Are you in Year 11 and preparing for your GCSE Business exam?
Need a little guidance? This week we’ve taken a look at the Edexcel Business Paper One (Investigating Small Business) from 2021, and have provided a few examples of ways to answer some of the questions.
As promised, here are some model answers for Section A, questions 2(d) and 2(e). Worth THREE marks each. We’ve even added a bonus answer for 2(e)!
Paper 1: Investigating Small Business (2021 paper)
Section 2
(d) Explain one reason why an entrepreneur may adapt an existing product to come up with a new business idea. (3 marks)
One reason why an entrepreneur may adapt an existing product to come up with a new business idea is to differentiate their product from competitors and offer something unique to their target market. By making modifications to an existing product, an entrepreneur can improve its features, performance, or design to better meet the needs and preferences of their customers. This can help the entrepreneur to create a competitive advantage and attract more customers to their business. Additionally, adapting an existing product can also save time and resources compared to developing a completely new product from scratch, which can be costly and time-consuming. (3 Marks)
(e) Explain one disadvantage to a small business of using a focus group to collect market research data. (3 marks)
Answer 1 One disadvantage to a small business of using a focus group to collect market research data is the potential cost and time involved. Conducting a focus group can be expensive, especially for a small business with limited financial resources. A small business may need to hire a moderator, rent a venue, and provide incentives to participants, which can all add up quickly. Additionally, scheduling and coordinating the logistics of a focus group can be time-consuming, especially if participants have busy schedules or are located in different areas. (3 Marks)
Answer 2 Another potential disadvantage is that the results of a focus group may not always be representative of the wider target market. The opinions and feedback of a small group of participants may not reflect the preferences and behaviours of a larger population. This can lead to inaccurate or biased data, which can mislead the small business in their decision-making process. Therefore, it is important for a small business to carefully consider the limitations of focus groups and use other market research methods in combination to gain a more complete understanding of their target market. (3 Marks)
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