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7 (a) State one stakeholder of Loco - Edexcel - GCSE Business - Question 7 - 2020 - Paper 1
Question 7
7 (a) State one stakeholder of Loco. (b) Using the information in Table 3, identify the best year for Loco to save any retained profit it may have. (c) Outline on... show full transcript
Worked Solution & Example Answer:7 (a) State one stakeholder of Loco - Edexcel - GCSE Business - Question 7 - 2020 - Paper 1
Step 1
Step 2
Step 3
Outline one way that a business plan could have helped Joe Thwaites when starting Loco.
Answer
Joe could have used a business plan to set the goals and objectives for Loco. This would help him assess financing options and refine the business model, allowing him to strategically counter competition from larger manufacturers.
Step 4
Justify which one of these two options Loco should choose.
Answer
Loco should choose to introduce a digital payment system. This option increases convenience for customers, potentially broadening the customer base, and facilitating sales. Compared to option 2, which limits interaction to virtual communication, a digital payment system directly links to customer transactions and overall sales growth.
Step 5
Evaluate the extent to which Loco will be able to compete with large manufacturers of SUPs.
Answer
Loco may face challenges when competing against large manufacturers due to limited resources and brand recognition. However, its focus on personalized customer service and niche marketing for local customers may help differentiate it. By utilizing effective digital marketing and community engagement, Loco could carve out a loyal customer base that appreciates its unique offerings.