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0450/22
BUSINESS STUDIES
October/November 2024
Paper 2 Case Study
1 hour 30 minutes
You must answer on the question paper.
You will need: Insert (enclosed)
INSTRUCTIONS
• Answer all questions.
• Use a black or dark blue pen. You may use an HB pencil for any diagrams or graphs.
• Write your name, centre number and candidate number in the boxes at the top of the page.
• Write your answer to each question in the space provided.
• Do not use an erasable pen or correction fluid.
• Do not write on any bar codes.
• You may use a calculator.
INFORMATION
• The total mark for this paper is 80.
• The number of marks for each question or part question is shown in brackets [ ].
• The insert contains the case study.
This document has 12 pages. Any blank pages are indicated.
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© UCLES 2024
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(a) Explain two advantages and two disadvantages of BB being a public limited company.
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Advantage 2: ....................................................................................................................
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Disadvantage 1: ................................................................................................................
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Disadvantage 2: ................................................................................................................
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(b) Consider the advantages and disadvantages of the following three methods BB could use to
motivate its production workers. Which method should BB use? Justify your answer.
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Piece rate
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Teamworking
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Job rotation
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Piece rate: ........................................................................................................................
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Teamworking: ...................................................................................................................
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Job rotation: ......................................................................................................................
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Recommendation: ............................................................................................................
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(a) Explain two effects of BB having a short chain of command.
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Explanation: ......................................................................................................................
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Effect 2: .............................................................................................................................
Explanation: ......................................................................................................................
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(b) Consider the following three extension strategies BB could use for its best-selling product.
Which strategy should BB use? Justify your answer.
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Adding new features
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Start selling in toy shops
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Television advertising campaign
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Adding new features: ........................................................................................................
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Start selling in toy shops: ..................................................................................................
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Television advertising campaign: ......................................................................................
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Recommendation: ............................................................................................................
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© UCLES 2024
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(a) Explain one way each of the following stakeholder groups might be affected by a business
becoming a multinational company.
Effect on shareholders: .....................................................................................................
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Effect on employees: ........................................................................................................
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Effect on suppliers: ...........................................................................................................
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Effect on the government: ................................................................................................
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(b) Using Appendix 2 and other information, consider the two countries BB could choose to locate
its first new factory. Which country should BB choose? Justify your answer.
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Recommendation: ............................................................................................................
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(a) Explain two reasons why BB might want to sell its products in new markets in other countries.
Reason 1: .........................................................................................................................
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Reason 2: .........................................................................................................................
Explanation: ......................................................................................................................
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[8]
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(b) Using Appendix 3 and other information, consider BB’s financial performance compared to its
main competitor. Do you think BB’s financial performance is better than its competitor? Justify
your answer using appropriate calculations.
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Conclusion: .......................................................................................................................
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Cambridge Assessment International Education is part of Cambridge Assessment. Cambridge Assessment is the brand name of the University of Cambridge
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