Unit 7 Analysing the strategic position of a business

Question 1

Patagonia

Answer 1

Example of CSR
Pros of Social Responsibility:
Patagonia is a ltd and stocks are owned by a trust and profit is donated to help the environment
Treats employees well with afternoons off for leisure time and onsite nursey

Question 2

Volvo

Answer 2

Environmental and Political
Volvo quits EV only by 2030
Market Conditions have changed - EV are expensive for customers
Increase tariffs - EVs produced in China, passes on costs to customers
Not much infrastructure(electric chargers)

Question 3

M&S

Answer 3

5 Year Plan A for more ethical/sustainability approaches
Annual Profit rise 41%
Cutting emissions, human rights and wellbeing, 50% sustainable sourced food
Listens to feed back from stakeholders

Question 4

Apple

Answer 4

Share Price increase in 2011 despite 11-14 suicide attempts
Due to brand loyalty

Question 5

Bet365

Answer 5

Example of Pure Play
Only operates online(E-commerce)
Profitable - Operating profit £76.1m
Although Bet365’s IT infrastructure, development and technology costs increased

Question 6

Uber

Answer 6

Example of Pure Play
$37.2 billion revenue in 2023

Question 7

ASOS

Answer 7

Example of Pure Play
E-Commerce
Drop in sales - Challenging trading conditions post-pandemic as consumers shift away from buying goods exclusively online. It also faces stiff competition from rivals such as the Shein and retailers with a combination of stores and online retail, such as H&M and Zara.

Question 8

Apple

Answer 8

Example of Omnichannel
Retail Stores, Online, Apple stores

Question 9

Aldi

Answer 9

Cancels Click and Collect after 4 years
High-quality products at the lowest possible prices. One of the ways we keep our prices low for customers is by running the most efficient supermarket business in Britain.
E-commerce has costs

Question 10

Primark

Answer 10

Successful business which doesn’t use E-Commerce
Maintains low prices through low costs, e-commerce creates additional infrastructure costs

Question 11

Boohoo

Answer 11

Boohoo is an online clothes place owning brands include Debenhams, Karen Millen and PrettyLittleThing.
Boohoo has been struggling since the pandemic, in 2024 sales have fallen by 15% to £620m for the six months to the end of August
Analysts suggest Boohoo should give up some brands and focus on brands which target the younger audience.
Strong Competition from Shein and Temu could be a reason