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Please check the examination details below before entering your candidate information
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Candidate surname Other names
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Centre Number Candidate Number
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Pearson Edexcel Level 3 GCE
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Paper
Time 2 hours
9BS0/02
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22 in
Business
20 us
B
Advanced
PAPER 2: Business activities, decisions and strategy
You do not need any other materials. Total Marks
Instructions
• Fill
Use black ink or ball-point pen.
• centrein the boxes at the top of this page with your name,
number and candidate number.
• Answer all questions.
• Answer the questions in the spaces provided
– there may be more space than you need.
Information
• The total mark for this paper is 100.
• The marks for each question are shown in brackets
– use this as a guide as to how much time to spend on each question.
• may use a calculator.
You
Advice
• Read each question carefully before you start to answer it.
• Try to answer every question.
• your answers if you have time at the end.
Check
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Write your answers in the spaces provided.
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Extract A
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Extract from easyJet plc’s annual report 2020
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22 in
2020
20 us
B
£m
Non-current liabilities 2 748
Total equity 1 899
EasyJet plc’s gearing for 2019 was 45.67%
(Source: adapted from https://corporate.easyjet.com/~/media/Files/E/Easyjet/pdf/investors/
agm/agm-dec-2020/annual-report-2020.pdf )
Extract B
Why is the budget airline industry struggling?
In 2019, budget airline Flybmi and travel business Thomas Cook both collapsed.
“The aviation industry is struggling with rising costs,” says Loizos Heracleous, Professor
of Strategy at Warwick Business School. “Aeroplanes are expensive assets with few
alternative uses, which limits the ability of airlines to reduce their capacity during lean 5
periods. Airlines also have to deal with fluctuating expenses like fuel, which accounts for
around a third of total costs.”
Delayed flights, cramped seating, inconvenient flight times and poor service are common
customer complaints, which have damaged the reputation of many budget airlines.
Customers share their experiences on social media, resulting in widespread bad publicity. 10
Alex Brummer, City Editor for the Daily Mail, argues that there is a far greater problem
for budget airlines: “The rise of a new generation of budget airlines, challenging the
dominance of easyJet and Ryanair, means that there is huge overcapacity in the industry.
As the number of seats exceeds the number of travellers, prices have been pushed down”.
(Source: adapted from https://www.theweek.co.uk/105222/flybe-saved-but-why-is-the-
airline-industry-struggling)
2
*P65657A0224*
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Extract C
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Jet fuel price ($/barrel) November 2013 – November 2020
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