AQA A Level Business Studies Paper 1: Business 1 June 2025 question paper 7132/1

‘The process of transforming raw information into useful information that can support various activities of a business.’

Which term is described above?

In Porter’s generic strategies, which one of the following would help a business to achieve a differentiation strategy?

Options A to D show four possible changes to the UK economy.

Based solely on these changes, which option will lead to the largest increase in UK imports?

Product ‘X’ was the market leader in a low growth market.

New promotions by competitors lead to rapid growth in the market.

However, Product ‘X’ still retains its market leadership.

In terms of the Boston Matrix, Product ‘X’ has changed from:

Statement 1: ‘According to Ansoff’s matrix, diversification is the most risky strategy.’

Statement 2: ‘According to Ansoff’s matrix, market penetration is the least risky strategy.’

Read statements 1 and 2 and select the correct option from the following:

Figure 1 shows a situation in which there is a change in the break-even point of a product from point M to point N.

The change in break-even point from M to N has been caused by:

The data below applies to Bromley Apples Ltd for 2023–2024.

What is Bromley Apples Ltd’s gross profit for 2023–2024?

Statement 1: ‘Retrenchment is less likely to be faced with organised resistance if the business has a low level of trade union membership.’

Statement 2: ‘Retrenchment is likely to be easier to manage if a business has a high rate of labour turnover.’

Read statements 1 and 2 and select the correct option from the following:

As a small business grows, the founder starts to delegate responsibilities. Every employee will have clear procedures to follow in their jobs.

Which statement below describes the change in culture of this business?

A business sets two operational objectives for its four factories:

to achieve a minimum capacity utilisation of 80%

to achieve a minimum labour productivity of 2 units per employee.

The table below provides data for each factory.

The success of a firm’s employee engagement may be shown through all of the following outcomes except:

Which one of the following situations is most likely to cause strategic drift?

QAQ plc measures performance in its four functional areas.

The table below summarises the ‘target’ and ‘actual’ levels of performance in 2024.

Statement 1: ‘The performance in operations is better than in marketing.’

Statement 2: ‘The performance in finance is better than in human resources.’

Read statements 1 and 2 and select the correct option from the following:

Statement 1: ‘Low supplier power may encourage a retailer to use a cost leadership strategy.’

Statement 2: ‘A market leader may use a low-price strategy in order to create a barrier to entry.’

Read statements 1 and 2 and select the correct option from the following:

Which option below is correct in ranking these actions from long-term to short-term?

Turn over for Section B

Questions 16 and 17 are based on the data below.

Extract from accounts of Righton plc, 2024

Calculate the current ratio for Righton plc for 2024.

Show your working.

Righton plc achieved a Return on Capital Employed (ROCE%) of 12% in 2024.

Calculate its operating profit.

Show your working.

The table below shows changes to the structure of Newtown plc.

Analyse how this restructuring of Newtown plc in 2024 might affect its speed of response to customer enquiries.

Analyse how a government changing its fiscal policy might affect a business which produces healthcare products.

Analyse how adopting an innovation strategy might affect the human resources function of a business.

A UK business’s domestic market has stopped growing. The business has decided to become a multinational corporation.

To what extent is this decision likely to increase profits?

OR

The marketing department of a business wishes to increase its market share in a growing market.

To what extent is market research the most important activity of the marketing department in order to achieve this objective?

‘The need to continue investment is the most significant difficulty facing a business which is trying to maintain a competitive advantage.’

To what extent do you agree?

Justify your view.

OR

‘A system of quality assurance will always lead to greater profits than a system of quality control.’

Do you agree?

Justify your view.