4. (a) Which of the following is most likely to result in an immediate improvement in Starbucks’ cash flow? Select one answer. A. Increased productivity B. Smaller margin of safety C. Paying suppliers later D. Repaying a bank loan (b) Outline one method Starbucks could use to differentiate its coffee from that of its rivals.

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4. (a) Which of the following is most likely to result in an immediate improvement in Starbucks’ cash flow? Select one answer - Edexcel - GCSE Business - Question 4 - 2015 - Paper 1

Question 4

4.-(a)-Which-of-the-following-is-most-likely-to-result-in-an-immediate-improvement-in-Starbucks’-cash-flow?-Select-one-answer-Edexcel-GCSE Business-Question 4-2015-Paper 1.png

4. (a) Which of the following is most likely to result in an immediate improvement in Starbucks’ cash flow? Select one answer. A. Increased productivity B. Smaller... show full transcript

Worked Solution & Example Answer:4. (a) Which of the following is most likely to result in an immediate improvement in Starbucks’ cash flow? Select one answer - Edexcel - GCSE Business - Question 4 - 2015 - Paper 1

Step 1

Which of the following is most likely to result in an immediate improvement in Starbucks’ cash flow?

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Answer

The answer is C. Paying suppliers later. This option directly affects cash flow by delaying outgoing payments, which can provide immediate relief to cash reserves.

Step 2

Outline one method Starbucks could use to differentiate its coffee from that of its rivals.

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Answer

One method Starbucks could use is offering unique flavors, such as seasonal or limited-time offerings that are not available at competitors. For example, they could introduce a distinctive seasonal blend with special spices or ingredients, making it more appealing compared to standard coffee options.

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