MAY ASSESMENT Flashcards
two methods of ensuring quality
quality control and quality assurance
one advantage of tesco using e-commerce
E-commerce allows customers to make purchases on the internet at any time of day or night (1). This is important to Tesco PLC because many of their stores are only open during the day (1). This can lead to more sales which may mean more profit and can provide the funds for expansion (1)
one way consumer law may impact tesco
One possible impact is that if Tesco plc sells products which are not as described it could get fined (1) and subsequently receive poor press coverage which could then lead to a poor reputation and a loss of sales (1).
two reasons tesco needs reliable suppliers
Suppliers must be reliable in providing quality (1) products otherwise reputation may be affected (1) and Tesco plc’s sales may decrease
two possible impacts on a business of a rise in unemployment and the evaluate the impact in a rise in unemployment on any two stakeholders
less money in the economy
more inferior goods purchased
Tesco is a public limited company which means it has shareholders who may be affected by a rise in unemployment (A02). They are likely to be adversely affected because it is likely sales and profits will go down as there will be less spending in the economy which may mean lower dividends and possibly a lower share price (A03a).
Customers may also be adversely affected because they will have less money to spend on their shopping (AO2). This could mean that they have to buy cheaper goods from Tesco, such as the basics range of food (AO2) which may not be as nice to eat and reduce their happiness (AO3a).
The customers are likely to face a bigger impact from a rise in unemployment than the shareholders, because having to buy lower quality food will have a big impact on their life. However, because Tesco sells products aimed at every income level (from basic to ‘finest’) it is unlikely that sales will reduce by very much so the share price may not be affected (AO3b)
state one use of breakeven to virgin atlantic
to inform decisions for example how many flights need to be sold
evaluate the importance of good customer service to virgin atlantic’s objective of growth
An objective of growth means that the business wants to increase its ability to make sales in the future (AO1). Good customer service is making sure your customer needs are met in a ways that keep the customer happy and likely to return to the business (AO1). Virgin Atlantic has many interactions between the employees and the customers, and if they want to gain more customers and keep their current customers flying with the business then they need to make sure that all their employees, such as check-in staff and flight attendants, are being polite and helpful to their customers (AO2). Good customer service is especially important when customers are flying because it can be a stressful environment for people on airplanes and they may need to be reassured and confident in the employees they are dealing with. This will give Virgin Atlantic more chance of repeat customers, more sales and profit and this can then be used to purchase more airplanes, more flights and achieve their objective of growth (AO3a). However there has been a rise in the number of ‘no-frills’ airlines and they often cut back on customer service. By doing so they can offer cheaper flights and this has proved very popular with customers (AO2). By offering good customer service, Virgin Atlantic will have higher costs from having more employees and higher training costs. This will decrease profit and make it less likely that the business has the finance to grow in the future (AO3a).
Overall good customer service is important to Virgin Atlantic when trying to achieve their objective of growth because growth requires repeat customers. However it depends on the market that Virgin Atlantic is targeting. If, to enable growth, Virgin Atlantic needs to compete against the ‘no-frills’ airlines then they may need to reduce their costs which may have an impact on customer service. However if they can grow by only targeting the less price-conscious customers then they can continue to offer good customer service (AO3b)
two factors that influence the location of a business
proximity to the market
costs
discuss the factors that may have influenced costa coffees decision to locate a new branch in welshpool
proximity to market - locating near to other businesses
proximity to labour - located in a high population area
cost - access to reliable and cheap ict communication such as reliable broadband
one fixed cost a business could have
rent on a building / factory, some utilities
variable costs defenition
costs that change as output changes
one disadvantage to M&S of selling its good using e-commerce
it is impersonal and customers may not be able to ask question
advantage and disadvantage of switching from batch to flow
batch production allows there to usually be a larger selection so they loose out on that
flow production allows them to reduce the per unit cost and sell them for a lower price possibly increasing sales
role of procurement within JLP
managing the logistics , for example the delivery’s one store receives
two factors that affect supply decisions
time - if a supplier cannot deliver goods on time this. may lead to a customer going to a competitor
reliability- this products are not a required quantity and/quality a customer may not return and jlp may loose loyalty
