EDEXCEL IAL Topical Past Paper Unit 3

3.1.2 Size of businesses

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section A

Section b

WEC13/01/Jan 2023

In 2022, the Canadian airline WestJet completed a takeover of Sunwing Travel Group, an airline and luxury holiday provider. WestJet’s objective was to sell luxury flights and holidays to more destinations.

Evaluate the benefits of growth by takeover for a business in an industry of your choice.
Illustrate your answer with an appropriate diagram(s). [20 marks]

WEC13/01/Oct 2022

In January 2022 the Australian firm Peak Minerals demerged from Vertex Minerals. The main reason for the demerger was to enable Peak Minerals to focus on copper and gold mining production in Western Australia.

Evaluate the possible benefits of a demerger.
Illustrate your answer with an appropriate diagram(s). [20 marks]

WEC13/01/May 2022

In 2021, the UK-based firm PhotonLens, which produces virtual reality smart glasses, merged with the Chinese firm Shadow Creator, which specialises in virtual reality software.

Evaluate the benefits of growth by merger.
Illustrate your answer with an appropriate diagram(s). [20 marks]