Outline one trade-off that Lego may have faced when deciding to produce The Lego Movie.
- Edexcel - GCSE Business - Question 8 - 2017 - Paper 1
Question 8
Outline one trade-off that Lego may have faced when deciding to produce The Lego Movie.
Worked Solution & Example Answer:Outline one trade-off that Lego may have faced when deciding to produce The Lego Movie.
- Edexcel - GCSE Business - Question 8 - 2017 - Paper 1
Step 1
Trade-off between investment and potential revenue
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Answer
Lego had to consider the financial investment required to produce The Lego Movie against the potential revenue it could generate. Investing in a film involves significant costs such as production, marketing, and distribution. However, the success of the movie could also lead to increased sales of Lego products, brand recognition, and expansion into new markets. Thus, the trade-off lies in weighing the initial financial risk against potential future gains.