Explain one internal cause of the business failure of MG Rover Group - Edexcel - A-Level Business - Question 2 - 2018 - Paper 2
Question 2
Explain one internal cause of the business failure of MG Rover Group.
MG Rover Group was the last UK-owned mass-production car manufacturer in the British motor ind... show full transcript
Worked Solution & Example Answer:Explain one internal cause of the business failure of MG Rover Group - Edexcel - A-Level Business - Question 2 - 2018 - Paper 2
Step 1
Understanding an internal cause
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Answer
One internal cause for the business failure of MG Rover Group was the failure to produce new and improved models. This lack of innovation hindered its ability to compete in a rapidly changing market.
Step 2
Contextualized example
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Answer
The failure to produce new and improved models led to poor sales as customers began to prefer superior cars from foreign rivals. This shift in consumer preferences directly impacted MG Rover's market position.
Step 3
Developing a cause
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Answer
Additionally, the high production costs associated with the original Mini, along with inefficiencies in production, may have resulted in poor profit margins, ultimately contributing to the financial struggles of the company.
