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ACE Toys Ltd is a successful Irish toy manufacturer - Leaving Cert Business - Question SPRAOI - 2013
Question SPRAOI
ACE Toys Ltd is a successful Irish toy manufacturer. It uses a ‘Batch Production’ process. Each year it develops new products for the Christmas period, selling to th... show full transcript
Worked Solution & Example Answer:ACE Toys Ltd is a successful Irish toy manufacturer - Leaving Cert Business - Question SPRAOI - 2013
Step 1
Explain what is meant by the term ‘Batch Production’.
Answer
Batch production refers to a manufacturing process where a certain amount or limited quantity of a product is produced simultaneously, and then the production switches to a different batch or group. This approach allows for the completion of all tasks associated with the production of a specific item before moving on to another product. For instance, in a bakery, a batch of loaves is baked at once, which exemplifies batch production.
Step 2
Describe two internal and two external sources of new product ideas for ACE Toys Ltd.
Answer
Internal sources of new product ideas include:
- R&D Department: The research and development team continuously seeks innovative ideas and improvements for new products.
- Brainstorming: Regularly scheduled brainstorming sessions with staff to generate creative product ideas.
External sources include:
- Customer Feedback/Market Research: Gathering insights from existing customers regarding their preferences and expectations helps shape new ideas.
- Import Substitution: Researching products which can be sourced from international markets to better understand trends and gain product ideas.
Step 3
Draft and label the Product Life Cycle for ‘SPRAOI’.
Answer
The Product Life Cycle includes the following stages:
- Introduction: The product is launched and marketed, with initial sales gradually increasing as awareness grows.
- Growth: Sales begin to increase significantly as more consumers become aware of the product and its benefits.
- Maturity: Sales peak as the product gains widespread acceptance. Competition may increase, leading to market saturation.
- Saturation: Sales begin to stabilize or decline as the market becomes saturated with similar products.
- Decline: Sales gradually decrease as newer products enter the market and consumer interest wanes.
This can be illustrated with a graph showing sales on the Y-axis and time on the X-axis.
Step 4
Outline two benefits for ACE Toys Ltd of having its own website.
Answer
- Global Reach: Having a website allows ACE Toys Ltd to access a wider, worldwide market 24/7, enabling potential customers from around the globe to view and purchase products at any time.
- Marketing and Sales: The website serves as a platform for advertisement, where the company can showcase new products, accept payments, and increase its sales and profits efficiently.
Step 5
Choose a suitable advertising medium to bring ‘SPRAOI’ to the attention of consumers, and outline two reasons for your choice.
Answer
A suitable advertising medium would be Internet Advertising.
Reasons include:
- Targeted Audience: Internet ads can be tailored to reach specific demographics, such as parents of children aged 7-11, ensuring that the message reaches the most relevant audience.
- Cost-Effectiveness: Online advertising tends to be more affordable than traditional media, allowing ACE Toys Ltd to maximize their advertising budget while ensuring wider outreach.