Exam tips

Paper 1 – More on knowledge

 80 marks - worth 50% of grade

 4 questions per number (usually)

(a) 2 marks: Knowledge or application

(b) 4 marks: Analysis and/or application

(c) 6 marks: Analysis and/or application

(d) 6 marks: Evaluation

 For the questions with application included you will need to apply your answers to the

case study by giving figures, names, and/or specific processes that the business does.

Paper 2 – More on analysis and evaluation

 80 marks - worth 50% of grade

 4 questions

(a) 8 marks: Analysis and application

(b) 12 marks: Discuss and recommend

 In your answers for the 12-mark questions you should usually define what is being asked,

then one advantage and one disadvantage for each option. Elaborate on the possible

effects on the business.

 For formula questions, always write the formula first and show complete workings.

 Always link back to the case study.

1. State is one of the most basic skills in an exam. State is often a one-mark question and
will require either a short-phrase answer or just one or two words.

Q: State one element of the marketing mix.

A: Promotion.

2. Outline questions are usually worth two marks in an exam. Outline questions require

slightly more detailed answers than state or define questions.
An outline question usually requires a point and an example in order to access all the
available marks. 
Outline questions are often linked to a case study or business example. Where this is the
case, it is essential that the response is linked to the case study to access all the available
marks.
Q: Outline one impact of changing levels of consumer income on Budget Savers
supermarket.
A: If consumer incomes increase, this could result in lower sales for Budget Savers
supermarket as customers may do their food and grocery shopping at more premium
supermarkets.
3. Explain questions are often worth three marks in an exam. Explain is a relatively
straightforward skill to demonstrate.

Answers are usually broken down into three parts to achieve marks:
 make a point
 give a reason why (often given as ‘because’)
 state the consequence (positive or negative) for the business
 Q: Explain a benefit of creating a cash flow forecast.

A: A cash flow forecast can be shown to a bank when applying for a loan. This
would lead to a business being able to access additional finance. Therefore, the business
would be able to expand or purchase more stock.

4. Analyze is a more advanced examination skill and is often a six-mark exam question. It
is usually similar to a discuss question.
Analyzing usually requires a comparison or consideration of the benefits and drawbacks
of a certain scenario or business example. 
Analyze 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.

Q: Analyze the benefits to Mate’s Bakery of globalization.

A: Globalization would allow Mate’s Bakery to imports goods such as flour, flavourings
and eggs from abroad. This would lead to the business being able to source a wider
variety of ethical bakery ingredients at a cheaper price from Fairtrade suppliers, therefore
increasing its potential to grow as a business in the baked goods industry.

Globalization would also allow a business to sell its baked goods and services abroad.
This would lead to a larger potential customer base for the business, therefore increasing
its potential to make more than its £85 million revenue and £6.5 million profit.

5. Justify questions go a step beyond analyze 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.
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.
Question: Yanna’s Bikes is considering two options to expand the business. Justify which one of
these options Yanna’s Bikes should choose:

Option (1) opening more shops

Option (2) opening an e-commerce store

Sample 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.
Evaluate
Evaluate is the top-level skill that is assessed in a GCSE Business 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:

 Evaluate whether 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 an LTD
company to a PLC.

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

An example question and answer:

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

As it is a small business, promotion is very important to Sarma’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 specializes 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
center.

Overall, I believe that promotion is not the most effective element of the marketing mix
for Sarma’s Café. This is because elements such as product and price are vital in a busy town
center 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 Sarma’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 Sarma’s Café is a business that thrives on
having a USP.

Part (I) The case study

Sarma’s Café is a small café that specializes in exotic coffees sourced from around the
world. The café business has one shop located near a busy town center. There are several other
cafés in the area. However, none shares the same unique selling point.

At the moment, Sarma does not have a website and has only just started taking payment
by card. However, all orders have to be taken at the till in the shop before they can be processed,
and customers have no option for delivery.

Sarma has recently decided that due to an increase in demand and promising financial
performance, she would like to grow the café business. She is currently considering opening new
premises, opening a website and online app, starting a delivery service and starting to sell food.
Sarma has been conducting some market research and is trying to decide the best option to grow
her business.
 Example answers

One method of analyzing a case study is called PINCC: product, industry, customers and
competitors.

In the above case study, we can see that:

 the product is exotic coffee

 the industry is the café and coffee industry

 the customers are most likely people of all ages above 16

 the competitors are the several other cafés in the area

Explain how Sarma’s Café could benefit from opening a website and online app. (3
marks)

A (low mark): Sarma’s could benefit from opening a website and online app by getting more
customers, because more people would see the business. This would bring more customers.

A (middle mark): Sarma’s Café would benefit by having increased customer awareness. This is
because more potential customers would know about the business and it would be easier to order.
This would lead to the business gaining more customers and profit.

A (high mark): Sarma’s Café would benefit by providing customers of all ages with an easier
method of ordering exotic coffees. This is because ordering exotic coffees online would be more
convenient, providing customers with a service that would mean they no longer had to queue at
the till when in the busy town center. This would lead to more customers choosing to purchase
refreshments from Sarma’s Café, and the business would therefore gain a competitive advantage
over several local competitors.
 Case study – Part two: Large business (answering using PINCC)

Mate’s Bakery is a large bakery business located in Manchester, England. Mate’s Bakery
has been growing at a steady rate since 2015 and the business has now achieved a sales turnover
of £85 million per year, with a net profit of £6.5 million. Mate’s Bakery has recently been under
threat from a new competitor, Cheap Bakes, which is selling very similar products at lower
prices.

Mate’s Bakery has decided to spend more money promoting the business and increasing
awareness of the brand in order to remain competitive. It is also currently deciding whether to
increase its product range and release a product line of specialist donuts in a range of flavors to
help grow the business.

Mate’s Bakery has also recently started using organic, ethically sourced ingredients and
has introduced a range of gluten-free and vegan products. The owners are hoping that this will
boost sales and provide the business with a competitive advantage. However, developing a new
range of products has increased costs for the business. The cash flow forecast for the next 12
months is showing that there are several months of the year where cash inflows are going to be
lower than cash outflows.

Example answers

One way of analyzing a case study is PINCC: product, industry, customers and competitors.

In the above case study, we can see that:

 the product is baked goods, including organic, gluten free and vegan

 the industry is the food, baked goods and health industry

 the customers are most people and particularly those with specific dietary requirements, such
as gluten free

 the competitors are other bakeries, in particular Cheap Bakes

Question
Analyze how expanding the product range could benefit Mate’s Bakery. (6 marks)

A (low mark): Expanding the product range could benefit Mate’s Bakery because it
would mean it had more customers. This would lead to the business selling more products to its
customers, therefore earning more profit for the business.

Another benefit of expanding the product range would be that the business could rely on
more products. This is because if one or two products failed to sell very well, Mate’s Bakery
could focus on other products. This would lead to Mate’s Bakery having less risk and therefore a
better chance of being successful.

A (high mark): Expanding the product range to include organic, ethically sourced

ingredients could benefit Mate’s Bakery by improving its brand image in the food industry. This
is because customers are increasingly conscious of where raw materials, such as cooking oils,
eggs and sugar, are sourced. This would lead to an increase in customers who are conscious of
purchasing ethically produced baked goods, and therefore the business would remain competitive
against cheaper suppliers.

Another benefit of expanding the product range to include dietary requirements such as
gluten free and vegan is that Mate’s Bakery would gain access to a larger pool of potential
consumers. This is because these requirements are becoming more common and suppliers of
baked goods that cater for vegan and gluten-free diets are limited. This would lead to an
increased market share in the health foods and dietary requirements sector, and therefore the
business would be more likely to increase its growth and its £85 million sales turnover.