Exam techniques

Evaluate
Evaluate is the top-level skill that is assessed in a Business/Economics
exam. Evaluate questions look for respondents to form an opinion on a given issue and
offer a critical response. Evaluate questions often require respondents to use
knowledge relating to the topic area and wider knowledge of business to access the top-
level marks. Evaluate questions are always linked to a case study and respondents
must use this throughout to support their response. A conclusion is always necessary in
an evaluate question.

Examples of evaluate questions include:

 Evaluatewhether a bank loan would be an effective source of finance for

Dafydd’s Florist.
 Evaluate
whether Mate’s Bakery would benefit from a move from being a LTD
company to a PLC.
 Evaluate whether promotion is the most effective element of the marketing mix
for Salma’s Café.
An example question and answer:

Question

Evaluate whether promotion is the most effective element of the marketing mix for
Salma’s Café.

Answer

As it is a small business, promotion is very important to Salma’s Café. This is because if

the café business doesn’t promote itself effectively, it is likely to miss out on customers
to one of the other cafés in the local area. This could lead to the recent increase in
demand slowing down and the café losing customers. Therefore, the current expansion
plans may not be possible. However, conducting lots of promotion could increase costs
for the café, meaning that it could have to increase the prices of its exotic coffee.

It could be argued that promotion is not the most important element of the marketing
mix, because the café specialises in exotic coffees sourced from around the world.
Therefore, the product could be considered to be the most important element of the
marketing mix for the café, especially because it is considering starting to sell food as
well. However, promotion is extremely important for a business with a niche unique
selling point (USP) in a busy town centre.

Overall, I believe that promotion is not the most effective element of the marketing mix
for Salma’s Café. This is because elements such as product and price are vital in a
busy town centre with lots of other cafés. Also, with the business having such a strong
USP, product may be the most important element of the marketing mix. Whether
promotion is considered to be the most effective element of the marketing mix for
Salma’s Café depends on whether consumers within the local area value the USP of
exotic coffees, or whether they simply want any coffee available from a café. The most
important point is that Salma’s Café is a business that thrives on having a USP.

Analyse
Analyse is a more advanced examination skill and is often a six-mark exam question. It
is usually similar to a discuss question. Analysing usually requires a comparison or
consideration of the benefits and drawbacks of a certain scenario or business
example. Analyse goes beyond explaining, often requiring that an argument is
presented. Where a case study is present, it is essential that the response is linked to
the case study throughout.

Tip: Aim to use five connectives to build analysis chains in an analyse question.

Examples of connectives are ‘because’, ‘leading to’, ‘therefore’, ‘however’, ‘the
consequence’ and ‘as a result’.
Examples of analyse questions include:

Question 1
Analyse the impact of Yanna’s Bikes using the internet as a form of promotion.

Answer

Using the internet to promote a bike sales business could allow Yanna’s Bikes to
access more customers. This would lead to increased awareness of the business
among people looking to purchase bikes or cycling accessories, therefore
potentially increasing sales and revenue for the business. However, using the
internet to promote a bike sales business could also increase costs. This would
lead to the business having less money available to spend on other forms of
promotion, such as leaflets and billboards local to the cycling shop. This could
therefore reduce the impact of promotion in the local area.

Question 2

Analyse the impact of competitors on Salma’s Café.

Answer

Competitors could mean that Salma’s Café needs to provide high-quality coffees
and cakes for customers to purchase. This would lead to the café having a
competitive advantage over other cafés in the local area, therefore increasing
sales of exotic coffees and cakes for the café business.
Competitors would also mean that Salma’s Café needed to offer excellent
customer service, such as checking that customers are happy and dealing with
any issues as they arise. This would lead to the café getting better reviews and
therefore more chance of gaining customers who are interested in purchasing
exotic coffees, cakes and other baked goods.

Discuss

Discuss is very similar to analyse and is often also a six-mark question. In some

exam boards, discuss is the same skill as analyse.
However, discuss questions are not always linked to a business example or
case study.

Discuss usually requires a comparison or consideration of the benefits and

drawbacks of a given scenario or business example. Discuss goes beyond
explanations, often requiring that an argument is presented. Discuss questions
do not usually need a conclusion or overall justification.

Tip: Aim to use five connectives to build analysis chains in

a discuss question. Examples of connectives are ‘because’, ‘leading to’,
‘therefore’, ‘however’, ‘the consequence’ and ‘as a result’.
Examples of discuss questions include:

Question

Discuss the impact on an entrepreneur of creating a business plan.

Answer

By creating a business plan, an entrepreneur would gain a good understanding

of the finances needed to start their business and keep it running. This would
lead to the entrepreneur being more financially prepared and able to react quickly
if, for example, costs were higher or revenues were lower than planned, and
would therefore give the business a higher chance of success.

However, the business plan could be inaccurate and unrealistic. This could lead
to the entrepreneur making incorrect decisions and losing sales as a result.
Therefore, a business plan, if not done correctly, could lead to business failure.

Justify

Justify questions go a step beyond analyse and discuss. They often ask

respondents to consider either one or two options and then recommend a course
of action for a business to take. Justify questions are usually accompanied by a
case study, and it is expected that responses will be clearly linked to the case
study to enable a well ‘justified’ response. Often a justify question will have nine
marks available. A conclusion is necessary to access the maximum number of
marks, and it is important to use words such as ‘it depends on’ to clarify that the
best option will depend on various factors.

Examples of justify questions include:

Question

Yanna’s Bikes is considering two options to expand the business. Justify which
one of these options Yanna’s Bikes should choose:

opening more shops

opening an e-commerce store

Answer

Yanna’s Bikes could open an e-commerce store. This is because many

consumers now make purchases online for all items, including bikes and other
cycling equipment. This could lead to the cycling business having a larger target
audience, therefore increasing its sales and revenue. However, opening an e-
commerce store to sell cycling equipment would cost money and take a lot of
time to manage.

Yanna’s Bikes could also open more cycling shops, for example in Manchester,
Leeds and Birmingham. This would lead to more potential customers purchasing
bikes, cycling clothes and cycling accessories, and may therefore increase
revenue and the potential to expand further. However, opening more cycling
shops would be expensive, and Yanna may not have knowledge of the local
areas.

Overall, I recommend opening an e-commerce store. This is because shopping

online is becoming increasingly common and many people no longer buy bikes
and cycling equipment on the high street. The final choice of option depends on
whether Yanna is able to employ staff to manage the online element of the
business and set up a distribution network. The most important point is that sales
online are increasing all of the time.