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Which one of the following is a stage in the sales process? Select one answer - Edexcel - GCSE Business - Question 3 - 2020 - Paper 1
Question 3
Which one of the following is a stage in the sales process? Select one answer. A. Product knowledge B. Product quality C. Production D. Productivity In 2018 a bu... show full transcript
Worked Solution & Example Answer:Which one of the following is a stage in the sales process? Select one answer - Edexcel - GCSE Business - Question 3 - 2020 - Paper 1
Step 1
Step 2
Using the information in Figure 1, calculate, to 2 decimal places, the percentage of total sales revenue made by product X in 2018. You are advised to show your workings.
Answer
Let’s denote the total sales revenue as and the revenue from product X as . The percentage of total sales revenue made by product X can be calculated using the formula:
ext{Percentage} = rac{R_X}{R_{total}} imes 100
After obtaining the values from Figure 1, substitute them into the formula and calculate the result to two decimal places.
Step 3
Explain one drawback to a business from differentiating its product.
Answer
One drawback of product differentiation is that it can lead to increased costs for the business. Developing unique features, conducting extensive market research, and marketing can require significant investment. If the perceived value does not meet consumer expectations, the business may not recoup these expenses, leading to lower profit margins.
Step 4
Explain one impact on a business from increased globalisation.
Answer
Increased globalisation often leads to greater competition for businesses as they now face competitors from around the world. This can force local businesses to innovate and improve efficiency to maintain their market position but can also lead to reduced market share if they are unable to keep up.
Step 5
Discuss the impact on a business of becoming a public limited company (plc).
Answer
Becoming a public limited company allows a business to raise significant capital by issuing shares to the public. This increased capital can be used for expansion or debt reduction. However, it also means that the original owners may lose some control over the company because shareholders will have a say in major decisions. Additionally, the company will face increased scrutiny and regulatory requirements, which can add complexity to its operations.