Business 0450 · IGCSE · Enterprise, business growth and size
Enterprise, business growth and size — practice question
DSY is a private limited company. It manufactures washing machines and cleaning equipment. The Managing Director wants DSY to move into a different market. He intends to spend $2bn on developing electric cars. Competition in the electric car market is intense. This market is expanding very quickly. A leading pressure group has pointed out the environmental issues caused by non-electric cars. The Managing Director is aware that key choices about the production method and the new car’s brand image still need to be decided.
(a)[2]
Define the term ‘pressure group’.
(b)[2]
Define the term ‘brand image’.
(c)[4]
Outline two advantages to DSY of operating as a private limited company.
(d)[6]
Explain two factors DSY should take into account when choosing a suitable production method for the new product.
(e)[6]
Do you think entering a growing market where there is a lot of competition is the best way for a business to expand? 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: “Group or organisation with a shared interest that acts to influence business decisions or government policy” …