P1

• Ways which decentralising increases revenue (5)

  may allow local outlets to decide on menus & other product choices = suit needs of customers = meet customer expectations = more willing to go to that restaurant
• analyse causes of changes in profit margins

  • gpm increase by 5% - likely bcs of savings made in raw materials due to buying in larger quantities = with higher sales volume rockall gained greater purchasing discounts therefore raised gross profit margins
  • operating prof margin fallen by 7% = due to more being spent on management staff = staff employed in middle management add to fixed costs & reduced opm
• Advice rockall whether to increase investment (16)

  market for sports is larger in terms of market size than jewellery.by expanding in market, Rockall would have larger potential customer base & maybe larger sales volumes.but market share shown in bostonm shows their market share falling & sales dropped Rockall could improve its market share this could increase sales revenue.but market is already dominated by large multinationals.does not appear they are in a very good position, given their branding, to exploit this market at present. .
• eval for rockall 16

  expanding in shoe market, require Rockall to spend on advertising &branding which is something they currently avoid.its risky given established multinational brands already existing, & owners do not appear to want to take 'excessive risks'