Essay questions on business growth, mergers and market structure
Evaluate the benefits of the growth of a business by merger in an industry of your choice. Illustrate your answer with an appropriate diagram(s).
Evaluate the benefits of a takeover for businesses and consumers. Illustrate your answer with an appropriate diagram(s).
Evaluate the benefits of organic growth to a business such as Lidl. Illustrate your answer with an appropriate diagram(s).
Evaluate the likely impact of the divorce of ownership from control on business objectives. Illustrate your answer with an appropriate diagram(s).
Evaluate the benefits of growth by takeover for a business in an industry of your choice. Illustrate your answer with an appropriate diagram(s).
Evaluate the possible benefits of a demerger. Illustrate your answer with an appropriate diagram(s).
Evaluate the benefits of growth by merger. Illustrate your answer with an appropriate diagram(s).
Evaluate the possible benefits of a demerger for the business and its workforce. Illustrate your answer with an appropriate diagram(s).
Data response questions on business growth, mergers and market structure
Case study: The UK bicycle industry
With reference to Figure 1, calculate the percentage change in bicycle sales between 2022 and 2023. You are advised to show your workings.
Case study: The UK bicycle industry
With reference to the first two paragraphs of Extract B, explain what is meant by 'a reduction in contestability'.
Case study: The UK bicycle industry
With reference to Extract B and your own knowledge, analyse two reasons why some bicycle retailers remain small.
Case study: The UK bicycle industry
With reference to Figure 1, Extract A and Extract B, examine two reasons why some bicycle retailers were forced to close.
Case study: The fast-food industry
With reference to Figure 1, calculate the 4-firm concentration ratio of the global fast-food industry. You are advised to show your workings.
Case study: The fast-food industry
With reference to Extract C, explain what is meant by organic growth.
Case study: The fast-food industry
With reference to Extract A, analyse two reasons why the global fast-food market is expected to grow.
Case study: The fast-food industry
With reference to the last paragraph of Extract B, examine the likely impact on McDonald's profits by switching 'to suppliers that use more ethical and sustainable methods of production'. Illustrate your answer with an appropriate diagram.
Case study: The fast-food industry
With reference to Figure 1, Extract C and your own knowledge, discuss the likely effects of McDonald's opening CosMc's on its competitors.
Case study: The pharmaceutical industry
With reference to Extract B line 14, explain the term 'dynamic efficiency'.
Case study: The pharmaceutical industry
With reference to Extract A, analyse two ways that pharmaceutical companies may benefit from external economies of scale.
Case study: The pharmaceutical industry
With reference to the information provided and your own knowledge, discuss the likely barriers that might prevent a new company from entering the pharmaceutical industry.
Case study: The global fashion retail market
With reference to the first paragraph of Extract A, explain what is meant by the term 'organic growth'.
Case study: The electric vehicle market in China
With reference to Figure 2, calculate the percentage change in the price of the Model 3 Rear Wheel Drive vehicle between January and October 2022.
Case study: The electric vehicle market in China
With reference to Extract A, analyse two reasons why sales of electric vehicles in China increased. Illustrate your answer with a supply and demand diagram.
Case study: The electric vehicle market in China
With reference to Figure 1 and Extract B, explain the market structure that best describes the electric vehicle market in China.
Case study: The electric vehicle market in China
With reference to the first two paragraphs of Extract B, examine the impact of Tesla producing its electric vehicles in China on its costs and profits. Illustrate your answer with a costs and revenues diagram.
Case study: The electric vehicle market in China
With reference to the information provided and your own knowledge, discuss the impact of Tesla reducing its prices on the behaviour of other electric vehicle manufacturers.
Case study: The UK energy market
With reference to Figure 1, calculate the percentage change in the wholesale price of gas from 1 April 2021 to 1 April 2022. You are advised to show your working.
Case study: The UK energy market
With reference to Figure 2 and the second paragraph of Extract A, explain what is meant by the term 'concentration ratio'.
Case study: The UK energy market
With reference to Figure 1 and Extract A, examine the impact of the increase in the wholesale price of natural gas on the cost of production for UK gas suppliers.
Case study: The UK energy market
With reference to Extract A and Extract B, discuss the likely effects of the increase in the energy price cap on both energy suppliers and consumers. Illustrate your answer with an appropriate cost and revenue diagram.
Case study: The Indian mobile phone market
With reference to Figure 1, calculate the percentage point change in the four-firm concentration ratio between 2020 and 2021.
Case study: The Indian mobile phone market
With reference to Extract A, analyse two reasons why India has become the world's second largest smartphone market.
Case study: The Indian mobile phone market
With reference to Extract B, explain what is meant by 'economies of scale'.
Case study: The Indian mobile phone market
With reference to Figure 2 and Extract B, examine the likely impact on the profits of Samsung of opening a smartphone factory in India. Use an appropriate diagram in your answer.
Case study: The impact of the global health crisis
With reference to Figure 1, calculate the percentage change in Amazon's revenue between 2010 and 2020.
Case study: The impact of the global health crisis
With reference to Figure 2, explain the market structure of cloud infrastructure providers.
Case study: The impact of the global health crisis
With reference to Extract A, analyse the likely impact on consumers of two methods by which Amazon competes with other retailers.
Case study: The impact of the global health crisis
With reference to Extract A, examine two likely effects of the global health crisis on Amazon's profits.
Case study: The impact of the global health crisis
With reference to Extract B and your own knowledge, discuss reasons why many SMEs in South Africa shut down in 2020. Illustrate your answer with an appropriate diagram.
Case study: The car industry
With reference to Figure 1, calculate the four-firm concentration ratio for the US car market in 2019.
Case study: The car industry
With reference to Extract A, explain what is meant by 'horizontal integration'.
Case study: The car industry
With reference to Extract A, analyse two barriers that Stellantis are likely to experience when trying to increase market share in China.
Case study: The car industry
With reference to Extract A, examine the impact of an increase in car sales in the USA on the profits of Stellantis. Illustrate your answer with an appropriate diagram.
Case study: The car industry
With reference to the information provided and your own knowledge, discuss the possible impact of the merger between PSA Group and Fiat Chrysler on workers and consumers.
Case study: The Chinese car market
With reference to Figure 2, calculate the 4-firm concentration ratio for the car market in China in 2018. You are advised to show your working.
Case study: The Chinese car market
With reference to the third paragraph of Extract B, explain what is meant by a 'takeover'.
Case study: Tata Steel
With reference to Extract B, examine the likely effects of the proposed merger between Tata Steel and Thyssenkrupp on the profits of European car manufacturers. Illustrate your answer with an appropriate diagram.
Case study: Tata Steel
With reference to Extract C, analyse two reasons why the proposed merger between Tata Steel and Thyssenkrupp was blocked by the European Competition Commission.
Case study: Tata Steel
With reference to Extract A, Extract B and your own knowledge, discuss the benefits to Tata Steel and Thyssenkrupp of the proposed horizontal integration. Illustrate your answer with an appropriate diagram.
Multiple choice questions
- A-level Unit 3, June 2025, Q1
Which one of the following is an example of internal economies of scale?
- A-level Unit 3, January 2025, Q2
Which one of the following best describes this type of arrangement?
- A-level Unit 3, June 2024, Q1
Which one of the following results from technical economies of scale?
- A-level Unit 3, June 2024, Q3
Which one of the following is the most likely reason why GSK decided to demerge from Haleon?
- A-level Unit 3, January 2024, Q1
Which one of the following best describes the acquisition of the Kansas City Southern railway by Canadian National Railway?
- A-level Unit 3, June 2023, Q1
Which one of the following best describes this type of merger?
- A-level Unit 3, June 2023, Q2
Which one of the following must be true as output rises from Q1 to Q2?
- A-level Unit 3, June 2023, Q6
Which one of the following would be a barrier to entry into this industry?
- A-level Unit 3, June 2022, Q4
Which one of the following is the five-firm concentration ratio for airlines operating domestic flights in the USA?
- A-level Unit 3, October 2021, Q2
2 The chart shows the market share for mobile virtual network operators (MVNOs) in Japan for 2019. Rakuten 15.6% Others 35.8% IIJ 13.2% UQ Comm. Biglobe 11.3% 4.6% NTT Comm. K-Opticom 10.5% 9.0% What was the five firm concentration ratio…
- A-level Unit 3, June 2021, Q2
Which one of the following is the best description of this type of business?
- A-level Unit 3, January 2021, Q2
2 The chart shows the market share of smartphone companies in India in quarter 4, 2019. Others 13% Xiaomi Realme 27% 8% Oppo 12% 19% 21% Samsung Vivo What is the 4-firm concentration ratio?
- A-level Unit 3, October 2020, Q1
1 In 2018 the Competition and Markets Authority carried out an investigation into a proposed merger between two of the largest UK supermarket companies, Sainsbury's and Asda. If approved, this type of merger would be an example of
- A-level Unit 3, January 2020, Q2
2 The table shows the market share by value of retail sales of grocery stores in the UK. Store March 2016 (%) March 2017 (%) Tesco 28.1 27.6 Sainsbury's 16.4 16.1 Asda 16.2 15.7 Morrisons 10.5 10.4 Co-op 6.1 6.1 Aldi 6.0 6.8 Others 16.7…
- A-level Unit 3, January 2020, Q4
Which one of the following must be true as output rises from point Q₁ to point Q₂?
