9609 Business November 2025 Question Paper 21

1 Clever Bean (CB)

CB is a public limited company that operates a chain of coffee shops in several countries. The company was founded in 2010 by two friends, Shopra and Ben. They share a passion for coffee and want to offer high-quality products to customers.

CB started with one coffee shop in country Q and gradually expanded, always locating in high-income areas of major cities. CB operates in a dynamic business environment. There is a high level of competition from other well-known coffee shop chains.

The company sources its coffee beans from fair trade suppliers who grow their coffee in an environmentally friendly way. CB offers a wide range of coffee products to the mass market. CB also offers other drinks and a variety of food items, such as sandwiches and cakes. Recent research shows that customers are now looking for healthy food options.

CB’s customers are mainly young professionals, students and tourists. Customers enjoy CB’s inviting atmosphere, comfortable seating areas, free Wi-Fi access and music. Its staff are trained to be friendly, helpful and knowledgeable.

Table 1.1 shows some financial data for CB for 2023 and 2024. Table 1.1 CB’s costs and revenue for 2023 and 2024 2024 ($m) 2023 ($m) Revenue 50 44 Direct costs 10 6 Indirect costs 20 16

Shopra believes that CB should continue to focus on the mass market. However, Ben thinks that greater use of market segmentation will be more successful.

(a) (i) Identify one feature of a public limited company. [1]

(ii) Explain the term dynamic business environment. [3]

(b) (i) Refer to Table 1.1. Calculate the change in profit from 2023 to 2024. [3]

(ii) Explain one use to CB of cost information. [3]

(c) Analyse two benefits to CB of training its employees. [8]

(d) Evaluate whether CB should make greater use of market segmentation to be more successful.

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2 Natalia’s Naturals (NN)

NN is a small business owned by Natalia. NN produces and sells a range of natural skincare products.

In 2020, Natalia started making her own skincare products at home using natural ingredients. She realised that there was a demand for her products among her friends and family. Natalia then decided to turn her hobby into a business and launched NN in 2021.

Natalia operates her business from a rented workshop with limited space, where she makes her products by hand. She buys her ingredients from local suppliers who share her values of environmentally friendly production.

NN has been growing steadily and has gained a loyal customer base. NN has received positive reviews from beauty magazines. Natalia’s skincare products are sold through her own website, social media platforms and local retailers who specialise in selling natural products.

Natalia is developing a new face cream. Table 2.1 shows price and cost estimates for the new face cream. Table 2.1 Price and cost estimates Product Price Allocated fixed costs Variable costs per unit Face cream $5$12 000 $2

The skincare market is very competitive. There are many established brands that offer similar products to NN, but with wider distribution channels.

Natalia needs to balance her time between production, managing orders, delivery, marketing and other administrative tasks. She works long hours and is stressed and exhausted.

Natalia is considering outsourcing to increase NN’s production capacity.

(a) (i) Identify one internal stakeholder of a business. [1]

(ii) Explain the term distribution channels. [3]

(b) (i) Refer to Table 2.1. Calculate the break-even level of output of the new face cream. [3]

(ii) Explain one limitation to NN of break-even analysis. [3]

(c) Analyse one advantage and one disadvantage to NN of being a small business. [8]

(d) Evaluate whether outsourcing is the most suitable way to increase NN’s production capacity.

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