Business studies Mock 7

1
(a)
(i)Launch an advertising campaign
(ii)Postal survey
(iii)Rent
(iv)Fixed costs ÷ (selling price – variable costs)
(v)€448.58
(vi)19.1%

(b)a method of production that involves employing all factors to complete one unit of
output at a time.

(c) ?

(d) Can Culleretes could targeted online advertising campaigns to gather numerical data
base about customer

(e)Net cash flow = 4,600 - 3,000 = €1,600

(f)Improving communication with its employees increases productivity. When

communication channels are clear, open, and effective, employees better understand
their roles, responsibilities, and expectations. This clearness reduces
misunderstandings, errors, and confusion, leading to smoother workflow and higher
productivity.Improved communication also fosters a sense of engagement and
ownership among employees. When they feel informed and involved in decision-making
processes, they are more motivated to perform well and contribute positively to the
company's goals. This increased motivation often translates into higher levels of
productivity and efficiency throughout the organization.
(g) The app can streamline the ordering process by allowing customers to place their
orders directly from their mobile phones. This reduces the need for waitstaff to take
orders manually, freeing them up to focus on other tasks such as serving food,
attending to customers' needs, and ensuring a smooth dining experience. As a result,
the restaurant's overall productivity can increase as resources are allocated more
efficiently. Also With orders coming in through the app, kitchen staff can receive orders
promptly and prepare meals in advance, leading to shorter wait times for customers.
This efficiency can result in higher table turnover rates, allowing Can Culleretes to serve
more customers within the same time frame and potentially increasing revenue. Also
Ordering through the app reduces the likelihood of errors that can occur when orders
are taken manually. Customers can select their desired items from the menu directly,
reducing miscommunication and order mistakes. This improvement in order accuracy
can minimize the need for remakes or corrections, saving time and resources for the
restaurant.

2
(a)One impact government legislation could have on Can Culleretes is the requirement
to adhere to strict food safety standards, which may entail implementing specific
procedures for food storage to prevent contamination and ensure the safety of
consumers.

(b) Can Culleretes add value to its business by offering unique culinary experiences or
specialized dishes that set it apart from competitors.

(c) One method a business could use to encourage repeat purchase of its products is by
implementing a loyalty program where customers earn points or rewards for each
purchase they make. These rewards could include discounts on future purchases. By
offering incentives for repeat business, the business can foster customer loyalty and
increase retention rates.

(d) One disadvantage of using personal savings as a source of finance for a business is
that it limits the entrepreneur's personal financial security. If the business encounters
financial difficulties or fails.

(e) One benefit for a business of motivating its employees is increased productivity and
performance. When employees feel motivated and engaged and strive to achieve
company goals. This can lead to higher levels of customer satisfaction. Motivated
employees are more likely to stay with the company, reducing turnover rates and
associated hiring and training costs.
(f) Option 1: Increase Advertising
This option involves investing resources into advertising and marketing efforts to
promote Can Culleretes' existing offerings, such as lunch and dinner menus. Advertising
channels may include online platforms (social media, website, email newsletters), print
media (newspapers, magazines), outdoor advertising (billboards, signage), and possibly
radio or television advertisements.

Option 2: Opening for Breakfast

This option involves extending Can Culleretes' operating hours to offer breakfast to
customers. Breakfast menu offerings may include traditional breakfast items like eggs,
pancakes, pastries, coffee, and juices. This option requires additional considerations
such as hiring staff for morning shifts, purchasing breakfast-related ingredients and
supplies, and potentially modifying the restaurant layout or decor to accommodate
morning diners. Option 1: increasing advertising might be the preferred option.

3
(a) Non-current assets are long-term assets held by a company for more than one
accounting period.

b) One disadvantage to Can Culleretes of increasing the amount of inventory it holds is

the risk of obsolescence. Holding excessive inventory ties up financial resources and
storage space the company may incur losses.

(c) 4 500 / 19 220 x 100 = 23%

(d) The impact of customers using social media to review Can Culleretes can be
significant and multifaceted:Positive reviews on social media platforms can enhance
Can Culleretes' visibility and reputation. Potential customers often rely on online reviews
to make dining decisions, and favorable reviews can attract new patrons to the
restaurant. Conversely, negative reviews can damage the brand's image and deter
potential customers.Social media provides a platform for direct interaction between
Can Culleretes and its customers. Responding to reviews, whether positive or negative,
demonstrates attentiveness and a commitment to customer satisfaction. Engaging with
customers on social media can foster loyalty and strengthen relationships.Customer
reviews on social media offer valuable insights into Can Culleretes' strengths and
weaknesses. Analyzing feedback trends can identify areas for improvement, such as
menu offerings, service quality, or ambiance. By addressing customer concerns and
continuously striving to enhance the dining experience, Can Culleretes can retain
existing customers and attract new ones.

(e) Option 1: Offer the new chef a permanent contract:

Offering a permanent contract demonstrates a long-term commitment to the new
dessert chef. It provides stability and security, which can be appealing to candidates
seeking job security and career growth opportunities.Also a permanent position offers
the dessert chef opportunities for skill development, career advancement, and job
satisfaction. With a permanent contract, the chef may feel more invested in the success
of Can Culleretes and be motivated to contribute positively to the restaurant.

Option 2: Offer the new chef a temporary contract

Hiring the new chef on a temporary contract provides Can Culleretes with flexibility in
adjusting its staffing levels based on seasonal demand or business fluctuations. It
allows the restaurant to manage costs more effectively by avoiding the long-term
commitment associated with permanent employment.Also a temporary contract can
serve as a trial period for both the dessert chef and Can Culleretes to assess mutual fit
and compatibility. If the chef's performance or fit with the team is not satisfactory
during the contract period, Can Culleretes can opt not to renew the contract without the
challenges of terminating a permanent employee.

So in my opinion option 2 is better than option 1

4
(a) 38.40×12 = 460.8
460.8−(460.8×0.125) = 403.2

(b) Responding to changes in the market is crucial for Can Culleretes to maintain
competitiveness and sustain its business in the face of new restaurants offering
diverse menus, such as Italian and Turkish cuisines. Here's why it's important: As
new restaurants introduce different cuisines, customer preferences and
expectations may evolve. Can Culleretes needs to adapt its menu offerings and
dining experience to meet the changing demands of its target market. Failure to
respond to these changes may result in a loss of customers to competitors who
offer more appealing options. The restaurant industry is dynamic, with trends and
tastes constantly evolving. Can Culleretes must stay attuned to these changes to
remain relevant in the market. By responding promptly to emerging trends and
consumer preferences, Can Culleretes can ensure that it continues to attract and
retain customers amidst increasing competition.

(c) In considering venture capital as a source of finance for the expansion of Can
Culleretes into Can Café, several key factors should be evaluated. Firstly, Can
Culleretes needs to weigh the cost of capital associated with venture capital
against other financing options to determine its affordability. Secondly, the
risk-return trade-off must be carefully considered, taking into account the
potential benefits of access to substantial funds and expertise against the risks
of loss of control and conflicts with investors' objectives. Thirdly, Can Culleretes
must ensure compliance with legal and regulatory requirements related to
venture capital financing, including understanding investment terms and
protecting intellectual property rights. Additionally, the long-term implications of
accepting venture capital, such as its impact on Can Café's growth trajectory and
Can Culleretes' overall business strategy, need to be assessed. Finally, strategic
alignment between Can Culleretes' objectives and potential investors'
expectations is crucial to ensure compatibility and mutual benefit. By carefully
evaluating these factors, Can Culleretes can make an informed decision about
whether venture capital is the right financing option for funding the opening of
Can Café.