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    Business End Term 13 pp2

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    Rashid okeyo
    Priya lives in a town that wants to become known for its bookshops. She receives a grant and opens Priya's Bookshop. Part of the grant application included a cash flow forecast showing expected monthly income, expenses, and balances. Priya now wants to promote her bookshop using market segmentation to target different customer groups. The Seaside Hotel is a large hotel in a tourist area with 120 rooms. During its peak season from April to September it employs 42 workers across various roles. The hotel must sell at least 72 rooms per night to break even. It has a joint venture with a nearby restaurant where customers receive discounts. The manager Tia has an autocratic leadership style. The directors want to increase the

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    Business End Term 13 pp2

    Uploaded by

    Rashid okeyo
    65 views4 pages
    Priya lives in a town that wants to become known for its bookshops. She receives a grant and opens Priya's Bookshop. Part of the grant application included a cash flow forecast showing expected monthly income, expenses, and balances. Priya now wants to promote her bookshop using market segmentation to target different customer groups. The Seaside Hotel is a large hotel in a tourist area with 120 rooms. During its peak season from April to September it employs 42 workers across various roles. The hotel must sell at least 72 rooms per night to break even. It has a joint venture with a nearby restaurant where customers receive discounts. The manager Tia has an autocratic leadership style. The directors want to increase the

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    business end term 13 pp2

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    Priya lives in a town that wants to become known for its bookshops. She receives a grant and opens Priya's Bookshop. Part of the grant application included a cash flow forecast showing expected monthly income, expenses, and balances. Priya now wants to promote her bookshop using market segmentation to target different customer groups. The Seaside Hotel is a large hotel in a tourist area with 120 rooms. During its peak season from April to September it employs 42 workers across various roles. The hotel must sell at least 72 rooms per night to break even. It has a joint venture with a nearby restaurant where customers receive discounts. The manager Tia has an autocratic leadership style. The directors want to increase the

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    65 views4 pages

    Business End Term 13 pp2

    Uploaded by

    Rashid okeyo
    Priya lives in a town that wants to become known for its bookshops. She receives a grant and opens Priya's Bookshop. Part of the grant application included a cash flow forecast showing expected monthly income, expenses, and balances. Priya now wants to promote her bookshop using market segmentation to target different customer groups. The Seaside Hotel is a large hotel in a tourist area with 120 rooms. During its peak season from April to September it employs 42 workers across various roles. The hotel must sell at least 72 rooms per night to break even. It has a joint venture with a nearby restaurant where customers receive discounts. The manager Tia has an autocratic leadership style. The directors want to increase the

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 4

    1 Priya’s Bookshop (PB)

    Priya lives in town R which is situated in beautiful countryside with nice walks nearby. Many
    tourists visit town R.

    The town’s council would like town R to become branded as a ‘booktown’, a town with
    many bookshops selling new and used books. The council announced a new financial
    scheme offering grants to attract entrepreneurs willing to open a bookshop.

    Priya applied for a grant to start up Priya’s Bookshop (PB). Part of her grant application
    included a cash flow forecast, shown in Table 1.1.

    Priya’s grant application was successful and she opened PB well aware of the need for both cash and
    profit.

    Priya now wants to raise awareness of PB in town R. Priya did some market research and decided to use
    market segmentation. This will help her to decide on the promotional methods she could use for her
    bookshop. See Table 1.2
    (a) (i) Define the term ‘market segmentation’ (line 25). [2]

    (ii) Explain the difference between cash and profit (line 23). [3]

    (b) (i) Refer to Table 1.1. Calculate PB’s forecast closing balance in month 3 (X). [2]

    (ii) Analyse two benefits to Priya of producing a cash flow forecast. [8]

    (c) Explain two entrepreneurial qualities that Priya has shown.


    [4]

    (d) Recommend suitable promotional methods that Priya could use to raise awareness of PB in
    town R. Justify your recommendation. [11]
    2 Seaside Hotel (SH)
    SH is a large hotel located in a tourist area of country H. SH has 120 rooms and employs
    42 workers during the peak (busiest) season which is from April to September. Table 2.1
    shows employee data for SH’s peak season.

    Table 2.1: Employee data for SH’s peak season

    2
    SH makes half of the cleaners and customer service employees redundant at the end of
    the peak season.

    To break even, the hotel must sell 72 rooms per night. The hotel offers good views of the
    sea and it is very busy in the peak season when the weather is hot. Table 2.2 shows SH’s
    sales of rooms

    Table 2.2: SH’s sales of rooms 2021–2022

    SH does not have a restaurant. It has a joint venture with a restaurant close to the hotel
    where SH’s customers receive a discount on their food and drink. The hotel advertises the
    restaurant on social media and the restaurant advertises the hotel on its menu.

    Tia is one of the managers of SH. She has an autocratic leadership style and is responsible
    for the cleaners and marketing employees.

    The directors of SH aim to increase the value added to the service that SH provides.
    (a) (i) Define the term ‘redundant’ (line 16). [2]

    (ii) Explain the term ‘joint venture’ (line 25). [3]

    (b) (i) Refer to Table 2.2 and any other information. Calculate the average margin of safety
    from April to September 2021. [2]

    (ii) Explain two possible limitations to SH of using break-even analysis. [4]

    (c) Analyse one possible advantage and one possible disadvantage to SH of Tia’s autocratic
    leadership style. [8]

    (d) Recommend how SH could increase the value added to its service. Justify your
    recommendation. [11]

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