AQA A Level · Business 7138

Competitive environment: Porter's five forces: Practice Questions

5 multiple-choice questions marked as you go, and 4 written questions with worked solutions. All on Competitive environment: Porter's five forces.

9 questions15 marksFree, no account

Question 1

1 mark

Which demographic change in the UK population is most likely to cause an increase in demand for retirement healthcare and private care home services?

Question 2

1 mark

A UK business imports components from Japan priced at \( ¥180,000 \) per batch. The exchange rate changes from \( £1 = ¥150 \) to \( £1 = ¥180 \).

What is the change in the cost per batch to the UK importer in Pounds Sterling (\( £ \))?

Question 3

1 mark

What is the primary role of the Competition and Markets Authority (CMA) in the UK?

Question 4

1 mark

According to Porter's Five Forces framework, which combination of market conditions will result in the highest level of supplier power?

Question 5

1 mark

Which of the following is one of the forces in Porter's Five Forces model?

Question 6

2 marks

In Porter's Five Forces framework, which specific competitive force is reduced when a market has high entry barriers, such as high capital requirements or strict government regulations?

Write your answer out first, then check it against the worked solution.

Question 7

3 marks

A UK manufacturer imports raw materials from the Eurozone. If the exchange rate changes from \( £1 = €1.10 \) to \( £1 = €1.25 \), state what happens to the Pound Sterling (appreciation or depreciation) and state the immediate effect on the manufacturer's unit cost of imported materials in Pounds.

Write your answer out first, then check it against the worked solution.

Question 8

2 marks

State the specific UK legislation that legally protects employees from direct and indirect discrimination in the workplace based on protected characteristics such as age, gender, and race.

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Question 9

3 marks

A UK manufacturing firm exports specialized machinery to Germany. The selling price per machine is fixed in Pounds Sterling at \(£50,000\).

At the start of the year, the exchange rate is \(£1 = €1.10\). Six months later, the Pound appreciates, and the new exchange rate is \(£1 = €1.25\).

a) Calculate the price of one machine to a German buyer (in Euros, \(€\)) at the start of the year. (1 point)
b) Calculate the price of one machine to a German buyer (in Euros, \(€\)) after the exchange rate change. (1 point)
c) State whether this exchange rate movement makes the UK exporter's goods more competitive or less competitive in the European market. (1 point)

Write your answer out first, then check it against the worked solution.

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