A2 Business Studies Unit 3 Strategies for Success AQA

Student Workbook Teach er Notes● The environmental impact of the project may be important. Old factories may be inefficientusers of energy, so a new location may help the environment, but not if the new factory isbuilt on a greenfield site.● A high-profile new building may enhance the image of a business, but equally it may causeadverse publicity if it is seen to be affecting other stakeholders in an unfavourable way.Such issues need to be considered alongside the quantitative factors.Marketing strategiesUnderstanding marketing objectives1 The correct order is: corporate aims, corporate objectives, marketing aims, marketing objectives,marketing strategy.2 Increase market share by 6% within 2 years; achieve sales revenue of £34 million thisfinancial year; improve the level of ‘repeat purchases’ by 15% next month.3 This may lead to a lack of coordination within the business, as the marketing department’sstrategy will not be consistent with the other functional areas and the business as a whole.Consequently, the marketing strategies are likely to fail.4 ● Clear objectives will allow the retailer to assess whether it has succeeded. By comparingthe actual outcome with the target (e.g. a given level of sales), success or failure can beascertained.● Clear objectives may motivate the retailer’s workforce, particularly if workers are rewardedfor their ability to achieve their targets. These rewards do not necessarily have to befinancial.5 a Two possible causes are:● A low-price strategy by the computer manufacturer. This has led to sales volumeexceeding the original target. However, the sales value has fallen below the objectiveset, possibly because the higher sales volume has been offset by a price freeze for theproducts sold.● Competition. The actions of competitors can have a major impact on the sales of abusiness and therefore its ability to hit its marketing objectives. In this case the computermanufacturer was expecting high sales growth from new products. However, this wasnot achieved, possibly because a competitor introduced a new product of its own.b Two possible implications are:● Financial difficulties because the business was expecting to use its higher sales revenueand the profit from new products in order to support other new ventures, such as theopening of a new factory.● Damage to the business’s reputation. This might hit sales as consumers lose faith in thebusiness or it may lead to higher staff turnover if workers become concerned about theirfuture in the business.AQA A2 Business Studies7