Written by RA10 from a question-by-question analysis of the AQA 7132 papers 2020-2025 and the v2.0 specification. This is not an official AQA paper and does not contain real exam questions.
GreenGrove plc makes chilled and frozen plant-based foods, such as meat-free burgers and dairy-free desserts, which it sells to UK supermarkets under its own premium brand. The company grew rapidly between 2018 and 2022 as plant-based eating became fashionable.
Since 2023 growth in the UK plant-based market has stalled (Appendix B). Supermarkets have launched cheaper own-label ranges, and the costs of GreenGrove's key ingredients and of energy for its freezers have risen sharply. GreenGrove has so far chosen not to cut its prices.
The board is now considering borrowing £30m to build a second factory. The Chief Executive believes that the market will return to growth and that a larger factory would bring economies of scale. Some directors are less sure.
| 2023 | 2024 | |
|---|---|---|
| Revenue | 120 | 132 |
| Cost of sales | 66 | 79 |
| Operating profit | 14 | 12 |
| Total equity | 80 | 82 |
| Non-current liabilities | 40 | 58 |
| 2020 | 2021 | 2022 | 2023 | 2024 |
|---|---|---|---|---|
| 820 | 940 | 1 010 | 1 030 | 1 015 |
| Main reason for buying | % | Main reason for buying less often | % |
|---|---|---|---|
| Health | 46 | Price | 52 |
| Environment | 31 | Taste/texture | 27 |
| Taste | 14 | Concern about processed ingredients | 15 |
| Price/value | 9 | Other | 6 |
Source: independent market research company, random sample.
| Product | PED |
|---|---|
| Supermarket own-label plant-based ranges | -1.8 |
| GreenGrove premium range | -0.7 |
SwiftDrop Ltd delivers parcels to homes for online retailers in the Midlands. It uses about 900 drivers who are self-employed and choose which delivery 'slots' to accept through SwiftDrop's app. Drivers are paid £1.10 per parcel delivered (piece rate) and use their own vans.
Retailers have complained about parcels left in unsafe places, late deliveries and rude drivers. SwiftDrop's labour turnover is around 45% a year, and it spends £600 000 a year recruiting and training new drivers.
SwiftDrop's managers are under pressure to hit daily delivery targets. Decisions are made by managers and passed to drivers through the app; drivers have no say in routes or targets. The new Managing Director, Lena Ortiz, believes a different leadership approach is needed. She is considering offering drivers employment contracts with a salary, a company van and a team leader for every 25 drivers.
| 2023 | 2024 | |
|---|---|---|
| Parcels delivered per driver per day (average) | 142 | 151 |
| Customer complaints per 10 000 parcels | 18 | 27 |
| Labour turnover (%) | 38 | 45 |
Harbour Kitchenware Ltd manufactures stainless steel pans in Sheffield. It sells 60% of its output to UK department stores and 40% to retailers in the European Union, priced in euros. It imports most of its steel from Sweden, also priced in euros.
Harbour inspects every finished pan before it is packed (quality control). About 6% of pans are rejected and recycled. A new Operations Director wants to introduce quality assurance, training operators to check their own work at each stage.
To guarantee quick delivery to retailers, Harbour holds high levels of finished inventory: an average of 9 weeks of sales. The Finance Director wants to reduce this.
| Average selling price per pan | £40 |
|---|---|
| Variable cost per pan | £22 |
| Fixed costs per year | £360,000 |
| Output and sales (pans per year) | 26,000 |