Existing user?
Which one of the following is most likely to be an objective of a supplier of a business?
A High dividend payments
B Payment on time
C Promotion to a better paid job
D Lower prices for the goods they buy
Identify two objectives that the owners of a business may have.
Explain one objective that the local community may have for a business based in their area.
Marchwood Mill Ltd is a family-owned bakery in the village of Marchwood. It is owned by Meena and Ravi Chandra, who are the only shareholders. The bakery employs 45 people, most of whom live in the village, and it buys all of its flour from a farm two miles away. Its bread is sold to 60 local cafés and shops.
Meena and Ravi want to increase the dividends they receive from the business. They are considering spending £120 000 on automated ovens so that bread can be baked 24 hours a day. Lorries would then collect bread during the night as well as during the day. Some villagers have already complained about noise and traffic from the bakery.
Table 1: Marchwood Mill Ltd now and after installing the automated ovens (forecast)
| Now | After new ovens | |
|---|---|---|
| Employees | 45 | 37 |
| Loaves produced each day | 6 000 | 9 000 |
| Cost of producing one loaf | £0.46 | £0.38 |
| Lorry deliveries each week | 30 | 48 |
Explain one objective that the flour farm supplying Marchwood Mill Ltd may have.
Explain how the local community may be affected if Marchwood Mill Ltd installs the automated ovens.
You should use information in Item A in your answer.
Analyse two reasons why installing the automated ovens could cause conflict between the stakeholders of Marchwood Mill Ltd.
This question is about stakeholders. You do not need to refer to a particular business in your answers.
Which one of the following is most likely to be an objective of the employees of a business?
Identify two objectives that customers may have of a business.
Explain one way that employees can have an impact on a business.
A business decides to reduce its costs.
Identify and explain two stakeholder groups, other than shareholders, that may be in conflict with the business because of this decision.
Item A: Bramley Brew
Bramley Brew is a craft brewery run as a partnership by Nina Okafor and Rob Shanley. It is based in a converted barn in the village of Thornby, nine miles from Leeds. The business brews 1 200 barrels of beer a year, which it sells to 40 pubs across West Yorkshire and in its own taproom, open on Friday and Saturday evenings. Nina and Rob employ four people and buy their barley from a farm in the next village.
The partners have agreed to install new brewing tanks so that Bramley Brew can produce 1 500 barrels a year. Deliveries will increase from two to five lorry journeys a week. The partners are also deciding whether to open the taproom five evenings a week, which would mean employing two extra staff.
Some Thornby residents have formed a group called Quiet Thornby. They have complained to the local council about lorry noise early in the morning and about taproom customers parking in the narrow village streets. Quiet Thornby has asked the council to limit the hours the brewery can operate.
Explain one way the Quiet Thornby group could influence Bramley Brew.
Calculate the percentage increase in the number of barrels Bramley Brew plans to brew each year. Use the information in Item A.
Show your workings.
Analyse two ways Bramley Brew's plans could lead to conflict between its stakeholders.
Recommend whether Bramley Brew should open its taproom five evenings a week.
Give reasons for your answer.