3.2 MEETING CUSTOMER NEEDS REVISION QUESTIONS

Transcription

1 3.2 MEETING CUSTOMER NEEDS REVISION QUESTIONS Q1. (a) What is meant by the term Just In Time (JIT)? (b) Explain one benefit to Dell from selling computers direct to its customers through its website After moving its technical support and customer services department to India, complaints about Dell's customer service increased. (c) Explain one disadvantage of poor customer service to Dell (2) In 2011 severe flooding in Thailand damaged the factories of a large number of hard drive suppliers. This caused shortages and Dell was forced to cancel orders. As a result, Dell now holds some buffer stocks of important components. (d) State one advantage and one disadvantage to Dell of holding higher levels of buffer stock. For each explain the likely

2 impact on Advantage the business. Impact on Dell Disadvantage Impact on Dell Q2. (8) (Total for Question = 16 marks) (a) Which one of the following is most likely to lead to the repeat purchase of a ShakeAway milkshake? Select one answer. A Higher prices B Unfriendly staff C Market research D Loyalty cards (1)

3 (b) Explain one method ShakeAway could use to encourage potential customers to give the Millionaire's Milkshake a product trial. ShakeAway states that it only employs energetic and fun people in its stores. Each employee is called a Shakette. (c) Describe how ShakeAway could motivate its Shakettes. Productivity is very important at ShakeAway. Each Shakette tries to produce a milkshake within five minutes of receiving a customer's order. (d) Explain one reason why improving productivity would be important to ShakeAway. Q3. (Total for Question = 10 marks) (a) At which stage of the product life cycle were Harry Potter themed Lego sets most likely to have been by the end of 2012? (1) Select one answer. A Introduction B Growth C Maturity

4 D Decline (b) Outline one impact that stricter EU regulations on toy safety could have on The Lego Group. The Lego Group view the quality of its product as central to its success as a business. (c) Explain one benefit to The Lego Group of selling a quality product. There is increasing competition in the building brick market. The Lego Group want to remain competitive against other companies such as COBI and MEGA Bloks. To do this it is considering two options. Option 1: Link more of its sets to newly released movies. Option 2: Increase its advertising. (d) Which of these two options do you think would be more effective in helping The Lego Group to remain competitive and why? (2) (6) (Total for Question = 12 marks)

5 Q4. In 2011 budget airline Easyjet announced it was ordering 15 new aircraft. The new planes were faster and improved the company's productivity. Easyjet hoped to make a profit of 2 million per year from each of the new planes it had ordered. (Source: adapted from The airline industry is very competitive. Easyjet faces many rivals such as British Airways and Ryanair. Explain one benefit to Easyjet of improved productivity. Q5. believed this would boost the company's profits and increase the productivity of its two staff. Explain one possible benefit of improved productivity to the Saltash Toy Box. Q6. believed this would boost the company's profits and increase the productivity of its two staff. Closing down its retail store and focusing on selling through catalogues and its website has reduced costs at the Saltash Toy Box by 25%.

6 * Assess the effect of the change of focus on the competitiveness of the Saltash Toy Box. (8) Q7. Identify two benefits to a business resulting from high quality design of its products. Q8. (Total for Question = 2 marks) Apple produces home electronics, including strong brands like the ipod and iphone, for the mass market. Product design is an important part of its success. Product design is most likely to help a business: Select one answer. Q9. A generate quantitative research. B differentiate its products. C improve its organisational structure. D reduce productivity. (1) Marks and Spencer sells clothes, furniture and food. It is recognised by customers as having very good levels of customer service. Marks and Spencer carries out research and development. One product which resulted from this research was a machine washable wool suit which did not need to be dry cleaned. Explain one benefit of research and development such as this to Marks and Spencer.

7 Q10. Budget airlines such as Easyjet are often criticised for delays and cancellations. Explain one disadvantage to Easyjet of providing poor customer service. Q11. Marks and Spencer sells clothes, furniture and food. It is recognised by customers as having very good levels of customer service. Which of the following is the most likely result of good customer service at Marks and Spencer? (1) Select one answer. A Increased repeat purchases. B Lower profits. C Lower margin of safety. D Increased cash outflows. Q12. In March 2011 games manufacturer Nintendo launched the Nintendo 3DS console. The console allows users to experience 3D games without having to wear special glasses. However, some users were reported to feel unwell after playing the 3D games. (Source: adapted from Before the launch of the Nintendo 3DS, Nintendo built up large stocks of the console to meet the likely demand. Explain one drawback to Nintendo of holding large stocks of 3DS consoles. Q13.

8 believed this would boost the company's profits and increase the productivity of its two staff. The diagram below illustrates the bar gate stock graph for Go-Go Hamsters at the Saltash Toy Box. What is meant by the term 'stock'? Q14. believed this would boost the company's profits and increase the productivity of its two staff. The diagram below illustrates the bar gate stock graph for Go-Go Hamsters at the Saltash Toy Box. (2)

9 Using the diagram, identify the number of Go-Go Hamsters the Saltash Toy Box holds as a buffer stock. Q15. (1) believed this would boost the company's profits and increase the productivity of its two staff. The diagram below illustrates the bar gate stock graph for Go-Go Hamsters at the Saltash Toy Box. Use the diagram to calculate how many weeks it will take for stock of Go-Go Hamsters to arrive at the Saltash Toy Box after re-ordering. (2) Q16. price with larger toy retailers such as Toys R Us, but instead focused on customer service and allowing children to play with toys, in store, before parents buy them. In December 2009, the 'must-have' Christmas toy was the Go-Go Hamster. A Go-Go Hamster is a small motorised hamster which squeaks when it bumps into items of furniture. The Saltash Toy Box hoped that it would sell large quantities of this toy. Despite its efforts to compete, however, sales at the store remained low. The owner decided to change the focus of the business. In 2010, the Saltash Toy Box closed its only retail store and instead decided to focus on catalogues and its website as a way of making sales. It believed this would boost the company's profits and increase the productivity of its two staff. The diagram below illustrates the bar gate stock graph for Go-Go Hamsters at the Saltash Toy Box.

10 Describe one possible disadvantage to the Saltash Toy Box of holding a large stock of toys. Q17. believed this would boost the company's profits and increase the productivity of its two staff. The diagram below illustrates the bar gate stock graph for Go-Go Hamsters at the Saltash Toy Box.

11 As a result of the decision to close its store, the Saltash Toy Box changed the way it held stock. It now uses a Just In Time (JIT) method of stock control. * State one advantage and one disadvantage to the Saltash Toy Box of adopting a Just in Time (JIT) method of stock control. For each, explain one likely effect on the business. (8) Q18. Marks and Spencer sells clothes, furniture and food. It is recognised by customers as having very good levels of customer service. Outline one consumer protection law that Marks and Spencer must follow. (2)