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7 (a) Define the term pressure group - Edexcel - GCSE Business - Question 7 - 2020 - Paper 1
Question 7
7 (a) Define the term pressure group. (1) (b) Using the information in Figure 4, identify the year with the smallest percentage change in Iceland's sales revenue. ... show full transcript
Worked Solution & Example Answer:7 (a) Define the term pressure group - Edexcel - GCSE Business - Question 7 - 2020 - Paper 1
Step 1
Step 2
Step 3
Outline one factor that could influence Iceland's choice of pricing strategy for its range of new products.
Answer
One factor that could influence Iceland's pricing strategy is the level of competition in the grocery market. With many competitors, Iceland may need to adopt a competitive pricing strategy to attract customers.
Step 4
Justify which one of these two options Iceland should choose.
Answer
Iceland should choose to offer permanent contracts. This option will provide employees with job security, which can enhance their motivation and productivity over time. By having a stable workforce, Iceland may also develop better customer service, improving the overall shopping experience. Furthermore, employees may be more loyal and committed to the company, which can lead to lower turnover rates and reduced recruitment costs in the long run.
Step 5
Evaluate whether Iceland is likely to benefit from its decision to ban all plastic packaging on its own-brand products.
Answer
Banning plastic packaging could benefit Iceland by enhancing its unique selling proposition, appealing to environmentally conscious consumers. However, the transition to alternative packaging may increase costs initially. While this may raise prices, it could also attract more shoppers who value sustainability. Yet, if the costs rise too significantly, it could harm profit margins. Therefore, while there are potential benefits in terms of brand image and customer loyalty, there must be a careful assessment of the financial implications.