Samira runs a profitable takeaway fried-food business. She employs 2 part-time workers. In the previous year, turnover dropped for the first time in 10 years. This happened because competition increased from a well-known franchise. To react, Samira might cut her prices, as the Table 1 data show. Alternatively, she could launch a delivery service. Samira intends to carry out market research. She must choose between secondary research and arranging a focus group with some of her customers.
(a)[2]
What does the term ‘franchise’ mean?
(b)[2]
Calculate Samira’s predicted weekly revenue if she reduced the price of her products.
(c)[4]
Identify and explain two reasons why revenue matters to Samira’s business.
(d)[6]
Identify and explain two factors Samira ought to think about before launching a delivery service.
(e)[6]
Do you think Samira should use secondary research or a focus group to collect market research information? 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 franchisee purchases a licence to run a business using the brand, logo and products of an already successful business” …