AQA A LEVEL BUSINESS PAPER 2 MAY 2024 QUESTION PAPER (7132-2) BUSINESS 2
Biggs Ltd operates in the snack food market, selling crisps, nuts and other savoury products. Potatoes are a key ingredient in its snacks. The price of potatoes has risen by 35% over the last two years.
The company is one...
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A-level
BUSINESS
Paper 2 Business 2
Tuesday 21 May 2024 Morning Time allowed: 2 hours
Materials For Examiner’s Use
For this paper you must have:
• a calculator. Question Mark
1.1
Instructions 1.2
• Use black ink or black ball-point pen.
1.3
• Fill in the boxes at the top of this page.
• Answer all questions. 1.4
• You must answer the questions in the spaces provided. Do not write 2.1
outside the box around each page or on blank pages. 2.2
• 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). 2.3
• Do all rough work in this answer book. Cross through any work you 3.1
do not want to be marked. 3.2
3.3
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• The marks for questions are shown in brackets. TOTAL
• The maximum mark for this paper is 100.
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IB/G/Jun24/G4004/E6 7132/2
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outside the
Answer all questions in the spaces provided. box
0 1 Read the information below and then answer the questions that follow.
Biggs Ltd
Biggs Ltd operates in the snack food market, selling crisps, nuts and other savoury
products. Potatoes are a key ingredient in its snacks. The price of potatoes has risen by
35% over the last two years.
The company is one of six firms who dominate a market that has been growing strongly for
ten years. The market growth is largely due to the development of new snacks designed
for children. However, Biggs Ltd’s market share has been falling since 2019.
Biggs Ltd plans to launch a completely new range of products in 2024. It will promote this
by sponsoring a major televised sporting competition which has children and families as its
audience.
Appendix A Extract from Biggs Ltd’s recent financial statements
2023 2022
£000s £000s
Revenue 47 569 46 994
Gross profit 22 289 22 820
Operating profit 4 650 4 701
Payables 5 056 5 221
Appendix B Labour productivity for Biggs Ltd and the snack food industry average
(shown as an index number, base year = 2017)
Year Biggs Ltd Industry average
2020 104.2 104.3
2023 100.3 105.9
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IB/G/Jun24/7132/2
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outside the
Appendix C Marketing expenditure as a percentage of revenue, 2020–2024* box
* 2024 based on Biggs Ltd’s forecast.
Appendix D Results of market research conducted with families on Biggs Ltd’s new
product range and the promotional campaign
Average survey score by age group
Survey question
6 to 16 17 to 35 36
years years years and over
I will definitely try the new products
9.9 7.2 1.8
when they are available.
The promotional campaign
improves my view of Biggs Ltd’s 8.3 6.3 8.0
brand.
I frequently consume snack foods
8.9 6.9 2.7
at sports events.
Source: Data from 27 interviews with families, conducted by Biggs Ltd in 2021.
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IB/G/Jun24/7132/2
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