The competitive environment

In the Source Booklet, look at Figure 2 and read Extract A, then answer Questions 4, 5 and 6.

Outline one impact that competition could have on Pizza Pilgrims.

Analyse the impact on Thom and James of their lack of security when they started Pizza Pilgrims.

Which one of the following is a way of segmenting a market?

Select one answer.

Which one of the following is a definition of insolvency?

Select one answer.

Explain one disadvantage of starting a business as a partnership.

Explain one advantage to customers from increased competition.

Which two of the following are examples of customer needs?

Select two answers.

Which two of the following are roles of an entrepreneur?

Select two answers.

Table 1 contains information about a small business.

The business increases the selling price of its product to £6.50 per unit.

Using the information in Table 1, calculate the decrease in the break even level of output. You are advised to show your workings.

Explain one way a small business could become more competitive.

Explain one advantage to a small business of meeting its legal obligations.

Which one of the following is a characteristic of a sole trader?

Select one answer.

Figure 1 shows the total costs for a business between May and July.

Using the information in Figure 1, calculate the percentage change in total costs between May and July. You are advised to show your workings.

Explain one reason why new business ideas come about.

Explain one advantage to a small business of using market mapping.

Discuss how the decision making of a small business may be affected by increased competition.

State one stakeholder of Loco.

Table 3 shows the interest rate paid on savings between 2014 and 2017.

Using the information in Table 3, identify the best year for Loco to save any retained profit it may have.

Outline one way that a business plan could have helped Joe Thwaites when starting Loco.

In order to make improvements to the business, Loco is considering two options:

Option 1: introduce a digital payment system e.g. PayPal

Option 2: hold online meetings using digital communication.

Justify which one of these two options Loco should choose.

Evaluate the extent to which Loco will be able to compete with large manufacturers of SUPs. You should use the information provided as well as your knowledge of business.

State one way Aphrodite could use social media.

Table 3 shows the value of the pound (£) in euros (€) from June to September.

Identify, from Table 3, which month was best for Aphrodite to import clothes from Paris.

Outline one reason why Aphrodite’ s range of stock could give it an advantage over its competitors.

To pay for the conversion of the premises, Aphrodite is considering two options:

Option 1: obtaining a bank loan

Option 2: crowd funding.

Justify which one of these two options Aphrodite should choose.

Evaluate the impact of e-commerce on Aphrodite ’s marketing mix. You should use the information provided as well as your knowledge of business.