, buying and
by Lex Pederson and Justin Cameron. In November marketing. The company offers employees the
2011, the business relocated to Burleigh Heads on unique opportunity to travel the world to work in
the Gold Coast in Queensland. This move provided a range of iconic locations including Australia (Gold
the business with warehouse facilities that were big Coast), UK (London) and USA (Southern
enough for its growth ambitions, and a location in California). There is no doubt that SurfStitch
the heart of the surf culture. In order to service its employees are the main ingredients in the
international customers, SurfStitch Europe was company’s global success strategy.
established in 2012 with a dedicated headquarters
Writing for success in business studies (Teacher’s Book) 41 Images and case study information used with permission
Literacy Works
Planning to write about
internal influences Answers
Our purpose for writing is to respond to this
assignment instruction:
Explain how internal influences can impact
on business opportunities.
Complete the table below to explain the main internal influences on

SurfStitch.You will have to think about the positive and negative
impacts on the business. Not all of these are mentioned explicitly in
the case study, so you will have to think of some effects by yourself.
Relate to the
Internal SurfStitch case Explain how the influence impacts on business opportunities for SurfStitch. Use
influence study cause and effect language.
What products and Explain the positive impact of products on SurfStitch’s business.
products services are offered Releasing new products and having a huge range of brands is a benefit for customers because
by SurfStitch? customers are attracted to the website and SurfStitch can gain competitive advantage. SurfStitch
SurfStitch regularly also offers a free additional benefit for its customers, an online forum called ‘The Lens’. This
releases new website, and the surfing websites bought by SurfStitch, add value for customers and therefore give
products and it has customers an additional reason to access the website and build the credibility of the SurfStitch
900 brands and brand.
20,000 products.
SurfStitch also Negative factors related to products were not presented in case study. Can you think of any?
offers its Having 900 brands and 20,000 products could be a challenge for SurfStitch as it may be difficult to
customers a control product quality and keep stock levels high for so many different items. If inventory is not
website called ‘The managed carefully, customers could become frustrated with poor service or waiting time for their
Lens’ as well as orders, leading to reduced customer traffic to the site. There is also a risk for SurfStitch in buying
access to surfing the surfing websites because these could take the company’s attention away from their main
news websites. business, which is retail fashion.
Where is the Explain the positive impact of office location on SurfStitch’s business.
location location of the The location of the business in the Gold Coast puts SurfStitch at the heart of the surf culture in
business? Australia. Consequently, SurfStitch is located near its customers (surfers) and staff can see any
trends that are developing in the surfing world, thus helping SurfStitch stay up to date. The huge
warehouse space in the Gold Coast and in Europe helps SurfStitch keep enough inventory so that
The business has they can offer a wide range of products that are always in stock. The location in France is close to
two locations: European customers and offers French-speaking staff. Therefore, SurfStitch can offer better
Gold Coast and customer service to its European customers, ensuring that global expansion is successful and that
France. risk is spread across two markets.
What are the possible disadvantages of having offices in both Europe and Australia?
Having offices and warehouses in two locations could create problems for SurfStitch. As
management staff are based in Australia, they have to co-ordinate products and strategies
between two different markets in different time zones. This could lead to communication
problems within the business. Having two locations could split management’s attention and create
more work and stress for the owners, making them less effective.
business What business culture Explain the positive impact of the internal business culture on SurfStitch’s business.
has been created at If SurfStitch’s employees are young, they can understand their customer’s needs more clearly. The
SurfStitch?
culture SurfStitch has created
opportunity of international work placement may motivate employees to be innovative and to
a youth-based work hard.
management culture
which fits its youth- Can you think of any potential challenges involved in having a youth based employee culture?
oriented fashion If the workplace is not diverse, with a range of ages of employees, more mature and experienced
products. Employees employees may not be hired, leading to a deficit of skills and talent within the organisation. If
have the opportunity employees are encouraged to relocate globally, skills and talents in Australia may be lost.
to travel the world.

Writing about
internal influences Answers
POINT The range of products offered by a business is a significant
internal influence on the success of the business.
Using the table
on page 42, plan
and write a
PEEL
EXPLAIN If the business offers products and services that are relevant
paragraph and desirable for customers, the business can build revenue
about how and profitability, leading to success.
products can
For example, SurfStitch regularly releases new products and it
impact on the
has 900 brands and 20,000 products. SurfStitch also offers its
success or
failure of a EXAMPLE customers a website called ‘The Lens’ as well as access to
surfing news websites. Releasing new products and having a
business. Use
huge range of brands is a benefit for customers because the
SurfStitch as an
range draws customers to the website and gives SurfStitch
example.
competitive advantage. SurfStitch also offers a free additional
Choose positive
benefit for its customers, an online forum called ‘The Lens’.
or negative
This website, and the surfing websites bought by SurfStitch,
impacts to
add value for customers.
explain. LINK
The websites bought by SurfStitch add value for customers and
secure future profits for the company.
Sample PEEL paragraphs

Location (positive impacts) Business culture (positive and negative impacts)
P: The location of a business has the potential to impact on P: The business culture of a company is an important
the success of the business. influence on the direction of a company and its possible
E: If a business is located close to its customers, it can attract market success or failure.
more sales and increase revenue. Also, by choosing a location E: If a company creates a culture of innovation that attracts
that has the right facilities, such as adequate warehouse space, the right employees, it can understand and meet the needs of
the business has the resources it needs to support growth. its customers. However, if a company creates a culture that is
E: SurfStitch’s location in the Gold Coast puts SurfStitch at not diverse for all types of employees, the full range of
the heart of the surf culture in Australia. Consequently, possible talents and skills of the workforce may not be
SurfStitch is located near its customers (surfers) and staff can accessed.
see any trends that are developing in the surfing world, thus E: For example, SurfStitch has created a youth-based
helping SurfStitch stay up to date with its customers. The management culture which fits its youth-oriented fashion
huge warehouse space in the Gold Coast and in Europe helps products. Employees have the opportunity to travel the world
SurfStitch keep enough inventory so that they can offer a for SurfStitch, which can motivate the staff and encourage
wide range of products that are always in stock. The location them to be productive and work effectively. If SurfStitch’s
in France is close to European customers and offers French- employees are young, they can also understand their
speaking staff. Therefore, SurfStitch can offer better customer customer’s needs more clearly. However, if the workplace is
service to its European customers, ensuring that global not diverse, with a range of ages of employees, more mature
expansion is successful and that risk is spread across two and experienced employees may not be hired, leading to a
markets. deficit of skills and talent within the organisation. A result of
L: Therefore, the location of SurfStitch's business in two employees relocating overseas may be that resources, skills
places: Gold Coast and France, provides the foundation for and talents in Australia may be lost.
success and increased profitability in the future. L: Consequently, business culture in SurfStitch demonstrates
the potential advantages of a youth-based culture but also the
possible limitations for the potential success of the business.

Teaching
Module 6
Evaluating the
business world
Key concepts
the language of positive and negative
In this module, students will learn about: evaluation
criteria for evaluating business actions and how to evaluate business decisions in a case
decisions study.
Teaching Evaluative word search

Bring in a few media articles about business success and
suggestions
failures. Students can search for positive evaluation words
about success and negative evaluation words about failure.
Add any new words to a master list (based on p46) and
display in the classroom.
Evaluative language in Build the field about Silicon

business Valley and start-ups
Students who achieve success in Business Studies write in a
Before reading the Tanda case study on p47, build the field
formal, objective and technical way. Students who write
with students. Students will need to understand who venture
using personal and casual statements tend to attain lower
capitalists are and what they do (ie. invest in a company in
marks. It sounds obvious, but many students may not
return for a share of profits or share of ownership). Venture
understand that writing is different from speaking
capitalists can base their decision to invest on different
factors: number of users, revenue, innovative technology or
Students need to learn that they should not use their
market potential. Many tech start-ups base a business model
everyday, social language when writing about business.
on the concept of ‘scalability’, that is, the potential to grow
Personal and subjective opinions are not valued in business.
into a huge company quickly.
Instead, all evaluations need to be related to business goals
and supported by facts, evidence and reasons. Even if an
Class discussion could cover these questions:
examination or assignment question requests an ‘opinion’ or
‘judgement’ from the student, it is a business opinion or a What are investors looking for in a small business?
business judgement, not a personal opinion. This module will Why do many tech start-ups go to Silicon Valley?
teach students how to evaluate like a business expert. What is a Venture Capitalist?
What reasons might companies have for staying in
Australia?
Class discussion - how do we ‘Shark tank’ TV

evaluate in business? It may be interesting to watch an episode of ’Shark Tank’ (or
‘Dragon’s Den’ from the US) to see small businesses pitching
Hold a class discussion about the basis for our judgement in to potential investors. Episodes are available on YouTube.
business. You can discuss the role of:
sales / revenue Show a pitch from a start-up and ask students if they would
market share invest and explore reasons why and why not. Students can
net profits choose from the list of positive and negative evaluation
dividends words in their reasons (p46).
other measures of success.
Use some media articles to explore why companies are When the ‘sharks’ do invest, what are their reasons? What
considered successful or not. are the bases for their evaluations?

Evaluating the business world
Answers
Business students are required to evaluate or
Evaluate
judge people (e.g. managers, business owners) or
Make a judgement based on criteria;
things (e.g. decisions, results, costs). In general, the determine the value of
main criteria for evaluating relates to the overall Justify
goal of business, which is to increase revenue and Support an argument or conclusion
Assess
reduce costs, leading to increased profits. Make a judgement of value, quality,
In the box below, you can find examples of outcomes, results or size
(BOSTES 2012)
questions that require students to evaluate.
Is supply chain management important to this Outline two strengths of the café.
business? Justify your answer.
Assess the importance of using a mix of
Evaluate their decision to adopt a niche market promotional strategies in the marketing of
approach. goods and services.
Assess strategies that management may use to Evaluate whether low-risk practices are
respond to influences on operations. preferable to high-risk practices to achieve
effective change.
Assess strategies that management may use to
respond to key influences on human (Board of Studies NSW, 2013; 2014a; VCAA 2013)
resources.
3-step process: how to evaluate

State your evaluation or Explain reasons for Link your
judgement of a business action or your evaluation using reasons to the ultimate
decision using the language of cause and effect goal of business (to
evaluation (see p46). language. increase revenue, reduce
costs and, therefore,
increase profits).
Supply chain management is important because it will affect profits and
for Acme Pty Ltd sales.
Read this
sample answer. Pat and Robin can use their niche marketing approach to avoid direct
Underline the competition with larger department stores. They can recruit more
evaluation (in specialised staff that will have greater product knowledge and stock
the middle of more specialised equipment that will allow them to gain a competitive
the answer). advantage. This should help them to gain sales and profits. For this
Reference to reason the niche market approach would be best for them. The decision
profits in bold. to adopt a niche market by Robin and Pat may help them maximise their
profits if the niche market is big enough. (BOS 2013 Sample answers Q25b)

Positive and negative evaluations
Answers
Business writing can evaluate positively or
negatively. Evaluation is based on how a decision
or action impacts on profitability and on A noun is a thing, person or place.
stakeholders. We do not use the terms ‘good’ or An adjective, or describer, gives us
‘bad’ as these are not technical business terms. more information about a noun.
Below will you find a list of positive and negative
evaluating language for business.
Positive Negative
nouns (things) nouns (things)
advantage disadvantage
benefit problem
growth decline
profits costs
revenue tax
income expenses
dividends expenditure, spending
returns
adjectives (describers) adjectives (describers)

effective recommended unsatisfactory unfocused
efficient appropriate ineffective illogical
high quality ground-breaking inefficient rushed
cost-effective advantageous inadequate poor
time-effective competent incompetent understaffed
successful unique unimpressive undercapitalised
environmentally- aggressive (eg. plan) weak (of profits) limited,
friendly targeted expensive minimal, reduced
sustainable practical disorganised (of costs) high, significant,
innovative well-designed unclear increased
advisable well-planned
suitable well-executed
viable (of profits) massive, huge, 1. Bad planning can lead to bad decisions.
impressive significant, increased, Rushed and disorganised planning can
entrepreneurial promising lead to ineffective decisions.
2. The product achieved good sales. The

product achieved promising/impressive
sales.
Using the lists of positive and
negative evaluation words above, 3. The marketing strategy was bad. The
change the words ‘good’ and marketing strategy was inadequate.
‘bad’ to more appropriate
business words and re-write each 4. The management structure is good. The
sentence on the lines provided. management structure is appropriate.
Evaluating a case study
company’s decisions Answers
Most tech companies are told that Silicon Valley is
the best location, so they can rub shoulders with
venture capitalists and attract investors. However,
Brisbane company Tanda has turned its back on
the biggest tech startup scene in the world and
has chosen to keep its head office in Australia.
This excerpt from the Tanda website’s blog,
written by the co-founder, Alex Ghiculescu, Read more about
Tanda on page 13.
explains the reasons why Tanda is staying home.
Positive evaluation words. are

in bold. Negative evaluation
words are underlined.
Why we chose Fortitude Valley

(Brisbane) over Silicon Valley
Alex Ghiculescu, Co-founder, Tanda
Like any other business, we’re always asking many more successful businesses doing things the
ourselves if what we’re doing is best for the future, old fashioned way – still creating jobs and adding
and a common question that pops up is the most maximum value to their customers at the same
suitable location. Late last year I was invited to San time. We felt more inclined to do that.
Francisco and Silicon Valley to check out the
biggest startup scene in the world. It was A lot of people, upon seeing a group of young
fascinating and a really worthwhile trip, but at Aussies abroad, would ask, “So when are you all
times I found it equally uncomfortable about how going to move your startup over here?” For us it’s
different Valley culture is to what we have back an interesting question – and the answer is, “Not
home. for a while yet.” A lot of startups in our field have
taken on overseas money and put it all towards
We’ve always felt that if you make a high quality capturing US market share, and time after time we
product, then you’ll be able to successfully sell it, found their product less useful and irrelevant for
support it, and market it from wherever you Australian businesses. Paying staff in Australia is a
like, and eventually you’ll have a viable and huge and time-consuming problem and to do it
sustainable business. We also think that the best right you need software that’s specific, relevant
way to make sensible product decisions is to fund and easy-to-use. For exactly that reason, we’re
the business from our customers, because it forces excited by the prospect of being able to fix payroll
us to only build well-designed and relevant headaches for every Australian business, rather than
products that people actually want. Venture by the possibility of striking it rich in a Californian
Capitalists in Silicon Valley seemed more concerned gold mine. We get most excited by the prospect of
with getting users rather than customers. A working with our customers to build a great
particularly striking moment for me was when one product that solves problems that they have, and
VC asked me why we had charged our customers that we understand, in a market we know and
money, and why we had even bothered with love. And that, in a nutshell, is why we stayed in
revenue, when we could have just given the product Australia.
away to drive usage. Adapted from https://www.tanda.co/why-we-chose-fortitude-valley-over-
silicon-valley/. Used with permission.
That approach might work for some, but there are

Evaluating business decisions
Answers
PROS of staying in Australia CONs of staying in Australia and
and not going to Silicon Valley not going to Silicon Valley
Tanda know and love the Australian Tanda may not attract money from
market. venture capitalists.
Read the case Tanda have a product that is specific, Tanda may not be able to break into
study on page relevant and easy to use in Australia. the US market so they may be limiting
47, then fill in Tanda prefer to make a high quality their potential.
the table to product and solve problems here. Tanda will not be in contact with
explore the By staying in Australia, Tanda can other tech startups.
pros and cons create jobs and add maximum value
of Tanda’s for customers.
decision.
Answer the
question by Should Tanda stay in Australia or move to Silicon Valley?
following the
steps below. Sample answer
State your
Tanda should stay in Australia so they can focus on a high
evaluation or quality product in a proven market. Tanda knows the
judgement of a Australian market well so they are able to solve a huge
business action or and time-consuming problem for their Australian
decision using the customers. By developing a high quality and relevant
language of evaluation product for Australian businesses, Tanda can maximise
revenue and profits in a proven market. On the other
Explain your
reasons for your
hand, by staying in Australia, Tanda may be sacrificing the
evaluation using opportunity to access the US market and also to gain
cause and effect additional funds from venture capitalists. As a result, in the
language. future, after Tanda has consolidated their market presence
in Australia, Tanda could consider expanding globally.
Therefore, Tanda can maintain their presence in the
Australian market and build their profits here, while also
reaching out to international markets to ensure the
Link your reasons to the
potential of their product is maximised.
ultimate goal of business

Teaching
Module 7
Recommending in
the business world
Key concepts
resources for recommending: modality and
In this module, students will learn about: evaluative language
golden rules for recommending how to write a paragraph that makes a
recommendation.
Teaching High and low strength

statements
suggestions Enlarge this list of statements about business news (or
update it with the latest news) and print it for students.
Students cut out the statements and sort them into low and
Make a poster high modality statements. Low strength statements will be
weaker, with low modality, while high strength statements
Use the language for recommending on p51 to make a will be stronger with high modality.
poster for the classroom wall. Students will need to learn to
use a combination of these language resources for 1. The Reserve Bank must keep interest rates low to
recommendations, so it’s useful to refer to them frequently.
support real estate investments.
2. As consumers are paying less for petrol, they may
Establishment options have more funds available for retail spending.
3. Business could save money on employee travel by
Many of the activities in this module relate to the options for
establishing a new business: starting from scratch, buying an using AirBnB instead of hotels.
existing business or buying a franchise. Students will need to 4. Falling commodity prices will certainly cause problems
learn about these options, and the advantages and for the mining companies.
disadvantages of each, before attempting this module. The 5. The technology retailer Dick Smith may be required
table on p56 provides an opportunity for students to apply
their knowledge to a case study (T&M Fitness). This page to pay $15 million in backpay to employees who were
may be too tricky for students if they have not yet covered underpaid.
establishment options in class. 6. Health authorities have to ensure that all food
manufacturers comply with health and safety
Before doing this module, it would be helpful to build the
field by revising establishment options and their features in a standards.
class discussion. 7. Telstra might introduce a policy of unlimited annual
leave.
8. Government scientists at the CSIRO have been
Business editorials in the media informed that they must improve their digital skills or
they may be sacked.
Do a survey of editorials in online media sources (e.g. online
newspapers, Business Review Weekly, Financial Review etc). 9. Chinese companies must be prevented from buying
In editorials, how strong are the recommendations. Do they too many Australian companies.
use high or low modality? What is the effect on the reader? 10. The Australian Competition and Consumer
What evidence is given to support recommendations? Commission has recommended that Woolworths
Answers to activity on the right should definitely be fined for selling faulty products.
High modality: 1 4 6 8 9 10. Low modality: 2 3 5 7

Golden rules for
recommendations
Examples of questions
In your studies of business, you will be required to You have been hired as a consultant to write a report to the
pretend that you are a management consultant or management. In your report:
advisor to businesses. As a consultant, you are recommend a source of finance for the factory
expansion.
asked to give advice or provide recommendations.
A scenario, or imaginary situation will be provided, You have been employed as a consultant by the owners.
Write a report to the owners recommending marketing
then you will be asked to make recommendations. and financial management strategies to improve the
The box on the right gives you examples of performance of the business.
questions you might be asked. Read the golden Conclude with a recommendation as to which
rules on this page so you can learn how to management practice would be most effective for the
recommend like a business expert. organisation. Include a reason for your recommendation.
(BOSTES 2013, 2014a; VCAA 2013)
STRONG BUT NOT TOO STRONG NO GUARANTEES

Recommendations should be strong but not too In a dynamic and changing business environment,
strong. As a consultant, you have been hired by a there are no guarantees of success. Therefore, you
company to provide advice. The company should not promise or presume that the strategies
respects your expertise, but in return, it is you recommend will work perfectly.
important that you show respect for the
company too. You can do this by making BE OBJECTIVE AND IMPERSONAL
recommendations objectively, without being You should present your recommendations as
overly critical of the company’s actions. objective and impersonal statements rather than as
Therefore, you should avoid making insulting or your opinions. After all, you are basing your
personal criticisms of the company’s management recommendations on business theory which you
or decision-making. did not invent.
DON’T DO
criticise a company’s actions too harshly acknowledge past mistakes respectfully
The business made a series of stupid and disastrous The business has identified that some past decisions
mistakes. have not been effective.
give commands to the company owners (using second recommend to the company using third person (ie. not
person, ie. you) saying ‘I’ or ‘you’)
You should implement these strategies. The business should implement these strategies.
guarantee that your strategies will work offer your recommendations as one option
If the business increases the product price, profits If the company increases the product price, profits
will rise. may increase.
assume that your recommendations can stand alone give reasons for every recommendation
Promotional pricing is the best strategy. Promotional pricing is the best strategy because sales
are falling and the business needs to renew consumer
interest in the product.
give personal opinions make your recommendations objective and impersonal
I don’t think this is a good idea. This may not be the most effective strategy for the
following reasons: …

Recommending using
modal language Answers
Modal language helps the writer to take a position or
to present a point of view.
Successful
Stronger language has higher modality e.g. must, should.
students use
Weaker language has lower modality e.g. may, could.
modal language
for
The table below shows useful modal language for recommending.
recommending.
Language for Higher modality Medium modality Lower modality

recommending
modal verbs must, ought to, need will, would, should can, may, could,
(note: modal verbs are to, has to, had to, are might
combined with other verbs required to, are
e.g. must go, will go, can go) obligated to
modal adverbials certainly, definitely, probably, usually, possibly, perhaps,
(note: adverbials give us more always, never, generally, likely, maybe, sometimes
information about what is absolutely, in fact unlikely
happening)
modal nouns certainty, necessity, probability possibility
requirement, obligation
useful sentence starters It is essential that… It is likely that… It is possible that…
It is necessary that… This suggests that…. The business could
It is required that… The business should ... consider ...
The business must ...
What licenses do I need to have a market stall?

Whether you are selling cupcakes at your local farmers' market or beaded necklaces at
Read this the weekend craft fair, it is likely that you will have to obtain some type of registration,
paragraph. licence, permit or insurance to run your stall. If your market stall obstructs the footpath,
Find and you must apply for a footpath usage or obstruction permit from your local council. Many
underline market organisers require insurance against the possibility of accident or injury. You may
the modal be obligated to obtain both public and product liability insurance so that you are
language. definitely covered. If you sell fruit, vegetables, or other goods by measurement (e.g.
weight, length or volume), you are required to comply with trade measurement laws.
Trade measurement laws cover how you measure and label your goods, and the
measurement tools (e.g. scales) that you can use. Your legal requirements may differ
depending on the type of product and quantity you sell. The food at a market must
comply with the Food Standards Code. (Source: www.business.gov.au/licences)
What is the difference between
recommending and explaining? Answers
There are three main differences between an explanation and a recommendation:
Explanation Recommendation
Purpose (or The purpose of an explanation is to The purpose of a recommendation is
genre) show how or why something happens to advise someone about what they
should do.
The writer of a recommendation has

Relationship The writer of an explanation is distant power. The writer is an expert
between the from the reader and does not refer to providing advice to the reader who is
writer and the reader directly. the client.
reader
Recommendations use the language of

Language Explanations use cause and effect
modality and evaluation.
resources language to show the implications of
Recommendations also use cause and
business actions and decisions and
effect language to provide evidence or
strategies.
reasons to justify recommendations.
Which paragraph below is an explanation and which one is a

recommendation? How can you tell? Refer to the three differences
above and write your reasons on the lines provided.
Paragraph 1: Rob and Thao should buy an existing Paragraph 2: Buying an existing business has benefits but
business. As they have not run a café before, they may find also some disadvantages. If a business owner purchases a
it too difficult to start from scratch. If Rob and Thao buy a business that is already running, they can use the existing
business that is already operating, they can use the existing stock, equipment, premises and staff. As a consequence, the
stock, equipment, premises and staff, which are significant transition to the new business may be easier and more cost
advantages. Another benefit is that the café’s existing effective. Another benefit is that existing customers can
customers can continue to come to the café, giving Rob and continue to purchase goods and services, leading to a
Thao a customer base to build from. If there are any customer base for the new owners. On the other hand,
teething problems for the business, existing employees can existing employees may cause staffing problems with the
assist them. For these reasons, buying an existing business is new owners, as a result of possible hidden problems with
the most effective establishment option. the business. Buying an existing business can also be
expensive due to the purchase of goodwill.
This paragraph is a recommendation
This paragraph is an explanation
How can we tell? It advises the owners what to do ‘Rob
and Thao should …’. This makes the author powerful, as if
How can we tell? It explains the benefits and disadvantages
they are an expert. Paragraph 1 also uses modal language
of buying and existing franchise. Cause and effect language is
(should, may, can) and evaluation language. Evaluative
language: positive – advantages, benefit; negative – difficult, used, such as: if, as a consequence, leading to, cause, due to,
problems. The paragraph also gives reasons using cause and as a result of. There is no recommendation or advice given.
effect language to support the recommendation.

How to recommend
Answers
In business, a recommendation needs to be supported by a reason or evidence.
State what the Use a Explain the reason why

business should conjunction the business should
Read this 3 step do using modal to show follow your
model for language cause and recommendation
writing a effect
recommending
sentence in
business. meet the needs of new
The company should
in order to customers and manage
hire more staff
growth for future profits.
Write 4 sentences about what new businesses should do to

maximise their chances of success.The success factor is provided in
the left hand column.Turn the success factor into a
recommendation, using modal language and add a reason.
Success factors New businesses they can understand

eg. conduct market should conduct so consumer demand and
research market research maximise sales and profits.
1. select the best

New businesses need to they have the best chance of
establishment option select the best so success.
(e.g. franchise or buying establishment option
an existing business)
New business owners they are located close to customers

2. find a good location must find a good location and suppliers, and therefore, they
so that
for the business for the business can maximise revenue.
New businesses must effective business planning is

3. create a business plan create a business plan essential for financial management
since
and growth.
4. consider various New businesses should different sources of finance suit

consider sources of because various stages of business growth,
sources of finance finance to maximise the chances of success.

Making recommendations
stronger or weaker Answers
1. All companies might like to consider complying with Workplace
Health and Safety legislation. All companies must comply with
Workplace Health and Safety legislation.
Re-write these
2. Business owners could meet their responsibilities to avoid health
statements and
and safety problems for employees, customers and the public. Business
make them
owners have to meet their responsibilities to avoid health and safety
stronger by
problems for employees, customers and the public.
using modal
language from 3. Under WHS legislation you might provide safe premises, safe
the box below. machinery and safe systems of work. Under WHS legislation you are
required to provide safe premises, safe machinery and safe systems of
STRONGER
modal language
work.
must 4. In addition, business owners might provide training and instruction
ought to for employees. In addition, business owners are obligated to provide
needs to/need to
training and instruction for employees.
has to/have to
is/are required to 5. Business owners may identify risks and implement strategies to
are/are obligated to eliminate or mitigate these risks. Business owners must identify risks
always
and implement strategies to eliminate or mitigate these risks.
certainly definitely
absolutely
6. Acme Pty Ltd must implement a social media campaign in order to

definitely connect with younger consumers. Acme Pty Ltd could
implement a social media campaign in order to possibly connect with
younger consumers.
Re-write these 7. The owners of Acme have to spend more on advertising and
statements and promotions so that they will certainly improve their market share. The
make them owners of Acme could spend more on advertising and promotions so
weaker by using that they might improve their market share.
modal language
from the box 8. Another strategy that Acme needs to implement is a reduction in the
below. product price so they are guaranteed to be competitive. Another
strategy that Acme could consider implementing is a reduction in
the product price so they are likely to be competitive.
WEAKER 9. For their mature products, Acme is obligated to update the branding
modal language and packaging. For their mature products, Acme could update the
can, may, could, might branding and packaging.
sometimes
possible, possibility 10. Poor-performing products must be deleted and sold off. Poor-
likely performing products may be deleted and sold off.

Writing a recommendation
paragraph
A recommendation paragraph is
different from a PEEL paragraph.
Business reports
The POINT becomes a REEL paragraphs
need REEL
RECOMMENDATION. use modal
recommending
paragraphs as So, the PEEL paragraph becomes a language AND
well as PEEL REEL paragraph. they also use
paragraphs. cause and effect
language.
RECOMMENDATION
Recommend something to the business. Use modal
language.
EXPLAIN
Explain the business theory behind your
recommendation. Use cause and effect language.
EXAMPLE
Relate the theory and your recommendation to the
scenario / case study and exactly how your recommendation
will impact the business.
LINK
Link the recommendation to profitability and costs.
Link to the business problem you are solving.
Acme Pty Ltd must ensure a safe

workplace for staff and customers.
Creating a safe work environment
is critical to the success of every
Read this REEL business, and is one of the best ways to
paragraph. The retain staff and maximise workplace
writer is productivity. Under Workplace Health
making a and Safety legislation, Acme Pty Ltd must
recommendati- provide safe premises, safe machinery and
on to a equipment, safe systems of work,
company, information and training, and a suitable
Acme Pty Ltd. working environment. Therefore, a safe
working environment is essential for
Acme’s profitability and success.
Recommend for a scenario
Answers
Scenario
Todd and Mike, friends from school
T & M Fitness
days, are thinking of opening a fitness
A scenario is like centre and gym. Neither of them have any experience running a business, but
a case study, but they are very interested in the fitness industry. Todd is a qualified personal
it is fictitious. trainer and Mike has been a teacher of PDHPE. Todd and Mike are
considering establishment options: whether to buy an existing business, buy a
franchise or to start their own business. You have been hired as a business
consultant to advise them on the best establishment option.
Facts about the fitness industry Competition in the market is fierce, especially
due to new entrants such as Anytime Fitness
The fitness industry is currently worth $1.4 who offer low cost memberships and are open
billion in Australia and it is set for continued 24 hours a day.
growth over the coming years. (Source: ABS) Competition has been driving membership fee
Fitness is increasingly popular and there is prices down for consumers.
growing awareness among consumers about Gyms can be expensive to set up, especially due
healthy living and the need to exercise regularly. to the high cost of quality fitness equipment.
Use your knowledge of establishment options to fill in this table.

Identify the strengths and weaknesses of each option for Todd and
Mike, and considering the facts about the fitness industry.
Establishment Advantages Disadvantages
Todd and Mike would have freedom to be Starting from scratch is a high risk option for
Starting from creative in the way they run their new Todd and Mike as there is no support for the
scratch business; they can start small and control new owners and the market is highly
growth; this is a cheap option as they do competitive; it may be hard for Todd and Mike
not have to pay for a franchise or goodwill. to get a business loan as they have no
experience; it may take a long time to generate
consistent revenue and to build a customer
base.
Existing customers (gym members) from Goodwill could be expensive; there may be
Buying an existing the old business mean instant revenue; hidden problems in the existing business;
business existing stock and equipment can be employees may resent change and cause
maintained; existing employees (e.g. trainers problems for Todd and Mike; the existing image
or reception staff) can help the new owners of the business may be hard to change.
to adjust.
New owners can be supported with Todd and Mike will not have as much freedom
Buying a franchise training by the franchisor; in a competitive as they have to follow the franchisor’s rules; the
market, the branding of a large franchise cost of buying a franchise can be high; profits
might minimise risk; the franchisor can must be shared with the franchisor and franchise
advise Todd and mike on advertising and fees may also increase the costs of the business;
marketing; it may be possible to get Todd and Mike have to rely on decisions made
cheaper deals on gym equipment. by the franchisor.

Writing recommendations
Answers
As a business consultant for Todd and Mike, advise them on two
aspects of their business: whether or not they should lease or
purchase gym equipment and what option they should choose for
T & M Fitness
establishing their new business.
Should Todd and Mike lease or buy their gym equipment?
RECOMMEND Todd and Mike should lease gym equipment for their
new business.
Recommend
Explain the
business theory Equipment can be a significant expense when
EXPLAIN establishing a new business. In the fitness industry, gym
behind your
recommendation equipment is very expensive.
using cause and
effect language.
Explain the Leasing is a less expensive option because Todd and Mike will
EXAMPLE not have to pay the full price of the equipment such as
impact on the treadmills and weights machines upfront. Also, if the
business. technology for equipment improves, Todd and Mike can easily
access the new equipment under the lease agreements.
Link your main
point to profits LINK Since the costs of gym equipment are very high, leasing is
and costs. the best option for Todd and Mike to help them minimise
costs.
What establishment option should Todd and Mike use?
Possible answer
Recommendation: Todd and Mike should purchase a franchise for their fitness business.
Explain: The fitness industry is a huge market, worth $1.4 billion, so it has the potential
Write a
for growth and profits. However, the fitness industry is also highly competitive, with many
paragraph that
large players such as Fitness First and Anytime Fitness. Gyms are also expensive to set up
recommends
due to the high cost of equipment. Therefore, it could be difficult for new players to enter
the best option the market and achieve success.
that for Todd
and Mike to Evidence: Todd and Mike have no experience running a gym so the risks of starting a new
establish their business are high. As a result, buying a franchise could provide Todd and Mike with
new business. training and support, as well as marketing help. However, the costs of a setting up a
business will be high, due to the franchise fees, so Todd and Mike will have to manage
their finances carefully and they may have to wait a long time for profitability.
Link: Consequently, a franchise provides the best opportunity for Todd and Mike to
achieve success in the highly competitive fitness industry.

Teaching
Module 8
Interpreting a
question / instruction
Key concepts
how to interpret the parts of an examination how to plan a response to a question or
or assignment question or instruction instruction.
Teaching Three types of practice

Using past examination papers or sample questions, students
suggestions
can practice:
1. identifying the purpose of a question (e.g. explain, give

recommendations etc)
2. identifying the parts of a question (scenario,
Common problems in statement, task words, scope)
examination situations 3.
4.
planning the headings they would use in an answer
planning a ‘word budget’, that is the number of words
Research shows that successful students can plan and write a they would spend on each part of the answer and/or
response in the time allowed, adhering to a word limit. Less the amount of time they would spend on writing.
successful answers tend to have these characteristics:
This practice can be done without composing the answer in
Students write everything they know about a topic full. In this way, students will become accomplished at
without addressing the question or instruction analysing and planning an answer. The other modules will
specifically or directly. help students to complete the picture by mastering writing
Students write a page or more of description about skills as well.
the case study then run out of time to answer the
question or follow the instruction.
Students only answer one or two parts of a multi part
question and then run out of time/energy. Getting to know my own
writing
Students should be encouraged to explore their own writing
Why we need to teach this in style and habits so that they know how many words they
write per page. Large writing may mean 200 words per page
senior school while students who write small ‘chicken scratching’ letters
may write 400 words per page. Students need to know how
It may seem strange to be teaching examination skills and many pages they will have to write in an examination.
essay planning skills in Year 11. Why don’t students already
have these skills? Research shows that the demands of In these days of computer based texts, students may need
academic writing increase substantially in Year 11. Also, in help in writing quickly in timed conditions. Practise building
junior secondary school, not all subjects require students to up student stamina for writing by giving 5 minute timed
write longer texts, and many schools do not have regular writing tasks related to the syllabus topics. Gradually build
examinations involving writing extended responses. In some up the timed writing tasks to 10 and 15 minutes. These can
cases, even though skills may have been taught in lower year also be done for homework to save precious class time.
levels, students may not have been paying attention or they
may not have had the chance to implement these skills. For Ask students to share their writing with other students to
these reasons, building interpretation, planning and writing find out whether their writing is legible for potential
skills are essential for success in senior schooling. markers / assessors.

Parts of a question or instruction
Answers
Assignment and examination questions in Business If you practise identifying the parts of the question
Studies and Business Management can be quite or instruction, you will be able to plan your
complex. Here are the parts or stages of a answer more quickly and easily.
question or instruction.
task word A task word tells you what to do. A scope The scope is the specific list of
task word can be a wh-question: content to cover from the
who? what? when? where? how? why? business theory
Or a task word can be an e.g. two establishment options
instruction word: three sources of finance
e.g. analyse, explain, discuss, identify
More than one task word may be
needed to tell you what to do:
e.g. discuss the reasons why…
statement A statement is a quote that you scenario A scenario is a story that you
have to respond to, agree with or will have to address to show your
disagree with. knowledge. The scenario can be
e.g. ‘Innovation is critical for success’. factual or invented.
The statement may be in
quotation marks.
statement
Example 1 ‘The only constant in business is change.’
With reference to this quote and to one business you have studied, scope
discuss the strategies used by the business to manage change.
task words
scenario
Example 2 Emu Uniform Manufacturers Pty Ltd are a successful business based in NSW.
They currently supply a range of school, sport and work uniforms to a large
number of customers throughout Australia. They are known for their
outstanding customer service and high quality products. Sales have been
increasing for many years and they have recently received a large long-term
contract to supply uniforms to a major company. This will require them to
significantly expand their output. To do this, the business will have to
outsource overseas or spend $5 million to expand its existing factory in NSW.
You have been hired as a consultant to write a report to the management. In

your report:
recommend a source of finance for the factory
expansion scope
task words discuss outsourcing overseas compared with the factory
expansion
explain the global factors that need to be considered if they
decide to use outsourcing as an operations strategy.

Interpreting the question or
instruction Answers
Identify, circle or highlight the parts of these assignment
instructions / questions. An instruction will usually have a scenario
OR a statement, not both.
Question 1 Phillip and Janice worked in a bank, but had always wanted to scenario
run their own business. While on holiday in a small seaside
town, they noticed that the local general store and takeaway
food shop was up for sale. The business is the only one of its
type in the town, but the town is very small and seems to have
a reasonable large population only during summer and holiday
periods when the local camping and caravan park and other
holiday accommodation are all full. They are very interested in
purchasing the store, but realise they have to make a number of
important decisions before committing to making an actual offer
on the store.
As a business consultant, prepare a report that could be given

to Phillip and Janice. In your report, you should outline the
scope possible advantages and disadvantages of buying the store. task words
statement
Question 2 "Be in business for yourself, but not by yourself."
With reference to this quote and at least one case study,
describe three advantages of owning a franchise. scope
task words
Question 3 Analyse both the causes of workplace disputes and the scope
task words strategies used to resolve them.
statement
Question 4 “When you buy a business, you get what you pay for.”
Use your knowledge of business establishment options to scope
task words discuss this comment. Refer to case studies in your response.
Question 5 Bill and Jane have owned and operated a café in a busy scenario
restaurant area for many years. They specialise in fast healthy
food that is popular with 18-30 year olds. Recently a
multinational franchise opened in the area in response to an
expected increase in the population.
a) Outline two strengths of the café. scope

b) Outline two opportunities for the café.
task words
c) Discuss one marketing strategy that Bill and Jane could
use to respond to the threat posed by the opening of the
multinational franchise in the area.
statement
Question 6 Management in a large-scale organisation is faced with the
task word challenge of managing change effectively. Describe two possible effects scope
that change may have on the internal environment of an organisation. In
your response, refer to a significant change issue that you have studied.
Planning your writing
Answers
Read the assignment question below
Successful students plan their
and evaluate the plans by Student A
answer before they start to write
and Student B.
These photos represent the three main establishment options for a new fast food business.
Explain three risks involved in each option and use case studies as examples to support your
ideas. Your answer should be approximately 800 words.
Plan by Student A Plan by Student B
Introduction – 150 words Overview of establishment options – 100 words
Advantages of buying a franchise - 100 words Case study of a franchise – 200 words
Disadvantages of buying a franchise – 100 words Case study of buying an established business –
200 words
Advantages and disadvantages of buying an
established business – 200 words Case study of starting from scratch – 200 words
Advantages and disadvantages of starting from Risks of the different establishment options – 100
scratch – 50 words words
Note the pros and cons of each plan here: Neither of these plans are suitable. Student A’s plan includes the risks of each
option but it also includes the benefits, which is not required by the question. There is no specific reference to a case study in
the plan. Some establishment options have a higher word count than others, for no reason. Student B’s plan uses case studies
which is required by the question. However, it only focuses on risks briefly at the end, in 100 words. Most of the response
provides an overview of case studies, which does not directly address the question.
Plan
Introduction: Summary of the risks of the three options 100 words
In the box on the Risks of starting from scratch (including a case study) 200 words
right, write a plan
for an extended Risks of buying a franchise (including a case study) 200 words
response that
follows the Risks of buying an existing business (including a case study) 200
instructions exactly words
in 800 words. Conclusion – summary of main risks for the case studies 100
Teaching
Module 9
Writing an
extended response
Key concepts
In this module, students will learn about: what to write in a conclusion
the stages of an extended response how to structure an extended response..
how to write an introduction
Teaching Pros and cons of sources of

finance
suggestions This module covers sources of finance. The activities are not
intended to teach these concepts so students should know
about sources of funding before doing this module.
Energy efficient buildings To help students revise their knowledge, the class could
This module presents a case study of Switch Automation. create a table that outlines the pros and cons of each source
This company provides technology that helps commercial of finance. This activity is useful for field building before this
and residential buildings to be more energy efficient. This is module. In groups, students could be allocated one source of
an abstract concept, so students may need help to funding and research the pros and cons, reporting back to
understand what the business does. the class. The table below is an example:
These questions and points might form the basis of a useful

class discussion: Source of Pros Cons
How do students in the class conserve electricity? finance
(e.g. turning TVs off rather than using standby, using self funding no need to persuade owners may need to use
ecosave utilities on the computer etc) anyone else to invest; personal savings/assets; high
What is the cost of energy for a school / business? owners can keep control -risk e.g. the could lose
How would a business know how much energy they over decision-making their house; may not be
able to access enough funds
were using? (ie. usually only through their bills, not as to do anything substantial
the are using it).
staff equity owners do not need to staff members with equity
These facts about electricity might also be helpful: increase salaries, with may disagree with owner
more cash left over for decisions, causing
business growth; staff dissatisfaction; no actual
Australian Bureau of Statistics: Electricity may feel more motivated cash is generated and staff
Expenditure as they ‘own’ part of the may still need salary
During 2011-12, business expenditure on electricity totalled business increases in the future
$20.2b (which equated to 154,439 GWh of electricity private the business can obtain other stakeholders may
generated), of which large businesses accounted for 52.6% funds for development interfere in decision
(or $10.6b) and 66.7% (or 102,973GWh) of the electricity investors
and growth making; investors may
used by all businesses. In contrast, small businesses disagree with owners;
accounted for 30.5% (or $6.2b) of expenditure and 19.5% owners now have ‘bosses’;
owners could lose control
(or 30,051GWh) of total electricity consumption. over the business
In 2011-12, the Manufacturing industry was the largest government the business can obtain there is a limited range of
user of electricity and accounted for the largest share of the grants funds for growth purposes for government
funding; the grant
expenditure, with 43.6% (or 67,400 GWh) of electricity application process is time
consumption and 27.3% (or $5.5b) of total electricity consuming and may not be
expenditure. successful

The stages of an
extended response
This page shows the stages of an extended response. Each stage has a
different purpose and so needs a different format and language features.
These stages may vary depending on the assignment question or instruction.
For example, there may be two case study paragraphs and 5 PEEL
paragraphs. In general, this is a good structure to master and you can learn
to vary the patterns of paragraphs later. The page references will show you
where to go in this book to find out more.
Introduction paragraph
page 64
Case study paragraph

page 32
PEEL paragraphs (3-5 paragraphs)

page 20-26
Conclusion paragraph
page 65

Introduction
Answers
A good introduction:
States the topic of the extended response
An introduction paragraph is like a or report, using wording from the assignment
movie trailer. A movie trailer gives you question or instruction
a PREVIEW. It shows you what the Previews the business theory or syllabus
movie is about and what you can dot points that will be covered
expect. For this reason, the
introduction does not follow the Identifies the case study that will be used
stages of a PEEL paragraph. to support the business theory.
Business growth creates many

opportunities and challenges so it must states the topic of
Read this be managed effectively. Business the extended
example of an response
growth can be managed by several
introduction
strategies: increasing staff to deal with
paragraph and
look at the customer needs, improving the capacity previews the
stages of the to provide products and services and answers, in order
introduction. improving systems and technology. This
The assignment
question is: essay will explain how an Australian
identifies the case
How can company, Total Health, has dealt with study
businesses exceptional growth and managed
manage growth change effectively.
effectively? Order
1, 2, 3
Growth can also be managed by

Here are three improving technology and systems. 3
PEEL Points from three
paragraphs PEEL paragraphs.
should follow If they follow the In order to meet increased customer 1
the order or introduction needs, more staff members are required.
sequence of above, what order
ideas previewed should they
in the appear in? As a result of increased sales,
introduction. Number them 1, 2 production should be increased so that 2
or 3. the company can meet demand.

Conclusion
Answers
A conclusion gives a WRAP-UP of the entire
extended response. A good conclusion:
A conclusion
A conclusion Summarises what has been covered is different from
paragraph does Explains the main impact of the topic on an introduction
not follow the business profits, using cause and effect because it
PEEL stages. language shows what is
interesting or
May evaluate the most important or important about
effective impacts on the business (optional). the topic or it
can give a final
evaluation.
Three main strategies for managing

Remember our
business growth have been identified. summarises what
case study of has been covered
OneShift (pp 29 OneShift has managed growth by hiring
-34)? Re-read new staff, improving technology and by
the case study buying a jobs platform so that clients
then look at
this example of have access to more potential
explains the main
a conclusion jobseekers. These three strategies have
impact of the topic
paragraph. The enabled the company to meet the on business profits
conclusion challenges of increased sales and
summarises
how OneShift maximise profitability during a time of
has managed change. The most significant growth
may evaluate the
growth strategy is the upgrade of new most important or
effectively. technology because the new mobile app effective aspects of
Underline the
cause and effect will enable the company to grow in the the topic
language. long term as well as in the short term.
Write an alternate final sentence for the extended response. Rather

than choosing new technology, choose one of the other growth
strategies implemented by OneShift. Explain how this will impact on
the company and write your final sentence below.
Sample 1: The most significant growth strategy for OneShift is hiring new staff, because the company needs new
employees in order to service their customers and develop the systems to support the business.
Sample 2: The most significant growth strategy for OneShift is acquiring more resources like the Adage jobs board.
This is because the company needs to maintain the quality and variety of their services so they can improve
customer satisfaction
Planning an introduction
and conclusion Answers
Read the information about a case study, Switch Automation.
Then follow the instructions below and on the next page.
CASE STUDY
Switch Automation is an
Australian company that
runs building automation
systems. Switch Founders of Switch Automation:
Automation offers cloud- Deb Noller (above)
based technology for and John Darlington (below)
monitoring and controling
energy use in large
buildings. They have
recently expanded to the
USA.
Assignment question:
How can businesses use different sources of finance to manage growth?
One source of finance is self funding, which means that business owners use
their own money and revenue from the business. Self funding is effective
Read these because it enables the business to get started and prove that it is viable. Self
PEEL funding is also important because future investors often expect owners to
paragraphs invest in their own business before they agree to offer further finance. Switch
about Switch Automation’s founders, Deb Noller and John Darlington, used their own
Automation. savings to start the business. As a result, they had the freedom to make their
own decisions and prove that they had a product that customers need.
Underline the Another way that businesses can obtain finance is to offer shares to staff instead
POINT in of high salaries. Offering employees equity in the business can be an effective
each strategy for obtaining finance in a growing business. Switch Automation’s Deb
paragraph. Noller offered equity to staff to help the company grow. She offered employees
lower salaries but also shares in the company. Consequently, the employees
Circle all the and the business owners share in future profits and success.
words related
A third source of finance involves private investors or angel investors. Angel
to the investors are individuals or groups who provide finance for a business in return
assignment for a share of the company. Switch Automation gained $1.25 million in funding
question. from Scale Investors, an Australian angel investor network. By obtaining angel
(Answers in finance, Switch Automation has been able to expand into the American market
italics) and therefore gain more customers and grow.
Highlight the Governments can also provide finance for businesses to fund growth. Some
cause and businesses may be eligible for Australian government grants for research and
development or in order to support Australian exports. At the end of 2011,
effect Switch Automation was awarded a $2 million Commercialisation Australia
language. grant to help develop their technology. Therefore, the government grant
(Answers in assisted the company to manage growth and increase profitability.
bold)
Writing for success in business studies (Teacher’s Book) 66 Images and case study information used with permission
Literacy Works
Planning an introduction and
conclusion Answers
On this page, you can plan your ideas for an introduction and conclusion to go with the PEEL paragraphs
on page 66. Write your introduction and conclusion on the pages to follow.
Main point of paragraph 1

One source of finance is self-funding.
Summarise the
main point of Main point of paragraph 2
each paragraph Another source of finance is offering shares or equity to staff.
on page 66.
These points Main point of paragraph 3
will go in your Another source involves angel investors.
introduction.
Main point of paragraph 4
Another source of finance is government grants.
In a conclusion, you are required to summarise the main points

that have been covered but also to evaluate the most important
ideas. To help you, answer the questions below.
1. What sources of finance were used during the early stages of growth in Switch Automation’s business?
In the early stages of growth, Switch Automation obtained finance through self-funding and offering equity
to staff.
2. How did these sources of finance help the business at that time? Self-funding helped launch the
business at the beginning, while offering shares to staff helped the business to grow.
3. What sources of finance are being used during the growth stage of the business? In the growth stage of
the business, Switch Automation used angel investors and government grants.
4. Why did Switch Automation need to find these additional sources of finance? Switch Automation
needed angel investors to expand globally, and they needed the government grant to develop their
technology effectively.
5. Using the list of evaluative language on page 46, find some suitable positive wordings to describe the
sources of finance used by Switch Automation during the growth of the business. effective, suitable,
appropriate, advantageous, targeted, well-planned, significant
6. From your analysis on page 66, write down all the wordings related to the question, that is, the words
related to sources of finance and growth. growth: grow, growing, expand; source of finance: self-funding,
finance, investors, money, revenue, shares, equity, angel investors, private investors, angel finance, grants.

Extended response - introduction
& case study Answers
This page and the next page show how the PEEL paragraphs about
Switch Automation fit into an extended response. Use your plan for
an introduction on page 67 to complete the introduction paragraph.
Next write a case study summary about Switch Automation, using
the case study information on page 66 and the model on page 32.
How can businesses use different sources of finance to manage growth?
Businesses can use a range of sources of finance to manage state the topic of
the extended
growth. Different sources of finance can help a business at response
different stages of growth. Self-funding and equity finance
preview the
are useful in the early stages of growth. In the later stages answers (about 4
of expansion, angel investors and government grants can sources of
finance)
provide the funds necessary for sustained growth. These
sources of finance will be explored in relation to the case
study, Switch Automation. identify the
case study
write a case
Switch Automation is an Australian company that offers
study
automation for large buildings. Switch Automation’s cloud summary
based software monitors and manages energy usage in the paragraph
building. The business is owned by Deb Noller and John

Darlington. The case study of Switch Automation will
explain how different sources of finance helped the
business to grow and expand internationally.
PEEL paragraph 1
One source of finance is self funding, which means that business owners use their own
money and revenue from the business. Self funding is effective because it enables the Look at page
business to get started and prove that it can work. Self funding is also important
69 for the
because future investors and leaders expect self funding before they agree to offer
finance. Switch Automation’s founders, Deb Noller and John Darlington, used their next part of
own money when the business started. This gave them freedom to establish the the extended
business and make their own decisions, which provided a foundation for profitability. response

Extended response -
conclusion Answers
Use your answers to questions on page 67 to write a conclusion to
the extended response about Switch Automation.
PEEL paragraph 2
Another way that businesses can obtain finance is to offer shares to staff instead of high salaries. Offering
employees equity in the business can be an effective strategy for obtaining finance in a growing business.
Switch Automation’s Deb Noller offered equity to staff to help the company grow. She offered employees
lower salaries but also shares in the company. Consequently, the employees and the business owners
share in future profits and success.
PEEL paragraph 3
A third source of finance involves private investors or angel investors. Angel investors are individuals or
groups who provide finance for a business in return for a share of the company. Switch Automation
gained $1.25 million in funding from Scale Investors, an Australian angel investor network. By obtaining
angel finance, Switch Automation has been able to expand into the American market and therefore gain
more customers and grow.
PEEL paragraph 4
Governments can also provide finance for businesses to fund growth. Some businesses may be eligible for
Australian government grants for research and development or in order to support Australian exports.
At the end of 2011, Switch Automation was awarded a $2 million Commercialisation Australia grant to
help develop their technology. Therefore, the government grant assisted the company to manage growth
summarise what
This extended response has explained four main sources of
has been covered
finance and how they helped Switch Automation to grow.
Self-funding and staff equity helped the business to start up
explain the main
and find customers. In order to expand globally, Switch impact of the topic
Automation needed further funds. As a result, they on business profits
approached private investors, Scale Investors, and also they
obtained a large grant from the Australian government.
These two sources of finance helped the company to
develop its technology and to expand to the US. The most
important source of finance so far has been the Australian Use cause and
effect language
government grant of $2 million because it does not need
to be repaid. Due to this grant, Switch Automation’s
technology could be developed to support future growth evaluate the most
important source
and profits. of finance for
Switch Automation
Extended response template
______________________________________________
______________________________________________
______________________________________________
Introduction
______________________________________________
______________________________________________
______________________________________________
______________________________________________
Case study ______________________________________________
paragraph ______________________________________________
______________________________________________
______________________________________________
______________________________________________
______________________________________________
PEEL paragraph ______________________________________________
______________________________________________
______________________________________________
______________________________________________
______________________________________________
______________________________________________
______________________________________________
______________________________________________
______________________________________________
PEEL paragraph ______________________________________________
______________________________________________
______________________________________________
______________________________________________
______________________________________________
______________________________________________

______________________________________________
______________________________________________
______________________________________________
PEEL paragraph
______________________________________________
______________________________________________
______________________________________________
______________________________________________
______________________________________________
______________________________________________
______________________________________________
______________________________________________
______________________________________________
PEEL paragraph
______________________________________________
______________________________________________
______________________________________________
______________________________________________
______________________________________________
______________________________________________
______________________________________________
Conclusion
______________________________________________
paragraph
______________________________________________
______________________________________________
______________________________________________

Teaching
Module 10
Writing a
business report
Key concepts
In this module, students will learn about: how to write an executive summary
the features of a business report how to plan, structure and write a business
the stages of a business report report.
Teaching Model of business report

suggestions A model of a business report is provided in this chapter. This
model text includes recommendations for a business. Of
course, not all reports include recommendations. As
explained on page 74, the contents and structure of a report
Jigsaw activity will depend on its purpose. In studies of business, the
assignment question or instruction will determine the
On page 77, Activity 1 suggests 4 aspects of language that structure of the report.
students can search for in the model business report:
a) cause and effect language Big Dog Pet Foods is a real company and they have given
b) modal language permission to include company information in this book.
c) words that positively evaluate opportunities However, the model text included in this chapter is invented.
d) words that negatively evaluate opportunities or risks. We needed an example of the kind of business report that
students have to write. This is not easy to find in the actual
It is probably too much to ask students to look at all of these business environment as real business reports:
features in the entire report are complex
may not be not related to particular business syllabus
This activity could be completed as a JIGSAW activity. Break topics, but often combine several business topics or
the class into groups and give each a different section of the theories
report (e.g. one column of text) and one language feature to often avoid direct recommendations
highlight/underline. Then students can share their findings are sometimes confidential and not publically available.
with other groups.
This means that teachers will need to review actual business
When searching for positive and negative evaluations, it is reports carefully to determine their purpose and audience
important for students to notice what wordings contain before using them as models in the classroom.
implicit and explicit positive and negative evaluations. For
example, costs are negative, but lower costs are positive. By
asking students to identify the patterns of positive and
negative evaluations, they will notice how business experts
reason, think and write. It is most important to note that Media search: business reports
evaluations are not based on personal opinions but instead
Distribute some actual examples of business reports in class
on business theory, profits and success. Hopefully, students
or do some company searches on the internet. Ask students
will also be able to use these resources in their own writing,
to find any recommendations in business reports. Investor
for improved marks in assessment tasks.
presentations are likely sources of evaluative language.
Check out these investor reports for one of the case studies
used in this book:
Investor presentation SurfStitch
https://www.surfstitchgroup.com/__resources/userfiles/
file/20150513-Project-Gilmore-investor-presentation.pdf

What are business reports?
Business reports come in different forms including annual reports, business plans, and capital raising
reports. This page shows an example of a real business report from an Australian telecommunications
company, TPG. Features of the report layout are shown below. You can use google to access the annual
reports of most publicly listed companies, and it is worthwhile exploring the different ways companies
present information to their shareholders and to the public.
Headings and sub-headings

to organise sections
Data displays such

as pie charts and
graphs
Information presented
in full sentences and
dot points
Excerpt from TPG Telecom Ltd Annual Report year ended June 31, 2014
https://www.tpg.com.au/about/pdfs/FY14%20Annual%20Report.pdf
The stages of a business report
This page shows the stages of a business report. Each stage has a
different purpose. In general, the format below is a useful structure to
master. After you learn this basic structure, you can then vary the
patterns of paragraphs based on the assignment focus question. The
page numbers listed below will show you where to look in this book
to find out more.
Executive summary
page 75
Introduction paragraph
Preview what problems or issues the report will page 64
address and what recommendations will be made
Heading (first part of the question or pages 59-61

instruction) followed by related paragraphs show you how to
analyse the
question or
instructions
structure and
Heading (second part of the question or organise this part
instruction) followed by related paragraphs of your report
pages 6-7
Heading (third part of the question or show you how to
instruction) followed by related paragraphs write dot points
Conclusion paragraph
page 65

The executive summary
Answers
An executive summary provides a synthesis or
summary of the full business report. It appears at
the beginning of a business report. It is intended The Executive
An executive to be read by busy managers, in case they do not
summary does have time to read the full report. An effective Summary
not follow the executive summary follows these stages: appears first in
PEEL stages. a report, but
1. a statement of the report brief or task from you need to
The style of the client
writing should 2. a summary of what the report covered, in write it last. In
be formal, the same order as the full report exam
3. recommendation/s conditions,
impersonal and
4. reasons or justification to support the leave a space
objective. recommendations.
then fill it in at
The executive summary must only include the end.
information that is in the full report.
Executive Summary
Stages
The client, ’J&A’s Healthy Habits’, has requested a
report to advise them on the best establishment Summary of client brief
Read this
executive option for their new cafe. The report has Summary of what the
summary then identified the advantages and disadvantages of report covered
write the buying a franchise, starting from scratch and
names of the buying an existing business. It is recommended
stages in the that the best option for ‘J&A’s Healthy Habits’ is Recommendation
box on the to start a new business from scratch. This is
right. because both of the owners have expertise in the
Reasons and justification
industry and they have $300,000 in capital to
invest. The owners also seem to have the drive
and entrepreneurial spirit to make this business a
success.
For J&A’s Healthy Habits, I Suggestions for improvement

Read the
recommend that purchasing an Start with a review of the task from the
Executive client and an overview of the report’s
Summary on existing franchise would be the best
contents. Then provide the
the right. establishment option judging from recommendation. The writer could be
How could experience, qualifications and cash. more specific about what is meant by
‘experience, qualifications and cash’. The
you suggest Just keep in mind franchisee and
final statement is addressing the reader
that this franchisor relationships are factors directly ‘just keep in mind… your business’,
student that are likely to influence the which is not the style of the executive
improve? success of your business. summary. Instead, the writing should be
objective, formal and impersonal.

Planning an answer to an
assignment instruction Answers
CASE STUDY
Big Dog is a pet foods manufacturer based
in Brisbane. The Australian pet food industry
is worth $3.2 billion a year (IBIS World) and
is growing. Big Dog is a relatively small
Read player in this market. However, Big Dog has a unique
the product, offering healthy pet food made from raw fowl
case meat, bones, liver and eggs. The company is also planning
study to launch new premium pet food products, so
on the consumers can pamper their pets even more. Recently,
right. the business has begun to export to Singapore, Taiwan
and Hong Kong. However, 80% of Big Dog’s business is
still in Australia. Importantly, the China-Australia Free
Trade Agreement provides opportunities for Big Dog to
expand to a huge new market.
Write a plan for two different reports based on these questions. In the
white boxes, write the headings you will use for each report (see p61).
Question 1 Question 2
You have been hired by Big Dog as a business You have been hired by Big Dog as a business
consultant to advise them on their business. consultant to advise them on their business.
Write a report that addresses each of the Write a report that addresses each of the
following: following:
Outline the challenges presented at the The reasons why businesses expand
growth stage of the life cycle. globally
Describe the laws, procedures and Recommend whether or not Big Dog
regulations that Big Dog should consider should expand globally by opening an office
when growing their business. overseas.
Executive Summary Executive Summary

Introduction Introduction
Challenges at the growth state of the Reasons why businesses expand
business life cycle globally
challenge 1 reason 1
challenge 2 reason 2
challenge 3 etc reason 3 etc
Laws, Procedures and Regulations Recommendations for Big Dog
Conclusion Conclusion

Model of a business report
Answers
Read the
business ACTIVITY 1
report about Find cause and effect language
Big Dog on
a. Circle all the examples of cause and effect
pages 79-81.
Then do the language in the report on pages 79-81.
activities on Find language for recommending
this page and
page 80. b. Underline the modal language (e.g. should,
must, can).
c. Highlight in green the words
that positively evaluate
ACTIVITY 2 opportunities or decisions.
In the case study report,
find all the business d. Highlight in yellow the words
terms related to money that negatively evaluate
and draw a $ symbol next opportunities or decisions.
to each one.
POINT Businesses can expand to find new markets and

increase sales.
ACTIVITY 3
Select any one
of the EXPLAIN If businesses move overseas, they can grow their
paragraphs customer base to maximise revenue and profits.
under the
headings
‘Opportunities
Big Dog currently has 80% of its business in Australia and
for global
expansion’. EXAMPLE only 20% overseas. If Big Dog expands, they might be able
Re-write it here to gain access to the massive Chinese middle class
next to the consumer market estimated at 630 million people
stages of a (McKinsey and Company 2013).
PEEL
paragraph.
LINK This market is 30 times larger than Australia’s
entire population so, as a result, the potential for
growth is significant.
Model of a business report
Answers
ACTIVITY 4
In the box below, show the plan that the
writer of this business report has used to
create the report. Include the main headings
and sub-headings from the report in order.
Then write a short summary of the main
ideas in each section and under each heading.
REPORT PLAN Summary of most important ideas

in each section
Main opportunities and risks are summarised and recommendation
Executive summary is made that Big Dog delays its expansion to China.
Introduction Case study information about Big Dog - 20% of products sold in
Asia, opportunities in China.
Opportunities provided by global expansion The Chinese middle class provides a possible new market for Big
Dog, so it can expand.
finding new markets
If Big Dog produces more dog food, their production costs will be
economies of scale lower per unit.
Big Dog can obtain lower costs of resources such as labour and
access to resources manufacturing in China.
By operating in two countries, Big Dog is spreading risk of

cushioning economic cycles economic slow-downs in one market..
Risks of global expansion

China is a risky market due to political risks (instability) and
political and economic risks economic change, including rising wage costs..
China is very different to Australia so Big Dog staff would need to

social / cultural risks be able to communicate in Mandarin and understand the culture.
management risks Big Dog’s staff would need experience in managing Australian and
Chinese operations.
Big Dog should not open operations in China. They should focus
Recommendation for Big Dog on Australia and build relationships with a Chinese partner.
Conclusion Big Dog needs more preparation before expansion to China.

Business report:
Big Dog Pet Foods 1
Big Dog is an Australian pet food manufacturer. You have been hired as a business consultant to Cause and effect language is in
provide advice on a possible expansion to China. Write a 1000 word business report for Big Dog. bold.
In your report:
Modal language is underlined
assess the opportunities and risks associated with expansion overseas for Big Dog
Green words positively
recommend whether or not Big Dog should open a manufacturing operation in China. evaluate; Red words negatively
evaluate.
Executive Summary
This report has been prepared for Big Dog Pty Ltd in order to provide recommendations on whether
the company should open an operation in China. The main opportunities of expansion include:
finding a new market and increasing sales and profits
achieving economies of scale
gaining access to cheap labour
cushioning economic cycles.
The risks of economic expansion have been identified as:
economic and political risks
social and cultural risks including language problems
pressure on management in Australia.
We recommend that the company should delay its expansion plans and focus on opportunities in
Australia and on strengthening its export capacity. The rationale for this recommendation is due to
risk and opportunity cost. The risks of expansion are significant as Big Dog’s management has limited
experience in China and there are insufficient staff to* support a Big Dog operation in China. Another
reason for this recommendation is that there are promising market opportunities in Australia that may
not have been fully exploited. Consequently, it is recommended that Big Dog secure a local partner in
China to build exports while also focusing on Australian market opportunities.
(* to + verb indicates cause and effect; only the ‘to’ has been bolded in these answers)
Note: Big Dog is a real company but this is not a real report. This report is for demonstration purposes only and does not reflect
Big Dog’s actual plans. Big Dog has kindly allowed us to use them as a case study in this book (see acknowledgements).

Business report:
Big Dog Pet Foods 2
Introduction salaries are lower. Lower salaries may lead to
reduced costs and increased profits for Big Dog.
Big Dog is an Australian pet food manufacturer that
Considering the new China-Australia Free Trade
offers high quality, raw pet food ingredients in its
agreement, it is also possible that Big Dog may be
products. Currently, 20% of Big Dog’s products are
able to move manufacturing to China and import
sold in Asia, and the business is considering the
products back into Australia in order to reduce
establishment of operations to China. This report
costs even more.
outlines the opportunities and risks involved with
expanding to China and provides a Cushioning economic cycles
recommendation for future business operations. Businesses also expand so they can cushion
Opportunities provided by economic cycles. If the Australian economy is
global expansion weak, the economy in another country may be
stronger, helping the business to maintain overall
Finding new markets
sales and continue to grow. By expanding to Asia,
Businesses can expand to find new markets and Big Dog could benefit from the strong Asian
increase sales. If businesses move overseas, they economies. However, if Big Dog was operating in
can grow their customer base to maximise revenue China, the company would also be vulnerable to
and profits. Big Dog currently has 80% of its changes in the Chinese economy, such as an
business in Australia and only 20% overseas. If Big economic slow-down. Other risks are noted in the
Dog expands, they might be able to gain access to following section.
the massive Chinese middle class consumer market
estimated at 630 million people (McKinsey and
Risks of global expansion
Company 2013). This market is 30 times larger Political and economic risks
than Australia’s entire population so, as a result, Political and economic risks involved in expansion
the potential for growth is significant. may be caused by different laws and regulations in
Economies of scale the host country. There are serious political risks
in China, such as the possibility of changes to
By expanding globally, businesses may achieve
government regulation. For example, in China,
economies of scale. Increasing production leads to
regulation of intellectual property is less rigorous
a lower cost of production per item. As a result,
than in Australia, and some Australian companies
the business can be more profitable. If Big Dog
have had their intellectual property and ideas
increases their production of pet food, they may be
copied in China. Economic risks that impact on
able to gain cheaper bulk prices from suppliers and
operations in China include rising wage costs and
also streamline their manufacturing operations,
the appreciation of the Chinese yuan. While costs
resulting in lower costs.
of manufacturing in China are still lower than
Access to resources Australia, rising costs in China may cause
Another reason for expansion is to obtain increased costs for Big Dog.
resources like cheaper labour. In Asia, the cost of
manufacturing is lower than in Australia, since

Business report:
Big Dog Pet Foods 3
Risks of expansion (continued) main obstacle to expansion is staff inexperience in
Social/cultural risks running a start-up operation in China. A more
effective option could be to build relationships with
Social/cultural factors must be considered in a a Chinese manufacturer and distributor as a
global expansion because Australian business partner in the Big Dog operations. As a result, Big
culture is different to the business culture in Asia. Dog may be able to take advantage of the partner’s
Big Dog should be sensitive to the cultural and local contacts and expertise. Big Dog should
language issues that may arise when expanding to consult with Austrade in order to find an
China. It would be essential for Big Dog staff to be overseas partner. In the future, if the Chinese
fluent speakers of Mandarin. Also, management partner operation is successful, Big Dog could
should be sensitive to a variety of cultural issues so eventually open an operation there.
that they can establish effective employment
Due to the China-Australia Free Trade
relations and good relationships with suppliers.
Agreement, tariffs have been lowered and it is
Efficient and easy technical communication could be
becoming cheaper for Australian companies to
a challenge for Big Dog.
export goods to China. As a result, Big Dog
Management risks
should ensure that they have taken advantage of
There are also significant management risks for these new laws before taking further risks in China.
Australian companies that may arise due to global In addition, Big Dog has not maximised its
expansion. Expanding businesses must establish a opportunities for growth here in Australia. As the
management structure that can deal with company has opportunities for product extensions,
geographical divisions and also that can do business with new premium pet foods, management should
in the local languages. Currently, Big Dog’s staff focus on opportunities here at home first. By
have no expertise with living or working in China. focusing on their main markets, Big Dog’s
Therefore, Big Dog may have to hire new management could maximise sales and profits
Mandarin-speaking staff in order to deal with locally, rather than spreading management efforts
expansion to China. At this stage, the company has too thinly.
insufficient staff to cover international expansion as
well as maximise the opportunities at home. Conclusion
Consequently, management risks are serious for Big Dog has a promising future for its pet food
the business. products. Expansion to China is an exciting
Recommendation for Big Dog proposition but one that requires more time and
resourcing in order to achieve success.
This report recommends that Big Dog:
1. delays its plans to open operations in China.
References
2. focuses on opportunities in Australia McKinsey and Company (2013), Mapping China’s Middle Class.
3. builds relationships with a Chinese partner. McKinsey Quarterly. Available online http://
www.mckinsey.com/insights/consumer_and_retail/
There are major risks of expansion to China. The mapping_chinas_middle_class

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Writing for success

Literacy Works Trish Weekes PhD

ISBN 978-1-876926-82-3 (teacher book - printed)

ISBN 978-1-876926-84-7 (teacher book - PDF)

Copyright © 2016 by Trish Weekes and Literacy Works

Reproduction and communication for educational purposes

Elyshia Burkett, MissyMischief on behalf of ISA Group for iFLYdownunder: pp15-18

Gumroad, Inc. for clip art icons

Writing for success in business studies (Teacher’s Book) ii Literacy Works

Teaching Module 1: Writing like a business expert 1

The rules of business writing 2

Teaching Module 2: Explaining the business world 9

Explaining the business world Effects of business decisions 10

Teaching Module 3: Explaining in PEEL paragraphs 20

Explaining with a PEEL paragraph Factors that contribute to GRANA 21

Teaching Module 4: Reading a case study 27

Teaching Module 5: Explaining influences on case studies 35

External influences on a business External influences on 36

Teaching Module 6: Evaluating the business world 44

Evaluating the business world 45

Teaching Module 7: Recommending in the business world 49

Golden rules for recommendations 50

Teaching Module 8: Interpreting a question/ instruction 58

Parts of a question or instruction 59

Teaching Module 9: Writing an extended response 62

The stages of an extended response 63

Teaching Module 10: Writing a business report 72

What are business reports? 73

Writing for success in business studies (Teacher’s Book) iv Literacy Works

Module NSW VIC QLD Australian

Writing for success in business studies (Teacher’s Book) ix Literacy Works

analyse, highlight interesting point

read this PEEL paragraph

grammar point the main objective

How to type on a PDF

Click on ‘Comment’. You should be able to add a sticky note to add

Teaching Write with students

Writing for success in business studies (Teacher’s Book) 1 Literacy Works

Writing for success in business studies (Teacher’s Book) 2 Literacy Works

All businesses have a common objective – to produce goods

Writing for success in business studies (Teacher’s Book) 3 Literacy Works

Does the student write like a business expert?

Examples of re-written sentences

Writing for success in business studies (Teacher’s Book) 4 Literacy Works

Writing for success in business studies (Teacher’s Book) 5 Literacy Works

A dot point (also known as a bullet point) is a type

separate, stand-alone sentences point

one long sentence. point.

DOT POINT DON’Ts

Example: Don’t use dot points for their own

Writing for success in business studies (Teacher’s Book) 6 Literacy Works

Example 1 Example 2 Example 3

Internal influences on business Competitive situations can create

location create a better quality product

Writing for success in business studies (Teacher’s Book) 7 Literacy Works

evaluating evaluate Evaluate the decision to adopt a See pages

recommending recommend Recommend a source of finance See pages

Even though the task word is

Teaching Prepare for case studies

Make a cause and effect poster