Edexcel GCSE Business - Presdales School · 2020. 11. 17. · Edexcel GCSE Business Practice Exam Paper 2b Page 10 ANSWER ALL QUESTIONS IN THE SPACES PROVIDED Section B Look at Figure

Edexcel GCSEBusiness

Question PaperPaper 2b

Building a business

PRACTICE EXAM PAPER

Page 2 Edexcel GCSE Business Practice Exam Paper 2b

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Write your name here

Centre Number Candidate Number

Surname

Practice paperTime: 1 hour 30 Minutes

You do not need any other materials Total

Paper reference

Paper 2b

Other names

Edexcel GCSE BusinessPaper 2b: Building a business

Instructions • Use black ink or black ball-point pen • Fill in the boxes at the top of this page with your name, centre number and candidate number • There are three sections in this paper • Answer all questions in each section • Answer the questions in the spaces provided – there may be more space than you need • Calculators may be used • You are advised to show all your working out with your answer clearly identified at the end of your solution

Information • The total mark for this paper is 90 • The marks for each question are shown in brackets – use this as a guide as to how much time to spend on each question

Advice • Read each question carefully before you start to answer it • Try to answer every question • Check your answers if you have time at the end

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Edexcel GCSE Business Practice Exam Paper 2b Page 3

ANSWER ALL QUESTIONS. WRITE YOUR ANSWERS IN THE SPACES PROVIDED

Edexcel GCSE Business Paper 2bSection A

1 (a) Which one of the following is a feature of a flat organisational structure?

Select one answer:

A Many levels of hierarchy B Long chain of command C Wide span of control D Close supervision

(1)

(b) Which one of the following is a barrier to international trade?

Select one answer:

A Imports B Exports C Tariffs D Globalisation

(1)

Some questions must be answered with a cross in a box . If you change your mind about an answer, put

a line through the box and then mark your new answer with a cross .7

7

(c) Explain one advantage to a business of using external recruitment.

(3)

7


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(d) Explain one disadvantage to a business of viral advertising via social media.

(3)

(Total for Question 1 = 8 marks)

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2 (a) Which two of the following are not elements of the sales process?

Select two answers:

A Supplier choice B Customer Engagement C Post-sales service D Product knowledge E Sponsorship

(2)

(b) Which two of the following are non-financial methods of motivation?

Select two answers:

A Promotion B Commission C Remuneration D Autonomy E Job rotation

(2)

Table 1 contains information about a business investment.

Table 1

(c) Using the information in Table 1, calculate the average rate of return for this investment. You are advised to show your workings.

(2)

Total profit from the investment £84,000

Number of years 10

Cost of investment £35,000

%


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(d) Explain one benefit to a business of using job enrichment.

(3)

(e) Explain one advantage to a business of using flow production.

(3)


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3 (a) Which one of the following is not an element of the design mix?

Select one answer:

A Price B Function C Aesthetics D Cost

(1)

Figure 1 shows the net profit for a multinational business during the first three months of this year.

(b) Using the information in Figure 1, calculate the average net monthly profit for this business for the first three months of this year. You are advised to show your workings.

(2)

£

Figure 1


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(c) Explain one limitation to a business of making decisions using financial information.

(3)

(d) Explain one disadvantage to a business of having a centralised organisational structure.

(3)

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(e) Discuss the likely benefit to a business of using share capital to fund a major expansion

(6)


TOTAL FOR SECTION A = 35 marks

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ANSWER ALL QUESTIONS IN THE SPACES PROVIDED

Section B

Look at Figure 2, read the following extract carefully, then answer Questions 4, 5 and 6.

Portakabin is a British company which makes stand-alone buildings that can be moved to different locations when, and if, required (Figure 2). The buildings are often used as temporary classrooms, extra rooms for hospitals, additional office space and emergency accommodation in areas that have suffered natural disasters. Portakabin operates in a global market, selling products all over the world and despite facing heavy competition from overseas imports into the UK market, it currently is the market leader in this highly competitive market. Currently, the business employs 1,750 staff.

At present, Portakabin use batch production to produce different sized buildings to meet customer requirements, as well as just in time stock control, due to the bulky nature and high value of the raw materials and finished goods it needs to produce each unit. Following a recent upgrade in its digital technology, communication with its suppliers has become much more efficient and successful, shown as Portakabin is able to deliver 99% of its projects on time compared to its rivals that are only, on average, able to deliver 63% on time.

The company currently recycles 65% of its manufacturing waste and re-uses suitable left over material as underfloor insulation. The business prides itself on high quality and its quality standards are maintained through the use of quality assurance in its production process.

Last year, the business achieved a sales revenue of over £200 million. However, despite being profitable, the board of directors carefully reviews the performance of the business on an ongoing basis, looking for ways to improve its profitability. At the moment, the board are thinking of changing the company’s production process to flow production or moving production completely overseas, to take advantage of the lower production costs that can be achieved in some foreign countries.

Figure 2 (source adapted from http://www.portakabin.co.uk/casestudies)


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4 (a) Outline one impact on Portakabin of globalisation.

(2)

(b) Analyse the impact on Portakabin of operating a system of just in time stock control.

(6)


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5 Figure 3 shows the selling price of Portakabin’s two most popular buildings, The Chatsworth and The Attingham, over the last three years.

(a) Identify the selling price of The Attingham two years ago.

(1)

(b) Identify the year in which the selling price of The Chatsworth was at its highest.

(1)

Figure 3


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Portakabin uses quality assurance to manage the quality of its buildings.

(d) Analyse the impact on Portakabin of using quality assurance in its production process.

(6)

(c) Calculate the sales revenue of the Attingham last year if Portakabin sold 250 units of this product. You are advised to show your workings.

(2)


£

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6 (a) State one factor that Portakabin will consider when choosing its suppliers.

(1)

(b) Outline one possible benefit to Portakabin of its environmental considerations.

(2)


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Portakabin is considering two options to increase its profitability:

Option 1: Changing from batch to flow production

Option 2: Moving its production overseas

(c) Justify which one of these two options Portakabin should choose.

(9)


TOTAL FOR SECTION B = 30 marks

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ANSWER ALL QUESTIONS IN THIS SECTION

Section C

Tesco offer an online delivery service which, due to the growth of e-commerce, has enabled the company to access wider markets. The company recently introduced a 3-hour service from online ordering to collection in store. Online sales are growing, however the amount of profit made on each product has been reduced, due to the cost of employing extra people to pick food off the shelves and deliver it to customers.

Tesco aims to have workers who are motivated, flexible and well trained to ensure the business provides excellent customer service. The wage rates paid are the same, or higher, than those of similar supermarkets. This is often quoted as a reason for attracting a large number of potential employees to job vacancies in store. In addition, Tesco offer employee benefits, such as staff discounts, flexible working and inexpensive gym membership. However, employee retention is lower than the industry average and, in some stores, retaining employees has proved difficult and led to several vacant posts. As a result, Tesco is considering the introduction of a bonus scheme, job rotation and job enrichment.

Look at Figures 4 and 5 and read the following extract carefully, then answer Question 7.

Tesco is one of the world’s largest retailers. In the UK alone, it has over 3,500 stores and 310,000 employees. As a British multinational company, it operates stores in 11 different countries. The UK & Republic of Ireland part of the business recently recorded sales of £37,692 million with profits of £803 million. The market is very competitive with supermarkets fighting to maintain and increase their sales and market share. In recent years, discount retailers such as Aldi and Lidl have captured an increasing amount of grocery sales and share of the market, which is expected to continue, (Figure 5), although they currently do not trade at all or fully on line. Many Tesco stores are therefore now less busy, as shoppers switch to discounters, such as Aldi and Lidl, which provide a cheaper alternative.

How the UK’s grocers compare – May this year

Where UK shoppers buy food and groceries 2016 & 2021

Figure 5http://www.igd.com/Research/Retail/Five-year-forecast-the-

grocery-market-by-2021/

Figure 4http://www.telegraph.co.uk/finance/newsbysector/

retailandconsumer/11822351/Asda-snatches-back-title-of-UKs-second-largest-supermarket.html


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7 (a) Define the term ‘multinational.’

(1)

(b) Using the diagram in Figure 5, identify the amount UK shoppers will spend buying food and groceries online in 2021.

(1)

(c) Outline one reason why Tesco trains and develops it employees.

(2)

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In order to increase its market share Tesco is considering two options:

Option 1: Lowering its prices

Option 2: Extending its online service

(d) Justify which one of these options Tesco should choose.

(9)


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(e) Evaluate whether Tesco will benefit from the introduction of new methods of motivation. You should use the information provided as well as your knowledge of business.

(12)

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TOTAL FOR SECTION C = 25 marks

TOTAL FOR PAPER = 90 marks

Documents

Edexcel GCSE Business - Presdales School · 2020. 11. 17. · Edexcel GCSE Business Practice Exam Paper 2b Page 10 ANSWER ALL QUESTIONS IN THE SPACES PROVIDED Section B Look at Figure