A bathroom products business cannot sustain the production of their current range - HSC - SSCE Business Studies - Question 16 - 2020 - Paper 1
Question 16
A bathroom products business cannot sustain the production of their current range. A consultant has advised the business to reduce the product range.
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Worked Solution & Example Answer:A bathroom products business cannot sustain the production of their current range - HSC - SSCE Business Studies - Question 16 - 2020 - Paper 1
Step 1
Evaluate Actual vs Planned Results for Coconut Handwash
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Answer
For the Coconut Handwash:
Actual Jan-Jun: 7,500, Planned Jan-Jun: 7,500 (Meeting target)
Actual Jul-Dec: 10,000, Planned Jul-Dec: 9,000 (Exceeding target)
Result: This product is performing well.
Step 2
Evaluate Actual vs Planned Results for Lavender Bodywash
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Answer
For the Lavender Bodywash:
Actual Jan-Jun: 8,000, Planned Jan-Jun: 8,500 (Below target)
Actual Jul-Dec: 9,500, Planned Jul-Dec: 9,500 (Meeting target)
Result: Mixed performance, but appears to be acceptable.
Step 3
Evaluate Actual vs Planned Results for Blueberry Handcream
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Answer
For the Blueberry Handcream:
Actual Jan-Jun: 7,000, Planned Jan-Jun: 6,000 (Exceeding target)
Actual Jul-Dec: 7,500, Planned Jul-Dec: 8,000 (Below target)
Result: Struggles in the second half despite good performance in the first half.
Step 4
Evaluate Actual vs Planned Results for Peppermint Bath Salts
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Answer
For the Peppermint Bath Salts:
Actual Jan-Jun: 8,000, Planned Jan-Jun: 7,000 (Exceeding target)
Actual Jul-Dec: 8,500, Planned Jul-Dec: 10,000 (Below target)
Result: Performance decline in the second half.
Step 5
Determine which product to delete
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Answer
Comparing all products:
The Lavender Bodywash has mixed performance but can still meet its targets.
The Blueberry Handcream has inconsistent results and underperformance in the end year.
The Peppermint Bath Salts showed strong first half but underperformed in the latter half.
Conclusion: The Blueberry Handcream should be considered for deletion due to its inconsistency and underperformance, making it the least viable option.
