Business 9609/31 May June 2020 | Cambridge AS Level Past Papers With Mark Scheme

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1. Outsourcing Benefits for JGS:
- Cost efficiency through reduced overheads and operational costs.
- Access to specialized expertise and enhanced focus on core activities.
- Risks include dependency on third-party reliability and potential loss of control over quality.

2. Seasonal Sales Analysis:
- Average Seasonal Variation (Q3): Calculation based on historical data trends.
- Forecast Sales for Q3 (2021): Add average seasonal variation to forecast trend value.

3. Income Elasticity of Demand (YED):
- Measures responsiveness of demand to income changes, guiding pricing and product positioning strategies.

4. Sales Forecast Accuracy:
- Dependent on stable market conditions, historical data reliability, and external factors like economic shifts or competition.

5. Organizational Structure Recommendation for JGS:
- Opt for a flat structure to encourage communication and decision-making or a matrix structure for project-based teams. Align structure with growth objectives and employee engagement.

6. Tour Profitability Assessment:
- Break-Even Customers: Fixed costs ÷ (Price - Variable costs per customer).
- Contribution and Profit Calculation: Contribution margin and fixed cost coverage for profitability analysis.
- Recommend continuation only if operational costs are covered and strategic benefits align.

7. Corporate Social Responsibility (CSR) for JGS:
- Benefits include enhanced brand reputation, customer loyalty, and compliance with ethical standards.
- Drawbacks: Higher operational costs and potential conflicts with profit-maximization goals.

8. Decision Tree Evaluation:
- Supports strategic choice by quantifying risks and returns, but should be complemented with qualitative factors for comprehensive decision-making.

9. Contingency Planning Significance:
- Prepares JGS for uncertainties in implementation, ensuring business continuity and adaptive responses to unexpected challenges.

CIE AS & A Level Business (9609) Jun 2020

Laura Bellini

Classification: Paper 3

Page count: 20

Viewed: 59

Last update: 2 months ago

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