Business studies mock 6

Name: Omar Mohamed

1 (a)
(i) D. Personal satisfaction.
(ii) A. Rising star.
(iii) B. Bonus.
(iv) A. Growth
(v) Markup %=65−66/66 x 100 = 150%
(vi)Price in JPY=Cost in GBP×Exchange Rate =
65 × 148.86 = 9675.90

(b) Capital-intensive production refers to a production process that requires a significant

investment in capital equipment, technology relative to the labor input.

(c) Quantitative data refers to numerical data or information that can be measured and
expressed using numbers.

(d) One reason why Tom Baker may have set up his business as a social enterprise
could be to fulfill a social or community need. By establishing a social enterprise.

(e)£23,546+£706.38=£24,252.38

(f)Market Research: Conduct thorough market research to understand customers'

willingness to pay, price sensitivity, and perceptions of value. Identify the price range at
which customers are comfortable paying for your products or services.

(g)Environmental factors play a significant role in the operations and success of

businesses like Loaf, which focus on promoting real food, healthy living, and community
support. Here's an analysis of the importance of environmental factors for Loaf:

Sustainability: Loaf's commitment to promoting real food and healthy living aligns with
sustainability principles. Environmental factors such as sourcing ingredients from local,
organic suppliers, reducing food waste through initiatives like the "Waste Not" scheme,
and providing a recycling hub contribute to environmental sustainability. By prioritizing
sustainable practices, Loaf minimizes its environmental footprint and demonstrates its
commitment to preserving natural resources for future generations
2

(a) One primary research method that Loaf could use is conducting surveys.

(b) One drawback for Loaf of poor customer service is negative word-of-mouth publicity.

(c) One benefit to a business of using e-newsletters is increased customer engagement

and retention. E-newsletters provide a direct and personalized communication channel
through which businesses like Loaf can share relevant content, updates, promotions
and special offers with their audience.

(d) One responsibility of the human resources function in a business is talent

acquisition and recruitment. Human resources (HR) professionals are tasked with
attracting, sourcing, and hiring qualified candidates to fill vacant positions within the
organization.

(e) One way in which the just-in-time method of stock control might benefit a business
is by reducing inventory holding costs. JIT is an inventory management strategy where
materials and goods are only ordered and received as they are needed for production or
sales, minimizing the amount of inventory held in stock.

(f) Option 1 allows Loaf to directly engage with potential customers by offering them
samples of its products. By providing bite-sized pieces of its bread and cakes, Loaf can
showcase the quality and taste of its offerings, enticing passersby to visit the shop and
potentially enroll in cookery courses or purchase baked goods.Immediate Impact:
Offering free samples creates an immediate and tangible experience for customers.
People passing by the shop can immediately taste the products, which can leave a
positive impression and increase the likelihood of them making a purchase or signing
up for courses on the spot.

While Option 2 involves advertising through posters in local charity shops, which may
reach a broader audience, it may not directly impact potential customers' senses or
create as immediate an effect as offering free samples. Additionally, producing posters
and distributing them may incur additional costs for Loaf. In contrast, providing free
samples, although it involves a cost, can be a more targeted and cost-effective way to
attract customers to the shop.Overall, Option 1 provides a more engaging and
immediate way to promote Loaf's bakery and cookery courses, effectively enticing
potential customers and encouraging them to visit the shop and explore its offerings
further.
3

(a) Job share refers to an arrangement where two or more employees share the
responsibilities, duties, and hours of a single full-time position within an organization.

(b) One reason why high levels of customer satisfaction might be important to Loaf is to
maintain and enhance its reputation and brand image. Satisfied customers are more
likely to recommend Loaf to others, leading to positive word-of-mouth publicity and
potentially attracting new customers.

(c) Operating Profit Margin=Operating Profit / Revenue x 100

Operating Profit=Gross Profit−Other Operating Expenses

Operating Profit=£22,000−£4,000=£18,000

Operating Profit=£22,000−£4,000=£18,000

Operating Profit Margin = 18 / 90 x 100 = 20%

(d) Revenue: The revenue figure (£90,000) indicates the total income generated by Loaf
from its bakery and cookery courses in 2018. This information is crucial for assessing
the overall sales performance of the business and tracking its revenue growth over time.
It helps Loaf understand the demand for its products and services and identify trends
that may impact future sales.Gross Profit: The gross profit figure (£22,000) represents
the income remaining after deducting the direct costs associated with producing goods
and services, such as the cost of ingredients, labor, and equipment. Gross profit is a key
indicator of the profitability of Loaf's core operations and its ability to generate revenue
while covering production expenses. It helps Loaf assess the efficiency of its production
processes and make informed decisions about pricing, cost control, and resource
allocation.
(e)

Option 1: Hosting Pop-Up Events Across the Country:

Immediate Revenue Generation: Pop-up events can attract a large number of attendees,
generating immediate revenue through ticket sales, product purchases, or participation
fees.Brand Exposure and Awareness: Hosting events across the country can increase
Loaf's brand exposure and attract new customers who may not be familiar with the
bakery or its cookery courses.

Option 2: Introducing Different Cookery Courses:

Diversification of Revenue Streams: Introducing new cookery courses can diversify

Loaf's revenue streams, attracting a wider range of customers interested in different
cuisines or cooking techniques.Utilization of Existing Resources: Loaf can leverage its
existing infrastructure, facilities, and expertise to develop and offer new cookery
courses, minimizing upfront investment and maximizing returns.

Based on the analysis, Option 2: Introducing Different Cookery Courses may be the
preferable choice for Loaf to increase its net cash flow.
4

(a)???

(b)Employing casual staff can offer several benefits for Loaf:

Flexibility: Casual staff provide flexibility in staffing levels, allowing Loaf to adjust its
workforce according to fluctuations in demand. During peak periods, such as holidays
or special events, Loaf can hire additional casual staff to meet increased customer
demand. Conversely, during slower periods, Loaf can reduce staffing levels to control
costs.
Cost-effectiveness: Hiring casual staff can be more cost-effective for Loaf compared to
hiring full-time or part-time employees. Loaf only pays casual staff for the hours they
work, without incurring additional costs such as benefits, paid time off, or ongoing
training expenses. This helps Loaf manage labor costs more efficiently, especially
during periods of variable demand.
Overall, employing casual staff offers Loaf flexibility, cost-effectiveness, access to
diverse skills, scalability, and the ability to manage seasonal demand effectively. By
strategically leveraging casual staffing, Loaf can optimize its workforce, enhance
operational efficiency, and focus on delivering exceptional products and experiences to
customers.

(c)