Business profit and profitability ratios

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.

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.

Explain one way creative destruction might have affected the clothing market.

Using Extract B, calculate, to 2 decimal places, Boohoo ’s gross profit margin for 2019. You are advised to show your working.

In 2019, Boohoo sold 10,501,813 items. This included low cost clothing and more expensive clothing, coats, shoes and jewellery.

Using Extract B, calculate, to two decimal places, the average revenue per item sold in 2019. You are advised to show your working.

Analyse two advantages of division of labour to manufacturers in the clothing industry.

Using a supply and demand diagram, discuss the likely effect on the UK clothing market of a 1p tax on clothing.

Assess the likely implications of using share capital to fund expansion for a firm such as Boohoo.

Assess the extent to which enterprise is the most important factor of production for the success of Boohoo.

Assess the extent to which there is a trade-off between Corporate Social Responsibility (CSR) and profitability for a firm such as Boohoo.

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.

Using Extract A, calculate to 2 decimal places the operating profit margin for Costa for 2014. You are advised to show your working.

Using Extract D, calculate to 2 decimal places the percentage change in the coffee price from October 2014 to September 2015. You are advised to show your working.

Using a supply and demand diagram, illustrate the impact on the coffee shop market of the change in taste and fashion. (Extracts A and C)

Costa Coffee, Starbucks Coffee Company and Caffè Nero are the UK’s leading coffee shop chains. (Extract B)

Analyse one possible impact of the market structure on the pricing strategy of these firms.

Discuss whether market share is the most important business objective to a coffee shop chain, such as Timberyard.

Extract D shows a fall in the wholesale price of coffee during 2015.

Assess the impact this might have on prices charged in coffee shops.

Assess the importance of non-price competition in the UK coffee market.

Assess whether the UK coffee shop market could be considered contestable.