Justify

Question 1

Open a second shop

Answer 1

market growing so demand for second shop, already had success so can replicate in new shop, larger geo area so more market and sales etc however high costs such as overheads might have to take loan, interest etc

Question 2

Option 2

Answer 2

e commerce is large market, 24/7, global market, but might want to try product in person and stuff so could be negative

Question 3

Option 1: introduce a digital payment system e.g., PayPal

Answer 3

more convenient, increase potential customers, 24/7 and different currencies so remove restrictions, but lots of maintenance so installing etc has costs also security issues

Question 4

hold online meetings using digital communication.

Answer 4

easy to discuss and stuff, can have lots of different people so remove geo barrier, but difficult to communicate sometimes with physical things

Question 5

investing in new machinery

Answer 5

machinery increases productivity as quicker than employees, more products in less time so lower average cos of product, can keep price and more profit or lower price and more sales with competitive advantage, however high initial costs, also handmade might add quality

Question 6

Employing more staff

Answer 6

continue using existing production methods, flexible and handmade is quality feature, but if want to expand may have to use machinery

Question 7

obtaining a bank loan

Answer 7

• Option 1, external source so can use retained profit later, established, and successful so can take loan, can invest further etc however costs and stuff so lower profit margins, also bank might be sceptical

Question 8

Crowd funding

Answer 8

crowdfunding has no interest so costs low and more beneficial, less financial risk, also allows promotion, however, might not be able to get enough money if unexpected finances arise

Question 9

increase its range of own brand clothing

Answer 9

more people wear clothes, so distinctive logo seen and promotional, brand awareness increases, but goes away from main aim of business and so diverts customer attention

Question 10

Open a second shop

Answer 10

can move into new area, wider market, increase brand awareness, unique features of shop can be replicated, and there is already a demand, but overhead costs etc

Question 11

Buying a franchise

Answer 11

• less risk, brand name already establish, stability

- can’t make decisions, lack of independence, negative customer service blah blah blah