Practice questions (Edexcel A Level Business): Revision Note

Assess two ways an independent record store could build a strong brand identity to gain customer loyalty (8)

• Pre-release link: Indie retailers rely on events like Record Store Day and community “feel"

• Syllabus link

  • 1.3.2 Branding and promotion

  • 1.3.5 Marketing strategy

Assess how knowledgeable and passionate staff in HMV stores can enhance customer experience and brand loyalty (8)

• Pre release link: HMV focuses on “experiential” retail and invests in staff expertise.

• Syllabus link

  • 1.4.4 Motivation in theory

  • 1.1.3 Market positioning

Assess the importance of controlling operational costs for a boutique festival such as Brackenwood (8)

• Pre-release link: Brackenwood faces variable costs, including last-minute infrastructure changes

• Syllabus link

  • 2.2.4 Budgets

  • 2.4.1 Production, productivity, efficiency (cost control)

Assess how the rise in vinyl demand could influence stock management decisions for major music retailers such as HMV

• Pre-release link: Physical inventory management for vinyl pressings vs. declining CD sales

• Syllabus link

  • 2.4.3 Stock control

  • 1.1.1 The market (dynamic changes)

Assess how HMV’s diversification into live events, merchandise and apparel might help it to maintain competitiveness in a streaming‑focused market

• Pre-release link: HMV’s “experiential” approach aims to differentiate from streaming services

• Syllabus link

  • 3.1.2 Theories of corporate strategy (diversification)

  • 3.2.1 Growth objectives

Assess how boutique festivals might address the challenge of rising artist fees and security costs

• Pre-release link: Smaller festivals face competition from larger events with bigger budgets

• Syllabus link

  • 3.2.4 Reasons for staying small

  • 3.1.1 Corporate objectives

Assess the opportunities for UK record labels in using social media platforms to launch local artists onto global streaming charts

• Pre-release link: TikTok, Instagram Reels, and YouTube Shorts can drive international exposure

• Syllabus link

  • 4.2.1 Conditions prompting trade (pull factors)

  • 4.2.2 Assessment of a country as a market

Assess how the global popularity of streaming may affect UK‑based festival promoters trying to attract overseas visitors and international sponsors

• Pre-release link: Festivals compete globally for artists and audiences, building brand presence abroad

• Syllabus link

  • 4.3.1 Global marketing strategy

  • 4.4.1 Impact of MNCs (global competition)

Assess the extent to which improved staff training at HMV could boost employee motivation and store sales

• Pre-release link: HMV’s strategy to make in‑store shopping an experience

• Syllabus link

  • 1.4.2 Recruitment, selection, training

  • 1.4.4 Motivation in theory

Assess the effectiveness of independent record shops' niche marketing techniques in attracting customers in a streaming-dominated market

• Pre-release link: “We don’t just sell records; we sell a sense of community”

• Syllabus link

  • 1.1.1 Mass vs. niche markets

  • 1.3.5 Marketing strategy

Assess how robust financial planning could help smaller festivals like Brackenwood achieve long‑term viability

• Pre-release link: Weather and last-minute logistics can disrupt budgets severely

• Syllabus link

  • 2.1.4 Planning (business plans, cash-flow)

  • 2.3.3 Business failure

Assess the significance of production and distribution costs to record labels' long-term profitability

• Pre-release link: Rising interest in vinyl vs. potential plateau in demand

• Syllabus link

  • 2.3.1 Profit (costs vs. revenue)

  • 2.4.3 Stock control (fulfilling vinyl demand)

Assess how HMV’s corporate objectives may conflict with short‑term cost‑cutting measures

• Pre-release link: HMV invests in in‑store events, staff wages, and exclusives

• Syllabus link

  • 3.1.1 Corporate objectives

  • 3.1.2 Porter’s Strategic Matrix / corporate strategy

Assess the extent to which collaborations with sponsors and local communities could help boutique festivals cope with rising operational costs

• Pre-release link: Festivals face growing security fees, artist demands, and logistics bills

• Syllabus link

  • 3.6.1 Causes and effects of change

  • 3.1.2 Ansoff’s Matrix (joint ventures/partnerships)

Assess how understanding viral social media trends could support a UK music retailer to target international audiences online

• Pre-release link: TikTok can spark global interest in local tracks

• Syllabus link

  • 4.3.1 Global marketing strategies

  • 4.2.1 Conditions prompting trade

Assess the potential benefits and drawbacks for UK festivals of partnering with international headliners and sponsors

• Pre-release link:Large festivals in the UK already attract worldwide fans, but cost and complexity rise

• Syllabus link

  • 4.2.4 Reasons for global mergers or joint ventures

  • 4.4.1 Impact of MNCs

Assess how a strong brand identity could help smaller independent record shops to attract customers, despite the popularity of streaming

• Pre-release link: Independent record stores focus on community, hosting live events, and limited-edition vinyl to stand out

• Syllabus link

  • 1.3.2 Branding and promotion (building a brand)

  • 1.1.3 Market positioning (competitive advantage)

Assess the importance of careful budgeting for a small festival like Brackenwood

• Pre-release link: Brackenwood’s budget is affected by last-minute infrastructure changes and tight finances

• Syllabus link

  • 2.2.4 Budgets (purpose and difficulties)

  • 2.5.3 The competitive environment (handling competition on limited resources)

Assess how Lucy Graham’s decision to keep Brackenwood Festival small and community-focused could affect its future success

• Pre-release link: Brackenwood stays local, invests in sustainability, and uses smaller acts instead of big-name headliners

• Syllabus link

  • 3.2.4 Reasons for staying small (flexibility, niche appeal)

  • 3.2.1 Growth objectives (trade‑off between growth and control)

Assess how viral social media trends might help UK artists reach fans in other countries

• Pre-release link: TikTok rapidly boosts songs to global audiences, but popularity can fade quickly

• Syllabus link

  • 4.3.1 Global marketing (using social platforms for international reach)

  • 4.2.1 Conditions that prompt trade (push/pull factors to enter new markets)

Evaluate how HMV could use improved staff training and a broader product range to keep customers loyal in a streaming-led market. Recommend which strategy might most improve long-term sales

• Pre-release link: HMV trains passionate staff, diversifies into merchandise, in-store events, and exclusives

• Syllabus link

  • 1.4.2 Recruitment, selection and training (staff expertise)

  • 1.3.5 Marketing strategy (product ranges for different customers)

Evaluate whether a small festival like Brackenwood should rely on external finance (e.g., bank loans or sponsors) to grow. In your answer, recommend the best funding approach to keep Brackenwood competitive

• Pre-release link: Brackenwood started via crowdfunding and local sponsorships but faces limited cash flow and higher costs

• Syllabus link

  • 2.1.2 Raising finance (sources of external finance)

  • 2.1.4 Planning (importance of a clear business plan for expansion)

Evaluate whether a boutique festival like Brackenwood should adopt cost leadership or differentiation (Porter’s Strategic Matrix) to remain competitive. In your answer, recommend which strategic approach is likely to bring Brackenwood the greatest long-term success

• Pre-release link: Brackenwood is small, niche, and eco-friendly but faces higher costs and strong rivals

• Syllabus link

  • 3.1.2 Theories of corporate strategy (Porter’s Strategic Matrix)

  • 3.2.4 Reasons for staying small (USP, flexibility)

Evaluate whether UK record retailers should sell vinyl abroad through international distribution partnerships or open a small chain of physical stores overseas to capitalise on the global vinyl boom. In your answer, recommend which of these two strategies is more likely to succeed in boosting brand awareness and profits abroad

• Pre-release link: Vinyl demand is growing worldwide; UK retailers such as HMV or independents could expand by partnering with foreign distributors or launching stores abroad

• Syllabus link

  • 4.2.5 Global competitiveness (differentiation vs. cost challenges, skill availability)

  • 4.2.2 Assessment of a country as a market (ease of doing business, infrastructure, local demand)