paper 1

• share price increased

  if performance increases

  lead to increase in desire to purchase a share

  results to increase in demand for shares

  leads to rise in share price
• Benefit of budget to new business (4)

  budget is financial plan for future considering costs, rev and prof

  be able to focus on controlling cash expenditure so costs don’t go above budget

  allows to plan how much they can spend/dont overspend

  Important if objective is to survive
• Analyse market map (6)

  market mapping is using graph to plot competitors products to identify gap in market and to also understand their behaviours

  In this map, ample products in high quality&price

  gaps suggest less likely to be direct competition

  therefore impacts as business may choose to increase levels of output to fill in gaps in market
• BZT Ltd (9)

  • Increase inventory = more branded goods available in store = reduces complains from customers = improvement in online reviews = improve reputation = can increase price
  • because increase = could negotiate discounts with suppliers = reduce cost of sales = increase gross profit margin
• BZT price match (16)

  • Dean sees pm as tradition & believes business widely recognised for it = if removed may lose some customers = business is already having higher cost than online competitors = if customers lost = revenue & profit lost = can’t pay costs
  • But bzt already successful with older demographic who aren’t price sensitive hence PED being -0.4 , and will find other usps appealing eg support service which o lime retailers don’t offer
  • Despite increase cost, right decision
• Napara plc (9)

  • data shows poor productivity in factory meaning cost per unit will be high = perhaps bcs of low motivation, there’s a high absenteeism = impacts price as they can increase to actually break even
  • evidence shows lead time for car is much shorter than rivals = customers willing to pay higher prices to get hands on car more quickly
• Napara include employees (16)

  • staff have poor motivation & distrust leading to poor performance in particular safety decisions = if employees involved better decisions might be made on safety = increase motivation = in turn improve ethical reputation of business by removing bad headlines = customers want high quality = won’t happen unless staff motivated
  • however shareholders want to launch new cars as quick as possible = if staff involved decisions & consulting may slow down process = may lead to competitor disadvantage