Study the following scenario and answer the questions that follow - NSC Hospitality Studies - Question 5 - 2017 - Paper 1

The information in the scenario will assist Angela in various aspects of her business plan:

1. Location: Knowing that the cafe is near Mica Secondary School and the post office helps in identifying the foot traffic and potential customer base.
2. Staffing: By planning to employ three people, she can outline her operational structure.
3. Financial Planning: Her application for a bank loan shows she understands the financial needs and budgeting required, which is crucial for her plan.
4. Marketing Strategy: Creating posters for marketing gives insight into the promotional activities she will engage in.
5. Expenditure Management: Angela's focus on budgeting ensures she remains within financial limits, which is essential for business sustainability.

1. Competitions: Angela could host competitions to engage customers and attract attention.
2. Special Offers: Implementing specials on certain days would draw in customers looking for good deals.
3. Promotional Giveaways: Offering giveaways, such as 'buy one get one free,' can enhance customer interest and loyalty.

Angela will be using visual marketing tools, as evidenced by her plan to create posters for her cafe.

1. Baking: Angela could expand her menu to include a variety of baked goods.
2. Function Catering: Providing catering services for events can broaden her business scope.
3. Children's Birthday Parties: Offering packages for children's parties could attract families.

The posters should include characteristics such as:

1. Clear and Readable Text: The font size and style must be easily legible.
2. Engaging Visuals: Incorporating pictures will enhance the appeal of the posters.
3. Effective Messaging: Words like 'SAVE', 'FREE', and 'EXCLUSIVE' should be highlighted to capture attention.
4. Simplicity: Avoiding clutter ensures that potential customers can quickly understand the message.

1. Economic Growth: Angela's cafe could stimulate local economic activity by creating jobs.
2. Community Gathering Space: The cafe can serve as a social hub for residents and students.
3. Local Suppliers: By sourcing ingredients locally, Angela's cafe can support other local businesses.

1. Staff Salaries: Payments to employees are crucial but do not generate income directly.
2. Cleaning Services: Keeping the establishment clean is essential for operations but does not directly create revenue.
3. Maintenance and Repairs: Regular upkeep is necessary to ensure the establishment runs smoothly.

1. Managing Financial Records: Keeping accurate financial records is essential for the stability of the business.
2. Budget Control: Ensuring that expenditures do not exceed the budget is critical for financial health.
3. Compliance with Tax Regulations: The accountant must ensure that the establishment adheres to tax laws and handles VAT correctly.
4. Reporting Financial Performance: Regularly providing financial reports to management to aid in decision-making.