Paper 1

Explain one way in which product orientation is important to Rolex.

• The business concentrates on the production process and design of the watch.

• The business concentrates on the needs and wants of the customer and develops the watch to meet those needs.

Assess the importance of creativity as a characteristic of the entrepreneur Hans Wilsdorf. (10)

• Define

  +

  +

  Conclusion

• Define

  +

  -

  Conclusion

Assess the likely importance of distribution (place) in Rolex’s marketing mix (12)

*which two are correct?

• Define

  +

  +

  +

  Conclusion

• Define

  +

  +

  -

  Conclusion

• Define

  -

  +

  Conclusion

• Define

  -

  -

  +

  Conclusion

In order to remain competitive in the luxury watch market, Rolex could become a public limited company or remain a private limited company.

Evaluate these two options and recommend which one is more likely to support Rolex remaining competitive in the luxury watch market. (20)

• Define x2

  Option 1

  +

  -

  Option 2

  +

  -

  Recommendation

• Option 1

  +

  -

  Option 2

  +

  -

  Recommendation

• Define x2

  Option 1

  +

  +

  Option 2

  +

  -

  Recommendation

Using the data in Extract D, calculate Nike’s market share of worldwide sports footwear in 2018. State your answer to 2 decimal places. You are advised to show your working.

• Sales of business / Market sales x 100

• Output / Maximum output x 100

Question - Explain one way foreign direct investment (FDI) affects businesses in Indonesia.

Definition - Foreign Direct Investment (FDI) is when a business with head office in one country, sets up factories, offices etc in another country.

• True

• False

Assess one effect on Nike of Indonesia being a member of the ASEAN trading bloc.

*select two that are true

• Can benefit from free trade in the trade bloc.

• It can only sell to members of the trade bloc

• Competitors of Nike may also be in the same trade bloc

Assess the possible impact of multinationals, such as Nike, on the economy of Indonesia.

*Select the two correct answers

• Can create jobs for locals.

• A Nike factory may damage the environment.

• Lower costs for Nike as they can pay low wages

Nike is aiming to achieve competitive advantage in the global sports footwear market. In order to do this Nike could focus on cost competitiveness or differentiation.

Select the statements that are true. There are 2.

• + of differentiation is to build a brand image.

• + cost benefits can be passed on to the customer to have lower prices

• - Locating in countries like Indonesia will increase costs for Nike

• - Nike currently has a poor brand image, it isn't well known

Percentage change is difference / (a)   x 100