DSY is a private limited company. It produces washing machines and cleaning equipment. The Managing Director wants DSY to expand into a different market. He plans to spend $2bn on developing electric cars. There is a lot of competition in the electric car market. This market is growing rapidly. A leading pressure group has identified the environmental problems of non-electric cars. The Managing Director knows that important decisions about the method of production and the new car’s brand image still have to be made. Define ‘pressure group’. Define ‘brand image’. Outline two advantages to DSY of being a private limited company. Advantage 1: Advantage 2: 1 15 Explain two factors DSY should consider when deciding on a suitable method of production for the new product. Factor 1: Explanation: Factor 2: Explanation: Do you think entering a growing market where there is a lot of competition is the best way for a business to expand? Justify your answer. [ 1 15 0450_w20_qp_12 THEORY 2020 Paper 1, Variant 2 View
Abdula manages a business partnership that makes sports clothing. The business is working at full capacity. It employs 12 people who are paid on a piece rate basis. The partners have an objective to increase profits by 10 % each year for the next 5 years. They are thinking about a joint venture with another manufacturer of sports clothing as one way of achieving this objective. What is meant by a ‘business partnership’? Identify two ways of paying workers that the partnership could use (other than by piece rates). Way 1: Way 2: Identify and explain two advantages to this business of setting objectives. Advantage 1: Explanation: Advantage 2: Explanation: Identify and explain two advantages to the partnership of a joint venture with another manufacturer of sports clothing. Advantage 1: Explanation: Advantage 2: Explanation: Explain two ways (apart from a joint venture) that the partnership could use to achieve its objective of a 10 % annual increase in its profit over the next 5 years. Recommend which way is most likely to be successful. Justify your answer. 0450_w14_qp_12 THEORY 2014 Paper 1, Variant 2 View