CAIE A-Level Business AS 3.1.3 Markets Questions
Practise calculating and explaining market growth, market share and customer orientation in business contexts.
- Syllabus
- 2026–2028
- Course
- Business 9609
- Level
- AS
Exam points
- calculate and explain market growth and market share
- apply market growth and market share calculations to business data
- interpret market growth and market share data
CAIE A-Level Business AS 3.1.3 Markets Questions question 1
Custom motorcycles (CM)
CM is a private limited company. It was set up by Joyce, who identified a gap in the market for specialist motorcycle components. CM's engineers make the components using job production. The engineers are highly skilled, trained and motivated and very proud of their high-quality products which are sold using price skimming.
CM was featured in a popular motorcycle magazine in autumn 2022, which has increased CM's reputation for quality unique products. This led to an increase in CM's sales as shown in Fig. 2.1.
Fig. 2.1: CM's sales data 2022-2023
Lead times for CM's products have increased from 4 weeks to 10 weeks. This has put additional pressure onto CM's engineers, who are salaried employees. They often have to work evenings and weekends.
Harry, the Sales Manager, thinks demand is going to continue to increase. He wants CM to employ more skilled engineers and continue to use job production. However, Joyce wants CM to invest in new technology and change from using job production to batch production.
Refer to Fig. 2.1. Calculate the total market growth between summer 2022 and summer 2023.
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