WFG is a private limited company based in country X. It owns 120 supermarkets, and 20 of these are run as franchises. One of WFG’s aims is to expand by launching 30 additional shops within the next 18 months. The Managing Director said: ‘Market research shows that fewer people are going to the local markets each day to buy food. It is important for us to set prices at the correct level.’ The Managing Director is considering whether new technology should be introduced into the business.
(a)[2]
Define the term ‘market research’.
(b)[2]
State two objectives a business might have other than expansion.
(c)[4]
State four factors a business should think about when setting the price of a product.
(d)[6]
Explain two factors WFG should weigh up when deciding whether to introduce new technology into the business.
(e)[6]
Do you believe selling franchises is a better way for a retail business to grow than opening more of its own shops? 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: “Process of collecting, analysing and interpreting information about the market” …