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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
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Human Resources: The staff who prepare and serve the juice are essential transforming resources, as they are directly involved in the operation of the juice bar. Their skills and efficiency play a crucial role in the quality of service.
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Facilities: The equipment and physical space used for juice preparation, such as blenders, refrigerators, and service counters, are also transforming resources. These facilities enable the actual production and sale of the juice.
Step 2
How does variety impact the transformation process of this business?
Answer
Variety refers to the range of products offered by the business, which, in this case, includes different types of juices. Having a wide variety allows the juice bar to cater to diverse customer preferences, enhancing customer satisfaction.
The variation in the transformation process occurs through:
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Increased Complexity: Different recipes may require unique preparation methods and varying equipment, leading to more intricate operational procedures.
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Resource Allocation: More variety may mean staff must receive training on different juice-making techniques and ingredients, which can strain resources like training time and operational efficiency.
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Inventory Management: A broader variety requires careful inventory management to ensure fresh ingredients are available for all juice options while minimizing waste.
Overall, this variety improves customer attraction and can potentially increase sales but necessitates more complex operational management.
Step 3
Why might this business be reluctant to become more socially responsible?
Answer
This business may hesitate to adopt socially responsible practices for several reasons:
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Cost Implications: Initiating eco-friendly practices, such as using biodegradable straws or sustainable packaging, may lead to increased operational costs that can threaten profit margins. The juice bar operates in a competitive market where price adjustments might be unfavorable.
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Supplier Constraints: Sourcing environmentally friendly materials could require finding new suppliers, which may introduce delays and complications in the supply chain, impacting business efficiency.
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Impact on Pricing: Transitioning to socially responsible practices may necessitate raising prices, which could deter price-sensitive customers and potentially reduce sales volumes.
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Limited Resources: Smaller businesses might lack the financial and human resources to implement comprehensive sustainability initiatives effectively.