AQA A-level BUSINESS Paper 2 Business 2 RATING JUNE 2022

Document Content and Description Below

A-level BUSINESS Paper 2 Business 2 2 *02* IB/G/Jun22/7132/2 Do not write outside the Answer all questions in the spaces provided. box 0 1 Read the information below and then answer the que... stions that follow. The UK tea market Tea drinking in the UK is declining as younger customers choose alternatives such as coffee. Extrapolation of the annual sales suggests that coffee will outsell tea in the UK by 2025. Within the overall tea market traditional black tea still dominates sales. However, a ‘health tea’ niche made up of fruit, herbal and green teas is growing. This niche has benefitted from its association with wellbeing. Appendix A Annual sales volume of black tea and coffee (million kg), UK (actual sales 2012–2020; estimated sales 2021–2025) 3 *03* Turn over ► IB/G/Jun22/7132/2 Do not write outside the Appendix B UK tea brands 2019 box Rank Brand Annual Sales (£m) % change Type of tea in range 1 Twinings 108 +3.8 Black and health tea 2 PG Tips 99 −7.2 Mainly black, with small new health tea range 3 Taylors (including Yorkshire Tea) 98 +5.0 Black and health tea 4 Tetley 90 +0.4 Mainly black but some health tea 5 Pukka 23 +15.4 Organic and ethical black and health teas Other tea brands 144 Appendix C Price elasticity of demand data Type of tea Price elasticity of demand Black tea −1.2 Health teas −0.5 Turn over for Appendix D 4 *04* IB/G/Jun22/7132/2 Do not write outside the Appendix D box Selected data from recent market research survey How often do you drink black tea? (% of respondents) Overall Age 18–24 Age over 65 Several times a day 42 25 56 Once a day 15 16 16 2–3 times per week 10 14 5 Occasionally 12 17 7 Never 21 28 16 Do you drink health tea? (% of respondents) Yes Female 32 Male 19 How important is it that the tea you buy is ethically sourced, eg fair trade? (% of respondents) Important 62 Not very important 26 Not at all important 12 0 1 . 1 What is meant by the term extrapolation? [2 marks] 2 5 *05* Turn over ► IB/G/Jun22/7132/2 Do not write outside the box 0 1 . 2 Using Appendix B, calculate the combined market share of the top four tea brands in 2019. [3 marks] 0 1 . 3 Using the data in Appendix D, explain one benefit of the use of market segmentation to a business selling tea. [4 marks] Turn over for the next question 4 3 6 *06* IB/G/Jun22/7132/2 Do not write outside the box 0 1 . 4 A business sells two types of tea: black tea and health tea. Analyse how the data in Appendix C will affect how this business might change the price it charges for each type of tea to increase its sales revenue. [9 marks] 9 7 *07* Turn over ► IB/G/Jun22/7132/2 Do not write outside the 0 1 box . 5 To what extent does the information provided suggest that now is a good time to launch a new brand of tea? [16 marks] 8 *08* IB/G/Jun22/7132/2 Do not write outside the box Extra space 16 9 *09* Turn over ► IB/G/Jun22/7132/2 Do not write outside the 0 2 Read the information below and then answer the questions that box follow. Ocado venture with M&S Marks & Spencer (M&S) started to sell its popular food range online for the first time in September 2020, by forming a venture (also known as a joint venture) with Ocado. Ocado is a solely online supermarket that has well-established distribution networks and market-leading advanced technology. M&S funded its part of the £1.5bn venture by selling £600m of shares to existing shareholders and by cutting shareholder dividends by 40%. M&S stated that it had always believed M&S branded food should be available online and combining with Ocado was a ‘win-win’ situation that would drive long-term growth of both businesses. Following the announcement of the venture, Ocado’s share price rose by 3%. The launch of the venture followed over a year of hard work and required senior managers from both businesses to work together to make it happen. 0 2 . 1 What is meant by the term shareholder dividend? [2 marks] 0 2 . 2 Explain why the Ocado share price rose following the announcement of the venture. [4 marks] 2 10 *10* [Show More]

Last updated: 11 months ago

Preview 1 out of 24 pages