9609_s21_qp_22
A paper of Business Studies, 9609
Questions:
2
Year:
2021
Paper:
2
Variant:
2
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1
Hot Bubblez (HB) Karen is a sole trader who operates a service business called Hot Bubblez (HB) from her own home. It is a laundry service in town P. Each day Karen spends the morning collecting laundry from customers’ homes. Karen then washes, dries and irons the laundry and then delivers it back to customers’ homes in the evening. She owns two washing machines, two drying machines and one iron. Each batch of washing takes approximately two hours to wash, dry and iron. Karen has completed some market research about which method of laundry households use in town P (see ). There are 60 000 households in town P. Use a laundry service 20% Do laundry at home 65% Go to a laundry shop 15% : The percentage of households using each laundry method in town P Karen has 300 households that use HB’s laundry service. Karen would like to employ someone to do the collections and deliveries. Karen has always relied upon customer recommendations to promote HB. However, she has not been able to gain any new customers and she thinks it is time for new promotion methods to be used. She would like to target the hotel laundry market. Table 1.1 shows some data about the local hotel market. Table 1.1: Data about the local hotel market Number of hotels in town P Number of hotels outside town P but within 30 miles of HB Proportion of hotels which have their own laundry service 50% Define the term ‘service’ (line 1). Explain the term ‘sole trader’ (line 1). Refer to and any other relevant information. Calculate HB’s share of the laundry service market. Analyse two factors which could affect the scale of HB. Explain one appropriate method of recruitment for Karen to find a new employee to do collections and deliveries. Evaluate appropriate promotion methods for HB to target the hotel laundry market.
3. Marketing (AS Level)  →  3.2. Market research
3. Marketing (AS Level)  →  3.1. The nature of marketing
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2
Lakeland Oysters (LO) Lakeland Oysters (LO) is a private limited company in country G that was started by the Dar family in 2010. LO farms oysters in a lake that is owned by the business. Oysters are a type of shellfish. The business employs six people from the local town. LO has two markets for its oysters (see Table 2.1). Table 2.1: Market and financial data for LO, 2020 Market Description Sales Revenue Profit margin Industrial Restaurants ordering from LO’s website 80 000 oysters $100 000 15% Consumer Customers visiting the farm 50 000 oysters $150 000 25% LO believes that corporate social responsibility and its triple bottom line are important. There has been a recent news article on the internet about oyster farming (see ). Oyster farming can be good for the environment Oyster farming can have a beneficial impact on the water by removing harmful pollutants. Oyster farms also benefit the local community by turning lakes into pleasant areas for the public. The government is considering giving grants to encourage oyster farming in country G. : Extract from a recent news article about oyster farming The directors of LO would like to expand the business by purchasing a second location. The business has two options (see Table 2.2). Table 2.2: Data about a potential second location for LO Location A Location B Current use An oyster farm A fishing lake Distance from LO’s current location 100 km 5 km Potential output per year 100 000 oysters 150 000 oysters Purchase price $250 000 $300 000 Start-up costs $20 000 $100 000 Operating costs $150 000 per year $200 000 per year Define the term ‘market’ (line 6). Explain the term ‘profit margin’ (line 6). Refer to Table 2.1. Calculate the total profit made from selling oysters in 2020. Explain two possible reasons why the profit margin for the consumer market is higher than the profit margin for the industrial market. Analyse why two of the elements of the triple bottom line are important to LO. Refer to Table 2.2 and any other relevant information. Recommend which location LO should choose. Justify your recommendation.
5. Finance and accounting (AS Level)  →  5.4. Costs
10. Finance and accounting (A Level)  →  10.2. Analysis of published accounts
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