Assess the significance of other external influences on the future success of Northfield Cycles. - Edexcel - A-Level Business - Question 2 - 2022 - Paper 3
Question 2
Assess the significance of other external influences on the future success of Northfield Cycles.
Worked Solution & Example Answer:Assess the significance of other external influences on the future success of Northfield Cycles. - Edexcel - A-Level Business - Question 2 - 2022 - Paper 3
Step 1
External Influence: Market Conditions
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Answer
The market conditions, such as consumer demand for bicycles and related products, significantly influence Northfield Cycles' success. A growing interest in cycling, driven by trends in sustainability and fitness, could boost sales. Conversely, economic downturns could reduce disposable income, impacting bike purchases.
Step 2
External Influence: Government Policies
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Answer
Government initiatives such as funding for bike repairs and promotions like 'Cycle to Work' can increase sales opportunities for Northfield Cycles. Policies aimed at reducing pollution and encouraging cycling also support the business model.
Step 3
External Influence: Competition
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Answer
The competitive landscape, including other bike retailers and online platforms, can affect Northfield Cycles. If rivals offer similar products at lower prices or better service, it could threaten market share.
Step 4
External Influence: Economic Trends
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Answer
Economic factors, including inflation and changes in consumer spending patterns, can significantly affect the purchasing power of Northfield's target customers. A strong economy typically results in higher sales, while a recession can lead to decreased customer spending.
Step 5
External Influence: Supply Chain Factors
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Northfield Cycles relies on imported bikes and components. Disruptions in the supply chain, due to geopolitical issues or natural disasters, can impact inventory levels and pricing strategies.
Step 6
Conclusion
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Overall, Northfield Cycles' future success will depend on effectively navigating these external influences. Adaptability and strategic planning in response to market shifts, government policies, competition, economic trends, and supply chain challenges will be crucial.
