Cambridge International AS & A Level: Business 9609/22

Cambridge International AS & A Level
BUSINESS 9609/22
Paper 2 Business Concepts 2 October/November 2023
1 hour 30 minutes
You must answer on the enclosed answer booklet.

* 3 0 8 4 6 0 5 4 0 7 *
You will need: Answer booklet (enclosed)
INSTRUCTIONS
● Answer all questions.
● Follow the instructions on the front cover of the answer booklet. If you need additional answer paper,
ask the invigilator for a continuation booklet.
INFORMATION
● The total mark for this paper is 60.
● The number of marks for each question or part question is shown in brackets [ ].
This document has 4 pages. Any blank pages are indicated.
DC (RW) 316884/2
© UCLES 2023 [Turn over
2
1 Gold Theme Park (GT)
Gold Park was a mine where gold was extracted until 2012. Although there was still some
gold in the mine, the direct costs of extracting it became too high.
The area around Gold Park has become a tourist destination. There has recently been
development of hotels and other accommodation. A new marina complex has also been
built which attracts boat owners to use the local lakes and rivers. 5
Kayo is an entrepreneur who purchased the mine in 2015. She converted the mine into GT,
a theme park where customers can learn about gold mining and have fun. GT now includes
a museum, guided underground tours of the mine and a roller coaster ride around the park.
There is also a restaurant and gift shop.
Kayo employs some of the people who previously worked in the gold mine to work as tour 10
guides in the theme park. She also employs some younger workers, who require training,
as customer service representatives. Kayo believes that developing intrapreneurship is
important to the ongoing success of GT.
Table 1.1 shows some data about GT over the past three years.
Table 1.1 Data about GT 15
2020 2021 2022

Revenue ($m) 3.4 3.2 2.8
Number of employees 54 55 47
Profit ($m) 0.9 0.3 0.2
Number of visitors (m) 0.8 0.8 0.65 20
GT’s Marketing Director has conducted some primary market research to find out why
visitor numbers have fallen. The findings indicate that many potential customers think
the park is not fun and the price of entry is too high. Kayo has now asked the Marketing
Director to conduct some secondary market research to help improve GT.
(a) (i) Identify one type of training. [1]
(ii) Explain the term direct costs (line 2). [3]
(b) (i) Refer to Table 1.1. Calculate the change in GT’s total costs between 2020 and 2022. [3]
(ii) Explain one way to measure the size of GT. [3]
(c) Analyse two possible sources of secondary market research that the Marketing Director
could use to help improve GT. [8]
(d) Evaluate the importance to the ongoing success of GT of developing intrapreneurship. [12]
© UCLES 2023 9609/22/O/N/23

3
2 Bear Bears (BB)
BB is a business partnership owned by Sade and Chika. BB produces personalised teddy

bears (toys) for children.
The toys are made using mass customisation targeted at specific market segments. Each
toy has the same shape and size but it is customised with names and words provided by
the customer. These are hand-stitched onto the toy and the employees are paid using 5
piece rate. Customers receive their products within a week of ordering.
Each toy is sold for $50 and has a unit contribution of $6. Last month BB sold 4000 units
with a margin of safety of 120 units.
BB currently holds a large amount of inventory in a temperature-controlled warehouse (see

Table 2.1). 10
Table 2.1 BB’s current inventory
Type of inventory Items

Raw materials 100 kg cotton fabric
300 kg synthetic fibre (filling)
Work in progress 300 non-customised toys 15
Finished products None
Sade thinks that BB should adopt a just in time (JIT) approach to inventory management.
However, Chika is concerned about the possible impact on BB.
The stitching department is managed by Chika. She has recently received a complaint
from David who is the only male employee in the stitching department (see Fig. 2.1). 20
I feel that I am being discriminated against because I am a man. There are no washroom
facilities for me on the ground floor but there are for the women. I have to go up two
floors for a washroom which takes me a lot of time.
I am given all the tasks which require heavy lifting. I am often asked to fix problems with
other people’s stitching machines, and this slows my production. 25
I earn less money than anyone else in the stitching department.
Fig. 2.1 Complaint from David in the stitching department
After some further investigation, Chika believes there needs to be increased equality in the
stitching department.
(a) (i) Identify one method of market segmentation. [1]
(ii) Explain the term mass customisation (line 3). [3]
(b) (i) Calculate BB’s fixed costs last month. [3]
(ii) Explain one limitation for BB of using break-even analysis. [3]
(c) Analyse two possible impacts on BB of adopting a just in time (JIT) approach to inventory
management. [8]
(d) Evaluate the most likely impact on BB of increased equality in its stitching department. [12]
© UCLES 2023 9609/22/O/N/23
4
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reasonable effort has been made by the publisher (UCLES) to trace copyright holders, but if any items requiring clearance have unwittingly been included, the
publisher will be pleased to make amends at the earliest possible opportunity.
To avoid the issue of disclosure of answer-related information to candidates, all copyright acknowledgements are reproduced online in the Cambridge
Assessment International Education Copyright Acknowledgements Booklet. This is produced for each series of examinations and is freely available to download
at www.cambridgeinternational.org after the live examination series.
Cambridge Assessment International Education is part of Cambridge Assessment. Cambridge Assessment is the brand name of the University of Cambridge
Local Examinations Syndicate (UCLES), which is a department of the University of Cambridge.
© UCLES 2023 9609/22/O/N/23

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Cambridge International AS & A Level

You must answer on the enclosed answer booklet.

You will need: Answer booklet (enclosed)

This document has 4 pages. Any blank pages are indicated.

1 Gold Theme Park (GT)

Table 1.1 Data about GT 15

2020 2021 2022

(a) (i) Identify one type of training. [1]

(ii) Explain the term direct costs (line 2). [3]

(ii) Explain one way to measure the size of GT. [3]

© UCLES 2023 9609/22/O/N/23

2 Bear Bears (BB)

BB is a business partnership owned by Sade and Chika. BB produces personalised teddy

BB currently holds a large amount of inventory in a temperature-controlled warehouse (see

Table 2.1 BB’s current inventory

Type of inventory Items

Fig. 2.1 Complaint from David in the stitching department

(a) (i) Identify one method of market segmentation. [1]

(ii) Explain the term mass customisation (line 3). [3]

(b) (i) Calculate BB’s fixed costs last month. [3]

(ii) Explain one limitation for BB of using break-even analysis. [3]

© UCLES 2023 9609/22/O/N/23

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