Practice Questions (Edexcel A Level Business): Revision Note

Assess two ways confectionery and biscuit businesses could use branding to compete effectively in the UK market

• Pre-release link: The UK confectionery and biscuits market is highly competitive, with strong branded products competing against cheaper supermarket own-label alternatives

• Syllabus link

  • 1.3.2 Branding and promotion

  • 1.3.5 Marketing strategy

Assess how Hill Biscuits could use its brand to compete more effectively with supermarket own-label biscuits

• Pre release link: Hill Biscuits operates mainly in the mid-priced segment of the market and faces strong competition from supermarket own-label products

• Syllabus link

  • 1.1.3 Market positioning

  • 1.3.2 Branding and promotion

Assess the importance of controlling production costs for businesses operating in the UK confectionery and biscuits market

• Pre-release link: Rising cocoa, energy and packaging costs have increased pressure on manufacturers’ profit margins across the industry

• Syllabus link

  • 2.4.1 Production, productivity, efficiency (cost control)

  • 2.2.4 Budgets

Assess the importance of controlling labour and production costs for Hill Biscuits

• Pre-release link: Hill Biscuits uses labour-intensive production methods and has experienced rising wage and energy costs

• Syllabus link

  • 2.4.1 Production, productivity and efficiency

  • 2.4.2 Capacity utilisation

Assess how innovation could help businesses in the UK confectionery and biscuits market remain competitive

• Pre-release link: Some confectionery firms have introduced new flavours, reformulated products or launched premium ranges in response to changing consumer preferences

• Syllabus link

  • 3.1.2 Theories of corporate strategy (diversification)

  • 3.5 Assessing competitiveness

Assess how investing in new production technology could support Hill Biscuits’ long-term objectives

• Pre-release link: Hill Biscuits is considering investing in a semi-automated packaging line to improve productivity and reduce costs

• Syllabus link

  • 3.1.1 Corporate objectives

  • 3.3.1 Business growth

Assess the impact of global supply chains on businesses in the UK confectionery and biscuits market

• Pre-release link: Many UK confectionery manufacturers rely on globally sourced ingredients such as cocoa and sugar

• Syllabus link

  • 4.2.1 Conditions prompting trade (pull factors)

  • 4.1.2 International trade and business growth

Assess how global factors could affect Hill Biscuits’ costs and competitiveness

• Pre-release link: Hill Biscuits is affected by changes in ingredient prices, exchange rates and international supply conditions

• Syllabus link

  • 4.1.3 Factors contributing to increased globalisation

  • 4.4.1 Impact of MNCs (global competition)

Assess the importance of market segmentation for businesses operating in the UK confectionery and biscuits market

• Pre-release link: The market includes value-focused consumers as well as those willing to pay more for premium or innovative products

• Syllabus link

  • 1.1.4 Market segmentation

  • 1.3.5 Marketing strategy

Assess how Hill Biscuits’ approach to recruitment and training could affect its performance

• Pre-release link: Hill Biscuits relies on consistent quality and efficient production to meet retailer expectations

• Syllabus link

  • 1.4.2 Recruitment, selection and training

  • 1.4.3 Organisational design

Assess the importance of capacity utilisation for businesses in the UK confectionery and biscuits market

• Pre-release link: Demand for confectionery and biscuits can vary due to seasonal peaks and changing consumer behaviour

• Syllabus link

  • 2.4.2 Capacity utilisation

  • 2.4.1 Production, productivity and efficiency

Assess how poor stock management could affect Hill Biscuits’ costs and reputation

• Pre-release link: Biscuits have limited shelf lives and are often produced in large batches

• Syllabus link

  • 2.4.3 Stock control

  • 2.5.1 Managing quality

Assess how competitive pressure from supermarket own-label products could influence strategic decisions in the UK confectionery and biscuits market

• Pre-release link: Own-label products are often sold at lower prices and have increased their market share

• Syllabus link

  • 3.1.1 Corporate objectives

  • 3.5 Assessing competitiveness

Assess the importance of staying competitive rather than maximising short-term profit for Hill Biscuits

• Pre-release link: Hill Biscuits operates in a highly competitive market with strong retailer bargaining power

• Syllabus link

  • 3.1.1 Corporate objectives

  • 3.2.1 Growth objectives

Assess how changes in global consumer trends could affect businesses in the UK confectionery and biscuits market

• Pre-release link: Trends such as premiumisation and interest in global flavours can influence demand

• Syllabus link

  • 4.3.1 Global marketing strategies

  • 4.1.3 Factors contributing to increased globalisation

Assess the importance of ethical sourcing for Hill Biscuits when competing in the UK market

• Pre-release link: Consumers and retailers increasingly expect food manufacturers to demonstrate ethical and sustainable sourcing

• Syllabus link

  • 4.4.2 Ethical and environmental considerations

  • 1.3.2 Branding and promotion

Assess the factors that may influence consumer demand for confectionery and biscuits in the UK

• Pre-release link: Demand for confectionery and biscuits is affected by changes in income levels, health concerns and consumer attitudes towards premium and value products

• Syllabus link

  • 1.1.2 Market demand

Assess how changes in consumer tastes could affect Hill Biscuits’ marketing decisions

• Pre-release link: Hill Biscuits operates mainly in the mid-priced segment of the market and faces changing consumer preferences

• Syllabus link

  • 1.3.5 Marketing strategy

  • 1.1.2 Market demand

Assess the importance of productivity for businesses operating in the UK confectionery and biscuits market

• Pre-release link: Manufacturers face rising costs and competitive pressure, making efficiency and output per worker increasingly important

• Syllabus link

  • 2.4.1 Production, productivity and efficiency

Assess how quality management could affect Hill Biscuits’ competitiveness

• Pre-release link: Hill Biscuits supplies major retailers, where consistent quality is essential for maintaining contracts and reputation

• Syllabus link

  • 2.5.1 Managing quality

  • 3.5 Assessing competitiveness

Assess the factors that may influence the level of competition in the UK confectionery and biscuits market

• Pre-release link: The market includes multinational brands, mid-sized manufacturers and supermarket own-label products

• Syllabus link

  • 3.1.3 Competitive environment

Assess the risks Hill Biscuits may face when competing with larger confectionery manufacturers

• Pre-release link: Hill Biscuits has less bargaining power than multinational competitors but operates in the same retail channels

• Syllabus link

  • 3.1.3 Competitive environment

  • 3.1.1 Corporate objectives

Assess how changes in global economic conditions could affect businesses in the UK confectionery and biscuits market

• Pre-release link: Global inflation, exchange rate movements and climate-related disruption can affect costs and demand

• Syllabus link

  • 4.1.1 Globalisation

  • 4.1.3 Factors contributing to increased globalisation

Assess the impact of exchange rate movements on Hill Biscuits’ costs and competitiveness

• Pre-release link: Hill Biscuits relies on some imported ingredients and packaging materials priced in foreign currencies

• Syllabus link

  • 4.2.3 Exchange rates

Some managers believe that, in the UK confectionery and biscuits market, businesses should focus mainly on meeting changing consumer preferences to remain competitive. Other managers argue that strong branding and reputation are more important.

Using the data in Extracts A to D, evaluate these two views and recommend which approach is more important for businesses operating in the UK confectionery and biscuits market

• Pre-release link: Consumer behaviour in the confectionery market is influenced by health concerns, premium trends and social media, while strong brands continue to compete with supermarket own-label products

• Syllabus link

  • 1.1.2 Market demand

  • 1.1.5 Consumer behaviour

  • 1.3.2 Branding and promotion

Some managers at Hill Biscuits believe that improving marketing and brand awareness should be the main priority. Other managers believe that investing in people and skills would be more effective in improving performance.

Using the data in Extracts E to H, evaluate these two approaches and recommend which Hill Biscuits should prioritise

• Pre-release link: Hill Biscuits operates in a competitive mid-priced segment and relies on both efficient production and strong retailer relationships

• Syllabus link

  • 1.3.5 Marketing strategy

  • 1.4.2 Recruitment, selection and training

  • 1.4.4 Motivation in theory and practice

  • 3.1.1 Corporate objectives

In the UK confectionery and biscuits market, some businesses aim to improve performance by reducing costs and increasing efficiency. Others focus on improving quality and reliability to gain a competitive advantage.

Using the data in Extracts A to D, evaluate these two approaches and recommend which is likely to be more effective for businesses in this market

• Pre-release link: Rising input costs and intense competition have increased pressure on manufacturers to manage operations effectively

• Syllabus link

  • 2.4.1 Production, productivity and efficiency

  • 2.5.1 Managing quality

  • 2.2.4 Budgets

  • 3.5 Assessing competitiveness

Hill Biscuits is facing rising costs and strong competition from supermarket own-label products.

Using the data in Extracts E to H, evaluate how effectively Hill Biscuits is managing its business activities and recommend how the business could improve its performance

• Pre-release link: Hill Biscuits uses labour-intensive production methods and supplies major retailers that expect consistent quality and competitive pricing

• Syllabus link

  • 2.4.1 Production, productivity and efficiency

  • 2.4.3 Stock control

  • 2.5.1 Managing quality

  • 3.1.1 Corporate objectives

Some businesses in the UK confectionery and biscuits market aim to remain small and flexible, while others aim to grow and increase market share.

Using the data in Extracts A to D, evaluate these two strategic approaches and recommend which is more appropriate for businesses operating in this market

• Pre-release link: The market includes large multinational firms, mid-sized manufacturers and supermarket own-label producers, all operating under different cost and risk conditions

• Syllabus link

  • 3.1.1 Corporate objectives

  • 3.2.1 Growth objectives

  • 3.2.4 Reasons for staying small

  • 3.5 Assessing competitiveness

Hill Biscuits is considering investing in a semi-automated packaging line.

Using the data in Extracts E to H, Payback and Net Present Value (NPV) investment appraisal methods, evaluate whether Hill Biscuits should go ahead with the investment and recommend what the business should do

• Pre-release link: The proposed investment involves high initial costs but could reduce labour costs and improve productivity over time; investment appraisal data

• Syllabus link

  • 3.3.2 Investment appraisal

  • 3.1.1 Corporate objectives

  • 3.5 Assessing competitiveness

  • 2.4.1 Production, productivity and efficiency

Some managers believe that global factors such as climate change, international trends and global competition have become the most important influence on businesses in the UK confectionery and biscuits market. Others believe that domestic factors, such as competition from own-label products, remain more important.

Using the data in Extracts A to D, evaluate these views and recommend which has the greater impact on businesses in this market

• Pre-release link: UK confectionery manufacturers are affected by global supply conditions but also face strong domestic competition and regulation

• Syllabus link

  • 4.1.1 Globalisation

  • 4.1.3 Factors contributing to increased globalisation

  • 4.4.1 Impact of MNCs and global competition

Hill Biscuits operates in a globalised business environment but mainly sells within the UK.

Using the data in Extracts E to H, evaluate how global factors could affect Hill Biscuits’ future competitiveness and recommend how the business should respond

• Pre-release link: Hill Biscuits is exposed to changes in global ingredient prices, exchange rates and international competition, despite being a UK-focused business

• Syllabus link

  • 4.2.3 Exchange rates

  • 4.4.1 Impact of MNCs and global competition