3.1 What is Business?

Question 1

How does Ryanair get cost leadership? (Porters Strategies)

Answer 1

1. It flies to cheaper airports e.g normally flies to a second airport in a city
2. Flight takes off straight away within 3 hours
3. Backloaded its prices, e.g. it may look the cheapest on comparison websites but will charge you to choose a seat add extra bags etc.

Question 2

What book explains Blockbusters franchise struggles

Answer 2

Gina Keating’s book Netflixed

Question 3

What does the book Netflixed explain

Answer 3

it explains that Blockbuster struggled to move into DVD by mail and online streaming because of its franchisees.

Question 4

Name three successful franchises

Answer 4

Mcdonalds
Pizza Hut
Morleys
Wingstop
Subway

Question 5

Impact of competition on Tesco

Answer 5

Tesco experienced falling demand as competiton from Aldi and Lidl rose

Question 6

What’s Aldi’s and Lidl’s market share

Answer 6

Aldi:10.1%
Lidl: 7.6%

Question 7

What did Morrisons have to invest in to stay competitive?

Answer 7

Its website and delivery network

Question 8

What are is the current UK interest rate?

Answer 8

5.25%

Question 9

What is the current UK inflation rate?

Answer 9

3.2%

Question 10

Give 3 examples of companies implementing sustainability?

Answer 10

M&S sustainability A net zero by 2040
LLoyds wants to be net zero by 2050
LLoyds provide 13bn of green sustainable finance provided to business

Question 11

What has caused less net inward migration in the UK?

Answer 11

Brexit