Business

Business Studies Unit 2 24th May 2011

call into question 1

Calculate perceive Ltds net profit valuation reserve for 2008 only. (3)

clear Profit X 100
Revenue

0.57 X 100 = 4.6
12.38

Net Profit Margin = 4.6%

Analyse two influences on manufacturing business chocolate Ltds pricing decisions. (8)

Price is the part of the selling mix that determines how much money provide be leveld to customers when they buy goods and work.

Divine Chocolate Ltd has to kick in premium prices for their resources, which delegacy they have to sell their product at a higher(prenominal) price. If they did not charge these prices then they would not make whatever money and might even lose money.

On the former(a) hand, Divine Chocolate Ltd is a social enterprise. Their profits be given to charity or reinvested back into the business, so the prices they charge dont need to make them big profits. This enables them to pay premium prices for their resources, but they can charge competitive prices for their coffee bars.

Has Divine Chocolate Ltd made the right decision to subroutine Kuapa Kokoo as its major supplier of cocoa beans? (13)

A supplier is an individual, business or other organisation which provides goods or services to a customer or consumer.





In some ways, Divine Chocolate Ltd has made the right decision to use Kuapa Kokoo as its major supplier of cocoa beans. Divine Chocolate Ltds overall aim is growth. With Kuapa Kokoo owning 45% of the business and back up with key decisions, growth might be made easier. The affiliation between the suppliers and the business means that communication is easier, and the possibility of cosmos a lean producer is more accessible. Being a lean producer would help growth as it reduces cost due to not holding stock, which will increase profits. As profits are reinvested into the business, the bigger the profits are, the easier growth will be.

In other ways, Divine Chocolate Ltd should look at other suppliers for the business. Divine Chocolate Ltd sells fair trade chocolate...If you indirect request to get a full essay, order it on our website: Ordercustompaper.com



If you want to get a full essay, wisit our page: write my paper