Photo AI
A juice bar is operating in a shopping centre - HSC - SSCE Business Studies - Question 24 - 2019 - Paper 1
Question 24
A juice bar is operating in a shopping centre. The juice is served to customers in plastic cups with plastic straws. The high sales volume and quick turnover demand ... show full transcript
Worked Solution & Example Answer:A juice bar is operating in a shopping centre - HSC - SSCE Business Studies - Question 24 - 2019 - Paper 1
Step 1
Identify TWO transforming resources used in this business.
Answer
In the context of the juice bar, two transforming resources include:
- Human Resources: The staff members who interact with customers and prepare the juices are essential, as they ensure quality and efficiency in service delivery.
- Facilities: The physical space and equipment used for preparation and serving, such as blenders, refrigerators, and countertops, also play a crucial role in the transformation process.
Step 2
How does variety impact the transformation process of this business?
Answer
Variety refers to the range of products offered by the juice bar, significantly impacting the transformation process in several ways:
- Wider Audience Engagement: Offering a variety of juices attracts different customer segments, increasing foot traffic.
- Increased Complexity: With more options, the bar must equip itself with diverse ingredients and maintain various recipes, leading to increased training requirements for staff to manage this complexity.
- Operational Efficiencies: More variety demands effective inventory management to ensure that ingredients are always available without overstocking, which can tie up capital and space.
- Profitability Considerations: While variety can draw in more customers, it also means potentially higher operational costs, so the business must balance these factors to maintain profitability.
Step 3
Why might this business be reluctant to become more socially responsible?
Answer
There are several reasons why the juice bar might hesitate to adopt more socially responsible practices:
- Increased Costs: Transitioning to environmentally friendly products or packaging, such as biodegradable straws, could lead to higher operational costs, impacting profit margins.
- Supplier Limitations: The business may struggle to find suppliers who can meet environmental standards without compromising quality or increasing costs.
- Price Sensitivity: Customers may be reluctant to pay higher prices for socially responsible options, leading to a decrease in sales volume, which is critical given the high turnover rate.
Overall, while the business may recognize the importance of social responsibility, these practical implications create significant hesitation.