Lecturer’s comments: Part (a) is extremely popular question with examiner. Note that Steve Skidmore even put one question in the P3 pilot paper. Its easy to write and score. I am pleased that many candidates obtained a pass for this question. Others who didn’t attempt this question is simply due to poor time management in the test. Part (b) requires the integration of external analytical studies and internal evaluation. Admittedly this is not an easy question but if you link both topics, you can obtain sufficient pass marks.
ANSWERS TO QUESTION 3 - A:
EXPORT
Advantages:
1. Expansion overseas with minimal investment in capacity as likely it means to extend production time to night shifts or 7 day-week. A “staged international expansion” style of cautiously export using minimal investment in physical resources.
2. Many choices of export markets are opened. Ashkol needn’t limit itself to just one country as it could easily re-direct export target countries.
Disadvantages:
3. Incur high transport costs involving ‘bulky furniture’ as this will put Ashkol in ...
Please obtain full answers from me in class.
Thank you
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