Feb/March 2021

RJJ makes women’s shoes. It markets the shoes to a niche market through e-commerce. RJJ is a public limited company, so its shareholders enjoy limited liability. The Managing Director is intending to grow the business. RJJ could acquire a competitor. Profit fell by $50 000 last year. The Finance Director must choose a source of finance to pay for the expansion.

Enterprise, business growth and size

ABA operates short-haul flights across 60 countries. It is a multinational company headquartered in country X. ABA applies market segmentation when selecting its pricing method. The marketing department is conducting market research to collect feedback on customer experience. ABA is also looking at ways it can help sustainable development.

Marketing, competition and the customer

SMR makes snack food by batch production. The snacks are marketed to people attending sporting events in city Y. To motivate its 3 part-time employees, SMR pays bonuses. The business has had customer complaints about the quality of the snacks. It predicts cash-flow difficulties in the next few months. Table 3.1 contains an extract from this cash-flow forecast.

Cash-flow forecasting and working capital

SCT is a small firm that makes handmade tables. SCT employs 50 trained workers. The Operations Manager adopts an autocratic leadership style when decisions are taken. Some of SCT’s employees are demotivated, and the business has a high labour turnover rate. SCT plans to move to a new factory in the same country.

Motivating employees

Explain two advantages and two disadvantages associated with being a sole trader.

Types of business organisation

Explain two ways Saanvi can raise the added value of ST products.

Marketing strategy

Explain two advantages to ST of employing staff who are highly motivated.

Recruitment, selection and training of employees

Explain four reasons why high quality matters to ST.

Economic issues