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Entrepreneurs and leaders

Section A — Extract A: Lumen Skincare Ltd

Lumen Skincare was founded in Leeds in 2016 by Priya Shah, a former chemist, to sell vegan, refillable skincare products online. It now employs 85 people and sells through its own website, two flagship stores and one large department-store chain. The UK skincare market was worth £2.4 billion in 2024 and £2.6 billion in 2025. Lumen's sales in 2025 were £18 million. Its customers are mainly women aged 18–34 who care about ethical sourcing. Most of its marketing is through Instagram and TikTok influencers. In 2025 Lumen raised the price of its best-selling serum by 5%. Sales volume fell by 2%. Staff surveys show high satisfaction with Lumen's purpose but frustration about pay and a lack of promotion opportunities. Labour turnover in the warehouse reached 32%. Priya makes nearly all major decisions herself and is reluctant to appoint a managing director, although investors have suggested it.
From Paper 1: Marketing, people and global businesses
1(d)12 marks
Assess the importance of financial and non-financial methods of motivation in reducing labour turnover at Lumen.
From Paper 1: Marketing, people and global businesses
1(e)20 marks
Evaluate whether Priya Shah should appoint a managing director and adopt a less autocratic leadership style.
Score 0 / 32 · 0 of 2 marked

This paper is written by Plasmo in the style of the Edexcel A-Level Business exam. It is not a past paper and is not produced or endorsed by the exam board.

Entrepreneurs and leaders Exam Questions: Edexcel A-Level Business | Plasmo