OCR A Level Business: Different stakeholder and business objectives and Stakeholders (H431) – 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 exam’s 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 follow the OCR A Level Business (H431) content “Different stakeholder and business objectives” and “Stakeholders”, from the specification at Version 2.1 (January 2026), with final assessment in summer 2027. All businesses and figures are invented. Use the study guide and revision notes first. Related pages are the Objectives and Strategic Decisions study guide and the topic practice set. Course links: OCR A Level Business hub, checklist, diagnostics.

Questions

1. Define the term “stakeholder”, and identify one internal and one external stakeholder of a bakery. [3]

2. Lowrigg Dental Group has the aim of being the most trusted dental practice in its region. Distinguish between a tactical objective and an operational objective, using an example of each for Lowrigg. [4]

3. The owner of Garstonby Garden Centre says: “We want more people to come back and buy from us.” Rewrite this as a SMART objective, then identify two features of SMART that the original lacks. [4]

4. Daleswick Borough Leisure Trust is run for a local council. A rival gym is privately owned. Explain how the sector in which each operates is likely to affect its aims and objectives. [6]

5. Ironhaugh Farm Foods has 45 staff. Managers emailed everyone one line: “Cut waste this year.” Some staff reduced packaging, others cut portion sizes. (a) Explain two consequences for Ironhaugh of mis-communicating this objective. [4] (b) Recommend one way the objective could be better communicated. [2]

6. Penderel Fabrics made a net profit of £150,000 on sales revenue of £2.5 million. (a) Calculate its net profit margin. [2] (b) The board sets an objective of a 9% net profit margin on sales revenue of £2.8 million. Calculate the net profit needed, and the percentage increase on the £150,000. [3] (c) Explain one reason why a business such as Penderel may need to change its objectives. [2]

7. Ironhaugh Farm Foods earned a net profit of £240,000. Shareholders expect 60% of net profit to be paid as dividends. Employees ask for a 4% pay rise on a wage bill of £620,000. Assume the pay rise reduces net profit pound for pound. (a) Calculate the current dividend. [1] (b) Calculate the dividend if the pay rise is granted and the 60% policy is kept, and the fall in the dividend. [3] (c) Explain two reasons why shareholders and employees have conflicting objectives. [2] (d) Analyse one impact on Ironhaugh if this conflict is not resolved. [2]

8. Garstonby Garden Centre plans a larger site. A residents’ group objects to the extra traffic. Evaluate the extent to which the local community can influence the decision. [9]

9. The council cuts its annual grant to Daleswick Borough Leisure Trust by 20% from £500,000. The trust’s fee income is £600,000. Users want low prices, the council wants value for money, and staff want secure jobs. Recommend and justify how the trust should deal with these conflicting objectives. [10]

10. Lowrigg Dental Group’s Saturday clinic brings in £90,000 a year and costs £78,000 to run. Some 300 patients rely on Saturday appointments and 14 staff work some Saturday shifts. The owners consider closing it. (a) Calculate the annual surplus from the Saturday clinic. [1] (b) Evaluate the impact of closing the clinic on Lowrigg’s stakeholders. [7]

Answers

1. A stakeholder is any person or group that has a stake in what a business does or is touched by its actions [1]. Internal: employees (or owners, managers) [1]. External: customers (or suppliers, local residents) [1]. [3] Examiner insight: A definition that mentions only “people who own the business” tends to lose credit, because the idea covers anyone affected, owner or not.

2. A tactical objective is a shorter-term target for a team or department that carries out the strategy [1]; for example, offering free hygiene checks to new patients for three months [1]. An operational objective is a day-to-day target for a person or process [1]; for example, reception staff confirm every appointment by phone the day before [1]. [4] Examiner insight: Answers tend to earn credit when the two examples differ clearly in scale and time span; two similar examples blur the distinction.

3. SMART version: raise the share of sales to returning loyalty-card customers from 35% to 45% within 12 months [2]. The original is not measurable (no number to track) [1] and not time-bound (no deadline) [1]. [4] Examiner insight: A rewrite earns credit when it contains a figure and a date; adding “specific” wording without either is unlikely to be enough.

4. Daleswick is public sector, funded through the council, so it is accountable for spending public money [1]. Its objectives will stress access, service quality, value for money and staying within budget [1], for example low-priced sessions for young people [1]. The gym is private sector, owned by people who risk their own money [1], so profit, return to owners and growth are likely to dominate [1]. Sector is a tendency: the trust may still need a surplus and the gym may pursue reputation [1]. [6] Examiner insight: Answers tend to gain when each sector is tied to its source of funds or owners; listing objectives with no reason reads as description only.

5. (a) Staff worked towards different goals, so effort was wasted or duplicated [1] and the waste target may not be met [1]. Staff may feel confused or blamed, lowering morale [1], which could reduce trust in managers’ later messages [1]. (b) Hold a short team briefing that gives a figure, such as waste cut by a stated percentage [1], and lets staff ask questions, which avoids different readings in a workforce of 45 [1]. [6] Examiner insight: Consequences are stronger when each is developed with a link to the case; a bare list such as “low morale” is a single point.

6. (a) Net profit margin = net profit ÷ sales revenue × 100 [1] = 150,000 ÷ 2,500,000 × 100 = 6% [1]. (b) 9% × £2,800,000 = £252,000 [1]. Increase = £102,000 [1], and 102,000 ÷ 150,000 × 100 = 68% [1]. (c) Objectives may change when the market shifts, for example a new competitor [1], so old targets no longer fit the situation [1]. [7] Examiner insight: Showing the formula and units usually protects a calculation answer; credit is also lost by dividing by the target rather than the original profit.

7. (a) 60% × £240,000 = £144,000 [1]. (b) Pay rise = 4% × £620,000 = £24,800 [1]. Net profit = £215,200 [1]. Dividend = £129,120, a fall of £14,880 [1]. (c) Shareholders gain from higher profit while pay is a cost, so one group’s gain is the other’s loss [1]; they also hold different time views, as staff want security now and owners want long-run returns [1]. (d) Staff may become demotivated or leave [1], reducing output and raising recruitment costs [1]. [8] Examiner insight: Answers tend to gain when the pay rise is shown to cut the profit available for dividends; conflict claims with no figure are less convincing.

8. For influence: residents can publicise the objection and affect reputation with customers [1], and a council may take their views into account [1]. Against: the community is outside the business and lacks formal control [1], and the owner can proceed if finance and support are in place [1]. Other stakeholders may matter more, such as lenders who fund the site and customers who want a larger range [1], and shareholders who want growth [1]. The influence depends on size and organisation of the group and the strength of the evidence [1]. Judgement: the community has moderate influence, mainly through delay and reputation, so Garstonby should consult early and offer traffic measures rather than treat the group as a veto [2]. [9] Examiner insight: Evaluation earns more when it weighs the community against other stakeholders and ends with a judgement; one-sided answers are limited.

9. The grant falls by 20% × £500,000 = £100,000 [1]. If covered by fees alone, income would need to rise by 100,000 ÷ 600,000 = 16.7% [1]. The conflict is mainly between users wanting low prices and the funding gap, with staff fearing cuts [1]. Raising all prices equally would hit low-income users and conflict with the access aim [1], and could cut visits [1]. Cutting opening hours saves money but risks jobs and access [1]. Recommendation: a smaller, targeted price rise, new sponsorship, and protected concession rates [1]. This keeps the trust’s access objective while closing part of the gap [1]. Staff and the council should be consulted before decisions, so each group sees the trade-offs [1]. Some groups will lose, such as full-price users paying more, but this is justified by protecting the trust’s main purpose [1]. [10] Examiner insight: Recommendations tend to gain when they name who loses and justify the choice against the organisation’s own objectives, not general principles.

10. (a) £90,000 − £78,000 = £12,000 [1]. (b) Owners lose a surplus of £12,000 [1], though they save management time and could redeploy staff [1]. Patients: 300 lose convenient access and may move to a rival [1], which could also cost weekday custom [1]. Staff: 14 workers lose Saturday hours or pay [1]. Judgement: the surplus is small at about 13% of Saturday revenue, yet the loss of patients and goodwill may be larger, so closure looks weak unless costs can be cut instead [2]. [8] Examiner insight: Answers tend to gain when the figure from the data is used in the judgement; assertions about stakeholders with no evidence are limited.

Where marks are usually lost

• Defining a stakeholder as someone who owns shares.
• Giving two similar examples for different levels of the hierarchy.
• Rewriting a SMART objective without a number or a date.
• Describing sectors without linking them to funding or owners.
• Listing consequences of mis-communication without developing them.
• Dividing by the wrong base in a percentage change.
• Stating that conflict exists without showing what each group wants.
• Evaluating with no judgement, or a recommendation without a cost to some group.

Frequently asked questions

Are these OCR A Level Business H431 past paper questions? No. They are original practice questions written for Marlbridge on the content “Different stakeholder and business objectives” and “Stakeholders”. Use them alongside OCR’s own past papers.

What makes a SMART objective rewrite earn credit? It needs a figure and a date. Adding “specific” wording without either is unlikely to be enough.

How do you show stakeholder conflict convincingly? Show what each group wants and use figures from the case, for example how a pay rise reduces the profit available for dividends. Claims of conflict with no figure are less convincing.

How do you link sector to objectives in an answer? Tie each organisation’s objectives to its source of funds or its owners, such as a council-funded trust being accountable for public money. Listing objectives with no reason reads as description.

What should a recommendation about stakeholders include? Name who loses as well as who gains, and justify the choice against the organisation’s own objectives. A recommendation with no cost to any group is limited.

Next steps

• Review the revision notes and the study guide.
• Visit the OCR A Level Business hub and the checklist.
• Take the free 10-minute diagnostics.
• Book a free trial class.

Official syllabus

OCR Level 3 Advanced GCE in Business (H431), specification Version 2.1 (January 2026), for first assessment in 2017, published by OCR.