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7 (a) Define the term pressure group - Edexcel - GCSE Business - Question 7 - 2020 - Paper 1
Question 7
7 (a) Define the term pressure group. (b) Using the information in Figure 4, identify the year with the smallest percentage change in Iceland's sales revenue. (c... show full transcript
Worked Solution & Example Answer:7 (a) Define the term pressure group - Edexcel - GCSE Business - Question 7 - 2020 - Paper 1
Step 1
Step 2
Step 3
Outline one factor that could influence Iceland's choice of pricing strategy for its range of new products.
Answer
One factor that could influence Iceland's choice of pricing strategy is the level of competition in the grocery market. For example, with reduced competition, Iceland may have more flexibility in setting prices, allowing them to charge a premium for unique products.
Step 4
Justify which one of these two options Iceland should choose.
Answer
Iceland should offer permanent contracts for 'The Food Warehouse' stores. Permanent contracts can provide employees with job security, enhancing motivation and retention. This is crucial for customer service and overall business stability, especially in a new concept like the Food Warehouse.
Step 5
Evaluate whether Iceland is likely to benefit from its decision to ban all plastic packaging on its own-brand products.
Answer
Iceland's decision to ban plastic packaging may result in a unique selling point that could attract environmentally conscious customers. However, it may also lead to increased costs as alternative packaging materials are often more expensive. While this aligns with growing market demands for sustainability, it is essential to consider how this may affect profit margins and competitiveness compared to retailers like Tesco who maintain their own brand products. Overall, the success of this decision will depend on balancing cost management while enhancing brand reputation.