IGCSEBusinessEdexcelExam Questions1. Business Activity & Influences on BusinessBusiness Objectives

Business Objectives (Edexcel IGCSE Business): Exam Questions

Exam code: 4BS1

1 hour20 questions
Easy
Medium
Hard
1
1 mark

Case Study

TUI is a holiday business that has over 100 years of experience. It offers customers a variety of holidays including staying in hotels, and river and ocean-going cruises. There are many extras that it offers to holiday makers including: car hire, extensions to the holiday and arranging day trips at all its holiday destinations.

The business is well known and flies its customers to over 180 destinations around the world, including Greece, Turkey and Spain. It has 1,600 travel agencies and 27 million customers. Holidays can be booked by visiting a travel agency or online.

TUI has holidays to meet the needs of all its customers: families, children, couples and those with disabilities.

Which one of the following is a non-financial objective?

Select one answer

  • Generating wealth

  • Personal satisfaction

  • Maximising profit

  • Regular income

Choose your answer

2
1 mark

Define the term stakeholder

How did you do?

3
1 mark

Case Study

IKEA is a well-known home furniture retailer with stores throughout the world. It was started in 1943 by Ingvar Kamprad when he was given some money by his father for doing well at school. He wanted to produce furniture at a price that people could afford to buy.

He realised that transporting furniture to customers was difficult as goods were often damaged. He developed flat packs to avoid damage. A flat pack contained all the materials needed to self-assemble a table, a chair or a bed.

All IKEA stores are run as franchises.

Which one of the following is a financial business objective?

Select one answer.

  • Challenge

  • Social objectives

  • Survival

  • Personal satisfaction

Choose your answer

4
1 mark

Case Study

One of IKEA’s aims is to keep up to date with the changes taking place in product design and meeting customers’ needs. To do this it has to introduce new and different products on a regular basis.

State one financial objective IKEA might have.

How did you do?

5
1 mark

Case Study

Kraft Heinz has different functional areas within the business. These functional areas work together to ensure that Kraft Heinz maintains high standards of production with limited waste material.

Kraft Heinz aims to be involved in the local area through various methods such as charity and sporting events.

State one financial objective Kraft Heinz might have.

How did you do?

6
1 mark

Case Study

The Better Toy Store (TBTS) is a children’s toy shop. TBTS has three shops in Singapore. Two of the shops are located in busy shopping malls and the third is located at the Jewel Changi Airport.

TBTS has a website for customers looking to buy toys online. TBTS selects toys to sell that are excellent for play, value, design and quality. All TBTS toys are environmentally friendly.

Which one of the following is a financial aim for a business?

Select one answer.

  • Survival

  • Challenge

  • Social objectives

  • Personal satisfaction

Choose your answer

7
1 mark

Case Study

The LEGO Group is a privately-owned business in Denmark. The business was founded in 1932 by the Kristiansen family. The family still owns it. The name LEGO is an abbreviation of two Danish words, ‘leg godt’ which means ‘play well’. It is now one of the world’s largest manufacturers of toys with 15 factories and over 18,000 employees around the world.

LEGO manufactures toys, games and art materials for boys and girls of all ages, and products from films such as Star Wars and Harry Potter. It believes that children are the role models of the future and playing with LEGO can support children in a developing and complex world.

All 18,000 LEGO employees are full-time

State one financial objective for LEGO

How did you do?

8
1 mark

Case Study

Huawei is a leading global provider of information and communications technology, infrastructure and smart devices. In March 2011, over one million of its C8500 smartphones were sold in China following its launch.

It now manufactures a wide variety of different products including Huawei smartphones, watches and tablets. In recent years Huawei has won many awards. In 2018 it was named the 68th most valuable brand by Best Global Brands. In 2019 it introduced a smartphone which had new photographic technology.

Which one of the following is a financial objective?

Select one answer

  • Personal satisfaction

  • Market share

  • Independence

  • Control

Choose your answer

9
2 marks

Case Study

One of TADS' objectives is to expand by giving lessons for different musical instruments. To do this it will need to analyse its financial position.

Outline one possible financial objective, other than revenue, that TADS might have.

How did you do?

10
2 marks

Case Study

Bella's Bistro is a small café in a busy town centre. Bella, the owner, wants to introduce a wider range of homemade cakes and pastries. To achieve this, she will need to set clear business objectives.

Outline one possible non-financial objective that Bella's Bistro might have.

How did you do?

1
3 marks

Explain one disadvantage for a business that does not achieve its predicted growth.

How did you do?

2
3 marks

Explain one disadvantage for a business that fails to meet its objective of maximising profit.

How did you do?

3
6 marks

Case Study

Tesco is one of the UK's largest supermarket chains, operating over 4,000 stores. In recent years, Tesco has faced increasing competition from discount retailers such as Aldi and Lidl, which offer lower prices. Tesco has set a non-financial objective to improve customer satisfaction ratings.

Analyse the benefits to Tesco of setting non-financial objectives such as improving customer satisfaction.

How did you do?

4
3 marks

Explain one benefit for a business of setting an objective to improve customer satisfaction.

How did you do?

5
6 marks

Case Study

GreenLeaf is a small garden furniture business based in Wales. It started three years ago with just two employees and has grown steadily. The owner, Megan, initially set an objective to survive in the first year, but now wants to focus on increasing market share.

Analyse the reasons why GreenLeaf's business objectives may have changed over time.

How did you do?

6
3 marks

Explain one benefit for a business of setting an ethical objective.

How did you do?

7
6 marks

Case Study

FreshBite is a food delivery business that operates in several cities across the UK. It has recently expanded into two new regions but has found that delivery costs are higher than expected. FreshBite's main financial objective is to increase profit.

Analyse how not achieving its financial objective of increasing profit might affect FreshBite.

How did you do?

1
12 marks

Case Study

As We Grow (AWG) is a clothing business in Iceland. The social objective of the business is to use natural materials, such as wool, and produce environmentally friendly products. It aims to design clothes that will last a long time, to encourage families to buy fewer clothes and reduce waste in society.

AWG’s increasing product range now includes jumpers, dresses, shirts and baby clothes. These are produced in small workshops that employ family and friends. Waste is kept to a minimum and any leftover material is used to make scarves and hats. The business has one store in Iceland. It uses its website to advertise and sell its clothing online to customers in other countries. The business has received the Icelandic Design Award for its contribution to the environment.

AWG’s social objectives include the use of natural materials, being environmentally friendly and reducing waste.

Evaluate the impact on AWG of having these social objectives when planning to grow the business. You should use the information provided as well as your own knowledge of business.

How did you do?

2
9 marks

Case Study

SunnySide Bakery is a small bakery in the town of Whitby, England. It was set up five years ago by Maria, who wanted to sell freshly baked bread and cakes using traditional recipes. The bakery has built a loyal customer base and employs three full-time staff. However, a new supermarket has recently opened nearby, offering cheaper baked goods.

Maria is reviewing the bakery's objectives and is considering two options:

  • Option 1: Set a financial objective to reduce costs in order to lower prices and compete with the supermarket.

  • Option 2: Set a non-financial objective to improve product quality and customer service to differentiate SunnySide from the supermarket.

Justify which one of these two options SunnySide Bakery should choose.

How did you do?

3
9 marks

Case Study

CoastLine Surf School is a small business based in Jeffreys Bay, South Africa. It was set up three years ago by Jake, a former professional surfer, and offers group and private surfing lessons to tourists and locals. The business employs six part-time instructors during the busy summer months. Jake has noticed that some customers have complained about long waiting times for lessons, and that two of his instructors have recently left to work for a rival surf school.

Jake is reviewing the business's non-financial objectives and is considering two options:

  • Option 1: Set an objective to improve customer satisfaction by reducing waiting times and offering a better booking system.

  • Option 2: Set an objective to improve employee retention by offering better pay and training to instructors.

Justify which one of these two options CoastLine Surf School should choose.

How did you do?