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Read the information supplied and answer the questions which follow - Leaving Cert Business - Question 1 - 2017
Question 1
Read the information supplied and answer the questions which follow. In November 2019, Aldi celebrated 20 years of operating in Ireland. Today the supermarket store... show full transcript
Worked Solution & Example Answer:Read the information supplied and answer the questions which follow - Leaving Cert Business - Question 1 - 2017
Step 1
Illustrate how a co-operative relationship between Aldi and its suppliers could arise.
Answer
A co-operative relationship exists where both parties work together to achieve a common goal. In this scenario, both Aldi and its suppliers gain mutual benefit. For instance, if a supplier provides high-quality raw materials and finished goods, Aldi can ensure superior products for its customers. In turn, Aldi supports its suppliers by offering fair prices, fostering a win-win situation that enhances both businesses. This collaboration could lead to improved efficiency and stronger business ties.
Step 2
Describe a competitive relationship between Aldi and rival supermarkets.
Answer
A competitive relationship between Aldi and rival supermarkets indicates that both businesses aim to attract the same customer base while pursuing different objectives. Aldi competes with other supermarkets like Tesco by focusing on several key areas:
- Quality of Goods: Ensuring high standards for the products offered.
- Price of Goods: Offering competitive pricing to attract price-conscious consumers.
- Customer Service: Providing exceptional service to create a better shopping experience.
- Choice of Goods and Services: Ensuring a wide variety of products to meet customer preferences.
Step 3
Outline how consumers benefit from the existence of competition between rival businesses.
Answer
Consumers benefit from competition among rival supermarkets in several ways:
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Reduced Prices: Supermarkets, including Aldi, lower their prices to attract consumers, leading to better deals for shoppers.
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Sales Promotions/Special Offers: Grocery chains frequently introduce special promotions, such as 'buy one get one free' or loyalty point systems, providing additional value to consumers.
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Improved Quality of Goods or Service: To maintain market share, supermarkets strive to enhance the quality of their products and services, benefitting consumers with a better overall shopping experience. For example, supermarkets may offer delivery services to enhance convenience.