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Unlock This CourseIn Paper 2, you'll face case studies about real large businesses. These aren't just stories - they're detailed examinations that test your ability to apply business knowledge to real situations. You'll need to analyse, evaluate and make recommendations just like a business consultant would.
Large businesses operate differently from small ones. They have complex structures, multiple stakeholders and face unique challenges. Your job is to unpick these complexities and show you understand how business theory applies in practice.
Key Definitions:
Large businesses have complex hierarchies, multiple departments and operate across different markets. They face greater scrutiny from regulators, media and society. Their decisions affect thousands of employees and millions of customers, making every choice more significant.
When analysing large businesses, use PESTLE to understand external factors affecting them. This systematic approach helps you spot opportunities and threats that influence business performance.
Government policies, taxation, trade regulations, political stability. How do these affect the business's operations and profitability?
Interest rates, inflation, unemployment, economic growth. What impact do economic conditions have on demand and costs?
Demographics, lifestyle changes, cultural attitudes, education levels. How do social trends affect customer behaviour?
Numbers tell stories in business. When examining case studies, you'll need to interpret financial data to understand how well the business is performing and identify areas of concern.
Don't just look at raw figures - calculate ratios to make meaningful comparisons over time or against competitors.
Gross Profit Margin: (Gross Profit ÷ Revenue) × 100
Net Profit Margin: (Net Profit ÷ Revenue) × 100
These show how efficiently the business converts sales into profit.
Current Ratio: Current Assets ÷ Current Liabilities
Acid Test Ratio: (Current Assets - Stock) ÷ Current Liabilities
These indicate whether the business can pay its short-term debts.
In 2014, Tesco faced a major accounting scandal and declining profits. By analysing their financial statements from 2014-2020, you can see how new management strategies, store closures and investment in online services helped restore profitability. Their gross profit margin recovered from 3.1% in 2015 to 4.2% by 2019.
Large businesses make strategic decisions that shape their future. Use Porter's Five Forces and SWOT analysis to evaluate these choices and their likely outcomes.
This framework helps you understand the competitive environment facing large businesses.
How intense is competition? Are there many competitors fighting for market share?
Can suppliers dictate terms? Are there few alternative suppliers available?
Do customers have many alternatives? Can they negotiate lower prices?
Large businesses must balance the needs of multiple stakeholder groups. Conflicts often arise when what's good for shareholders isn't good for employees or customers.
Shareholders: Want maximum returns and dividend payments
Employees: Seek job security, fair wages and good working conditions
Customers: Demand quality products at reasonable prices
Government: Wants tax revenue and job creation
Local Communities: Concerned about environmental impact
Suppliers: Need reliable orders and prompt payment
The highest marks come from making justified recommendations. Don't just identify problems - suggest realistic solutions and explain why they're the best options.
Follow this format to ensure your recommendations are comprehensive and persuasive:
Clearly identify what needs to be addressed. Use evidence from the case study to support your diagnosis.
Propose specific actions. Consider costs, timescales and potential obstacles to implementation.
Amazon's move into cloud computing (AWS) seemed risky initially but became their most profitable division. When analysing such strategic decisions, consider: What capabilities did Amazon already have? How did this fit their long-term vision? What were the risks and how were they managed? AWS now generates over 70% of Amazon's operating income despite being a smaller portion of total revenue.
Many students make predictable mistakes in case study analysis. Avoid these to improve your grades significantly.
Don't give textbook answers that could apply to any business. Use specific details from the case study.
Consider the business's industry, size and current situation. What works for one company won't work for all.
Don't just list advantages and disadvantages. Make judgements about which factors are most important and why.
Success in Paper 2 requires more than business knowledge - you need exam technique. Here's how to maximise your performance under time pressure.
You'll have limited time to read the case study and answer questions. Plan your approach carefully.
Read the case study twice. First time for general understanding, second time highlighting key data, problems and opportunities.
For evaluation questions, quickly plan your arguments. Decide your overall judgement before you start writing.
A student analysing John Lewis's partnership model scored top marks by connecting their unique ownership structure to employee motivation, customer service quality and long-term decision making. They used specific financial data to show how this model performed during economic downturns compared to traditional retailers. The key was linking theory to evidence throughout their answer.