The Student Room Group

can someone mark my a level edexcel business 12 marker

a level edexel business 12 marker- assess the possible impact on upfly of an appreciation on the exchange rate. answer- Due to appreciation in the pound, imports may become cheaper. This may include all imports of fuel efficient aircrafts, and fuel. Overall, costs made decrease and their net profit margin may increase the stop due to higher retain profits, they can invest in more expansions in the European market, and there roots may increase to above 500 roots. Overall, their consumer base may increase, and they may continue to hold the title of the largest airline in the UK by passenger number. This may help them out compete with rivals such as EasyJet. However, this may depend on by how much the pound appreciated by. If we count appreciated by a small amount, costs from imports such as aircraft may decrease by a small amount, hence it may have little effect on profitability.
One disadvantage of the appreciation in the pound may be that exports to other countries such as France and Italy may be more expensive. To cope, they may need to increase prices of flights. They may lose their competitive advantage of being a low cost airline, and may lose loyal customers from around their 20 bases. This may decrease sales, and Upfly's market share in the European market may decrease, and they may hold less dominance in the market, and may be outcompeted by rivals. However, many consumers may not mind the price increase, as Upfly was already a low cost airline. This means that prices may be really similar to most of their rivals, but not higher. This means if they maintain a good record of keeping flights on time, sales may continue to occur, despite any price changes.
To conclude, upfly me be receiving advantages of cheaper imports and disadvantages from more expensive exports. Overall, the advantages of cheaper imports for fuel and aircraft may be more significant. This is because the majority of their customers are from the UK, and may be paying in pounds. This means most customers are not affected by price changes due to the appreciation in the pound, and sales may occur as per normal. Instead, cash flow may improve, due to lower outflows from imports.

Reply 1

Original post by nooriiii
a level edexel business 12 marker- assess the possible impact on upfly of an appreciation on the exchange rate. answer- Due to appreciation in the pound, imports may become cheaper. This may include all imports of fuel efficient aircrafts, and fuel. Overall, costs made decrease and their net profit margin may increase the stop due to higher retain profits, they can invest in more expansions in the European market, and there roots may increase to above 500 roots. Overall, their consumer base may increase, and they may continue to hold the title of the largest airline in the UK by passenger number. This may help them out compete with rivals such as EasyJet. However, this may depend on by how much the pound appreciated by. If we count appreciated by a small amount, costs from imports such as aircraft may decrease by a small amount, hence it may have little effect on profitability.
One disadvantage of the appreciation in the pound may be that exports to other countries such as France and Italy may be more expensive. To cope, they may need to increase prices of flights. They may lose their competitive advantage of being a low cost airline, and may lose loyal customers from around their 20 bases. This may decrease sales, and Upfly's market share in the European market may decrease, and they may hold less dominance in the market, and may be outcompeted by rivals. However, many consumers may not mind the price increase, as Upfly was already a low cost airline. This means that prices may be really similar to most of their rivals, but not higher. This means if they maintain a good record of keeping flights on time, sales may continue to occur, despite any price changes.
To conclude, upfly me be receiving advantages of cheaper imports and disadvantages from more expensive exports. Overall, the advantages of cheaper imports for fuel and aircraft may be more significant. This is because the majority of their customers are from the UK, and may be paying in pounds. This means most customers are not affected by price changes due to the appreciation in the pound, and sales may occur as per normal. Instead, cash flow may improve, due to lower outflows from imports.

Hi I am an A Level Business Student, I would place this response in Level 4 and I think you would score quite highly 10 marks (at least), some improvements I would see are to start with a definition as this gains you a knowledge mark. You chains of analysis are good but I am not sure about the "if we count for" sentence, I do not know whether this is needed here but rather I would place it in the conclusion.

Reply 2

Just ran it though chat GPT….Thanks for sharing your answer you're clearly thinking through both sides of the argument, which is a big part of doing well in a 12-mark question. I’ll give you a rough mark and feedback based on Edexcel A Level Business mark schemes, which reward Knowledge (K), Application (A), Analysis (AN), and Evaluation (EV). Here's a breakdown of how you're doing on each:
💡 Knowledge (2/2)
You clearly understand what appreciation means and how it affects imports and exports. You've referenced relevant business concepts like net profit margin, investment, competitive advantage, and market share so full marks here.
📌 Application (2/2)
You apply your answer well to Upfly. You mention specifics like:

Expanding to “500 routes”

Upfly being the “largest airline in the UK by passenger number”

20 bases

Rivals such as EasyJet All of this shows you’ve thought about how exchange rate changes would affect this business, not just any business.

🔍 Analysis (2/4)
You do attempt some analysis explaining why cheaper imports might increase profitability, and how expensive exports could hurt competitiveness. But your explanation sometimes jumps too quickly to the conclusion without clearly unpacking cause and effect. For example:

You say they’ll increase profits and then expand, but don’t fully explain the chain (cheaper imports lower costs higher retained profits funds for expansion).

You touch on rivals and price competition, but don’t dig deeply into consumer price sensitivity or market dynamics.

To push this into the top band for analysis, try using clearer chains of reasoning and avoid vague statements like "sales may occur as per normal."
🎯 Evaluation (2/4)
You offer both sides that’s great. You also make some evaluative comments like "this may depend on by how much the pound appreciated" and "many consumers may not mind the price increase." Those are good attempts to weigh the significance of impacts.
However, to really hit strong evaluation:

Use words like “depends on,” “in the short vs long term,” “relative to rivals,” or “significance of the impact.”

Your conclusion is a bit vague. It restates points, but doesn’t fully justify why one side is more significant than the other with a well-developed reason.

Final Mark: 8/12
This would probably sit comfortably in Level 3 (7–9 marks), leaning toward the top of that band. With slightly deeper chains of reasoning and a more decisive, justified conclusion, you could easily push into Level 4.
🔧 How to Improve

Be clearer and more structured in your explanation (use "this leads to..." or "as a result...")

Justify your conclusion explain why one impact is more important (e.g., “Fuel is a major cost for Upfly, so a saving here has a large effect on profitability compared to a small drop in export demand.”)

Watch out for spelling and grammar avoid things like “roots” instead of “routes,” “me” instead of “may,” or “the stop” which seems like a typo.

Quick Reply