Feb/March 2025

Amir and Carla work as business partners. They own a luxury hotel that operates in a niche market. The business has a short hierarchical structure. To keep their 5 employees highly motivated, Amir and Carla apply Herzberg’s theory of motivation. They are thinking about opening a second hotel in another city. If they choose to expand, they will need to identify an appropriate source of finance. Secondary market research can help a business judge whether expansion is a good idea.

Market research

Rachel’s business makes and sells chocolate bars. Quality matters. Rachel is a sole trader who received government help when she set up her business. The business works in a competitive market. Rachel is thinking about ways to raise sales of her best-selling product. She is also planning to launch a new chocolate bar. Rachel knows that choosing the right pricing method for a new product is important.

Marketing strategy

TJK makes candles. Helping sustainable development matters to TJK. The business carries out batch production in its factory in country X. TJK’s products are aimed at females aged between 20 and 50 years. The Managing Director is examining TJK’s financial figures. An extract appears in Table 3.1. He is also weighing up the advantages to a business of turning into a multinational company.

Cash-flow forecasting and working capital

SEP operates within the tertiary sector. As a social enterprise, SEP has several aims. It collects used books from libraries and schools, then sells them to customers at a low price. SEP also gives training to its 10 part-time employees. SEP’s manager wants to find out how the introduction of a legal minimum wage could influence a business.

Recruitment, selection and training of employees

All questions are about Charly setting up a new business.

Types of business organisation

Explain two management functions that Charly will use while running her new business.

Location decisions

Explain one advantage and one disadvantage of CR keeping inventory.

Marketing mix

Explain two cash inflows and two cash outflows that are likely to appear in CR’s cash flow forecast for its first year of trading.

Cash-flow forecasting and working capital