As business exam technique final

1. Edexcel GCE AS Business
How to approach your exam

2. Points- based: 2 marks – Define
Must be PRECISE and COMPLETE, so read the
questions carefully:
What is meant by brand?
A brand is a unique design, sign, symbol or
distinct words (1) which help to create a USP or
image/identifies a product or company, thus
making it different from competitors (1)

3. Points- based: 4 marks – Explain how…
• Start with a definition/description of concept
• As well as explaining, you must APPLY – make
use of context/stimulus. If the application is not
obvious, then think about THE NATURE OF THE
BUSINESS or WHAT MARKET IT OPERATES IN.
USE REAL LIFE EXAMPLES to back up your points
• Ensure you refer to a CauseConsequence/ to gain
analysis mark, i.e. expansion/development
Knowledge = 1 mark
Application = 2 marks
Analysis = 1 mark
Knowledge = 1 mark
Application = 2 marks
Analysis = 1 mark

4. Explain how YOTEL could use primary research to
support its decision to expand = K1, P2, A1
Primary research is the gathering of information first
hand, for a specific purpose (1). The hotel market is
very competitive with lots of strong rivals, such as
Premier Inns (1). Yotel could use primary research as to
find out what facilities previous guests have enjoyed or
not (1). This might allow Yotel to provide facilities and
products which guests would like to ensure the hotel
chain is more competitive (1)

5. Points-based: 4 marks – Calculate…
• 1 mark for providing an appropriate formula
• Up to 3 marks for fully inserting appropriate data
(application)
(if you get the answer right you still get 4 marks)
Why should you always show your working?

6. Points-based: 4 marks – Illustrate
(An example; not always S and D)
• Both axis need to be labelled, i.e. price and quantity
bought/sold (K2)
• Your diagram must show
an appropriate shift (P1)
• and the consequences (A1) of
the shift, in this case lower
price and lower sales volume
Knowledge = 2 marks
Application = 1 mark
Analysis (consequences) = 1 mark
Knowledge = 2 marks
Application = 1 mark
Analysis (consequences) = 1 mark

7. Levels of Response (LoR): 8 marks –
Assess TWO…
• Must clearly show KNOWLEDGE throughout
• APPLY: use the context/stimulus, as in 4 mark
questions
• ANALYSIS: 2 statements with clear chains of
argument (use lots of connectives).
• EVALUATION: Must show balanced, competing
arguments (one for and one against)
• Depends on? ……The extent?
• How significant?....How difficult? ST vs LT?
• How price elastic is the demand? How competitive is the
market?
• Depends on? ……The extent?
• How significant?....How difficult? ST vs LT?
• How price elastic is the demand? How competitive is the
market?

8. LoR: Assess TWO…Mark Ranges
for 8 marks
Only 3 levels – the higher the level the more marks
The higher the level, the more developed/contextual
your ANALYSIS & EVALUATION should be:
•L1 = 1-2 marks
•L2 = 3-5 marks
•L3 = 6-8 marks

9. Assess two factors that might cause a decrease in the
demand for YOTEL’s cabins - Assess Factor 1 KApAnEv
One factor could be if room rates are higher than
those charged by competitors such as Premier Inn.
Some customers will compare prices before
booking hotel rooms and if there are cheaper
alternatives available in the airport Yotel may see
the quantity demanded fall. However, not all
customers are sensitive to price. Business
travellers may feel that factors such as
convenience, location and service are more
important which means that charging more may
not decrease demand.

10. Assess two factors that might cause a decrease in the
demand for YOTEL’s cabins - Factor 2 KApAnEv
A second factor might be the UK’s current economic
position. In a recession business travel tends to decrease
and as most of the demand for Yotel’s rooms comes from
corporate travellers this could lead to a decrease in
demand. However, if Yotel room rates are lower than
competitors, business travellers might switch away from
more expensive hotels like Hilton to Yotel which could
mean that demand for them will rise when the economy
is in recession.

11. LoR: 10 marks – Assess…
• KNOWLEDGE: Start with an clear description/definition
• APPLY: use the context, considering both quantitative
and qualitative information – when provided
• ANALYSIS: 2 clear paragraphs which COUNTERBALANCE
each other (e.g. pro’s v’s con’s). Use clear chains of
argument (i.e. connectives)
• EVALUATION: final paragraph; analysis must lead to a
SUPPORTED JUDGEMENT
Which option is the most
appropriate for the business
at present?
• Depends on? The extent to which?
• How significant/difficult?
• Use MOPS, e.g. How important
are profits? How price elastic is
the product/service? How
competitive is the market? Is
there an economic downturn?
• Depends on? The extent to which?
• How significant/difficult?
• Use MOPS, e.g. How important
are profits? How price elastic is
the product/service? How
competitive is the market? Is
there an economic downturn?

12. LoR: Mark Ranges for 10 marks
Broadly,
•Knowledge = 2 marks
•Application = 2 marks
•Analysis = 3 marks
•Evaluation = 3 marks
Broadly,
•Knowledge = 2 marks
•Application = 2 marks
•Analysis = 3 marks
•Evaluation = 3 marks
• L1 = 1-2 marks
• L2 = 3-5 marks
• L3 = 6-8 marks
• L4 = 7-10 marks
Need to show DEPTH of
understanding in analysis
and evaluation to get L4;
use MOPS
Need to show DEPTH of
understanding in analysis
and evaluation to get L4;
use MOPS

13. Assess the importance to YOTEL of having a flexible
workforce – Assess argument for/against 1:
(Key: KApAnEv)
Flexibility can mean having employees who have been trained
to perform a variety of different jobs and functions within the
hotel, such as working behind the bar or as a chambermaid.
This flexibility can allow Yotel staff to be moved around to
where they are needed in response to customer demand,
which should help Yotel provide better customer service and
so stay competitive. Achieving this flexibility, however, may
come at a cost as more money may have to be spent on staff
training to ensure that they have the range of knowledge and
skills necessary to actually be flexible. Also, some employees
may not want to do different tasks, such as making beds and
cleaning toilets and so this may cause staff to be motivated
and then adversely affect customer service.

14. Assess the importance to YOTEL of having a
flexible workforce – Assess, argument
for/against 2:
Flexibility can also mean employees working on split shifts or
employed on temporary or zero hours contracts. This would allow
Yotel to deploy staff only when customer demand exists. This might
reduce overall staffing costs as Yotel would not have to pay employees
during certain times of the day or times of the year, for example
weekends when there might be fewer business travellers, when room
bookings might be lower. These cost savings could be passed on to
customers and enable Yotel to stay price competitive. However, there
may be problems of motivating staff who would not have the security
of permanent contracts with regular hours. This insecurity would
possibly lead to lower levels of staff loyalty and, furthermore, higher
staff turnover which could increase long term recruitment costs.

15. Assess the importance to YOTEL of having
a flexible workforce- Key: KApAnEv
Of the two, the flexibility of multi-skilled staff is probably
the more important as Yotel’s business relies on having a
reputation for good customer service to ensure repeat
business. This is more likely to be achieved through having
staff who can do all the jobs necessary from checking-in, to
cleaning rooms. Flexible workers may reduce staffing costs
on the whole, but such employees may be less likely to
want to go the ‘extra mile’ in providing excellent service,
which might ultimately reduce sales, revenues and profits.

16. LoR: 20 marks – Evaluate the two
options and Recommend…
• KNOWLEDGE: Start with a clear description/definition
• APPLY: use the context, using both quantitative and
qualitative information when provided
• ANALYSIS: 2 clear paragraphs which COUNTERBALANCE each
other (e.g. pros vs cons). Use developed, clear chains of
argument (connectives) drawing on wide ranging
ideas/subject knowledge/real world examples
• EVALUATION: final paragraph; analysis must lead to a
supported judgement & justified RECOMMENDATION
• Depends on? The extent?
• How significant? How difficult?
• Short term…but longer term… ’
• How price elastic is the demand?
• How competitive is the market?
• Depends on? The extent?
• How significant? How difficult?
• Short term…but longer term… ’
• How price elastic is the demand?
• How competitive is the market?

17. Q3: Synoptic Question – Draws on spec
content in Themes 1 and 2.
LoR: Mark Ranges for 20 marks
• L1 = 1-4 marks
• L2 = 5-8 marks
• L3 = 9-14 marks
• L4 = 15-20 marks Need to show a depth and
breadth of knowledge,
understanding, application
analysis and evaluation to get
L4; for the top of the mark
range (18-20 marks) = must
have a Justified
Recommendation
Need to show a depth and
breadth of knowledge,
understanding, application
analysis and evaluation to get
L4; for the top of the mark
range (18-20 marks) = must
have a Justified
Recommendation

18. Ryanair could use a competitive pricing strategy OR product
development to improve its profitability.
Evaluate these TWO options and recommend which would be
most suitable for a business, such as Ryanair. (Key: KApAnEv)
A competitive pricing strategy is used by a business when selling a
product or service which is essentially lower than what competitors
are charging. Ryanair use a competitive pricing strategy to help
differentiate themselves from budget airlines, such as Easyjet.
Ryanair advertise at exceptionally low initial prices of £10, and then
charging for extra services, whilst still allowing customers to pay a
significantly lower final price than British Airways. This could have a
positive impact on their profits, as long as they can be sure that the
low prices will entice enough customers to fly with them, in order to
at least have a higher sales volume and then go on to make a profit.
However if, by using a competitive pricing strategy, Ryanair do not
gain enough extra customers to breakeven, this could result in a fall
in their cash. If the mark-up on each ticket is small and not
compensated for by higher sales, then profits may decline.

19. Indeed, though Ryanair may well have other flights at standard
prices which could help support a positive cash flow, they may not
want to lose high amounts of cash through a competitive pricing
strategy for long because Ryanair have very high operating costs,
e.g. fuel and airport charges. Furthermore, Ryanair may need to
ensure sufficient retained profits to enable them to invest in new
aircraft, engine technology and flight computer equipment. Such
product development may be how Ryanair maintain their market
share or even survive. Therefore, it is very unlikely that this kind of
pricing strategy is sustainable in the long term, especially given the
pace of technology.
However, as a budget airline, by pricing competitively, Ryanair
might provide good value for money. So customers on low
disposable incomes may fly more with them. This should maintain
or increase customer numbers and so have a positive impact on
sales revenue and therefore profits. This may be particularly true if
more of Ryanair’s flights fly from economies in recession (Greece)
or where incomes are traditionally lower (Poland)

20. On the other hand, if Ryanair looked to change its market position,
to be a more expensive carrier and so compete with airlines such as
British Airways or Lufthansa, then bigger leg room, quality of free
food on its in-flight menus, bigger baggage allowances, may prove
to be more important to customers, sales and therefore profits
Overall, a competitive pricing strategy may prove more profitable
for Ryanair. If they can afford to initially provide very cheap flights
and can entice enough customers to stay once prices inevitably
increase, it should have a longer term, positive impact on their
revenue and profits. The success will also depend very much on the
economic environment; if the UK is in a recession, customers are
less likely to purchase luxury items such as flights, no matter how
cheap they are. But if the flights are for practical purpose rather
than leisure (transporting workers to and from the UK to Poland),
then competitive pricing may be more important than product
development – especially in the short term