Once the recession in country X has ended, Beena is planning to launch a hairdressing business. One possible route is to buy a franchise from an established hairdressing business. Beena has $800 in savings and understands that having enough working capital will be vital for her business. She intends to use market research to guide her decisions. Beena also knows that a market can be divided up in many different ways.
(a)[2]
Define what is meant by ‘recession’.
(b)[2]
Identify two different ways to segment a market.
(c)[4]
Outline two reasons why enough working capital could be important for Beena’s business.
(d)[6]
Explain two possible advantages to Beena of purchasing a franchise.
(e)[6]
Do you think it is always better for a start-up business to rely on primary market research rather than secondary market research when making decisions? 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 time when GDP is falling” …