Lesson 4

Question 1

What does maximise revenue mean?

Answer 1

to generate higher value or as many sales as possible.

Question 2

Why do businesses maximise revenue?

Answer 2

• Increase business income / cash flow
• Attract more customers
• Increase market share

Question 3

What may maximising sales require?

Answer 3

smaller profit margins or even no profit

Question 4

What is included in optimising business activities?

Answer 4

• Increasing marketing activities
• Diversifying revenue streams
• Managing business processes

Question 5

What does generating sales require?

Answer 5

increased marketing activity

Question 6

What is included in social media marketing?

Answer 6

Showcasing products on different platforms like Tik Tok, Instagram or Facebook. Share behind the scenes glimpses of business life.

Question 7

What is included in paid for advertising?

Answer 7

• focus on strategies for higher sales
• target new market segments
• set aside an advertising budget

Question 8

What is included in sales and discounts?

Answer 8

• shift surplus products
• increase overall sales volume
• reduce profit margin per product

Question 9

What is the most successful strategy to increase sales revenue in agricultural and land-based businesses?

Answer 9

to diversify into selling complementary products or services

Question 10

What’s included in diversifying revenue streams?

Answer 10

• Direct marketing and sales
• Contract supply agreements
• Agritourism and education
• Value added products
• Open day events
• Seasonal activities

Question 11

How can direct marketing and sales maximise revenue?

Answer 11

cutting out the middleman to sell directly to consumers

Question 12

How can contract supply agreements maximise revenue?

Answer 12

B2B contracts with retailers, restaurants, hotels and food processors may mean lower profit margins but once in place don’t require marketing spend.

Question 13

How can value added products maximise revenue?

Answer 13

taking raw products and processing into a finished product can increase sales value. Sales revenue from value added products can be 3–4 times that of the raw products.

Question 14

How can agrotourism maximise revenue?

Answer 14

Setting up accommodation opportunities such as ‘glamping’ for short breaks can be a cost-effective way to maximise revenue. There are extra opportunities to sell milk, eggs, bread or provide breakfast to maximise revenue

Question 15

How can educational and leisure activities maximise revenue?

Answer 15

Education can maximise revenue and encourage people to consider life as a land-based entrepreneur. Activities include harvesting, conservation and animal care, guided tours, interactive workshops and hands-on activities for schools and families.

Question 16

How can a open day event maximise revenue?

Answer 16

For land-based businesses to showcase their products or services. Farm businesses can demonstrate their produce’s journey from “farm to table”. Animal care businesses can offer tours of their facilities to attract new customers.

Question 17

How can seasonal events maximise revenue?

Answer 17

Farm businesses may offer fruit picking in summer, pumpkin picking in autumn and dark skies stargazing in winter. Other land businesses can maximise revenue with seasonal activities at different times in the calendar.

Question 18

What 8 ways can revenue can be generated through the way businesses operate?

Answer 18

• efficient management
• technology adoption
• sustainable practices
• planning capacity
• efficient logistics and distribution
• invest in infrastructure
• risk management
• cost management

Question 19

How can efficient management generate revenue?

Answer 19

reducing waste/loss through quality control. Optimising time and resources to maximise revenue.

Question 20

How can technology adoption generate revenue?

Answer 20

introducing time-saving and efficient new technologies can improve productivity e.g precision farming technology uses data to improve output.

Question 21

How can sustainable practices generate revenue?

Answer 21

enhances long term productivity of land and protects the environment.

Question 22

How can planning capacity generate revenue?

Answer 22

efficient planning can ensure production meets market demand or resources are available to supply services at the right time.

Question 23

How can efficient logistics and distribution generate revenue?

Answer 23

having an efficient supply chain can reduce interruptions to business and timely delivery can reduce costs and satisfy customers.

Question 24

How can investing in infrastructure generate revenue?

Answer 24

improving storage facilities and processing is a way businesses can invest in better performance in the long term.

Question 25

How can risk management generate revenue?

Answer 25

Mitigating risk through risk planning, taking out insurance to reduce impacts of adverse events such as flooding, drought or pests.

Question 26

How can cost management generate revenue?

Answer 26

Monitor and manage operational costs. Identify potential cost savings.

Question 27

How can budgeting and planning generate revenue?

Answer 27

allocate resources effectively

Question 28

How can cost tracking and analysis generate revenue?

Answer 28

identify where costs can be saved

Question 29

How can economies of scale generate revenue?

Answer 29

spread fixed costs over larger product volume

Question 30

How can bulk buying generate revenue?

Answer 30

negotiate discounts for bulk purchases which reduce costs and can be stored until needed

Question 31

How can efficient labour generate revenue?

Answer 31

reduce errors and time wasting through training and task allocation

Question 32

How can automation generate revenue?

Answer 32

replace labour intensive tasks, capital intensive but long-term cost savings.

Question 33

How can maintenance and repair generate revenue?

Answer 33

extend lifespan of equipment and machinery, avoid breakdowns

Question 34

How can reviewing business processes regularly generate revenue?

Answer 34

improve efficiency, optimise spending and maximise revenue without damaging the profit margins

Question 35

What are 3 implications of maximising revenue?

Answer 35

- profitability - reputation - quality

Question 36

What are the positive impacts of profitability when maximising revenue?

Answer 36

- May lead to higher gross income - Managed effectively = increased profit - Increased resources for expansion, investment - Increased resources in technology & innovation

Question 37

What are the negative impacts of profitability when maximising revenues?

Answer 37

- Lack of cost management expenses will eat profit - Additional revenue will go to paying extra expenses - May result in reduced profit or even operating losses

Question 38

What are the positive impacts of reputation when maximising revenue?

Answer 38

- May lead to higher visibility/ market presence - High quality product revenues increase reputation - Ethical sales & revenue practices increase reputation

Question 39

What are the negative impacts of reputation when maximising revenue?

Answer 39

- Less emphasis on customer satisfaction, more on sales - Public perceptions of focus purely on sales lose loyalty - Lower product quality to lower price reduces trust in brand

Question 40

What are the positive impacts on quality when maximising revenue?

Answer 40

- Increase revenues used for investing in production - Better equipment / higher quality inputs from revenue - Discerning customers attracted / premium pricing possible

Question 41

What are the negative impacts on quality when maximising revenue?

Answer 41

- Cut costs to compromise on quality for revenue - Dissatisfied customers, no repeat purchases - Potential legal issues if standards not met