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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.
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 the importance of capacity utilisation
Answer
Capacity utilisation refers to the extent to which an organization or a venue utilizes its production capacity. It is critical for the Commonwealth Games, as it ensures that resources are maximized, costs are minimized, and the experience for attendees is optimized. High capacity utilisation indicates efficiency, while low levels may suggest underutilization of resources.
Step 2
Application: Examples of capacity utilisation
Answer
For instance, consider the Birmingham 2022 Commonwealth Games where venues like the Alexander Athletics Stadium are designed to host around 30,000 spectators. Efficiently utilizing this capacity not only enhances the atmosphere but also contributes financially, ensuring that ticket sales and sponsorships are maximized. Additionally, a well-utilized venue can attract more investment and partnerships.
Step 3
Analysis: Implications of effective capacity utilisation
Answer
Effective capacity utilisation is significant for the overall success of the Commonwealth Games. It reinforces the brand’s reputation, as customers often choose events based on their perceived quality and buzz. If venues are fully utilized, it showcases the event's popularity and allure, making it more likely to attract future sponsorships and partnerships, thus sustaining its economic impact.