Stakeholders (AQA GCSE Business)

HelloFresh has experienced rapid growth and now has more than 1.45 million customers worldwide. In 2017 it became a public limited company and is now aiming to break even.

In the UK, the selling price for one HelloFresh meal is around £5 per person, with a minimum order value of £34.99. In a 2017 survey, 59% of people said they had never subscribed to a meal-kit delivery service because it was too expensive. However, the target market for HelloFresh expect a high-quality product and this requires a certain level of cost. For example, HelloFresh work with local suppliers to source seasonal, fresh food and its meal-kits are packaged mainly using recycled materials instead of cheaper solutions which have a more negative impact on the environment.

HelloFresh focuses its marketing activity online, including social media, to advertise meal-kits to its target market. HelloFresh sometimes combines advertising with a sales promotion, such as 50% off your first box, to attract new customers to its subscription service. Marketing is very important to HelloFresh, as it operates in an increasingly competitive environment. In 2018, one major competitor launched a TV advertising campaign costing £2 million. HelloFresh incurred marketing expenses of £140 million in 2016, which increased to £215 million in 2017.

Table 1: Adapted from HelloFresh Extract of Income Statement (Euros have been converted to pounds)

Fone ltd produces ultra-thin mobile phone cases and accessories. The managing director Anita Wang started the business with her three brothers 15 years ago. Each of them provided £50 000 capital. Each member of the family has an equal number of shares. The brothers take no part in the running of the business. Fone ltd plans to spend £2 million introducing one new product and expanding the product range of the business. This expansion will be funded by a loan.

Two possible options to expand the product range are:

1. introduce car phone holders

2. introduce headphones.

The business will recruit a team leader for the new production department. Anita is keen to attract an experienced manager. The salary and benefits for the job are above the average for the local area. She wants someone who can lead the new department effectively to help the success of the expansion.

Table 1 Extract of person specification for team leader’s job

Adventures currently employs eight staff in the UK, who are all keen sporting enthusiasts. Adventures’ employees are expected to sell holidays and take payments but also deal with all customer inquiries, such as advice on local facilities.

Sales have fallen recently and staff absenteeism has increased. Other rival businesses have increased their salaries. As John is unable to offer a competitive salary, employees have been asking for extra benefits. Discounts on holidays, commission or profit sharing are being used by different competitors.

John is drawing up a business plan to expand into ski holidays in the Italian resort of Folgaria. The business plan outlines the objectives of the business. Within three years, John aims to double profits and would like to have a 30% market share of ski holidays to Folgaria. To achieve this, the business would need to sell on average 2000 ski holidays each winter. Adventures will increase its number of employees to 10 to sell ski holidays, so the company is moving to a new office with more space. The new employees enjoy skiing; one of them will live in the ski resort for the winter and support customers when on holiday.

Krispy Kreme opened its first UK store in 2003 in London. The business sells doughnuts containing responsibly sourced ingredients in their stores, coffee shops, kiosks and cabinets in Tesco. Doughnuts can also be ordered online.

Krispy Kreme received planning permission from Glasgow City Council before converting a historic Glasgow building into their newest store. The store took £60 000 on its first day (three times Krispy Kreme’s previous record). Some customers travelled hundreds of miles. There were traffic queues on local routes for much of the first week.

The business supports the communities in which it operates. A policy of recruiting the long-term unemployed has worked really well.

In January 2015 Krispy Kreme relaunched their coffee products because Krispy Kreme aims to operate ethically. The coffee is sourced from Rainforest Alliance CertifiedTM farms in South America that are managed in a way that looks after the land and protects the planet. This coffee costs 20% more than coffees that do not carry the Rainforest Alliance seal.

Krispy Kreme sell their coffee at £1.90 per cup. Research shows that some coffee shop customers are willing to pay more for ethically produced coffee and that most of these customers expect to pay around 10% more for this type of coffee.

JCC Shoes is a manufacturer and retailer of shoes. The business has a reputation for making shoes that are strong, hard-wearing and comfortable. The business is facing increasing competition from other shops selling school shoes. Competitors’ shoes are regarded as more fashionable. In response to this competition, JCC Shoes has redesigned some of its shoes.

During the last year, there have been some newspaper reports of children being sent home from school for wearing JCC Shoes branded ‘Scope Shoes’. These shoes are sold as part of JCC Shoes’ new redesigned school range. Many schools are reporting that the shoes are too similar to trainers and do not meet their rules on uniform.

Over the last two years JCC Shoes has increased its use of social media to improve interaction with customers. Posts are made daily on new shoes and events, such as price discounts, and enquiries can be answered quickly. The business encourages customers to respond to its posts, add their own comments, and upload pictures and videos.

Krispy Kreme opened its first UK store in 2003 in London. The business sells doughnuts containing responsibly sourced ingredients in their stores, coffee shops, kiosks and cabinets in Tesco. Doughnuts can also be ordered online.

The business supports the communities in which it operates. A policy of recruiting the long-term unemployed has worked really well.

In January 2015, Krispy Kreme relaunched their coffee products because Krispy Kreme aims to operate ethically. The coffee is sourced from Rainforest Alliance Certified TM farms in South America that are managed in a way that looks after the land and protects the planet. This coffee costs 20% more than coffees that do not carry the Rainforest Alliance seal.

Krispy Kreme sell their coffee at £1.90 per cup. Research shows that some coffee shop customers are willing to pay more for ethically produced coffee and that most of these customers expect to pay around 10% more for this type of coffee.

All new employees follow an induction programme. This covers understanding the importance of quality and health & safety procedures. Krispy Kreme aims to keep the top hygiene rating of 5 at all its stores.

Krispy Kreme wants staff to enjoy their work and take pride in their job. Employees focus on:

• Being passionate about their work, and believing in the quality products

• Demonstrating initiative, creativity and problem-solving skills.

Incentive schemes and a national annual awards ceremony are organised to celebrate successes. Employees receive a 20% discount on coffee.

There are formal training sessions as well as support from line managers, peers and trainers. Additionally, Skills Workshops and Talent Workshops offer support for those keen to further their careers. There are many career opportunities and internal promotions are frequent. Krispy Kreme is proud that over 60% of senior positions are recruited internally.