Business Studies
Case-study decisions — Paper 2
- 1.
Noura's Café can either open a second city-centre branch with high rent and heavy footfall, or start a delivery service from its current kitchen with lower fixed costs but strong online competition. Recommend one option using two relevant factors.
[4 marks] · no calculator - 2.
A manufacturer can buy an automated machine for $120,000 that is expected to reduce annual labour costs by $30,000. Evaluate whether the business should buy it, considering the simple payback and one non-financial factor.
[4 marks] - 3.
A tech startup is launching a genuinely new type of wireless earphone with no direct competitors yet. It can launch at a high price to target early adopters, or a low price to build market share quickly before competitors arrive. Recommend one pricing strategy using two relevant factors.
[3 marks] · no calculator - 4.
A new clothing retailer can rent a shop on a busy high street with high rent and heavy footfall, or a cheaper unit on the edge of town with ample parking but far less passing trade. Recommend one location using two relevant factors.
[3 marks] · no calculator - 5.
A profitable business needs $40,000 to buy extra stock for a busy season. It can use its own retained profit, or take out a short-term bank loan. Recommend one option using two relevant factors.
[3 marks] · no calculator - 6.
A business needs a new supervisor. It can promote and train a junior employee who already knows the business well, or hire an experienced supervisor from outside at a higher salary. Recommend one option using two relevant factors.
[3 marks] · no calculator - 7.
A successful independent restaurant owner wants to expand to a second city. She can open a second restaurant herself, keeping full control, or sell a franchise to an experienced local operator. Recommend one option using two relevant factors.
[3 marks] · no calculator - 8.
A clothing company can buy fabric from a cheaper overseas supplier with poor working conditions, or a more expensive supplier that is independently certified for fair labour practices. Evaluate which supplier the company should choose.
[4 marks] · no calculator - 9.
A manufacturer currently has 5% of its products returned as faulty, costing $25,000 per year in refunds and replacements. It could spend $15,000 per year on a stricter quality control process expected to cut faults to 1%. Evaluate whether this investment is worthwhile.
[4 marks] - 10.
A small business with a limited marketing budget can pay a popular social media influencer to promote its product, or buy an advertisement in the local newspaper. Recommend one option using two relevant factors.
[3 marks] · no calculator - 11.
A growing manufacturer has outgrown its current premises. It can upgrade its ageing machinery to produce more in the same space, or move to a larger rented premises and keep the existing machinery. Recommend one option using two relevant factors.
[3 marks] · no calculator - 12.
A business has one very successful product that generates almost all of its profit. Discuss whether it should invest in developing a second, related product rather than focusing entirely on its existing one.
[4 marks] · no calculator