Y11 9 Mark Question Practice Page 1 of 39 How to plan an essay answer Essay answers must be linked to the case study and must include explanation of points, along with the impact that factors will have on a business. The structure shown here ensures you start your sentences in a way that allows you to do this. Start by telling the examiner what you intend to discuss and by defining any key terms. Secondly, give the first point of your answer. This might be an advantage or a method a business may use to solve a problem. Make sure you mention the business from the case study. Next up, discuss the impact that this advantage, disadvantage or method may have on the business from the case study. Link it back to the problems/examples from the case study and tell the examiner how the business will either benefit or be negatively impacted by this point: does it: Increase/decrease revenues Boost motivation Finally, tell the examiner about anything from the case study or your wider knowledge that may limit the impact of your point – what will stop it from happening? Repeat this for a 2 nd point. Finally, conclude your answer by answering the question and reflecting on your points to tell the examiner your opinion.
Transcript
Y11 9 Mark Question Practice
Page 1 of 39
How to plan an essay answer
Essay answers must be linked to the case study and must include explanation of points, along with the impact that factors will have on a business.
The structure shown here ensures you start your sentences in a way that allows you to do this.
Start by telling the examiner what you intend to discuss and by defining any key terms.
Secondly, give the first point of your answer. This might be an advantage or a method a business may use to solve a problem. Make sure you mention the business from the case study.
Next up, discuss the impact that this advantage, disadvantage or method may have on the business from the case study. Link it back to the problems/examples from the case study and tell the examiner how the business will either benefit or be negatively impacted by this point: does it:
Increase/decrease revenues Boost motivation
Finally, tell the examiner about anything from the case study or your wider knowledge that may limit the impact of your point – what will stop it from happening? Repeat this for a 2nd point.
Finally, conclude your answer by answering the question and reflecting on your points to tell the examiner your opinion.
Y11 9 Mark Question Practice
Page 2 of 39
Topic 1: Business Activity
Netflix
Netflix
Netflix is the world’s leading internet television network with over 83 million members in over 190 countries enjoying more than 125 million hours of TV shows and movies per day. Members can watch as much as they want, anytime, anywhere, on nearly any internet connected screen. Members can play, pause or resume watching, all without commercials or commitments.
One of the key reasons for Netflix’s recent growth has been to develop it’s own movies and TV shows, including the popular house of cards, orange is the new black and Marvel’s Daredevil.
1. Explain how Netflix expanded its operations using ‘organic growth’. [3]
Forrest and Jenny have been friends since childhood. Both fitness fanatics, they had long dreamt of starting their own business. Whilst Forrest has spent the past 6 years managing a large gym in London city centre, Jenny has been working for a local bank with the role of business advisor.
In the past year, Forrest and Jenny have decided to quit their jobs and set up their own gym in a town about 15 minutes outside of the city centre, in a wealthy area popular with those commuting into London every day.
Forrest and Jenny decided to set their business up as a Partnership, with Jenny insisting that they draw up a deed of partnership to split activities, with Forrest performing much of the customer service side of the business, whilst Jenny completed much of the work in Finance and Accounting.
Initial demand for their gym has been excellent, with 24% more members signing up in the first six months than Jenny had predicted. Both Forrest and Jenny are very ambitious and would like to take on more investment as the business grows to create a chain of gyms that stretches across the whole UK.
3. Analyse one reason why Jenny may have insisted on drawing up a deed of partnership when starting the business.
VTA Detailing Ltd. is a car detailing business operating in the centre of Hawkins, Derbyshire. The business offers a range of services from simply cleaning and valeting a car right up to a wide-ranging and detailed car polishing service.
It’s owner, Colin Jones, has been running the business for just over 4 years after growing tired of working for other people. Colin, who had several years’ experience as a mechanic before establishing his detailing business, takes great care in ensuring that only the highest quality materials, processes and products are used to deliver his services. Colin has always believed that this level of service has helped set him apart from his rivals elsewhere in Hawkins.
When deciding on his prices, Colin looked carefully at his rivals and set his prices very similar, whilst ensuring that his materials and products were still of a very high quality.
Over the past year, Colin has found that business has slowed. With consumer incomes falling and lower spending on luxury items due to a weak economy and Brexit uncertainty, many business’ providing luxury services like Colin’s are finding they are making fewer sales. Colin is worried that if he does not increase his sales revenues, he may struggle to meet the costs of running his business and be forced to return to working for someone else.
5. Discuss, with reference to the case study, whether competitor pricing is the most effective pricing method for Colin and VTA Detailing. [9]
In order to reduce costs, Colin is considering moving to a new and cheaper location outside of the centre of Hawkins.
Below is some information about Hawkins, along with a simple map.
● Colin currently pays £1500 rent per month. ● Hawkins Town Centre has a population of 75,000 residents ● Manchester and Macclesfield are both popular areas for residents of Hawkins to travel to.
Hawkins Town Centre
Y11 9 Mark Question Practice
Page 8 of 39
6. Evaluate whether Colin should relocate his business to Location A or B. [9]
Odeon is a successful chain of cinemas operating within the United Kingdom. Odeon screens all the latest blockbuster movies in it’s network of over 100 cinemas across the UK.
Along with the standard screenings of the most popular films, Oden also offers Kids Club screenings, for parents and young children and a ‘Silver Screening’ service for the elderly. Each has altered lighting and added breaks to increase the levels of comfort for both the young children and the elderly.
As part of its market research, the management of Odeon has seen that Cineworld, a large rival, are offering a membership for £20 per month, where members can watch as many films a month as they like.
Eager not to fall behind the competition, Odeon are now considering releasing their own membership programme, which would allow users unlimited monthly screenings along with one free drink for every film they attended.
7. Explain, with reference to the data in the case study, how Odeon has used market segmentation to increase it’s sales. [3]
Speedzy Ltd. is a chain of fashion and sportswear retail shops. Having started with only one shop in Newcastle-Upon-Tyne in 1999, there are now 24 shops across 18 different towns and cities in the North of England. Stocking a range of sportswear from the latest fashion trends to more bespoke running and cycling wear, Speedzy has a wide customer base.
However, the growth of online retail has begun to reduce the amount of revenue Speedzy is making and 4 of its stores did not break even in 2018.
To add to their troubles, Speedzy has been conducting some market research into customers’ views of the stores and has found that opinions on customer’s service have been falling). The researchers found that during Christmas time, the temporary workers Speedzy employed are often unable to answer all of the customer’s questions about running and cycling sportswear.
In a regular weekly meeting with the manager, Phoebe , Rachel Greene, a customer adviser at one of, made it clear that she’s unhappy at the store. She feels unvalued by the company and is often bored within her job. She often finds herself having to do the work of the poorly temporary workers and has heard that rival companies are also offering better pay for the same work she is doing, so is considering leaving.
9. Analyse one financial method of motivation Speedzy Ltd. could use to increase motivation. [3]
Speedzy Ltd. is a chain of fashion and sportswear retail shops. Having started with only one shop in Newcastle-Upon-Tyne in 1999, there are now 24 shops across 18 different towns and cities in the North of England. Stocking a range of sportswear from the latest fashion trends to more bespoke running and cycling wear, Speedzy has a wide customer base.
However, the growth of online retail has begun to reduce the amount of revenue Speedzy is making and 4 of its stores did not break even in 2018.
To add to their troubles, Speedzy has been conducting some market research into customers’ views of the stores and has found that opinions on customer’s service have been falling). The researchers found that during Christmas time, the temporary workers Speedzy employed are often unable to answer all of the customer’s questions about running and cycling sportswear.
In a regular weekly meeting with the manager, Phoebe , Rachel Greene, a customer adviser at one of, made it clear that she’s unhappy at the store. She feels unvalued by the company and is often bored within her job. She often finds herself having to do the work of the poorly temporary workers and has heard that rival companies are also offering better pay for the same work she is doing, so is considering leaving.
12. Evaluate whether or not Speedzy should continue to employ temporary workers from at Christmas time each year. [9]
Monica Bing is a talented artist and sculptor, currently working for a large jewellery designer as a lead product manager. Monica has a small side business creating bespoke jewellery for customers. With most of Monica’s business coming from word of mouth advertising, Monica understands the importance of creating only the highest quality jewellery.
Monica uses job production to craft her pieces by hand and delivers them to her clients when they are finished, demanding anywhere between £100 to £1000 for a piece of Jewellery. However, her husband Chandler, has argued that Monica should begin to create her jewellery in batches and sell them to local shops. This is something Monica is wary of given the success she’s currently having making her items in the way she is.
British Airways is a multinational company which flies customers to many destinations around the world. Since its launch in 1974 British Airways pursued objectives of growth and to develop an international brand in an incredibly competitive market.
In 2016, British Airways carried 123,000 people a day and made £11bn in revenue, its highest in five years. The company can calculate the number of customers it needs for each of its flights to break-even.
Part of Virgin Atlantic’s aim is ‘to grow a profitable airline, where people love to fly and people love to work.’ The business has always been keen to provide a high quality experience within its cabins, excellent customer service from its employees, competitive prices and a fantastic choice of food and drink on its planes. Additionally, the business takes its ethical and environmental responsibilities very seriously too.
16. Explain two reasons why quality is important to British Airways.
Forrest and Jenny have been friends since childhood. Both fitness fanatics, they had long dreamt of starting their own business. Whilst Forrest has spent the past 6 years managing a large gym in London city centre, Jenny has been working for a local bank with the role of business advisor.
In the past year, Forrest and Jenny have decided to quit their jobs and set up their own gym in a town about 15 minutes outside of the city centre, in a wealthy area popular with those commuting into London every day.
Forrest and Jenny decided to set their business up as a Partnership, with Jenny insisting that they draw up a deed of partnership to split activities, with Forrest performing much of the customer service side of the business, whilst Jenny completed much of the work in Finance and Accounting, including completing a break-even analysis.
Initial demand for their gym has been excellent, with 24% more members signing up in the first six months than Jenny had predicted. Both Forrest and Jenny are very ambitious and would like to take on more investment as the business grows to create a chain of gyms that stretches across the whole UK.
As part of their expansion plan, Forrest and Jenny would like to increase their revenues by increasing the number of members they can accommodate. To achieve this, Forrest estimates they will need to buy new equipment that will cost a total of £20,000. With most of their savings already invested, they are unsure whether to use a Bank Loan or Trade Credit to purchase the equipment.
18. Evaluate whether Forrest and Jenny should use a bank loan or trade credit to buy the equipment for their gym. 9
VTA Detailing Ltd. is a car detailing business operating in the centre of Hawkins, Derbyshire. The business offers a range of services from simply cleaning and valeting a car right up to a wide-ranging and detailed car polishing service.
It’s owner, Colin Jones, has been running the business for just over 4 years after growing tired of working for other people. Colin, who had several years’ experience as a mechanic before establishing his detailing business, takes great care in ensuring that only the highest quality materials, processes and products are used to deliver his services. Colin has always believed that this level of service has helped set him apart from his rivals elsewhere in Hawkins.
When deciding on his prices, Colin looked carefully at his rivals and set his prices very similar, whilst ensuring that his materials and products were still of a very high quality.
Over the past year, Colin has found that business has slowed. With consumer incomes falling and lower spending on luxury items due to a weak economy and Brexit uncertainty, many business’ providing luxury services like Colin’s are finding they are making fewer sales. Colin is worried that if he does not increase his sales revenues, he may struggle to meet the costs of running his business and be forced to return to working for someone else.
Colin often finds that he’ll be much busier in the summer months, when people spend time driving in the sunshine, but much quieter when his customers spend less time in their cars. As a result, Colin has always find he can be short of cash over the Christmas period.
20. Discuss the usefulness to XXXX of completing a cash flow forecast [9].
New Look ltd. is a clothing retailer selling clothing, footwear and accessories through its high street shops and online across the UK.
New Look ltd. understands the importance of creating good relationships with its customers and constantly tries to improve its levels of customer service. Customer service is important for New Look ltd.. For New Look responsible business behaviour includes addressing key business-related social, ethical and environmental impacts in a way that aims to bring value to all its stakeholders, including its shareholders. NEXT plc. sources products from many suppliers across the world. The company takes its environmental and ethical responsibilities very seriously.
21. Evaluate how a fall in consumer incomes might impact on the marketing activities of New Look Ltd. [9]
Morrisons Plc is one of the largest grocery stores in the UK. It sells a range of products through its shops and uses e-commerce across the UK. The business procures its supplies from a range of UK and foreign businesses.
On its website, Morrison’s Plc states it aims to “offer customers a one-stop-shop and give them more of what they want on a shopping trip. We continue to refresh what our stores and cafés offer and install practical services that shoppers appreciate, like key cutting, mobile phone repair stations and pick-up points that are compatible with leading online retailers.”
In recent years, sales of Morrison’s products and services have been affected by increasing competition, consumer law and the growth of e-commerce. In addition, sales are impacted by how the UK economy is performing and the level of UK employment.
23. Evaluate the impact that a fall in unemployment could have on any two stakeholders of Morrisons plc. 9
