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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 may affect Greggs’ employment of workers by ensuring that all 20,000 employees (APP) are not discriminated against. This means that Greggs must comply with laws regarding equality and discrimination, such as hiring practices that do not favor one gender, ethnicity, or religion over another, which can help create a diverse and inclusive workplace.
Step 2
Other than the government, explain one external stakeholder’s influence on Greggs.
Answer
One external stakeholder that influences Greggs is its customers. Customer preferences for vegan options have led to Greggs launching vegan products such as vegan sausage rolls. This change reflects the growing vegan trend and customer demand, as indicated by the data from The Vegan Society.
Step 3
Explain the purpose of planning business activity for Greggs’ managers.
Answer
The purpose of planning business activity for Greggs’ managers is to outline the company’s objectives and strategies. This helps ensure efficient resource allocation, as well as timely responses to market trends and customer preferences. By planning, managers can be organised and set long-term goals that align with consumer interests.
Step 4
Step 5
Analyse one benefit for Greggs of using market data to create new products.
Answer
Greggs may use market data to identify trends in the market, such as the fourfold increase in people choosing a vegan diet. This will help Greggs’ managers to introduce the right products to the market, increasing profit by meeting consumer demand effectively.
Step 6
Analyse one benefit for Greggs of business growth through merger with a flour producer.
Answer
Merging with a flour producer may help Greggs reduce material costs or secure a stable supply of ingredients. This could ensure consistency in product quality and reduce reliance on external suppliers, ultimately leading to cost savings and improved operational efficiency.
Step 7
Takeover of a rival 'food-on-the-go' retail brand.
Answer
Taking over a rival 'food-on-the-go' retail brand could increase Greggs' market share and customer base. By absorbing their operations, Greggs may enhance its product offerings and expand its market presence, leading to increased sales and profitability.
Step 8
Recommend which of the two methods of business growth Greggs should use. Give reasons for your answer.
Answer
Greggs should consider merging with a flour producer. This method provides a secure supply chain for vital ingredients and helps reduce costs associated with purchasing flour from external sources, which can be variable in price. This stability is crucial in maintaining product quality and ensuring they meet consumer demand effectively.