tutor2u I

Ghidønł Natıta:
Session
Maximise Marks on the4,
10 and 12 Mark guestions
In thia seaaion we will focus on:
Whiting Winning Paragraphs IThe Importance
of Knowledge and UnderstandingI Writing
Contexlualiæd AnswersI Structuring the 4,10
and 12 Mark questions to Maximiss Marks

0Mr 5,4,3,2,1 qU0Sti0nS ill be SI3oWn.OU sŒ0e‹›.

EdexcelA Level Business Exam Overview
DADER1fTNE@ES1 ANR4l £APERZ(THEMESZAND3)
marketing, peoplu and global Business activities, dccisi0iïs
business ant1 strategy
2 hour written exam 2 hour written exam 2 hour written exam
100 marks 100 marks 00 marks
35% ofA Level 356 ofA Level 30’é ofA Level
Two sections with each section Tw0 sections with eacñ section Two se0ti0ns with each sgcti0n
COflSISlIng Of' COflSÎSfl nQ 0Î: COflSl BflfJg Of:
• 2 x 4 mdrk questions • 2 x 4 mark questions 1 x 8 mark questions
• I x 10 mark question • 1 x 10 mark question 1 x 10 mat question
• 1 x 12 mark question • 1 x 12 mark question 1 x 12 mark question
• 1 x 20 rrark question • 1 x 20 mark question 1 x 20 mark question

Dur second aCtivity will be Shown on screen

many underdeve
 Develeyin8 Ezam 5liills- 8nawleä9e ans Uraerstan6in8
You must be familiar with all key terms, concepts and fom›uIae on the EdacelA Level Business
specification, as secure knowledge and understanding are essential for exam success.
The examiner reports have highlighteda Iacl‹ of knowledge ard understanding of some keyterms and
concepts, suet as:
• Coll rfliSSi0n • Cost ieadersh1p
• Entrepreneurial f0I9S • W0fking Capital
• CSR • Cash fl0w 3fl0 f@t
• FDI • Break-even (formula)
• Supply and demand • Gearing formula) and how to calculate capital eiriployed
Using business terms and concepts can also strengthen your answer and help you demonstrate accurate
and thorough knowledge and understanding.

EäexcclA Level Bvsiaess Canlvsing Pairs

A common mistake that students make is confusing key terrrs an0 concepts. Possible confusing pairs include:
• Mass markets and niche markets • Interest rates and exchange rates
• Pfoöuct orientation and rÏiarket orientati0f\ • stock market Isolation and inventory control
• Pfice elasticity 0f demand and incone elasticity (stock rnanageirient)
of demand • Shareholders and stakeholders
• Certralisati0fl Grid decentralisation •
• Delegation and décentralisation
• Entrepreneurial roles and entrepreneufial
CÏ›üfaCt9fiStiCS
• Qualitative and quantitative daa
• Quality COntrOl ard quülity aGGUrüllC9

When revising,a useful technique to ayoid confusing

key terms and concepts is ’What's The Difference’.
For exemple, uriting down thedifférence between
qualitative and quantitative research, shareholders
and stakeholders or pro0uct orientation and rriarket
0FÎ9fïtôtÏ00.

Develsliin9 Exam Skills - Aaplisatian

Application is all about applying knowledge& un4erstanaing tovartoue biislness contexts and
8lttI8b0IT6.
Application isa crucial exam skill, and the examiner reports frequently st8te that better and stronger
answers areyplfied sy students who demons\rate consistent and impressive use of c0ntext arid that less
effective answers are largely theoretica!.
In this year's examiner reporB, it was high!ighted that some answers were Oescriptive and gerieric and
not applied to the business in questi00 8Fid thata number ofanswers could have üeen aöout any bu9iness.
'lou shoul0 make useof the extracts to write more applies answers.
A helpful technique to help write more contextualised responses is Such As Seasoning.
 Such As Seasoning
Such As Seasoning isa simple but effective techn!que to help you write more coritextuslised answers. Many
S\»d9r/tS USS g9r9?C WO OS ï«&e\f besWeTS,10r 9xa /‹pte, pÏ0düC\s, C0Sts dnä C0rr›peti\0rs. SUCh AS S9üS0riing
i0Y0iV9s contextualising these words by adding ‘such as’ and thena conteNaliS9d eXdrrpl9. ÏÖF OXöITi#Ie:
Grsggs eyeraïes Ina market wlki Icb sï csmpeïlïors, svcM as
suMwzy and c.

Our aCti\/ity Will be shoWrl On sCr0erl

Using data is also an excellent way to Vernons rate the skill of application as effective use of data enables
y0u to write in context

6 EDEXCELA LEVEL BUSINESS GRADE BOOSTER Revisi00 W0@#0g

 gavelaping Exam SBills -I Bark ExMlaln Ouesłlons
4 mark questions only appear on Paper1 and Paper2
The 4 rrarks in the explain questi0nS ăf9 ãll0Cdt9d a8 f0Il0W9:
• 1 mark for knowledge
• 2 mafks forapğIİC8tİ0f\
• 1 mark for analysis
Starting your answer witha definition can help you secure the knowledge marł‹s, although you can secure the
I‹nowIedge marka withouta definition if your answer dem0nStrates pæcise knowledge and understanding.
Then, make anddevelop your point in context.
TO eeCüB theapplİCütİ0ls rrl8rkG y0Ur ünSW9r «»0dS t0OOnØİfl twO di3tİ»ct elerrlent8 0f COI t0Xt/üpplİCzttİ0l II
two relevant/applied examples.
Remember, these ìs Only1 mark for analyele. Do not over analyse and go beyond the scope ofthe question.

Activity 4:4 Mark question

Our extract and question will be shown on screen. The box below can be ueedØ riote down your
thoughts/answer.

aexeloșinMExam Skills- -
Tãe to ana 12 Nark Assess 0vsn:sns
In @I0 Ill ąriğ 12 Mafk ąS86N ğM8StÎ0rlS, COM itłli8t en8Mre
that your ansøeb bałanced and that you providex

ValU0 tO y0Ur łe6p0fiSe and b0 ‹›łOf0 thafI)Msta

summary orrepetltbn of your previous argurnœts.
The examiner rsporB frequently comment that many answers to the
10 arid 12 mark questions lack balance and are often or›e-sided.
The 2023 Paper examiner report highlighted that in Q1b
(a 10 mark question), the supported judgements often added
Itttl8 OF 10 ov8 dll ¥8lü8 1õ tfl8 alsSWeF.
 s aita 2 IïlaFh OtleStiOnS —A PDSSible structure
Take the f0ll0Wing qMeSti0r›:
ASSeSs the lihely effeCt of Bn inCFease ilt iflteFcSt Fat05 CM Alii
One possible way of stwcturing an answer t0 ttlis §u0Sti0n Could be:
•A positive effect of ar› increase in interest rates on Aldi
• A negative effect of an increase in interest rates on Aldi (this provides balance)
• A supp0rted judgement
(Note, the difference betweena 10 mark BSS9SS glJeSti0n and a 12 mark assess question is the words 'wi0e
ranging' in part of be 12 narI‹ level4 descriptor.
The level4 descriptor fora 12 mark question states that 'assessmert is balanced, wide ranging and well
contextualised, using quantitative and/or qualitative information, ahereas ir the 0 iriark question, the level
4 deSCriptoF st9teS that ’üSs9SSrri9nt iS balalsCed dvd Well COntextMa[iSed, MSirg qlJüntitütiYe ünd/OF q\Jüliative
information'.
Therefore, there is an expectancy in the 12 card questions that your analysis and evaluation will be slightly
more wide ranging, with more breadth and depth thana 10 rrark qUeSti0fi)

Aclivily ii: Assess Question

OUI gU9Sfi0f! Ind extract WÎII be shawn on screen. Use the boxes beîow to map outyour answer.

8 EDEXCELA LEYEL BUSINESS GRADE BOOSTER Revision Workshop

' ¥/riting WOII Developed Arguments
Previous examiners reports have highlighted the folbwing in relation to arguments/ analysis in StJdgrltS
feSp0I1S0S.

Pr0l/ided W91l dgv0l0p8d lirlaa of 8FgUIzIeIit T6rIdB0 IO Izlak6 S9YeI tl p0lfltS t»fih liltlit0d
with consistent use of cœtext development
Largely descrlptlve arguments with litge or
no development
M9de exCBllent U90 of the0ry IO sUpp0rt their /eF0 lürgelÿ the0rBtiCBl 8fid gBnefiC aIiSW6I9
arguments wfiich were focuzed on \he questlon that weF0 fI0tf Ilïy f00Ms0d on the ‹ïU88liefl

î5/8F0 SUpportod by qU8fltit8tiYe afld Pr0viding arguments th8t didn't frIüIt0 MSe
qualîtaôve daB of the data

Analysis is far more than just Identifying or listing advantages or disadvantages

EU 880d t0 ensure that yoJr arguments develop logical chains of reasoning, showing cause(s) and effect(s)
Precious examiners repoa have highlighted that candidates shoul0 use œnnecäves to develop th0i£ arguments
ürld 8n8lyt!CaI Wfiting. COnn9Cti¥9S inCllJd8:
• Âsa result

• Thi9 ¥¥0UI‹I I08d t0

Usïng (ralevan9 rrodels and theories

witÏjin y0ftr aïl8W8r is also an excellent
Way t0 deveiop analysis üFd Cürl help
yOM to Writ0 iÏI0F9 de¥el0ped
argumerits.
lt is imp0rtant t0 r60lei¥lber . ”
that your analysis MUST be
0ur1sê Tlps tor writins \¥eII Bevelsye# Arsumems
\burArgumenb Should
demonstrate accurate and thorough knowledge and understanding

have coherent and logical chains of reasoning which arefully developed

to their logical confusion and be fully focused on the question
be supported throughout br appropriata context

use iziodels and théories (where appropriate)

discuæ theH0W'a and thewHY's in content and not be simple

staîemei›ts and assertioris strung together

S8I6¢fI¥Ity l6 cry iMg0rIB›tt. y0U ne0d aien9uie tliBt y0ti Ue sci93tl\la in the s›giiTI0rItB th0tyou lttd‹e.
Fewer, bettei derelop80 argumente, are valued more than I0ts of polnts which art rotf«Ily 4evefoped.
MBfiy stu‹lertts fry an0 c‹ivsr t00 rI›BtIy p0lnt6 wolin tt›eIf afi9W0r whlCh CBrI lmd.thatn te I0siflg sIgï›t
of ftu focus of jtie ‹lue8tlen, resultlng I» them arttting a«ar froii what tl›e 4iu8tlbn is.astäng.n carl
raeafth ham uritf/igtoo handlot having.enough timeB finish IIt papal:
itb Important tl›atyox csIe‹x yairar0umeriqe) carefully. nie ca• esuttk more focwe0 a«#concise
ieslxin8H Whl¢fi 0arI i51pr0y0 y0tJr dms rl8n8g0mertt.
h 8U«nBry, f0Uer, yr«0r de¥6Ł›Psd artt«me«t6; Ntil‹xi 8N stipt›0‹1B‹I »0«8IBI6«tIy Dy 0»ntBxI, Mil
ellow yau t0 ręa¢łl the higlter leyde ofthe marh scheme

OurIJow and ¥fhy a¢tîrity will Iæ sfiown On screen.

 Examiners reports have highllghted the following in reladon to evaluation, supported judgements and
reC0m«l9ridati0rIS:
• in asS9SS qMeSti0fis ther0 fi99dG t0 be Cleaf bâlanCe
• In the 10 and 12 mark questions there must bea conclusion/ supported judgement
• Judgements an0 reconmendatlof\8 fflMst be more thana simple repefition/summary of what has
previously be0fi Writt9P (the judgerrenb and recommendetiors should add value to the response)
• In the 20 mark questions,a clear recommendation needs to be provided rarer thana sirnPle conclusion
• The recommendation, whilst drawing on the previous arguments, should go deyond these and provide
\ i‹t6r i«to«i6t\or\ test supparts I\›« ‹ecoW' sndat\o\
• Fortherecomiriendation to be effective, it muet be linked to the œntext of the business in the question
• Students who produced the best recommendations often used MOPS to identify the most significant
reasons for choosinga particular option

WHAT is your judgement orrecommendation?

WHY didyou beach that judgement/recommendation?

WHAT wasthe most important reason for your judgement/
recommendation?
WH'f didyou come tothis judgement/recommendation rather than
an alternative? Why did you reject the alternative/other option?

ANSWER the question

JUSTIF\’ your judgement orrecommendation

IT DEPENDS 0N.What might your judgement orrecommendation
depend on?
MOST IMPORTANT. What was themost important eason that led
you to your judgement orrecommsndation?

12 GpEXgEL4 £EVEL BUSINESS GèADE BOOSTEë Rwi¥Ï0n C0 0fi

The 20 Marl‹ questions
In each cf the three exam papers, there wlll be two, 20 mark questions. You should plan your answer to ttese
questions and structure them correctly.
YOU Beef to make sure thai you evaluate both opôons and provide balance. \õ0r arg0n enfs need to be fully
developed, with logical, coherent chains of reasoning which showa range of cause(s) and/or effect(s).
Recommendation
Your recommendation should build 0fI pfiof Analysis but must be m0re thana repetition/summary ofthe points
you have already made. Foryour recommendatiori t0 b9 effective, you need to either pr0Vİde extra information
thąt you have not previ0U8lÿ IJS9d Wİthin your answer or something that you have perhaps previ0U9ly used
within your response, but which you devel0 in iriors depth tc justify be Option you have chosen fully
 /tctiviIy 4.• 20 Mark Question
0n screen y0u will be shown an extract and a 20 mark question. Use the space below to plan your
6nSwer.

14 £DEXCELA LEVEL BUSINESS GRADE BOOSTER Revisicñ W0rkshop

 0VERVI£W
Paperû Piliers from Paper1 and Paper2 in that every question is evaluative and will assess all4 thèmes
Paper3 basa mart allocation of100 andiS north 30% of the tr telA Level Business Oual!fication
Paperû r0nsistS 0f tW0 SeCtioils Witl1 eaCh Section CorlSiSting 0t:
1 z a mars e»cstI«n/ 1 x 10 riak Yves\lan/ 1 z 12 «iark zuestlsn/ 1 z 20 mary q«estIsn
For Paper 3, there is pre-release context, and the questions are Lased on this cortext.
This yeah, the c0ntext is the î,lothing ietail and mari fa turirg industries and the
blJSineSseS 0çeratil1ç iI1 th!SI IürLet.
Jê prepare for youi cxarn, you should research!
Global c1otl ïng market trends. customer tasten and grotere ces;
etLiCal COIiSideI üti0r!s
Forms of businusses in the UK clothing markets: inöeper0ents and

Global clothing rrianrfactrring locations

l1'qJaCt 0f gl0bal Cl0thilig iTiil!tin4tioIi IS
Financial performance, planning and décisions in the UK cl0thing
retail maîke!
Business growth and UK clothinç retailers
Esteçie ersandUKdoWnJrœaIvs
Distribution me|h0ds used by UK clnthing retailurs.

16 EDEXCELA LEVEL BUSINESS GRAOE B00!2TER Re' iSi0fl \ÿUfkh0p

' |N0ITEX (2ar8)Aud|

H8rnes& Maurin fH8M›

FAST RETAILING (bNIQLO)

EH (Cslviii Klein, Tommy Hilfiger)

Yictoria'r Secret6 CO.

Ralph Lauren

NMT

American Eagle Outfitteis

0 S 10 1 fi 20 2 r 30 40
Total sales in Lillies U.S. doIlais

2.£

1.9

¿ 1.U

1.5

1.4

|.3
2014 201fi 2O18 2017 2019 2015 202¢ 2fJ21 2012 2028 2024 20?rs P028 2027
Extfa¢tC Markel size ltzl‹ie)o Ihe gl0bal luxury clolhin9 mart‹et from 2020 to 2B31
(in 8tlioa MS 8ollarsl

be:sWV
 EztFa¢tE OVeFvİeW st lie UK Clothing MBrkel and ßl0bal key lFends

• The UK clothing market is Øminated by several large businesses, such as Next, Prîmarl‹, Marks and
Spenc ,JDSpovandAsda
• Oneofthe key growth area8 in the UK and globally is athleisure —a hybrid of casual and athletic wear The
market f0£ ßthleisure in the UK is forecast to grow from Cl2bn in 2023 to EJ3.9bri in 2027
• \Yith more people working remotely, there !sa rlæ in demand for comfortable yet stylish work-from-horne
attire. Loungewear, comfortable knits, and hybrid pieces suiaöle for vital meetings are becoming more

• The errphas!s on sustainable and ethical practices continued to grow. Consumers are showinga preference
for envifoweuta8y frieuõty r«ateråIa, etNcat supaty chats, and trar\spa\ent biwess practices
• There has been significant growth in the resale and second-hard market via platforms such as Vinted as
many consumers seek more sustainable ways to buy th0i£ Clothirlg
• Ïł19 Clothİng İOdlJStty IG inCfeas!ngIy ț›rİ0rİtİSİIg İnClUSİYİty and dİveF its, with bra ids aCknOWl9‹lgİ0g the
SİgnİficdfłCe Of İn‹x›FpoFütirIgą dİve/59 repre88ritdtİ0n Of bodÿ types, etł nİCİțİeS, alsd baCkgr0ur dS İrl theİF
clothing offerings and marketirig. This extends to the recognition and promotion of gender-neutral clothing
to cater toa broader and more inclusive audience
• Consumers have showri an increased interest in support'^8 ocaI and independent brands which has beeri
influenced bya desire to promote l0Cül 9C000ïTlİes afld discover unique, locally produced clothing
• Chİrla Still d0rrlİn8teS Cloßlİng rrlanUfdGsJFing, 8rid thİS İS üttrİbuted t0 İtS 9xt0nSive illdlJStFial İ0ffü5truCtMre,
highly skilled workforce, and 6t eam\iwd supply clams. From essential gaîmwts toluxur@s fashion
pieces, China manufacturesa diverse array of ¢lothirg Itens. its proficiency in managing large-scale
production has established it as the preferred ch0İCe for brands seeking efficient and COSt-effeCtiv9
mass manufacturing
° Despite China's dominance, several brands
are moving their clothing production out of
China due toa number of issues, such as
fiSİng IaboMr 00StS aid ğiłÏİCtJltj9S in VÎSİting
factories. India, \/ietnam, and Morocco
areanorig the countries benefiting
from the relocation of clotting

competitive labour costs, skilled

workforces, an0 favourable
f›uSİ08G6 efłvİfOfłlÏlentS,I lakİng
them attractive alternatives

IB EDEXCELA LEVEL BlJãINES9 GRAOE BOOSTER ReviSion W0fksh0#

Let's look at soirie core topics and questions relating to the c\ething retail and manufacturing
industry

www.tutor2u.net 19
In PB@r 3; there wlll be two 8 mark questions.8 mak q estioris do not need a.supported. ûdgenent at the.end.of
F ül›SWer..bUt to r9dCh Level 3, y0uia 6eB6I lelit MIT b8 õalen¢ed..
This meœ8 youMUST claude counter.arguments to the two points youa e r a '^8 Wlthin your respoxe to ensure
yr gain the evalčatloń märks.

• A completely crate response.

Lœtelä 1•2 • Isolated elernańt6 of Mowledge and understąnang — recall based.
• Weak orno elovant application \o busìrøss examples.
• tic assertions may be presented.
• Accurae knowledge and undefstanÕng.
• Chaİns ofreasœing arepresented, 'show!88 *e(s) dnd/or gffeçt(s) buŁ may be
assertlons or Incomplete.
• An attempt at an assessment is presented us\n9 quantiDt@ and/œ qualitzflive îr\form8tìon.
• Sugpœtad throughout by use ol the business behavlour/ccxitext, though ur&Jręly to show
siğnilicanœ of œmpalng argument.
• Aooxate and thorough know]edgø ard urdersßnding.
• Loğical chains of reas ' 0.bowing cause(s) and/or efteç#6).
• Assessment is balanced, well œnlex\uałised,. using guantllatke and/or quo ative

• Supported IfxoughaJt by relevant and effective uæ of \hø but behaviour/context. and

shows an awareness ofccrrpełing ar9ument6/factors incÌuding port8d agement.

Activity 2:8 mark.üueśtion.

Our extract and questiori will be sha in on s0reen, Use the template belowØ note down your ttt0ughłs/ans\¥er.
22 £BEX6ELA LEVEL BUSINESS GRAOE BOOSTER ReYiSİOO W0F/h0P
guantitative Skills,
Numerical Concept
and Core Knowledge
Revision Blast
In Session 4, all of our actlvities will appear on screen
24 EDEXCELA LEVEL BUSINESS GRADE BOOSTER Revision Workshop
20 EDEXCELA LEVEL BU9IMES9 GRADE BOOSTER Revisian Workshop
www.tutorZu.nat27
28 EDEXCMLA LE¥EL BUSINESS GRADE BOOSTER Revision Workshop
view.tutor2u.net91
32 E0E7CEh A LEVEL RUSTİESS GRADE BOOSTER I i' i'. ' I ,
YEAR1REVISI0NCHECKLIST

Meeting customer needs

Mass and niche markets
Dynamic markets
How compeirtion affects the market
Difference betwaan risk and uncertainty
Primary and secondary maket research
Wmpte size and bias
Market mapping
Competitive advantage
Product difierentiation and adding value
Market
Factors that lead toa change in demand
Factors that lead toa change in supply
Interaction of supply and demand
Price elasticity of demand
Income elasticity of demand
Marketing mix and strategy
Design mix
Branding and promotion
Pricing strategies
“Distribution channels
The product lifecycle and extension strategies
Boston matrix
B2B and B2C marketing
Managing people
Flexible workfome
Difference between dismissal and redundancy
Employer/ employee relations
Recruitment and selection
Types oftraining: induction. on the job, off the job
Organisational structures
Motivational theory: Taylor, Mayo, Maslow and Herzberg
Financial and non-financial methods ofmotivation
Leadership and ll3adership styles
Entrepreneurs and leaders
Role of an entæpæneur
Skills and characterietlcs of an entæpreneur
Reasons why people set upbusinesees
Business objectives
Forms o1business
Opportunity cost
 Topic NoteW H@pQy£
‹xwere0 doc
Theme2
Raising ftnance
Internal and external finance
Lmi d and unlimited liability
BU9ioess_p1annin
Cash-flow forecastinq
¿ales forecasting
alculating sales, revenue and costs
Br9ak-even
Budgets and variance analysis
Managing finance
Profit and calculation Of gross, operating and net pfofit
Measuring profitability
D_ifference betwe0n cash f|ow and profi"
Measuring and"improving liqidity”
VVorkngcaitai
InernaI"and external causes of business failure
Resource Management
Methods ofproduction; job, batch, flow and cell
PFOductivity and efficency "" ”
Capacity utilisatio "" ”
Stock control
Interpretation of stock control diagrams
Just-!n-time
Q_uality
Difference between quality control and quaiy assurance
E eternal in1luences
Inflation
Exchange rates
Interest rates”
Taxation
Business cycle
Legislation "
Competition and mark8t size ”

YEAQ2REU|S|0N£HICKL|ST
Theme3
Business objectives and strategy
Corporate Objectives
Theories of corporate strategy
SWOT analysis
Impact of external influences
 Topl¢ Nóles/ Ha9pÇ

Business growth
Growth
Mergers"and takeovers
Orgänic growth
ea n or stay!ng small" "
Marketing mix and strategy
Ouantitative sales Ïorecasting
Investment appra sa
Decision trees
Critical path anaiysis
fnfftiences on btísftiess decisions
Corporate influences
"CorPorate cullure
Slarehovers r siàkèholder
Bus1nèss t ""
Assessing Competitiveness
înterpretation of financial statements
ado anäl"sis ”
Human resô rces
Managing change
Gauses and effects of change
”Ky factorsn cnange
"Scenari p anning "

Ttemet
Globalisation
Growing economies
lnternatiônal trade an&h ihess growth
Factors”cont ut ng to ññreôàed gloabalisation”
Protectionïsm
img
Tra I cs
Global markets and business expansion
Gonditions that prompt trade
"Assessmen o a cóünt ”asa markét-
s me ó a c unttry as a production loa bon
Reasons torgloDal mergefs and joint ventures
GtobaLúòmpetitveness
Global marketing
Marketing
” ”Nidfie mares
Cultural/ social lactors

Global inclustries and companies (multïnational corporacions)

The impact of MNG's
Ethics oMNsi ”
ControfÏing MNC's

.40 EDEXC£LA L£VEL BIJSIItE66 GRADE BOOSTER RevisÍon W0rkshop

#UAETITATIVESKILLS
calculate, use and understand ratioB, averages and fractions
g82 cakulate, use and undeistand percentages and perceizlage changes
constrict and ir›te›preta raxge of standard graphical fonns

calculate cost, rwenue, proflt end bniak-eyen

@ M calculate iweatmei›t appraisal outcomes and interpret resun
interpretvaIu»s of Price aixl inoxne elasticity at damai›d
gg$ use and interpret quantitaltve and non-quantilatlve lnf0rmation in
Braer to make decisions
ggg interpret, apply and analyze information in wrlfien, graphical and
numerical fomia

KEYCALCUIATIONSANDFORMULAS
Yñar1
Market share = (Sales ofa product or business/Total market sales)x 100
Price elasticity of demand = 9S Chang6 In quantity demanded/6 Change in price
Income elasticity of demand =% Change in quantity demanded/% Change In income
Net cash flow = Total inflows —Total outllows
Sales volume = total number of uniB sold ovara period of time
Sales revenue = number ofunis soldx unit price
Total variable costs = number ofunib soldx variable cost per unit
T0taI costs = FiXed costs+ variable costs
Contribution per unit = Seliing prics per unit - variable cost per unit
Total contribution = Contribution per unitx Number ofunits sold
Break-even = rixed costs/ Contribution per unit
Variance = Actual - Budget
Gross profit = Sales revenue minus cost of sales
Operating profit = Gross profit minus overheads
Net profit = Operating Profit +/- finance costs
9ross profit margin = (Gross profit/ Sales revenue)x 100
Otierating profif margin = (operating profit/ Sales revenuesx TOO
Profit for the year (net profit) margin = (Profit f0r the year/ Sales revenuesx 100
Current ratio = Current asseB/ current liabilities
Atid test ratio = (Current assets — stock)/ current liabilities
Productivity (labour) = Output per period (units)/ Number of employees
Capacity utilisation = (Actual level of oi›tput/ Maximum possible output)x 100
?8ar2
ARR (9) = (Net return from project (E)/ Llumber of years)/ Initial cost of projectx 100
Gearing (%) = Non-current liabilities/ capital employedx 100
ROCE (9)= Operating profit/ capital employedx 100
Labour productivité = Output over period of time/ Llumber of employees
Labour turnover (%) = (Number of staff leasing oyer period of time/ average number of
staff employed Over sBma period of time)x 100
Labour retention (%) = (Number ofemployées remaining over period of time/ average
number Ofempl0yB9S OVOF SalTle peri0d of time)x 100
Absenteeism (%) = (Number of staff absent over period of time/ average number of
employees over same period of time)x 100
 £0NTEXTW0RDST0RPAKR3
Using words in your answers that relate to the business or industry nat you are writing about *”
can help you wrlte i‹iore contextualised responses. ,’
Here are some examples from be closing reBil and manufaAring industry. Can you think of
more? Write them in the box below:
”›
!’-.; .» • Apparel • Elastic • Polyester
*’"
'” .•
• Athleisu • Fabr”.
• B8ltS • Fashion • Scarf
„t.,; • Blouses • Fast fashion • Seam
': .. • Butting • Garments • Sewing machines
• Canvas • Gloves • Shirts
• Clothing • Hat • Shoes
• Coats • Hoodie • Shorts
• COttOn • H0Ok alld eye • Silk
• Cutting machine • Jacket • Sizing
• Denm • Jumpec • SmR
• Designer clothing • Leather • Textiles
• Dress • Leggings
• Dye • Linen
To find the percentage ofa number in relation to another number, divide the
number that you want toexpress asa percentage ay th9 total number ard
then multiply by 100.
To cNcUatea pzrœNage «frange bHween taonwö«s,
we en ue th fomla bmw:
Difference between thetwo numbers
Original number
If the resuh of the above calculation is negative, this means
a percentage decrease.

Below Ïsa table of date relating to tite salœ rerence oft i0 retsll outlets.

Dumas 273,700 238,0ŒÏ

Harrogate 319,2@ 336,000
Calculate the perœniage change in sales revenue in b0th retail outlets
Durharr = (C273,700 - E238,000)
. j00 = 15% (ncrease)

ñæragate= {23t9,z00 -
! x 100 = -56 decrea8e
£336,000

BeÏew i« same data n0atln8 toa reculer.

Trainin9 b‹xieet = (£270,000 - £150,000)

100 = 806 (increase)
£150,000
Ei+iployee sdary (average) = (C26,750 - £25,000
x 100 = 7s (inerease)
£26,000

Customer complaints = (901 0)

50
Sales devenue = (C2,700,000 - £2,500,000)
100 = 8% (increase)
£2,500,000
Using de above data, we co ild argue that the ao% increa6e in the
training budget and the 7s increase in employee sa!ary liam r0nbibuted
toa 40% decrease in customer complainl6 anda 8% increase in sales
revenue, perhaps due to more motivated stafl providirig better
£!JSt0ITI8f 8BWÏC8.
 EXAM SKILLS FORA-LEVELgU3I5ESS

Sec«re Łinwleaae anM iin8ercaa4ln9 is esse‹i8ai lor exae success. II is ¥›srełore crucial that yau acs
łamłłlar will all In key tswis anż csiiMix Included la your A-LaveI Bvslness ueclłlcallan, apns wiłh
all Ihe rylwanl msMe\s anMlhssrłes. łtaoøle49a tax unaentanMłns acb asa søekeeaar, allawlne you
Ø aCC888 lhaGlgÏlsr oF8aF 9hiłls Of aßM1Ißßti0n, anâly8ł8 and syalli8tl0M iM 70xF r0SDßMS0S.

A COiTłITIOn mİStake 1jjat 8tudent9 m8k0 In eXdI» anSWerS iS C0rlfl 6İrIg key ter‹rlS, COnCepü,
M0d9ÎS ünd th9Œİe9, Ë•0f 3X8ITIğl6:
• Pdce elactlclty of demand and income elaetlclty of demand
• Decentrall6dgon and delegation

• Interest rates and axchsnge rates

• P0‹t0f’e Fİ¥6 FOrCOS 8rId Port0r’G Gen0ri0 svategİ6e
• Labour turnover and labour pro4uctivi\y
• Cash flaw and profit
Ensur0 that y0u sh0y/ ğİStÎnCt and ğreCİ9e MnderStünding 0f the C0n00pt 0r t0pİC ürea İn
the qMe9tİ0fł İn y0ur F88p0rlse üG it must be 0b\łİOMS to the exa fIiIs8r th8t tin al SWer İs
embedded in he theory or concept in the question to gain the marks.A generic rrsponæ
that could relateb a number of different øpics is unlikely to move upthe levels in the
mark scheme and imprecise knowledg8 8rtd understąndin9 can impact heavily in the
marks awarded.

Formulas
You won't be provided with any formulae in y0ur exam papers, co make sure you know
üll the f0lïI1üI8e ON y0UF Specification so that y0u CüI1 pell0FtÏl 8rły CąlCulzttion With
œnfldence.

Top flys for Sacurs Itnswleêge and lłnáerslan5lne

Pf!flt Off y0UrA-LO\Tel BuslnesS SpeClfİCütİOn and hİghlİght eyery key tUltl, C0n0ept,i l0dčl Bnd th80‹y a8 8nd When it İS
COVereğ. ThIS Wİll alloW y0u to 8p0t ally g8p8 Iny0tx xfj0wledge 3Itd Undčrstandİrlg.

When reylewlng the specification, look carefully at 8hy 8dditi0nal informatÓn included next to each topic. Thls will give
y0U imp0łtBnt d0taİls a8 t0 Włte‹B y0ur forms f0rrrvlsİ0n SaMId b6,86 Well aS detail 8r›y m0deiS that 3IB Iİnked IO the
core content.
K9epe ğl0ssary 0f k0y terlïw, COnCBpts, rxxlel4 8nd ttle0rieS and r9\łİSİt thİ6 r0gUI8fIy.

Label workings in calculation questions to show understanding of the method of the ¢alcMlabon.

Create mind maps for the different unib in the specification to erøurr you are dear of the conterk included in each.
Thle Is II IporlBłI aS SOlzle qIs6SIİ0ns fflay f0CUs 008 4peclflC part 0f ILO COMrse Corteot. AnsWelB IIIIJSt f0CMS prBCisBly
On thİS aI8B t0 g8İn IYI8fk8 rather łț›8n be V8gIJe. Knswig theC0rite»t Of łtle @0¢ifiottIon will help Wİttł łhİ8.
Å8 the ŒllJrse yr0gr0S$gS, try andI IBkB lİnkB b8tw8eN dİffergnt glgl I9rltS 0f the C0Ur88. Thİ8 ’’’''! all0w ÿ0U IO güİrlü
the I e f5tand h0W th8 dlflere2 8F086 irit6ßllk 8nd Wlll tlBlpy U IO wrote
 EXAMSKILLSFORA-LEVELBŁSIEESS
A5A@SlSAXb¥RlTlXS
BELLDEVEL8PEDAR3UMEETS
Analysts Is so mach msra lhaa lust IMaalilYtag sr IlMlaa a4vantaeas an0 ¢isa4vanliiees. Antlnls Is
all as0i›t MevBlaylng r0a8anS, t0uHS, C0n8ague‹lcas ana rff0Cts. fail nBad toenSur0 tilst In rs‹lT
paragraphs yes aeveleylsylcal chains al reassalny s8owlne cause(sl aaM eIIsct(sl. This will allow
you tt›sriIe well derelapeM arsyments. It Ic alui vllal that uiur analysts Is In caMazt.

¢onnectives
A useful technique to help you develop your arguments and to write mor8 anayttcaI\y. Connectives include:
• Asa result • Therefore • This may lead to • Consequently

Anoth0r simple technique to help you write fully developed Iineg of analysis and well developed arguments
is H0lg and MAY.
For example, look at the argument and line of analysis below in resp0nSe to the impact of car manufacturer
Nissan operating at409’« capacity Utilisation: "
‘One impact is mat it could result in higher unit costs. Consequently, Nissan
may nead to increase its prices’
Tfi9 ag0Ve 8le 0f 8rl6ly5iS and aFgUlzl0flt IaCks dep\# aS /t fdil8@ «xaITIirI9!

N9\IY thig could rasult in higher unit costs '

\IIfHY Miasan may need toincreas6 pfi008

H9W the price increase may impact Missan

Out Tay Tlystsr t¥titins ¥feII Iłeveloycą Argumenls

context and data
Afguments should hayea clear start point and end point and be fully focused on the question

Arguments should ba developed to their logical conclusion

Use i›io4els and tł›eories (where appropriate) to support your arguments

Use connectives and discuss the HOW'S andtheY\/IfY’S ir context./\rguments Bnd analysis
should not be simple statements and asssrti00s strung together
 UNDERSTAND1NG
IXBESTXEETAPPR4ISAL
netrtecyNvalue fMPtl

. ,. . ., .

ii
0 (400) (400) 1.0é
1£0 89 (32Q 0.95
100 (220) 0.81
3 110 0.88
4 a60

! ’*- 1 Hultlply na nets iloas for+xsd sea by tiefluxes\I

/ srdgg rato of retcM • me w that p8nl¢Mlar year Inclvdlng yea 0

3 Itlsgosll e.neraI‹se, pgybart+soils during yes/ 8. TO work at the r<\ return fr0rn the i»veewenl, We drrpfr n8F 0 - ft400,Wx1
dler2 yaks, aa t«r«iXet ' /e\ cash fiovb IM@,oo0l
-f91W

g5B0,000/ 4) =P140,OXipeFya8f

Oa¥tixrli=2 real8 enJ8 xioit¥it

D£NfTPl£6CA¥¥8LN£

”
 UNDERSTANDING
A dsclslon bye ise m8lhem8fical i›io4eI which can be used by mana9ais j¢ rely mske yeclclons.A deeiclon tree
ynivl4esa l«8icxl aserrach is 8acisf»n msklne, «issyine ei‹t the ymrrrxt anIIaMi«sytlens.A aecicl«n see uses
ec\Images sna eoMasiillleca calcutzls I5«szyertey r»lue aN new aain si each »ztion.

' I

Probablllty of Ngh a8las 0.7 0.6

0.4
fiasuIU fiigh adN C2,40fI,0@

¢05SII\IIIIfIH0A0EtISI08TREE — C1,800,000
TO c0nani¢ta aecisi0n tr0e, WB 6tart wftha 94U8x
wtilsti repress+iB the declafon tg be made.We then
add p0s6IbIe 0Mtg0meg tethededsl0n tree. Circles

\Ys then add all 8ie essaclete coeB, pmhoblliñ8s 0.5

and fInanaI8I resulb for each oct¢ome.
It is alco important to remember that Iliere Is always high Sales

cALCULfi7I G «EE U'Eg‹E0 ¥ALUzx ID I‹ET h

Mltiply ne valu0 (s8I¢s) by its grobabil Iy and add

them together. la ralculata the nBt galn of earn *'' ” ' — csto,o
o@ioo,w0d udQeeBtmutad Q+b 0.4

i0oothng
N

Expected v8lue = f51,8iXUXox D7j+(£600,000 x 0.3) = Ef,440,000 Ezpectad valua = tO,4@,0Xix 0.6j+ [£ Xl,000x 0.4)= €1 ,&0
Met gain= Et,440,000 - E800,0al = zNeM0 Net gain • E1,800,IxIz - C1,400,000 = M8a,ais
Ie the aI›ove scenario, inaaasing prornation h8s ttia âlgñest net gain auto theMaa thehighest final cialb ief!t.

ADYANIAGES OF DEBSIOIJ 1REES LIMITATIONS OF IIECIS10N TIIZES

• Enablesa loglcal aPgroadi t» making decislons • rinaicial ailcomes alia probabilltas eve estlmales arid therefore nay
• Used probabllitles albws the risk of cach ogtion to Be af\sidered
• Q¢antiatix6a roach to decisl0n rrlakirg faklng 8t0¢»iB Bad
f|no1c|aI bu1dIB

A*E¥AMATBH:
rer at eir1n< rsii+vcro.cosis.A• •rxi•+•s,=n xrsonE P•oa*aiiJzr rssx oricauz. nsxxeue
¥eacouse caasaai ones gems sue»as cr\t\zaiwi¥rorox1ox«mxñsnucssnesL ozcow.
UkDERSTAkDlkG
B£DCETâAXDVARiAXtEAkÂfiSlâ
yarIa»re analysis invitees osnflsrlnM, reylewiny, calcula8iie snM Invezlteelsg the dlltyizncys heI•eenB a
actual amounb Vita the suyyeiza amount. A«utvene variance Is wMeui ar acbai amouN is worse than suey-
el, NhOFOBSa /d¥o0faMle ¥aFb‹iCs IS wh6f8 \h00cI‹itl 00t0M0t is MOIteF lhan MM40el.

4BYAIITAlïŒ 0F8Mg6EI5
• ¢a« be use4 to establati eii0‹itles and 6et taleeB • May result in 8hort-term decisions to keep within budget, rather
• Helps t0 control experldlkre tl›an the right l0Itg-t0nII d4¢ak•i which MBy*Xc86d thebudget
In the future
• ProYide dlrection Bnd œ-ordination

toa¢hieve 8paclfi¢ budget targetB • cas T»9uIt ilta 'use it Of lise it'I IO Itzllty leasing t0 Ur»8Cabsuy
spendlng in order to preaarre the budget next year

Tha detB iRSte t4bl6 b0l0w aR 0XtI'd0t Ér0lti tue À¥‹lg0t la b«6l Ie66.

Income variance = E150,00 - E200,000 = E50,IXI0 adverse

80,000
Expendftuie variance = E80,0IXI - E90,0@ = E30,0IXI faYourablo
profit yari¥na = £9'l,0IXl - C1j 0,jXI0 = E20,IXI0 adverse
- .•. • ., -

The table below sho¥/s the budgeted and actual revalue and ezpendibee fora Ixuinecs in September and Oetooer last year.

lnœwe 180,P00 100,000

Septeriiber budget I prof!I = C180,0fO - C80,000 = E120,000
60,000 W,%0 Octobar budgetsd profit = C2t0/000 - C80,0@ = E130,000
Total (combined) biidgaBd profk = E120,0tXl+ Ef%,0tXI = M50,fXKl
Seeter«ber actud erdlt = E1g0,0fO - E50,0@ = E140,000
210,Œ0 240,0Œi October actual profit = £240,000 - t70,000 = E170,000
Totai t‹ombined} achial profit = E140,QXI+ £f70,000 = £S10,tXKI
80,000 R,000
Total (combinetl) profit xarîan¢e = tg10,0IXl - E250,000 = 50a,000
favourable

¥sladsof ils IIiandeI pztlsrrume. kowswr, it la lmyonent to ænamle nattua9ab blyoneaanaibs

dut co›Ii‹i a1s‹i lead to overworked staff, ii»paciing oi quality. Co"seyuently. ii is imuuriant fora
s generally accepted that mmr spare› rapic ty
is ‹is‹ fttl: as this cnnfiTesa bnainess to take on »ew oi’der5 an\I learns time lor routii\r maintenance
 ,000
1,200
Capital employed after additional borrowing = £4,000,000+
E3,000,000 = 27,000,000
www.tutor2u.net 55
 ŁTESEBRCH6 IIJTR00UCTì00 GROWTH MACflRlTY DECKIWE
DEYELOPfdEOT
www,tutor2u.net 57
58 EDEXCELA LEVEL BUS\ItESS GHAOE BOOSTEft ReviSi0I1 Wofkshop
SOANTHEORJODETO
AÛCESSTMESüDESAND
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