Edexcel A Level Business Studies Paper 2: Business activities, decisions and strategy November 2021 question paper 9BS0/02

Explain one likely reason why Pura Cosmetics chooses to use batch production.

Using Extract B, calculate the contribution per unit of one lip balm. You are advised to show your working.

Assess the value of venture capital as an external method of finance for Pura Cosmetics.

Assess the extent to which Unilever may benefit from its takeover of Dermalogica.

Pura Cosmetics has set the objective of managing its cash-flow more effectively. To achieve this, it is considering two options; either to increase its overdraft facility or to reduce the credit period given to its retail customers.

Evaluate these two options and recommend which one Pura Cosmetics should choose in order to achieve the objective of managing its cash-flow more effectively.

Explain one reason why the head of each division of Buy it Direct is responsible for managing its own budget.

The Chief Executive has calculated the new bathroom project will not meet its payback target of three years.

Using the data in Extract F, calculate the difference in the payback period compared to the Chief Executive’s target. You are advised to show your working.

Using the data in Extract G and your own business knowledge, assess the likely effects of the changes in interest rates between 2019 and 2021 on Buy it Direct.

Buy it Direct’s new Operations Director is in charge of installing a new IT system for the warehouses. This project must be completed within 45 weeks. The Operations Director has produced the following network diagram:

Activity A: Identify problem
Activity B: Consult with software supplier Activity C: Recruit staff
Activity D: Staff training Activity E: Discuss IT solution
Activity F: Order equipment from suppliers Activity G: Implementation and testing

Assess the likely value of Critical Path Analysis (CPA) for the effective management of the installation of the new IT system.

Buy it Direct has set the objective of increasing its sales revenue. It is considering two options, either to adopt a strategy of market penetration in the UK Electrical Household Appliance market or diversification.

Evaluate these two options and recommend which one is most likely to achieve Buy it Direct’s objective of increasing its sales revenue.