Question 1
With reference to Figure 1, briefly explain the market structure that best describes the UK branded coffee shop market.
(5)
With reference to Figure 3 and other information provided, discuss the price and non-price strategies that Starbucks may use to increase profitability.
(12)
Examine the advantages of using an indirect tax as a means of reducing the use of disposable coffee cups.
(8)
EITHER
Evaluate the microeconomic and macroeconomic factors that may influence Starbucks’ decision whether to expand in a particular country.
(25)
With reference to the information provided and your own knowledge, evaluate the microeconomic and macroeconomic effects of increased UK demand for coffee at branded coffee shops.
Write your answer here:
(25)