Edexcel A Level Business Studies Paper 2: Business activities, decisions and strategy June 2019 question paper 9BS0/02

Explain one reason why businesses that sell VisionSpring’s glasses may prefer to stay small.

For people in developing countries, purchasing a pair of VisionSpring glasses may be considered as an investment.

Using the data in Extract B, calculate the average rate of return from purchasing a pair of glasses. You are advised to show your working.

Assess VisionSpring’s decision to finance its growth using retained profits.

Assess whether the decision to be a socially responsible business is likely to increase Warby Parker’s profits.

Warby Parker’s main corporate objective is to grow the business. The management is considering two options, either to develop a new range of contact lenses for the high income market, or to start selling glasses in the low income market.

Evaluate these two options and recommend which one is most likely to achieve Warby Parker’s main corporate objective.

Using the data in Extract E, explain one way Hardy Punglia could use his cash flow forecast.

Using the data in Extract F, calculate the total profit variance for Zara in 2016. You are advised to show your working.

Assess the extent to which Zara’s use of just in time (JIT) may have contributed to its success.

Assess the usefulness of scenario planning to a business, such as ASOS.

Zara is planning to open another 200 stores and is considering the best way to maintain the quality of its clothes. Zara is considering using either quality control or total quality management (TQM).

Evaluate these two options and recommend which one would be the best way for Zara to maintain the quality of its clothes.