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SECTION A Answer two questions from this section. 1. (a) Outline the impact of Todos os Mercados in St. Laurent on two external stakeholders. [4 marks] Local businesses – a lot of local businesses suffer as they cannot compete with the prices and marketing of TM Customers – customers will be able to buy goods in one place and save a lot on their weekly expenditure. Pressure groups – Are concerned about the TM’s lack of CSR and are focusing their efforts on trying to get them to be more ethical. Government – The country is going through a recession so the government will be please that TM is offering job opportunities and allowing families to reduce their outgoings. Henri’s family – Henri’s family will be glad of the income but will suffer from the fact that Henri is demoralized from working at TM day after day causing tension. 1 mark for each correct external stakeholder (maximum of 2 marks) 1 mark for each accurate outline of the impacts (maximum of 2 marks) (b)
Analyze the reasons that made the Trouvé business go ‘into liquidation’ (line 13) [6 marks]
No external finance – Not being able to gain external finance will mean that they cannot invest to develop the business. This growth is needed to compete with multi-national companies like TM in order to be a presence in the market place. Economies of scale – The Trouve business would not have the same economies of scale as TM which is a large multi-national company. Therefore the costs per unit will be higher forcing the Trouve business to charge a higher price in order to make a profit. However, customer will be attracted to the low prices of TM, the revenue of the Trouve business will have declined. Marketing – Smaller businesses will not be able to afford the same promotional mix as the large multi-national business meaning that TM would have had more exposure that the Trouve business which could have prevented new customers purchasing from the Trouve business. Convenience – TM is convenient for customers as they can purchase virtually all of their needs under one roof. With lifestyles changing in Europe to become more of a fast pace this will be appealing for consumers of today meaning they will be enticed away from the Trouve business by TM.
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Henri’s father could have lacked ambition to develop the business meaning that it was over taken by newer business. His unique selling point of a personal service probable added to his costs meaning the profit margin was low. Or any other relevant factor. Award a maximum of [2 marks] if relevant factors are analyzed with no application. Award a maximum of [4 marks] if the response lacks depth in the analysis. Award [6 marks] if the analysis has depth and is applied. SECTION B Answer the following question. 4. c) Explain one advantage and one disadvantage to TM of creating a force field analysis to help them with the decision of whether to go ahead with Option A or not. [4 marks] Advantages: • It provides a visual summary of all the various factors supporting and opposing the idea. • All the data that has been collected regarding the potential decision is consolidated into a single graph. • Expands the evaluation beyond the data itself to look at qualitative factors that may have an impact on the success or failure of the decision. Disadvantages: • Requires the full participation of everyone involved to provide the accurate information required for an effective analysis. • When full participation isn't possible as in TM with its autocratic approach, this results in an analysis that doesn't provide a realistic picture of the supporting and opposing forces. • There is the possibility that the analysis won't result in a consensus among the group. It may even cause a division in the group between those who support the decision and those who oppose it. • Difficult to accurately quantify weightings of each force. Weightings may be subjective. Or any other relevant factor. 1 mark for advantage, 1 mark for explanation. 1 mark for advantage, 1 mark for explanation.
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