Stakeholders & their objectives

Text 2 _{Adapted from www.denbypottery.com/all-about-denby?srsltid=AfmBOoqCmocamsMH7YokKTzrUcPD76_Yb_lZHqS-OTu8re8Rckdj-bKS and rocketreach.co/denby-pottery-company-ltd-profihttps://nohat.cc/f/common-daisy-clip-art-flower-clip-art/6481725316136960-201812162124.htmlle_b5d79652}Denby Pottery Company Ltd (Denby)

State two methods of selecting new employees.

Explain three reasons why Denby trains its production employees.

Analyse one advantage for Denby of using price skimming.

Analyse one impact on Denby of a shareholder objective.

Analyse one impact on Denby of a customer objective.

Recommend whether Denby should focus more on the objectives of shareholders or the objectives of customers. Give a reason for your answer.

A crisp manufacturer is considering shortening its supply chain.

What is most likely to encourage the crisp manufacturer’s shareholders to vote for this course of action?

A The ability to recall unpopular flavours

B The chance to increase the cost of ingredients

C The opportunity to increase risks to reputation

D The possibility of gaining high financial rewards

What is a benefit to the local community of a nearby carpet factory extending its operating hours?

A A wider choice of carpet designs will be available

B Increased road congestion from more lorries delivering textiles

C More job opportunities will be created

D The business will pay higher taxes

What impacts are a customer boycott most likely to have on a business?

A External growth, reduced profit, increased dividends

B Fewer customers, reduced profit, increased market share

C Improved brand image, more customers, increased profit

D Worsened reputation, lower sales, reduced profit

Text 3

Primark Ltd

Primark Ltd is a fashion retailer that sells clothing and homeware at prices lower than most other retailers. The company is aware of the importance of consumer law and of having low-cost suppliers.

Primark Ltd started to sell its products online in 2022. After changes in buying habits and pressure from customers, in 2022 Primark Ltd launched an online click and collect service for shoppers.

Primark Ltd is very aware of the need to have ethical suppliers. The following ethical factors are among those important to Primark Ltd:

• giving clothes a longer life by using material from sustainable sources

• encouraging its supply chain to pay a living wage and look after the health and well-being of their workers.

Identify one factor which can affect the quality of a business’ products.

Analyse one impact of consumer law on Primark Ltd.

Analyse one benefit for Primark Ltd of having low-cost suppliers.

Analyse one advantage and one disadvantage to Primark Ltd of offering an online click and collect service for shoppers.

Recommend whether Primark Ltd should continue to offer an online click and collect service for shoppers.

(e*) Evaluate whether Primark Ltd’s use of ethical suppliers comes into conflict with its shareholders’ objectives.

Text 1

Nina’s Knitting Supplies

Nina runs a successful business selling knitting wool and sewing products. She opened her first shop 15 years ago. The business has grown organically and now sells products from 10 shops and a website. Nina uses market segmentation to target customers. Nina employs 80 people. She works hard to meet the shared objectives of her employees, as well as external stakeholder groups such as customers, suppliers, lenders and the local community.

Nina produces a weekly update that is sent by email to all employees every Friday. The updates contain information about the future development of the business, plus other stories of interest to employees. Recent stories include congratulating an employee on the birth of a child and the charity fundraising activities of one shop.

Nina plans to develop the business further over the next five years, especially as knitting is becoming an increasingly popular pastime. This has led to more competitors entering the market.

Explain one way that a business can segment its market.

Explain how the objectives of three external stakeholder groups can be satisfied by Nina’s Knitting Supplies.

Analyse one likely reason why Nina sends a weekly update to her employees.

Identify two methods of external growth that a business could use.

Evaluate whether or not Nina’s Knitting Supplies should continue to grow organically.

The directors of a public limited company have decided to reduce the size of the workforce to increase profits.

Which stakeholder is most likely to benefit from this decision?

A Customers

B Employees

C Owners

D The local community

Identify one likely objective of an employee.

Analyse two disadvantages for Shinz Ltd of operating as a private limited company.

Tom is considering whether to use competitor pricing or price skimming for the new ‘resin polish’ service.

Analyse one advantage for Shinz Ltd of using each pricing method.

Competitor pricing

Price skimming

Recommend which of the two pricing methods Shinz Ltd should use. Give reasons for your answer.

* Evaluate, with reference to the data in Text 3, whether Shinz Ltd should merge with

Littlelong Motors Ltd.

17

Text 2

Greggs

Greggs is a modern ‘food-on-the-go’ retail brand. It specialises in selling sandwiches, cakes, pastries and pies. Most of these are made by Greggs, using raw materials such as flour, meat and yeast. The company opened its first bakery 80 years ago and has since grown significantly. It currently has 20 000 employees. Greggs’ aim is to become the customer’s favourite for ‘food-on-the-go’ in the UK. This sector is growing quickly and is forecast to be worth £23.4 billion by 2024 (up from £18.5 billion in 2019).

According to The Vegan Society, the number of people in the UK choosing a vegan diet has increased during recent years (see Fig. 1).

The number of vegans in the UK

Using the market data, Greggs responded to this change by launching vegan sausage rolls in January 2019. The publicity generated helped Greggs’ total sales to increase by 9.6% in its next seven weeks of trading. Following this success the business launched other products, including vegan doughnuts and vegan steak bakes, based on consumer demand.

Managers at Greggs constantly monitor changes in consumer tastes. Similarly, they keep up-to-date with changes in employment law. Greggs’ managers also take pride in the business being named one of the happiest places to work in the UK. Greggs offers many ways of working, including part-time roles.

Explain one way that employment law may affect Greggs’ employment of workers.

Other than the government, explain one external stakeholder’s influence on Greggs.

Explain the purpose of planning business activity for Greggs’ managers.

Part-time is one way of working.

State two other ways of working.

Analyse one benefit for Greggs of using market data to create new products.

The managers of Greggs are considering two options for business growth.

Analyse one benefit for Greggs of business growth using each of the following methods.

Merger with a flour producer

Takeover of a rival ‘food-on-the-go’ retail brand

Recommend which of the two methods of business growth Greggs should use. Give reasons for your answer.