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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. 7 (b) Using the information in Table 3, identify the best year for Loco to save any retained profit it may have. 7 (c) Outline... 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 clear goals and objectives for Loco. This would have provided a roadmap to assess financial needs and forecast potential profits, aiding in decision-making.
Step 4
Justify which one of these two options Loco should choose.
Answer
Loco should choose to introduce a digital payment system such as PayPal. This option enhances customer convenience, potentially attracting a larger customer base. By eliminating barriers to purchase, it allows for easier transactions and could lead to increased sales.
Step 5
Evaluate the extent to which Loco will be able to compete with large manufacturers of SUPs.
Answer
Loco faces significant challenges competing against large manufacturers due to their established market presence and economies of scale. However, Loco can differentiate itself by emphasizing quality and customer service. By focusing on niche markets and maintaining strong customer relationships, Loco can carve out a competitive advantage despite the challenges.