Spec Revision

Question 1

Factors determining most appropriate pricing strategy

Answer 1

• number of USP’s/ differentiation
• PED
• level of competition
• strength of brand
• stage in product lifecycle
• costs

Question 2

Ways to build a brand (promotion)

Answer 2

• USP/differentiation
• advertising
• sponsorship
• social media

Question 3

Factors leading to change in demand

Answer 3

• changes in price of substitutes and complementary goods
• change in consumer income
• fashion, tastes and preference
• advertising and branding
• demographics
• external shocks
• seasonality

Question 4

Factors leading to change in supply

Answer 4

• changes in cost of production
• new technology
• indirect taxes e.g. VAT
• government subsidies
• external shocks

Question 5

Business objectives

Answer 5

• survival
• profit maximisation
• sales maximisation
• market share
• cost efficiency
• employee welfare
• customer satisfaction
• social objectives

Question 6

Roles of an entrepreneur

Answer 6

• creating and setting up a business
• running and expanding business
• innovation/intrapreneurship
• anticipating risk and uncertainty

Question 7

Factors contributing to increased globalisation

Answer 7

PLTTT MFS
- political change
- labour force growth
- transnational/global companies (increased significance)
- trade barriers decreased
- transport and communication (reduced cost)
- migration
- FDI
- structural change