Unit 19 – International businessDELIVERY GUIDEVersion 1

Cambridge TECHNICALS LEVEL 3

BUSINESS

ocr.org.uk/business

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CONTENTS

Introduction 3

Related Activities 4

Key Terms 5

Misconceptions 6

Suggested Activities:

Learning Outcome (LO1) 7

Learning Outcome (LO2) 12

Learning Outcome (LO3) 19

Learning Outcome (LO4) 25

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INTRODUCTIONThis Delivery Guide has been developed to provide practitioners with a variety of creative and practical ideas to support the delivery of this qualification. The Guide is a collection of lesson ideas with associated activities, which you may find helpful as you plan your lessons.

OCR has collaborated with current practitioners to ensure that the ideas put forward in this Delivery Guide are practical, realistic and dynamic. The Guide is structured by learning outcome so you can see how each activity helps you cover the requirements of this unit.

We appreciate that practitioners are knowledgeable in relation to what works for them and their learners. Therefore, the resources we have produced should not restrict or impact on practitioners’ creativity to deliver excellent learning opportunities.

Whether you are an experienced practitioner or new to the sector, we hope you find something in this guide which will help you to deliver excellent learning opportunities.

If you have any feedback on this Delivery Guide or suggestions for other resources you would like OCR to develop, please email resources.feedback@ocr.org.uk.

Unit 19 International business

LO1 Understand the impact of globalisation on businesses, employees and consumers

LO2 Understand the opportunities and challenges that businesses face when operating internationally

LO3 Understand the international trading environment in which businesses operate

LO4 Understand different international expansion strategies used by businesses

To find out more about this qualification please go to: http://www.ocr.org.uk/qualifications/cambridge-technicals-business-level-3-certificate-extended-certificate-foundation-diploma-diploma-05834-05837-2016-suite

Please note The activities suggested in this Delivery Guide MUST NOT be used for assessment purposes. The timings for the suggested activities in this Delivery Guide DO NOT relate to the Guided Learning Hours (GLHs) for each unit.

Assessment guidance can be found within the Unit document available from www.ocr.org.uk. The latest version of this Delivery Guide can be downloaded from the OCR website.

UNIT AIMInternational business includes all business transactions that take place across national borders. Increased globalisation over recent years as well as greater use of the Internet has opened up new markets overseas for many businesses. Many of the products that we use in our day to day lives are available only because international trade takes place.

In this unit you will gain an understanding of key decisions that businesses must make when deciding whether to operate internationally. You will have the opportunity to research a business and then consider how this business may benefit from operating internationally as well as the challenges that it may face. This unit will provide you with practical experience which will be valuable should you wish to undertake further study in this area or follow a career in a business which either operates or aims to operate internationally.

This unit will allow you to draw together all of your knowledge and understanding to identify a strategy that a domestic (local, regional or national) business could adopt to expand internationally

2016 Suite• New suite for first teaching September 2016• Externally assessed content• Eligible for Key Stage 5 performance points from 2018• Designed to meet the DfE technical guidance

OPPORTUNITIES FOR ENGLISH AND MATHS SKILLS DEVELOPMENT AND WORK EXPERIENCEWe believe that being able to make good progress in English and maths is essential to learners in both of these contexts and on a range of learning programmes. To help you enable your learners to progress in these subjects, we have signposted opportunities for English and maths skills practice within this resource. We have also identified any potential work experience opportunities within the activities. These suggestions are for guidance only. They are not designed to replace your own subject knowledge and expertise in deciding what is most appropriate for your learners.

English Maths Work

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This unit (Unit 19) Title of suggested activity Other units/LOs

LO1 How trade might benefit an economy Unit 1 The business environment LO5 Understand the relationship between businesses and stakeholders

UK steel industry case study – the impact of globalisation on employment

Unit 1 The business environment LO5 Understand the relationship between businesses and stakeholders

Unit 10 Economics for business LO4 Understand how the international economy can impact UK businesses

LO2 Country profiling and SWOT analysis Unit 10 Economics for business LO4 Understand how the international economy can impact UK businesses

Opportunities to businesses of operating internationally – Brompton Bicycle case study

Unit 3 Business decisions LO1 Understand factors to be taken into account when making business decisionsLO6 Be able to use information to make and justify business decisions

Unit 10 Economics for business LO4 Understand how the international economy can impact UK businesses

Challenges to businesses of operating internationally – Tesco’s Fresh & Easy case study

Unit 6 Marketing strategy LO1 Understand the purpose of marketing strategiesLO5 Be able to use business tools to propose marketing strategies

Unit 7 Marketing campaign LO2 Understand the elements of the marketing mix

Unit 10 Economics for business LO4 Understand how the international economy can impact UK businesses

Glocalising products when trading internationally – the opportunities and challenges of operating internationally – McDonald’s case study

Unit 10 Economics for business LO4 Understand how the international economy can impact UK businesses

Conducting a PEST/PESTLE analysis of a market/country

Unit 1 The business environment LO6 Understand the external influences and constraints on businesses and how businesses could respond

LO3 WTO flip learning exercise Unit 10 Economics for business LO4 Understand how the international economy can impact UK businesses

LO4 Deciding on a joint venture – report and presentation

Unit 3 Business decisions LO1 Understand factors to be taken into account when making business decisions

Offshoring – case study of the clothing/apparel industry

Unit 17 Responsible business practices LO3 Be able to review the impact of responsible business practices on different stakeholders

Unit 19 International business LO1 Understand the impact of globalisation on businesses, employees and consumers

The Suggested Activities in this Delivery Guide listed below have also been related to other Cambridge Technicals in Business units/Learning Outcomes (LOs). This could help with delivery planning and enable learners to cover multiple parts of units.

RELATED ACTIVITIES

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KEY TERMSExplanations of the key terms used within this unit, in the context of this unit

Key term Explanation

Embargo An embargo is a government ordered ban on trade for a period of time with another country. This is usually imposed for political reasons. For example, arms embargoes – bans on trade in military equipment – are often imposed on countries that may have a poor human rights record.

Exchange rate The price of one currency in terms of another currency. For example, £1 sterling may be worth US$1.50.

Export A good or service produced in one country and sold to consumers in overseas markets. For example, the Mini Cooper is made in the UK and sold in markets all over the world. The Mini Cooper is therefore an export for the UK.

Free trade Free trade refers to international trade that is not subject to restrictions such as tariffs and quotas. The World Trade Organization (WTO) tries to promote free trade between countries.

Globalisation Globalisation refers to the increasing integration and interdependence of national economies in terms of trade and communication.

Import A good or service bought by consumers that has been made in another country. For example, the UK imports pineapples and oranges from various countries around the world.

International franchising A franchise is when a business secures the right to trade under someone else’s brand or use their business model for a period of time. International franchising is the process of offering franchises globally. McDonald’s and Starbucks are examples of international franchises.

Inward investment Investment made in one country by multinational/transnational corporations (MNCs)/(TNCs) of another country. For example, Japanese car manufacturers such as Nissan, Toyota and Honda have all set up production facilities in the UK. Therefore, the UK is a receiver of Japanese inward investment. This is also called foreign direct investment (FDI).

Joint venture Joint ventures are when businesses (usually seeking to operate internationally) form a collaborative relationship with a local firm. They are useful to businesses seeking to operate – produce or sell – in unfamiliar markets as local firms have greater knowledge about the market and regulations, etc. Therefore, joint ventures help the businesses to minimise the risks of international expansion.

Offshoring When a business locates some of its processes in another country, usually for the purpose of lowering the costs of production. For example, most fashion chains such as H&M and Zara locate their design and marketing functions in developed economies such as Sweden (H&M) or Spain (Zara) but offshore their production to less economically developed countries, often in South East Asia.

Outsourcing When businesses contract out jobs to workers outside the organisation, often in other countries. For example, British Telecom (BT) outsources much of its customer services operations to call centres in India.

Quotas Physical limits on the amount of imports allowed into a country.

Sanctions Political actions taken by countries against another country. Examples could include stopping trade for a period of time. In 2014 the EU imposed trade sanctions on Russia after Russia annexed Crimea in neighbouring Ukraine.

Tariffs Taxes placed on imported goods. Tariffs will raise the price of imports and thus reduce demand for them.

Trade blocs Groups of countries that abolish all trade barriers (e.g. tariffs and quotas) and operate as a free trade area. The largest trade bloc in the world is the European Union (EU) with 28 member states.

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Some common misconceptions and guidance on how they could be overcome

What is the misconception? How can this be overcome? Resources which could help

Confusing tariffs and quotas with embargoes and sanctions

This could be overcome through the use of clear examples from real life when dealing with the exposition of this topic.

For example, tutors may want to consider how the US put tariffs on steel imports to prevent dumping of cheap steel from South East Asia. However, it only put the tariff on one good. On the other hand, the US imposed sanctions on trade with Iran – i.e. all trade between the US and Iran was banned for a time in order to dissuade Iran from enriching the uranium needed for nuclear weapons.

Tutors should emphasise the one good/all goods difference between the two types of trade policies and the political motivations of the latter as opposed to the economic motivations of the former.

Protectionismtutor2uhttp://www.tutor2u.net/economics/reference/protectionismThis web page outlines tariffs, quotas and technical barriers and various other forms of protectionist policies.

Sanctions, embargoes and restrictionsUK governmenthttps://www.gov.uk/guidance/sanctions-embargoes-and-restrictionsDetailed web page which gives an overview of what sanctions and embargoes are together with current examples.

MISCONCEPTIONS

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SUGGESTED ACTIVITIESLO No: 1

LO Title: Understand the impact of globalisation on businesses, employees and consumers

Title of suggested activity Suggested activities Suggested timings Also related to

Introduction to globalisation – the manufacturing of an Apple iPhone

To introduce the concept of globalisation, tutors could ask learners where their Apple iPhone is made. Chances are that they will look at the back of their phone and say China. In reality at least 32 different countries have some input into making an iPhone and/or its 700+ parts. Final assembly is in China but making it is a global effort.

The link below includes a 29-slide presentation with some interesting facts behind the making of the iPhone and should be an engaging introduction to globalisation for learners. Learners could be given some of the slides/data from the presentation and asked to answer the three ‘big questions’ at the end of the web page.

How to Build an iPhone: Apple’s Tangled Manufacturing WebIndustryWeekhttp://www.industryweek.com/technology/how-build-iphone-apples-tangled-manufacturing-web#slide-0-field_images-149321Presentation discussing how although the iPhone is designed in California and assembled in China, its manufacturing effort requires a whole world of collaboration.

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Why businesses choose to operate in more than one country

Pairs of learners could be asked to brainstorm the reasons why a business may choose to operate in more than one country.

One pair could be asked to consider this from the point of view of the marketing/selling function of the business. Another pair could be asked to consider this from the operations/production function of the business. Different pairs could then form a group of four and swap ideas.

As an extension the groups could then be asked to consider the links between these – e.g. expansion of market share/diversifying the market should lead to an increase in profit through increased sales revenue. Likewise, offshoring production could also lead to an increase in profit through lower costs.Ideas from different groups could then be fed back through a full group discussion

International Location - Business Issuestutor2uhttp://www.tutor2u.net/business/reference/international-location-business-issuesFact sheet from tutor2u which explains some of the factors that may influence why businesses locate overseas.

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Title of suggested activity Suggested activities Suggested timings Also related to

How trade might benefit an economy

Pairs or groups of three or four learners could be asked to brainstorm the benefits to the wider economy of international trade. To guide them, tutors could suggest that they take a stakeholder approach to answering this question. For example, learners could be encouraged to consider the benefits of trade for the following stakeholders:• consumers• businesses• workers• government.

An A3 grid-style worksheet could be devised so that learners have somewhere to record their ideas.Feedback discussion could include:• consumers (benefits could include wider choice and variety, lower prices, being able to consume

goods unavailable in the UK such as pineapple, higher real incomes due to lower prices of imports lowering the rate of inflation)

• businesses (benefits could include lower production costs from using cheaper imported materials/inputs, higher revenues from selling to overseas markets, higher profits from these two factors)

• workers (benefits could include more jobs in export-related industries, job security, higher incomes and income for local communities)

• government (benefits could include greater tax revenue from increased economic activity, increased tax revenue from any tariffs on imports, increased GDP through selling of exports).

Why do countries trade?Economics Onlinehttp://www.economicsonline.co.uk/Global_economics/Why_do_countries_trade.htmlOutlines some of the benefits and disadvantages of trade. Introduces the concept of comparative advantage in a simple way which may be useful as extension reading and/or for developing some of the points raised in the discussion.

Broader Economic Benefits of Tradetutor2uhttp://www.tutor2u.net/economics/blog/unit-4-macro-broader-economic-benefits-of-tradeOutlines some of the benefits of trade which includes a 2-minute video from The Economist.

10 benefits of the WTO trading systemWorld Trade Organizationhttps://depts.washington.edu/wtohist/Research/documents/10benefits.pdfOutlines 10 benefits of the WTO trading system. Benefits 5, 6 and 7 provide useful statistics to support earlier discussion. This link could be given to learners while they are working on this activity to help them come up with ideas supported by evidence.

45 minutes Unit 1 LO5

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Title of suggested activity Suggested activities Suggested timings Also related to

UK car industry case study – the impact of globalisation and foreign investment on employment

Learners could first be tasked with finding out the UK’s main exports of goods and services and identifying companies that operate in these sectors. For example, two of the main UK goods exports are motor vehicles (companies such as Nissan, Toyota and Honda) and pharmaceuticals (companies such as GSK, AstraZeneca). This task could be set as a homework research activity or completed during lesson time. Learners could feed back findings in preparation for the second part of the activity.

United Kingdom’s Top 10 Exports World’s Top Exportshttp://www.worldstopexports.com/united-kingdoms-top-exports/Includes up-to-date information on the UK’s top exports and the top exporting companies.

The second part of this activity could be a UK car industry case study. The UK car industry mainly consists of foreign brands such as Nissan, Toyota, Honda (Japanese), and BMW Mini (German) but accounts for one of the largest shares of UK goods exports. Therefore, it makes a good case study to demonstrate the positive impacts of globalisation on investment and employment. Tutors could adapt the detailed articles below into a workable case study on the UK’s car industry with specific emphasis on the benefits that inward investment from foreign companies has had on employment, suppliers, local communities and wider economic benefits of greater exports.

Learners could be split into groups and given a specific stakeholder to investigate – e.g. employees, suppliers, government, local communities – and then be asked to present their findings. A poster summarising their findings could also be required and then be made into a good classroom display.

The fall and rise of Britain’s car industryThe Telegraphhttp://www.telegraph.co.uk/finance/newsbysector/industry/engineering/11529330/The-fall-and-rise-of-Britains-car-industry.htmlData on the companies that now make up the UK car industry, the percentage of cars exported that are produced in the UK, the types of cars produced and for which markets, and the numbers employed.

Mapping UK automotiveAutomotive Council UKhttp://www.automotivecouncil.co.uk/mapping-uk-automotive/An interactive map which gives information on the different companies in the UK automotive industry.

It was once Britain’s motor city. Now Coventry’s wheels are turning againThe Guardianhttps://www.theguardian.com/business/2016/apr/23/coventry-britain-motor-city-wheels-turning-againArticle featuring the impact on Coventry of foreign investment into the local car industry.

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Title of suggested activity Suggested activities Suggested timings Also related to

UK steel industry case study – the impact of globalisation on employment

The UK steel industry makes a good case study of the negative impacts that globalisation can have on employees and communities – especially those that are dependent on one particular industry. This can leave these communities and workers cut off from the benefits and gains of globalisation.

Tutors could adapt the detailed articles below into a workable case study on the UK’s steel industry with specific emphasis on the negative impacts that globalisation can have on businesses, employment, suppliers, and local communities.

Tutors could also split the group in half and ask one set of learners to argue the case for the UK government supporting the UK steel industry while the other half could consider the counterargument – i.e. the case against the UK government supporting the industry. Britain’s steel industry: What’s going wrong?BBC Newshttp://www.bbc.co.uk/news/business-34581945Good clear outline of the crisis in the UK steel industry including statistics on the impact on UK jobs.

Tata Steel: 4 charts that show why the UK steel industry is in crisisThe Independenthttp://www.independent.co.uk/news/business/news/steel-redcar-tata-four-chart-that-shows-why-the-uk-steel-industry-is-in-crisis-and-why-the-a6701111.htmlThis article explains why the UK steel industry is in crisis and also the possible effect on employment.

The government must save UK steel – or pay the price for years to comeThe Guardianhttp://www.theguardian.com/commentisfree/2016/apr/13/uk-steel-industry-tata-government-cost-communitiesThis article explains some of the effects on local communities and other jobs in the supply chain if the UK steel industry closes down and argues the case for government intervention to save the industry.

Accept that the UK steel industry is failing – find something else to produceInternational Business Timeshttp://www.ibtimes.co.uk/accept-that-uk-steel-industry-failing-find-something-else-produce-1552485This article is broadly in favour of globalisation and argues that the government should not try to keep the industry going. Arguments are supported by the benefits of globalisation and the possible negative effect on jobs should the UK government step in to save the industry.

1.5 hours Unit 1 LO5Unit 10 LO4

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Title of suggested activity Suggested activities Suggested timings Also related to

The benefits of globalisation to consumers

For this activity, tutors could give learners a demonstration of how globalisation affects them personally – e.g. the clothes they wear, the food they eat, the car they drive (e.g. foreign brand but assembled in the UK from foreign-made parts), the places they have visited, etc.

Learners could then be set this homework task. They could be asked to keep a diary for a day of all the things they use/consume in a day that have relied upon the integration of economies around the world. For example, ate an orange from Spain for breakfast, used messaging service in my iPhone (that was ‘assembled in China and designed in California’), wore jeans made in Vietnam, t-shirt made in Bangladesh, and trainers made in Indonesia etc.

Learners could then feed back their findings by pinning sticky notes on a large map of the world in the classroom to create an interesting visual display and illustrate the benefits to consumers of an interconnected economy.

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SUGGESTED ACTIVITIESLO No: 2

LO Title: Understand the opportunities and challenges that business face when operating internationally

Title of suggested activity Suggested activities Suggested timings Also related to

Country profiling and SWOT analysis

Learners could be assigned to groups (3 to 4 in each) and be given the task of researching a country. Suggestions for the countries could be the BRIC economies of Brazil, Russia, India and China; the MINT economies of Mexico, Indonesia, Nigeria and Turkey.

Groups could be asked to complete the following tasks:• Build up an economic profile of the country being researched. Tip for doing this is to type ‘economy

of ........’ into Wikipedia.• Produce a SWOT (strengths, weaknesses, opportunities and threats) analysis for that particular

economy based on research gained in the first task and other recent news reports from that country.

All these findings should be typed up into the pro forma document included. These could then be collated into a pack by the tutor and photocopied for the rest of the group and/or uploaded onto the school/college VLE.

In a follow-up lesson groups could be given the task of presenting their findings to the rest of the group. They could be tasked with providing some visual aid, such as a poster, to help them with this. Posters could then be displayed around the classroom during the teaching of Unit 19.

Economic profiling on Wikipediahttps://en.wikipedia.org/wiki/Economy_of_NigeriaThere is a wealth of information about all economies on Wikipedia. Just type in ’economy of ........’

Other websites useful for country profiling are:

CIA https://www.cia.gov/library/publications/the-world-factbook/

ELDIS http://www.eldis.org/country/

World Bank http://web.worldbank.org/WBSITE/EXTERNAL/COUNTRIES/0,,pagePK:180619~theSitePK:136917,00.html

2.5 hours Unit 10 LO4

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Title of suggested activity Suggested activities Suggested timings Also related to

Opportunities to businesses of operating internationally – Brompton Bicycle case study

Brompton Bicycle Ltd makes an excellent case study of a UK-based business that operates globally: 80% of Brompton bikes are sold outside of the domestic market. Brompton’s folding bike operates in a high-end niche market targeting wealthy urban commuters and so is well placed to benefit from globalisation and rising global incomes. It is also a good example of a business that chooses to locate all its production (including outsourced production) in the UK.

Learners could be asked to consider some of the information outlined in the articles/videos below and discuss answers to the following questions:• Why are international markets so important to a business such as Brompton? • What are the opportunities to a business such as Brompton of operating internationally?• Should it consider relocating its manufacturing overseas in order to benefit from cheaper labour

and reduce production costs?

Learners could then feed back to a general discussion.

Learners could then be asked to write a report to Brompton’s board of directors outlining the case for and against relocating the firm’s manufacturing facilities from West London to East Asia. The report should offer a clear recommendation to the board, supported with evidence.

Brompton boss: The bike-maker who disproved the doubtersBBC Newshttp://www.bbc.co.uk/news/business-23239764Some facts about Brompton including its reasons for locating production in the UK.

Brompton bikes: why the folding bicycles are made in BritainThe Telegraphhttp://www.telegraph.co.uk/finance/good-news/9482147/Why-Brompton-is-built-in-Britain.htmlA 2:30-minute video on why Brompton bikes are manufactured in the UK.

Brompton Bicycle eyes growth in the UKThe Telegraphhttp://www.telegraph.co.uk/finance/businessclub/9488434/Brompton-Bicycle-eyes-growth-in-the-UK.htmlArticle on why Brompton bikes are manufactured in the UK.

Brompton Bicycle gears up for growth with bigger factoryThe Guardianhttps://www.theguardian.com/business/2015/aug/17/brompton-bicycle-factory-expansionArticle outlining some of Brompton’s largest overseas markets.

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Title of suggested activity Suggested activities Suggested timings Also related to

Opportunities to businesses of operating internationally – Brompton Bicycle case study (continued)

Brompton Bicycles – the unfolding saga of a two-wheeled success storyThe Guardianhttp://www.theguardian.com/lifeandstyle/2015/apr/17/brompton-bicycles-the-unfolding-saga-of-a-two-wheeled-success-storyArticle that outlines Brompton’s plans to invest in the American market.

International Location – Business Issuestutor2uhttp://www.tutor2u.net/business/reference/international-location-business-issuesFact sheet explaining five considerations that businesses need to consider when trading and operating internationally: accessing demand in foreign markets, cost reduction, trade barriers, exchange rate fluctuations, and political stability.

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Title of suggested activity Suggested activities Suggested timings Also related to

Challenges to businesses of operating internationally – Tesco’s Fresh & Easy case study

Tesco’s move into the United States market with its Fresh & Easy chain provides a good case study on the potential challenges of operating internationally; in particular, not adapting to cultural factors and/or preferences for different products and services.

Learners could be asked to consider some of the information in the links below either during the lesson or as a homework research activity to find out about Tesco’s venture into the US grocery market (e.g. different learners could be allocated different articles to read prior to the lesson/during the lesson).

Tutors could then assign learners into groups of up to four. Groups could then be tasked with explaining how, with the benefit of hindsight, Tesco could have adapted its marketing mix and/or other strategies to try and ensure the Fresh & Easy venture was successful in America. Groups could then be asked to present their ideas using visual aids such as a poster or PowerPoint presentation.

Why Tesco’s Fresh & Easy turned Americans offThe Guardianhttps://www.theguardian.com/business/2012/dec/05/tesco-fresh-easy-turned-americans-offNews article outlining many of the reasons why Fresh & Easy failed in the United States including cultural differences.

Fresh & Easy: Tesco’s great American disasterThe Weekhttp://www.theweek.co.uk/politics/23805/fresh-easy-tescos-great-american-disasterNews article outlining Tesco’s failure to adapt its marketing mix to the American market.

Tesco’s mistakes in US – Not understanding the American CustomerCasestudyinchttp://www.casestudyinc.com/tescos-mistakes-in-us-not-understanding-the-american-customerArticle offers a list of factors that led to Tesco’s failure with its Fresh & Easy brand in America.

Tesco profits fall as supermarket pulls out of USBBC Newshttp://www.bbc.co.uk/news/business-22179738A 2:28-minute video that gives some context to Tesco’s losses including the Fresh & Easy venture.

US Tesco brand Fresh & Easy ‘wasn’t aspirational’BBChttp://www.bbc.co.uk/news/business-22181904A 5-minute radio documentary from the BBC’s Today programme. Could be used as part of a ‘flip learning’ activity.

1.5 hours Unit 6 LO1, LO5Unit 7 LO2Unit 10 LO4

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Title of suggested activity Suggested activities Suggested timings Also related to

Glocalising products when trading internationally – the opportunities and challenges of operating internationally – McDonald’s case study

Glocalisation – acting global thinking local – is a strategy used by many businesses to deal with the opportunities and challenges of operating in a global market.

Learners could first be asked to complete a research exercise prior to the lesson where they have to research as many global variations of McDonald’s products as possible. They could download and bring images to the lesson. Learners could feed back their findings to a full group discussion.

Learners could then be asked to consider the opportunities and challenges for businesses of ‘glocalising’ their products in the way that McDonald’s does. Opportunities could include greater market share, allows business to compete head-on with local suppliers, increased revenues and profits, improved reputation and image. Challenges include higher costs, need for extensive market research, maybe unable to benefit from economies of scale. Learners could feed back their ideas to a full group discussion.

As an extension activity, learners could be asked to find out about other businesses operating internationally that ‘glocalise’ their products. McDonald’s ‘Glocalization’International Marketing Communicationshttp://internationalmarketingcommunications.com/mcdonalds-glocalization/Outlines some examples of how McDonald’s adapts its products to local tastes when operating internationally.

McDonald’s Glocalisation – Burgers without Beef?Glocalisationmarketinghttps://glocalizationmarketing.wordpress.com/2012/05/06/mcdonalds-glocalisation-burgers-without-beef/Explains how McDonald’s adapts it menus to cater for different religious affiliations.

What is glocalization?HowStuffWorkshttp://money.howstuffworks.com/glocalization1.htmMore examples of how McDonald’s ‘glocalises’ its menus.

McDonalds: a GloCal CompanySlideshare.nethttp://www.slideshare.net/Eloise9990/mc-onalds-a-glocal-company-okA 29-slide presentation including some which detail McDonald’s ‘glocal’ strategy.

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Title of suggested activity Suggested activities Suggested timings Also related to

The opportunities of being a small part of the global supply chain: ARM – video case study

Learners could watch the video link below and answer the following questions and then feed back to a group discussion:• Which company was the first to adopt ARM technology?• What does ARM sell? How does ARM make money?• In the last year, how many chips have been made with ARM technology?• Why doesn’t ARM go into manufacture?• ARM is partner to all the computing giants such as Google, Apple and Microsoft. What is ARM’s

philosophy of doing business?

The purpose of this task is to get learners to think about the opportunities available for businesses to be a very profitable player in one part of the global supply chain and to consider the opportunities and challenges of this.

From The Newton To The iPhone, Made In Britain BBCBBC/YouTubehttps://www.youtube.com/watch?v=1ynyY3bJ65IA 6.21-minute clip from BBC documentary series Made in Britain including an interview with the CEO of ARM holdings (UK based microchip designer).

ARM company overviewARMhttps://www.arm.com/companyFurther information on ARM and what it does.

ARM chip designer to be bought by Japan’s SoftbankBBC Newshttp://www.bbc.co.uk/news/business-36822806Details of Softbank’s planned acquisition of ARM.

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Conducting a PEST/PESTLE analysis of a market/country

In devising a strategy for operating internationally, a business will want to analyse the external environment to help foresee any potential challenges. For this activity, learners could undertake a PESTLE analysis – i.e. consider the political, economic, social, technological, legal and environmental influences – of a business that wishes to expand into, or is already operating in, an international market. Learners could undertake the PESTLE analysis for a business of their choice or a business already discussed in previous exercises. An A3 grid-style worksheet could be used for answers to this exercise.

What is PEST analysistutor2uhttp://www.tutor2u.net/business/reference/what-is-pest-analysisA brief outline of PEST analysis.

What is PESTLE Analysis? A Tool for Business Analysis; An Example PEST Analysis of The UKPESTLE Analysishttp://pestleanalysis.com/what-is-pestle-analysis/http://pestleanalysis.com/pest-analysis-of-the-uk/An overview of the components of a PESTLE analysis and an example of a PEST analysis of the UK.

The Role of PEST Analysis in Bolstering International BusinessPESTLE Analysishttp://pestleanalysis.com/pest-analysis-in-international-business/An outline of PEST analysis and how it is used in international business.

PESTLE Analysis for Tesco discusses its Business EnvironmentPESTLE Analysishttp://pestleanalysis.com/pestle-analysis-tesco/Application of PESTLE analysis to Tesco including some mention of Tesco’s international operations.

PESTLE – How Businesses Can Handle Political Riskstutor2uhttp://www.tutor2u.net/business/blog/pestle-how-businesses-can-handle-political-risksA short video on how businesses can deal with the ‘political’ side of PESTLE analysis with coverage of recent international political events. It could be used to help stimulate a good discussion.

Business and the Technological Environmenttutor2uhttp://www.tutor2u.net/business/reference/business-the-technological-environmentA 30-slide presentation on the ‘technological’ side of PESTLE analysis. This considers both the opportunities and threats that technology can offer to businesses operating in the global economy.

1.25 hours Unit 1 LO6

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SUGGESTED ACTIVITIESLO No: 3

LO Title: Understand the international trading environment in which businesses operate

Title of suggested activity Suggested activities Suggested timings Also related to

Trade barriers research exercise and case study presentation

Learners could be split into five groups with each group responsible for researching one of the following barriers to trade:• Embargoes• Quotas• Sanctions• Tariffs• Technical barriers.

Each group would be responsible for:• Explaining the key term/barrier to trade to the rest of the class• Supporting the above with a real case study of when/where this barrier to trade has been used and

the context for its use.

The case study should be typed up to allow for printing and distribution to the rest of the group.

Groups could summarise their findings in a short PowerPoint presentation to the rest of the class.

Protectionismtutor2uhttp://www.tutor2u.net/economics/reference/protectionismThis web page outlines tariffs, quotas and technical barriers and various other forms of protectionist policies.

Sanctions, embargoes and restrictionsUK governmenthttps://www.gov.uk/guidance/sanctions-embargoes-and-restrictionsDetailed web page which gives an overview of what sanctions and embargoes are together with current examples.

1 hour of lesson time + 50 minutes for the presentations

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Title of suggested activity Suggested activities Suggested timings Also related to

Trade blocs research activity This activity could be done as an in-class or homework research activity.

Learners could be asked to research the different trade blocs in the world and make a list of the member states. They could then be asked to add these to a blank world map (e.g. colour in) to get some visual idea of the extent to which trade blocs are a major factor in the global trading system.

Note that while the ‘adding to the map’ exercise may not seem like a Level 3 activity, it is, nevertheless, quite common for many learners on a Level 3 course to have very little idea of geography and where various countries are in relation to each other. This activity should make some of the global issues studied in this unit more concrete.

Blank world mapsAlternate History Wikihttp://wiki.alternatehistory.com/doku.php/blank_map_directory/world_gallery_3A website containing a variety of blank maps that could be used in the activity.

Trading Blocs and Regional Trade Agreements (RTAs)tutor2uhttp://www.tutor2u.net/economics/reference/trading-blocs-and-regional-trade-agreements-rtasShort summary of trade blocs including a list of the main trade blocs in the world (although this does not state individual member countries).

Trade blocWikipediahttps://en.wikipedia.org/wiki/Trade_blocA detailed summary of the world’s main trading blocs including colour-coordinated maps.

Episode 38: Trade Blocsmjmfoodiehttps://www.youtube.com/watch?v=YDUq0DINhYkA 3:50-minute video outlining different types of trade blocs.

45 minutes

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Title of suggested activity Suggested activities Suggested timings Also related to

WTO flip learning exercise Learners could be asked to research facts about the WTO – e.g. member countries, purpose and history of the organisation. They could be asked to bring these findings to the lesson together with one news article about the WTO.

Learners could then be asked to discuss their findings in groups and then prepare to feed back to a general discussion.

World Trade Organisationtutor2uhttp://www.tutor2u.net/economics/reference/world-trade-organisationFacts about the WTO including a 2:30-minute video entitled ‘Trade matters to me’ outlining the benefits of trade and another 4:47-minute video on the 20th anniversary of the WTO.

What is the World Trade Organization?BBC Newshttp://www.bbc.co.uk/news/business-35074942Good clear overview of the WTO.

45 minutes – 1 hour of lesson time

Unit 10 LO4

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Title of suggested activity Suggested activities Suggested timings Also related to

Regulating imports to protect domestic producers and workers

Learners could be asked to put themselves in the position of a steel worker from south Wales or the north east of England; the worker is in an industry under immense competitive pressure from cheap imported steel from China.

They could be tasked with writing a letter to their local MP requesting that the government does something to reduce the flow of imported steel into the UK/European Union. In their letter they may want to draw attention to the consequences that cheap imported steel is having on their industry, job security and the local community.

The following links may be useful in structuring this letter.

Closure of Tata Steel’s Port Talbot could trigger 20 years of unemployment for local economyThe Telegraphhttp://www.telegraph.co.uk/business/2016/04/07/closure-of-tata-steels-port-talbot-could-trigger-20-years-of-une/

Tata Port Talbot steelworks closure ‘could hit 15,000 jobs’BBC Newshttp://www.bbc.co.uk/news/uk-wales-35930158

Here’s what the steelworks mean to the people of Port TalbotThe Guardianhttp://www.theguardian.com/uk-news/2016/apr/01/heres-what-the-steelworks-mean-to-the-people-of-port-talbot-tata-steel

Port Talbot’s steelworkers are proud but fearfulThe Economisthttp://www.economist.com/news/britain/21696505-view-south-welsh-coast-port-talbots-steelworkers-are-proud-fearful

British steel industry buckles under the weight of cheap Chinese productThe Guardianhttps://www.theguardian.com/business/2015/sep/28/british-steel-industry-buckles-under-weight-cheap-chinese-product-ssi-redcar

1 hour

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Title of suggested activity Suggested activities Suggested timings Also related to

Exchange rates and operating internationally

Tutors could introduce the topic of exchange rates by finding out what learners already know through a Q&A session. For example:• What is an exchange rate?• When does it affect you personally?• Which are the four/five main currencies in the world (and why?)• Why would businesses be interested in exchange rates?

It is worth showing real exchange rate data to illustrate to learners that the value of one currency in terms of another is always changing. This makes an abstract topic more real to the learner. The following link to the BBC’s market data is ideal for this:

Market DataBBC Newshttp://www.bbc.co.uk/news/business/market_data/currency/default.stmTrends over 24 hours, one month, three months and one year are available on this site.

Learners could then do the questions from the textbook (see below) on pages 115–117. These include a range of questions including multiple-choice and a real business case study on Wheathills:http://www.wheathills.com/

OCR Business for A Level, by Andy Mottershead, Alex Grant and Judith KeltHodder Education (2015 edition)Chapter 16 on international and free trade covers exchage rates on pages 110–117, providing an explanation of how the exchange rate affects businesses. It includes a range of exercises related to trade and exchange rates (30 minutes approximately for exercises).

Business Maths – Calculating Exchange Ratestutor2uhttp://www.tutor2u.net/business/reference/business-maths-exchange-ratesA 6-minute video on exchange rate calculations tailored for A Level business students.

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Title of suggested activity Suggested activities Suggested timings Also related to

Dealing with the monetary issues of trading internationally – jigsaw learning activity

Learners could be split into groups of up to four students. Each group could be given one of the following to research in depth:• hedging (e.g. forward contracts)• currency risk sharing agreements• government bodies such as UK Trade and Investment and Export Credit Guarantee Department• international payment methods (e.g. international clearance and banking)• trade insurance.

Tutors could issue these groups with fact sheets derived from the links below to help learners. Once the groups have understood the topic they have been allocated, they could write it up for other learners and add to a grid-style worksheet that includes spaces for learners to write up their findings of each principle/concept. Tutors could then reallocate learners into new groups so that each group has someone who is able to feed back to the other group members on a particular topic.

Foreign exchange hedgeWikipediahttps://en.wikipedia.org/wiki/Foreign_exchange_hedgeThe first three sections provide enough detail for Level 3 learners on hedging and forward contracts.

Currency Risk SharingInvestopediahttp://www.investopedia.com/terms/c/currency-risk-sharing.aspThe first paragraph on this web page is enough for Level 3 learners.

Export finance and insurance – an overviewUK Export Financehttps://www.gov.uk/guidance/export-finance-and-insurance-an-overviewOutlines UK government services that help businesses finance and insure their trade in exports.

Letter of Credit; Trade CreditInvestopediahttp://www.investopedia.com/terms/l/letterofcredit.asphttp://www.investopedia.com/terms/t/trade-credit.aspWeb pages that briefly outline these two methods of financing international trade.

Trade credit insuranceWikipediahttps://en.wikipedia.org/wiki/Trade_credit_insuranceThe first section of this web page is enough for Level 3 learners.

1 hour

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SUGGESTED ACTIVITIESLO No: 4

LO Title: Understand different international expansion strategies used by businesses

Title of suggested activity Suggested activities Suggested timings Also related to

Direct investment – case study of VW in China

Introducing the strategy of direct investment could be best done through a business case study. For this activity, learners could be asked to research some facts about VW’s presence in China – e.g. number of factories, market share and number of vehicles produced, total employees, etc.

Information from the links below could be edited into a case study or be used by learners to answer the questions. Questions/issues to consider arising from VW’s investment in China could include:• Motivations for VW’s investment in China• The strategies used by VW over the years to invest in China • What influenced VW’s choice of location for its factories in China – e.g. closeness to markets and

suppliers, skills of local labour force, legislation etc?• What are the opportunities and threats for further expansion?

Volkswagen builds its brand in ChinaFinancial Timeshttp://www.ft.com/cms/s/0/05db03d8-85c5-11e2-bed4-00144feabdc0.html#axzz49TCZaZK0A very readable introduction to VW in China. The article (subscription required) outlines how VW initially set up in China through the use of joint ventures before moving on to larger scale investment.

Volkswagen Group in ChinaVWhttp://www.volkswagenag.com/content/vwcorp/info_center/en/themes/2013/04/Volkswagen_Group_in_China.htmlAn outline of VWs investment in China including a 2:30-minute video.

Volkswagen leads the way in the FDI decision raceMichael Robinsonhttp://fn0363michaelrobinson.blogspot.co.uk/2012/03/volkswagen-leads-way-in-fdi-decision.htmlExplains what foreign direct investment (FDI) is and applies this to VW in both China and India.

Volkswagen: No Let Up In China AmbitionsForbeshttp://www.forbes.com/sites/greatspeculations/2016/02/19/volkswagen-no-let-up-in-china-ambitions/#5508efc226daA more detailed news article outlining VW’s investment in China including plans for the future. The article also gives market share data for VW in China compared to other automobile brands.

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Title of suggested activity Suggested activities Suggested timings Also related to

International franchising Learners could be divided into groups of three or four and asked to research international franchises.

Learners could first be asked to research the benefits of international franchising for:• the franchisor • the franchisee.

Learners could then be required to feed back their findings to a group discussion.

Groups of learners could then research a franchise that they would like to operate. The IFA website has a link to help learners come up with an idea. Groups then need to decide the following:• Which franchise are they going to apply to operate?• Why have they chosen this franchise?• Where are they going to operate this (with justification)?

They could present their business proposal back to the rest of the class in a formal presentation.

What is a franchise? International Franchise Association (IFA)http://www.franchise.org/what-is-a-franchiseDetailed web page outlining different types of franchises.

International Franchise OpportunitiesInternational Franchise Association (IFA)http://www.franchise.org/international-franchise-opportunities?international_yes=YesThis link allows you to search for available franchises by industry and region. This may be interesting for learners.

Your Very Own Starbucks OpportunityStarbuckshttp://www.starbucks.co.uk/business/franchised-stores/opportunityStarbucks UK website offering advice on how to set up a coffee shop franchise.

1.75 hours

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Title of suggested activity Suggested activities Suggested timings Also related to

Introduction to joint venture – research task

Learners could be asked to research an example of a recent joint venture – the tutor2u link below includes a list – and consider the following:• What is the background to the joint venture?• Why is the business forming a joint venture?• What are the benefits to the business of forming a joint venture?• What are the potential risks of the joint venture?

The answers to all the questions should be applied/contextualised to the business under consideration.

Strategies for Expanding into International Marketstutor2uhttp://www.tutor2u.net/business/reference/strategies-for-expanding-into-international-marketsDetailed fact sheet from tutor2u outlining various strategies for international expansion such as joint venture, selling via overseas agents or distributors, exporting direct to international customers. Advantages and disadvantages of each method are outlined.

Joint Venturestutor2uhttp://www.tutor2u.net/economics/reference/joint-venturesThis web page from tutor2u lists examples of recent joint ventures.

GM’s China joint venture to build Indonesia factoryFinancial Timeshttp://www.ft.com/cms/s/0/4bf1e9b8-aa9e-11e4-91d2-00144feab7de.html#axzz497HU7bMUA recent news article (subscription required) about a joint venture.

1 hour

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Title of suggested activity Suggested activities Suggested timings Also related to

Deciding on a joint venture – report and presentation

For this task, learners could be given the scenario that they work for a multinational car manufacturer (e.g. VW as in the first suggested activity). The business is considering entering the large Indonesian market (population of 240 million approximately) but wants to work with another business through a joint venture to minimise the risks. The board of directors wants to know what factors need to be considered before such a joint venture can take place.

Learners could be put into groups of three and asked to research the above. Findings can be given through a report and/or presentation.

Issues to consider could include:• Is the market viable?• Are there enough experienced firms already in the market? Would these make suitable joint

ventures? Are they reliable? (See related website resource below.)• What sort of car model(s) might be suitable for this market? Could it be a model that has reached

the end of the product life cycle in a more developed market? Therefore, could it be introduced in the Indonesian market with low development costs?

• Are there any CSR issues to consider?

Automotive Manufacturing Industry IndonesiaIndonesia Investments http://www.indonesia-investments.com/business/industries-sectors/automotive-industry/item6047An up-to-date overview of the automobile industry in Indonesia including economic outlook data for the country.

Choosing the right joint venture partnerNI Business Infohttps://www.nibusinessinfo.co.uk/content/choosing-right-joint-venture-partnerThis web page briefly outlines how to choose the right joint venture partner.

Joint ventures and partneringInfo Entrepreneurshttp://www.infoentrepreneurs.org/en/guides/joint-ventures-and-partnering/This web page outlines in more detail how to choose the right joint venture partner.

1.25 hours Unit 3 LO1

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Title of suggested activity Suggested activities Suggested timings Also related to

Offshoring – case study of the clothing/apparel industry

Learners could be asked to weigh up the advantages and disadvantages of offshoring in the context of a particular business/industry.

What is the difference between outsourcing and offshoring?tutor2uhttp://www.tutor2u.net/business/blog/qa-what-is-the-difference-between-outsourcing-and-offshoringShort web page that explains what offshoring is and some of the advantages and disadvantages of this strategy.

Herd instinct: Companies need to think more carefully about how they offshore and outsourceThe Economisthttp://www.economist.com/news/special-report/21569575-companies-need-think-more-carefully-about-how-they-offshore-and-outsource-herd-instinctA detailed article (subscription may be required) that outlines the advantages and disadvantages of offshoring including some real-life examples.

Primark drops three Indian suppliers for using child workersThe Independenthttp://www.independent.co.uk/news/business/news/primark-drops-three-indian-suppliers-for-using-child-workers-848564.htmlNews article outlining some of the CSR issues related to offshoring and the damage this can do to a company’s reputation.

Primark ‘shocked’ by Bangladesh building collapseThe Telegraphhttp://www.telegraph.co.uk/finance/newsbysector/retailandconsumer/10017011/Primark-shocked-by-Bangladesh-building-collapse.htmlMore recent news article about the Rana Plaza factory disaster in Bangladesh in 2013 thus outlining some of the CSR issues related to offshoring.

40 minutes Unit 17 LO3Unit 19 LO1

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30

Title of suggested activity Suggested activities Suggested timings Also related to

Use of e-commerce as a global expansion strategy

Learners could consider some of the examples from below, and their own knowledge/research, to answer the following question:• Is e-commerce a necessary strategy for a business to successfully expand overseas?

The group could be split in two to focus on opposing arguments. Feedback could be in the form of a class debate.

Grasmere Gingerbreadhttps://www.grasmeregingerbread.co.uk/Sarah Nelson’s Grasmere Gingerbread has only one shop. Until the onset of e-commerce you could only really buy its gingerbread by visiting the shop in the Lake District. Now, due to the internet, the business can sell its products all over the world.

Examples of How E-commerce Has Disrupted Markets and Industriestutor2uhttp://www.tutor2u.net/business/blog/examples-of-how-e-commerce-has-disrupted-markets-and-industriesA list of examples of how e-commerce has transformed some industries.

E-commerce: The Rise of Netflixtutor2uhttp://www.tutor2u.net/business/blog/e-commerce-the-rise-of-netflixA case study on Netflix.

Is the Sharing Economy Really a Threat to the Hotel Industry?tutor2uhttp://www.tutor2u.net/business/blog/is-the-sharing-economy-really-a-threat-to-the-hotel-industryA 5-minute video on how businesses such as AirBnB are disrupting the hotel industry.

E-Commerce Helps HMV Return to Profitabilitytutor2uhttp://www.tutor2u.net/business/blog/e-commerce-helps-hmv-return-to-profitabilityThe argument that e-commerce should be part of any business’s long-term survival.

Primark Doesn’t Do E-Commercetutor2uhttp://www.tutor2u.net/business/blog/primark-doesnt-do-e-commerceThe case that e-commerce is not necessary for all businesses.

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Title of suggested activity Suggested activities Suggested timings Also related to

Use of e-commerce as a global expansion strategy (continued)

The future of e-commerce: bricks and mortarThe Guardianhttps://www.theguardian.com/business/2016/jan/30/future-of-e-commerce-bricks-and-mortarNews article on how some e-commerce retailers are actually opening ‘bricks and mortar’ stores.

Ikea CEO Sees Online Accounting for 10% of Revenue by 2020Bloomberghttp://www.bloomberg.com/news/articles/2015-12-10/ikea-ceo-sees-online-accounting-for-10-of-revenue-by-2020News article about how Ikea came to e-commerce late but now plans to expand this side of the business.

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ocr.org.uk/businessOCR customer contact centre

Cambridge Technicals Level 3

Business textbook

Developed in partnership with Hodder Education this book covers a range of units within this qualification. http://www.hoddereducation.co.uk/Product/9781471874796

Publication date: 30 Sep 2016

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