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
Hi everyone, and welcome back to class. Today, we’ll be going through an O Level Business Studies Paper 2 case study called Sports Safety Equipment, or SSE for short. This paper is all about understanding how a manufacturing business operates, makes decisions about finance and distribution, manages recruitment, and deals with external changes. By the end of this session, you’ll understand exactly how to answer each question properly and how to earn full marks.
Let’s begin with Question 1(a), which asks you to explain two advantages of using specialisation when producing SSE’s products. The first advantage is efficiency. Specialisation allows each worker to focus on one task in the production line, meaning they become faster and more skilled at it. For SSE, that means helmets are produced more quickly and with fewer mistakes, which improves productivity. The second advantage is higher quality. When workers repeat the same task, they perfect it over time. This helps SSE maintain consistent quality, which strengthens its brand reputation and reduces product defects. Remember, when you get an “explain” question, write one point and one linked explanation to show understanding.
Now, let’s move on to Question 1(b), which asks you to compare primary and secondary market research and decide which one SSE should use. Primary research means collecting new data directly from customers. It’s accurate, current, and specific to SSE’s needs. For example, SSE can find out what styles of helmets are preferred in each new market. But it’s expensive and takes time. Secondary research, on the other hand, uses existing data like government reports or sports participation statistics. It’s quick and cheaper but may be outdated or too general. So which should SSE choose? The best recommendation is primary research because the company is entering new markets where customer needs are different. It’s worth the cost to get accurate, detailed data about what local consumers actually want. For 12-mark questions like this, always explain both options clearly, then make a justified choice based on the business context.
Moving to Question 2(a), you’re asked to explain four factors a business should consider when choosing a source of finance for expansion. The first factor is cost. SSE must think about how much interest or repayment a loan will require. The second is duration. Long-term projects like building factories need long-term finance, such as share capital or long-term loans. The third factor is control. If SSE raises money by selling shares, ownership may become diluted. The fourth is availability. Some sources of finance, like large loans, are not always easy to obtain. Always structure these questions as short, clear paragraphs — one factor followed by a brief explanation.
In Question 2(b), you need to decide how SSE should distribute its products: either directly through its website or through large sports retailers. Selling online gives SSE full control over pricing and profit margins, but many customers prefer to try on helmets before buying, so they might avoid purchasing online. Selling through sports retailers is more effective because those stores already have a customer base and can help SSE reach new markets more easily. The drawback is that SSE loses some control over pricing and has to accept lower margins. The best recommendation here is to sell through large sports retailers since customers trust these stores and can check the product fit before purchase. For 12-mark questions, always weigh both sides and end with a clear justification.
Now for Question 3(a), which focuses on recruitment. The question asks for one advantage and one disadvantage of internal recruitment. The advantage is that it’s faster and cheaper since SSE already knows the employees’ skills and experience. It also boosts motivation when staff see promotion opportunities. The disadvantage is that it limits the talent pool — SSE may miss out on new ideas and expertise from outside candidates. To score high, keep your explanation linked to the case study and show how it affects the business directly.
In Question 3(b), you’re asked to consider three barriers to communication between SSE’s head office and its new factories abroad. The first is a problem with the medium, like using emails for complex discussions instead of video calls. The second is a problem with the sender, for example, unclear instructions or cultural misunderstandings. The third is a problem with the receiver, such as not understanding the message due to language differences. The easiest barrier to overcome is the medium used because SSE can simply switch to better communication tools like video meetings or translation software. The other two barriers require more time and training to fix.
Next is Question 4(a), which focuses on how a break-even chart can help SSE. First, it identifies the exact number of units SSE must sell to cover costs. Second, it helps decide suitable pricing by comparing costs and revenue. Third, it supports decision-making by showing whether sales forecasts make the new helmet profitable. And fourth, it helps set realistic sales targets for the team. To earn full marks, make sure each point includes a short explanation about how the chart is useful.
Finally, Question 4(b) looks at how three external changes could affect SSE: a depreciation in the currency, an import tariff, and quotas. If the currency depreciates, imports become more expensive, which increases production costs. An import tariff on foreign helmets benefits SSE because competitors’ products become more expensive, allowing SSE to raise prices and earn more profit. Quotas in other countries limit how many helmets SSE can export, which lowers sales and profit. The best conclusion is that the import tariff will have the greatest positive effect. It gives SSE an advantage in its home market while the other two factors reduce profits.
So to wrap up:
When answering short questions, write one point with a short, clear explanation. For 8-mark questions, make sure you give complete explanations and link them to the business. For 12-mark questions, always present both sides, write a balanced evaluation, and end with a justified conclusion. Use the business name SSE throughout your answer for strong application. And remember, one clear idea equals one mark.
That’s all for today’s paper walkthrough. Keep practising, and you’ll master both the writing structure and the exam timing. Great job, everyone
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