AQA A Level Business Studies Paper 2: Business 2 November 2021 question paper 7132/2

Using the data in Appendix C, calculate how many shares Metro Bank plc had issued, as of 6 March 2020.

Using the data in Appendix D, calculate the percentage change in the number of people using online banking from 2009 to 2019.

Explain one possible reason for the change in the share price of Metro Bank plc shown in Appendix C.

The closure of branches is seen as a way for the ‘Big 5’ banks to better match supply with demand.

Analyse how this action might affect the profits of these banks.

To what extent does the data show that new entrants are a significant threat to the ‘Big 5’ banks?

Read the information below and then answer the questions that follow.

Bell Ltd

Bell Ltd is a UK-based food manufacturer with 27 branded products in three main markets:

sweets

snacks

drinks.

The company has been very successful over many years, increasing its market share in each market. It has responded to market changes by investing in the development of new products such as low-sugar and vegetarian ranges. It monitors the sales and costs associated with each of its brands.

100% of shares in Bell Ltd are owned by four members of the Bell family who also have management roles in the business. The owners feel long-term strategic decision making at the company is more effective than if it was a public limited company.

Bell Ltd actively manages the trade credit offered to retailers who buy its products, such as chasing any overdue payments and minimising the period of credit it offers to them. By building long-term relationships with suppliers, it has secured favourable credit terms from them.

Speckles is produced by Bell Ltd and used to be a leading brand of sweets in the UK. In terms of the Boston Matrix, Speckles is now a ‘dog’. It was recently announced that Speckles would be discontinued. A social media campaign against this decision claimed that Speckles was an iconic brand from people’s childhoods and should be saved.

Table 1 Financial data for the Speckles brand

Calculate the Gross Profit Margin for Speckles in 2020.

Analyse how Bell Ltd’s cash flow is improved by the way it manages its payables and receivables.

Analyse how the ownership structure of Bell Ltd might have contributed to the success of its strategic decision making.

Should businesses always stop the production of products classified as ‘dogs’ in the Boston Matrix?

Justify your view.

Read the information below and then answer the questions that follow.

Chillax Ltd

Chillax Ltd runs six luxury health spas in southern England. Health spas offer health and beauty treatments such as steam baths, exercise and massage. Chillax Ltd’s customers expect high levels of service.

The business focuses on quality. It emphasises the importance of getting the customer experience right. It feels this is more about how employees interact with customers than the facilities in each health spa. The quality of customer experience is monitored through frequent customer surveys using the Chillax App. The business regularly has positive reviews online.

Chillax Ltd invests heavily in training, consults regularly and provides frequent feedback to staff. It feels that its high level of employee engagement has many benefits and ultimately ensures happy customers.

Chillax Ltd is unusual in the Health and Beauty sector in that many businesses in that sector have very high rates of labour turnover averaging over 30%.

Table 2 Selected employee data for Chillax Ltd for 2020 (31 December 2020)

Using Table 2 calculate the employee retention rate for Chillax Ltd in 2020.

Analyse how Chillax Ltd benefits from its focus on quality.

Analyse why employee engagement at Chillax Ltd is high.

To what extent should all businesses be concerned if they have high rates of labour turnover?