Instructions:
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Carefully review all given instructions and past paper guidelines before starting each practice session.
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Attempt the past paper questions independently first, just as in an actual exam environment.
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Use a notebook or exam-style sheets to write your answers. Ensure your work is neat, clearly labeled with question numbers, and follows proper exam format.
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After completing each section, check your answers using the provided marking schemes and examiner reports (if available).
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Review your mistakes and rewrite incorrect answers to improve accuracy and exam technique.
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If you find any questions difficult or unclear, watch the video given below for that paper. In that video, each paper is discussed in detail.
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If you still face difficulties or have doubts after watching the video, note them down and discuss them with your instructor or course coordinator for clarification.
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Revise question-solving strategies and repeat similar past paper questions to strengthen your understanding and performance.
Click Here to download the Video Handout
Alright everyone, today we are going to go through the Tennis and Sports Equipment case study. This is your Cambridge O Level Business Studies Paper 2, and I will guide you through each part step by step. By the end of this class, you will know exactly how to structure your answers, what the examiner is looking for, and how to earn top marks.
In this case, TSE is a multinational company that makes sports equipment and sells in more than 30 countries. It wants to expand into a new market and may also buy another company. Every question in this paper is linked to this scenario, so always use examples from the case. That is how you show application and reach the higher levels.
The first part of the paper asks how two problems could affect TSE when entering a new market: cultural differences and lack of knowledge. When a business enters another country, cultural differences are very important. Each country has its own language, customs, and sporting interests. If TSE designs advertisements that ignore local traditions or uses slogans that do not translate well, customers may feel offended or confused. This could harm the company’s image and reduce sales. The second problem is a lack of knowledge about the market. Without proper research, TSE could make poor decisions such as selling cricket bats in a country where people prefer basketball or setting prices that customers find too high. These mistakes waste money and reduce profit. The examiner wants to see that you understand how each problem can affect sales and reputation, and that you link it clearly to TSE.
Next, the question focuses on motivation and asks you to consider two benefits of a well-motivated workforce. These are reduced absenteeism and lower labour turnover. When employees are motivated, they are more likely to attend work regularly. This helps production run smoothly and avoids delays, especially since TSE uses flow production. However, the bigger benefit is lower labour turnover. When workers are motivated, they stay longer, which saves the company money on recruitment and training. It also keeps experienced staff who understand the machinery and maintain product quality. If you compare the two, retaining skilled employees through lower labour turnover is more important for TSE. It keeps productivity high and ensures quality stays consistent in all its factories.
The next question looks at stakeholder objectives. Here you must explain what each group wants, not just list them. Shareholders want high dividends and an increase in share value because that shows the business is profitable. Suppliers want TSE to pay them on time and offer long-term contracts so they have a steady income. Employees want fair wages, safe working conditions, and job security in the factories. Customers want high-quality sports equipment that is reliable and reasonably priced. One sentence to identify and one to explain is enough to get full marks here.
Then we come to improving efficiency, where you need to compare training workers with using more automation. Training helps employees work faster and make fewer mistakes. It improves product quality and allows workers to maintain machines better, though it can be expensive and may interrupt production for a short time. On the other hand, automation increases speed and consistency. Machines can run for longer hours and do not get tired, but the cost of buying and installing them is high, and workers may worry about losing jobs. The best solution for TSE is to combine both. Automation gives consistency, while training ensures employees can use and maintain the technology properly. That balance is what earns top marks because it shows evaluation and realistic judgment.
Another question asks how market research helps a business like TSE. You can give four short explanations. Market research helps identify customer needs so TSE knows which sports equipment is in demand. It helps set prices that are competitive but still profitable. It reduces business risk because decisions are based on facts rather than guesses. And it improves promotion by helping TSE choose the right message and advertising media. For full marks, explain each point briefly and clearly.
After that, you are asked how TSE should buy raw materials for its factories. There are two options: centralised purchasing by head office or local purchasing by factory managers. Centralised buying gives bulk discounts and keeps product quality the same across all factories, but it is slower and has higher shipping costs. Local buying means managers can purchase materials nearby, which reduces delivery times and costs. It is also more sustainable, but the risk is that quality may vary. The best option is to let local managers buy materials but under quality rules set by head office. This allows faster supply while still maintaining standards.
The next question deals with recession in country P. When a country enters recession, incomes fall and unemployment rises. People spend less on non-essential products such as sports equipment, so TSE’s sales will probably drop. However, not all effects are negative. Some suppliers may lower prices to keep customers, and labour costs could fall as more people look for jobs. This could slightly reduce TSE’s production costs and help protect profit margins. Mention both the negative and the small positive impact for a complete answer.
The final question is about which company TSE should take over in country P. You are given figures for Company A and Company B, and you need to calculate and compare them. Company A has a revenue of 100 million, costs of 80 million, and a profit of 20 million, which means a profit margin of 20 percent. Company B has a revenue of 200 million, costs of 150 million, and a profit of 50 million, giving a profit margin of 25 percent. Company B is larger, more profitable, and has a bigger share of the market. That means it is the better option for TSE. Taking over Company B will increase sales, improve profitability, and strengthen TSE’s position in country P. Always show your working and end with a clear decision linked to the case.
Before we finish, let’s go over a few quick exam tips. For eight-mark questions, you should explain two detailed points or four short ones. For twelve-mark questions, explain both sides, compare them, and finish with a justified conclusion. Always use details from the case to show context. Mention TSE’s factories, its use of flow production, or its expansion in country P. Keep your answers short, focused, and written in simple language.
By the end of this lesson, you should now understand how to explain real business problems when entering new markets, how to evaluate motivation and efficiency, and how to use data for decision-making. If you follow this structure and link your answers to the case, you will be able to reach the top levels and score excellent marks in your Paper 2 exam.
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