AQA BUSS3/BUSS4 Revision Thread

Original post by ridazdi

Did anyone agree with the proposal?

15.16% I got, I'm Assuming it's correct due to the majority of people saying they got the same answer.

Reply 442

Myles148

For the final question I said they should go with the proposal if they want to achieve Xenton's objectives of high profitability and growth, I also mentioned at the end that they might want to consider still operating as a premium airline service as well as a budget service as they are still successful and profitable in this market despite the decline in the industry. Does anyone know if you would get marks for making a recommendation like this rather than just purely going with one option?

Reply 443

AdamR2404

Original post by BJO97

I saw that the 2015 figures were included and simply did not feature them as it asked whether they were successful before the appointment of Thea not if she had been successful

Good point. However, surely if you used the figures from 2015 to compare whether the marketing activities had been effective before the appointment that would be right? For example, I calculated that net profit was lower in 2014 compared to 2015 yet in 2014 they were spending more on marketing activities
Do you think that this good app?

Reply 444

ridazdi

4

Original post by jake_97

15.16% I got, I'm Assuming it's correct due to the majority of people saying they got the same answer.

Yes you're completely right. I got that for ARR and 3years and 0.91 months. I went ahead with the proposals solely due to the fact that Thea wanted to embrace disruptive technology and keep it at the forefront o technology suggesting that unit costs will likely decrease which were already set high compared to to industry average and hence, economies of scale can potentially be gained along with saving millions of pounds from maintenance costs and labour costs so the profit growth corporate objective will be met and hence share price will significantly surge which was already low (175p). Sorry I know this is long but this is part of what I wrote and hope I get good marks in the exam.

Reply 445

De Re Publica

2

For question 3 was it viable to (as an argument against) state that because the share price had decreased from 200p to 175p, that the firm shouldn't go ahead with borrowing as potential investors will be less likely to want to invest, which could result in the inability to paypack the borrowed amount via equity?

Reply 446

Original post by jelsom

Do you reckon for question 2 if you spoke about how the marketing was successful as it targeted a lucrative market through differentiation you'd get marks? I wasn't sure if it related to the question seeing as it asked if it was successful not why it was sucsessful. Like I used a lot of data from the marketing table that said what the market prefers and now thinking about it am not sure if I'd get many marks for doing that

Anybody fancy answering my question?

Reply 447

'Anybody fancy answering my question?'

I think that is right, I said this but I used porters generic strategies of differentiation as that strategy in comparison to easy jet or Ryan air who adopts a cost leadership strategy thus Kings' Plc needed to one or the other to be competitive, the lucarative market was the high income earners as stated in the case study

(edited 7 years ago)

Reply 448

Original post by AdamR2404

Good point. However, surely if you used the figures from 2015 to compare whether the marketing activities had been effective before the appointment that would be right? For example, I calculated that net profit was lower in 2014 compared to 2015 yet in 2014 they were spending more on marketing activities
Do you think that this good app?

I'm sure that will likely get you marks, there are several ways you can approach an answer as long as it's reasonable.

(edited 7 years ago)

Reply 449

Original post by BJO97

'Anybody fancy answering my question?'

I think that is right, I said this but I used porters generic strategies of differentiation as that strategy in comparison to easy jet or Ryan air who adopts a cost leadership strategy thus Kings' Plc needed to one or the other to be competitive, the lucarative market was the high income earners as stated in the case study

My hero. Thank you :smile:

Reply 450

De Re Publica

2

Original post by BJO97

'Anybody fancy answering my question?'

I think that is right, I said this but I used porters generic strategies of differentiation as that strategy in comparison to easy jet or Ryan air who adopts a cost leadership strategy thus Kings' Plc needed to one or the other to be competitive, the lucarative market was the high income earners as stated in the case study

Is it true you can achieve GAn from the use of theory such as porter??

Reply 451

De Re Publica

2

How many marks will be needed for an A, B, C ...?

Reply 452

Original post by De Re Publica

Is it true you can achieve GAn from the use of theory such as porter??

If you mean analysis then I think so, obviously I'm not an examiner but your application would be quoting the case study of them saying differentiation and then surely the analysis would be linking it to porters generic strategies

(edited 7 years ago)

Reply 453

Original post by De Re Publica

How many marks will be needed for an A, B, C ...?

It was quite a difficult paper so if I had to guess:

A* - 58
A - 53
B - 46
C - 43

The grade boundaries in business tend to be very close. Somewhere around that though :smile:

Reply 454

Original post by jelsom

My hero. Thank you :smile:

Can you please answer my question now??
'For the investment question, I only worked out pay back period and the current ratio and highlighted other things from the case study, can I still get High marks even though I didn't work out Gearing or ARR?'

Reply 455

Original post by BJO97

Can you please answer my question now??
'For the investment question, I only worked out pay back period and the current ratio and highlighted other things from the case study, can I still get High marks even though I didn't work out Gearing or ARR?'

Sorry I didn't realise you asked a question. I'm not an examiner so can't really be sure. They probably wanted you to work out gearing because the question specifically related to funding the project through debt and that's the appropriate ratio. Current ratio and liquidity probably would have been relevant depending on how you used it. You definitely could still get high marks, depends on how you justified the application from the case study

Reply 456

Original post by jelsom

Sorry I didn't realise you asked a question. I'm not an examiner so can't really be sure. They probably wanted you to work out gearing because the question specifically related to funding the project through debt and that's the appropriate ratio. Current ratio and liquidity probably would have been relevant depending on how you used it. You definitely could still get high marks, depends on how you justified the application from the case study

I actually wrote the hearing answer on the question booklet but didn't include it as I didn't know whether it was right or not.. I also spoke about cash flow not sure if this would be relevant

Reply 457

Hann11