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A juice bar is operating in a shopping centre - HSC - SSCE Business Studies - Question 24 - 2019 - Paper 1
Question 24
A juice bar is operating in a shopping centre. The juice is served to customers in plastic cups with plastic straws. The high sales volume and quick turnover demand ... show full transcript
Worked Solution & Example Answer:A juice bar is operating in a shopping centre - HSC - SSCE Business Studies - Question 24 - 2019 - Paper 1
Step 1
Identify TWO transforming resources used in this business.
Answer
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Human Resources: This includes staff members who operate the juice bar, prepare the juice, and provide customer service. Their skills and efficiency are crucial for maintaining the speed and quality of service.
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Facilities: This refers to the physical setup of the juice bar, including the equipment used (juicers, blenders, etc.) and the layout of the space which affects workflow and customer experience.
Step 2
How does variety impact the transformation process of this business?
Answer
Variety in the products offered by the juice bar can significantly affect the transformation process. With a broad selection of juices available, the business can attract a wider range of customers, enhancing customer satisfaction and loyalty. However, this variety demands a more complex operational structure.
The introduction of new juice recipes requires additional training for employees to ensure quality and consistency. Increased variety also means more ingredients must be sourced, leading to higher inventory management complexity.
Moreover, variety can result in increased customer wait times during peak hours as staff juggle multiple orders, potentially impacting profitability. Thus, the business must balance product variability with operational efficiency to maximize sales and maintain customer satisfaction.
Step 3
Why might this business be reluctant to become more socially responsible?
Answer
The juice bar might be hesitant to adopt more socially responsible practices due to the additional financial burden that these changes could impose. For example, switching to environmentally friendly packaging and ingredients often comes at a higher cost. These costs could lead to increased prices for customers, potentially decreasing patronage.
Additionally, the business may face challenges in finding suppliers who provide sustainably sourced ingredients, which can complicate the supply chain. There is also the risk that customers may not value these new practices enough to justify the increased costs, leading to a potential loss in revenue.
Ultimately, while the benefits of social responsibility are significant, the immediate financial implications can make businesses cautious in making such transitions.