20% of people who attended the bowton mountain festival came from the EU. BMF has supplies from China.
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Advantage for bmf is promoting protection of the environment
Give the festival a good reputation as they're ethical therefore increase customers.
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What impact will cuts on bowton festival effect the local community?
Fewer services for people in Bowton. Could involve people losing their jobs.
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How will BMF be affected by a rise in UK income tax?
Consumers may not have enough money to pay for the tickets, therefore less sales for BMF.
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How would the festival help the town?
The festival will need more workers over the period therefore it will bring jobs to the town.
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Whats two external costs that might arise from the festival?
The waste after the festival. && The noise pollution.
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Advantage of a grant for BMF
Don't have to pay it back therefore they have more money to grow the festival.
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Advantage and disadvantage of flow production.
Adv: Labour costs are low as processes are automated. Opportunity for economies of scale. Dis: Expensive to set up due to specialist equipment. May be difficult to adapt.
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Why would the chinese supplier use batch production for the tshirts?
To make lots of different designs to meet different customers needs.
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What is one method of quality control that the UK supplier might use
Random sampling.
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What is diseconomies of scale?
The average cost of producing the product to fall as a business increases its output.
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What is a type of diseconomies of scale that chinese suppliers might suffer from?
Find it harder to communicate with eachother because its difficult to maintain an effective flow of information between departments.
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Advantage and disadvantage of cashflow forecast to BMF
Adv: To see if there are any problems with money so they can get finance. Dis: Its only a prediction therefore they could take out money that they don't need.
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How much finance BMF will need to fund the shortfall in July?
£11,200
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What is an overdraft?
withdraw more money from its bank than there is.
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Advantage && Disadvantage of Trade credit
Adv: Don't charge interest therefore BMF will be able to use the extra money for improving the festival. Dis: Suppliers may not allow this as the festival is for a long period of time.
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Advantage && Disadvantage of Bank Loan
Adv: Able to pay back all the tshirts with the loan. Dis: High interest rates therefore may take all profit.
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How does competiton affect consumer choice?
Customers have the chance to look around for the best price and quality.
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How does competition affect the prices charged?
The prices may drop as business's are competing to get customers to buy there products.
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How does competition affect profits?
A decrease in profit for businesses as customers shop around to find the best price therefore businesses have to drop prices.
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What cost do Spirit Adventure have of carrying higher level of stock?
They will have to sell the stock in order to make a profit therefore decrease in profit could lead to not being able to afford the cost.
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Other cards in this set
Card 2
Front
Advantage for bmf is promoting protection of the environment
Back
Give the festival a good reputation as they're ethical therefore increase customers.
Card 3
Front
What impact will cuts on bowton festival effect the local community?
Back
Card 4
Front
How will BMF be affected by a rise in UK income tax?
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