AQA AS BUSS2 - 21/05/12 - discussion

I USED IT!!!! HAHA THANK GOD SOME1 ELSE USED IT. i used it on the question about the business charging 10% higher than competitors question! (-2.0) means it has an elastic PED. this means that raising prices will reduce its revenues. i argued they shudn raise prices becos the nature of the elasticity of their services is elastic so raising prices will only see them losing revenue, due to the fact that the other competitors act as substitute services for customers. did u write a similar point?

this sounds alot like my exam paper, and im in same position as you, got full UMS in first paper! what other subjects u do?

this sounds alot like my exam paper, and im in same position as you, got full UMS in first paper! what other subjects u do?

Nooooo




forgot to add anything after -3 and +3 are also elastic

I put it's inelastic then applied it i.e. could charge higher price as change in price is not equal to change in quantity demanded?

Nooooo




forgot to add anything after -3 and +3 are also elastic

I'm in Year 10 and I'm just doing Business Studies as an extra, doing A2 after this. Considering Economics for sixrh form.




PeD cannot be positive. A increase in price. must result in a decrease in demand and vice versa, it's just how much it changes which affect the value, not the minus sign. Of course that's in business I'm not sure about Economics though. :P

for the cashflow/profitability question i went with cashflow. in short, one of the most profitable businesses (google) had low net profit margins as it expanded but now rakes it billions of profits. PERIOD!
cashflow is of greater importance becoz if u dont have cash to pay ur bills u ain gonna survive. (MY LOCAL KEBAB SHOP CAN VOUCH FOR THAT lol) ALSO ANOTHER CLASSIC POINT I BET NO1 ELSE WROTE ABOUT- its a company with a divorce between ownership and control. i.e the shareholders and major stake holders are not the ones running it. therefore the CEO wud be more interested in expanding and growth and lesser emphasis on profitability in the SR! rather making jus enuf to satisfy shareholders but focusing on expanding.

Pretty easy paper, was better than I expected it to be. I'm guessing an A would be 55/56 raw, B would be 49/50 raw and full UMS around 65-ish. I'm riding on a 100% UMS in Unit 1 so I think I'm much guaranteed an A for the AS, getting full UMS on this one would be a huge bonus for A2. Pretty confident on getting an A.

Just some stuff I put on the questions:

1 a) Solutions to poor levels of customer service: nearly read the whole thing wrong and was about to write the causes/reasons for this one. Methods were like getting pressure of staff, but I couldn't remember what I put already. :P

1 b) Delegating budgets: Positives are motivational, managers know the situation of individual sites, negatives are lack of market research (budget for that has shrunk by 1.5 million) causes inaccuracy, inexperience in managers, etc.

1 c) Should price be set 10% above competitors: Yes, TT Ltd wants to offer 'unique experience', quality might be a USP and price reflects that. No, price is elastic (-2.0) and will lose customers.

1 d) Effectiveness of piece rate (which is what the method described was): Yes according to Taylor, higher customer numbers = more revenue. No because causes extra stress, staff are already dissatisfied.

2 a) Labour productivity: 4320/60 = 72 tonnes of mussels per worker/employee

2 b) Marketing mix: Promotion, unknown to European market, needs heavy marketing. Price, might need to use penetration pricing to gain market share in new market. I only write those two and extended on them.

2 c) TQM: Yes because reduces wastage, takes time to harvest mussels so company needs to avoid wastage. No because workforce hasn't been consulted, might be reluctant to change, costs a lot.

2 d) Cash flow VS profitability: This question has come up like 3 times already?! The values are pretty much all there. Not going into detail for that.

for the cashflow/profitability question i went with cashflow. in short, one of the most profitable businesses (google) had low net profit margins as it expanded but now rakes it billions of profits. PERIOD!
cashflow is of greater importance becoz if u dont have cash to pay ur bills u ain gonna survive. (MY LOCAL KEBAB SHOP CAN VOUCH FOR THAT lol) ALSO ANOTHER CLASSIC POINT I BET NO1 ELSE WROTE ABOUT- its a company with a divorce between ownership and control. i.e the shareholders and major stake holders are not the ones running it. therefore the CEO wud be more interested in expanding and growth and lesser emphasis on profitability in the SR! rather making jus enuf to satisfy shareholders but focusing on expanding.

wtf your in year 10 and doing AS Business.

I know its not always positive because of the way the demand curve is sloping but you don't need to know all that in business studies so its easier to remember if its not in the range of 0 to -1 then its elastic

wow thats defo an A! well done yo

But you need the money to be able to pay the bills, hence profitability which can be used to pay total costs and provide profits.

I wrote in that question that cashflow is needs to be solved immediately while profitability is long-term and changes in the European market can either help and worsen the situation.



Really want to do Economics now cos' I'm really interested in that subject. Guess I'll have to wait 2 more years.




Thanks! Hope you will get a good grade as well!

Pretty easy paper, was better than I expected it to be. I'm guessing an A would be 55/56 raw, B would be 49/50 raw and full UMS around 65-ish. I'm riding on a 100% UMS in Unit 1 so I think I'm much guaranteed an A for the AS, getting full UMS on this one would be a huge bonus for A2. Pretty confident on getting an A.

Just some stuff I put on the questions:

1 a) Solutions to poor levels of customer service: nearly read the whole thing wrong and was about to write the causes/reasons for this one. Methods were like getting pressure of staff, but I couldn't remember what I put already. :P

1 b) Delegating budgets: Positives are motivational, managers know the situation of individual sites, negatives are lack of market research (budget for that has shrunk by 1.5 million) causes inaccuracy, inexperience in managers, etc.

1 c) Should price be set 10% above competitors: Yes, TT Ltd wants to offer 'unique experience', quality might be a USP and price reflects that. No, price is elastic (-2.0) and will lose customers.

1 d) Effectiveness of piece rate (which is what the method described was): Yes according to Taylor, higher customer numbers = more revenue. No because causes extra stress, staff are already dissatisfied.

2 a) Labour productivity: 4320/60 = 72 tonnes of mussels per worker/employee

2 b) Marketing mix: Promotion, unknown to European market, needs heavy marketing. Price, might need to use penetration pricing to gain market share in new market. I only write those two and extended on them.

2 c) TQM: Yes because reduces wastage, takes time to harvest mussels so company needs to avoid wastage. No because workforce hasn't been consulted, might be reluctant to change, costs a lot.

2 d) Cash flow VS profitability: This question has come up like 3 times already?! The values are pretty much all there. Not going into detail for that.

Remember profitability isn't a necessity whereas cash flow is. Cash flow is the day to day operating costs, and profitability is the icing on the cake so to speak. That can be used for reinvestment and more powerful marketing campaigns.

haha and ur still in yr10! God dayyyum u are a fccckin Genius! u shud be proud son. Economics is much more interesting im doin it!

Any idea what you put for the first one? the rest looks similar to my paper, however I really can't remember what I put for the first answer....

money to pay the bills is cash! profit is TR-TC. u dont need profits to pay bills. u cud use profits, but it ain the only way.
profit is like blood and cashflow is like oxygen. we need both for the organisation to do well. lack of one may put u in **** street in short

gotta deal with the 40 markers in BUSS4 first next year LOL :P



Ah I remembered it just now. Other than taking workload off, I wrote that the 65% training for health and safety is too much, and some of it can be switched to training of customer service. Or that the NPM is high so they can afford to use extra money for training, etc/

I put about rehanging the organizational structure in order to decrease the amount of workload that members of staff were experiencing