Rory Byrne, a trained chef, is considering setting up his own food business - Leaving Cert Business - Question 7 - 2012
Question 7
Rory Byrne, a trained chef, is considering setting up his own food business. He has no business experience so he approached his friend Sarah Dunne, a business gradua... show full transcript
Worked Solution & Example Answer:Rory Byrne, a trained chef, is considering setting up his own food business - Leaving Cert Business - Question 7 - 2012
Step 1
Outline two reasons why a Business Plan should be prepared.
96%
114 rated
Only available for registered users.
Sign up now to view full answer, or log in if you already have an account!
Answer
To set out clearly the objectives and targets of the firm: A Business Plan helps Rory identify what he wants to achieve with his food business, providing direction and clarity.
To identify resources required: It allows Rory to understand what resources (financial, human, and physical) are necessary to launch and sustain his business.
Step 2
Explain three factors Rory should consider before choosing a source of finance.
99%
104 rated
Only available for registered users.
Sign up now to view full answer, or log in if you already have an account!
Answer
Purpose: Rory needs to determine whether the finance is short, medium, or long-term to align with his business needs.
Cost of finance: He should assess the interest charged (APR) associated with different financing sources, as this will impact his overall costs.
Risk involved: Rory must consider how manageable the repayments will be, especially in the current economic climate, and whether it could affect his business viability.
Step 3
Explain the following production options/processes and give one example in each case.
96%
101 rated
Only available for registered users.
Sign up now to view full answer, or log in if you already have an account!
Answer
Job Production:
This involves producing one-off goods to order. It typically requires highly skilled employees and can be costly due to the bespoke nature of the products. For example, a tailored suit.
Batch Production:
This method produces a certain amount of a product at once. Work is completed on each stage of production, and then moves to the next batch. For example, baking a batch of cakes in a bakery.
Step 4
Outline two risks and two rewards of setting up a Sole Trader business.
98%
120 rated
Only available for registered users.
Sign up now to view full answer, or log in if you already have an account!
Answer
Risks:
Unlimited Liability: If the business fails, Rory could lose personal assets such as his house.
Heavy workload/stress: As a Sole Trader, Rory would be responsible for all aspects of the business, potentially leading to burnout.
Rewards:
Complete control: Rory can make all decisions regarding the business without needing to consult anyone else.
Personal satisfaction: Successfully launching the business can provide a sense of achievement and validation.
Step 5
Explain the term ‘target market’.
97%
117 rated
Only available for registered users.
Sign up now to view full answer, or log in if you already have an account!
Answer
A target market is the specific group of people at whom a particular product or service is aimed. This group is usually characterized by common factors such as age, income level, gender, location, or lifestyle.
Step 6
Name two possible target markets that Rory might consider.
97%
121 rated
Only available for registered users.
Sign up now to view full answer, or log in if you already have an account!
Answer
Health-conscious individuals: This group may be interested in low-calorie foods or health-oriented meal options.
Local schools: Catering to school lunch programs could provide a steady customer base while promoting healthy eating.
Join the Leaving Cert students using SimpleStudy...
