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Greggs is a modern 'food-on-the-go' retail brand - OCR - GCSE Business - Question 17 - 2021 - Paper 1
Question 17
Greggs is a modern 'food-on-the-go' retail brand. It specialises in selling sandwiches, cakes, pastries and pies. Most of these are made by Greggs, using raw materia... show full transcript
Worked Solution & Example Answer:Greggs is a modern 'food-on-the-go' retail brand - OCR - GCSE Business - Question 17 - 2021 - Paper 1
Step 1
Explain one way that employment law may affect Greggs' employment of workers.
Answer
Employment law ensures that all 20,000 employees (APP) are not discriminated against. This means that Greggs must adhere to laws regarding equal opportunities in recruitment, preventing discrimination based on characteristics such as age, gender, disability, race, or sexual orientation. By complying with these laws, Greggs can attract a diverse workforce which can enhance creativity and productivity in their operations.
Step 2
Other than the government, explain one external stakeholder’s influence on Greggs.
Answer
One key external stakeholder influencing Greggs is its customers. Customer preferences can greatly affect product offerings; for instance, the increase in vegan diets has prompted Greggs to develop vegan options. By responding to customer demand, Greggs can maintain its competitiveness in the market and enhance customer loyalty.
Step 3
Explain the purpose of planning business activity for Greggs' managers.
Answer
The purpose of planning business activity includes understanding market growth, setting long-term objectives, and ensuring that Greggs can adapt to changes such as increasing consumer demand for vegan products. Effective planning helps managers allocate resources efficiently, which enhances operational performance and ensures the business aligns with its strategic goals.
Step 4
Step 5
Analyse one benefit for Greggs of using market data to create new products.
Answer
Using market data allows Greggs to identify trends in consumer preferences. For example, recognizing the rise in demand for vegan options helps Greggs tailor its new products to meet the needs of its target market. This can lead to increased sales and customer satisfaction, which is crucial for maintaining its position as a market leader.
Step 6
Analyse one benefit for Greggs of business growth through merger with a flour producer.
Answer
Merger with a flour producer can provide Greggs with better control over ingredient costs, ensuring a stable source of quality materials. This integrated supply chain can lower production costs and improve profit margins, allowing Greggs to price its products more competitively and ultimately enhance its market share.
Step 7
Takeover of a rival 'food-on-the-go' retail brand.
Answer
A takeover can significantly increase Greggs' market share and customer base by absorbing a competitor's clients. This move can also lead to operational efficiencies by consolidating resources and reducing redundancies in the supply chain, thereby enhancing profitability in the long run.
Step 8
Recommend which of the two methods of business growth Greggs should use. Give reasons for your answer.
Answer
I recommend that Greggs should pursue the merger with a flour producer. This strategy ensures consistent supply of raw materials, which is critical for maintaining product quality. Additionally, this approach allows Greggs to better manage costs, which can enhance profitability and give the company a competitive advantage. Conversely, a takeover could lead to complications in integrating operations and might distract from the core business objectives.