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Applying business knowledge to a critical problem · Part 1 of 3
6 exam-style questions with model answers, plus 10 quick multi-choice questions — every question on this part of the standard, grouped by the 2 pages of notes they come from.
Write a full answer before you reveal the model one. That comparison is where the learning happens.
Explain why the emergence of a new competitor could be a threat to a business's economic sustainability.
An invented Bay of Plenty orchard sells premium organic fruit. A large new competitor is entering its market with lower prices.
Fully explain how this could threaten the orchard's future sales and profitability.
The same orchard's management argue that the new competitor is also an opportunity.
Justify, with TWO reasons, whether the emergence of the competitor is more of a threat or more of an opportunity for this business.
An invented outdoor education business has lost bookings after a new virtual-reality attraction opened nearby.
Identify TWO solutions the business could implement in response, and briefly describe each.
For the same business, explain how EACH of your two solutions would address the loss of bookings.
Justify, with TWO reasons, which of the two solutions is likely to be more effective for the outdoor education business.