OxfordAQA A-Level Business: Change, risk and uncertainty (9725) – 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.

This set practises section 3.4.6 Change, risk and uncertainty from the OxfordAQA International AS and A-level Business (9725) specification, Version 1.1, for International AS exams May/June 2027 onwards and International A-level exams May/June 2028 onwards. It is International A-level only content, tested in Unit 4: Business strategy. Candidates on the older 9625 specification should use questions written for it. Every business here is invented.

Each idea is taught in the study guide; recap it with the revision notes. The Business (9725) course hub lists other topics, the printable checklist tracks coverage and the free diagnostics find gaps.

Questions

1. State two of Kotter and Schlesinger’s reasons for employee resistance to change. [2]

2. Explain the difference between risk and uncertainty. [2]

3. Hollinsgate Dairy is considering switching from plastic to glass milk bottles. Managers scored each force from 1 (weak) to 5 (strong).

Driving forces	Score	Restraining forces	Score
Supermarkets demand reusable packaging	3	Cost of a new filling line	5
Lower waste-disposal charges	2	Staff lack skills for glass handling	3
Government tax on plastic packaging	4	Existing stock of plastic bottles	2

(a) Calculate the total of each set of forces and state whether the change is likely to go ahead. [2] (b) A training programme would cut the skills restraining force to 1. Calculate the new balance and comment on it. [2]

4. Cresswick Print faces three problems. Identify the type of risk in each: (i) a fine for breaching data protection rules on customer mailing lists; (ii) its only paper supplier goes out of business; (iii) a hacker steals customer payment details. [3]

5. Zellaby Games, a video game studio, plans to stop making console games and focus on mobile games. Explain one advantage and one disadvantage of this change for Zellaby’s shareholders. [4]

6. Westerlay Fashion is moving buying decisions from its store managers to a head-office team. Analyse two reasons why store managers might resist this change. [6]

7. Rookfield Hotels owns resorts that depend on international tourists. Analyse how scenario planning could help Rookfield manage uncertainty. [6]

8. Castellane Opticians stores patient records online. Explain one advantage and one disadvantage of investing in cybersecurity measures. [4]

9. Lunsby Engineering must introduce weekend shifts within two months to meet a large export order. Many staff oppose the change because they would lose family time. Evaluate whether Lunsby should use participation or coercion to overcome this resistance. [10]

10. Pennistow Ferries runs passenger ferries. It spends £2,400,000 a year on engine parts, of which £1,680,000 comes from one supplier. An insurer offers cover of £900,000 for lost earnings if a vessel is out of service, for a premium of £36,000 a year.

(a) Calculate the percentage of engine-part spending that comes from the one supplier. [2] (b) Evaluate whether diversifying suppliers or taking out insurance is the better way for Pennistow to manage its operational risk. [12]

11. Orrinford Builders, a construction firm with seven management levels, keeps losing contracts to faster rivals and faces uncertain demand as interest rates rise. Its new managing director proposes delayering, empowering site teams and setting up cross-functional bid teams. Evaluate whether becoming an agile business is the best way for Orrinford to manage uncertainty. [12]

Answers

1. Any two of: self-interest [1]; misunderstanding and lack of trust [1]; inertia; different assessments of the situation. [2] Examiner insight: Ways of overcoming resistance (such as education) answer a different list and earn nothing here.

2. Risk is where possible outcomes can be identified and their likelihood estimated [1]; uncertainty is where outcomes cannot be predicted or measured with confidence [1]. [2] Examiner insight: An example of each helps, but the contrast in measurability is the point being tested.

3. (a) Driving 3 + 2 + 4 = 9; restraining 5 + 3 + 2 = 10 [1]. Restraining forces are stronger, so the change is unlikely to go ahead as things stand [1]. (b) Restraining forces become 5 + 1 + 2 = 8, so driving forces now lead by 1 [1]. The change becomes possible, but the margin is narrow and the scores are subjective, so Hollinsgate should also tackle the filling-line cost, for example by leasing [1]. [4] Examiner insight: Show the totals, then interpret them; a comment that the scores are judgements adds analysis.

4. (i) Compliance risk [1]; (ii) operational risk (supply chain) [1]; (iii) cybersecurity risk [1]. [3] Examiner insight: Part (iii) also damages reputation, but name the type that directly causes the problem.

5. Advantage: mobile games are cheaper to develop and reach a large market [1], so profit and the share price could rise over time [1]. Disadvantage: Zellaby loses its existing console revenue while building a mobile audience [1], so dividends may fall in the short term and the change carries strategic risk [1]. [4] Examiner insight: Keep each point about shareholders; benefits to players or staff are not what the question asks.

6. Self-interest: store managers lose authority over what they stock [1], a valued part of their status [1], so they may feel demoted and work less willingly with head office [1]. Different assessment of the situation: managers may believe they know local customers better than a central team [1], expecting central buying to leave unsold stock in their stores [1]. Because this objection rests on genuine knowledge, Westerlay may need to involve them rather than ignore them [1]. [6] Examiner insight: Each reason needs a chain of consequences in Westerlay’s context; naming four reasons in a list stays at knowledge level.

7. Rookfield cannot predict events such as a pandemic, a currency swing or new visa rules [1]. Scenario planning sets out several plausible futures, such as “international arrivals halve” [1], and plans a response to each, such as marketing to domestic tourists [1]. Responses are then ready, so Rookfield reacts faster than rivals and protects occupancy [1]. However, planning takes management time [1], and the event that occurs may match no scenario, so flexibility still matters [1]. [6] Examiner insight: Scenarios named for this hotel business show application far better than a generic definition.

8. Advantage: firewalls, encryption and staff training reduce the chance of patient records being stolen [1], avoiding regulatory fines and lost patient trust [1]. Disadvantage: the measures are a continuing cost for a small business [1], and no system is completely secure, so some risk remains [1]. [4] Examiner insight: Linking the advantage to patient data, which is especially sensitive, develops the point.

9. Participation would involve staff in designing the rota, for example choosing which weekends they work [1]. They would understand the reason for the export order [1] and commitment would be higher, so productivity and retention should hold up [1]. But consultation takes time [1], and with only two months Lunsby may not reach agreement before production must start [1].

Coercion, such as making weekend work a condition of employment, is fast [1] and guarantees the order is met on time [1]. However, staff losing family time will resent it, so motivation may fall and skilled engineers may leave [1], damaging Lunsby after the order is complete [1].

Judgement: a time-limited form of participation is better: managers fix the requirement for weekend cover but let teams design the rota within two weeks, with coercion held back only for the final deadline [1]. [10] Examiner insight: The two-month deadline is the key case fact; a judgement that ignores it would be generic.

10. (a) 1,680,000 ÷ 2,400,000 × 100 [1] = 70% [1] (b) With 70% of parts from one supplier, a failure at that supplier could halt several ferries [1]. Diversifying to a second supplier reduces that dependence [1], so a breakdown can still be repaired and sailings continue [1]. However, splitting orders may lose bulk discounts [1], and parts from a new supplier need testing for safety and compatibility [1].

Insurance costs £36,000, which is 4% of the £900,000 cover [1], or one twenty-fifth of a single payout [1]. It replaces lost earnings [1], but it does not keep ferries running; passengers still face cancellations, so reputational damage is not covered [1]. A claim may also raise future premiums [1].

Judgement: diversifying is better because it keeps the service running, which insurance cannot do [1]. Pennistow could still insure against events no supplier choice prevents, such as storm damage, so the methods work best together [1]. [14] Examiner insight: Using the 70% and 4% figures inside the argument turns a calculation into evidence for the judgement.

11. Delayering from seven levels speeds decisions, so Orrinford can price bids faster [1] and win contracts it currently loses to rivals [1]. Empowered site teams can solve problems on site without waiting for approval [1], cutting delays that push up costs [1]. Cross-functional bid teams combine estimators, engineers and finance staff [1], so bids are accurate and quick when demand changes with interest rates [1].

However, managers who lose posts in delayering may resist through self-interest [1], and site teams need training before they can be trusted with decisions [1]. Agility also does not create demand: if rising interest rates cut house building, a fast firm still has fewer contracts [1]. Scenario planning, for example preparing for a 20% fall in orders, would complement agility [1].

Judgement: agility is the best single approach because Orrinford’s problem is slow response, which it tackles directly [1], but it will work only with strong leadership from the new managing director, plus scenario planning for the demand risk [1]. [12] Examiner insight: Strong answers weigh agility against an alternative, such as scenario planning, rather than assuming it is the only option.

Where marks are usually lost

• Confusing the four reasons for resistance with the six methods of overcoming it.
• Totalling force field scores without commenting on the margin or next step.
• Naming a risk type without identifying the event in the case that causes it.
• Proposing insurance for uninsurable risks, such as a strategic failure.
• Treating coercion as automatically wrong instead of weighing speed against resentment.
• Describing agility without linking each method to faster response.
• Calculations left unused in evaluation questions.
• Judgements that could apply to any business.

Next steps

• Recap the lists with the change, risk and uncertainty revision notes
• Rework the examples in the change, risk and uncertainty study guide
• Revisit strategic drift in implementing a strategy
• Spot weak areas with all free 10-minute diagnostics
• Choose another topic from the Business (9725) course hub
• Tick off 3.4.6 on the printable checklist
• Book a free trial class

Official syllabus

OxfordAQA International AS and A-level Business (9725) specification, Version 1.1, for International AS exams May/June 2027 onwards and International A-level exams May/June 2028 onwards. Published by OxfordAQA.