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Assess whether this is the most important role of an entrepreneur, such as Lord Somerleyton. - Edexcel - A-Level Business - Question 1 - 2018 - Paper 1
Question 1
Assess whether this is the most important role of an entrepreneur, such as Lord Somerleyton.
Worked Solution & Example Answer:Assess whether this is the most important role of an entrepreneur, such as Lord Somerleyton. - Edexcel - A-Level Business - Question 1 - 2018 - Paper 1
Step 1
Creating and setting up a business is one role of an entrepreneur
Answer
Creating and setting up a business involves recognizing a market opportunity and taking the necessary risks to initiate the enterprise. In the case of Lord Somerleyton, he identified a gap in the fast food sector focusing on high-quality chip-only establishments. His initial step included understanding consumer preferences, which is crucial for any entrepreneur looking to achieve success.
Step 2
Spotting and responding to consumer needs
Answer
Effective entrepreneurs must be in tune with consumer tastes. Lord Somerleyton has conducted small sample research backing his approach to providing high-quality chips. By identifying customer preferences, such as healthier meal options and innovative toppings, he sets up a framework that could lead to greater business success.
Step 3
Expanding the business as a vital role
Answer
In addition to setting up, expanding the business plays an equally important role. Lord Somerleyton aims to initiate new concepts like a Hot Chip Saloon, which requires him to constantly identify new opportunities and manage resources wisely. This aspect is not just about maintaining existing clientele but also about attracting new customers and adjusting to market demand.
Step 4
Balancing risk and innovation
Answer
Another key role for an entrepreneur lies in balancing innovation with risk. Lord Somerleyton's expansion efforts highlight the necessity of finding a sustainable business model. If he failed to innovate or take calculated risks, the business could stagnate or fail to meet changing consumer expectations.
Step 5
Conclusion: The significance of roles
Answer
In conclusion, while setting up a business is fundamental, the role of an entrepreneur encapsulating both the initial establishment and the subsequent expansion cannot be understated. For someone like Lord Somerleyton, these roles are interlinked; without the initial creation, there is nothing to expand, yet without innovation and expansion, the business cannot thrive.