NSL is a business located in country X. It makes food products such as bread and breakfast cereals. NSL applies lean production in its factory. Keeping quality high matters. NSL imports 15% of its raw materials. Movements in country X’s exchange rate may influence businesses that import raw materials. NSL’s Marketing Manager understands the business should react to shifts in consumer spending patterns. She also knows that market research can be used to support business decisions.
(a)[2]
Identify one effect on businesses which import raw materials for each of these exchange rate changes in country X. Depreciation. Appreciation.
(b)[2]
Identify two reasons why consumer spending patterns may change.
(c)[4]
Outline two reasons why quality is important for NSL.
(d)[6]
Explain two benefits to NSL of using lean production.
(e)[6]
Explain two methods of market research a business could use to help make business decisions. Which method is likely to be the best for a manufacturing business to use? 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: “Depreciation makes imports more expensive or dearer” …