A-level
BUSINESS
Paper 2 Business 2
Tuesday 21 May 2024 Morning Time allowed: 2 hours
For Examiner’s Use
Question Mark
1.1
1.2
1.3
1.4
2.1
2.2
2.3
3.1
3.2
3.3
TOTAL
7132/2
, 2
Answer all questions in the spaces provided.
0 1 Read the information below and then answer the questions that follow.
Biggs Ltd
Biggs Ltd operates in the snack food market, selling crisps, nuts and other savoury
products. Potatoes are a key ingredient in its snacks. The price of potatoes has risen by
35% over the last two years.
The company is one of six firms who dominate a market that has been growing strongly for
ten years. The market growth is largely due to the development of new snacks designed
for children. However, Biggs Ltd’s market share has been falling since 2019.
Biggs Ltd plans to launch a completely new range of products in 2024. It will promote this
by sponsoring a major televised sporting competition which has children and families as its
audience.
Appendix A Extract from Biggs Ltd’s recent financial statements
2023 2022
£000s £000s
Revenue 47 569 46 994
Gross profit 22 289 22 820
Operating profit 4 650 4 701
Payables 5 056 5 221
Appendix B Labour productivity for Biggs Ltd and the snack food industry average
(shown as an index number, base year = 2017)
Year Biggs Ltd Industry average
2020 104.2 104.3
2023 100.3 105.9
, 3
Do not write
outside the
Appendix C Marketing expenditure as a percentage of revenue, 2020–2024* box
* 2024 based on Biggs Ltd’s forecast.
Appendix D Results of market research conducted with families on Biggs Ltd’s new
product range and the promotional campaign
Average survey score by age group
Survey question
6 to 16 17 to 35 36
years years years and over
I will definitely try the new products
9.9 7.2 1.8
when they are available.
The promotional campaign
improves my view of Biggs Ltd’s 8.3 6.3 8.0
brand.
I frequently consume snack foods
8.9 6.9 2.7
at sports events.
Scale: 10 = strongly agree, 5 = neither agree nor disagree, 0 = strongly disagree
Source: Data from 27 interviews with families, conducted by Biggs Ltd in 2021.
Turn over ►
*03*
, 4
Do not write
outside the
Appendix E Percentage of snack products bought and consumed by different box
age groups
Results from a recent survey of 3000 respondents conducted by an independent market
research firm.
BUSINESS
Paper 2 Business 2
Tuesday 21 May 2024 Morning Time allowed: 2 hours
For Examiner’s Use
Question Mark
1.1
1.2
1.3
1.4
2.1
2.2
2.3
3.1
3.2
3.3
TOTAL
7132/2
, 2
Answer all questions in the spaces provided.
0 1 Read the information below and then answer the questions that follow.
Biggs Ltd
Biggs Ltd operates in the snack food market, selling crisps, nuts and other savoury
products. Potatoes are a key ingredient in its snacks. The price of potatoes has risen by
35% over the last two years.
The company is one of six firms who dominate a market that has been growing strongly for
ten years. The market growth is largely due to the development of new snacks designed
for children. However, Biggs Ltd’s market share has been falling since 2019.
Biggs Ltd plans to launch a completely new range of products in 2024. It will promote this
by sponsoring a major televised sporting competition which has children and families as its
audience.
Appendix A Extract from Biggs Ltd’s recent financial statements
2023 2022
£000s £000s
Revenue 47 569 46 994
Gross profit 22 289 22 820
Operating profit 4 650 4 701
Payables 5 056 5 221
Appendix B Labour productivity for Biggs Ltd and the snack food industry average
(shown as an index number, base year = 2017)
Year Biggs Ltd Industry average
2020 104.2 104.3
2023 100.3 105.9
, 3
Do not write
outside the
Appendix C Marketing expenditure as a percentage of revenue, 2020–2024* box
* 2024 based on Biggs Ltd’s forecast.
Appendix D Results of market research conducted with families on Biggs Ltd’s new
product range and the promotional campaign
Average survey score by age group
Survey question
6 to 16 17 to 35 36
years years years and over
I will definitely try the new products
9.9 7.2 1.8
when they are available.
The promotional campaign
improves my view of Biggs Ltd’s 8.3 6.3 8.0
brand.
I frequently consume snack foods
8.9 6.9 2.7
at sports events.
Scale: 10 = strongly agree, 5 = neither agree nor disagree, 0 = strongly disagree
Source: Data from 27 interviews with families, conducted by Biggs Ltd in 2021.
Turn over ►
*03*
, 4
Do not write
outside the
Appendix E Percentage of snack products bought and consumed by different box
age groups
Results from a recent survey of 3000 respondents conducted by an independent market
research firm.
