Question detail
SolarSprout serves tourists while improving quality control; the case evidence includes average order value of ?3,058, sales of 773 units, and a 11% change in costs or demand. Assess how the business should respond to Explain outsourcing and external growth through mergers and takeovers.
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At a glance
Question
Type
exam_style
Style
Topic
Expanding a business
Question
SolarSprout serves tourists while improving quality control; the case evidence includes average order value of ?3,058, sales of 773 units, and a 11% change in costs or demand. Assess how the business should respond to Explain outsourcing and external growth through mergers and takeovers.
Answer
Use the command word first. Apply outsourcing, takeovers, mergers to SolarSprout serves tourists while improving quality control, 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 owners, uses figures such as ?6,458 or 11%, and reaches a supported judgement based on the business objective.
Explanation
Structure the judgement carefully. This explanation is anchored to Methods of expansion and Expanding a business 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
Methods of expansion common mistake 1
Giving a vague answer instead of directly addressing: Explain outsourcing and external growth through mergers and takeovers..
Answer by clearly explaining how to explain outsourcing and external growth through mergers and takeovers..
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