AQA Business Studies Unit 2 (BUSS2) Revision thread.

Im bored just finishing Operations Managements

Well done
I am attempting to revise operations management too... Getting so distracted by facebook....

Thats why i disabled mine ....

If anyone has done any past papers or essays could they please post here

tbh tsr is just like facebook as they both are very distracting

Erm is the paper answered?, i just wana see how people attempt it, how much they write and so on.

lol and could you scan i past paper for me aswell please

Erm is the paper answered?, i just wana see how people attempt it, how much they write and so on.

Do you think that going ahead with the expansion plans would increase Two Seasons Ltd’s profits?

Profit is when total costs are taken away from total revenue, this occurs when the business is experiencing a surplus in revenue.

Profit occurs through the amount of revenue a firm makes and this is shown through the level of interest for Two Seasons products. Stuart Roberts stated that Two Seasons Ltd were getting 7000 people a week. This shows that there is demand for their goods. However this is the first week of trading in Derby and it may not be a representative of what it might be in the future. Increased level of customers will mean that revenues can increase and exceed from their other Stores who usually have 2000 to 3000 customers walking through a week. However, this increase in sales and demand does not mean increase in profits. The business still has to pay off interest payments for these expensive stores and this can lead to disappointing net profit levels as it can be seen through the forecasted 2.64% net profit margin which is still in the same boundaries as the previous store’s net profit margins 5 years ago.

On the other hand you can also look at the fact that increase in demand will lead to Two Seasons experiencing economies of scale through bulk buying this would reduce unit costs and lead to increase in profit margins for each product sold.

The costs of setting up in Derby are high it has cost Two Seasons £260,000 for each store this will have negative implications on profits once the interest payments are made in the short term. However, the new location is upmarket and expensive the business will be dealing with new customer base who have higher disposable income and are possibly less sensitive to a change in price. This will allow two Seasons to increase the price charged by adding value through their outstanding customer service which may be recognised more highly by the new customers who will be shopping in Derby. Emphasis of their customer service and higher priced products will lead to higher profit margins and higher net profits in the long term. However, Two Seasons must consider higher prices with regard to price elasticity of demand as increased prices could lead to reduced demand leading to lower sales revenue and reduced profits.

To conclude i believe that Two Seasons LTD will face disappointing profit results in the short term due to the expensive costs of setting up through the interest payments which have to be made to finance this expansion reducing the overall profit levels. Also it may take time for the business to establish itself with this new customer base in the up market region in Derby, which could be shown through lower Sales Revenue. However, the extent to which they make their profits should be based on how quickly they pay off their loan and also how well they promote themselves and promote their ‘outstanding customer service’ which has benefitted them in the past 5 years through higher sales. Therefore in the long term I think this expansion plan is profitable as it will allow the business to benefit though economies of scale if demand remains to be high and is increasing leading to reduced unit costs as fixed costs are spread over larger output and hence increased profit margins and overall net profit once the interest payments have been paid off.

Thanks for reading and for the advice, yeah i do need to work on structuring my answer.

Also one thing i just did an analyse 2 point question and i made 2 points i read the mark scheme afterwards and i realised only one of my points were mentioned.
The question was analyse two points which may effect Just Deserts competitiveness?

i analysed how inefficient and poor their current supplier was and how that could have negative effects on their competitiveness.

Also on how they have a good reputation for traditional production of desert and for quality of deserts.

Only my second point was on the mark scheme so would that mean they wont consider my first point about their supplier and its not a strong point??

The examiner will see that your point was justified and made sense and answered the question so you would still get marks. In the mark scheme they give what they think is most likely to be said by candidates.

naah, trust me, these aqa examiners are stupid ***** that are not even qualified in thier subjects that they are marking so they usually just follow the mark schemes very strictly without using thier initiative even if the answers are right hence why I get poor marks and hate AQA alot!! (rant over)