The macroeconomic environment of business

Explain one benefit to Tom Pellereau of using a business angel as a source of finance.

Using the data in Extract B, calculate the acid test ratio for Stylideas Ltd in 2024 to 2 decimal places. You are advised to show your working.

Assess whether Stylideas Ltd’s distinctive capability of innovation is the main reason for its success.

Assess the likely effects on Stylideas Ltd of changes in the UK business cycle.

As Stylideas Ltd grows, Tom Pellereau is considering whether to change its current role culture to a power culture to maintain the business’ success.

Evaluate these two options and recommend which one Tom Pellereau should choose to maintain the business’ success.

Explain one reason why quality is a source of competitive advantage for Nivea.

The average price for a Nivea product is £10.

Using the data in Extract F, calculate Nivea’s predicted sales volume in 2025. You are advised to show your working.

Tesco imports Nivea products that are manufactured in Germany.

Using the data in Extract G, and any other relevant information, assess the effect on Tesco of the change in the £ exchange rate from August to December 2024.

Assess the importance of capital-intensive production for Beiersdorf’s new factory.

When making business decisions, Beiersdorf’s Chief Executive believes that Beiersdorf should focus only on its shareholders. Other Directors argue that Beiersdorf should consider all its stakeholders.

Evaluate these two options and recommend which one Beiersdorf should choose when making business decisions.

Explain one reason why Brompton might use job production.

Using the data in Extract B, calculate the change in labour productivity between 2019 and 2020. State your answer to two decimal places. You are advised to show your working.

Assess whether the distinctive capability of innovation is the main reason that Brompton has a competitive advantage.

Using the data in Extract C, assess the effect on Brompton’s sales of the change in the US dollar to the £, between April 2020 and April 2021.

Brompton has set itself the objective of expansion. It is considering two options to expand, either by organic or inorganic growth.

Evaluate these two options and recommend which one is the best for Brompton to achieve its objective of expansion.

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.

Using Extract A, assess two likely reasons why US fast food companies such as McDonald’s choose to locate restaurants in the UK.

Assess the possible limitations of secondary market research to restaurant chain companies, such as Jamie Oliver’s.

Using the data in Extracts B and C, assess the likely effects of decreases in UK corporation tax rates in March 2020 on UK restaurants chains, such as Jamie Oliver’s.

Using the data in Extract D and your own knowledge of business, evaluate and recommend whether Mindful Chef should seek a joint venture with Auchan, France or seek a global merger with companies such as Blue Apron, US.

Explain one reason Mumtaz has always used internal finance to establish and expand its business.

Using the data in Extract B, calculate the margin of safety. You are advised to show your working.

Assess whether expanding by organic growth was the right decision for Mumtaz.

Using the data in Extract C, assess the likely impact of the forecast changes in the UK economy on a business such as Mumtaz.

Mumtaz’s aim is to become the UK’s market leader in Asian ready meals. To achieve this, it could produce own label ready meals for supermarkets or focus on selling more Mumtaz premium brand name products.

Evaluate these two options and recommend which is most suitable for Mumtaz to achieve its aim.