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1 Candidate Name Centre Number 2 Candidate Number GCE AS/A level 1081/01 New AS BUSINESS STUDIES BS1 A.M. THURSDAY, 8 January hours For Examiner s Use Only Question Maximum Mark Examiner s Mark Total 50 INSTRUCTIONS TO CANDIDATES Answer all the questions in the spaces provided. Write your name, centre number and candidate number in the spaces at the top of this page. INFORMATION FOR CANDIDATES Mark allocations are shown in brackets. You are reminded that assessment will take into account the quality of written communication used in answers that involve extended writing (question 5 (b)). VP*(W )
2 2 Examiner Answer all the questions in the spaces provided. 1. PERSONAL DEBT IN THE UK REACHES RECORD LEVELS If people were to limit their spending mainly to things that they really need and were to spend less on things that they want, there would not be such a problem in the UK of rising personal debt. With the use of examples, explain the difference between needs and wants. [4] Total Mark 2. MORE POST OFFICE CLOSURES The Post Office, which is part of the public sector, recently announced plans to close of its branches because it was losing 4m a week. After these closures, the Government is still going to pump a 150m annual subsidy into a network in which of the remaining branches will be profitable. In what ways do the aims and objectives of the public sector differ from those of the private sector? [4] Total Mark
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4 4 Examiner 3. WELSH RUGBY UNION SIGNS 10m DEAL FOR NEW KIT The Welsh Rugby Union (WRU) has unveiled a new four-year kit deal believed to be worth more than 10m. American company Under Armour will replace Reebok as the new kit supplier, for all the Welsh rugby international teams and support staff, under the deal which will begin in the autumn of The WRU said the company s new kit will be based on technology used to produce kit for top American football teams. It will be used for Wales s internationals in November. The WRU said the company s design and manufacture teams had been studying Welsh rugby and its history and heritage, as part of its market research. Adapted from news.bbc.co.uk, 14 February 2008 (a) Adapt the demand and supply diagram below and explain what might happen to the price of replica Welsh rugby shirts if the Welsh team is more successful. [4] Price of Welsh replica rugby shirts Supply p1 0 q1 Demand Quantity demanded and supplied of replica Welsh rugby shirts.
5 5 Examiner Turn over. (b) Explain two factors, other than the success of the Welsh rugby team, that may influence the demand for replica Welsh rugby shirts. [4] (i) (ii) (c) Consider the view that the primary market research carried out by Under Armour is of much greater value to the business than its secondary market research. [6] Total Mark
6 6 Examiner 4. DUTTSONROCKS Six months in the Royal Marines followed by six years as a DJ is perhaps not the most obvious route to starting up a business selling diamonds. Neil Duttson left school with no qualifications and at 26 he realised that his life was going nowhere. It was at this point he started thinking about diamonds. I had always had a passion for diamonds. When I was 18, I bought a book on gemology, said Duttson. He searched the internet and found a school in Antwerp that ran a sixmonth course. He mortgaged his flat and took out equity to pay for the course and support himself while doing it. He said: I loved it. At the weekends I travelled around Europe going into jewellery shops pretending I was getting engaged. Armed with his new-found knowledge, Duttson set himself up as a diamond jeweller. Duttson s first clients were friends who were getting engaged. Without funds to buy stock, he adopted the innovative approach of showing potential customers a selection of fakes in every single cut and shape of diamond, and when they had chosen and paid a deposit, would he buy the real diamond. The diamond was then passed on to a jeweller to be made into a ring. Neil Duttson was successful and in 2002 he formed DuttsonRocks Ltd. Adapted from the Sunday Times, 2 September 2007 (a) In what ways does Neil Duttson exhibit the characteristics of a typical entrepreneur? [6]
7 7 Examiner (b) Evaluate Neil Duttson s decision to change from operating as sole trader to setting up as a private limited company. [8] Total Mark Turn over.
8 8 Examiner 5. RECOVERY STRATEGY PAYS OFF FOR THORNTONS It s chocolate season - Valentine s Day, Mother s Day, and Easter are all in close succession, and Thorntons has been innovating on products to lure chocolate lovers into its stores. Thorntons Moments, described as a family treat, are just hitting the shops shelves this week. Further work is also under way on design and layout, and the new look will be trialled at 10 stores this summer. Mike Davies, the chief executive, joined Thorntons from Mars in October 2006, pledging to revive the fortunes of the company which began as a single shop in Sheffield in His recovery strategy appears to be paying off. Yesterday, Thorntons reported a 14% jump in half-year profits as it notched its fifth successive quarter of sales growth. Revenues rose 13.9% to 126.7m in the 28 weeks to 12 January while profits increased to 11.9m from 10.5m. Thorntons trades from 378 owned stores and 252 franchises and its products are also available through supply deals with major supermarkets and retailers. Its website and catalogue service, Thorntons Direct is also making steady progress, enjoying revenue growth of 25.6% to 5.3m in the period. Cliff Feltham, The Independent, 21 February 2008 (a) Outline two economies of scale that Thorntons will benefit from if it continues to be successful. [4] (i) (ii)
9 9 (b) Discuss the view that the expansion of Thorntons should take place through franchising rather than opening more of its own stores. [10] Total Mark Examiner
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GCE AS/A level 1131/01 ECONOMICS EC1
Surname Other Names Centre Number 2 Candidate Number GCE AS/A level 1131/01 ECONOMICS EC1 A.M. MONDAY, 13 May 2013 1 hour For s use Maximum Question Mark 1 3 2 10 3 4 4 4 5 3 6 10 7 8 8 8 Total 50 Mark
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