- Study guides, Class notes & Summaries

Mark Scheme (Results) Summer 2023 Pearson Edexcel GCE A Level in Business (9BS0) Paper 03 Investigating business in a competitive environmentEdexcel and BTEC Qualifications Edexcel and BTEC qualifications are awarded by Pearson, the UK’s largest awarding body. We provide a wide range of qualifications including academic, vocational, occupational and specific programmes for employers. For further information visit our qualifications websites at or . Alternatively, you can get in touch...

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55 pages

Written in 2023/2024

Grade A+

BESTSTUDYMATERIALS

Added Value - Added value is the value of the finished output over and above the cost of achieving it i.e. the cost of inputs and transformations. Value can be added by manufacturing, branding, technology and a unique selling point. Calculated as: Selling price - cost of inputs - cost of transformation Advertising - A promotional method that involves the use of media to communicate with existing and potential consumers. Media used may be wide ranging from magazines and televisio...

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45 pages

Written in 2023/2024

Grade A+

kharowl

Capital - The money provided by the owners in a business Capital expenditure - Spending on business resources that can be used repeatedly over a period of time Internal finance - Money generated by the business or its current owners Retained profit - Profit after tax that is 'ploughed back' into the business Revenue expenditure - Spending on business resources that have already been consumed or will be very shortly Sale and leaseback - The practice of selling assets, such as property ...

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7 pages

Written in 2023/2024

Grade A+

HenryTom

Pull factors - Factors that entice firms into new markets and are the opportunities that businesses can take advantage of when selling into overseas markets Push factors - Factors in the existing market that encourage an organisation to seek international opportunities Risk - The probability of a (bad) event happening multiplied by its (negative) impact Saturation - The point when most of the customers who want to buy a product already have it, or there is limited remaining ...

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2 pages

Written in 2023/2024

Grade A+

TeeGrades

Types of market - Mass, niche and dynamic Market orientation - The needs of the consumer placed at the centre Product orientation - Emphasis placed on the production process and the product itself Quantitative market research - Collection of numerical information Qualitative market research - Collection of information about attitudes, beliefs, etc. Factors affecting demand - Price of complements / substitute goods Consumer incomes Fashions Advertising Demogra...

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4 pages

Written in 2023/2024

Grade A+

TeeGrades

% mark up - (Difference in price/original cost) X 100 % change - ((New value - old value)/old value) X 100 Price elasticity of demand (PED) - % change in quantity demanded/% change in price Income elasticity of demand (YED) - % change in quantity demanded/% change in income Net cash flow - Cash inflows - Cash Outflows. This shows how much cash you should have at the end of a period of time given the amount coming in and going out. Opening balance - Cash balance a...

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3 pages

Written in 2023/2024

Grade A+

TeeGrades

Production - The transformation of resources into goods or services Job production - where a single product is made at a time Batch production - where one type of product is made and then settings / inputs are changed to manufacture another type. This is repeated to produce those products which are needed when demand dictates Flow production - producing items in a continually moving process / assembly line Cell production - Splitting flow production into self-contained...

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3 pages

Written in 2023/2024

Grade A+

TeeGrades

Edexcel A Level Business – Global Business Theme 4 Globalization The growth of international trade that has made an increasing number of markets global rather than national. Economy The state of a country or region in terms of the production and consumption of goods and services GDP Gross Domestic Product - the value of all goods and services produced within an economy over a period of time. Per capita Looking at data per member of the population Human Development Index A singular, measurable...

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5 pages

Written in 2022/2023

Grade A

Bri254

Edexcel A Level Business – Business Decisions and Strategy Theme 3 Average rate of return The total accounting return for a project to see if it meets a target. Or the average amount of profit the project returns per year as a percentage of the initial investment cost. (Net return / Number of years) / Initial Cost)) x 100 Discounted cash flow / Net present value Calculates the monetary value now, of the projects future cash flows. Using discount factors to show that £100 in 3 years is not wo...

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10 pages

Written in 2022/2023

Grade A

Bri254

Edexcel A Level Business – Managing Business Activities Theme 2 Margin Margin of safety Actual output - Break even output. This shows how many sales the business was above the break even point. Budget A financial plan for the future concerning the revenues and costs of a business Historical budgeting Using last year's figures as the basis for the next year's budget Zero budgeting Setting budgets at £0 and people will have to put proposals forwards for sales and costs Revenue / income budg...

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12 pages

Written in 2022/2023

Grade A

Bri254

Edexcel A Level Business – Marketing and People Theme 1 Pricing strategy - price skimming A strategy where a business charges a premium price when the product is first launched to maximize revenue per unit Pricing strategy - penetration pricing A strategy where a business offers a significantly lower price than normal to maximize volume sold and build a loyal consumer base Pricing strategy - dynamic pricing A strategy where a business sets flexible prices for products based on current market ...

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13 pages

Written in 2022/2023

Grade A

Bri254

Edexcel A Level Business - Advanced Information Paper 3 Minimum wage legislation Law designed to ensure that every employee is paid a minimum amount of money Anti-discrimination legislation Law designed to ensure that people are not discriminated against due to their ethnicity, gender or age. Industrial relations Relationships between employees, employers and trade unions. This offers protection for unfair dismissal. Consumer protection Law providing a wide variety of protection to consumers En...

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6 pages

Written in 2022/2023

Grade A

Bri254

Edexcel A Level Business - Advanced Information Paper 2 Ratio Analysis A series of ratios allowing a business to assess their profitability and liquidity Ratio Analysis - Gross profit margin (Gross profit / Revenue) x 100 A profitability ratio showing what percentage of the revenue is gross profit Ratio Analysis - Operating profit margin (Operating profit / Revenue) x 100 A profitability ratio showing what percentage of the revenue is operating profit Ratio Analysis - Net profit margin (Net pro...

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9 pages

Written in 2022/2023

Grade A

Bri254

Edexcel A Level Business - Advanced Information Paper 1 Objectives - Profit satisfying The aim of making enough profit to live a satisfactory quality of life, but not pushing to maximize profits. Objectives - Profit maximization The process of ensuring that the absolute maximum profit is made from the business, through reducing costs and increasing revenues Objectives - Survival Ensuring that the business continues to exist, even if it is currently making a loss Objectives - Market growth Setti...

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7 pages

Written in 2022/2023

Grade A

Bri254

Entrepreneurs - ANS-Individuals who, typically, set up and run a business and take the risks associated with this Intrapreneurs - ANS-Employees who use entrepreneurial skills, without having to risk their own money, to find and develop initiatives that will have financial benefits for their employer Profit maximisation - ANS-An attempt to make as much money as possible in a given time period Profit satisficing - ANS-Making enough profit to satisfy the needs of the business owner(s) ...

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2 pages

Written in 2022/2023

Grade A+

Accurate

Entrepreneurs - ANS-Individuals who, typically, set up and run a business and take the risks associated with this Intrapreneurs - ANS-Employees who use entrepreneurial skills, without having to risk their own money, to find and develop initiatives that will have financial benefits for their employer Profit maximisation - ANS-An attempt to make as much money as possible in a given time period Profit satisficing - ANS-Making enough profit to satisfy the needs of the business owner(s) ...

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2 pages

Written in 2022/2023

Grade A+

BrainEdge

Appreciation of a currency - A rise in the value of a currency Base rate - The rate of interest around which a bank structures other interest rates. Boom - The peak of the economic cycle where GDP is growing at its fastest Consumer price index (CPI) - A common measure of price changes used in the UK Deflation - A fall in the general price level. Depreciation of a currency - A fall in the value of a currency Downturn - A period in the economic cycle where GDP grows, but more slowly Busines...

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2 pages

Written in 2022/2023

Grade A+

BrainEdge

Articles of Association - ANS-a document that provides details of the internal running of a limited company. Certificate of Incorporation - ANS-a document that declares a business is allowed to trade as a limited company. Co-operative - ANS-a business organisation owned by its members, who have equal voting rights. Deed of Partnership - ANS-a binding legal document that states the formal rights of partners. Franchise - ANS-a business model in which a business (the franchisor) allows ...

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2 pages

Written in 2022/2023

Grade A

BrainEdge

GDP (Gross domestic product) The total value of goods and services produced by a particular country, over a year. Emerging Market A country with rapid economic growth. Multinational A business with its head quarters in one country and based in other countries. Merger Where two companies agree they should join together in to one business. Monetary policy Policy that controls the interest rates. Fiscal policy Government policy that sets tax rates and govern...

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3 pages

Written in 2022/2023

Grade A+

Arthurmark