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Assess the importance of capacity utilisation during the Commonwealth Games. - Edexcel - A-Level Business - Question 1 - 2022 - Paper 3
Question 1
Assess the importance of capacity utilisation during the Commonwealth Games.
Worked Solution & Example Answer:Assess the importance of capacity utilisation during the Commonwealth Games. - Edexcel - A-Level Business - Question 1 - 2022 - Paper 3
Step 1
Step 2
Application: Examples of Capacity Utilisation
Answer
During the Commonwealth Games, venues must ensure high capacity utilisation to:
- Maximise Revenue: With a large number of spectators, facilities can generate significant income from ticket sales.
- Showcase Local Talent: By having full venues, the games can highlight athletic talent from the region, which benefits the community.
Step 3
Analysis: Reasons for Importance
Answer
High capacity utilisation is important because it allows for:
- Cost Efficiency: When venues are fully utilised, fixed costs such as maintenance are spread over a larger number of attendees, reducing the cost per individual.
- Brand Prestige: Successful high-capacity events enhance the reputation of the Commonwealth Games and the host city, attracting future events and tourists.