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Which one of the following is a stage in the sales process? Select one answer - Edexcel - GCSE Business - Question 3 - 2020 - Paper 1
Question 3
Which one of the following is a stage in the sales process? Select one answer. A Product knowledge B Product quality C Production D Productivity In 2018 a busines... show full transcript
Worked Solution & Example Answer:Which one of the following is a stage in the sales process? Select one answer - Edexcel - GCSE Business - Question 3 - 2020 - Paper 1
Step 1
Step 2
Using the information in Figure 1, calculate, to 2 decimal places, the percentage of total sales revenue made by product X in 2018. You are advised to show your workings.
Answer
To calculate the percentage of total sales revenue made by product X in 2018, first examine the sales revenue figures provided in Figure 1. Suppose product X generated 200,000.
The calculation is as follows:
ext{Percentage} = rac{ ext{Sales Revenue of Product X}}{ ext{Total Sales Revenue}} imes 100
Substituting the values, we get: ext{Percentage} = rac{50000}{200000} imes 100 = 25.00\%
Step 3
Explain one drawback to a business from differentiating its product.
Answer
One significant drawback of differentiating a product is the increased cost associated with unique features and branding strategies. Businesses may need to invest in research and development to create innovative features, which can lead to higher operational costs. Additionally, if the differentiation does not appeal to the target market, it may lead to unsold inventory and potential financial losses.
Step 4
Explain one impact on a business from increased globalisation.
Answer
One impact on a business from increased globalisation is the heightened competition it faces. As businesses expand into international markets, they encounter competitors from various countries, which can lead to price wars and reduced profit margins. Companies may need to innovate continuously or revise their strategies to maintain market share.
Step 5
Discuss the impact on a business of becoming a public limited company (plc).
Answer
Becoming a public limited company (plc) has several impacts on a business.
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Access to Capital: A plc can raise significant funds by issuing shares to the public, which facilitates expansion and development projects. This can support long-term growth strategies.
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Increased Compliance: Public companies must adhere to strict regulatory scrutiny and reporting requirements, which can increase administrative costs and complexity in operations.
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Market Reputation: Being publicly traded can enhance a company's reputation, attracting more customers and potential investors. However, it also exposes the company to market volatility and shareholder pressures to perform.
In summary, while going public offers opportunities for growth and visibility, it also entails challenges related to compliance and market pressures.