Practise Edexcel Business questions on economic, legal, environmental and social influences, applying external change to a firm’s decisions and performance.
Extract A
Lotus Garments Co.
Egyptian business Lotus Garments Co. is one of the leading clothing manufacturers in the world. It produces clothing for the biggest names in denim such as Levi Strauss & Co. and the Wrangler and Lee brands owned by the VF Corporation. Chairman and CEO Hossam Gabr, previously produced jackets and trousers but entered the denim business in 2002. Today 11,800 skilled employees at the Port Said factory can produce up to 26,000,000 items of clothing a year. Lotus Garments Co. has recently adopted both just in time (JIT) and total quality management (TQM) in order to keep up with international competition and give the flexibility to meet its customers' needs. The business meets all international standards for quality, production and health and safety. Although most pairs of jeans are exported to the USA, Lotus Garments Co. also supply clothing retailers in Egypt. It is planning to do two things. Firstly, to increase its sales in Egypt and secondly to reduce its annual total costs of $420m. By working closely with local suppliers Lotus Garments Co. believes it can continue to meet the needs of its customers for many years to come.
Extract B
Egyptian interest rates from 2010 to 2018
Extract A
Lotus Garments Co.
Egyptian business Lotus Garments Co. is one of the leading clothing manufacturers in the world. It produces clothing for the biggest names in denim such as Levi Strauss & Co. and the Wrangler and Lee brands owned by the VF Corporation. Chairman and CEO Hossam Gabr, previously produced jackets and trousers but entered the denim business in 2002. Today 11,800 skilled employees at the Port Said factory can produce up to 26,000,000 items of clothing a year. Lotus Garments Co. has recently adopted both just in time (JIT) and total quality management (TQM) in order to keep up with international competition and give the flexibility to meet its customers' needs. The business meets all international standards for quality, production and health and safety. Although most pairs of jeans are exported to the USA, Lotus Garments Co. also supply clothing retailers in Egypt. It is planning to do two things. Firstly, to increase its sales in Egypt and secondly to reduce its annual total costs of $420m. By working closely with local suppliers Lotus Garments Co. believes it can continue to meet the needs of its customers for many years to come.
Define the term 'health and safety'. (Extract A, line 11)
Assess the likely impact on Lotus Garments Co. of the recent changes in Egyptian
interest rates.
Sources for use with Extract A Brooke Downs Vennard Partnership (BDVP) BDVP is a firm of solicitors located in British Columbia, Canada. Established in 1980, it has grown into one of the most respected legal businesses in the area. This is important because there are over 10,000 qualified solicitors competing for clients in British Columbia. As well as providing clients with assistance when buying property or making a will, the partners specialise in business, contract and commercial law. Clients are allowed either 30 or 60 days to pay on completion of legal work provided by the partnership. This has helped BDVP increase its client base. However, it can make cash flow more difficult to manage. Communication is very important to BDVP and the partners try to replace computers whenever they become out‑of‑date and slow. They also make sure employees are trained in the use of technology. As well as employing five solicitors, BDVP has a team of other employees in legal occupations such as secretaries, administrative assistants and junior associates. Employees currently work from 8.30 am – 5 pm with a 30 minute lunch‑break. All employees are encouraged to take responsibility for their work and are often consulted about changes affecting the office. The latest example of a consultation was a discussion about changes to employee protection legislation and how it would affect the partnership.
Extract B British Columbia Employment Standards Act British Columbia employers can expect significant amendments to the Employment Standards Act to be introduced in 2019. Some of the more significant recommendations for amendment include:
allow alternative working hours within the 40‑hour week to the standard eight‑hours per day
allow employees the right to refuse overtime in circumstances where overtime would conflict with significant family‑related commitments, scheduled educational commitments, or other employment obligations
the existing five days per year unpaid family responsibility leave would be replaced with seven days per year of unpaid leave, which could be taken for reasons of the employee’s own illness or for the care, health, or education of a child in the employee’s care.
Explain one way the number of competitors in British Columbia might affect Brooke Downs Vennard Partnership (BDVP).
Analyse two ways that employee protection legislation may affect a business such as BDVP.
Sources for use with
Extract A
Bee Hive Candles
US-based business, Bee Hive Candles (BHC) produces candles made from 100% pure beeswax. All candles are handmade using beeswax from US bees. Jennifer Wesolowski started the business in 2000, using personal savings. She decided to change from making candles as a hobby to setting it up as a business. A wide range of candles are offered but by using 100% beeswax, all candles are environmentally friendly. Unlike typical paraffin candles, they are biodegradable and produce no harmful toxins. They burn for longer, meaning better value for money. Although still a small business, BHC is growing. This is due to increasing consumer awareness of environmental issues and positive feedback on social media platforms. Jennifer remains dedicated to making quality candles and offering outstanding customer service. Newsletters are emailed to existing customers to advise of new products and offers. BHC charges $9.95 to send its candles to customers all over the US but at the moment does not accept orders from outside the US. Prices of the candles range from $6.95 to over $100 for a large pack of candles. The best-selling product is the pillar candle, priced at $17.95. It is popular because of its relatively low price and burns for approximately 50 hours.
Extract B
Candle sales in the US – some figures
• The US has the largest share of customers buying candles in the world.
• In the US 35% of all candles are sold online and this is increasing.
• Beeswax candles account for only 2% of all candle sales in the US market; this figure is increasing.
• Paraffin candles are currently the most popular type of candle, with nearly 40% of the market. This is followed by soy wax, palm wax and beeswax.
Discuss whether BHC can successfully compete with larger candle making
businesses.
Extract A
Lotus Garments Co.
Egyptian business Lotus Garments Co. is one of the leading clothing manufacturers in the world. It produces clothing for the biggest names in denim such as Levi Strauss & Co. and the Wrangler and Lee brands owned by the VF Corporation. Chairman and CEO Hossam Gabr, previously produced jackets and trousers but entered the denim business in 2002. Today 11,800 skilled employees at the Port Said factory can produce up to 26,000,000 items of clothing a year. Lotus Garments Co. has recently adopted both just in time (JIT) and total quality management (TQM) in order to keep up with international competition and give the flexibility to meet its customers' needs. The business meets all international standards for quality, production and health and safety. Although most pairs of jeans are exported to the USA, Lotus Garments Co. also supply clothing retailers in Egypt. It is planning to do two things. Firstly, to increase its sales in Egypt and secondly to reduce its annual total costs of $420m. By working closely with local suppliers Lotus Garments Co. believes it can continue to meet the needs of its customers for many years to come.
Extract B
Egyptian interest rates from 2010 to 2018
Assess the likely impact on Lotus Garments Co. of the recent changes in Egyptian
interest rates.
Extract A
Lotus Garments Co.
Egyptian business Lotus Garments Co. is one of the leading clothing manufacturers in the world. It produces clothing for the biggest names in denim such as Levi Strauss & Co. and the Wrangler and Lee brands owned by the VF Corporation. Chairman and CEO Hossam Gabr, previously produced jackets and trousers but entered the denim business in 2002. Today 11,800 skilled employees at the Port Said factory can produce up to 26,000,000 items of clothing a year. Lotus Garments Co. has recently adopted both just in time (JIT) and total quality management (TQM) in order to keep up with international competition and give the flexibility to meet its customers' needs. The business meets all international standards for quality, production and health and safety. Although most pairs of jeans are exported to the USA, Lotus Garments Co. also supply clothing retailers in Egypt. It is planning to do two things. Firstly, to increase its sales in Egypt and secondly to reduce its annual total costs of $420m. By working closely with local suppliers Lotus Garments Co. believes it can continue to meet the needs of its customers for many years to come.
Extract B
Egyptian interest rates from 2010 to 2018
Extract A
Lotus Garments Co.
Egyptian business Lotus Garments Co. is one of the leading clothing manufacturers in the world. It produces clothing for the biggest names in denim such as Levi Strauss & Co. and the Wrangler and Lee brands owned by the VF Corporation. Chairman and CEO Hossam Gabr, previously produced jackets and trousers but entered the denim business in 2002. Today 11,800 skilled employees at the Port Said factory can produce up to 26,000,000 items of clothing a year. Lotus Garments Co. has recently adopted both just in time (JIT) and total quality management (TQM) in order to keep up with international competition and give the flexibility to meet its customers' needs. The business meets all international standards for quality, production and health and safety. Although most pairs of jeans are exported to the USA, Lotus Garments Co. also supply clothing retailers in Egypt. It is planning to do two things. Firstly, to increase its sales in Egypt and secondly to reduce its annual total costs of $420m. By working closely with local suppliers Lotus Garments Co. believes it can continue to meet the needs of its customers for many years to come.
Define the term 'health and safety'. (Extract A, line 11)
Sources for use with Extract A Brooke Downs Vennard Partnership (BDVP) BDVP is a firm of solicitors located in British Columbia, Canada. Established in 1980, it has grown into one of the most respected legal businesses in the area. This is important because there are over 10,000 qualified solicitors competing for clients in British Columbia. As well as providing clients with assistance when buying property or making a will, the partners specialise in business, contract and commercial law. Clients are allowed either 30 or 60 days to pay on completion of legal work provided by the partnership. This has helped BDVP increase its client base. However, it can make cash flow more difficult to manage. Communication is very important to BDVP and the partners try to replace computers whenever they become out‑of‑date and slow. They also make sure employees are trained in the use of technology. As well as employing five solicitors, BDVP has a team of other employees in legal occupations such as secretaries, administrative assistants and junior associates. Employees currently work from 8.30 am – 5 pm with a 30 minute lunch‑break. All employees are encouraged to take responsibility for their work and are often consulted about changes affecting the office. The latest example of a consultation was a discussion about changes to employee protection legislation and how it would affect the partnership.
Extract B British Columbia Employment Standards Act British Columbia employers can expect significant amendments to the Employment Standards Act to be introduced in 2019. Some of the more significant recommendations for amendment include:
allow alternative working hours within the 40‑hour week to the standard eight‑hours per day
allow employees the right to refuse overtime in circumstances where overtime would conflict with significant family‑related commitments, scheduled educational commitments, or other employment obligations
the existing five days per year unpaid family responsibility leave would be replaced with seven days per year of unpaid leave, which could be taken for reasons of the employee’s own illness or for the care, health, or education of a child in the employee’s care.
Explain one way the number of competitors in British Columbia might affect Brooke Downs Vennard Partnership (BDVP).