5

SECTION A
Answer two questions from this section.
1. (a) Outline the impact of Todos os Mercados in St. Laurent
on two external stakeholders. [4 marks]

Local businesses a lot of local businesses suffer as they cannot compete
with the prices and marketing of TM
Customers customers will be able to buy goods in one place and save a lot
on their weekly expenditure.
Pressure groups Are concerned about the TMs lack of CSR and are
focusing their efforts on trying to get them to be more ethical.
Government The country is going through a recession so the government
will be please that TM is offering job opportunities and allowing families to
reduce their outgoings.
Henris family Henris family will be glad of the income but will suffer from
the fact that Henri is demoralized from working at TM day after day causing
tension.

1 mark for each correct external stakeholder (maximum of 2 marks)
1 mark for each accurate outline of the impacts (maximum of 2 marks)



(b)

Analyze the reasons that made the Trouv business go

into liquidation (line 13)


[6 marks]

No external finance Not being able to gain external finance will mean that
they cannot invest to develop the business. This growth is needed to
compete with multi-national companies like TM in order to be a
presence in the market place.
Economies of scale The Trouve business would not have the same
economies of scale as TM which is a large multi-national company.
Therefore the costs per unit will be higher forcing the Trouve business
to charge a higher price in order to make a profit. However, customer
will be attracted to the low prices of TM, the revenue of the Trouve
business will have declined.
Marketing Smaller businesses will not be able to afford the same
promotional mix as the large multi-national business meaning that TM
would have had more exposure that the Trouve business which could
have prevented new customers purchasing from the Trouve business.
Convenience TM is convenient for customers as they can purchase virtually
all of their needs under one roof. With lifestyles changing in Europe to
become more of a fast pace this will be appealing for consumers of
today meaning they will be enticed away from the Trouve business by
TM.

Henris father could have lacked ambition to develop the business meaning
that it was over taken by newer business. His unique selling point of a
personal service probable added to his costs meaning the profit margin
was low.
Or any other relevant factor.
Award a maximum of [2 marks] if relevant factors are analyzed with no application.
Award a maximum of [4 marks] if the response lacks depth in the analysis.
Award [6 marks] if the analysis has depth and is applied.

SECTION B
Answer the following question.
4.

c) Explain one advantage and one disadvantage to TM of
creating a force field analysis to help them with the decision
of whether to go ahead with Option A or not. [4 marks]

Advantages:
It provides a visual summary of all the various factors supporting
and opposing the idea.
All the data that has been collected regarding the potential decision
is consolidated into a single graph.
Expands the evaluation beyond the data itself to look at qualitative
factors that may have an impact on the success or failure of the
decision.

Disadvantages:
Requires the full participation of everyone involved to provide the
accurate information required for an effective analysis.
When full participation isn't possible as in TM with its autocratic
approach, this results in an analysis that doesn't provide a realistic
picture of the supporting and opposing forces.
There is the possibility that the analysis won't result in a consensus
among the group. It may even cause a division in the group
between those who support the decision and those who oppose it.
Difficult to accurately quantify weightings of each force. Weightings
may be subjective.

Or any other relevant factor.

1 mark for advantage, 1 mark for explanation.
1 mark for advantage, 1 mark for explanation.