Practise business success by choosing measures, calculating performance data and explaining why cash flow or competition can cause failure.
Ocean Vibes is a boat tour business located in two tourists resorts in Portugal. During the tours, it collects wildlife research. The idea came from two young scientists, Alfredo and Pedro, who share a passion for the environment, boats and science. Ocean Vibes employs boat tour guides and a sales team in each of the two resorts.
The main goal of Ocean Vibes is to connect tourism with science. It offers dolphin and bird-watching tours to tourists and uses the boat tours to collect research data on the wildlife. Its tour guides are knowledgeable, passionate and respectful of the environment.
Customers can book the boat tours online or in the tourist resorts. They are encouraged to leave reviews on Ocean Vibes' website.
Every month Ocean Vibes provides a boat tour for students and researchers who wish to study the wildlife.
There are many other businesses offering boat tours in Portugal which makes competing in the industry a challenge.
Employee satisfaction is one way to measure success in a business.
Analyse why Ocean Vibes should measure employee satisfaction.
Question
Number
Analyse why Ocean Vibes should measure employee satisfaction.
Indicative content
Mark
1 (g)
AO2 = 3 marks AO3 = 3 marks
AO2
- Measuring employee satisfaction at Ocean Vibes will help it to retain its tour guides who operate the dolphin and bird tours
- If employees at Ocean Vibes are satisfied, they will be motivated to provide good quality boat tours
AO3
- This will reduce recruitment and training costs for Ocean Vibes which may lead to higher levels of profitability
- This may lead to good reviews from customers which may encourage good recommendation and increased sales
(6)
Level
Mark
Descriptor
0
No Rewardable material.
Level 1
1-2
- Limited application of knowledge and understanding of business concepts and issues to the business context (AO2).
- Attempts to deconstruct business information and/or issues, finding limited connections between points (AO3).
Level 2
3-4
- Sound application of knowledge and understanding of business concepts and issues to the business context although there may be some inconsistencies (AO2).
- Deconstructs business information and/or issues, finding interconnected points with chains of reasoning, although there may be some logical inconsistencies (AO3).
Level 3
5-6
- Detailed application of knowledge and understanding of business concepts and issues to the business context throughout (AO2).
- Deconstructs business information and/or issues, finding detailed interconnected points with logical chains of reasoning (AO3).
Rabanne aims to be the best provider of fragrances for men and women throughout the world. Therefore, it uses a range of methods to make sure it will achieve this aim.
State one way Rabanne could measure its success as a business.
AO2-1 mark
Award 1 mark for a valid way Rabanne could measure its success in the context of the business.
- Rabanne can measure its success by the increase in sales of Invictus (1)
- Rabanne can compare its market share with that of other perfume businesses to see which is the most successful (1)
NB Do not accept a way that is not in the context of Rabanne.
Accept any appropriate response.
(1)
Explain one reason why some businesses fail.
A01-3 marks
Award 1 mark for identification of a reason why some businesses fail, plus 2 further marks for explaining the reason, for a maximum of 3 marks.
- Poor cashflow can lead to failure (1) from a lack of finance (1) to pay suppliers and other debtors (1)
- Prices could be too high and therefore not competitive (1) which could result in a fall in demand (1) leading to a lack of revenue (1)
NB No marks are awarded for a definition.
Answers that list three reasons with no explanation will get 1 mark only. Accept any appropriate response.
(3)
Artify Studio was set up in 2015 by Tay Hui Jae in the busy Kampong Glam area of Singapore. Artify Studio's aim is to have 'a communal art space where people can come together and paint, where people would be given as much creative freedom as they would have if they were in their own spaces.'
Artify Studio provides many services including its popular Liberty Art Jam where customers can paint as well as listen to music. The studio offers a Corporate Art Jam and Regular Kids Classes. Customers can purchase art materials after attending the studio.
Artify Studio is a profit-making organisation with a social element. It employs seven part-time people, all of whom are art enthusiasts.
Explain one measure a business can use to judge its success.
A01-3 marks
Award 1 mark for identification of a measure of success, plus 2 further marks for explaining this measure, for a maximum of 3 marks.
- Market share can be used to measure the success of a business (1). Changes in market share will show how well or not the business is doing (1) and help them to make decisions for the business (1).
NB Answers that list three measures of success with no explanation will get a maximum of 1 mark.
Accept any other appropriate response.
(3)
Question
Number
Indicative content
Mark