Official June 2024 AQA A-LEVEL BUSINESS 7132/3 Paper 3 Business 3 Merged Question Paper + Mark Scheme + Insert Ace your Mocks!!! *jun247132301* IB/G/Jun24/G4004/E6 7132/3 For Examiner’s Use Question Mark 1 2 3 4 5 6 TOTAL Thursday 6 June 2024 Morning Time allowed: 2 hours Materials For this paper you must have: • a calculator • the Insert. Instructions • Use black ink or black ball-point pen. • Fill in the boxes at the top of this page. • Answer all questions. • You must answer the questions in the spaces provided. Do not write outside the box around each page or on blank pages. • If you need extra space for your answer(s), use the lined pages at the end of this book. Write the question number against your answer(s). • Do all rough work in this answer book. Cross through any work you do not want to be marked. Information • The marks for questions are shown in brackets. • The maximum mark for this paper is 100. Please write clearly in block capitals. Centre number Candidate number Surname Forename(s) Candidate signature I declare this is my own work. A-level BUSINESS Paper 3 Business 3 2 *02* IB/G/Jun24/7132/3 Do not write outside the box 0 1 Analyse how Speed-e-Puds Ltd benefits from operating with a high level of capacity utilisation. [12 marks] Answer all questions. Read the case study in the Insert. 3 *03* Turn over ► IB/G/Jun24/7132/3 Do not write outside the box Extra space 4 *04* IB/G/Jun24/7132/3 Do not write outside the box 12 5 *05* Turn over ► IB/G/Jun24/7132/3 Do not write outside the box 0 2 Sanjay has a marketing objective of achieving a 15% market share within 3 years. Analyse the factors that influenced Sanjay’s decision to set his marketing objective at a 15% market share. [12 marks] 6 *06* IB/G/Jun24/7132/3 Do not write outside the Extra space box 7 *07* Turn over ► IB/G/Jun24/7132/3 Do not write outside the box 12 8 *08* IB/G/Jun24/7132/3 Do not write outside the box 0 3 Should Sanjay add ‘slushy’ machines to his three branches? Use quantitative and qualitative information and calculations to support your answer. [16 marks] 9 *09* Turn over ► IB/G/Jun24/7132/3 Do not write outside the box Extra space 10 *10* IB/G/Jun24/7132/3 Do not write outside the box 16 11 *11* Turn over ► IB/G/Jun24/7132/3 Do not write outside the box 0 4 To what extent is Sanjay’s use of SWOT analysis likely to help his strategic planning? Use information from Appendix C and the other information provided to justify your answer. [16 marks] 12 *12* IB/G/Jun24/7132/3 Do not write outside the box Extra space 13 *13* Turn over ► IB/G/Jun24/7132/3 Do not write outside the box 16 14 *14* IB/G/Jun24/7132/3 Do not write outside the box 0 5 Sanjay is considering two options for the growth of Speed-e-Puds Ltd. Would you advise him to choose Option 1 or Option 2? Justify your answer. [20 marks] 15 *15* Turn over ► IB/G/Jun24/7132/3 Do not write outside the box Extra space 16 *16* IB/G/Jun24/7132/3 Do not write outside the box 17 *17* Turn over ► IB/G/Jun24/7132/3 Do not write outside the box 20 18 *18* IB/G/Jun24/7132/3 Do not write outside the box 0 6 A key feature of Sanjay’s business is differentiation provided by his innovative, speedy waffle maker. To what extent is successful innovation essential for all businesses choosing a strategy of differentiation? [24 marks] 19 *19* Turn over ► IB/G/Jun24/7132/3 Do not write outside the box Extra space 20 *20* IB/G/Jun24/7132/3 Do not write outside the box 21 *21* Turn over ► IB/G/Jun24/7132/3 Do not write outside the box 22 *22* IB/G/Jun24/7132/3 Do not write outside the box 23 *23* Turn over ► IB/G/Jun24/7132/3 Do not write outside the box 24 *24* IB/G/Jun24/7132/3 Do not write outside the box END OF QUESTIONS 24 25 *25* IB/G/Jun24/7132/3 Do not write outside the There are no questions printed on this page box DO NOT WRITE ON THIS PAGE ANSWER IN THE SPACES PROVIDED 26 *26* IB/G/Jun24/7132/3 Do not write outside the box Question number Additional page, if required. Write the question numbers in the left-hand margin. 27 *27* IB/G/Jun24/7132/3 Do not write outside the box Question number Additional page, if required. Write the question numbers in the left-hand margin. 28 *28* IB/G/Jun24/7132/3 Do not write outside the box Question number Additional page, if required. Write the question numbers in the left-hand margin. Copyright information For confidentiality purposes, all acknowledgements of third-party copyright material are published in a separate booklet. This booklet is published after each live examination series and is available for free download from www.aqa.org.uk. Permission to reproduce all copyright material has been applied for. In some cases, efforts to contact copyright-holders may have been unsuccessful and AQA will be happy to rectify any omissions of acknowledgements. If you have any queries please contact the Copyright Team. Copyright © 2024 AQA and its licensors. All rights reserved. *246A7132/3* IB/G/Jun24/G4004/E3 7132/3 Insert Source 1: Speed-e-Puds Ltd A-level BUSINESS Paper 3 Business 3 2 IB/G/Jun24/G4004/7132/3/INS Sanjay opened the first branch of Speed-e-Puds Ltd after seeing the huge growth in the dessert parlour market during the last 10 years. Driven by franchise brands such as Creams and Treatz, there are now just over 500 dessert parlours in the UK, serving waffles, pancakes and ice cream in eat-in restaurants. Sanjay has developed a patented waffle maker, the ‘SuperWaffler’, which cooks perfect waffles in less than half the time of other waffle makers. This innovation is central to Speed-e-Puds Ltd’s customer offer – ‘desserts as tasty as anywhere, served twice as fast’ – a unique selling point that appeals to its target market of young families and teenagers. Despite his engineering background, Sanjay sees himself primarily as an entrepreneur. Sanjay now owns three successful Speed-e-Puds Ltd branches just one year after he opened his first. All three branches are very busy throughout the day, operating at high levels of capacity utilisation. This success has made Sanjay impatient to grow the business further. He believes that a Speed-e-Puds Ltd outlet in 75 cities in the UK would enable him to achieve the marketing objective he has set: Achieve a 15% share of the UK dessert parlour market in the next three years A new product? Sanjay is considering offering a new product through his Speed-e-Puds Ltd branches – slushies. These flavoured, crushed-ice drinks are served from a large machine that would take up a significant proportion of the counter in each Speed-e-Puds Ltd branch. Detailed financial information on the slushy machines has been provided by the slushy machine supplier and is shown in Appendix B. Sanjay’s personal financial objective is to achieve a return on investment of 25% on any money invested in his business. Growth Sanjay knows that opening new branches is critical to achieve his marketing objective. He faces a choice over which method of growth to use: Option 1 Sanjay could retain tight control over Speed-e-Puds Ltd by growing purely organically. All new branches would be part of the Speed-e-Puds Ltd organisation, with Sanjay frequently meeting the managers that he appoints to run these branches. Option 2 Sanjay could sell Speed-e-Puds Ltd franchises to entrepreneurs who are interested in owning their own Speed-e-Puds Ltd franchised outlet. In return for an initial franchise fee and a monthly payment of 10% of revenue, franchisees would be allowed to use Sanjay’s patented ‘SuperWaffler’. Franchisees would also receive training and support for running their business and Speed-e-Puds Ltd would provide national advertising of the brand. Sanjay produced a SWOT analysis for his business to help him with the decision provided in Appendix C. 5 10 15 20 25 30 35 40 3 IB/G/Jun24/G4004/7132/3/INS Turn over ► Appendix A Speed-e-Puds Ltd financial data for last year (three branches) Revenue £750 000 Operating profit £200 000 Cash £20 000 Current ratio 0.2 : 1 Gearing ratio 90% Total equity £100 000 Average start-up cost per branch £100 000 Appendix B Slushy machines Initial cost of buying each slushy machine £750 Contribution per slushy 95p Slushy machine supplier’s forecast of number of slushies sold per branch per year 3600 Increased electricity usage each year per branch £3000 The machines are expected to have a useful life of five years.