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IGCSE · Cambridge (CIE) · 0986

Evaluate stakeholder conflict in a business decision

Use evidence to compare stakeholder objectives and make a qualified recommendation for a business decision.

Understanding business activity · Cambridge IGCSE (9–1) Business Studies 0986 · 1.1 / 1.3 / 1.5
Exam scope and assessment notes

Cambridge IGCSE (9–1) Business Studies 0986, 2026 syllabus, Version 2. This is the separate 9–1 legacy route; 0774 replaces it for first assessment June 2027. Candidates are not assessed on constructing income statements or statements of financial position, nor on price-elasticity or exchange-rate calculations. Simple cash-flow forecast construction is assessed. Written practice is self-checked, not an official Cambridge grade; timed-paper evidence and human subject-teacher review remain outstanding.

Before you begin

  • No previous business study is assumed. Read each scenario for the decision-maker, objective, available evidence and constraints.

Work on paper. Try each question before revealing help, and explain why your method works.

Quick readiness check

What makes a recommendation justified?

What you will learn

  • Explain conflicting business and stakeholder objectives
  • Use context to evaluate alternatives
  • Make a justified recommendation

Trace benefits and costs across groups

A decision may support one objective while hindering another. Automation could increase productivity and support growth, but require finance and affect employee roles.

Identify which groups benefit, which may bear costs and over what time period. Add value or profit calculations only when the stated data support them.

Reach a conditional decision

A strong recommendation uses the scenario's evidence, weighs the most important factors and states conditions or information that could change the decision.

Avoid saying that one stakeholder always matters most. The business objective, legal responsibilities, customer response and longer-term viability can all affect the choice.

Pause and explain

If two options each benefit different stakeholders, what should the analysis do?

Put the idea to work

Worked example

A bakery is considering a second shop. Owners want growth; employees worry about workload; customers have long queues. Recommend a next step.

Show the worked solution
  1. Growth could increase sales and reduce queues if demand is sufficient.
  2. Staff workload and service quality may worsen if the new site is under-resourced.
  3. A pilot or staffing plan could test the proposal.

Answer A staged expansion is reasonable if a demand and staffing plan shows the bakery can serve both sites without reducing quality. A pilot could test demand first; otherwise it may be better to add capacity at the current site.

Try a topic test

Choose Easy, Normal or Difficult. Save your answers and open worked review after finishing.

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From guided practice to a new situation

Write your answer and reasoning first. Use a hint only if you are stuck. The model solution is for self-checking; your written work is not automatically marked.

1 · Guided

A manufacturer can invest in safer equipment that raises costs now but may reduce injury risks and staff absence. Advise the owner using at least two stakeholder perspectives.

Give me a hint

Compare immediate cost with employee and business effects.

Compare my reasoning
  1. Owners face an investment cost.
  2. Employees may benefit from a safer workplace.
  3. Lower absence or disruption may support operations, but costs and evidence matter.

The investment may be justified if the safety improvement is substantial and affordable: employees benefit from reduced risk, while owners face upfront cost but may gain lower absence and more reliable production. Compare equipment performance and financing before deciding.

Look for these in your work

  • Owner cost assessed
  • Employee effect assessed
  • Conditional recommendation
2 · Independent

A firm considers closing an unprofitable branch. Explain one possible benefit to owners and one possible cost to employees or the local community.

Give me a hint

Follow resource reallocation and local impacts.

Compare my reasoning
  1. Closure may stop continuing losses or release resources.
  2. Employees may lose jobs.
  3. The community may lose access or local activity.

Owners may reduce ongoing losses and redirect resources; employees may face job loss, and the local community may lose a service or employment. The decision should consider whether the branch can be improved and the wider costs of closure.

Look for these in your work

  • Owner benefit explained
  • Other stakeholder cost explained
  • Alternative considered
3 · Transfer

A business chooses a supplier with a lower price but slower delivery. State what evidence would support the choice and what condition could reverse it.

Give me a hint

Compare purchase savings with inventory, production and customer effects.

Compare my reasoning
  1. Calculate or estimate the saving.
  2. Assess delay effects on stock and output.
  3. The cheaper option may fail if disruption costs exceed savings.

The choice is supported if total savings exceed extra inventory, delay or lost-sales costs. It could reverse if slow delivery causes stockouts, missed orders or quality problems.

Look for these in your work

  • Cost compared broadly
  • Operational effect considered
  • Reversal condition named

Common mistakes

  • Listing stakeholders without comparing objectives
  • Giving an unconditional recommendation
  • Ignoring evidence that could change the decision
Recall without your notes

What can you explain now?

What makes a recommendation justified?

Compare with the explanation

It uses relevant evidence and weighs the consequences

A decision should follow from the case information.

After trying it yourself, choose your next review. This is your self-assessment.

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Make it stick

How do you turn stakeholder analysis into a recommendation that could change if the evidence changes?

If you needed the solution, close it and solve the problem again from a blank page. A correct answer is stronger when you can explain the reason for each step.

Keep learning Business Studies (9-1)

Course scope and assessment

Ninety-eight original lessons map all 63 sections in the 2026 Version 2 syllabus, with worked examples and guided, independent and transfer practice. Cambridge states that 0986 is otherwise the same in subject content as 0450 but is graded 9–1. In June and November, entry is available in Administrative Zone 3 and to centres in Oman and UAE; confirm eligibility with Cambridge and your centre. Candidates cannot combine 0986 with 0450 or O Level 7115 in the same series. For 2027 first assessment, the code changes to 0774. Simple cash-flow forecast construction is assessed; construction of income statements and statements of financial position, price-elasticity calculations and exchange-rate calculations are excluded. Cambridge lists past papers and resources on the 0450 page for use with 0986. Full timed-paper practice, exam-grade evidence and human subject-teacher review remain outstanding; learner practice is self-checked and is not an official Cambridge grade.

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