Month: December 2017

Tyler is a small independent shoe store. It is located on a local high street. A new hypermarket that sells shoes as part of its product offering has just been built at the bottom of the high street. Tyler has seen its sales fall in recent months and the owner is looking at ways he can compete more effectively.

Which ONE of the following is MOST LIKELY to help reduce Tyler’s costs in an effort to compete more effectively?

Select ONE answer:

1. Increase its advertising in the local newspaper
2. Provide better service by taking on more staff
3. Increase the range of its shoes
4. Ordering cheaper shoes from its suppliers
5. Relocating to new premises

What are the other things that Tyler could do become more competitive through cost reduction?
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This is multiple choice question is suitable for Business Studies KS4 classes.

The answer is 4 – Cheaper shoes will allow Tyler to reduce the price he charges and allow him to be more competitive as a result against his larger rival.

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Valerie owns a dairy farm in Cornwall. In 2007 she decided to use some of the milk they produce to make their own brand of ice cream. After analysing the local competition they developed a brand called Truro’s best. It is very rich and creamy and is sold at a premium price. Most of their customers are in the catering industry – hotels and restaurants. Valerie has now an established product range and can also produce ice cream in any flavour to order.

Which ONE of the following suggests that there was an opportunity in the local market for Valerie’s ice cream to enter?

Select ONE answer:

1. Unemployment in the region was rising
2. Ice cream is made from milk
3. There was only one supplier of premium-priced ice-cream in the area
4. The pound is getting stronger against the Euro
5. Large ice-cream manufacturers can supply ice-cream to order

What are other things would you consider to be important in determining whether there is an opportunity for Valerie in the premium ice-cream market?
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This is multiple choice question is suitable for Business Studies KS4 classes.

The answer is 3 – if there is only one other supplier then there is an opportunity for Valerie to enter the local market as she can supply an established product range and flavours to order.

This work is licensed under a Creative Commons Attribution 4.0 International License.

A business makes bottled and canned soft drinks? Which ONE of the following in itself is MOST LIKELY to make it more competitive against its rivals?

Select ONE answer:

1. The employment of two extra workers
2. An increase in profit compared to last year
3. The launch of a new range of drinks at a lower price point at the same quality.
4. A rise in the price of its drinks range
5. New regulation on the use of sugar in soft drinks

What are other things would you consider to be important in making the business more competitive in the bottled and canned soft drinks market.
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This is multiple choice question is suitable for Business Studies KS4 classes.

The answer is 3 – a new drinks range at a lower price point will make it more competitive as rivals struggled to compete and consumers value cheaper price and same quality.

This work is licensed under a Creative Commons Attribution 4.0 International License.

A window cleaning company owned by Mike operating in central Birmingham wants to expand to the suburbs. It has looked at the services offered by its rivals.

Which ONE of the following is most likely to show that there is an opportunity for the business to grow?

Select ONE answer:

1. Colin, a rival who works on his own, has a brother who lives in London.
2. Isabella, the nearest rival, has many friends in the area and is trusted to look after house keys if they are away.
3. Isabella has recently refused to clean schools due to poor margins.
4. Colin is not in the UK for two months every summer.
5. Mike charges very competitive prices.

What are other things would you consider to be important in spotting a new business opportunity in the window-cleaning market?
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This is multiple choice question is suitable for Business Studies KS4 classes.

The answer is 5 – if Mike charges competitive prices then he has an opportunity to take business away from his rivals from customers looking to get a better deal.

This work is licensed under a Creative Commons Attribution 4.0 International License.

Which ONE of the following is MOST LIKELY to be important in spotting a new business opportunity in the cycling market?

Select ONE answer:

1. Being able to produce a product cheaply
2. Recognising other cyclists on the street
3. Being a keen cyclist
4. Identifying the possible competition
5. Having a large amount of personal savings

What are other things would you consider to be important in spotting a new business opportunity in the cycling market?
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This is multiple choice question is suitable for Business Studies KS4 classes.

The answer is 4 – Identifying the potential competition to your potential opportunity.

This work is licensed under a Creative Commons Attribution 4.0 International License.