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Theo's Mexican Street Food Theo had many years of experience working as a chef in Mexican food restaurants - Leaving Cert Business - Question Question 1 - 2016
Question Question 1
Theo's Mexican Street Food Theo had many years of experience working as a chef in Mexican food restaurants. He noticed how popular food trailers had become when att... show full transcript
Worked Solution & Example Answer:Theo's Mexican Street Food Theo had many years of experience working as a chef in Mexican food restaurants - Leaving Cert Business - Question Question 1 - 2016
Step 1
Explain three sources of new product/service ideas for a business.
Answer
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Travel: Visiting other places can provide inspiration for new ideas by observing what products or services are popular elsewhere.
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Competitors: Analyzing competitors can reveal gaps in the market and potential areas for improvement.
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Customer Feedback: Actively listening to customer feedback allows a business to identify specific needs and adjust their offerings accordingly.
Step 2
Outline two reasons why a business would carry out market research.
Answer
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Understanding Customer Needs: Market research helps identify what customers want, allowing a business to tailor its products or services to meet those demands.
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Staying Competitive: Continuous market research ensures a business is aware of competitors' strategies and market trends, helping them adapt and stay relevant.
Step 3
Outline two medium term sources of finance that Theo could have used to purchase the jeep and food trailer.
Answer
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Medium Term Loan: Theo could take out a loan from a bank to cover the purchase. This would require regular repayments over a set period.
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Hire Purchase: Theo could finance the purchase through a hire purchase agreement, paying in installments until the full amount is settled.
Step 5
Outline two benefits of a brand name for a business.
Answer
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Recognizability: A strong brand name makes the business more memorable and helps it stand out in a crowded market.
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Customer Loyalty: A reputable brand encourages repeat purchases, as customers are often willing to return to brands they trust.
Step 6
Describe two sales promotions that Theo's Mexican Street Food could offer consumers to increase sales.
Answer
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Price Reductions: Offering discounts, such as a 20% reduction on particular days, can entice customers to try the food trailer during slow periods.
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Free Samples: Providing free samples allows potential customers to taste the food before committing to a purchase, increasing the likelihood of a sale.