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Specification:

• AQA

  3.7.5 Evaluating opportunities and analyzing the external environment

  threats: economic change

• Edexcel

  3.1.4 Impact of external factors

  Basic business terms from article to research

  Imports

  Decline

  market share

  Consumer confidence

  Private equity

Click to read the article below and then answer the questions:

UK cycling industry struggles despite road and track success

• What PESTLE factors are affecting the UK cycling industry?

• Draw a demand and supply diagram to illustrate the changes mentioned in the article.

• Do you believe that the bicycle is going through a ‘decline’ phase in its product life cycle?

  Extended research

  The bicycle industry focuses on ‘big ticket’ sales. Do you believe the industry has demonstrated sufficient characteristics of an inelastic good to warrant these sales?

Tim Punter, Moulsham High School