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79 views19 pages

Mock Paper 1

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azeena.jumar

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You are on page 1/ 19

Monthly Test-December Business Studies – Unit 3 Upper 6 (A2)

Business Studies- Unit 3

Instructions

• Use black ink or ball-point pen.

• Fill in the previous page with your Name and Class

• Answer all questions in Section A and Section B.

• Answer the questions in the spaces provided – there may be more space than you
need.

Information

• The total mark for this paper is 80.

• The marks for each question are shown in brackets – use this as a guide as to how
much time to spend on each question.

• In your responses, you should take particular care with punctuation and grammar, as
well as the clarity of your expression.

• Calculators may be used.

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.

Page 1 of 19
Monthly Test-December Business Studies – Unit 3 Upper 6 (A2)

SECTION A

Answer ALL the questions in this section.

You should spend 60 minutes on this section.

Evidence A - Kraft’s takeover of Cadbury

In 2009, US food company Kraft

Food Inc (Kraft) made a takeover bid
for Cadbury, the UK chocolate
maker. Cadbury was the final
acquisition necessary to allow Kraft
to be restructured and split into two
companies: a grocery business
worth $16bn; and a global snacks business worth $32bn. Kraft needed Cadbury to
provide scale for the snacks business, especially in emerging markets such as India.

The challenge was how to buy Cadbury when it was not for sale.

(Source adapted from: http://www.ft.com/cms/s/0/1cb06d30-332f-11e1- a51e-

00144feabdc0.html#axzz2emhQhCx9)

Evidence B- Cadbury warns of culture clash under Kraft

Cadbury warned that its unique corporate culture would be lost if the company were
taken over by Kraft.

Cadbury has always attempted to be a socially aware business. The group recently
started a major Fairtrade initiative for its Dairy Milk brand. At a fair trade conference in
London, Cadbury said: “Our values-led way of doing business has built a unique
corporate brand.”

Kraft is a typical multinational, which has its origins in manufacturing processed cheese
in the US. Its growth is the result of decades of profit-driven mergers and demergers.
Until 2001 it was part of the tobacco and consumer goods conglomerate Philip Morris.

Page 2 of 19
Monthly Test-December Business Studies – Unit 3 Upper 6 (A2)

(Source adapted from: http://www.theguardian.com/business/2009/oct/21/ Cadbury-

Kraft-sales-profits-job-losses)

Evidence C- Kraft hit by loss of Cadbury executives

The threat of losing important staff from Kraft intensified as five more senior Cadbury
executives left the business following Kraft’s £11.7bn takeover of Cadbury.

Cadbury staff leaving include, its global brand director, global commercial strategy
director, Asia-Pacific head for chocolates, and the commercial director of Cadbury
Africa.

Cadbury’s UK marketing director quit last month.

(Source adapted from: http://www.ft.com/cms/s/0/1dad970a-69c1-11df-8432-

00144feab49a.html#axzz2fLqIfG2R)

Evidence D- Cadbury acquires a taste for US owner Kraft at last

In 2011, after taking over Cadbury, Kraft’s UK chocolate business generated 66% of its
UK turnover, which grew by 2.2%. This was faster than the slow-growing UK chocolate
market.

Kraft increased its share of the UK chocolate market from 37.1% to 37.5%. Overall, its
UK business increased by 4%, helped by strong sales of cheese and biscuits.

Kraft has made 600 Cadbury manufacturing staff redundant, but has recruited 100 new
research and development staff and 70 new sales staff.

The net loss of jobs doesn’t look good, but it is hard to argue with Kraft’s claim it has
“proved a good guardian of the Cadbury brand”.

(Source adapted from:

http://www.telegraph.co.uk/finance/newsbysector/retailandconsumer/
9120100/Cadbury-acquires-a-taste-for-US-owner-Kraft-at-last.html)

Page 3 of 19
Monthly Test-December Business Studies – Unit 3 Upper 6 (A2)

1 (a) What is meant by the term ‘acquisition’? (Evidence A, line 5) (2)

(b) What is meant by the term ‘conglomerate’? (Evidence B, line 9) (2)

(Total for Question 1 = 4 marks)

Page 4 of 19
Monthly Test-December Business Studies – Unit 3 Upper 6 (A2)

2 Evaluate the usefulness of a PESTLE analysis for Kraft’s management team when
they were considering acquiring Cadbury.

………………………………………………………………………………………………………
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(Total for Question 2 = 6 marks)

Page 5 of 19
Monthly Test-December Business Studies – Unit 3 Upper 6 (A2)

3 Analyse why Kraft should have examined the corporate culture of Cadbury before
acquiring it. (Evidence B)

Page 6 of 19
Monthly Test-December Business Studies – Unit 3 Upper 6 (A2)

(Total for Question 3 = 8 marks)

Page 7 of 19
Monthly Test-December Business Studies – Unit 3 Upper 6 (A2)

4 Assess the likely importance of Kraft’s mission statement to the company.

………………………………………………………………………………………………………
………………………………………………………………………………………………………

Page 8 of 19
Monthly Test-December Business Studies – Unit 3 Upper 6 (A2)

(Total for Question 4 = 10 marks)

Page 9 of 19
Monthly Test-December Business Studies – Unit 3 Upper 6 (A2)

5 Assess the benefits of inorganic growth to Kraft.

Page 10 of 19
Monthly Test-December Business Studies – Unit 3 Upper 6 (A2)

(Total for Question 5 = 12 marks)

TOTAL FOR SECTION A = 40 MARKS

Page 11 of 19
Monthly Test-December Business Studies – Unit 3 Upper 6 (A2)

SECTION B

Answer ALL questions in this section.

You should spend 60 minutes on this section.

Evidence E - Kraft divides

In 2012 Kraft divided into two industry-leading public companies: a high-growth global
snacks business; Mondelēz International (Mondelēz) and a profitable North American
grocery business; Kraft Foods Group.

(Source adapted from: http://ir.Mondelēzinternational.com/releasedetail.cfm?

ReleaseID=734959)

Evidence F- Unleashing a Global Snacking Powerhouse

As Mondelēz, we are one of the world’s largest snacks companies, with global net
revenues of $35bn in 2012. We are a new company in name and strategy, yet we carry
forward the values of our legacy and the heritage of our iconic brands.

The World’s Favourite Brands

Our portfolio features nine brands, each worth a billion dollars: Cadbury, Cadbury Dairy
Milk and Milka chocolate, Jacobs coffee, LU, Nabisco and Oreo biscuits, Tang
powdered beverages and Trident gum.

Unique Competitive Advantages

We have everything in place to deliver sustainable, profitable growth:

• Fast-Growing Categories • Leading Innovation Platforms

• Worldwide Brand Recognition • Strong Distribution Channels

• Favourite Snacks Brands • World-Class Talent and Capabilities

(Source adapted from: http://www.mondelezinternational.com/sitecollectiondocuments/

pdf/mondelez_intl_fact_sheet.pdf)

Page 12 of 19
Monthly Test-December Business Studies – Unit 3 Upper 6 (A2)

Evidence G -Selected financial information, Kraft– N.B. All figures in $

(Source adapted from: http://ir.Mondelēzinternational.com/secfiling.cfm?filingID=

1193125-13-73227&CIK=1103982)

Evidence H -Revenue before and after Kraft divided

Page 13 of 19
Monthly Test-December Business Studies – Unit 3 Upper 6 (A2)

6 Using Evidence G, evaluate the usefulness of ratio analysis to Kraft when deciding
their strategies.

Page 14 of 19
Monthly Test-December Business Studies – Unit 3 Upper 6 (A2)

Page 15 of 19
Monthly Test-December Business Studies – Unit 3 Upper 6 (A2)

(Total for Question 6 = 20 marks)

Page 16 of 19
Monthly Test-December Business Studies – Unit 3 Upper 6 (A2)

7 Evaluate the usefulness of business contingency planning to Kraft.

Page 17 of 19
Monthly Test-December Business Studies – Unit 3 Upper 6 (A2)

Page 18 of 19
Monthly Test-December Business Studies – Unit 3 Upper 6 (A2)

(Total for Question 7 = 20 marks)

TOTAL FOR SECTION B = 40 Marks

TOTAL FOR PAPER = 80 MARKS

Page 19 of 19

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Mock Paper 1

Uploaded by

Mock Paper 1

Uploaded by

Monthly Test-December Business Studies – Unit 3 Upper 6 (A2)

Business Studies- Unit 3

• Use black ink or ball-point pen.

• Fill in the previous page with your Name and Class

• Answer all questions in Section A and Section B.

• The total mark for this paper is 80.

• Calculators may be used.

• 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.

Answer ALL the questions in this section.

You should spend 60 minutes on this section.

Evidence A - Kraft’s takeover of Cadbury

In 2009, US food company Kraft

(Source adapted from: http://www.ft.com/cms/s/0/1cb06d30-332f-11e1- a51e-

Evidence B- Cadbury warns of culture clash under Kraft

(Source adapted from: http://www.theguardian.com/business/2009/oct/21/ Cadbury-

Evidence C- Kraft hit by loss of Cadbury executives

Cadbury’s UK marketing director quit last month.

(Source adapted from: http://www.ft.com/cms/s/0/1dad970a-69c1-11df-8432-

Evidence D- Cadbury acquires a taste for US owner Kraft at last

(Source adapted from:

1 (a) What is meant by the term ‘acquisition’? (Evidence A, line 5) (2)

(b) What is meant by the term ‘conglomerate’? (Evidence B, line 9) (2)

(Total for Question 1 = 4 marks)

(Total for Question 2 = 6 marks)

(Total for Question 3 = 8 marks)

4 Assess the likely importance of Kraft’s mission statement to the company.

(Total for Question 4 = 10 marks)

5 Assess the benefits of inorganic growth to Kraft.

(Total for Question 5 = 12 marks)

TOTAL FOR SECTION A = 40 MARKS

Answer ALL questions in this section.

You should spend 60 minutes on this section.

Evidence E - Kraft divides

(Source adapted from: http://ir.Mondelēzinternational.com/releasedetail.cfm?

Evidence F- Unleashing a Global Snacking Powerhouse

The World’s Favourite Brands

Unique Competitive Advantages

We have everything in place to deliver sustainable, profitable growth:

• Fast-Growing Categories • Leading Innovation Platforms

• Worldwide Brand Recognition • Strong Distribution Channels

• Favourite Snacks Brands • World-Class Talent and Capabilities

(Source adapted from: http://www.mondelezinternational.com/sitecollectiondocuments/

Evidence G -Selected financial information, Kraft– N.B. All figures in $

(Source adapted from: http://ir.Mondelēzinternational.com/secfiling.cfm?filingID=

Evidence H -Revenue before and after Kraft divided

(Total for Question 6 = 20 marks)

7 Evaluate the usefulness of business contingency planning to Kraft.

(Total for Question 7 = 20 marks)

TOTAL FOR SECTION B = 40 Marks

TOTAL FOR PAPER = 80 MARKS

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