Al Oruba International school 1* Semester 3 Cambridge Assessment International Education Cambridge IGCSE™(9-1) CARO Abludtahman Nohammed BUSINESS STUDIES Questions 2 and 3 are Paper 1 Short Answer and Data Response 60 minutes Question 1 is a Paper 2 Case Study You must answer on the question paper. You will need: Insert (enclosed) No additional materials are needed INSTRUCTIONS © Answer All questions. * Write your name in the box at the top of the page. © Write your answer to each question in the space provided * You may use a calculator (If necessary) © Do not answer quiz questions more than 45minutes to have enough time to upload. INFORMATION The total mark for this quiz is 10. * The number of marks for each question or part question is shown in brackets [ J. + Time allowed here includes 15minutes to printout, scan as a .df and upload This document has 5 pages.Al Oruba International school 1* Semester Peter’s Restaurants (PR) Peter has a successful restaurant business, called PR, which he set up 10 years ago. The business has a chain of 5 restaurants located in the centre of the main city, in high income areas. The business is in country Z which has had high levels of economic growth for the past 5 years. PR has increasing sales and profits. ‘The 5 restaurants are well-known for the good quality of the food, which is sold at high prices. Peter wants to expand the business and open a new restaurant with a takeaway service. He has written a business plan for this expansion. Peter thinks locating the new restaurant in an area with low incomes will be a new challenge for him. He also thinks there is a demand for takeaway food. These are meals that are prepared and then delivered to customers’ homes to be eaten there. Peter needs to decide which methods of sales promotion to use. ‘The new restaurant will need to employ 15 workers. There will be 3 chefs, 3 kitchen assistants, 5 people serving food, 3 delivery drivers and 1 office worker. Well-motivated employees will be important to the success of the new restaurant and takeaway food service. The expansion of the business should allow Peter to benefit from economies of scale. Peter is considering the following two locations for the new restaurant. Option 1: On a main road close to the city railway station. The area is very busy with many cars and buses passing by most of the day and evening. The cost of the building and changing it to a restaurant is $150000. The building is currently used as a warehouse. It s estimated that it will be 1 year before the restaurant will be ready to open Option 2: This is already a restaurant and will cost $150.000 to buy. It is located on a quiet road away from the city centre. The building is much smaller than Option 1 but is in a well-known and popular area for restaurants. The owner is only selling it because he wants to retire. It is estimated that it will take Peter 6 months to redecorate and change the restaurant to the PR style. Appendix 1 Questionnaire results for the new restaurant takeaway service Most popular response based ona 1 to § scale with § being very apestion’ important and 4 being not important at all How important is price when deciding to use a takeaway 3 service? How important are the type of meals available? 4 How important is the appearance of the restaurant? 1 How important is a delivery service with the meals? 5 How important are the opening times? 3 *You are advised to spend no longer than 15 minutes answering this section.xe aK Al Oruba International school 1* Semester 1. (a) Identify and explain two ways a business plan could help Peter when expanding his business. Way 1: lst... pix. 228®. aif. pulpase.ate.dice ction. Biglanator lc -cadseiatalradect ba Saaalearse (asoulies..aucilabla, the..nunber.ond-the.skills.ct. the.emplavecsy.howcthe,gaod: sail Jat. ald. chet. s Tote anne Way 2: Et...can..show..cash=Flew..nne Financial. cfiteces sim t-nnd...oanitaring the.Al Oruba International school 1* Semester 2 M&R Motors has 2 car showrooms. It buys old cars and repairs them before selling them to its customers. M&R is always trying to increase added value. M&R plans to open another showroom. The owner said: ‘Finding the right location is important. The new showroom will require a manager and | need to find someone with the right qualities.’ The job will be advertised in the local newspaper as shown in Figure 1. The advertisement will cost $5 for one week. Figure 1: Job advertisement M&R is planning to use for the new manager CAR SHOWROOM MANAGER REQUIRED + This successful business is expanding, The job involves managing the office and selling cars. You will be in charge of three workers who will pair the cars. Do you have the qualities we are looking for? We offer good pay and working conditions. For more information apply to M&R Motors (a) What is meant by ‘added value’? Added.value. .dikfien ad. the. caét.o niterial...aug kt: 2) (c) Identify four ways to measure the size of a business. Way 1 Woy 2: Number... er play way 3: Macks (4)i Al Oruba International school 1“ Semester LAK 3 (@) ‘Si and Ramon are friends. They want to set up a photography business. They would take pictures ‘at weddings, birthdays and other special events. The business will be a partnership. Based on their primary market research, Si believes there is enough demand. Ramon has produced a business plan which shows they need $8000 for a shop and $4000 for equipment. They plan to spend $500 ‘on promotion, but cannot agree on the best method to use. Identify and explain two advantages to Si and Ramon of having a business plan. Advantage 1: T+t.can. persuade..letders.and. investors. Explanation: Tif. cthey.taaenenithbusiness..plany..thepe..sill. provide. Finance ta your.hesings. (6)