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Miles Ahead 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
Miles Ahead 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 expand... show full transcript
Worked Solution & Example Answer:Miles Ahead 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: By using market segmentation, Miles Ahead can target specific customer groups, allowing for tailored marketing strategies. This can lead to higher customer satisfaction and increased sales as the needs of specific groups are better met.
Benefit 2: Market segmentation enables Miles Ahead to identify untapped market opportunities. By understanding distinct segments, the business can introduce new product lines that appeal to different demographics, thereby expanding its customer base.
Step 3
Analyse one benefit for Miles Ahead of Tall organisational structure.
Answer
A tall organisational structure allows for clear lines of authority and supervision. This structure ensures that employees understand their roles within the organization, which can lead to improved accountability and performance as tasks and responsibilities are clearly defined.
Step 4
Analyse one benefit for Miles Ahead of Flat organisational structure.
Answer
A flat organisational structure promotes faster decision-making due to fewer layers of management. This can enhance efficiency and allow employees to respond quickly to market changes, which is essential for a business in a competitive market such as bicycle retail.
Step 5
Recommend which type of organisational structure would be the most appropriate for Nessa to use at Miles Ahead. Give reasons for your answer.
Answer
I recommend a flat organisational structure for Nessa to use at Miles Ahead. This structure would be beneficial because it facilitates rapid communication and decision-making, which is crucial in adapting to customer needs and market trends. Additionally, a flat structure can enhance employee morale and motivation by fostering an inclusive culture where every member feels valued.
Step 6
Examine the best type of business ownership for Miles Ahead in the future.
Answer
The best type of business ownership for Miles Ahead in the future could be a limited liability company (LLC). This structure would protect Nessa’s personal assets from business debts, allowing her to take calculated risks to grow the business. An LLC may also facilitate easier access to funding and investments, which could help Miles Ahead expand further. On the other hand, the ownership might also remain as a sole trader to maintain simplicity in management and operations unless the business experiences significant growth.