CAIE A-Level Business AS 3.3.3 Product Portfolio Analysis Questions
Practise using product portfolio analysis, the Boston Matrix and product life cycle decisions.
- Syllabus
- 2026–2028
- Course
- Business 9609
- Level
- AS
Exam points
- explain product portfolio analysis and the Boston Matrix
- analyse portfolio and product life cycle decisions
- evaluate strategies for extending a product life cycle
CAIE A-Level Business AS 3.3.3 Product Portfolio Analysis Questions question 1
[Maximum number: 12]
Festival Wear (FW)
FW is a partnership started by two friends, Maz and Jane. FW manufactures and sells high quality T-shirts at $ 40 each. The business can manufacture 35000 T-shirts per month using mass customisation. The T-shirts are only sold at music festivals and concerts and are customised to each event. FW has never advertised the T-shirts, relying on a sales team to attend a festival or concert and personally sell the T-shirts.
Current costs:
- variable: $ 10 per T-shirt
- fixed: $ 200000 per month.
Sales average 27000 T-shirts per month. Currently the sales team is paid a monthly salary, but Maz is proposing a new payment method in order to increase sales volume. This will mean a lower monthly salary but a commission of $ 2 per T-shirt will be paid. Maz estimates that sales volume would increase to 30000 per month.
Costs if the new payment method is introduced:
- variable: $ 12 per T-shirt
- fixed: $ 182000 per month.
Evaluate whether FW should expand its product portfolio to increase its sales volume.
Evaluate whether FW should expand its product portfolio to increase its sales volume.
Level
3
AO2 Application 2 marks
AO3 Analysis 2 marks
AO4 Evaluation 6 marks
5-6 marks
Developed evaluation in context
- A developed judgement/conclusion is made in the business context.
- Developed evaluative comments which balance some key arguments in the business context.
2
2 marks
Developed application of relevant point(s) to the business context.
2 marks
Developed analysis that identifies
connections between
causes, impacts and/or
consequences.
3-4 marks
Developed evaluation
- A developed judgement/conclusion is made.
- Developed evaluative comments which balance some key arguments.
1
1 mark
Limited application of relevant point(s) to the business context.
1 mark
Limited analysis that identifies
connections between
causes, impacts and/or
consequences.
1-2 marks
Limited evaluation
- A judgement/conclusion is made with limited supporting comment/evidence.
- An attempt is made to balance the arguments.
0
0 marks
No creditable response.
0 marks
No creditable response.
0 marks
No creditable response.
2(d)
Indicative content
AO1 Knowledge and understanding
Knowledge of product portfolio (max 2 marks), including:
- Range of products in one business
- Product diversification
- Meet customer demand for more product choice
Could relate to product life-cycle, Boston matrix
Could consider impact on the 4 ps / 4 cs e.g.
- Price
- Product
- Promotion
- Place
AO2 Application
Context applied to features of FW □ (max 2 marks), including:
- Reliance on one product is risky so maybe should diversify into baseball caps
- May need to change distribution method - sell at music festivals only - maybe could sell elsewhere e.g., other retailers, online
- Other products more suitable e.g., posters
- Move to a bigger factory provides opportunity
- Requires $4 m investment
- FW is expanding
2(d)
AO3 Analysis
Limited analysis - - candidate shows one link in the chain of analysis.
Developed analysis - candidate shows two or more links in the chain of analysis.
- Requires research to establish demand
- Single product portfolio - is the market saturated?
- Satisfy more customers - increasing sales volume and increasing revenue and profit
- There is a lack of direction for the future of the business and so there is a risk to the security and stability of FW.
- Need for an integrated marketing mix to increase sales volume
A04 Evaluation
Limited evaluation - unsupported judgement and/or a weak attempt at evaluative comment
Developed evaluation E - supported judgement and/or reasonable evaluative comment Developed evaluation in context EE - supported judgement in context and/or reasonable evaluative comment in context.
- An evaluation is likely to come from candidates making a judgment and justification of expanding product portfolio.
- Any changes that might need to be made to make it more effective/less risky.
- Are there more suitable methods of increasing sales volume?
- Business expanding is now the right time to increase products.
- High investment in the new factory needs careful consideration of equipment if expand portfolio.
Accept all valid responses.
Note: Developed evaluation in context ses should link to sales.
All question bank results loaded