Explain vs analyse
Explain
Explain questions (2, 3 or 4 marks) require demonstration of knowledge by making a point that is then developed. If there is a given business in the question then the answer also needs to be applied to the given case study.
Answers are usually broken down into three parts to achieve marks:
- make a point
- give a reason why (often given as ‘because’)
- state the consequence (positive or negative) for the business
Examples of explain questions include:
Question
Explain one benefit to businesses of conducting market research.
A benefit of conducting market research is that a business can make more informed decisions. This will lead to the business developing more products that customers want and therefore having more sales.
Question
Explain one benefit to DJ’s Chocolate Manufacturing of using a market map.
A market map would allow DJ’s Chocolate Manufacturing to spot a gap in the market. This would lead to the business developing chocolates that would fill the gap, such as a high-quality, low-priced chocolate. Therefore, the chocolate manufacturer would have a competitive advantage through a unique selling point (USP).
Question
Explain a benefit of creating a cash flow forecast.
A cash flow forecast can be shown to a bank when applying for a loan. This would lead to a business being able to access additional finance. Therefore, the business would be able to expand or purchase more stock.
Analyse
Analyse questions (6 marks) require identifying an appropriate impact that is then developed by giving the consequence of this impact. Answers must be applied thoroughly to the given case study.
Examples of analyse questions include:
Question
Analyse the impact of Yanna’s Bikes using the internet as a form of promotion.
Using the internet to promote a bike sales business could allow Yanna’s Bikes to access more customers. This would lead to increased awareness of the business among people looking to purchase bikes or cycling accessories, therefore potentially increasing sales and revenue for the business. However, using the internet to promote a bike sales business could also increase costs. This would lead to the business having less money available to spend on other forms of promotion, such as leaflets and billboards local to the cycling shop. This could therefore reduce the impact of promotion in the local area.
Question
Analyse the impact of competitors on Sarma’s Café.
Competitors could mean that Sarma’s Café needs to provide high-quality coffees and cakes for customers to purchase. This would lead to the café having a competitive advantage over other cafés in the local area, therefore increasing sales of exotic coffees and cakes for the café business.
Competitors would also mean that Sarma’s Café needed to offer excellent customer service, such as checking that customers are happy and dealing with any issues as they arise. This would lead to the café getting better reviews and therefore more chance of gaining customers who are interested in purchasing exotic coffees, cakes and other baked goods.
Question
Analyse the benefits to Mate’s Bakery of globalisation.
Globalisation would allow Mate’s Bakery to import goods such as flour, flavourings and eggs from abroad. This would lead to the business being able to source a wider variety of ethical bakery ingredients at a cheaper price from Fairtrade suppliers, therefore increasing its potential to grow as a business in the baked goods industry.
Globalisation would also allow a business to sell its baked goods and services abroad. This would lead to a larger potential customer base for the business, therefore increasing its potential to make more than its £85 million revenue and £6.5 million profit.
