Exam code: 9BS0
Read the following extracts (D to G) (opens in a new tab) before answering
Following changes to working practices in its distribution facilities, Sports Direct reported significant improvements in labour retention and lower levels of absenteeism in 2018
Using information in Extract G, explain one impact of improved Human Resources performance on Sports Direct's competitiveness.
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Read the following extracts (D to G) (opens in a new tab) before answering
In 2019 Sports Direct reported that sales revenue had increased to £3,701.9m. Its cost of sales amounted to £2,118.4m with selling, distribution and administrative expenses of £1,413.8m
Calculate the percentage difference in Sports Direct's gross profit margin between 2018 and 2019.
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Read the following extracts (A to C) (opens in a new tab) before answering
Bon Bon's opened its distribution facility in Ripon in 2018. Mark Rowntree has experienced some difficulties in accurately measuring and monitoring labour productivity at the facility and is concerned that workers are being considered less efficient than those at the packing facility in York
Explain one method Mark Rowntree could use to measure labour productivity at the Ripon distribution facility.
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Read the following extracts (E to G) (opens in a new tab) before answering
In 2014 Pfizer achieved a Return on Capital Employed of 5.70%
Using the data in Extract E, calculate Pfizer's value of capital employed in 2014.
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Read the following extracts (A to C) (opens in a new tab) before answering
Explain one drawback to Aldi of using empowerment strategies to reduce high levels of absenteeism in its stores.
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Read the following extracts (A to D) (opens in a new tab) before answering
Using the data from Extract A, calculate the difference in the gearing ratio for easyJet plc between 2019 and 2020. You should state the difference to two decimal places. You are advised to show your working.
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Extract B
Employment and productivity at Aurelia Kitchens Ltd
Aurelia's managers are reviewing labour productivity and unit costs. Some experienced workers have raised concerns that recent recruitment has reduced average skill levels on the factory floor, increasing the need for supervision and training.
Using the data in Extract B, calculate the change in labour productivity of Aurelia Kitchens Ltd between 2021 and 2022.
You are advised to show your working.
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Extract E
Beiersdorf
Beiersdorf is a German multinational company that manufactures personal-care products. It employs 20,000 people in more than 160 countries. It is a public limited company (plc), but is controlled by the German businessman Michael Herz, who owns 50.49% of the shares. The company's headquarters and manufacturing centre is in Hamburg, Germany. This factory supplies businesses, such as Tesco, in its UK and European markets.
Beiersdorf's best-selling skincare brand is Nivea. The Nivea brand benefits from high levels of consumer trust based on quality products. Beiersdorf has built on this by launching several new Nivea skin care products. Nivea is a global brand with consistent names, products and packaging.
(Source: adapted from https://www.beiersdorf.com/about-us/beiersdorf-global)
Extract F
The UK Men's Skincare Market
Explain one reason why quality is a source of competitive advantage for Nivea.
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Extract D
Bardsley Engineering Ltd
Bardsley Engineering Ltd is considering acquiring Tyne Valley Seals Ltd, a smaller manufacturer of industrial seals. Bardsley's accountant has calculated ratios from Tyne Valley's published accounts for the year ended 31 December 2025:
The accounts cover one year only. Since they were published, Tyne Valley has lost its largest customer, which provided 38% of its revenue, and its two most experienced engineers have retired.
Finance Director Nia Ashworth said: "The ratios look excellent. They also describe a company that no longer exists."
Using Extract D, explain one limitation of using ratio analysis to assess Tyne Valley Seals Ltd
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Extract A
Marchfield Catering Ltd
Marchfield Catering Ltd provides catering to schools, hospitals and office canteens across the East Midlands. Most of its staff work part-time.
Staffing data for the year ended 31 August 2026:
The contract catering industry has an average labour turnover of 27%.
HR Manager Joseph Vann has been asked to report the company's figure to the board.
Using the data in Extract A, calculate Marchfield Catering Ltd's labour turnover for the year ended 31 August 2026. You are advised to show your working
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Read the following extracts (E to H) (opens in a new tab) before answering
Assess two reasons why The Gym Group's financial performance has improved between 2014 and 2015.
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Read the following extracts (A to D) (opens in a new tab) before answering
Use the information in Extracts A to D to assess Morrisons’ financial performance in 2015.
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Extract E
PulseTech plc
PulseTech plc is a UK-based public limited company that designs and sells wearable technology products, including fitness trackers and smart health monitors. Its products are sold online and through electronics retailers in the UK, Europe and North America.
PulseTech's strategy focuses on innovation and data analytics. Its products allow users to track physical activity, sleep patterns and heart rate. The business invests heavily in research and development (R&D) to differentiate its products and maintain a competitive advantage.
Extract F
PulseTech plc – selected financial information (2023)
PulseTech's directors are under pressure from shareholders to improve profitability, following a slowdown in revenue growth during 2023.
Extract G
Production capacity and outsourcing
PulseTech currently assembles its products at a factory in Eastern Europe. The factory is operating at 92% capacity utilisation.
Demand forecasts suggest that sales could increase by up to 30% over the next two years if PulseTech launches a new health-monitoring device. To meet this demand, PulseTech is considering two options:
Expanding its existing factory
Outsourcing production to a specialist electronics manufacturer in Asia
Outsourcing would reduce PulseTech's control over production but could lower unit costs.
Extract H
The global wearable technology market
The global wearable technology market has grown rapidly over the past decade. The market was valued at 61.3bn US dollars in 2020 and is forecast to reach 150.6bn US dollars by 2030, representing strong long-term growth.
Growth is driven by increased health awareness, advances in sensor technology and the integration of wearable devices with smartphones and health apps.
However, the market is characterised by:
Rapid technological change
Short product life cycles
High levels of research and development spending
PulseTech's senior managers must decide how best to position the business to benefit from future market growth.
Using the data in Extract F, assess PulseTech plc's financial performance in 2023.
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Extract A
Stylideas Ltd
In 2011, Tom Pellereau became Lord Sugar's first Apprentice winner. Alan Sugar, a business angel, invested £250 000 in Tom Pellereau's business idea. The company is owned by Tom Pellereau and Sir Alan Sugar, with 50% of the shares each.
Stylideas Ltd produces and sells a range of luxury cosmetic products for the health and beauty market. These include a variety of products for skincare, nailcare and teeth whitening.
Stylideas Ltd has enjoyed rapid success since its formation. Its sales turnover in 2024 was more than £5 million. The company now employs 14 staff.
(Source: adapted from https://www.thesun.co.uk)
Extract B
Selected financial information from Stylideas Ltd Statement of Financial Position 2024
(Source: adapted from https://find-and-update.company-information.service.gov.uk/company/07746771/filing-history)
Extract C
Tom Pellereau
Tom Pellereau is the Chief Executive Officer (CEO) and Innovations Director of Stylideas Ltd. It has employees who work in specific functions, such as marketing, operations and finance, which allows Stylideas to adopt a role culture.
His beauty brand Stylideas has flourished with several market-leading products. Its most successful being the makeup brush cleaner and dryer, which retails for £29.99. ‘We've now sold over 2 million of those,’ says Tom. ‘As a result, I can now have a sales director, an operations director, and a marketing team, so I can focus on what I do best, which is innovation.’
In 2023, the business won Gold for the Business Innovation Award at the London Business Awards for small and medium businesses. Its LED face mask was a 2024 Beauty Awards winner.
New products include a £54.99 beauty fridge that is selling at a rate of 250 units a week, anti-wrinkle and anti-ageing devices, innovative mirrors and sustainable makeup products like reusable cotton pads that can go in the washing machine.
As well as selling its products directly from its website, Stylideas Ltd supplies retailers such as Boots, Superdrug and Amazon. Most of the company's sales are in the UK, but it also distributes its products in France, Germany and Italy.
(Source: adapted from https://stylpro.co.uk/)
Extract D
Growth in the UK economy
The UK economy unexpectedly picked up in late 2024, where GDP grew by 0.9% compared to 0.4% in 2023. The growth reflected a strong performance by the UK’s large service sector, the Office for National Statistics said.
“A pleasant surprise, but we’re not out of the woods yet. Beneath the surface of these latest figures, consumer demand and business investment were weaker than expected,” said Scott Gardner, an investment strategist.
The UK was the best performing major European economy, with Germany, France and Italy facing recession. But the UK trailed behind the United States, which saw 2.3% growth.
At the end of 2024, the Bank of England halved its forecast for growth in 2025 to 0.75%, although other forecasters, such as the National Institute of Economic and Social Research, were more optimistic about future growth.
(Source: adapted from https://www.msn.com/en-gb/money/economy/)
Assess whether Stylideas Ltd's distinctive capability of innovation is the main reason for its success.
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Extract D
The End of the Road festival
The End of the Road festival is an annual music festival in England which focuses on independent rock and folk music.
Every time its founder, Simon Taffe went to a music festival, he thought: “I could do this.” He went home and spent two weeks doing research, calling security firms and portable toilet companies.
The venues Simon contacted all said they wouldn’t let him hold a festival. The only place agreed was the village of Larmer Tree on the border of Wiltshire and Dorset.
The first End of the Road festival was in September 2006 and cost £150,000. He sold his house to cover some of the cost and the rest came from loans. In the April of 2006, ticket sales were slow; no matter how much was put into advertising, sales did not grow. Simon realised then that he was going to lose a lot of money. He hired a van and drove around the country, dropping leaflets at any festival he could find.
The first festival made a loss of £35,000. Simon was 25 and still had his decorating business. The second year, the festival made a loss of £50,000. By the fourth year, the festival had just about become profitable.
In 2024, 15,000 people attended the End of the Road festival set in fields, woodland and Victorian gardens, and had six stages.
(Source: adapted from https://www.theguardian.com/lifeandstyle and https://en.wikipedia.org/wiki/End_of_the_Road_Festival)
Extract E
End of the Road festival – environmental and charity initiatives
FreeFill is a reusable Cup Scheme which charges festivalgoers £1 per cup to reduce single-use plastic consumption. The reusable aspect of this scheme has also helped End of The Road in reducing recyclable waste. The End of The Road donates some of its income to fund various clean water projects across the globe.
The End of the Road festival promotes War Child, a charity which aims to secure a safe future for every child affected by war, and supports it financially. War Child works with local communities and governments to help protect and educate children and support them to heal and learn.
(Source: adapted from https://endoftheroadfestival.com/environmental-initiatives/)
Extract F
UK music festivals
The Leeds and Reading festivals attract almost 200,000 fans between them. Smaller UK festivals sell between 5,000 and 20,000 tickets, and have experienced many problems including competition, and rising costs.
192 out of 600 operating in 2019 have closed. The Secret Garden Party in Cambridgeshire closed and symbolically burned down its main stage at the end of July 2024. Founder Freddie Fellowes said: “It’s no longer sustainable for independents to run festivals. The difficulty is that if you put your ticket price out early, you commit to a price and a budget. That is a huge risk. Profit margins are incredibly tight.”
However, The Green Man festival, in south Wales, sold out in just two hours in 2025, and the Lake District’s Kendal Calling has seen record ticket sales for August 2025. A general boom in summer events indicates that consumers are willing to spend money on memorable experiences.
Sponsorship is also important to festivals. Ticket prices would need to increase without it. Oxfordshire’s Wilderness festival is sponsored by carmaker Audi.
(Source: adapted from https://www.theguardian.com/business/)
Extract G
Selected festival prices and capacities
(Source: adapted from various festival websites)
Assess the likely impact of the competitive environment on the End of the Road festival.
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Read the following extracts (D to G) (opens in a new tab) before answering
Sports Direct aims to reduce the labour turnover of its workforce. To achieve this, it could introduce an employee share ownership scheme or implement an empowerment strategy
Evaluate these two options and recommend which one is most suitable for Sports Direct to achieve its aim of reducing labour turnover.
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Read the following extracts (A to D) (opens in a new tab) before answering
Mindful Chef's owners have set the objective of increasing its operating profit margin. This might be achieved by growing its UK customer base or by entering into a global merger with Blue Apron in the US
Evaluate these two options and recommend which one might be most appropriate for Mindful Chef to increase its operating profit margin.
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Read the following extracts (A to D) (opens in a new tab) before answering
Health and fitness clubs in the UK have high levels of labour turnover. To reduce this, health and fitness chains could offer either better financial rewards or use non-financial techniques to improve employee performance.
Evaluate these two options and recommend which one a health and fitness club, such as Fitness First, should adopt to reduce labour turnover.
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