Business WBS13/01 January 2023

Edexcel International AS/A Level Business (WBS) Jan 2023

معلم موافق رایگان بودن است.

1. Brompton Bikes diversification through Brompton Bikes Hire subscription model, targeting new markets, increasing customer base, monthly fees including servicing, insurance, and discounts, enabling market penetration and product innovation.

2. Investment in £100m new factory in Ashford, capacity expansion from 80,000 to 200,000 bikes per year, employee growth from 850 to 1,500, location advantages near Channel Tunnel and Dover port facilitating export logistics, aiming at economies of scale and operational efficiency.

3. Financial indicators: 2021 revenue £76.1m, gross profit £37.3m, operating profit £9.6m, profit for the year £8.4m, current assets £36.4m, current liabilities £11.2m, liquidity measure current ratio relevant for operational stability.

4. Application of Ansoff Matrix showing product development with electric folding bikes, market development via hire scheme, emphasizing growth strategy alignment and risk management.

5. Advantages of simple payback method for Brompton Bikes factory investment: ease of calculation, focus on liquidity and risk minimization, straightforward appraisal aiding quick decision-making in capital budgeting.

6. Internal economies of scale expected from new factory due to increased production scale, specialization, improved technology, supplier negotiations, marketing and IT expertise expansion, cost per unit reduction enhancing competitive advantage .