Exam code: 9BS0
Read the following extracts (A to C) (opens in a new tab) before answering
Explain one reason why music streaming companies such as Apple Music may choose to further expand their global market share by introducing services in Asia
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Read the following extracts (E to G) (opens in a new tab) before answering
Explain one reason why Haier has been able to achieve growth in the mass markets of the United States, Europe and Japan.
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Read the following extracts (D to G) (opens in a new tab) before answering
Explain one feature of the Brazilian market that makes it attractive to fast food multinationals
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Read the following extracts (A to D) (opens in a new tab) (opens in a new tab)before answering
Explain one factor the owners of Mumtaz may need to consider when selecting a suitable Asian country in which to locate its new production facility
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Read the following extracts (D to G) (opens in a new tab) before answering
Explain one reason for Ford's decision to enter into a joint venture with Mahindra to develop its new SUV for the Indian market
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Read the following extracts (D to G) (opens in a new tab) before answering
Using the data from Extract F, assess the impact of the exchange rate movements between January 2019 and April 2019 on the total costs of a business, such as Tropicana, which imports to the USA from Brazil
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Read the following extracts (A to D) (opens in a new tab) before answering
Using Extract A, assess two likely reasons why US fast food companies such as McDonald’s choose to locate restaurants in the UK
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Read the following extracts (E to G) (opens in a new tab) before answering
Assess the likely impact on Ebac Ltd of choosing the UK as a production location
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Read the following extracts (A to D) (opens in a new tab) before answering
Assess the factors that might affect the success of a global business such as Disney when entering a new market such as China
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Read the following extracts (D to G) (opens in a new tab) before answering
Assess the likely consequences for Ford of its joint venture with Mahindra
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Read the following extracts (A to D) (opens in a new tab) before answering
Using the data in Extracts B and C, assess the extent to which saturated markets might stimulate a business such as Netflix to trade internationally
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Read the following extracts (E to G) (opens in a new tab) before answering
Assess the likely impact on a business such as Pfizer, of a global merger with a business such as Allergan
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Read the following extracts (E to H) (opens in a new tab) before answering
When choosing to expand overseas, there are a number of factors that may limit the success of this strategy
Assess the likely importance of these factors to Pure Gym’s expansion into emerging markets, such as those in Asia, South America or Africa
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Read the following extracts (A to D) (opens in a new tab) before answering
Assess the factors that may have led to Birmingham, UK being chosen as the location for the 2022 Commonwealth Games.
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Read Extracts D to G (opens in a new tab)before answering
Using the data in Extract F, assess Sony’s decision to manufacture the PlayStation 5 in Japan.
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Read the following extracts (E to G) (opens in a new tab) before answering
The government of Ireland supports the location of multinationals, such as Pfizer, in their country if this benefits the local and national economy overall
Evaluate the likely impacts on the Irish economy of Pfizer locating there and recommend if the Irish government should have supported this decision or not
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Read the following extracts (A to D) (opens in a new tab) before answering
Using the data in Extract D and your own knowledge of business, evaluate and recommend whether Mindful Chef should seek a joint venture with Auchan, France or seek a global merger with companies such as Blue Apron, US
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Read extracts A to H before answering questions
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 in 2020 and is forecast to reach $150.6bn 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.
PulseTech plc must decide how to meet forecast growth in demand for its products.
Evaluate the two options of:
expanding its existing factory, or
outsourcing production to a specialist manufacturer.
Recommend which option PulseTech plc should choose to support its long-term strategy.
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