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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 ... 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.
Answer
To calculate the percentage of total sales revenue made by product X, use the formula:
ext{Percentage} = rac{ ext{Sales Revenue of Product X}}{ ext{Total Sales Revenue}} imes 100After plugging in the figures from Figure 1:
Suppose Product X sold revenue of ( R_X ) and the total revenue was ( R_T ):
ext{Percentage} = rac{R_X}{R_T} imes 100Calculate and round to two decimal places.
Step 3
Explain one drawback to a business from differentiating its product.
Answer
One drawback of product differentiation is the increased costs associated with developing and marketing unique products. Businesses may need to invest significantly in research and development to diversify their offerings, which could lead to higher operational costs. This can result in reduced profitability if the additional revenues from uniquely positioned products do not compensate for these expenses.
Step 4
Explain one impact on a business from increased globalisation.
Answer
Increased globalisation can lead to greater market access for businesses, allowing them to expand their customer base beyond local markets. This can provide opportunities for increased sales and revenue. However, it may also expose businesses to international competition, which could pressure them to lower prices or improve quality to remain competitive.
Step 5
Discuss the impact on a business of becoming a public limited company (plc).
Answer
Becoming a public limited company (plc) allows a business to raise capital by issuing shares to the public. This can provide substantial funds for expansion and investment. However, it also entails greater regulatory scrutiny and pressures from shareholders, which may lead to a focus on short-term performance rather than long-term strategy. Additionally, existing owners may dilute their control over the business as more shareholders come on board.