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Text 3 Miles Ahead is a bicycle retailer which was set up in 2001 by entrepreneur, Reg Patel - OCR - GCSE Business - Question 18 - 2021 - Paper 1
Question 18
Text 3 Miles Ahead is a bicycle retailer which was set up in 2001 by entrepreneur, Reg Patel. Reg started with one shop, but the business has gradually expanded. Th... show full transcript
Worked Solution & Example Answer:Text 3 Miles Ahead is a bicycle retailer which was set up in 2001 by entrepreneur, Reg Patel - OCR - GCSE Business - Question 18 - 2021 - Paper 1
Step 1
Step 2
Analyse two benefits for Miles Ahead of using market segmentation.
Answer
Benefit 1: Targeted Marketing - By segmenting the market, Miles Ahead can tailor their marketing strategies to specific groups. This means advertising can be more effective, reaching consumers who are more likely to purchase specific types of bicycles.
Benefit 2: Improved Customer Satisfaction - Understanding different segments enables Miles Ahead to meet the diverse needs of its customers more effectively. For example, offering specialized bicycles for different age groups or lifestyles can lead to higher customer satisfaction rates and loyalty.
Step 3
Analyse one benefit for Miles Ahead of each of the following organisational structures.
Answer
Tall organisational structure: A tall organisational structure benefits Miles Ahead by providing clear lines of authority and responsibility. This clarity helps employees understand their roles, which can enhance productivity and efficiency.
Flat organisational structure: A flat organisational structure allows for improved communication among employees. With fewer management levels, employees can share ideas more easily, fostering collaboration and innovation.
Step 4
Recommend which type of organisational structure would be the most appropriate for Nessa to use at Miles Ahead. Give reasons for your answer.
Answer
Nessa should consider using a flat organisational structure for Miles Ahead. This structure would promote open communication and quicker decision-making, which can be crucial for responding to market changes rapidly. Additionally, with a smaller team, employees may feel more empowered and engaged, leading to higher levels of job satisfaction and productivity.
Step 5
Evaluate the advantages for Nessa of being a sole trader in the future type of business ownership for Miles Ahead in the future.
Answer
Being a sole trader offers Nessa several advantages, such as having complete control over decision-making and the ability to implement her vision for Miles Ahead without requiring consensus from partners. This autonomy can lead to quicker business adaptations and a personalized approach to customer service. However, sole traders also face challenges, including unlimited liability and the pressure of being solely responsible for business success or failure. Therefore, while the flexibility is advantageous, Nessa must consider the associated risks.