N5 BM - 2018 Paper Questions

Describe the use of market research.

• Identifies consumer needs/wants to ensure the product has a chance of success.

• Information on rivals/competition.

• Market research is split into two types - desk and field research.

• An example of market research is doing an online survey with customers.

• Identify the target market.

Outline stages of product development.

• Produce the product

• Carry out market research

• Produce a prototype and test it

• Generate and analyse idea

• Adjust product based on testing and feedback

Explain the benefits of branding.

• as already gained trust.

• Brands are instantly recognisable

• so the business can charge high prices.

• Branding can enable a business to charge high prices for its product

• which can make larger profits.

• Branding can lead to a perception of high quality

• so customers make repeat purchases

• Branding can lead to brand loyalty

• which saves finance on advertising.

• Easier to launch new products

Describe the method used by an organisation to ensure a quality product.

Quality ??? - this is where quality is checked at the beginning (inputs)/end (outputs) of the production process.

Outline the factors that may be considered when choosing a suitable method of production.

• The nature of the product - what is being made

• The availability and skills of labour - can staff use eg, machinery

• The cost of technology/machinery - how expensive is it to buy?

• Cheap labour

• Premises size

Explain the impact of over-stocking on the organisation. (3 marks)

Goods may ​ (a)   which could lead to ​ (b)   wastage costs. 

Greater chance of​ (c)   as it is more difficult to notice if something is missing. This would mean​ (d)   profit from stolen goods.

Capital is tied up in ​ (e)   which means that resources cannot be used elsewhere.

• deteriorate
• high
• theft
• inventory
• loss of
• more
• sales
• be promoted
• low
• training

Identify 1 piece of legislation that exist to protect employees.

???? Minimum Wage Regulations

Identify 1 piece of legislation that exist to protect employees.

???? Minimum Wage Regulations

Identify methods of selecting the right person for a job.

• Job advert

• Application form/CV

• Interview

• Testing

• Job description

Explain a benefit of each method of selection:

• which helps to back up their form

• Application form/CV: To compare against the job description and person specification

• in order to create a shortlist

• Testing: assesses a candidate's performance

• which allows for candidate comparison

• References: candidate's past performance in a work situation can be known

• to see if they can work under pressure

• Interviews  Candidates are asked a set of identical questions