Item A: MetroMeal delivers prepared lunches in six UK cities. It wants to grow into four other cities.
State one method of external growth.
MetroMeal could take over QuickBite, a rival operating in the four target cities. QuickBite has 90,000 active customers but made a £2.5 million loss last year.
Outline one benefit to MetroMeal of taking over QuickBite.
MetroMeal is considering two growth options:
Option 1: Take over QuickBite for £24 million, financed partly by a loan
Option 2: Expand organically by launching in one new city at a time
Justify which one of these two growth options MetroMeal should choose.
37 exam-style questions on Edexcel GCSE Business 2.1 Growing the business, covering 2.1.1a Internal (organic) growth, 2.1.1b External (inorganic) growth, 2.1.1c Ownership for growing businesses, 2.1.1d Finance for growing and established businesses, 2.1.2a Why aims and objectives change, 2.1.2b How aims and objectives change, 2.1.3a The impact of globalisation on businesses, 2.1.3b Barriers to international trade, 2.1.3c How businesses compete internationally, 2.1.4a Ethical and environmental considerations, and 2.1.4b Pressure group activity and the marketing mix. Each one has a worked solution and a mark scheme showing where the marks go.