A Level Business: Business strategy (Cambridge 9609) – Practice Questions

These are original questions written for Marlbridge, for revision and practice on this content. They are not reproduced past-paper questions, and they do not replicate the exact structure, question count or mark tariffs – examination boards hold copyright in their own papers. Use these alongside the official past papers from your board or school.

These questions cover section 6.2 Business strategy (6.2.1 and 6.2.2) of the Cambridge International AS & A Level Business 9609 syllabus for examination in 2026, 2027 and 2028, an A Level topic. All businesses are invented. Revise first with the study guide and revision notes. Links: the Cambridge A Level Business hub, the checklist and the free diagnostics.

Questions

1. Define the term business strategy. [2]

2. State the three stages of strategic management. [3]

3. Veldmere Outdoor makes waterproof jackets and sells them in its own shops in one country. It is considering three actions.

Action X: sell walking boots in its existing shops. Action Y: open an online store to sell its current jackets in a neighbouring country. Action Z: offer a discount to existing customers who buy a second jacket.

(a) Identify the Ansoff matrix strategy shown by each action. [3] (b) Explain which of the three actions is likely to carry the most risk. [2]

4. Tallow Quay Fabrics may sell its printed cotton through its own online store, costing £150,000 to set up, or through a wholesale partnership, costing £40,000. Managers estimate a 0.7 probability of a good market response and 0.3 of a poor one.

Option	Payoff, good response	Payoff, poor response
Own online store	£320,000	£90,000
Wholesale partnership	£170,000	£110,000

(a) Calculate the expected value and net gain of the own online store. [3] (b) Calculate the expected value and net gain of the wholesale partnership. [2] (c) Recommend which option Tallow Quay should choose. Justify your answer. [3]

5. Ilmswick Grocers is an independent shop. Two supermarkets are opening nearby. One wholesaler supplies 80% of its stock and plans a price rise. Analyse two of Porter’s five forces for Ilmswick Grocers. [6]

6. Kestrelgate Hotels is planning digital check-in at all its hotels. The managers score each force from 1 (weak) to 5 (strong).

Driving force	Score	Restraining force	Score
Lower staffing cost	4	Front-desk staff fear job losses	5
Guest convenience	3	Older guests may dislike the system	2
Better booking data	2	System cost	1

(a) Calculate the net score from the force field analysis. [2] (b) Explain one action Kestrelgate could take in response to the analysis. [3]

7. Classify each fact about Veldmere Outdoor as a strength, weakness, opportunity or threat in a SWOT analysis.

(a) It owns a patented waterproof coating. [1] (b) A new tax is placed on imported fabric. [1] (c) Most of its sales fall in four months of the year. [1] (d) Interest in hill walking is growing among young adults. [1]

8. Veldmere Outdoor plans a factory in a country where fuel prices and exchange rates are uncertain. Explain two ways scenario planning could help Veldmere, and one limitation of it. [5]

9. Tallow Quay Fabrics has developed a dyeing process that gives colours that do not fade. Outdoor, upholstery and fashion customers all value it. Rivals have failed to copy it.

(a) Explain whether the dyeing process is a core competence. [3] (b) Explain how Tallow Quay might use blue ocean strategy. [3]

10. Kestrelgate Hotels has a long-serving workforce, decides after wide consultation and is cautious about new ideas. The board has produced a five-year plan to double digital bookings.

(a) Explain two reasons why corporate planning is important to Kestrelgate Hotels. [4] (b) Explain how Kestrelgate’s corporate culture may affect decision-making about the plan. [2]

11. Orrinwick Print Group is moving from printing leaflets to digital marketing services. The new chief executive has described a vision of “the agency our clients call first”. She holds monthly meetings with every team, asks staff for ideas and coaches managers. Many printers fear their skills are no longer needed and two senior managers have resigned. Evaluate whether transformational leadership is the most important factor in the success of this strategic change. [10]

12. Gorsemere Biscuits makes all its products in one factory. It has no contingency plan. Managers estimate a 0.04 chance in any year of a product recall. A recall would cost £600,000 without a plan and £250,000 with one. A contingency plan, which would also cover fire and loss of the main flour supplier, would cost £45,000 a year. Justify whether Gorsemere should adopt a contingency plan. [10]

Answers

1. A business strategy is a long-term plan of action [1] that sets the direction of the whole business and how its resources will be used to reach its objectives [1]. [2] Examiner insight: Include the long-term nature and whole-business scope.

2. Analysis [1], choice [1], implementation [1]. [3] Examiner insight: A tool name such as SWOT is not a stage.

3. (a) X is product development, as a new product is sold in an existing market [1]. Y is market development, as the existing product is sold in a new market [1]. Z is market penetration, as the existing product is sold more in the existing market [1]. (b) Action X or Y is riskier than Z because it moves into something new to the business, either an unfamiliar product or an unfamiliar country with unknown customers [1], while Z uses a known product and customer base [1]. [2] Examiner insight: Name the strategy and give the reason in terms of product and market.

4. (a) EV = (0.7 × 320,000) + (0.3 × 90,000) = 224,000 + 27,000 [1] = £251,000 [1]. Net gain = 251,000 − 150,000 = £101,000 [1]. (b) EV = (0.7 × 170,000) + (0.3 × 110,000) = 119,000 + 33,000 = £152,000 [1]. Net gain = 152,000 − 40,000 = £112,000 [1]. (c) The wholesale partnership has the higher net gain, by £11,000 [1]. The own store has the higher possible payoff (£320,000 against £170,000) but needs far more investment and gives only £90,000 if the response is poor [1]. The own store only comes out ahead if the probability of a good response is above about 0.76, and 0.7 is an estimate, so I recommend the wholesale partnership [1]. [3] Examiner insight: After the numbers, comment on the probabilities and on risk.

5. Rivalry between existing firms: the two new supermarkets will compete directly with Ilmswick [1], probably with lower prices or more choice, so it may lose customers [1], reducing profit unless it can differentiate [1]. Bargaining power of suppliers: one wholesaler supplies 80% of the stock [1], so Ilmswick has few alternatives and little power to resist the price rise [1], which raises costs and cuts margins [1]. [6] Examiner insight: Quote the stem for each force, then follow it through to profit.

6. (a) Driving total = 4 + 3 + 2 = 9 [1]. Restraining total = 5 + 2 + 1 = 8, so net score = +1 [1]. (b) The largest restraining force is staff fear of job losses (5) [1]. Kestrelgate could promise retraining and redeployment of front-desk staff to guest services [1], which would reduce this force, raising the net score and making successful change more likely [1]. [3] Examiner insight: Aim the action at the strongest restraining force and explain the effect.

7. (a) Strength [1]. (b) Threat [1]. (c) Weakness [1]. (d) Opportunity [1]. [4] Examiner insight: Decide first whether a fact is inside or outside the business.

8. First way: it tests the plan against several plausible futures, such as high fuel prices with a weak currency [1], showing which outcomes the factory could not survive [1]. Second way: it prompts a plan for each scenario, such as trigger points for cutting output [1], so managers respond faster [1]. Limitation: scenarios rest on judgement and cannot include every event [1]. [5] Examiner insight: Link each way to the uncertainty in the stem.

9. (a) It is likely to be a core competence because it gives access to several markets (outdoor, upholstery and fashion) [1], customers value the lasting colour [1] and rivals have failed to copy it [1]. (b) Tallow Quay could look for a market space with no direct rivals instead of competing on price [1], for example by creating a product such as long-life colour guarantees for upholstery and eliminating or reducing costs customers do not value such as many small colour ranges [1], which gives high value to customers at low cost, called value innovation [1]. [6] Examiner insight: For blue ocean, link each action to something customers value or do not.

10. (a) Example: it gives direction, so all hotels work towards doubling digital bookings [1] and decisions in different departments fit together [1]. It directs resources, such as the technology budget, to the goal [1] and gives a target for measuring progress [1]. (b) A cautious culture may slow the choice and make managers favour low-risk steps [1], while wide consultation may improve support for the plan but make decisions slower [1]. [6] Examiner insight: Link each reason to the stated plan and culture to the stem.

11. Knowledge: transformational leadership means inspiring people to commit to a vision and look beyond their own interests [1]. Application: the chief executive sets a vision, holds monthly team meetings, asks for ideas and coaches managers [1]. Analysis: this should raise commitment and reduce resistance by involving staff in a change that threatens skills [1], and coaching helps managers carry the change [1]. Other factors: retraining is needed for printers who fear loss of skills [1]; milestones and budgets are needed to control progress [1]; a culture focused on printing may resist the new direction [1]. Evaluation: the resignation of two senior managers suggests leadership alone is not enough [1]. Leadership matters because other actions rely on a vision explaining the change [1]. Judgement: leadership is probably the most important starting factor, but success depends on combining it with training and control, particularly in the short run, [1]. [10] Examiner insight: Weigh leadership against another factor, using the case, and finish on a supported judgement.

12. Knowledge: a contingency plan is prepared in advance for a specific serious event [1], whereas crisis management is the response during an event [1]. Application: with one factory and one main flour supplier, a single event could stop production [1]. Financial analysis: the plan cuts the recall loss from £600,000 to £250,000, a saving of £350,000 [1]. With probability 0.04 this is an expected saving of £14,000 a year, below the £45,000 cost [1]. Analysis: the plan also covers fire and flour supply, which would add to the expected saving but are not quantified [1], and a recall could damage reputation and sales beyond the stated cost [1]. Evaluation: the probability of 0.04 is an estimate, and if it were higher the plan would pay for itself sooner [1]. A smaller plan limited to the highest risks may be cheaper [1]. Judgement: on the recall alone the plan does not pay, but because Gorsemere depends on one site and one supplier, I would adopt a plan, probably focused first on fire and supplier loss, because the potential damage could threaten the business [1]. [10] Examiner insight: Use the stem’s numbers, say what they omit, and decide.

Where marks are usually lost

• Naming a tool without case evidence.
• Giving expected value when asked for net gain.
• Recommending an option from the decision tree with no comment on the probabilities.
• Confusing market development with product development.
• Classifying an external fact as a strength or weakness in a SWOT.
• Ending an evaluation with a summary, not a judgement.

Next steps

• Recap with the revision notes and study guide.
• Use the hub, checklist and free 10-minute diagnostics.
• Book a free trial class.

Frequently asked questions

Is business strategy in the AS or A Level part of Cambridge 9609? Section 6.2 Business strategy is an A Level topic in Cambridge AS and A Level Business 9609. These questions use tools such as the Ansoff matrix, decision trees, force field analysis and SWOT.

What are the three stages of strategic management? Analysis, choice and implementation. A tool such as SWOT is used within a stage but is not itself a stage.

What is the difference between expected value and net gain in a decision tree? Expected value weights each outcome by its probability and adds them. Net gain is the expected value minus the cost of the option; giving expected value when net gain is asked for loses marks.

How do I avoid mistakes in a SWOT analysis question? Decide first whether a fact is inside or outside the business. Strengths and weaknesses are internal, while opportunities and threats are external.

What do examiners want after a decision tree calculation? A recommendation that also comments on the reliability of the probabilities and on risk, not just a choice of the option with the highest figure.

Official syllabus

Cambridge International AS & A Level Business 9609 syllabus for examination in 2026, 2027 and 2028, published by Cambridge University Press & Assessment (Cambridge Assessment International Education), section 6.2.