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Elaine's business markets a popular range of jewellery based on Australian wildlife - HSC - SSCE Business Studies - Question 26 - 2008 - Paper 1
Question 26
Elaine's business markets a popular range of jewellery based on Australian wildlife. She sells her product to shops when they sell to consumers. She credits her succ... show full transcript
Worked Solution & Example Answer:Elaine's business markets a popular range of jewellery based on Australian wildlife - HSC - SSCE Business Studies - Question 26 - 2008 - Paper 1
Step 1
Outline how e-commerce can assist Elaine to maintain relationships with overseas distributors
Answer
E-commerce can play a crucial role in maintaining relationships with overseas distributors by enabling seamless communication and interaction. Online platforms allow for quick dissemination of information, updates on product availability, and promotional materials. This can help distributors feel more connected and supported, which enhances collaboration.
Additionally, e-commerce facilitates order processing and tracking, which can improve efficiency in transactions. By utilizing a customer relationship management (CRM) system integrated with e-commerce, Elaine can manage distributor information, track interactions, and tailor her services to meet their specific needs. This proactive approach can lead to stronger partnerships and increased sales.
Step 2
Explain ONE distribution strategy for the overseas market
Answer
One effective distribution strategy for the overseas market is to utilize a direct shipping model, which involves shipping products directly from Elaine's warehouse to the overseas distributors. This strategy can reduce lead times significantly and allows for better control over inventory management.
By using this model, Elaine can establish relationships with international shipping companies to ensure reliable and timely deliveries. This approach not only enhances customer satisfaction but also provides flexibility in adapting to the specific demands of different markets. Additionally, leveraging e-commerce tools for tracking shipments can provide transparency and improve efficiency.
Step 3
Evaluate ONE method which could be used to finance the expansion
Answer
One method that could be used to finance the expansion is a business loan from a bank or financial institution. This method offers Elaine the advantage of obtaining a lump sum of capital that can be used for immediate needs such as increasing inventory, marketing expenses, and establishing e-commerce platforms.
However, while a business loan can provide the necessary funds, it's important to consider the implications of interest rates and repayment schedules. Elaine must ensure that her cash flow can cover these repayments even during the initial stages of expansion, where revenues may not be substantial. Proper financial planning and forecasting will be necessary to mitigate risks associated with this financing method.