Pearson Edexcel Level 3 GCE/2020 A Level Business Studies Question Paper 1 with Marking Scheme

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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. 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.   Estimates of price elasticity of demand (PED) of car brands   Brand PED Audi –4.63 Ford –2.75 Land Rover –6.75 Suzuki –1.64 Toyota –2.65 Volkswagen –2.31   Extract E           600M (Source: adapted from https://repository.library.northeastern.edu/ files/neu:349589/fulltext.pdf) Current and projected number of ridesharing users, globally Numbers are in millions of people. 539.49 500.17 480M 360M 240M 207.38 120M 272.68 338.00 399.09 453.42 0M 2015        2016         2017         2018         2019        2020         2021 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 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                  5 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                                  10 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.                                          15 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://qz.com/1200878/ with-uber-in-crisis-ola-zooms-ahead-in-indias-taxi-wars/ and https://www.theverge.com/2017/6/30/15904510/uber- open-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          5 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.”                     10 (Source: adapted from https://auto.ndtv.com/news/ford-and-mahindra- confirm-jointly-developed-suvs-electric-car-for-india-1827425) 2        (a) In 2019 the price of a Ford Endeavour rose from 30m Rupee to 30.9m 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. b Explain one way the Indian government might use legislation to protect the Indian ridesharing market from non-Indian businesses (c)     Assess the likely future growth of ridesharing businesses in an emerging economy, such as India. d Assess the likely consequences for Ford of its joint venture with Mahindra. 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. [Show More]

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