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A-LevelBusiness StudiesBusiness Organisation and EnvironmentOct/Nov 2020Paper 2 Q130 Marks

AP produces and sells high quality pies. Aashna set up AP five years ago when she spotted a gap in the market. AP is a private limited company and Aashna is the majority shareholder. All of the pies use the AP branding which is growing in popularity. AP owns a factory where all the pies are produced. Pies are packaged and sold individually. The range of pies produced by AP is shown in Table 1.1. Table 1.1: AP's product portfolio The pastry case of each pie is exactly the same no matter what filling is used. All of AP's pastry is made using flow production. However each filling is made by specialist workers who use batch production. Aashna is concerned about the sales of Vegetarian Victory pies and she is considering stopping production of this pie. However, the Operations Director has pointed out that AP might lose its economies of scale if the business reduces the total number of pies produced. The Marketing Director would like Aashna to read his report about developing products in the future. He has done some market research (see Fig. 1.1). Fig. 1.1: Market research to aid developing products in the future

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About This A-Level Business Studies Question

This structured question appeared in the Cambridge A-Level Business Studies (9609) Oct/Nov 2020 examination, Paper 2 Variant 3. It tests the topic of Business Organisation and Environment and is worth 30 marks.

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