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Read the information supplied and answer the questions which follow - Leaving Cert Business - Question Question 1 - 2016
Question Question 1
Read the information supplied and answer the questions which follow. Theo's Mexican Street Food Theo had many years of experience working as a chef in Mexican food... show full transcript
Worked Solution & Example Answer:Read the information supplied and answer the questions which follow - 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 different places can inspire new ideas by exposing the business owner to unique foods and service styles that work well in other markets.
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Competitors: Observing what competitors are doing effectively can provide insights into successful practices and areas for improvement, allowing for innovation in one’s offerings.
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Brainstorming Sessions: Organizing brainstorming sessions with staff can yield diverse ideas and perspectives, leading to creative solutions for service improvements and new product offerings.
Step 2
Outline two reasons why a business would carry out market research.
Answer
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To identify competitors: By conducting market research, a business can discover who their competitors are and analyze their strengths and weaknesses, allowing them to position themselves effectively.
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To understand customer needs: Market research helps a business determine what customers want and how to tailor their offerings, ensuring that products meet market demand.
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 borrow money from a bank, paying it back in regular installments over a span of three to five years, making the expense manageable while maintaining cash flow.
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Hire Purchase: Theo could acquire the jeep and food trailer by entering into a hire purchase agreement, paying an initial deposit followed by installments, allowing him to use the vehicle and trailer while ensuring ownership after the final payment.
Step 5
Outline two benefits of a brand name for a business.
Answer
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Product Recognition: A strong brand name makes products more recognizable, which enhances visibility and can influence purchasing decisions positively.
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Customer Loyalty: Established brand names tend to cultivate customer loyalty, encouraging repeat purchases and creating a committed customer base.
Step 6
Describe two sales promotions that Theo's Mexican Street Food could offer consumers to increase sales.
Answer
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Discounts: Theo could offer promotional discounts, such as a 20% reduction on slow trade days, for example, Mondays. This could persuade more customers to visit on those days.
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Loyalty Cards: Theo could implement a loyalty card system where customers receive a free meal or beverage after a certain number of purchases, encouraging repeat business and customer retention.