Business growth and integration

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 likely problem experienced by Peloton due to its rapid growth.

Using the data in Extract F, calculate the difference in Peloton’s gross profit margin between 2020 and 2021. State your answer to two decimal places. You are advised to show your working.

Assess one likely effect of consumer protection legislation on Peloton.

Assess whether cutting costs is the best way to improve Peloton’s profit.

When reviewing Peloton’s corporate strategy, its Chief Executive has identified technology as the most important PESTLE factor to prioritise. Other directors consider prioritising social factors as more important.

Evaluate these two PESTLE factors and recommend which one Peloton should prioritise when developing its future corporate strategy.

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 financial reason why Leo Scott Smith decided to establish Tended Ltd as a private limited company.

Tended Ltd has constructed the decision tree below to help it decide whether to develop a new smartwatch or launch a new marketing campaign.

Success

The net gain for the new smartwatch is £1.3 million.

Using the data in the decision tree, calculate the net gain for the marketing campaign. State your answer to two decimal places. You are advised to show your working.

Assess the likely value of a business plan to Tended Ltd.

Assess the extent to which the problems of rapid growth may have been managed by Tended Ltd.

To achieve its aim of increasing its market share of the global wearable technology market, Tended Ltd could produce a new smartwatch or launch a marketing campaign for ‘Tended Protect’.

Evaluate these two options and recommend which one is most suitable for Tended Ltd to achieve its aim of increasing its market share.

Using a supply and demand diagram, assess two reasons why live entertainment business revenues in the UK might have increased in 2017.

Mark Maitland, Media and Entertainment Leader at PwC UK, suggested cinemas might make more use of opportunities to add value, such as providing luxury seats.

Assess whether providing luxury seats is the best way for cinemas to increase added value.

Using the data in Extracts B and C, assess the extent to which saturated markets might stimulate a business such as Netflix to trade internationally.

ITV could either join forces with the UK’s other public broadcasters or operate on its own to offer a viable rival to Netflix for UK consumers.

Using the data in Extracts A to D and your own business knowledge, evaluate these two options and recommend which one ITV should use to best rival Netflix.

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.

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.

Using the data in Extract A, assess two benefits of branding for a chocolate manufacturer, such as Mars UK Ltd.

Assess the likely value of having a flexible workforce for a business, such as Nestlé.

Assess the importance of cultural and social factors that might affect the sales of dark chocolate in emerging economies, such as India.

In 2014 Ferrero International took over the Oltan Group. In 2015 it took over Thorntons.

Using the data in Extract D, evaluate these two takeovers and recommend which one is most likely to have affected the profits of Ferrero International.

Innocent Drinks has constructed the network diagram below to plan the launch of a new line of smoothies. Each number represents how many days each activity is

Using the data in the network diagram above, calculate the Earliest Start Times (EST) and Latest Finishing Times (LFT) for each activity and identify the critical path.

Using the data in Extract F, explain one implication of the level of capacity utilisation for the soft drinks manufacturer A, compared to B. You are advised to show your working.

Assess whether Innocent Drinks Ltd should have raised finance by selling a minority of its shares to a business, such as Coca-Cola.

Assess the likely effects for AG Barr of taking over Funkin, the cocktail mixer business.

Unilever’s Chief Executive believes that Unilever should aim to consider all of its stakeholders in its main business decisions. Some business analysts consider that Unilever should instead consider an aim of focusing purely on its shareholders.

Evaluate these two aims and recommend which is most suitable for a business, such as Unilever.