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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
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Targeted Marketing: By using market segmentation, Miles Ahead can tailor its marketing strategies to specific customer groups. This means promoting bicycles that cater to distinct demographics, such as age or lifestyle, leading to more effective marketing campaigns.
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Improved Customer Satisfaction: Understanding the needs of different segments allows Miles Ahead to offer products that better meet customer preferences. This can enhance customer satisfaction, as evidenced by the varying satisfaction percentages in the survey results.
Step 3
Analyse one benefit for Miles Ahead of each of the following organisational structures.
Answer
- Tall organisational structure: A tall organisational structure can lead to clearer hierarchies and defined roles. This can result in enhanced supervision and opportunities for employee promotion, creating a motivated workforce.
- Flat organisational structure: A flat organisational structure can facilitate faster decision-making and better communication among staff. With fewer layers of management, employees may feel more empowered and encouraged to contribute to discussions.
Step 4
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 would recommend a flat organisational structure for Nessa at Miles Ahead. This structure could be beneficial as it allows for more direct communication and quicker decision-making processes. With Nessa expanding the business, having fewer levels of management can help her respond to market changes and customer needs swiftly Moreover, a flat structure can foster a collaborative environment among employees, which is essential for improving customer service and overall satisfaction.
Step 5
Evaluate the risks and rewards for Nessa when considering a sole trader in the type of business ownership for Miles Ahead in the future.
Answer
One reward of becoming a sole trader is the simplicity of decision-making; Nessa would have complete control over all aspects of the business, which could lead to faster implementation of new ideas.
A risk, however, is that as a sole trader, Nessa would be personally liable for all business debts. This means that if the business were to incur significant losses or face legal issues, her personal assets could be at risk. Overall, while the sole trader model offers autonomy, it comes with substantial financial responsibilities.