This chapter explains the ‘Business in Context’ model that is used throughout the book. All four contexts are identified; environmental, organizational, strategic and functional, referred to as ‘activities level’ context. In addition, two theoretical framework outlines are offered; systems and contingency. Both frameworks have been used to develop the ‘Business in Context’ model. The model can be used to analyze individual firms and entire industrial or business sectors. A useful exercise for students is to nominate a particular sector, firm or organization known to them (it could be their college, university or their department) and get them to develop an analysis using the ‘Business in Context’ model. Discussion questions and answers Below you will find suggested answers to the discussion questions set at the end of every chapter. It must be stressed that these answers offer guidance only and are not intended as ‘model’ answers. It is important that students think for themselves and many of the questions require them to apply the knowledge they have gained from the book to a specific context. We recognize thatsuch contexts may vary for different groups of students. It is more important that students think of the issues in the industry, business or even national context that is most relevant to them. In some cases, a specific answer cannot be given but, where this happens, suggestions are offered for tackling the question.