External Influences (Edexcel A Level Business): Exam Questions

Exam code: 9BS0

3 hours20 questions
1
4 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

2
4 marks

Read the following extracts (A to D) (opens in a new tab) (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

3
4 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

4
4 marks

Read the following extracts (E to H) (opens in a new tab) (opens in a new tab)before answering 

Explain one long-term implication for VW's financial success of breaching vehicle emissions laws

5
4 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

6
4 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 

7
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4 marks

Read extracts D to F before answering the Question

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.

1
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12 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

2
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10 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

3
8 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

4
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10 marks

Read the following extracts (E to H) (opens in a new tab) (opens in a new tab)before answering 

Assess the likely effects of employee legislation on a business such as VW

5
10 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

6
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12 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

7
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12 marks

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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.

8
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12 marks

Read the following extracts (A to D) (opens in a new tab) (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

9
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12 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.

10
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10 marks

Read Extracts E to H (opens in a new tab)before answering

Assess one likely effect of consumer protection legislation on Peloton.

11
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12 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.

1
20 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

2
20 marks

Read the following extracts (A to D) (opens in a new tab) (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.