Business studies - best way to answer this q.?

[i-copeland]

Can you please give me an example of how to answer this question...

(I got it from here - 0450_s10_qp_11.pdf)

3. e) Deco wants to spend more on developing new products. In order to do this it will have to

spend less on market research. Do you think Deco should do this? Justify your answer. [6]​

 

[somya]

deco is a manufacturing business operating in a a highly competitive and fast changing market, so it always has to be at its innovative best in order to survive the competition. for doing so, market research is a must. to survive the immense competition, the product has to satisfy customer wants and needs. and for this to happen, the product should be of high quality and should be fully loaded with features that the competition does not provide. as a result businesses that invest time and money in market research increase their chances of succeeding in their markets as they know what customers WANT.
so, i feel that it won't be a wise decision to spend less money on market research as the business won't be aware of the actual wants of the customers.

 

[somya]

i think that would be just enough...

 

[BliTz97]

Can you please give me an example of how to answer this question...

(I got it from here - 0450_s10_qp_11.pdf)

3. e) Deco wants to spend more on developing new products. In order to do this it will have to

spend less on market research. Do you think Deco should do this? Justify your answer. [6]​

This Somya! Is Amazing! in business! she help me alot!! like alot!! She can also help you!

 

[somya]

This Somya! Is Amazing! in business! she help me alot!! like alot!! She can also help you!

thanks...! your words meant so much to me!!

 

[i-copeland]

But what what about the importance of new product development in this constantly progressing industry?

 

[i-copeland]

Could i get full marks for this question? (its a new one). Thanks.

​

3. (b) Labour costs are much lower in other countries. Many sports shoe manufacturers ​

produce in those countries. Consider the advantages and the disadvantages to KSS ​

of manufacturing its football boots in another country. Do you think KSS should move ​

manufacturing to another country? Justify your answer.​

Advantages: ​

Cheaper because they are using cheaper labour so they can get more profits. They can get more sales because if they are making the shoes cheaper then they can sell them cheaper thus making more sales and their market share.​

Disadvantages:​

To import the good back into the country would cost money because of import duties. Also other import tarifs could limit the amount of shoes they are aloud to import in, thus the amount of sales they can make in this country are limited.​

Conclusion:​

I would sujest moving the protduction to another conrty because the import duties aren't that expensive and the import limit is quite high, so its not that limiting. And the cheap labour in the other country would be well worth it.​

[12]​

​

Source:​

0450_s12_qp_21.pdf​

0450_s12_ms_21.pdf​

 

[somya]

well, i don't think that's much for a 12 mark answer... according to me thats an eight or a nine mark answer you've written (no intention of being rude here, just saying what i feel)

 

[ayeshaddy]

Advantages
Cost of production would decrease as labour would be cheap. As cost would be low then the product can be sold at cheaper rates in the market, which would attract more customers, means business can achieve more profit. More customers also mean that the business will have more market share. The business will also attain the status of a multinational company if it is producing in the other country, and can benefit from economies of scale. The business can also sale in that country, this would have one advantage that the products would not have to go through the quotas and tarrifs to be able to sell in the country.
Disadvantages
To import the good back into the country would cost money because of import duties, increasing the cost of the business. Also, other import tarifs could limit the amount of shoes they are aloud to import in, thus the amount of sales they can make in this country are limited. Along with that, there are possibilities that the labour might not be very skilled and may require training which would be expensive, and inefficient labour can lead to low quality of boots affecting the overall reputation of the business. And also there might not be resources available in that country for the manufacture of boots so KSS might also need to import the resources, increasing costs. Establishing in another country means that there would be different trends and laws followed in that country and different language too, perhaps, this would make communication difficult and time would be needed to understand the trends and laws followed in that country .

In conclusion, I would suggest that KSS establish in the other country, and not just produce, but sale there too which would increase its market share,and the product would also be well known. Cheap labour will mean that their production costs would be low, and if in case the labour is unskilled than KSS can provide training which would be very fruitful in the long run.
somya Is this ok?

 

[somya]

Advantages
Cost of production would decrease as labour would be cheap. As cost would be low then the product can be sold at cheaper rates in the market, which would attract more customers, means business can achieve more profit. More customers also mean that the business will have more market share. The business will also attain the status of a multinational company if it is producing in the other country, and can benefit from economies of scale. The business can also sale in that country, this would have one advantage that the products would not have to go through the quotas and tarrifs to be able to sell in the country.
Disadvantages
To import the good back into the country would cost money because of import duties, increasing the cost of the business. Also, other import tarifs could limit the amount of shoes they are aloud to import in, thus the amount of sales they can make in this country are limited. Along with that, there are possibilities that the labour might not be very skilled and may require training which would be expensive, and inefficient labour can lead to low quality of boots affecting the overall reputation of the business. And also there might not be resources available in that country for the manufacture of boots so KSS might also need to import the resources, increasing costs. Establishing in another country means that there would be different trends and laws followed in that country and different language too, perhaps, this would make communication difficult and time would be needed to understand the trends and laws followed in that country .

In conclusion, I would suggest that KSS establish in the other country, and not just produce, but sale there too which would increase its market share,and the product would also be well known. Cheap labour will mean that their production costs would be low, and if in case the labour is unskilled than KSS can provide training which would be very fruitful in the long run.
somya Is this ok?

absolutely perfect....!

 

[i-copeland]

So do i just need more advantages and disadvantages then?