Instructions
• Use black ink or ball-point pen
• Fill in the boxes at the top of this page with your name, centre number and candidate number
• There are two sections to this question paper
• Answer all questions
• Answer the questions in the spaces provided – there may be more spa...
Business
Advanced
Paper 1(a): Marketing, people and global
businesses
Practice paper Paper reference
Time: 2 hours Paper 1(a)
You do not need any other materials Total Marks
Instructions
• Use black ink or ball-point pen
• Fill in the boxes at the top of this page with your name, centre number and candidate
number
• There are two sections to this question paper
• Answer all questions
• Answer the questions in the spaces provided – there may be more space than you need
Information
• The total mark for this paper is 100
• The marks for each question are shown in brackets – use this as a guide as to how much
time
to spend on each question
Advice
• Read each question carefully before you start to answer it
• Try to answer every question
• Check your answers if you have time at the end
Edexcel A Level Business Practice Exam Paper 1(a)
Page 3
Read the following extracts (A to C) before answering Question 1. Write your answers in the
spaces provided.
Extract A
IKEA
IKEA is a home furnishings store established in Sweden and now operating in 48 countries
worldwide. Founder Ingvar Kamprad discovered that flat pack furniture design is much
cheaper to transport, store and saves labour costs in putting it together if the customer can
do that at home.
IKEA have tried to reduce the hierarchy and flattened the organisational structure in order to
empower staff. For future success IKEA has to be a “great place to work.” Part of this is a
novel two-part incremental bonus system. First, all employees can get an extra month’s pay if
the company meets certain specified economic goals. Second, IKEA has a loyalty program for
employees. All employees who have been with IKEA for over 5 years share in this second
bonus. IKEA staff work in teams and must be flexible and multi-skilled so they can help in other
departments when needed. A marketing manager may spend time in the warehouse or on
the till at peak periods. Nobody must have their own agenda – it is all about pulling
together.
Former CEO Anders Dahlvig said that “recognition” was vital to motivate the workforce
with staff having “development talks” 3 times a year to enable high fliers to take on new
challenges such as management training. Average years’ service is way above similar firms
at 8.5 years. At the Gateshead store alone, IKEA employ 88 full time and 245 part time staff.
Zero hours contracts and temporary staff are used at peak times such as Christmas.
In 2016 IKEA opened new stores in new global markets such as Suzhou and Chengdu Chenghua
in China and Las Vegas and St Louis in the US. They have switched some suppliers to China in
order to avoid import tariffs and lower costs. Prices had to be lowered in China to appeal to
consumers on lower incomes and bowls had to be made deeper to hold more rice. Store
locations in China are near cities as most customers use public transport unlike the US and
European customers where locations are out of town.
Sources: adapted from www.businessinsider.com/former-ikea-ceo-this-is-greatest-motivator-of-all and
http://franchisor.ikea.com/bringing-the-ikea-concept-worldwide/
Page 2 Edexcel A Level Business Practice Exam Paper
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