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Text 3 Miles Ahead is a bicycle retailer which was set up in 2001 by entrepreneur, Reg Patel - OCR - GCSE Business - Question 18 - 2021 - Paper 1
Question 18
Text 3 Miles Ahead is a bicycle retailer which was set up in 2001 by entrepreneur, Reg Patel. Reg started with one shop, but the business has gradually expanded. Th... show full transcript
Worked Solution & Example Answer:Text 3 Miles Ahead is a bicycle retailer which was set up in 2001 by entrepreneur, Reg Patel - OCR - GCSE Business - Question 18 - 2021 - Paper 1
Step 1
Step 2
Analyse two benefits for Miles Ahead of using market segmentation.
Answer
Benefit 1: Improved Targeting of Customers By using market segmentation, Miles Ahead can tailor its marketing strategies to specific groups of customers, such as targeting younger customers with specific promotions or bicycle styles. This personalized approach makes marketing efforts more effective and can increase sales.
Benefit 2: Enhanced Customer Satisfaction Segmentation allows Miles Ahead to identify and cater to the unique needs of different customer segments. By understanding various demographics and preferences, the company can enhance customer satisfaction, leading to repeat business and customer loyalty.
Step 3
Analyse one benefit for Miles Ahead of a Tall organisational structure.
Answer
A tall organisational structure provides clear levels of hierarchy and a distinct chain of command. This can lead to better supervision and oversight of employees, which is crucial for maintaining quality control and operational efficiency in Miles Ahead's multiple locations.
Step 4
Analyse one benefit for Miles Ahead of a Flat organisational structure.
Answer
A flat organisational structure can lead to improved communication and faster decision-making. With fewer levels of management, employees at Miles Ahead can share their insights directly with upper management, fostering teamwork and increasing employee morale.
Step 5
Recommend which type of organisational structure would be the most appropriate for Nessa to use at Miles Ahead. Give reasons for your answer.
Answer
I recommend that Nessa adopt a flat organisational structure for Miles Ahead. This structure would enhance communication and agility, allowing the business to respond quickly to market changes. Given the competitive bicycle retail environment, the ability to innovate and adapt quickly is essential for success.
Step 6
Evaluate one reason for Nessa to consider a sole trader as the type of business ownership for Miles Ahead in the future.
Answer
One reason for Nessa to consider operating as a sole trader is the simplicity of structure and regulatory requirements. Operating as a sole trader would allow Nessa to make quick decisions without needing to consult with partners or a board, which can be beneficial in a dynamic marketplace. However, this comes with the drawback of unlimited liability, which Nessa must weigh against her expansion plans.