Read the scenario below and answer the questions that follow - NSC Business Studies - Question 2 - 2017 - Paper 1
Question 2
Read the scenario below and answer the questions that follow.
Martha & Jane Furniture (MJF) specialise in selling office furniture. The profitability of the busines... show full transcript
Worked Solution & Example Answer:Read the scenario below and answer the questions that follow - NSC Business Studies - Question 2 - 2017 - Paper 1
Step 1
Quote THREE challenges for MJF from the scenario above.
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Answer
The profitability of the business has decreased due to high inflation rates.
Low income levels of customers.
MJF had to pay a hefty fine because they did not renew their trading licence in time.
Step 2
Identify the PESTLE element that links to EACH challenge, as quoted in QUESTION 2.3.1.
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Answer
Economic - The decrease in profitability due to inflation rates.
Social - The low income levels of customers affecting sales.
Legal - The fine imposed for not renewing their trading licence.
Step 3
Recommend ONE way in which MJF can deal with EACH challenge, as identified in QUESTION 2.3.1.
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To address high inflation, MJF could reduce prices or find cost-saving measures to maintain customer purchases.
To combat low income levels, MJF might consider offering promotional discounts or flexible payment plans.
To avoid legal penalties in the future, MJF should implement a strict reminder system for trading licence renewals.
