FTT operates as a social enterprise. It sells its high quality fair-trade coffee beans to retailers in country P. Ethical behaviour matters to FTT. It gives local people information about micro-finance and training so that they can begin growing beans for FTT to market on their behalf. FTT wants to begin exporting coffee beans because its market research indicates rising demand for coffee in other countries. FTT’s managers must choose an appropriate pricing method for selling the coffee beans in those countries.
(a)[2]
What does the term ‘social enterprise’ mean?
(b)[2]
What does the term ‘micro-finance’ mean?
(c)[4]
Identify and explain two factors that could influence the accuracy of FTT’s market research.
(d)[6]
Identify and explain two ways that acting ethically could benefit FTT.
(e)[6]
Recommend a suitable pricing method for FTT to adopt if it begins selling in other countries. 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: “An organisation that has social aims in addition to seeking to make a profit” …