Business 0450 · IGCSE · Business objectives and stakeholder objectives
Business objectives and stakeholder objectives — practice question
SWQ operates 200 clothing shops in country A. It buys all inventory from 3 local clothing manufacturers. The Marketing Director must decide whether to switch suppliers. SWQ could source inventory from country C, a low cost country. He showed the newspaper article in Figure 2 to the other directors. He said: ‘Read this newspaper article. We serve a mass market and our customers expect low prices. Switching suppliers to manufacturers in country C would affect our stakeholders.’
Figure 2: Newspaper article. The article is headed ‘Factory life in country C’ and says the following: ‘You can see why many retailers are buying from country C. 15-hour days for wages of $2 a week. A spokesperson for one pressure group said: ‘Today I saw 8-year-old children sewing buttons onto suits and it is legal in this country.’’
(a)[2]
What does the term ‘pressure group’ mean?
(b)[2]
Identify two advantages to a business from selling to a mass market.
(c)[4]
Identify two stakeholder groups of SWQ. Explain one likely objective for each stakeholder group.
(d)[6]
Identify and explain two suitable methods of communication SWQ could use with manufacturers in country C if it decided to purchase supplies from them.
(e)[6]
Do you think SWQ should begin purchasing its products from country C? Justify your answer.
Worked solution & mark scheme
This 20-mark question has a full step-by-step worked solution and mark scheme. One marking point: “A body of people sharing a common interest who take action to influence business or government decisions” …