Samira runs a thriving takeaway business selling fried food. She has 2 part-time workers. In the previous year, revenue dropped for the first time in 10 years. This happened because competition increased from a well-known franchise. To deal with this, Samira may reduce her prices, as Table 1 shows. Another possibility is to introduce a delivery service. Samira intends to carry out some market research. She must choose between using secondary research or setting up 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 is important to Samira’s business.
(d)[6]
Identify and explain two factors Samira should think about before she starts a delivery service.
(e)[6]
Do you think Samira should use secondary research or a focus group to collect market research information? Support 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 business arrangement that makes use of the brand names, advertising logos and trading methods of an already successful business. The franchisee purchases the licence to run this business from the franchisor.” …