Business growth and integration

In the Source Booklet, look at Figure 3 and read Extract A, then answer Questions 4, 5 and 6.

Outline one drawback to Pladis of focusing on new market segments.

Analyse the benefit to Pladis from having factories in different countries.

State one way Pladis could improve the quality of its products.

Outline one method of external growth that Pladis may use.

In order to fund the four new production lines, Pladis considered the following two options:

Option 1: become a public limited company (plc)

Option 2: loan capital.

Justify which one of these two options Pladis should choose.

In the Source Booklet, look at Figure 2 and read Extract A, then answer Questions 4, 5 and 6.

Outline one method of internal growth that Popeyes could use.

Analyse the importance to Popeyes of differentiating its products.

State one possible influence on the pricing strategy used by Ocado.

Outline one drawback to Ocado of using just in time (JIT) stock control.

In order to increase its share of the online grocery market, Ocado has considered two options:

Option 1: offering a faster delivery service

Option 2: expanding its product range.

Justify which one of these two options Ocado should choose.

In the Source Booklet, look at Figure 4 and read Extract B, then answer Question 7.

Give one stage of the sales process.

Figure 5 shows the market share for each company in the virtual reality headset market in 2018 and 2019.

(Source: adapted from https://www.statista.com/statistics/755645/ global-vr-device-market-share-by-vendor/)

Using Figure 5, identify the company that left the virtual reality headset market in 2019.

Outline one advantage to Facebook of becoming a public limited company (plc).

In order to increase its profit, Facebook is considering two options:

Option 1: grow internally

Option 2: grow externally.

Justify which one of these two options Facebook should choose to increase its profit.

Evaluate the impact on Facebook of its decision to allow its employees to use remote working from home. You should use the information provided as well as your knowledge of business.

Define the term multinational.

Figure 5 shows the percentage of customers the website www.jdsports.co.uk has had from various social media websites in 2020.

(Source: adapted from https://www.similarweb.com/website/jdsports.co.uk#social)

Using the information in Figure 5, identify the social media site that generated the smallest percentage of customers for www.jdsports.co.uk.

Outline one benefit to JD Sports of having a website.

In order to improve its competitive advantage JD Sports is considering two options:

Option 1: targeted online advertising

Option 2: sponsorship.

Justify which one of these two options JD Sports should choose.

Evaluate whether the takeover of Footasylum will allow JD Sports to increase its profit. You should use the information provided as well as your knowledge of business.

Which two of the following are external sources of finance?

Select two answers.

Which two of the following are methods of external growth for a business?

Select two answers.

Table 1 contains financial information about the performance of a business.

Using the information in Table 1, calculate the gross profit made by the business. You are advised to show your workings.

Explain one benefit to a business of withdrawing a product when it enters the decline phase of its product life cycle.

Explain one benefit to a business from improving the aesthetic element of a product’s design mix.

State one drawback to Mind Candy of organic growth.

Outline one method Mind Candy could use to promote its new app.

In order to raise the £1.2 million of extra finance needed, Mind Candy considered two options:

Option 1: retained profit

Option 2: share capital.

Justify which one of these two options Mind Candy should choose.