Feedback from exam?!?!

Hi Guys

Comment and leave some feedback about the exam. Stuff that threw you, delightful questions etc.

Here are my thoughts!

Section A

Q1 Break Even Level of Output = FC/CPU: Given it was the main topic of discussion for the entire day I am happy it was the first question so you had it out of the way. Medis... Your arguments with me must have paid off here! I hope you saved your cost-plus knowledge for later... 250 was the right answer

Q2 Leadership Styles: What did I say I thought would come up for sure this year?!?! BOOM He says discuss and agree so he is not paternalistic as they listen but steer towards what they know is right. Democratic is the way forward.

Q3 Stakeholders: Opening hours would mean longer working hours for staff...

Q4 They were clearly wanting to put other objectives before profit for an alternative healthcare (hippy stuff) partnership. Non-for-profit or social enterprise.

Q5 Cost-Plus Pricing: Medis' question! I hope no-one described it as "just like adding value..."

Q6 Market Mapping: Toughie needs to be either C or D. Market niche same as spotting a gap in the market... D is interesting as can you really use a market map to add value and determine competitive advantage? Well you could say I could Add value or increase the price because customers see more quality in my product than I currently have it placed. Also does my company's products have a competitive advantage due to their price, quality, age of customer and so on?

Under exam pressure I would have gone for C and explained that it couldn't be the other two because an entrepreneur would have better methods of doing the other.

However, without the pressure I would say D. I would say that if you picked the wrong one here you shouldn't be too hard on yourself.

Q7 Sources of finance: The tricky, evil question of the year. Clearly could argue both trade credit and commercial bank loan and I hope the mark scheme reflects this. Debentures is long term and share capital is not suitable for a small business so those are easy detractors. Trade Credit you could arguie as its specifically talking about expanding stock levels so their suppliers giving them more credit would help. However, as a small business would they be able to leverage trade credit? Risk of damaging a long-term relationship? I would have gone for Trade Credit because it fits the scenario but I honestly am not sure what the exam board would be looking for.

You could argue a bank loan as it is more likely to be suitable for a small business with a proven "established" track record and Jim & Jean would not be risking a supplier relationship. Also increasing stock levels might require more storage space and expansion of the business which may mean using the loan to get a larger amount of money and expanding other parts of the business.

Q8: Niche Market Ethical business: Television advertising for a regional business? Get out of here! BOOM!
Tough call...

Section B

Q9: Typical pointless question which has no relevance on actual businesses. Characteristics & Motives: They type of person someone is vs what drives them to do what they do.

Case study: Characteristics.

• Confidence (Didnt prepare a business plan as was confident he had enough money) Could also argue a risk-taker with the same example.
• Passionate: (Job failed to match his passion for creativity)

• Hard-Working (Commitment to working long hours)

Case Study: Motives

• Be your own boss (19 years of self-employment)
• Desire to be the best & Personal development (Training, Prestigious Salon, Passion for his business)
• Loads of other stuff to talk about.

Q10: Opportunity Cost: Easy question! Could have talked about the chair he rented, decisions to raise own finance and all sorts of stuff to talk about!

Q11: Interest rates BOOM: I know you will have all absolutely destroyed that question! High price luxery good with well paid clients no doubt given he was located in Worcester and had clients from Stourbridge (Mariah, Brenden & Suleyman apologies as you might not have known these were high income areas). High end salon so limited effects to a certain degree because of his high earning clientele would have been the difference between 7 & 8 marks. And DEPENDS UPON THE RATE OF INFLATION ITSELF! I am note sure how many times I have said this recently.

Q12: Competitive advantage: Easy question for a GCSE paper never mind A-Level. Define Competitive advantage and then let rip with your business knowledge. Elle fashion magazine and training program would have features in my answer.

Q13: Best 12 Marker ever given it was not only split but covering two good topics.

Primary Market research. Focus groups, online questionnaires, Satisfaction of current hair salon staff (for recruitment) and customers (for sales). Higher level will have talked about new area to him so he would be advised to research it properly. However high costs given it may involve travel to London and take up time. Would he not be better off asking a market research company to do this for him instead? However, this might mean they say what he wants to hear so he might not get a true reflection. Does he have the skills to conduct market research himself? Well he "is familiar with factors which affect sales income" and has industry knowledge to support him. I would recommend he either goes on a course or sends a current employee on a course so he conducts the market research effectively or recruits a marketing manager to do this. Opportunity cost with higher outlay however offset by increased knowledge and experience to get the research they need to conduct effectively  He could do it on a temporary contract to begin with so that he can not renew contract if decision is made not to expand or he could also consider the external market research company.

Business Plans: BOOM! No guarantee off success however if he is moving to London will need further capital and it will support his application for finance and help plan cash-flow, marketing etc! I know you will have destroyed this one also.