UNIT ASSESSMENT Edexcel A Level Business ... Page 1 Edexcel A Level Business Unit Assessment Edexcel

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    Page 1 Edexcel A Level Business Unit Assessment

    Edexcel A Level Business Unit Assessment

    2.4 Resource management 2.5 External influences

    h 1 hour

    h The maximum mark for this Unit Assessment is 50

    UNIT ASSESSMENT

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    Centre Name

    This Unit Assessment covers:

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    Page 2 Edexcel A Level Business Unit Assessment

    Edexcel A Level Business Unit Assessment ANSWER ALL QUESTIONS

    Extract A Fox’s Biscuits Fox’s Biscuits in Yorkshire is an iconic brand. Exported all over the world, the company employs 850 people and for those employees, Christmas comes early as they begin baking Christmas products in July to prepare for the huge increase in demand. As well as producing their own biscuits, they also make own brand biscuits for companies such as M&S, and this year, the business will produce 1,500 million biscuits. Last year, labour productivity was 1.62 million biscuits per employee.

    Production takes place over three floors with each floor being dedicated to a specific part of the production process; mixing, baking and cooling. Ingredients such as cocoa and almonds, which are imported from all over the world, are mixed and then rolled out flat on a dough web. The mixture is then moulded, cut or piped into the shape of the biscuit before a conveyor belt takes them into the ovens. Chocolate biscuits are cooled to ensure the chocolate doesn’t melt when it covers them. They are then stored in a cool room and put into an insert before being packaged.

    Every hour, biscuit samples are checked for height, weight and length to make sure they are consistent. The biscuits are wrapped on a high-speed machine which also weighs and scans them with a metal detector. If something is amiss, the packet is blown off the line. After being boxed up the biscuits go to Fox’s distribution centre in Wakefield, where they wait to be ordered by retail customers. The whole process, from mixing the ingredients to being packaged, takes 40 minutes.

    Source: www.batleynews.co.uk/news/sweet-behind-the-scenes-at-fox-s-biscuits

    Extract B The weakening pound The exchange rate continues to stay weak in the UK with the pound currently only buying $1.2 and €1.1 compared to $1.5 and €1.3 a couple of years ago.

    Source: https://www.poundsterlinglive.com/eur/5934-gbp-to-eur-into-new-year

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    Edexcel A Level Business Unit Assessment Page 3

    Extract C UK inflation rises UK inflation increased to 1.8% this year, close to the Bank of England’s inflationary target. Economists said inflation would rise further and exceed the Bank’s target within the next few months. They have warned rising inflation risks squeezing household incomes if wages fail to keep pace.

    Source: https://www.theguardian.com/business/2017/feb/14/uk-inflation-rises-to-18-spurred-by-weak-pound-and-rising-fuel-costs

    Extract D Taylor Wimpey reports 34% rise in profits Housebuilder,Taylor Wimpey, reported a huge rise in profits brought about by a 7.5% increase in sales, fuelled by economic conditions including low interest rates of 0.5% and a recovery in the business cycle with rising GDP growth. Managers said sales were also boosted by the Government’s Help to Buy scheme, which offers an equity loan and a smaller deposit for buyers of newly-built homes. 37% of houses were sold through the scheme which helps first time buyers get on the housing ladder.

    Source: www.thisismoney.co.uk/money/markets/article-3471043/Housebuilder-Taylor-Wimpey-reports-34-hike-annual-profits- average-home-prices-hitting-230-000.html

    Extract E Employee protection legislation in the construction industry Like most industries, construction firms within the UK need to adhere to a variety of employee protection legislation such as the National Living Wage and the Health and Safety at Work Act. Only last week, a London construction firm was fined after four workers fell more than three and a half metres whilst carrying a ventilation unit. Taylor Wimpey have also fallen foul of the Health and Safety at Work Act when they were fined £75,000 after safety failures relating to the death of an 18-year-old apprentice.

    Source: adapted from https://www.healthandsafetyatwork.com/content/taylor-wimpey-fined-following-death-apprentice

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    Page 4 Edexcel A Level Business Unit Assessment

    1 a) Explain how rising inflation might affect Fox’s Biscuits (4 marks)

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    Edexcel A Level Business Unit Assessment Page 5

    b) Using the data in Extract A, calculate the change in labour productivity at Fox’s Biscuits between this year and last year. You are advised to show your working.

    (4 marks)

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    Page 6 Edexcel A Level Business Unit Assessment

    c) Explain how Taylor Wimpey could be affected by employee protection legislation (4 marks)

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    Edexcel A Level Business Unit Assessment Page 7

    d) Assess two ways in which Fox’s Biscuits might be affected by a depreciation in the pound (8 marks)

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    Page 8 Edexcel A Level Business Unit Assessment

    e) Assess whether Taylor Wimpey’s huge rise in sales was due to low interest rates (10 marks)

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    Edexcel A Level Business Unit Assessment Page 9

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    Page 10 Edexcel A Level Business Unit Assessment

    f) The directors of Fox’s Biscuits are considering how to increase profits. One option is to introduce a system of Total Quality Management (TQM), another option is to introduce a system of Just in Time (JIT) stock control.

    Evaluate both options and recommend which one the directors should choose

    (20 marks)

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    Edexcel A Level Business Unit Assessment Page 11

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    Page 12 Edexcel A Level Business Unit Assessment

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