One of the major contributing factors which aid in student success (and failure) is whether they do or do not understand the technique needed to answer the question. Yes, the subject content is important as well, but if you understand the processes needed to achieve the most number of marks for each question type, then you’re half way towards success already.

We’ve made you this booklet – it’s designed to inform you (the student), what we (the teachers) know about technique which the examiners look for when they’re marking your exam. Consider this part of your exam preparations – take note of the processes you need to go through, how to answer each type of question (determined by the Key Word from the question), and how to maximise your marks (and your grade) at the end of the exam.

Then on results day you can be smug in the knowledge that you were one of the few students studying Edexcel GCSE Business Studies that fully understood the requirements of each question type…which will be nice.

Question Type Page Number:Calculate 3What is meant by? 4Identify 5State 5Outline 6Explain 7Describe 8Discuss 9Advantage/Disadvantage 10Assess 11

Questions that require the use of a formula to calculate a specific outcome based on figures provided.

- Show full working out.- Make sure you state the formula before working out the answer.- State the answer in the correct measure (Units/£)

Step 1: Identify what the key word is which you’re being tested on (profit/breakeven etc.)

Step 2: Write out the formula which you need to use (refer to the formula help sheet you’ve already been given).

Step 3: Apply the formula using the data from the question (see example below).

Step 4: Make sure your answer is CLEARLY stated in the correct measure.

For example:

Revenue – Total Costs = Profit or Loss.

Revenue: £2 x 3,000 = £6,000

Variable Costs: £0.40 x 3,000 = £1,200

Fixed Costs: £2,000

Total Costs: £1,200 + £2,000 = £3,200

Therefore: £6,000 - £3,200 = £3,800

Answer: £3,800 profit

With these questions, you can get two marks for simply stating an accurate definition – so it’s a good idea to make sure you’ve learned your key terms! However, in case your definition isn’t marked as totally accurate, it’s a good idea to give an example to back up your answer – just in case.

Step 1: Identify the key word you are being tested on.

Step 2: Write out the definition of the keyword.

Step 3: Give an example of how the key word can be applied.

For example:

Cash flow is the flow of cash into and out of a business. A business may generate cash revenue that flows into the business (inflow) and may have to pay cash out for supplies (outflow).

Identify questions are simple – in order to achieve full marks, you need to state as many things as the mark guide gives – i.e – in a 2 mark question you need to identify (state) 2 things. No explanations are needed.

Step 1: Identify the key word you are being tested on.

Step 2: How many things do you have to identify?

Step 3: Simply list the amount of things that you have been asked to identify.

Step 4: Check that you have given the amount of things asked for (see step 2!)

For example:

1). To avoid running out of stock.

2). To prevent missing out on extra sales.

Exactly as above…for example:

1). Surveys

2). Data or statistics from the National Office for Statistics.

For these questions you need to make one (or sometimes two if it’s a 3 or 4 mark question) relevant points, and then develop them. In other words, when you’re developing them you need to say what effect those points would have on a business. Most “outline” questions will be worth 2 marks.

Step 1: Identify the key word you are being tested on.

Step 2: Do you need to identify one or two points linked to the question? (2 Marks = 1 point, 3 or 4 Marks = 2 points)

Step 3: State the first point and then develop it by describing how it will affect the business.

Step 4: Develop the first point again by describing another way of how it will affect the business.

Step 5: If you need to, state a second point and then develop it by describing how it will affect the business.

Step 6: Develop the second point again by describing another way of how it will affect the business.

For example:

Marks and Spencer must make sure that it follows the Trade Descriptions Act. This will involve making sure it sells products with accurate descriptions, for example making sure that if they sell a shirt described as being made out of 100% cotton, it is and is not nylon.

These are similar to “outline” questions but you need to make two developments from each point made. It’s recommended therefore that you use phrases such as “this leads to…” or “because…” – so this presents an ideal opportunity to use your B.L.T paragraphs (Because…Leading to…Therefore…).

Step 1: Identify the key word you are being tested on.

Step 2: Do you need to identify one or two points linked to the question? (Check the marks available!)

Step 3: State the first point and then develop it by describing how it will affect the business.

Step 4: Develop the first point again by describing another way of how it will affect the business.

Step 5: If you need to, state a second point and then develop it by describing how it will affect the business.

Step 6: Develop the second point again by describing another way of how it will affect the business.

For example:

An advantage of branding is that the business could charge higher prices because the customer thinks that the product is of better quality. This will lead to the customer being willing to pay a higher price, therefore meaning the business makes greater levels of profit.

One of the hardest question types to answer (for some reason…). You need to make two relevant points with a development for each point. The key to success here is remembering that IF there is a case study involved, ALWAYS REFER TO THE BUSINESS FROM THE CASE STUDY.

Step 1: Identify the key word you are being tested on.

Step 2: Identify how many points you need to make for the question (Check the number of marks on offer!!)

Step 3: Identify the first point linked to the key word AND the case study.

Step 4: Develop the point made by describing how it will affect the business in the case study.

Step 5: Develop the point made by describing another way of how it will affect the business in the case study.

Step 6: Identify the second point linked to the key word AND the case study.

Step 7: Develop the point made by describing how it will affect the business in the case study.

Step 8: Develop the point made by describing another way of how it will affect the business in the case study.

For example:

Holding stock is expensive. Therefore, the more toys that The Saltash Toy Box stock, the higher their costs which are associated to holding this stock will be. This could be things such as insurance. Even if The Saltash Toy Box closes its only retail store, they will still have to find somewhere to store their stock.

For a discuss question, you must give a point for each option and develop each point twice. You must ensure that you include reasons/causes/consequences. You should make sure that you give a conclusion and include the context of the question (so if you’ve been given a business in the case study, make reference to it). The quality of your written communication will be tested here.

Step 1: Identify the key word you are being tested on.

Step 2: Identify a point for each side of the argument.

Step 3: Identify the first point linked to the key word and the case study.

Step 4: Develop the first point made and identify what impact this has on the business.

Step 5: Identify the second point linked to the key word and the case study.

Step 6: Develop the point made by describing how it will affect the business in the case study.

Step 7: Give counter-arguments for both of the points made.

Step 8: Make a decision!

For example:

On one hand, linking Lego products to newly released movies would help keep Lego up to date, and therefore popular with consumers as children are likely to want a set which matches a movie they have enjoyed. However, by increasing advertising, Lego could increase their brand recognition to make consumers more aware of them than COBI or MEGA Bloks, meaning more customers would be likely to shop with Lego, also having a positive effect.

On the other hand, If Lego did link their products to newly released movies there may however be a cost to do this because of licensing or the like. Further to this, even if Lego did increase their advertising, COBI or MEGA Bloks may simply increase theirs as well, meaning it has less of an effect overall.

Overall therefore, I think that linking sets to newly released movies would be a better option for Lego as it would be more appealing to their target audience, and so would be more likely to boost sales for them as a company as children would try to convince their parents to buy them the sets.

For these questions, you need to state an advantage and a disadvantage, with three developments for each one. The exam board specifically recommends using phrases such as “this leads to…” or “because…” (so another opportunity to bust out the B.L.T method). You MUST refer to the context provided in order to get full marks – this shows that you understand the situation that the question presents to you.

Step 1: Identify the key word you are being tested on.Step 2: Identify an advantage.Step 3: Give a reason why it is an advantage by identifying the effect (positive) on the business/situation.Step 4: Give a second reason why it is an advantage by identifying the effect (positive) on the business/situation.Step 5: Give a third reason why it is an advantage by identifying the effect (positive) on the business/situation.Step 6: Identify a disadvantage.Step 7: Give a reason why it is a disadvantage by identifying the effect (negative) on the business/situation.Step 8: Give a second reason why it is a disadvantage by identifying the effect (negative) on the business/situation.Step 9: Give a third reason why it is a disadvantage by identifying the effect (negative) on the business/situation.

For example:

One advantage of Dell holding higher levels of buffer stock is that they could prevent damage to their brand in the event of an occurrence such as flooding. This would mean that Dell would be able to fulfil customer orders even in situations like the Thai flooding. Fulfilling customers’ orders when Hewlett Packard may not be able to could lead to an increase in customers using Dell, potentially improving their revenue and profit levels.

One disadvantage of Dell holding higher levels of buffer stock is that they may face reduced competitiveness due to increased costs. Holding more stock involves the need for a larger warehouse for Dell, meaning an increase in their outflow of money. This will increase the costs of producing a Dell computer, meaning that the price of a computer is likely to have to increase. This will make Hewlett Packard computers more attractive in the market compared to Dell, meaning customers may switch loyalty.

Assess questions require you to give a balanced answer (for and against). You therefore need to give two points for both “for” and “against”, and each point will need to be developed at least twice (three times for a 10-mark question) – my advice is to BLT each point you make. You need to finish with a conclusion which has a judgement within it, and must REFER TO THE BUSINESS IN THE CASE STUDY. To really succeed, throw an “It depends” into your judgement.

Step 1: Identify the key word you are being tested on.Step 2: Identify how many marks there are for the question so you know how many developments to make.Step 3: Give two reasons FOR the situation presented.Step 4: Develop each point twice (three times for a 10-mark question) by identifying the impact it has on the business/situation.Step 5: Give two reasons AGAINST the situation presented.Step 6: Develop each point twice (three times for a 10-mark question) by identifying the impact it has on the business/situation.Step 7: Give a conclusion making sure that there is a judgement based on the business/situation in the case study.

For example:

If Tesco took steps to reduce the effect of its operations on the environment, then they could benefit by being able to target more market segments. This is because Tesco would potentially appeal to consumers who believe in ethical trading. This would then lead to a more diverse customer base, potentially increasing their market share.Another benefit for Tesco would be that it could enhance their brand. This is because they would be able to provide customers with an additional reason to shop at Tesco instead of other supermarkets such as Morrison’s or Sainsbury’s, because it would show how ethical and environmentally friendly the business was being. This could therefore increase the number of customers shopping at Tesco, therefore potentially increasing sales revenueIn contrast, Tesco may suffer drawbacks from reducing the impact that its operations have on the environment. One reason could be because it’s likely to increase its operation costs. Tesco would be hesitant to increase its costs as these costs would most likely be passed onto customers through an increase in the price of its products. Increasing prices could therefore mean customers would shop in an alternative supermarket (such as Sainsbury’s or Morrison’s) as the market is very competitive.In addition, another drawback could be that consumers may not care about ethical business practices, they are just interested in price. This would mean that Tesco were not focusing on the customer’s main reasons for shopping there, meaning other supermarkets could be more price driven, causing customers to switch supermarkets and therefore, losing Tesco market share.In conclusion, Tesco have reasons for and against reducing the impact of its operations on the environment and their choice will depend on the state of the economy, and consumers spending power, in addition to the period of time that it would take to implement the impact reducing strategies. Tesco has already taken steps to reduce its impact on the environment, and so making

further changes will not guarantee an increase in market share. The decision is therefore going to be driven by the ability of Tesco to remain competitive whilst increasing its profit levels.