Read the scenario below and answer the questions that follow - NSC Business Studies - Question 2 - 2017 - Paper 1
Question 2
Read the scenario below and answer the questions that follow.
Martha & Jane Furniture (MJF)
Martha & Jane Furniture specialise in selling office furniture. The pro... show full transcript
Worked Solution & Example Answer:Read the scenario below and answer the questions that follow - NSC Business Studies - Question 2 - 2017 - Paper 1
Step 1
Quote THREE challenges for MJF from the scenario above.
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Answer
The profitability of the business has decreased due to high inflation rates.
Low income levels of customers.
MJF had to pay a hefty fine because they did not renew their trading licence in time.
Step 2
Identify the PESTLE element that links to EACH challenge, as quoted in QUESTION 2.3.1.
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Answer
Economic: High inflation rates affecting profitability.
Social: Low income levels of customers impacting sales.
Legal: Issues related to the non-renewal of the trading licence.
Step 3
Recommend ONE way in which MJF can deal with EACH challenge, as identified in QUESTION 2.3.1.
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Answer
To address the profitability issue, MJF could reduce the profit margin on their products to attract more customers.
To deal with low income levels of customers, MJF could offer skills development programs to members of the community.
To resolve the issue of their trading licence, MJF should implement a reminder system to ensure that their administrative tasks are completed on time.
