GCSE EDUQAS Business - 1.8 Aims and Objectives Quiz

Tinyville has a population of 5,000. Sixty percent of the population regularly buy pizzas from four businesses with the following numbers of customers: Supreme Pizza 1,200; Pizza delight 1,000; Gino’s Pizza Parlour 500; Pizza Amalfi 300. Calculate the market share for Supreme Pizza.

• 20%

• 33%

• 40%

• 50%

Google has nearly 90% of the search engine market in the UK and Bing has the second largest at 7%. Explain the benefits to Google of its dominance in this market.

• It can attract more advertisers and charge premium rates because most users are on its platform.

• It has stronger negotiating power with other businesses due to its leading position and reputation.

• Dominance guarantees lower profits, so it must reduce prices.

• A very large user base and data advantage make it harder for competitors to catch up.

Based on the passage excerpt: "Strike-hit Southern Rail – ranked lowest in UK-wide survey of customer satisfaction. Southern scored 21% and received one star for punctuality, reliability, seat availability, frequency and value for money; 46% of passengers said their most recent journey was delayed. Which? said the sector is failing passengers: overcrowding, delays, short trains, and carriages in poor condition—many services aren’t providing even the basics." Which of the following show how Southern Rail failed to meet customer expectations? Select all that apply.

• Delays and poor punctuality reported by many passengers

• Overcrowding and short trains reducing available seats

• Carriages in poor condition not providing even basic standards

• High punctuality and frequent services praised by most passengers

Based on the passage excerpt: "Strike-hit Southern Rail – ranked lowest in UK-wide survey of customer satisfaction. Southern scored 21% and received one star for punctuality, reliability, seat availability, frequency and value for money; 46% of passengers said their most recent journey was delayed. Which? said the sector is failing passengers: overcrowding, delays, short trains, and carriages in poor condition—many services aren’t providing even the basics." Using the passage, why might focusing on customer satisfaction improve the business?

• Satisfied customers are more likely to continue using the service, supporting sustained sales and profits that can be reinvested

• Operating costs fall even if passengers stop using trains, so profit rises without customer focus

• Survey results are guaranteed regardless of service quality, so satisfaction has no effect on performance

• Improving satisfaction eliminates the need for maintenance or investment in services

Jenny Hughes, owns a small business selling children’s clothes and wants to increase the number of customers and start selling other goods such as prams, cots and children’s furniture. Which objective best fits the SMART criteria?

• Increase the customer base by 10% within the next 12 months by investing £10,000 in marketing and add prams, cots and children’s furniture to the product range.

• Become more popular with families as soon as possible.

• Open more stores whenever opportunities arise.

• Reduce prices a little to attract more customers, with no specific target or timeframe.

The Pines Hotel, has made a loss for the last two years and aims to turn the business around and make a profit within the next few years. Which objective best fits the SMART criteria?

• Increase net profit by 5% per year over the next 3 years by raising average occupancy to 75% and reducing operating costs by 8% through efficiency measures.

• Aim to be the best hotel in the area.

• Raise room prices a bit to try to make money.

• Improve customer satisfaction without setting targets or deadlines.

Stakeholders are groups that have an interest in the success of a business and can affect and be affected by business activity. Which statement best matches this definition?

• Groups connected to a business who may influence or be influenced by its activities

• Only people employed by the business who make internal decisions

• Any individual who purchases from the business once

• Competitors who try to take market share from the business

Each stakeholder group will be interested in the performance and actions of the organisation and will have different expectations. Which statement is most accurate?

• Stakeholders share identical expectations regardless of performance

• Stakeholders care about performance and actions but expect different things

• Stakeholders do not consider performance when forming expectations

• Only owners have expectations about performance and actions

Owners have contributed their own money to developing the business and will have a great influence on actions as they are highly involved in decision making. What are owners most concerned about?

• Survival and the financial success of the business

• Receiving dividends without taking part in decisions

• Setting government policy for the industry

• Providing loans that must be repaid