Photo AI
7 (a) State one stakeholder of Loco - Edexcel - GCSE Business - Question 7 - 2020 - Paper 1
Question 7
7 (a) State one stakeholder of Loco. (b) Using the information in Table 3, identify the best year for Loco to save any retained profit it may have. (c) Outline o... show full transcript
Worked Solution & Example Answer:7 (a) State one stakeholder of Loco - Edexcel - GCSE Business - Question 7 - 2020 - Paper 1
Step 1
Step 2
Step 3
Outline one way that a business plan could have helped Joe Thwaites when starting Loco.
Answer
A business plan could have helped Joe Thwaites by outlining the financial objectives and strategies for Loco. This would have enabled him to forecast potential profits and manage expenses effectively, assisting in securing necessary funding.
Step 4
Justify which one of these two options Loco should choose.
Answer
Loco should choose to introduce a digital payment system. This option will increase convenience for customers, potentially expanding the customer base and allowing for easier transactions. In contrast, while holding online meetings can enhance communication, it does not directly contribute to sales or customer accessibility.
Step 5
Evaluate the extent to which Loco will be able to compete with large manufacturers of SUPs.
Answer
Loco may face challenges in competing with large manufacturers due to factors such as economies of scale, brand recognition, and distribution networks. However, Loco can differentiate itself through personalized customer service, niche marketing, and high-quality products tailored to local needs. The ability to innovate and adapt quickly can also be an advantage, allowing Loco to carve out its market segment.