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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: One of the primary issues Icecreams R Us must consider is the reliability and efficiency of their transport logistics. This involves ensuring that ice-cream is delivered in a timely manner to Eucafels Ltd outlets without delays. Factors such as route optimization, vehicle maintenance, and driver schedules are crucial for maintaining product quality and adhering to delivery timelines.
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Warehousing Conditions: Another important distribution issue is the warehousing facilities used to store ice-cream before delivery. The temperature and storage conditions must be meticulously controlled to prevent spoilage. Icecreams R Us needs to ensure that their storage facilities meet health and safety regulations while also maintaining optimal temperature for proper ice-cream storage.
Step 2
Justify ONE promotional strategy the business could use
Answer
A suitable promotional strategy for Icecreams R Us is to implement a local advertising campaign. This could include high visibility advertisements in local magazines and newspapers, as well as the use of social media platforms to create awareness. By highlighting the unique flavors and quality of their ice-cream, they can effectively target local consumers and create excitement around the partnership with Eucafels Ltd, thus driving foot traffic to these outlets.
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 the volume and quality concerns, Icecreams R Us should consider the following operational changes:
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Enhanced Quality Control Processes: Implement regular quality checks and standards adherence during production to ensure a consistent product quality. This includes training staff in quality assurance protocols and establishing check points throughout the production and packaging processes.
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Demand Forecasting Methods: Introduce technology-driven demand forecasting systems to better predict sales trends. This will help in planning production and inventory levels effectively, ensuring they can meet the demand from Eucafels Ltd without compromising on quality.