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4 (a) Outline one reason why cash would be important to On Your Bike - Edexcel - GCSE Business - Question 4 - 2020 - Paper 1
Question 4
4 (a) Outline one reason why cash would be important to On Your Bike. (b) Analyse the impact on On Your Bike of customers using social media to review the business.
Worked Solution & Example Answer:4 (a) Outline one reason why cash would be important to On Your Bike - Edexcel - GCSE Business - Question 4 - 2020 - Paper 1
Step 1
Outline one reason why cash would be important to On Your Bike.
Answer
Cash is crucial for On Your Bike as it allows the business to maintain liquidity. This liquidity is essential for day-to-day operations, such as paying suppliers and employees promptly. For a business like On Your Bike, having cash readily available can prevent disruptions in service and help manage unexpected expenses.
Step 2
Analyse the impact on On Your Bike of customers using social media to review the business.
Answer
The impact of customers using social media to review On Your Bike can be significant. Firstly, positive reviews from satisfied customers can enhance the brand's reputation, attracting new customers and fostering loyalty among existing ones. Additionally, social media offers a platform for immediate feedback, allowing the business to address concerns swiftly and improve customer service.
Conversely, negative reviews can tarnish On Your Bike's image, deterring potential customers. A single negative experience can be amplified through social media, affecting sales. Therefore, it is important for the business to actively monitor social media and engage with customers, ensuring that any issues are resolved and positive experiences are highlighted.
In summary, social media serves as a double-edged sword for On Your Bike, requiring proactive management to leverage its benefits while mitigating risks.