Business Edexcel International A Level Unit 1 – Chapters 1-22 Exam with
Questions and Answers – 100% Solved
Above-the-line Promotion - ✔✔✔-Involves advertising in the media, eg. going on TV or getting
an ad printed in a newspaper
Added Value - ✔✔✔-Offering additional benefits to your customers beyond the product or
service itself.
Autocratic Leadership - ✔✔✔-The leader makes decisions by themselves. They are exact when
talking about goals. Works well in crisis management and amongst unskilled workers. Needs a
lot of supervision. Can demotivate skilled employees.
B2B - ✔✔✔-Business to business marketing. Typically less emotional and instead marketed
more with statistics, eg. surgical gloves to a local hospital
B2C - ✔✔✔-Business to consumer marketing. More emotional and less statistical, eg.
supermarket to customers
Below-the-line Promotion - ✔✔✔-Refers to any form of promotion that does not involve
advertising
Branding - ✔✔✔-Creating a clear logo, name and/or statement that consumers can instantly
recognise
Centralised Organisation - ✔✔✔-All decisions are made by senior managers in a business. Some
features include:
- Business leaders have experience in making decisions
- Managers get an overview of the whole business
- Senior managers hold no bias towards a specific part of a business
- Excluding other junior levels of staff may be demotivating
,Business Edexcel International A Level Unit 1 – Chapters 1-22 Exam with
Questions and Answers – 100% Solved
- Organisations are slow with changes, as there is a high chain of command
Chain of Command - ✔✔✔-The path of communication and authority up and down the
structure
Channel of Distribution - ✔✔✔-The route a product takes from the manufacturer to the
consumer. Usually passes through intermediaries - supermarkets, retailers etc. This is how to
find the best channel of distribution for your business:
- Nature of the product, as different products require different distribution methods. For
example, most services are sold from manufacturers to consumers directly
- Cost, as businesses would like to pick the cheapest distribution method as intermediaries take
a large share of profit
- The market, as producers in mass markets likely use intermediaries
Competitive Advantage - ✔✔✔-A business's way of creating an edge over other competitors to
generate more profit. Some methods include:
- Lower costs
- Product innovation
- Advertising/marketing
- Product differentiation
- Reliability and quality
- Good consumer service
- Convenience
Cost Efficiency - ✔✔✔-Saving money for a business by reducing unit costs
, Business Edexcel International A Level Unit 1 – Chapters 1-22 Exam with
Questions and Answers – 100% Solved
Cost-Plus Pricing - ✔✔✔-different marketing strategies in regards to pricing. One of these
methods is when a business adds a percentage mark-up to a product. Price = unit cost + (unit
cost/100 x mark-up)
Customer Loyalty - ✔✔✔-Businesses who create good relationships with consumers will gain
loyalty. This can be encouraged with loyalty cards
Customer Satisfaction - ✔✔✔-A satisfied customer may become loyal, generating more revenue
for a business
Decentralised Organisation - ✔✔✔-Authority is shared to more junior employees, eg. branch
managers
- Involvement in decision-making motivates employees
- Can use expert knowledge from their area of business
- Day-to-day decisions can be passed quickly
- Employees may not have enough experience
- May be inconsistencies in different divisions of the business
- Junior employees do not hold the full scope of the business
Demand - ✔✔✔-The amount of a product consumers are willing to buy at a given price. Factors
leading to a change in demand include:
- Price changes of substitutes (eg. margarine and butter)
- Complementary products (eg. printers and ink)
- Consumer income - more disposable income = higher demand for products
- Fashion and consumer preferences
- External shocks
Questions and Answers – 100% Solved
Above-the-line Promotion - ✔✔✔-Involves advertising in the media, eg. going on TV or getting
an ad printed in a newspaper
Added Value - ✔✔✔-Offering additional benefits to your customers beyond the product or
service itself.
Autocratic Leadership - ✔✔✔-The leader makes decisions by themselves. They are exact when
talking about goals. Works well in crisis management and amongst unskilled workers. Needs a
lot of supervision. Can demotivate skilled employees.
B2B - ✔✔✔-Business to business marketing. Typically less emotional and instead marketed
more with statistics, eg. surgical gloves to a local hospital
B2C - ✔✔✔-Business to consumer marketing. More emotional and less statistical, eg.
supermarket to customers
Below-the-line Promotion - ✔✔✔-Refers to any form of promotion that does not involve
advertising
Branding - ✔✔✔-Creating a clear logo, name and/or statement that consumers can instantly
recognise
Centralised Organisation - ✔✔✔-All decisions are made by senior managers in a business. Some
features include:
- Business leaders have experience in making decisions
- Managers get an overview of the whole business
- Senior managers hold no bias towards a specific part of a business
- Excluding other junior levels of staff may be demotivating
,Business Edexcel International A Level Unit 1 – Chapters 1-22 Exam with
Questions and Answers – 100% Solved
- Organisations are slow with changes, as there is a high chain of command
Chain of Command - ✔✔✔-The path of communication and authority up and down the
structure
Channel of Distribution - ✔✔✔-The route a product takes from the manufacturer to the
consumer. Usually passes through intermediaries - supermarkets, retailers etc. This is how to
find the best channel of distribution for your business:
- Nature of the product, as different products require different distribution methods. For
example, most services are sold from manufacturers to consumers directly
- Cost, as businesses would like to pick the cheapest distribution method as intermediaries take
a large share of profit
- The market, as producers in mass markets likely use intermediaries
Competitive Advantage - ✔✔✔-A business's way of creating an edge over other competitors to
generate more profit. Some methods include:
- Lower costs
- Product innovation
- Advertising/marketing
- Product differentiation
- Reliability and quality
- Good consumer service
- Convenience
Cost Efficiency - ✔✔✔-Saving money for a business by reducing unit costs
, Business Edexcel International A Level Unit 1 – Chapters 1-22 Exam with
Questions and Answers – 100% Solved
Cost-Plus Pricing - ✔✔✔-different marketing strategies in regards to pricing. One of these
methods is when a business adds a percentage mark-up to a product. Price = unit cost + (unit
cost/100 x mark-up)
Customer Loyalty - ✔✔✔-Businesses who create good relationships with consumers will gain
loyalty. This can be encouraged with loyalty cards
Customer Satisfaction - ✔✔✔-A satisfied customer may become loyal, generating more revenue
for a business
Decentralised Organisation - ✔✔✔-Authority is shared to more junior employees, eg. branch
managers
- Involvement in decision-making motivates employees
- Can use expert knowledge from their area of business
- Day-to-day decisions can be passed quickly
- Employees may not have enough experience
- May be inconsistencies in different divisions of the business
- Junior employees do not hold the full scope of the business
Demand - ✔✔✔-The amount of a product consumers are willing to buy at a given price. Factors
leading to a change in demand include:
- Price changes of substitutes (eg. margarine and butter)
- Complementary products (eg. printers and ink)
- Consumer income - more disposable income = higher demand for products
- Fashion and consumer preferences
- External shocks
