18
20
gy
te
Write your name here
ra
Surname Other names
st
d
an
Centre Number Candidate Number
Pearson Edexcel
s
on
si
Level 3 GCE
ci
de
Business
,
es
ti
vi
ti
Advanced
ac
Paper 2: Business activities, decisions and strategy
ss
ne
si
Bu
Monday 11 June 2018 – Afternoon Paper Reference
|
Time: 2 hours 9BS0/02
You do not need any other materials. Total Marks
Instructions
• Use black ink or ball-point pen.
• centrethe
Fill in boxes at the top of this page with your name,
number and candidate number.
• Answer all questions.
• Answer the questions in the spaces provided
– there may be more space than you need.
Information
• The total mark for this paper is 100.
• The marks for each question are shown in brackets
– use this as a guide as to how much time to spend on each question.
• may use a calculator.
You
Advice
• Read each question carefully before you start to answer it.
• Try to answer every question.
• your answers if you have time at the end.
Check
Turn over
*P52308A0124*
P52308A
©2018 Pearson Education Ltd.
1/1/1/1
, 18
20
gy
te
ra
Answer ALL questions.
st
d
SECTION A
an
s
on
Read the following extracts (A to D) before answering Question 1.
si
ci
Write your answers in the spaces provided.
de
,
Extract A
es
ti
vi
Mumtaz Food Group
ti
ac
Mumtaz is an Asian food producer in Bradford. It is a private limited company owned
ss
and run by the Akbar family. Established as a takeaway restaurant in 1979, it now owns
ne
three restaurants and food processing factories that make ready meals. It has always used
si
Bu
internal finance to establish and grow the business. 5
|
Mumtaz has sales revenues of around £25m. Unlike many of its rivals that produce
ready meals for the supermarkets’ own label brands, Mumtaz sells most of its products
under the Mumtaz premium brand name. Asda, Morrisons and Tesco are among the
supermarkets that sell Mumtaz products and they are also sold in more than
40 countries. The ready meals part of the Group is growing by 15-20% a year. 10
In 2006, a new product range of Halal baby food was launched after Mumtaz became
aware of how difficult it was for Muslim parents to find Halal baby food. Today, roughly
half of all Mumtaz baby food is bought by non-Muslim customers.
Mumtaz intends to continue to expand by organic growth. It recently opened a
second factory in Bradford to meet the increased demand for its ready meals. It is also 15
considering setting up manufacturing operations in Asia.
(Source: adapted from © 2017 Johnston Publishing Ltd)
Extract B
Cost, sales and revenue data for a food producer
Annual fixed costs £3m
Selling price per unit £5
Variable cost per unit £2
Number of units sold 1.5m
2
*P52308A0224*
, 18
20
gy
te
ra
Extract C
st
d
UK Economic data for 2016 and forecasts for 2020
an
s
on
si
Economic indicator 2016 2020
ci
de
Economic growth (change in GDP) 0.5% 1%
,
es
ti
Inflation 1.2% 2.7%
vi
ti
ac
Unemployment 4.8% 6.5%
ss
ne
US$ to the £ exchange rate 1.23 0.99
si
Bu
|
(Source: adapted from www.tradingeconomics.com/united-kingdom/forecast)
Extract D
The UK ready meals market
The UK ready meals market grew by 2% in volume and value in 2016. Sales of ready
meals benefitted from the trend towards premium products amongst consumers.
The popularity of ready meals was due to their convenience, as well as the growing
number of single-person households. 5
Supermarkets’ own label products remained the leader in ready meals with a combined
68% market share, with Tesco having the highest percentage of 18%. Retailers offer
different recipes which, in turn, help them to meet a wide range of consumer tastes.
Supermarkets’ own label products also rely heavily on price discounts and promotional
offers in order to attract more price-sensitive buyers. 10
Convenience is likely to be an important factor in driving sales of ready meals, but so is
the introduction of new product ranges.
(Source: adapted from © 2017 Euromonitor)
3
*P52308A0324* Turn over
20
gy
te
Write your name here
ra
Surname Other names
st
d
an
Centre Number Candidate Number
Pearson Edexcel
s
on
si
Level 3 GCE
ci
de
Business
,
es
ti
vi
ti
Advanced
ac
Paper 2: Business activities, decisions and strategy
ss
ne
si
Bu
Monday 11 June 2018 – Afternoon Paper Reference
|
Time: 2 hours 9BS0/02
You do not need any other materials. Total Marks
Instructions
• Use black ink or ball-point pen.
• centrethe
Fill in boxes at the top of this page with your name,
number and candidate number.
• Answer all questions.
• Answer the questions in the spaces provided
– there may be more space than you need.
Information
• The total mark for this paper is 100.
• The marks for each question are shown in brackets
– use this as a guide as to how much time to spend on each question.
• may use a calculator.
You
Advice
• Read each question carefully before you start to answer it.
• Try to answer every question.
• your answers if you have time at the end.
Check
Turn over
*P52308A0124*
P52308A
©2018 Pearson Education Ltd.
1/1/1/1
, 18
20
gy
te
ra
Answer ALL questions.
st
d
SECTION A
an
s
on
Read the following extracts (A to D) before answering Question 1.
si
ci
Write your answers in the spaces provided.
de
,
Extract A
es
ti
vi
Mumtaz Food Group
ti
ac
Mumtaz is an Asian food producer in Bradford. It is a private limited company owned
ss
and run by the Akbar family. Established as a takeaway restaurant in 1979, it now owns
ne
three restaurants and food processing factories that make ready meals. It has always used
si
Bu
internal finance to establish and grow the business. 5
|
Mumtaz has sales revenues of around £25m. Unlike many of its rivals that produce
ready meals for the supermarkets’ own label brands, Mumtaz sells most of its products
under the Mumtaz premium brand name. Asda, Morrisons and Tesco are among the
supermarkets that sell Mumtaz products and they are also sold in more than
40 countries. The ready meals part of the Group is growing by 15-20% a year. 10
In 2006, a new product range of Halal baby food was launched after Mumtaz became
aware of how difficult it was for Muslim parents to find Halal baby food. Today, roughly
half of all Mumtaz baby food is bought by non-Muslim customers.
Mumtaz intends to continue to expand by organic growth. It recently opened a
second factory in Bradford to meet the increased demand for its ready meals. It is also 15
considering setting up manufacturing operations in Asia.
(Source: adapted from © 2017 Johnston Publishing Ltd)
Extract B
Cost, sales and revenue data for a food producer
Annual fixed costs £3m
Selling price per unit £5
Variable cost per unit £2
Number of units sold 1.5m
2
*P52308A0224*
, 18
20
gy
te
ra
Extract C
st
d
UK Economic data for 2016 and forecasts for 2020
an
s
on
si
Economic indicator 2016 2020
ci
de
Economic growth (change in GDP) 0.5% 1%
,
es
ti
Inflation 1.2% 2.7%
vi
ti
ac
Unemployment 4.8% 6.5%
ss
ne
US$ to the £ exchange rate 1.23 0.99
si
Bu
|
(Source: adapted from www.tradingeconomics.com/united-kingdom/forecast)
Extract D
The UK ready meals market
The UK ready meals market grew by 2% in volume and value in 2016. Sales of ready
meals benefitted from the trend towards premium products amongst consumers.
The popularity of ready meals was due to their convenience, as well as the growing
number of single-person households. 5
Supermarkets’ own label products remained the leader in ready meals with a combined
68% market share, with Tesco having the highest percentage of 18%. Retailers offer
different recipes which, in turn, help them to meet a wide range of consumer tastes.
Supermarkets’ own label products also rely heavily on price discounts and promotional
offers in order to attract more price-sensitive buyers. 10
Convenience is likely to be an important factor in driving sales of ready meals, but so is
the introduction of new product ranges.
(Source: adapted from © 2017 Euromonitor)
3
*P52308A0324* Turn over