14 marks
Rothley Bikes has released a new model every year for six years, each one adding small improvements to the model before it.
Explain how this approach to innovation could benefit Rothley Bikes.
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Innovation (AQA A Level Business): Exam Questions
Exam code: 7132
Syllabus Edition
First teaching 2023
Last exams 2027
2 hours11 questions
24 marks
Marchgate Foods sells ready meals in plastic trays. Several major supermarkets have announced that from next year they will only list products in recyclable packaging.
Explain one pressure on Marchgate Foods to innovate.
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35 marks
Padstow Components has a small research budget but employs 400 experienced production staff. It wants to reduce waste on its assembly lines.
Explain how Padstow Components could innovate without a large research budget.
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46 marks
Verity Devices has spent three years developing a new type of insulin pen. A larger competitor has the resources to copy the design quickly.
Analyse how intellectual property rights could protect Verity Devices.
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56 marks
Wistow Cycles is introducing a semi-automated welding line at the same time as launching a new electric bike model.
Analyse the impact of these innovations on Wistow Cycles' functional areas.
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124 marks
Read the case study in the Insert (opens in a new tab).
A key feature of Sanjay’s business is differentiation provided by his innovative, speedy waffle maker.
To what extent is successful innovation essential for all businesses choosing a strategy of differentiation?
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212 marks
Read the case study in the Insert (opens in a new tab).
Analyse how copyright may have been important to the growth of SSN Ltd.
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325 marks
‘To achieve successful innovation, the level of spending on research and development is more important than the organisational culture of a business.’
Do you agree? Justify your view.
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49 marks
Case Study
Galin plc
Galin is a large multinational company that sells products in 10 different categories, including fabric care (eg washing powder), home care (eg furniture polish) and hair care (eg shampoo) products. It has 50 different brands and in 2018 achieved global sales of $60 billion.
Galin has chosen to have a regional organisational structure, dividing the world into six regions: North America, Europe, Asia, Latin America, the Middle East and Africa. There are major differences between these regions: for example, in terms of market conditions, labour markets and economic factors.
In 2018 Galin invested 3% of its sales revenue into research and development (compared with an industry average of 1%) and owned 55 000 patents. Its new products achieve high profit margins. When developing products, Galin encourages collaboration between people in different jobs.
An objective of the company for 2019 is to increase labour productivity.
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.
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59 marks
Analyse how introducing intrapreneurship can improve the financial performance of a business.
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625 marks
A business has had a record of poor innovation for many years.
To what extent do you think that if the business increases its investment spending on innovation this will lead to more success in this area?
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