14 marks
Read the following extracts (A to D) (opens in a new tab) before answering
Explain one likely impact on Shanghai Disney of an increase in the intensity of competition from Chinese rivals
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External Influences (Edexcel A Level Business): Exam Questions
Exam code: 9BS0
4 hours26 questions
24 marks
Read the following extracts (A to D) (opens in a new tab) before answering
Explain one way in which demand for Tesco's range of ready meals may be affected as a result of increased inflation between 2016 and 2020
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34 marks
Read the following extracts (A to D) (opens in a new tab) before answering
Explain one way Morrisons may choose to respond to increased price competition from budget rivals such as Aldi
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44 marks
Read the following extracts (E to H) (opens in a new tab) before answering
Explain one long-term implication for VW's financial success of breaching vehicle emissions laws
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54 marks
Read the following extracts (D to G) (opens in a new tab) before answering
Explain one benefit to Sports Direct of reviewing its Human Resources strategies to meet its legal obligations at its Shirebrook warehouse
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64 marks
Read the following extracts (D to G) (opens in a new tab) before answering
Explain one drawback of fluctuating exchange rates between the US dollar and Brazilian Real for Taco Bell
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74 marks
Extract D
Nimbus Sports Equipment plc
Nimbus Sports Equipment plc is a UK-based manufacturer of specialist running shoes. The business designs and produces performance footwear for endurance runners and sells its products in the UK and a range of international markets. Nimbus positions itself as a premium, performance-focused brand, competing on quality, innovation and technical design rather than low prices.
Nimbus currently sells the same core running shoe design in all markets but adapts colours and sizing to reflect local preferences. Senior managers are considering whether to move towards a more standardised global product strategy in order to reduce production and design costs.
However, there are concerns that a fully standardised product may fail to meet local customer preferences in some international markets. Nimbus's managers must decide whether the potential cost savings from standardisation outweigh the risk of reduced customer satisfaction.
Extract E
Selling Nimbus products online
Nimbus sells its products through specialist sports retailers and via its own online sales platform. Online sales have grown rapidly in recent years, particularly in international markets where Nimbus does not have a strong retail presence.
The business believes that its online platform allows it to reach niche groups of endurance runners worldwide. However, selling footwear online can increase delivery and returns costs, particularly when customers order multiple sizes.
Extract F
Global competition in the running footwear market
The global market for running footwear is highly competitive. Large multinational brands compete aggressively on innovation, marketing and sponsorship of elite athletes. Consumers are often willing to switch brands if performance, comfort or value for money improves.
Nimbus's senior managers believe that long-term success in global markets will depend on balancing cost efficiency with the ability to meet the needs of different customer groups.
Explain one impact on Nimbus Sports Equipment plc of intense competition in the global running footwear market.
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84 marks
Extract D
Penrose Hotels Ltd
Penrose Hotels Ltd runs four hotels on the Cornish coast. Around 70% of its bookings are made by UK holidaymakers between June and September.
In January 2026 the business must decide whether to commit £1.9m to converting a disused barn at its largest site into 14 extra bedrooms. The work would take nine months.
Forecasters disagree sharply about the year ahead. One group expects UK household incomes to rise by 2%; another expects a mild recession. Energy prices, which cost Penrose £310,000 last year, could move in either direction depending on events overseas.
Managing Director Ines Carrow has delayed the decision twice. She has instead spent £40,000 refurbishing existing rooms, which can be stopped at any point.
Ines said: "I am not worried about a downturn. I can plan for a downturn. I am worried about not knowing."
Using Extract D, explain one way in which economic uncertainty is affecting decision-making at Penrose Hotels Ltd
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94 marks
Extract A
Ravensdale Care Homes Ltd
Ravensdale Care Homes Ltd operates six residential care homes in Lincolnshire. It plans to borrow £2,400,000 to build a seventh home.
The business has been offered a variable rate loan. Interest is charged on the full amount borrowed each year.
Ravensdale made an operating profit of £486,000 in 2025.
Using the data in Extract A, calculate the increase in Ravensdale Care Homes Ltd's annual interest cost on the £2,400,000 loan if the 2026 forecast is correct. You are advised to show your working
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104 marks
Extract B
Selby Scaffolding Ltd
Selby Scaffolding Ltd erects scaffolding for construction sites across Yorkshire. It employs 34 scaffolders.
New health and safety regulations introduced in 2025 require every scaffolder to renew their certificate every two years rather than every five, and require a supervisor to inspect each structure before it is used.
Selby has spent £61,000 on retraining and now employs two full-time inspectors. Jobs take on average half a day longer to complete.
Since the changes, Selby's reportable accident rate has fallen from nine per year to two. Two large construction firms have added Selby to their approved supplier lists, saying its safety record was the deciding factor.
Owner Dermot Fahy said: "It cost me a fortune and it won me the two biggest customers I have."
Using Extract B, explain one benefit to Selby Scaffolding Ltd of complying with the new health and safety legislation
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112 marks
Read the following extracts (A to D) (opens in a new tab) before answering
Assess the extent to which movements in exchange rates might influence the holiday choices of UK consumers
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210 marks
Read the following extracts (E to H) (opens in a new tab) before answering
Using the data in Extract G and your own business knowledge, assess the likely effects of the changes in interest rates between 2019 and 2021 on Buy it Direct
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38 marks
Read the following extracts (E to H) (opens in a new tab) before answering
Assess two likely effects of consumer protection legislation on a business, such as Ryanair
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410 marks
Read the following extracts (E to H) (opens in a new tab) before answering
Assess the likely effects of employee legislation on a business such as VW
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510 marks
Read the following extracts (A to D) (opens in a new tab) before answering
Assess the likely effects on a business, such as Morrisons, of a more competitive environment
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612 marks
Read the following extracts (A to D) (opens in a new tab) before answering
Assess whether the transformational leadership shown by David Potts is the main cause of Morrisons’ improved performance
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712 marks
Read the following extracts (A to D) (opens in a new tab) before answering
Using the data in Extracts B and C, assess the likely effects of decreases in UK corporation tax rates in March 2020 on UK restaurants chains, such as Jamie Oliver’s.
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812 marks
Read the following extracts (A to D) (opens in a new tab) before answering
Using the data in Extract C, assess the likely impact of the forecast changes in the UK economy on a business such as Mumtaz
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912 marks
Read Extracts A to D (opens in a new tab) before answering
Using the data in Extract C, assess the effect on Brompton’s sales of the change in the US dollar to the £, between April 2020 and April 2021.
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1010 marks
Read Extracts E to H (opens in a new tab) before answering
Assess one likely effect of consumer protection legislation on Peloton.
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1112 marks
Read Extracts D to H (opens in a new tab) before answering
Using the data in Extracts F and G, assess the likely impact of movements in the UK exchange rate to German Automotive’s (GA) profit.
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1210 marks
Read extracts E to H before answering
Tesco imports Nivea products that are manufactured in Germany.
Using the data in Extract G, and any other relevant information, assess the effect on Tesco of the change in the £ exchange rate from August to December 2024.
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1312 marks
Read extracts A to D before answering
Assess the likely effects on Stylideas Ltd of changes in the UK business cycle.
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120 marks
Read the following extracts (A to D) (opens in a new tab) before answering
ITV could either join forces with the UK’s other public broadcasters or operate on its own to offer a viable rival to Netflix for UK consumers
Using the data in Extracts A to D and your own business knowledge, evaluate these two options and recommend which one ITV should use to best rival Netflix
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220 marks
Read the following extracts (A to D) (opens in a new tab) before answering
Mumtaz's owners are concerned about the impact of forecast changes in the UK economy on its profitability. They are considering either finding cheaper suppliers for key ready meal ingredients or increasing selling prices by 10%
Evaluate these two options and recommend which one would be most appropriate for Mumtaz to maintain its level of profitability.
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320 marks
Extract A
Ardwick Snacks Ltd
Ardwick Snacks Ltd makes crisps and savoury snacks at a factory in Greater Manchester. It produces 78 million packets a year, sold through supermarkets and convenience stores under its own brand and as supermarket own-label.
Its packets use a multi-layer foil-and-plastic film that keeps the product fresh for 26 weeks but cannot currently be recycled in UK household collections.
Under government proposals, a new packaging levy would charge producers £0.011 for every packet of non-recyclable packaging placed on the UK market from April 2028.
Managing Director Ines Radcliffe said: "Just over a penny sounds like nothing until you multiply it by seventy-eight million."
Extract B
Ardwick Snacks Ltd - key figures
Extract C
The two options
Option 1 - switch to recyclable packaging. A £2.1m investment in new sealing equipment would allow Ardwick to use a recyclable paper-based film, avoiding the levy entirely. The new film costs £0.009 more per packet and adds £210,000 a year in fixed costs. It reduces shelf life from 26 weeks to 14 weeks. The changeover would take 14 months.
Option 2 - keep the current packaging and pay the levy. No capital investment is required. Ardwick would pay £0.011 per packet from April 2028.
Extract D
Ardwick's customers and finances
Two of Ardwick's three largest supermarket customers have published targets to remove non-recyclable packaging from own-label products by 2029.
Supermarket distribution requires a minimum of 12 weeks' remaining shelf life on delivery.
Industry research found that 61% of shoppers say recyclability influences their choice of snack brand, and 12% say it is the deciding factor.
Ardwick holds £640,000 in cash. Interest rates on business loans have risen twice in the past year.
Ardwick Snacks Ltd must respond to the new packaging levy. It is considering either switching to recyclable packaging or keeping its current packaging and paying the levy.
Evaluate these two options and recommend which one Ardwick Snacks Ltd should choose
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