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Assess the importance of capacity utilisation during the Commonwealth Games - Edexcel - A-Level Business - Question 1 - 2022 - Paper 3
Question 1
Assess the importance of capacity utilisation during the Commonwealth Games. The Commonwealth Games is a major international multi-sport event, and effective capaci... show full transcript
Worked Solution & Example Answer:Assess the importance of capacity utilisation during the Commonwealth Games - Edexcel - A-Level Business - Question 1 - 2022 - Paper 3
Step 1
Knowledge/Understanding: Importance of Capacity Utilisation
Answer
Capacity utilization refers to how effectively available resources are being used during an event. In the context of the Commonwealth Games, high capacity utilization means that venues are filled to their maximum during competitions, ensuring that the event is economically viable and maximizing potential profits. This can significantly affect the overall success of the Games.
Step 2
Application: Real-world Examples
Answer
One example is how the Birmingham Commonwealth Games sought to engage local communities and promote ticket sales to ensure full venues. This kind of demand-driven approach can lead to higher capacity utilization.
Furthermore, consider how popular events like the Olympics utilize this principle by designing venues that can accommodate large audiences effectively.
Step 3
Analysis: Long-term Implications
Answer
High capacity utilization not only affects immediate revenue but also enhances the reputation of the Games. Successful events lead to increased interest in future occurrences and can build the host city's reputation as a capable organizer of large-scale events, attracting more tourism and investment. Conversely, low capacity utilization can lead to negative financial implications and damage the event's credibility.