Nuwan is a sole trader. He has a specialist sports shop selling a wide range of cricket and tennis products.
His 3 employees are trained to provide good customer service. Nuwan is pleased the economy is growing but he is worried that interest rates might be increased. He believes his small business has advantages compared to large retailers. Nuwan would like to improve profit margins and thinks the best way to do this is to reduce costs.
07 Identify and explain two advantages that Nuwan’s business might have compared to large retailers. [6]
Possible Points:
[KN] Better customer service due to limited numbers. [APP] ...
[KN] Quick decision making; [APP] as there are only 3 employees working which means...
[KN] Flexible; this means he will be able to respond to market changes quickly. [APP] ....
07 Identify and explain two advantages that Nuwan’s business might have compared to large retailers. [6]
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Re: 07 Identify and explain two advantages that Nuwan’s business might have compared to large retailers. [6]
[KN] Nuwans shop is small so his employees can give more attention to each customer.
[APP] His trained staff can give their opinion and advice on the right cricket or tennis products for each person who wants to buy. which something a large retailer with many customers might not do.
[AN] This makes customers feel valued and can encourage them to recommend the shop to others. This helps the shop build loyalty and repeat their sales.
.....
[KN] As it is a small business nuwan can respond faster to changes in the market.
[APP] For Instance; if a new tennis product becomes popular nuwan can order it immediately and start selling it which will give him an advantage over big stores that might take longer to do so.
[AN] He can quickly change his stock levels and introduce new products or change the products prices without needing approval from many managers unlike the larger retailers.
Examiner Comment; Stand Corrected.
[APP] His trained staff can give their opinion and advice on the right cricket or tennis products for each person who wants to buy. which something a large retailer with many customers might not do.
[AN] This makes customers feel valued and can encourage them to recommend the shop to others. This helps the shop build loyalty and repeat their sales.
.....
[KN] As it is a small business nuwan can respond faster to changes in the market.
[APP] For Instance; if a new tennis product becomes popular nuwan can order it immediately and start selling it which will give him an advantage over big stores that might take longer to do so.
[AN] He can quickly change his stock levels and introduce new products or change the products prices without needing approval from many managers unlike the larger retailers.
Examiner Comment; Stand Corrected.
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Re: 07 Identify and explain two advantages that Nuwan’s business might have compared to large retailers. [6]
[KN] Nuwan business can offer more better customer service.
[APP] Nuwan’s specialist sports shop has three trained employees who can give adivics to the customers of differant niche such as cricket and tennis products.
[AN] This could lead to higher customer satisfaction and loyalty than other business , who often cannot give the same level of personal,attention to the customers , helping Nuwan maintain his sales and compete effectively.
[KN] Nuwan business can respond quicly
[APP] Nuwan can easily adjust his product range such as adding new cricket stuff or specific tennis equipment without needing approval from managers, like large shop owners.
[AN]:This flexibility means he can bring in the products customers want much faster, which could make them come back to his shop. This can help Nuwan build loyal customers and still compete well with bigger retailers.
[APP] Nuwan’s specialist sports shop has three trained employees who can give adivics to the customers of differant niche such as cricket and tennis products.
[AN] This could lead to higher customer satisfaction and loyalty than other business , who often cannot give the same level of personal,attention to the customers , helping Nuwan maintain his sales and compete effectively.
[KN] Nuwan business can respond quicly
[APP] Nuwan can easily adjust his product range such as adding new cricket stuff or specific tennis equipment without needing approval from managers, like large shop owners.
[AN]:This flexibility means he can bring in the products customers want much faster, which could make them come back to his shop. This can help Nuwan build loyal customers and still compete well with bigger retailers.