1. Lovely Linked Strands
Outline, explain, discuss, analyse, justify and evaluate questions all need linked strands.

2. Ensure you know how many linked strands each question needs:
Question Type
Number of linked strands needed
Exemplar question
Exemplar answer
Outline 1
Outline one reason Starbucks carry out market research.
They carry out market research to find out which drinks customers prefer therefore they can better meet customer needs.
Explain 3
Explain one reason that Starbucks carry out market research
They carry out market research to find out which drinks customers prefer therefore they can better meet customer needs. Meeting customer needs leads to the customers are more likely to repeat purchase rather than going to Costa. Repeat purchase results in revenue from latte sales increasing.
Discuss 6
Discuss the impact on a business of carrying out market research.
Market research will identify what customers want therefore they can better meet customers’ needs. Meeting customer needs will lead to repeat purchase. Repeat purchase leads to reduced need for a business to attract new customers through advertising. Less advertising would therefore mean lower fixed costs for a business. Lower fixed costs results in the business being able to lower its prices. Lower prices result in the business gaining a competitive advantage.

3. Ensure you know how many linked strands each question needs:
Question Type
Number of linked strands needed
Exemplar answer:
Starbucks want to increase sales and is considering two options:
Option 1: Introduce a new range of drinks
Option 2: Reduce their prices
Justify which option Starbucks should choose. (9 marks)
Analyse 6
Starbucks should introduce a new range of drinks.
An advantage of introducing a new range of drinks is that they may be able to develop a USP against Costa. A USP will allow Starbucks to charge a premium price for its beverages as drinkers will be unable to get it in other coffee shops. Charging a premium price will increase the revenue Starbucks receives for its hot drinks.
However, developing a new range of drinks will require research and development. Research and development into new flavours will increase the fixed costs. An increase in fixed costs will reduce profit if revenue from the sale of drinks and snacks stays the same. A reduction in profit will mean Starbucks has less money available to update the furniture in its cafes.
In conclusion, they should introduce new drinks. New drinks will also appeal to a wider target market therefore Starbucks may attract drinkers who currently buy their beverages at Pret. The success of the new drinks will depend on the price that Starbucks decide to charge; the beverage market is very competitive and therefore may be price sensitive. A more effective strategy may be to ensure that levels of customer service are high so customers do not have to queue for a long time, especially as they may be buying a drink on their way to work or in their lunch hour.
Justify
Evaluate

4. TIP #1 Use the mark scheme 3 marks = point and three linked strands
6 or more marks = at least 6 linked strands across your answer.

5. Successful linked strands of development begins with Laura’s method.
TIP #2
Laura’s Method
Successful linked strands of development begins with Laura’s method.

6. Remember to use Laura’s method
Laura’s Method will support you to ensure that each point you make is a development of your previous point and not a random point!
Because…
Therefore…
Leading to…
As a result…
Any connective of your choice!
Remember to use Laura’s method
Improved technology would make the business dynamic. Being dynamic would lead to more sales. More sales would result in higher revenue. Higher revenue would therefore make the business better able to pay off cost. Being better able to pay off costs results in lowered break even point. A lower break even point would lead to …and go on like this forever!
Quick RNG – connective examples then show the examples on this slide.

7. TIP #3
Apply the marking technique to your answers to check you have enough linked strands
Discuss the impact on a business of carrying out market research.
Market research will identify what customers want therefore they can better meet customers’ needs. Meeting customer needs will lead to repeat purchase. Repeat purchase leads to reduced need for a business to attract new customers through advertising. Less advertising would therefore mean lower fixed costs for a business. Lower fixed costs results in the business being able to lower its prices. Lower prices result in the business gaining a competitive advantage. P 1 2 3 4 5 6

8. Apply the marking technique to the following responses - do they need further development? If so, how would you develop it further?
Explain why a business may produce a market map. (3 marks)
Remember: an explain question requires a point and three linked strands of development.
A market map will help to identify a gap in the market. Identifying a gap in the market means the business can create a unique product. Having a unique product will mean the business can charge a premium price.

9. Apply the marking technique to the following responses - do they need further development? If so, how would you develop it further?
Explain why a business may produce a market map. (3 marks)
Remember: an explain question requires a point and three linked strands of development.
A market map will help to identify a gap in the market. Identifying a gap in the market means the business can create a unique product. Having a unique product will mean the business can charge a premium price. Charging a premium price will result in more revenue. P 1 2

10. Apply the marking technique to the following responses - do they need further development? If so, how would you develop it further?
Discuss the impact on a business of using Just-In-Time stock control. (3 marks)
Remember: a Discuss question requires a point (or 2) and six linked strands of development.
Just-in-Time stock control means that the business does not need a warehouse to store its stock. Not having a warehouse leads to lower fixed costs. Having lower fixed costs would therefore mean that the business can reduce its prices.
However, raw materials may be delayed arriving at the production line. Lack of raw materials would result in production stopping.

11. Apply the marking technique to the following responses - do they need further development? If so, how would you develop it further?
Discuss the impact on a business of using Just-In-Time stock control. (3 marks)
Remember: a Discuss question requires a point (or 2) and six linked strands of development.
Just-in-Time stock control means that the business does not need a warehouse to store its stock. Not having a warehouse leads to lower fixed costs. Having lower fixed costs would therefore mean that the business can reduce its prices. Having lower prices would result in attracting customers from competitors.
However, raw materials may be delayed arriving at the production line. Lack of raw materials would result in production stopping. Production stopping would therefore delay customer orders. Delayed customer orders would lead to unhappy customers. P 1 2 P 3

12. NOW TRY THESE…
Explain one advantage to a private limited company of having limited liability.
Limited liability means that the shareholders can only lose the amount of money they have invested into the business. Only losing their initial investment makes it less risky. Being less risky will result in the business taking more risks and potentially gaining a competitive advantage.
Explain one advantage to a business of using e-commerce to make sales.
E-commerce gives access to customers all over the world. Selling to customers all over the world means that the business may be able to buy in bulk.

13. Explain one disadvantage to an entrepreneur of opening a franchise rather than an independent business.
Operating as a franchise has a very high initial investment.
Explain one advantage to a business of improving the quality of its products.
Improving the quality of your products adds value. Added value would therefore mean that the business can charge a premium price.

14. Explain one disadvantage of operating as a sole trader.
A sole trader is not allowed to sell shares to raise finance. Not being able to sell shares may result in them having to take out a bank loan.
Explain one way a business can become more profitable.
A business can become more profitable by reducing its variable costs. Reducing its variable costs may mean using a cheaper supplier. Using a cheaper supplier may result in the quality of the product falling.

15. Explain one advantage of carrying out primary market research.
Carrying out primary research allows you to find out your customers’ needs.
Explain one method of internal growth that a business may use.
A business may expand its product range with unrelated products. Developing unrelated products will therefore allow the business to reach a wider market.

16. Explain one conflict between the stakeholders of business.
Shareholders and customers may have conflict because shareholders want the highest profit and customers want the lowest prices. If shareholders want high profit this means that prices may have to be high. However having high prices will not please the customers.
Explain one action a business make take if a product is in the decline stage of the product life cycle.
The business may choose to introduce an extension strategy. An extension strategy may result in the product appealing to a new audience.

17. Learn these useful strands of development…
TIP #4
Learn these useful strands of development…
Anything that leads to an increase in revenue…
Provides more available funds to research and develop new products.
New products may bring a USP
A USP adds value and allows you to charge a premium price
A premium price will generate more revenue
More revenue provides more funds to research a develop new products / expand the business / increase advertising .

18. Learn these useful strands of development…
Anything that leads to an increase in costs…
Increased costs may mean that a business needs to increase its prices
Increased prices will put the business at a competitive disadvantage
This competitive disadvantage means that customers will choose a cheaper competitor
Customers choosing cheaper competitors will reduce the business’ market share
A reduction in market share will reduce revenue.

19. Learn these useful strands of development…
Meeting customer needs leads to satisfied customers
Satisfied customers repeat purchase
Repeat purchase increases revenue without the need for promotion / advertising
Less advertising reduces fixed costs
Reduced fixed costs lead to higher profit (if revenue stays the same) or
Reduced fixed costs mean you can lower your prices
Lower prices will give you a competitive advantage.

20. Learn these useful strands of development…
Keeping your employees happy will lead to higher motivation.
Higher motivation means your employees are less likely to leave.
Employees not leaving means that the business does not have to pay to recruit someone new.
Not recruiting someone new will reduce the business’ fixed costs Or
Not having to recruit new staff means your staff will be more experienced and less likely to make mistakes.

21. Over to You How would you develop these points?
Workers will be demotivated
The product is more likely to break
It makes it more convenient for customers
Workers are less likely to make mistakes
Customer incomes may be lower
Costs will be increased
The company image may be damaged
The business will have a USP
The business will be able to break-even sooner
Workers will feel that the business cares about them

22. Over to You Go back and reflect on your mock examination papers.
Look at any question that you did not receive full marks (Level 3) for your linked strands (3a) and use the strategies in this resource to help you to improve your response(s).