Pearson Edexcel GCE A Level In Business (9BS0) Paper 1: Marketing, People and Global Businesses. Question Paper and Mark Scheme.

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Business Advanced Paper 1: Marketing, people and global businesses Answer ALL questions SECTION A Read the following extracts (A to C) before answering Question 1 Write your answers in the... spaces provided Extract A Basic hourly wage at UK supermarkets – June 2018 Supermarket Basic hourly wage (£) Aldi 885 Lidl 875 Morrisons 870 Asda 867 Marks and Spencer 850 Tesco 802 Sainsbury 800 Iceland 783 Extract B Jack’s is launched Tesco, Britain’s biggest supermarket chain, is preparing to launch Jack’s, its own brand of discount stores Tesco aims to take on the German discounters, Aldi and Lidl, that have both been increasing their market share in the UK Tesco is keen to emphasise Jack’s ‘Britishness’ Advertising highlights that eight out of 10 products available in Jack’s are grown, reared or made in Britain, which it claims is a higher proportion than at any other grocer The intention is for Jack’s also to be the “cheapest in town”, said David Lewis, Tesco’s Chief Executive “The large scale of Tesco and the lower operating cost of Jack’s allows us to be cheaper” The layout of each Jack’s store has taken inspiration from Aldi and Lidl For instance, in the centre is a promotion section consisting of 24 baskets and 48 products offered on a ‘When it’s Gone, it’s Gone’ basis, similar to ‘Weekly Offers’ found in Lidl All advertising will be done locally, using leaflets, with promotions tailored to the local community (Source: adapted from https://wwwmarketingweekcom/ 2018/09/19/tesco-jacks-discount-chain/) Extract C Working at Aldi Aldi staff mentioned ‘work-life balance’ in about 200 employee reviews completed worldwide ‘Long hours’ were also mentioned in 110 reviews One anonymous employee said Aldi is pushing staff to work harder and longer: “The company will push you until you injure yourself or quit from exhaustion,” he said His claims were supported by a Store Manager: “As a manager I work my socks off with no reward or praise Even after 11 years of service,” he said “Money, money and money These are the only benefits for working for this company that does not think or care about managers like me who may prefer a bigger say in the way Aldi operates” Another Store Manager said that Aldi’s “leadership culture is built on threats and pressure” and “Area Managers would benefit from listening skills to appreciate the problems we face” Despite negative reviews some employees praised Aldi for its great pay and benefits “Serious responsibility Unparalleled learning experience Great car Good pay,” an Area Manager commented (Source: © The Sun / News Licensing) 5 10 5 10 1 (a) Using the data in Extract A, calculate the percentage increase in the hourly wage that Tesco would have to pay its staff to match Aldi’s State your answer to two decimal places (b) Explain one business objective Tesco might be aiming to achieve by launching its Jack’s stores (4) (c) Assess the likely benefits to Jack’s if it only advertises locally using leaflets (d) Assess the likely impact on Aldi’s recruitment and selection costs if staff choose to leave due to poor working conditions To improve customer satisfaction, Aldi has identified the need to focus on employee performance This could be achieved by Aldi focusing on financial incentives or non-financial techniques (e) Evaluate these two options and recommend which one Aldi should use to improve customer satisfaction SECTION B Read the following extracts (D to G) before answering Question 2 Write your answers in the spaces provided Extract D Estimates of price elasticity of demand (PED) of car brands Brand PED Audi –463 Ford –275 Land Rover –675 Suzuki –164 Toyota –265 Volkswagen –231 (Source: adapted from https://repositorylibrarynortheasternedu/ files/neu:349589/fulltextpdf) Extract E Current and projected number of ridesharing users, globally Numbers are in millions of people Ridesharing is an arrangement in which a passenger travels in a private vehicle driven by its owner for a fee by a means of a website or app (Source: from https://wwwstatistacom/outlook/368/100/ ride-hailing/worldwide#market-revenue) Extract F Ridesharing businesses in India Ola is an Indian ridesharing business Its main competitor is American-owned Uber Ola’s strength is local knowledge; it has always accepted cash payments, while it took Uber nearly two years to do the same Ola’s app also supports nine regional languages for drivers, which is important as only 10% of Indians speak English Ola offers three different services: premium, low-cost and car-pooling Ola’s auto rickshaws, which have their own safety standards, are successful in smaller cities where distances are shorter After its exit from China, Uber said it would divert a ‘significant portion’ of its planned $1 billion marketing budget to India This led to calls from Indian businesses for government laws to limit investment by non-Indian businesses into the market In one of Uber’s other markets, the USA, a former Uber engineer alleged sexual harassment by her manager, and one of the founders of Uber was caught swearing at an Uber driver Other questions about Uber’s business practices have been raised: trade unions have requested drivers receive basic rights such as a living wage and unemployment insurance; Uber classifies its drivers as independent contractors and so they are not eligible for benefits such as overtime and health insurance Uber’s pricing structure has also been criticised, after allegations it routinely overcharges customers It was recently sued for not providing enough vehicles accessible to wheelchair users (Source: from https://qzcom/1200878/ with-uber-in-crisis-ola-zooms-ahead-in-indias-taxi-wars/ and https://wwwthevergecom/2017/6/30/15904510/uberopen-letter-board-ethical-recommendations) Extract G Ford and Mahindra joint venture Mahindra, an Indian-based car manufacturer, and Ford have signed a deal to develop a new Sports Utility Vehicle (SUV) for the Indian market These will have a Ford body and badge, but will be based on a car chassis (frame) that will be made by Mahindra The deal will see Mahindra and Ford cooperate with each other for a period of three years While Ford may gain economies of scale and a lower cost structure from Mahindra’s new car chassis, Mahindra will get access to Ford’s engineering knowledge Mahindra will also get support in global emerging markets, including Ford’s manufacturing and car distribution network The Managing Director of Mahindra Ltd said, “Both teams are working together and building on mutual strengths We are excited about the synergies unveiled through this joint venture and the potential opportunities it will bring” (Source: adapted from https://autondtvcom/news/ford-and-mahindraconfirm-jointly-developed-suvs-electric-car-for-india-1827425) 5 10 15 5 10 2 (a) In 2019 the price of a Ford Endeavour rose from 30m Rupee to 309m Rupee Using this data and the information from Extract D, calculate the percentage change in quantity demanded for the Ford Endeavour in 2019 State your answer to two decimal places You are advised to show your working (4) (b) Explain one way the Indian government might use legislation to protect the Indian ridesharing market from non-Indian businesses (4) (c) Assess the likely future growth of ridesharing businesses in an emerging economy, such as India (10) (d) Assess the likely consequences for Ford of its joint venture with Mahindra (12) Uber aims to become the market leader in Indian ridesharing To achieve this Uber could either focus on adapting its service to the needs of Indian consumers or improve its business ethics (e) Evaluate these two options and recommend which one Uber should choose to become market leader (20) [Show More]

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