Test Correction

2a) A trade union is…

  • A trade union is a group of employees who join together to maintain and improve their conditions of employment.

b) Two legal controls over employment are…

  • Minimum wage

  • Discrimination at work and employment

c) Four aims of promotion are…

  • Inform customers about a new product

  • Persuade customers to buy the product

  • Create a brand image

  • Increase sales and market share

d) Explain one advantage and one disadvantage to Nina and Daniel of being in a business partnership.

+ Shared funds = Increased capital

- Potential conflict = Partnership could fail due to arguments

e) Do you think an organisation should always use external recruitment when recruiting skilled employees? Justify your answer.

3a) Brand image is…

  • Brand image is an identity given to a product that differentiates it from competitors' products.

b) Two stages of the product life cycle are…

  • Development

  • Introduction

c) Outline one possible objective for stakeholders: Government and employees

  • Raise local employment rates

  • Get better pay

d) Explain two problems for FF of using on-the-job training.

- Learned bad habits from co-workers.

- Decreased efficiency as employees have to teach the new worker.

e) Do you think a joint venture is the best way for a business to enter a new market in another country? Justify your answer.

Joint ventures decrease the risk of a business entering another market as the business it is collaborating with could already be well-known in that market, which would mean the venture would have less competition during its establishment.

Joint ventures are temporary and last until a goal is reached, so the advantages of joint ventures would not always be available to the business.

4a) Define secondary sector

  • Secondary sector: this involves the manufacture of goods using the resources from the primary sector.

b) Identify two ways of measuring the size of a business.

  • Value of capital employed

  • Number of employees

c) Identify four examples of communication barriers

  • Speaker is not clear/speaks too quickly

  • Language that is difficult to understand is used

  • Message distorted after going through long command chain

  • Wrong channel used— message may be missed

d) Explan how two methods of sales promotion could increase sales for the business.

  • Gifts could be used for Eco Glow, such as including a lighter, which would encourage sales as customers will have an easier time using the product without spending extra.

  • BOGO for EG candles would increase sales and encourage repeat purchases as customers will have a higher likelihood of finding a scent they like/get to try more scents.

e) Do you think operating in a niche market will help a small business have a better chance of success than in a mass market?

Operating in a niche market makes it easier for a business to market their products to customers, which increases brand images and allows for easier brand loyalty.

A disadvantage of operating in a niche market is that the costs for research and development are very high, and having a smaller potential market will mean that it will take longer for the business to reach the break-even point.

It would be advised for a business to operate in a niche market because their product will have less competition and they will own more of the total market.

Attention (dey see it)

Interest (dey’re intersted in it)

Desire (dey want it)

Action (dey buy it)