Practice Paper: Edexcel A Level Business
9BS0/03 (Paper 3)
All themes: business in a competitive environment (pre-released
context)
Question paper
Written by AcePapers
Independent practice paper written for revision. Not an official Pearson paper and
not affiliated with or endorsed by Pearson.
Time allowed: 2 hours Total: 100 marks
Instructions
• Answer every question in Sections A and B.
• This paper is set in the context of the bicycle and e-bike industry. Read the
pre-released context on the next page before the exam, then read the extracts
for each section in the source booklet at the back of this paper.
• Write each answer in the space after the question. Use extra paper if you need
more room, and label it clearly.
• The number of marks for each question or part is shown in brackets. Use it to
judge how much to write and how long to spend (a little over a minute per mark).
• You may use a calculator. Show your working in calculation questions.
• Section A is worth 50 marks and Section B 50 marks.
• All businesses, people and figures in this paper are fictional and were created for
practice.
Name: ______________________________________ Date: ________________
Practice Paper 9BS0/03 (Paper 3) – Question paper Written by AcePapers | Page 1
, Pre-released context: the bicycle and e-bike industry
In the real examination the context is announced in advance so that students can
research it. It is printed here so that this practice paper is self-contained. The briefing
below is fictional and was written for practice; it is not a source of real market
statistics.
Industry briefing
The bicycle industry covers the design, manufacture, distribution, sale, hire and repair of
pedal bicycles and electrically assisted bicycles (e-bikes). It ranges from global
manufacturers that assemble hundreds of thousands of bikes a year to small
independent shops that service bikes for local riders.
E-bikes have transformed the industry. A motor and battery make hills and long
commutes easier, which has attracted older riders, commuters and delivery couriers who
might not otherwise cycle. E-bikes sell for much higher prices than most pedal bikes, so
they now account for a large share of industry revenue in many European countries.
Their batteries, motors and control electronics are complex, and many of these parts are
made by a small number of specialist suppliers, often in Asia.
Demand is affected by the weather and the seasons, by consumer incomes and
confidence, and by government policy. Many governments fund cycle lanes, offer
tax-free ‘cycle to work’ schemes or give grants for e-bikes to reduce traffic and
emissions. After a surge in sales during 2020–2021, many manufacturers and shops
over-ordered, and the following years saw heavy discounting while excess stock was
cleared.
Competition comes from several directions: low-priced imports sold online,
direct-to-consumer brands that bypass shops, a growing second-hand market, and
businesses that rent or lease bikes by subscription. Independent shops increasingly rely
on servicing and repairs, which customers cannot easily buy online, and on expert
advice.
Suggested areas for research
• How the market is segmented (commuting, leisure, sport, cargo, children’s bikes,
delivery fleets) and how businesses position themselves within it.
• The role of technology, research and development, and intellectual property in
e-bikes.
• Global supply chains, exchange rates and trade barriers for components and
finished bikes.
• The challenges faced by small businesses, including seasonality, cash flow,
staffing and finance.
• Government policy, environmental concerns and the growth of subscription and
second-hand models.
Practice Paper 9BS0/03 (Paper 3) – Question paper Written by AcePapers | Page 2
, Section A
Question 1 is based on Extracts A to D, printed in the source booklet. Read them
first.
1 Velocraft Group is a manufacturer of e-bikes.
(a) Assess two economies of scale that Velocraft may have benefited from as its
output grew.
(8)
Practice Paper 9BS0/03 (Paper 3) – Question paper Written by AcePapers | Page 3
9BS0/03 (Paper 3)
All themes: business in a competitive environment (pre-released
context)
Question paper
Written by AcePapers
Independent practice paper written for revision. Not an official Pearson paper and
not affiliated with or endorsed by Pearson.
Time allowed: 2 hours Total: 100 marks
Instructions
• Answer every question in Sections A and B.
• This paper is set in the context of the bicycle and e-bike industry. Read the
pre-released context on the next page before the exam, then read the extracts
for each section in the source booklet at the back of this paper.
• Write each answer in the space after the question. Use extra paper if you need
more room, and label it clearly.
• The number of marks for each question or part is shown in brackets. Use it to
judge how much to write and how long to spend (a little over a minute per mark).
• You may use a calculator. Show your working in calculation questions.
• Section A is worth 50 marks and Section B 50 marks.
• All businesses, people and figures in this paper are fictional and were created for
practice.
Name: ______________________________________ Date: ________________
Practice Paper 9BS0/03 (Paper 3) – Question paper Written by AcePapers | Page 1
, Pre-released context: the bicycle and e-bike industry
In the real examination the context is announced in advance so that students can
research it. It is printed here so that this practice paper is self-contained. The briefing
below is fictional and was written for practice; it is not a source of real market
statistics.
Industry briefing
The bicycle industry covers the design, manufacture, distribution, sale, hire and repair of
pedal bicycles and electrically assisted bicycles (e-bikes). It ranges from global
manufacturers that assemble hundreds of thousands of bikes a year to small
independent shops that service bikes for local riders.
E-bikes have transformed the industry. A motor and battery make hills and long
commutes easier, which has attracted older riders, commuters and delivery couriers who
might not otherwise cycle. E-bikes sell for much higher prices than most pedal bikes, so
they now account for a large share of industry revenue in many European countries.
Their batteries, motors and control electronics are complex, and many of these parts are
made by a small number of specialist suppliers, often in Asia.
Demand is affected by the weather and the seasons, by consumer incomes and
confidence, and by government policy. Many governments fund cycle lanes, offer
tax-free ‘cycle to work’ schemes or give grants for e-bikes to reduce traffic and
emissions. After a surge in sales during 2020–2021, many manufacturers and shops
over-ordered, and the following years saw heavy discounting while excess stock was
cleared.
Competition comes from several directions: low-priced imports sold online,
direct-to-consumer brands that bypass shops, a growing second-hand market, and
businesses that rent or lease bikes by subscription. Independent shops increasingly rely
on servicing and repairs, which customers cannot easily buy online, and on expert
advice.
Suggested areas for research
• How the market is segmented (commuting, leisure, sport, cargo, children’s bikes,
delivery fleets) and how businesses position themselves within it.
• The role of technology, research and development, and intellectual property in
e-bikes.
• Global supply chains, exchange rates and trade barriers for components and
finished bikes.
• The challenges faced by small businesses, including seasonality, cash flow,
staffing and finance.
• Government policy, environmental concerns and the growth of subscription and
second-hand models.
Practice Paper 9BS0/03 (Paper 3) – Question paper Written by AcePapers | Page 2
, Section A
Question 1 is based on Extracts A to D, printed in the source booklet. Read them
first.
1 Velocraft Group is a manufacturer of e-bikes.
(a) Assess two economies of scale that Velocraft may have benefited from as its
output grew.
(8)
Practice Paper 9BS0/03 (Paper 3) – Question paper Written by AcePapers | Page 3
