Edexcel A Level Business Studies Paper 3: Investigating business in a competitive environment June 2019 question paper 9BS0/03

Using the data in Extract A, assess two reasons why income elasticity of demand for holidays may be income elastic.

Assess the factors that might affect the success of a global business such as Disney when entering a new market such as China.

Assess the extent to which movements in exchange rates might influence the holiday choices of UK consumers.

Live the Adventure Ltd is deciding whether to expand its existing operations or to offer winter activity holidays in Europe in order to grow.

Using the data in Extract D, calculate the values of A, B, C and D and, using other non-financial information, evaluate these two options.

Recommend which one of these two options Live the Adventure Ltd should choose in order to grow.

Assess two difficulties for Michael O’Leary when developing from an entrepreneur to a leader.

Assess the likely effects of consumer protection legislation on a business, such as Ryanair.

Assess whether Monarch Airlines’ business failure was due to internal causes.

For long-haul flights to the Americas, Ryanair and Air Europa could use competitive pricing or a penetration pricing strategy to maximise profit.

Evaluate these two pricing strategies and recommend which one should be used by Ryanair and Air Europa to maximise profit.