9609_w24_qp_21
A paper of Business Studies, 9609
Questions:
2
Year:
2024
Paper:
2
Variant:
1
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1
Farm Equipment (FE) FE is a public limited company based in country Z, where the primary sector accounts for 40% of all employees. Farm produce from country Z is sold to many other countries. FE manufactures a range of farm equipment such as tractors and machinery. It sells its products to large farms. Farmers have remained loyal despite the availability of lower-cost farm equipment. FE’s current market share in country Z is 8%. However, the market for farm equipment in country Z is growing and FE forecasts an increase in its market share, as shown in Table 1.1. Table 1.1 The market for farm equipment in country Z Year ($m) 2024 ($m) Market size FE’s revenue 22.8 29.45 Chuzi, FE’s Managing Director, would like to develop new types of farm equipment. Chuzi recently appointed Lin, an intrapreneur tasked with developing new products. FE’s employees would like to join a trade union as they have low morale. They believe that management do not consider the welfare of the workforce. The employees feel that they have a poor work-life balance. FE does not offer any training and development opportunities. The management style is autocratic. BL, a multinational farm equipment manufacturer, has recently located a factory close to FE. The management at FE is concerned about the impact of this on its human resource management (HRM). Identify one feature of the primary sector. Explain the term intrapreneur. Refer to Table 1.1 and other information. Calculate the forecast change in FE’s market share between 2023 and 2024. Explain one benefit to FE of product development. Analyse two roles that FE has in the development of country Z. Evaluate the likely impact on FE’s HRM of the new BL factory.
2. Human resource management (AS Level)  →  2.1. Human resource management (HRM)
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2
Coffee Company Local (CCL) CCL is a family business in country Y. It manufactures and sells coffee powder, which is used to make coffee drinks. To make coffee powder CCL transforms coffee beans purchased from primary sector businesses into a fine powder. To make the powder, CCL roasts the beans, then grinds them into large pieces. Hot water is added to these large pieces, which transforms them into a liquid. When this liquid is cool, it is frozen and broken into tiny pieces that form the coffee powder. The coffee powder is then put in jars. CCL uses product differentiation when selling the jars of coffee, as shown in Table 2.1. Table 2.1 CCL’s coffee products Product Description Boston matrix analysis Forecast proportion of total revenue (2024) A CCL’s own brand Cash cow 29% B A national supermarket’s own label product Question mark 30% C Quality product sold in a niche market Question mark 15% D Non-branded product sold to wholesalers Cash cow 26% In 2023 CCL’s total revenue was $10 million. Total revenue is forecast to increase by 10% in 2024. The owners are concerned about CCL’s long-term future, given the position of each product within the Boston Matrix. The market for coffee products in country Y is forecast to grow by 25% over the next five years. CCL would like to increase the added value of its coffee products to benefit from the forecast market growth. Identify one strength of a family business. Explain the term niche market. Refer to Table 2.1 and other information. Calculate the forecast total revenue of product C in 2024. Explain one benefit to CCL of using a budget. Analyse one advantage and one disadvantage to CCL of using Boston Matrix analysis. Evaluate the importance of operations to CCL’s added value.
8. Marketing (A Level)  →  8.1. Marketing analysis
3. Marketing (AS Level)  →  3.3. The marketing mix
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