AQA A-LEVEL BUSINESS 2 PAPER 2 LATEST VERSION

AQA A- LEVEL BUSINESS 2 PAPER 2 LATEST VERSION Forename(s) Candidate ure A-level BUSINESS Paper 2 Business 2 Monday 3 June 2019 Afternoon Time allowed: 2 hours Materials For this paper you must have: • a calculator. Instructions • Use black ink or black ball-point pen. • Fill in the boxes at the top of this page. • Answer all questions. • You must answer the questions in the spaces provided. Do not write outside the box around each page or on blank pages. • Do all rough work in this answer book. Cross through any work you do not want to be marked. Information • The marks for questions are shown in brackets. • The maximum mark for this paper is 100. £m Kellogg’s (including Crunchy Nut, Corn Flakes, Coco Pops and Special K) 401 Weetabix 207 Nestlé (including Shreddies and Cheerios) 159 Associated British Foods (including Jordans and Dorset cereals) 72 Total sales of all manufacturers1288 Source: Mintel Do not write box Do not write Turn over ► box Do not write . 1 ‘The data in Appendix E shows that the fall in advertising spending by Kellogg’s from 2013 to 2017 has caused lower sales.’ Do not write box Explain why this statement might not be correct. [2 marks] . 2 Appendix B shows the actual and forecasted data for the value and the volume of sales of RTE breakfast cereals between 2018 and 2023. Explain how it is possible for the value of sales to increase when the volume of sales is falling. [2 marks] . 3 Use Appendix A to calculate the combined market share of the largest four manufacturers of RTE cereals. [3 marks] . 4 Analyse how the combined market share of the largest four manufacturers in the UK RTE breakfast cereal market might affect the threat of entry by other businesses into this market. Do not write box [9 marks] Extra space Turn over ► Do not write box *06 . 5 Kellogg’s is developing a new RTE breakfast cereal for the UK and has examined the market research data in Appendices A to E. Do you think that the use of this market research will guarantee that this new product achieves high sales? Justify your answer. Do not write box [16 marks] *07* Turn over ► Do not write outside the Extra space *0 * Do not write outside the Turn over ► *09 Read the information below and then answer the questions that follow. WeRide plc WeRide (WR) is a taxi business. It has an app that allows its passengers to find and book the nearest driver themselves. WR has grown quickly and its service is now available in over 400 cities in 60 countries. It employs its taxi drivers on flexible employment contracts. Stricter laws are threatening WR’s growth in the taxi market in some locations. For example, several cities have: • imposed limits on the number of new licences for all taxis in order to reduce congestion and pollution • banned WR because of concerns that its vehicles do not meet new safety regulations. In 2018, WR announced a change to its future strategy. Instead of trying to grow its taxi business further, WR intends to invest several million pounds in developing a rental service for electric bicycles. This will be delivered through its app. WR’s Chief Executive said that individual methods of transport, such as electric bicycles, were better suited to travelling around cities than cars these days. She recognises that the move into the rental of electric bicycles might damage short-term profits, but thinks it is the right long- term strategy for the business. Although the profit margin on an electric bicycle ride will be less than a taxi ride, WR’s Chief Executive believes that the profits from electric bicycles will eventually be higher than from taxis. However, some investors are concerned about the impact on dividends of the decision to move into electric bicycles. Do not write outside the . 1 WR has made a strategic decision to move into electric bicycle rentals. Analyse the possible impact of this on the market capitalisation of the company. Do not write box [9 marks] Extra space Turn over ► Do not write box . 2 WR employs its taxi drivers on flexible employment contracts. Analyse one advantage and one disadvantage of this for the business. [9 marks] Do not write box Extra space Turn over ► Do not write box . 3 Stricter laws have affected WR’s taxi business. To what extent do you think that legal changes create more threats than opportunities for businesses? Do not write box [16 marks] Turn over ► Do not write outside the Extra space *17* Do not write outside the *17* Turn over ► Read the information below and then answer the questions that follow. Do not write outside the *1 * Do not write outside the . 1 Galin: • invests in research and development • owns a number of patents. Analyse how these two factors help Galin to achieve high profit margins on its new products. Do not write box [9 marks] Extra space Turn over ► Do not write box . 2 Analyse why Galin has chosen a regional organisational structure rather than a functional one. [9 marks] Do not write box Extra space Turn over ► Do not write box . 3 Galin wants to increase labour productivity. To what extent do you think that attempts by businesses to increase labour productivity will be welcomed by employees? [16 marks] Do not write box Turn over ► Do not write outside the Extra space Do not write outside the END OF QUESTIONS There are no questions printed on this page DO NOT WRITE ON THIS PAGE ANSWER IN THE SPACES PROVIDED Do not write box *28* There are no questions printed on this page DO NOT WRITE ON THIS PAGE ANSWER IN THE SPACES PROVIDED Do not write box *27* There are no questions printed on this page DO NOT WRITE ON THIS PAGE ANSWER IN THE SPACES PROVIDED Do not write box Copyright information For confidentiality purposes, from the November 2015 examination series, acknowledgements of third-party copyright material are published in a separate booklet rather than including them on the examination paper or support materials. This booklet is published after each examination series and is available for free download from after the live examination series. Permission to reproduce all copyright material has been applied for. 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