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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. (1) (b) Using the information in Figure 4, identify the year with the smallest percentage change in Iceland's sales revenue. ... 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
The level of competition in the grocery market can influence Iceland's pricing strategy. For instance, if there are few competitors, Iceland may set higher prices; conversely, high competition may force lower prices.
Step 4
Justify which one of these two options Iceland should choose.
Answer
Iceland should choose to offer permanent contracts because this may provide employees with greater job security, increasing their motivation and commitment to the company. A stable workforce is likely to enhance customer service, which is crucial for the success of The Food Warehouse, especially in attracting high-income food shoppers. Furthermore, offering permanent contracts can help in attracting more skilled employees and reduce turnover, which may enhance operational efficiency.
Step 5
Evaluate whether Iceland is likely to benefit from its decision to ban all plastic packaging on its own-brand products.
Answer
By banning plastic packaging, Iceland may establish a unique selling point that appeals to environmentally conscious consumers. Although this strategy may increase packaging costs, it could attract more shoppers seeking sustainable options. The decision may enhance profitability due to positive consumer perceptions and increased market share, especially if competitors cannot offer similar products. However, Iceland must consider that implementing new packaging strategies could lead to increased operational challenges and potentially affect product pricing. Ultimately, if managed well, this decision could strengthen Iceland's brand image and lead to long-term benefits.