Globalisation (AQA GCSE Business)

Case Study

Devine Jewellery (DJ) plc is an international business that sells a range of luxury jewellery items such as bracelets, necklaces and rings. The business was started by British jewellery designer Dev Anand who developed a unique selling point (USP) of jewellery that can be personalised with a message or initials. This USP has attracted customers from all over the world. All DJ products are crafted from high quality gold and gemstones. This has enabled DJ to create an exclusive brand image that has attracted wealthy customers.

As a profitable business, DJ’s shareholders receive dividend payments each year. Dev understands that his business must be willing to respond to current trends to maintain sales levels. Silver jewellery is very common as it is much more affordable than gold. Reputable brands already sell jewellery in a range of precious metals, including silver.

Dev is keen to produce a new jewellery collection using silver instead of gold. The new collection would not be personalised or include gemstones. The current selling price of DJ’s best-selling gold bracelet is £4700. A silver version of this bracelet would be sold for £1175.

Case Study

DJ imports and exports goods to and from the UK where it is based. One of its most successful export markets is the USA, where it has 14 stores. It also imports diamonds to the UK from India as they are much cheaper to buy from here than other countries. This means DJ can make a larger profit on each item sold. DJ only has stores in large cities, so customers mainly use the website to find information on jewellery items.

DJ has always advertised in fashion magazines read by its wealthy target market but wants to raise its profile further. Other jewellery businesses are promoting their brands by sponsoring big events such as sports competitions, festivals and awards ceremonies. DJ would like to sponsor a fashion show in London for a world-famous British designer with an expensive clothing range. The designer has agreed that if the sponsorship goes ahead, the models will all wear jewellery from the DJ collection. As well as attracting reporters and photographers from around the world, the fashion show will be streamed live on the Internet and shown on television.

Case Study

RB Books sells hobby information books in the UK where it is based. It imports many books to the UK from India and Europe, storing them in a large warehouse before photographing parts of the book and then listing them on its website. It then sells them on the UK market. Over the past three years, RB Books has seen its sales of books fall as customers have been purchasing similar books directly from the suppliers in India and Europe.

Case Study

RB imports and exports hobby information books to and from the UK where it is based. One of its most successful export markets is the USA, where it makes 65% of sales. It also imports many books to the UK from India and Europe. This means RB can make a larger profit on each item sold. RB only sells books online and 85% of customers purchase books using m-commerce.

Case Study

Rutland Roses Limited specialises in producing high quality rose plants for gardens and sells its plants across the UK in garden centres and online.

Rutland Roses has a business growth target of 10% over the next two years. It has a budget available to increase promotion and develop the product range.

The UK market is saturated with many competitors. The roses last for many years once planted, so the opportunity for repeat sales through customer loyalty is limited. Furthermore, many new homes being built in the UK have very small gardens and often require low maintenance garden accessories rather than plants. However Rutland Roses have recently developed a range of plants that require minimal maintenance and flower for the whole of spring and summer.

An alternative option for growth is to begin exporting their roses to France, where there is a growing interest in English roses. The Managing Director, Keara, has experience selling products abroad from a previous business venture some years ago. However, she is concerned about the rules and regulations involved in exporting live plants.

Case Study

Ikea is a Swedish firm that sells ready-to-assemble furniture and household goods. Many of its furniture products are made from wood. Its products are competitively priced because they operate in a crowded market. Costs must be kept as low as possible and therefore raw materials are often imported from cheaper countries. However, Sweden has its own currency (Krona) and many of the countries from which it imports use the Euro.

Ikea sourced 28% of its wood from Poland and 9% from Sweden in 2023.

Case Study

Just For Fun is a small business owned and run by Jamila. She makes pet beds and blankets that sell online via platforms such as Etsy and eBay. Just for Fun products have pet names embroidered on the items in an attempt to distinguish them from large stores such as B&M Homewares and The Range, which sell lesser-quality pet products at low prices. In recent months, Jamila has noticed a fall in sales and is considering cutting costs to enable her to compete on price.

Just for Fun products are made from UK sourced fabrics, which are high quality and long lasting, but expensive. Just For Fun reviews frequently comment on the long-lasting qualities of her products and many customers recommend the products to their friends.

Jamila is considering cutting costs by sourcing her fabric from a supplier in Turkey, where cheaper cotton is available. However, she will have to buy 6 month's supply of fabric to satisfy the supplier's minimum order quantity. She has limited storage facilities at her premises.

Case Study

Rutland Roses Limited specialises in cultivating high quality rose plants for gardens and sells its plants across the UK in garden centres and online. Rutland Roses has a business growth target of 10% over the next two years. It has a small budget available to increase promotion and develop the product range.

The UK market is saturated, with many competitors offering similar products. Roses last for many years once planted, so the opportunity for repeat sales through customer loyalty is limited. Furthermore, many new homes being built in the UK have very small gardens and often require low maintenance garden accessories rather than plants. However, Rutland Roses has recently developed a range of plants that require minimal maintenance and flower for the whole of spring and summer.

An alternative option for growth is to begin exporting their roses to France, where there is a growing interest in English roses. The Managing Director, Keara, has experience selling products abroad from a previous business venture some years ago. However, she is concerned about the rules and regulations involved in exporting live plants.