Using Business Studies Directive Terms

HSC Business Studies | Free Study Notes

Using Business Studies directive terms correctly is one of the easiest ways to improve your HSC Business Studies exam responses. Directive terms tell you what the question is asking you to do, so understanding them helps you choose the right depth, structure and style for your answer.

In this lesson

• what directive terms are

• how to answer identify, outline and describe questions

• how to answer explain, analyse, discuss and evaluate questions

• how to approach recommend questions

• how directive terms affect marks and response depth

Core notes

What are directive terms?

Directive terms are command words used in exam questions. They tell you how to respond.

For example, a question might ask you to:

• identify a strategy

• explain an influence

• analyse a relationship

• evaluate the effectiveness of a business decision

• recommend a strategy for a business

The content may be similar, but the response style changes depending on the directive term.

A strong HSC Business Studies answer should always match the directive term. This helps you avoid writing too little, writing too much or drifting away from the question.

Why directive terms matter in HSC Business Studies

Directive terms matter because they show the level of thinking required.

Lower-order terms usually ask for recognition or basic understanding. Higher-order terms require explanation, links, judgement or recommendations.

For example:

• identify usually needs a short answer

• explain needs cause and effect

• analyse needs relationships or impacts

• evaluate needs a judgement

• recommend needs a suitable strategy and reasons

Understanding directive terms is especially important for short answer responses [Writing Strong Short Answers], business reports and extended responses.

Identify

What identify means

Identify means to recognise and name something.

This is usually a low-mark question. You do not need to explain in detail unless the question asks for it.

How to answer identify questions

Keep your answer short and direct.

Example question:

Identify one financial objective of a business.

Example answer:

“Liquidity.”

This is enough because the question only asks you to identify.

Exam tip

Do not waste time writing a long paragraph for an identify question. Answer clearly and move on.

Outline

What outline means

Outline means to sketch in general terms. You need to give the main features of the idea, but you do not need a detailed explanation.

How to answer outline questions

A good outline answer usually includes:

• the key term

• a brief description

• one relevant feature

Example question:

Outline one benefit of training employees.

Example answer:

“Training improves employees’ skills and knowledge, which can help them complete tasks more effectively.”

This gives the main idea without going into too much depth.

Exam tip

Outline questions need more than just naming the concept. Add a brief feature or effect.

Describe

What describe means

Describe means to provide characteristics and features.

This is more detailed than outline. You need to show what the concept is like, what it involves or what its main features are.

How to answer describe questions

A strong describe answer may include:

• a clear definition or description

• key features

• relevant business terminology

• a short example if useful

Example question:

Describe outsourcing as an operations strategy.

Example answer:

“Outsourcing involves a business using another organisation to complete some of its activities. For example, a manufacturer may outsource delivery to a logistics company. This allows the business to focus on its core activities while another business manages the specialised task.”

For more content practice, revise outsourcing [Outsourcing].

Exam tip

Describe questions are not asking you to judge whether something is good or bad. Focus on characteristics and features.

Explain

What explain means

Explain means to show how or why something happens.

This is one of the most common directive terms in HSC Business Studies. Your answer needs cause and effect.

How to answer explain questions

A strong explain answer usually follows this pattern:

1. State the concept.

2. Explain how it works.

3. Link it to a business effect or outcome.

Example question:

Explain how quality management can improve business performance.

Example answer:

“Quality management can improve business performance by reducing defects in the production process. If a business uses quality control checks, it can identify problems before goods reach customers. This may reduce waste, improve customer satisfaction and protect the business’s reputation.”

For this type of question, it helps to revise quality management [Quality Management].

Exam tip

Use linking words such as:

• because

• this leads to

• as a result

• therefore

• this improves

• this reduces

These help you show cause and effect.

Analyse

What analyse means

Analyse means to identify components and the relationship between them.

In Business Studies, analyse questions often ask you to show how one business factor affects another. You should break the issue into parts and explain the links between them.

How to answer analyse questions

A strong analyse answer should:

• break the issue into relevant parts

• explain relationships

• show impacts on business performance

• use syllabus terms

• apply to the business situation if one is given

Example question:

Analyse the relationship between operations and marketing.

Example answer:

“Operations and marketing are interdependent because marketing creates customer demand, while operations must produce goods or services that meet this demand. If marketing promotes fast delivery, operations must have effective inventory management, scheduling and logistics to achieve this promise. If operations cannot meet customer expectations, the marketing strategy may damage customer satisfaction rather than improve sales.”

This type of answer links ideas together instead of treating them separately.

Exam tip

For analyse questions, do not just describe two things. Show the relationship between them.

Discuss

What discuss means

Discuss means to identify issues and provide points for and/or against.

A discuss question may require you to consider advantages, disadvantages, impacts, limitations or different viewpoints.

How to answer discuss questions

A strong discuss answer may include:

• a clear issue or strategy

• points in favour

• points against or limitations

• a link to the question

• a balanced conclusion if needed

Example question:

Discuss the use of global sourcing as an operations strategy.

Example answer:

“Global sourcing can help a business reduce input costs by purchasing materials or services from overseas suppliers. This may improve profitability and allow the business to compete on price. However, global sourcing can also create risks, such as longer delivery times, quality issues and exposure to exchange rate changes. Therefore, the effectiveness of global sourcing depends on whether the business can manage cost savings without reducing reliability or quality.”

For related content, revise global sourcing [Supply Chain Management].

Exam tip

Discuss questions should not be one-sided unless the question clearly asks for only one side.

Evaluate

What evaluate means

Evaluate means to make a judgement based on criteria.

This is a higher-order directive term. You need to explain the issue and decide how effective, useful or important it is.

How to answer evaluate questions

A strong evaluate answer should include:

• relevant business knowledge

• explanation of impacts

• strengths and limitations

• judgement

• reasons for that judgement

Example question:

Evaluate the effectiveness of e-marketing for a business.

Example answer:

“E-marketing can be highly effective because it allows a business to reach customers through websites, social media and online advertising at a relatively low cost. It can also help the business collect customer data and build ongoing relationships. However, its effectiveness depends on whether the target market uses digital channels and whether the business can stand out from competitors online. Overall, e-marketing is most effective when it is targeted, regularly monitored and integrated with the rest of the marketing strategy.”

For more detail, revise e-marketing [E-Marketing].

Exam tip

The judgement is essential. Do not just explain the strategy. Decide how effective it is and why.

Recommend

What recommend means

Recommend means to provide reasons in favour of a suitable course of action.

In HSC Business Studies, recommend questions often appear in business reports or scenario-based questions. You need to suggest a strategy that fits the business situation.

How to answer recommend questions

A strong recommendation should be:

• specific

• suitable for the business

• linked to the issue in the question

• supported by reasons

• connected to business performance

Example question:

Recommend one human resource strategy a business could use to improve worker satisfaction.

Example answer:

“The business should introduce non-monetary rewards, such as recognition programs and flexible working arrangements, to improve worker satisfaction. These strategies can help employees feel valued and supported, which may increase motivation and reduce staff turnover. This recommendation is suitable if the business wants to improve morale without significantly increasing wage costs.”

Exam tip

A recommendation should not be vague. “Improve marketing” is too general. “Use social media advertising to target younger customers” is much stronger.

Matching directive terms to response depth

The directive term helps you decide how much to write.

Shorter responses

These usually need brief, direct answers:

• identify

• outline

Medium responses

These usually need detail and explanation:

• describe

• explain

Longer responses

These usually need links, balance, judgement or strategy:

• analyse

• discuss

• evaluate

• recommend

However, always check the marks. A 3-mark explain question needs less depth than a 6-mark explain question.

Worked example

Exam-style question

Explain one benefit of using market research when developing a marketing strategy.3 marks

Sample answer

Market research helps a business collect information about customer needs and preferences. This allows the business to design marketing strategies that better suit the target market. As a result, the business may improve customer satisfaction and increase sales.

Why this works

This answer matches the directive term because it:

• identifies market research

• explains how it helps the business

• links the benefit to customer satisfaction and sales

• uses cause and effect

It does not just describe what market research is. It explains why it matters.

Common mistakes

• Treating every directive term as if it means “describe”.

• Writing a long answer for identify questions.

• Forgetting to make a judgement in evaluate questions.

• Giving a recommendation without explaining why it is suitable.

• Describing two concepts in an analyse question without showing the relationship.

• Ignoring the number of marks available.

• Memorising definitions but not practising how to apply them.

Quick quiz

1. What does identify mean in an exam question?

2. How is outline different from describe?

3. What should an explain answer show?

4. Why does an evaluate answer need a judgement?

5. What makes a recommendation strong in HSC Business Studies?

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