Decision-Making Techniques (Edexcel A Level Business)

Exam Questions

58 mins8 questions
1
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4 marks

Read the following extracts (E to H) before answering

Innocent Drinks has constructed the network diagram below to plan the launch of a new line of smoothies. Each number represents how many days each activity is estimated to take

q2-paper2-june2017-edexcel-alevel-business

Using the data in the network diagram above, calculate the Earliest Start Times (EST) and Latest Finishing Times (LFT) for each activity and identify the critical path

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2
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4 marks

Read the following extracts (A to D) before answering

For people in developing countries, purchasing a pair of VisionSpring glasses may be considered as an investment

Using the data in Extract B, calculate the average rate of return from purchasing a pair of glasses. You are advised to show your working

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3
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4 marks

Read the following extracts (A to C) before answering

Tended Ltd has constructed the decision tree below to help it decide whether to develop a new smartwatch or launch a new marketing campaign

q1a-paper2-oct2020-edexcel-alevel-business

The net gain for the new smartwatch is £1.3 million

Using the data in the decision tree, calculate the net gain for the marketing campaign. State your answer to two decimal places. You are advised to show your working

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4
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4 marks

Read the following extracts (E to H) before answering

The Chief Executive has calculated the new bathroom project will not meet its payback target of three years

Using the data in Extract F, calculate the difference in the payback period compared to the Chief Executive’s target. You are advised to show your working

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54 marks

Read the following extracts (E to G) before answering

Explain one limitation of quantitative sales forecasting for Zara

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1
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10 marks

Read the following extracts (E to H) before answering

Buy it Direct’s new Operations Director is in charge of installing a new IT system for the warehouses. This project must be completed within 45 weeks. The Operations Director has produced the following network diagram:

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Activity A: Identify problem

Activity B: Consult with software supplier

Activity C: Recruit staff

Activity D: Staff training Activity E: Discuss IT solution

Activity F: Order equipment from suppliers

Activity G: Implementation and testing

Assess the limitations of using Critical Path Analysis (CPA) to manage the installation of the new IT system

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28 marks

Read the following extracts (E to H) before answering

Assess two limitations for Buy It Direct of carrying out investment appraisal before setting up the new bathroom division

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1
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20 marks

Read the following extracts (A to D) before answering

Live the Adventure Ltd is deciding whether to expand its existing operations or to offer winter activity holidays in Europe in order to grow

Using the data in Extract D, calculate the values of A, B, C and D and, using other non-financial information, evaluate these two options

Recommend which one of these two options Live the Adventure Ltd should choose in order to grow

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