Pearson Edexcel Level 3 GCE [Business Advanced Subsidiary PAPER 2: Managing Business Activities ]

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Read the following Extracts (A and B) before answering Question 1. Write your answers in the spaces provided. Extract A Nexba launches in the UK Nexba is an Australian soft drinks company founded ... by Drew Bilbe and his brother-in-law, Troy Douglas. The brand is named after the Mexican beach where Drew first had the idea of creating sugar-free drinks made from natural ingredients. Due to the popularity of its drinks, Nexba has become a global success story. In 2010, Nexba raised £250 000 using crowd funding. This allowed the company to purchase its first canning factory. It produces three different flavours using batch production. The drinks were so popular in Australia that this canning factory was operating at 98% of its capacity. In 2013, Nexba changed its manufacturing process to flow production. Larger multinational rivals, Coca-Cola and PepsiCo, have responded to the growth of Nexba by launching healthier brands of soft drinks, such as Fuze Tea and Driftwell. After launching the brand in the UK in 2018, Nexba’s global sales revenue now exceeds £6 million. (Source: adapted from https://www.theguardian.com/brother-at-your-side/2019/ feb/26/my-brother-and-i-declaring-a-war-on-sugar-has-proved-asweet-success-for-the-brothers-in-law-behind-nexba-drinks) Extract B Selected information from Nexba’s budget, November 2020 Raspberry 330 ml cans (£) Budgeted sales revenue 125 250 Actual sales revenue 137 320 Budgeted total costs 44 690 Actual total costs 48 950 5 10 *P71592A0324* Turn over 3  1 (a) What is meant by crowd funding? (2) .................................................................................................................................................................................................................................................................................... .................................................................................................................................................................................................................................................................................... .................................................................................................................................................................................................................................................................................... .................................................................................................................................................................................................................................................................................... .................................................................................................................................................................................................................................................................................... .................................................................................................................................................................................................................................................................................... (b) What is meant by sales revenue? (2) .................................................................................................................................................................................................................................................................................... .................................................................................................................................................................................................................................................................................... .................................................................................................................................................................................................................................................................................... .................................................................................................................................................................................................................................................................................... .................................................................................................................................................................................................................................................................................... ...................................................................................................................... [Show More]

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