Mp3 players

1.) If the income tax decreases, more money would be in the public spending
sector, having said this more people would be likely to purchase such a
product. It mentions in the case study that the mp3 player is usually paid
in credit , if people have more disposable income then they may pay by
cash and this will mean that the business acquires the money directly ,
leading to poor liquidity overall.
2.) The business may not be effective by take-away food increasing in VATA,
however employees will. If the tax was to go up, during lunchtime breaks
employees will have to pay the extra expense.
3.) For the business, if the government invest in education and training, it is
more likely that better educated people can be employed into the
workforce allowing the business to have good staff and therefore provide
a good service.
4.) The business will not sell as many mp3’s due to public spending being
lowered. In terms of credit it may be bad for liquidity as people may not
be able to pay back quickly
Netto

1.) This could be a bad factor for the business, as being that it is a budget
supermarket with the public has more disposable income; they may opt
for more ‘superior’ brands in favor of Netto.
2.) If vat was to be put up on take away food, more people will be discourage
to eat fast food due to the expense, instead, they might opt for products
from Netto to replace fast foods, which ultimately will lead to more
revenue for Netto for the increased demand
3.) With education and training investment, employees may set the target
higher than working for Netto and therefore could lead to employment
issues for, and perhaps employing people with bad work ethic
4.) People who shop in more superior stores, may have to compromise this
as if interest rates where to increase people may be forced to shop at
budget supermarkets which will lead to more spending in the
supermarket, however there are issues with acquiring supply.
5.) Less sales would be apparent in terms of alcohol, although the nature of
the product is inelastic and if the prices where to raise there may be little
difference in demand.

Organic fast food

1.) More public expenditure would be apparent, due to increase in tax,

therefore people would be open minded to spend more money and
perhaps new and innovative food like organic fast food will be tried,
leading to increase sales revenue.
2.) If an increase in VAT was put on fast food, less people would purchase fast
food and especially organic food, this will lead to a negative effect on
behalf of the business
 3.) This may lead to better attitude within potential work forces as more
funding in education and training will lead to a better service provided
4.) People will not be willing to spend money on unfamiliar products and
therefore opt for more generic food, which will lead to fewer sales for the
business.
Management training program