The sales process and customer service

State one reason why customer service is important to a business.

State two advantages to a business of having an overdraft.

Explain why cash is important to a business.

Calculate the average rate of return (ARR) for the new coffee machine.

Show your workings.

........ %

Analyse the change in the cost of the pizza dough between 2022 and 2024.

State two factors that influence where to locate a business.

Discuss whether Riley should relocate to a restaurant or continue to operate from the caravan.

Text 3

_{Adapted from www.computerweekly.com/news/366555332/Gymshark-turns-to-Google-Cloud-for-infrastructure-revamp-and-generative-AI-trials and www.retailgazette.co.uk/blog/2022/10/gymshark-ben-francis-ipo-sale/ and uk.gymshark.com/pages/about-us and en.wikipedia.org/wiki/Gymshark a}Gymshark Ltd

State one method of selling.

Analyse one likely impact on Gymshark Ltd’s customer service of using technology such as Artificial Intelligence (AI) within its app.

Analyse one advantage for Gymshark Ltd of operating as a multinational company (MNC).

Analyse one advantage and one disadvantage for Gymshark Ltd of raising additional finance by issuing shares.

Recommend whether Gymshark Ltd should use a share issue or retained profit to fund future expansion.

* Evaluate whether the economic climate is likely to affect Gymshark Ltd’s marketing decisions.

A manufacturer of diamond rings employs sales staff to visit jewellery stores across the UK to encourage them to purchase its products.

Which of the following is an advantage to the manufacturer of selling face to face to jewellery stores?

A The cut and colour of the diamonds can be clearly demonstrated

B The jewellery stores have the opportunity to negotiate very low prices

C The risk of the rings being stolen is kept as low as possible

D The sales staff can give out lots of free samples

Text 2

AstraZeneca plc

AstraZeneca plc (AZ) is a multinational pharmaceutical company that operates in over 100 countries around the world. AZ develops treatments for a range of diseases. It sells its medicines and vaccines worldwide. Its headquarters are in Cambridge, England. In 2021 AZ’s sales revenue was £37 417m, from which it made £24 980m gross profit.

AZ has a code of ethics, which is at the centre of everything that it does. The company has approximately 75 000 employees worldwide; 10 000 of these work in its three research and development centres.

AZ uses technology throughout its operations to provide high quality products for its customers. These customers include doctors, hospitals and governments from around the globe.

In the UK, AZ has changed the way it sells its products. Previously, sales staff would visit medical professionals; now it uses a call centre and website where medical professionals can order products and samples. AZ says this means it can now provide a high quality service that meets the needs of its customers at a lower cost.

Identify two ethical considerations a business may have.

State two reasons why quality in the production of goods is important to a business.

Analyse one reason why it is important to AZ that its call centre employees have good product knowledge.

Calculate AZ’s gross profit margin for 2021.

Show your workings

Answer........

Explain one way technology might affect production at AZ.

Analyse one advantage and one disadvantage to AZ of operating as a multinational company.

Recommend whether AZ should continue to operate as a multinational company.

Customer engagement:

A allows customers to try before they buy

B contributes to good customer service

C improves the product knowledge of employees

D shortens the supply chain

Text 2 Quality Textiles (QT)

Quality Textiles Ltd (QT) is a medium-sized, established business that manufactures clothes from its factory in Birmingham. Its clothes are sold to retail shops around the country. A summary of its profitability is shown in Table 1.

QT wants to expand the business by using a bank loan to buy a large van to help with deliveries. It will use average rate of return (ARR) to assess which model of van it will buy. Further information is provided in Table 2, below. The new van will mean employing a driver, in addition to the five drivers already working for the business.

QT’s cash flow forecast suggests it may struggle to pay the monthly van loan repayment. QT’s closing bank balance for the last five months is shown in Fig. 1.

QT had problems earlier in the year. It found its way into the local newspaper as part of an investigation into ethical practices in its business activities and supply chain.

Identify one method of selling products to customers.

Identify two ethical considerations for a business.

Explain one reason why a business should act ethically.

Calculate the average rate of return (ARR) for the Standard Van by using the information in Table 2.

Show your workings

Answer........ %

Analyse one reason why QT should buy the Standard Van. Refer to Table 2 in your answer.

Analyse QT’s cash position considering its current expansion plans.

Analyse QT’s profit position considering its current expansion plans.

Recommend whether QT’s cash position or profit position will have the biggest impact on its expansion plans.

Geoff, a sole trader, owns a second-hand book shop. Despite being well advertised and selling reasonably priced products, the shop has difficulty retaining customers.

Which of the following would help Geoff deal with this problem?

A Advertise other second-hand book shops in the area

B Close the shop early on weekdays in the school holidays

C Improve customer service by being friendly and polite

D Offer a free book to new customers who spend over £5

An assistant serves a customer who has come into the post office to top-up their mobile phone credit.

This is an example of:

A after-sales service

B e-commerce

C face to face selling

D telesales