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Icecreams R Us exclusively delivers ice-cream to homes in Newcastle - HSC - SSCE Business Studies - Question 25 - 2020 - Paper 1
Question 25
Icecreams R Us exclusively delivers ice-cream to homes in Newcastle. To increase market share, they are negotiating with a major service station chain, Eucafels Ltd,... show full transcript
Worked Solution & Example Answer:Icecreams R Us exclusively delivers ice-cream to homes in Newcastle - HSC - SSCE Business Studies - Question 25 - 2020 - Paper 1
Step 1
describe TWO physical distribution issues that the business needs to consider in the delivery of their product
Answer
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Transport: Efficient transport is crucial for timely delivery of ice-cream to Eucafels Ltd outlets. Therefore, considerations for the type of vehicles, routes, and scheduling must ensure that ice-cream maintains its quality temperature and is delivered without delays.
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Warehousing: Proper warehousing strategies must be employed to ensure that ice-cream is stored at the correct temperatures and that there is enough capacity to handle fluctuating demand. This involves both the physical conditions for storage as well as inventory management practices.
Step 2
justify ONE promotional strategy the business could use
Answer
A social media marketing campaign could be an effective promotional strategy. This can create awareness about the ice-cream being sold at Eucafels Ltd outlets. By using platforms with a large audience, Icecreams R Us can share engaging content, such as product images and customer testimonials, which can enhance brand recognition and drive customers to Eucafels locations.
Step 3
recommend possible changes the business could make to their operations processes to address the volume and quality concerns of Eucafels Ltd
Answer
To address volume and quality concerns, Icecreams R Us should consider implementing demand forecasting and production scheduling to optimize their operations. By accurately predicting demand, they can align production schedules accordingly, ensuring that they maintain a consistent quality of ice-cream while meeting Eucafels Ltd's volume needs. Additionally, adopting a quality control system during production can ensure that each batch meets specified standards before being transported.