Fig. 1 shows a mobile coffee trailer used by North Quay Coffee at weekend markets. The owners are deciding whether their main aim should be business growth ...
Question 1 Report
Fig. 1 shows a mobile coffee trailer used by North Quay Coffee at weekend markets. The owners are deciding whether their main aim should be business growth or improving the quality of service. They have noticed that queues are long at busy times and that some customers leave before buying a drink.
(a) Identify one objective that would support an aim to improve service quality. [1]
(b) Explain one way achieving this objective could increase profit. [2]
(c) Which stakeholder may be dissatisfied if the owners employ fewer workers to cut costs? [1]
Answer Details
Labelled answer diagram:
(a) A suitable service-quality objective is to serve 90% of customers within five minutes. Reducing average waiting time or reducing incorrect orders would also be valid because each gives a clear focus for improving customers' experience. [1]
(b) Faster service means that fewer customers leave the queue before buying a drink. [1] More completed purchases increase sales revenue and can increase profit, provided that the cost of improving service does not rise by more than the extra revenue. [1]
(c) Employees or workers may be dissatisfied. Employing fewer people may reduce wage costs, but it can mean fewer jobs or more work for remaining staff. [1]
Download The App On Google Playstore
Everything you need to excel in your exams
