Question detail
SolarSprout serves online shoppers while training staff; the case evidence includes customer retention of ?11,008, sales of 333 units, and a 33% change in costs or demand. Assess how the business should respond to Explain why businesses create plans, including setting up a new business, raising finance, setting objectives and organising business functions.
Try the question, check the answer, then read the explanation to understand the curriculum point.
At a glance
Question
Type
exam_style
Style
Topic
Business planning
Question
SolarSprout serves online shoppers while training staff; the case evidence includes customer retention of ?11,008, sales of 333 units, and a 33% change in costs or demand. Assess how the business should respond to Explain why businesses create plans, including setting up a new business, raising finance, setting objectives and organising business functions.
Answer
Use the command word first. Apply objectives, finance, functions to SolarSprout serves online shoppers while training staff, then explain how the decision changes labour productivity, costs, revenue, cash flow, or stakeholder outcomes. A balanced response considers both the benefit and the risk for managers, uses figures such as ?14,408 or 33%, and reaches a supported judgement based on the business objective.
Explanation
Structure the judgement carefully. This explanation is anchored to Purpose and sections of business planning and Business planning because it links the command word to scenario evidence, commercial reasoning, financial impact, and stakeholder consequences. It also separates cash flow and profit, which helps the final judgement stay precise.
Common mistake
Purpose and sections of business planning common mistake 1
Giving a vague answer instead of directly addressing: Explain why businesses create plans, including setting up a new business, raising finance, setting objectives and organising business functions..
Answer by clearly explaining how to explain why businesses create plans, including setting up a new business, raising finance, setting objectives and organising business functions..
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