Market positioning & competitive advantage

Explain one reason why an increase in market share might be an important business objective for TUI.

Using a supply and demand diagram, illustrate the impact on the market for global travel after travel restrictions have been removed for consumers.

Using Extract B calculate, to two decimal places, the operating profit margin for TUI in Q3 2023. You are advised to show your working.

Many airlines are now investing in aircraft that are more fuel efficient and use low‑carbon jet fuel in a bid to reach net‑zero carbon emissions by 2050.

Using a supply and demand diagram, analyse the likely impact on the market for air travel of improvements in aircraft technology.

Discuss the likely impact of the wildfires in Rhodes on TUI ’s break-even level of output.

Assess the possible benefits of market mapping for TUI.

Using Extract D, assess the possible impact of changes in UK interest rates on holiday firms such as TUI.

Assess the likely impact from the growth of the travel and tourism sector on aggregate demand (AD) in the UK.

Explain one method the Competition and Markets Authority (CMA) could use to research the music streaming industry.

Using a supply and demand diagram, illustrate the impact on the market for traditional music formats following the increase in music streaming.

Using the data from Extract B calculate, to two decimal places, the percentage of revenue spent on research and development (R&D) by Spotify in 2021. You are advised to show your working.

Analyse two possible reasons why Spotify might have increased its spending on R&D.

Discuss the benefits for Spotify of using price discrimination.

Using a supply and demand diagram, assess the likely impact on the market for live music if the UK Government reduced VAT on tickets for live music events.

Assess the implications of a fall in unemployment for firms within the music industry.

Assess the benefits for consumers of the music streaming industry being an oligopoly.

Using Extract A, calculate to two decimal places the 5‑firm concentration ratio for the UK car manufacturing industry. You are advised to show your working.

Explain one reason why there is less likely to be price competition in the car industry.

Using Extract B, calculate to two decimal places the profit for the year margin for Stellantis in 2020. You are advised to show your working.

Using a suitable diagram, analyse the likely impact on the market for new petrol and diesel cars if the government increases the subsidy on new electric cars.

Of all the vehicles made in the UK, 81% are exported, with over half going to the EU.

Discuss the likely impact on UK car exports following a depreciation of the pound against the euro.

Assess the likely benefits for Stellantis of selling a range of different car brands.

Assess the benefits to the UK economy of subsidising the Vauxhall car plant in Ellesmere Port.

Assess the likely impact on the UK economy of the Government banning the sale of new petrol and diesel cars from 2030.

Using Extract A, calculate, to 2 decimal places, Nike ’s profit for the year margin for 2016. You are advised to show your working.

New Balance operates in a competitive market.

Explain one reason why a business such as New Balance differentiates its products.

Using Extract A, calculate, to 2 decimal places, Anta ’s total costs in 2016. You are advised to show your working.

Pictures of the singer Rihanna wearing New Balance ’s white leather training shoes appeared in newspapers. This style of shoe temporarily sold out. However people were still trying to buy them in stores and online, leading to excess demand.

Using a supply and demand diagram to show excess demand, analyse how this may affect the future price of these shoes.

Discuss the extent to which sales maximisation is the main objective for a business such as New Balance.

Interest rates in the UK were stable between 2007 and 2017.

Assess the possible impact of an increase in interest rates on New Balance ’s UK operations.

Assess the importance of economies of scale to the success of firms such as Nike.

New Balance has chosen to manufacture its premium shoes in the US and UK rather than in cheaper locations.

Assess the extent to which this may cause stakeholder conflict.

Candy Kittens’ sales revenue in 2016 was £1.5m. Jamie Laing is planning for an increase in sales revenue of 12% by 2019.

Calculate the planned sales revenue for Candy Kittens in 2019. You are advised to show your working.

According to a new report, confectionery sales in the UK are predicted to grow, despite fears about the high levels of sugar in sweets. (Extract A)

Explain one external cost caused by the consumption of sweets.

Using Extract B, explain one supply factor that may have caused fluctuations in the price of sugar.

Research suggests that the biggest growth barrier for UK start-up firms is the UK tax system. (Extract C)

Using a supply and demand diagram, analyse the likely impact on the UK confectionery market of an increase in indirect taxes.

Discuss the benefit that adding value brings to Candy Kittens.

Jamie Laing used loans to start his firm. (Extract A)

Assess the benefits of this source of finance for a new firm such as Candy Kittens.

Assess the extent to which barriers to entry may restrict the growth of Candy Kittens.

Using Extract C, assess the extent to which cash flow forecasting is important to the survival of a new start-up business such as Candy Kittens.