Business Studies Multiple Choice Question – 27 June 2022

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The Staffordshire Beer Company produces its beer using a closely guarded secret recipe.

This is likely to give The Staffordshire Beer Company a….

Select ONE answer:

  1. competitive advantage
  2. market orientation
  3. market map
  4. test market

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 1

  1. Correct – Competitive advantage is any positive feature that distinguishes a company from its competitors. In this case, the competitive advantage comes from Staffordshire’s secret recipe that no other drinks company can use. Customers who like the taste of the Beer because of its secret recipe can only buy from Staffordshire Beer which then generates consumer loyalty, which is a source of competitive advantage.
  2. Not correct – the secret recipe is an aspect of product orientation not market orientation.
  3. Not correct – market mapping places the Beer in relation to its competitors and is nothing to do with the secret recipe.
  4. Not correct – test marketing would involve trialing different recipes and there is only one for Staffordshire Beer Company’s Beer.

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