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Icecreams R Us exclusively delivers ice-cream to homes in Newcastle - HSC - SSCE Business Studies - Question 25 - 2020 - Paper 1
Question 25
Icecreams R Us exclusively delivers ice-cream to homes in Newcastle. To increase market share, they are negotiating with a major service station chain, Eucafels Ltd,... show full transcript
Worked Solution & Example Answer:Icecreams R Us exclusively delivers ice-cream to homes in Newcastle - HSC - SSCE Business Studies - Question 25 - 2020 - Paper 1
Step 1
describe TWO physical distribution issues that the business needs to consider in the delivery of their product
Answer
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Transport Issues: Efficient transport is crucial for maintaining the cold chain of ice-cream deliveries. Icecreams R Us must ensure that they have a reliable transportation method equipped with refrigerated vehicles to prevent melting and spoilage during transit.
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Warehousing Issues: Proper warehousing facilities are necessary to store ice-cream before distribution. The warehouse needs to maintain an appropriate temperature to ensure product quality, while also managing inventory levels to avoid stock shortages or overstock.
Step 2
justify ONE promotional strategy the business could use
Answer
A compelling promotional strategy would be to leverage local marketing and partnerships. By collaborating with Eucafels Ltd's outlets, Icecreams R Us can create co-branded advertising campaigns highlighting the availability of their ice-cream. This can include joint promotions and in-store displays that attract customers and create awareness about the product being sold at Eucafels locations.
Step 3
recommend possible changes the business could make to their operations processes to address the volume and quality concerns of Eucafels Ltd
Answer
To address volume and quality concerns, Icecreams R Us should implement more robust production scheduling and quality control measures.
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Gantt Charts for Scheduling: Utilizing Gantt charts can enhance transparency in production timelines, ensuring that adequate volume is produced in a timely manner. This will facilitate better planning and coordination with Eucafels Ltd.
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Quality Monitoring Processes: Establishing regular quality checks at various stages of production can help maintain product quality. This may include testing batches for consistency and flavor to meet the expectations set forth by Eucafels Ltd.