The Sales Process & Customer Service (OCR GCSE Business): Exam Questions

NEXT plc

NEXT plc. is a clothing retailer selling clothing, footwear, accessories and home products through its high street shops and online across the UK. NEXT plc. understands the importance of creating good relationships with its customers and constantly tries to improve its levels of customer service. Customer service is important for NEXT plc.

For NEXT, responsible business behaviour includes addressing key business-related social, ethical and environmental impacts in a way that aims to bring value to all its stakeholders, including its shareholders. NEXT plc. sources products from many suppliers across the world. The company takes its environmental and ethical responsibilities very seriously.

Zara

Zara is a global fashion brand based in Spain. Zara is best known for the speed and frequency it can get its new clothing ranges into its online shop and 2270 stores. Approximately 50% of Zara’s clothes are manufactured in Spain; the rest come from other European countries, or from Asia and Africa. Like most firms in 2020, Zara experienced a fall in sales. Zara’s global sales revenues in 2019 were €19 954 million, but in 2020 these fell to €14 129 million. However, during this period Zara’s online sales increased by approximately 75%, as consumer buying habits changed in favour of e-commerce.

Zara can get new clothing designed, manufactured and delivered to its stores within 15 days. It does this by buying fabric in large quantities from suppliers in Europe, which helps keep its variable costs low. This means that it is delivered quickly to its factory in Spain, where it can then be made up into the new designs.

Zara’s highly responsive supply chain is central to its business success. This means it can change its clothing designs on average every two weeks, while competitors change their designs every two or three months.

AstraZeneca plc

AstraZeneca plc (AZ) is a multinational pharmaceutical company that operates in over 100 countries around the world. AZ develops treatments for a range of diseases. It sells its medicines and vaccines worldwide. Its headquarters are in Cambridge, England. In 2021 AZ’s sales revenue was £37 417m, from which it made £24 980m gross profit.

AZ has a code of ethics, which is at the centre of everything that it does. The company has approximately 75 000 employees worldwide; 10 000 of these work in its three research and development centres.

AZ uses technology throughout its operations to provide high quality products for its customers. These customers include doctors, hospitals and governments from around the globe.

In the UK, AZ has changed the way it sells its products. Previously, sales staff would visit medical professionals; now it uses a call centre and website where medical professionals can order products and samples. AZ says this means it can now provide a high quality service that meets the needs of its customers at a lower cost.

Quality Textiles (QT)

Quality Textiles Ltd (QT) is a medium-sized, established business that manufactures clothes from its factory in Birmingham. Its clothes are sold to retail shops around the country. A summary of its profitability is shown in Table 1.

Table 1

QT wants to expand the business by using a bank loan to buy a large van to help with deliveries. It will use average rate of return (ARR) to assess which model of van it will buy. Further information is provided in Table 2, below. The new van will mean employing a driver, in addition to the five drivers already working for the business.

Table 2

QT’s cash flow forecast suggests it may struggle to pay the monthly van loan repayment. QT’s closing bank balance for the last five months is shown in Fig. 1.

QT had problems earlier in the year. It found its way into the local newspaper as part of an investigation into ethical practices in its business activities and supply chain.

Barclays plc

Increased globalisation has led to more firms becoming multinational companies. Barclays plc is a multinational banking company. Its headquarters are in London. One of the bank’s core values is integrity – it tries to act fairly, ethically and openly in all it does.

Barclays plc’s personal banking division provides banking services to the general public. These services include providing a place to save and borrow money, as well as a place where customers can obtain advice on financial matters. In 2020 Barclays plc had 24 million UK personal banking customers.

Banks are typically among the first industries to embrace technological advances. Barclays plc has been able to make use of e-commerce by selling loans, savings accounts and insurance through its websites. The bank has also invested in computer technology to provide online banking services to its customers. Online banking services allow customers to access their bank accounts on the Internet. Customers can carry out banking transactions, pay off credit cards or deposit savings 24 hours a day, worldwide. Online banking is one of the fastest growing areas of Internet activities, see Fig. 1, below.

Barclays plc

Increased globalisation has led to more firms becoming multinational companies. Barclays plc is a multinational banking company. Its headquarters are in London. One of the bank’s core values is integrity – it tries to act fairly, ethically and openly in all it does.

Barclays plc’s personal banking division provides banking services to the general public. These services include providing a place to save and borrow money, as well as a place where customers can obtain advice on financial matters. In 2020 Barclays plc had 24 million UK personal banking customers.

Banks are typically among the first industries to embrace technological advances. Barclays plc has been able to make use of e-commerce by selling loans, savings accounts and insurance through its websites. The bank has also invested in computer technology to provide online banking services to its customers. Online banking services allow customers to access their bank accounts on the Internet. Customers can carry out banking transactions, pay off credit cards or deposit savings 24 hours a day, worldwide. Online banking is one of the fastest growing areas of Internet activities, see Fig. 1, below.

John Lewis & Partners

John Lewis & Partners (JLP) is a chain of department stores that stocks a wide range of products from clothing to home furnishings. As a result it is always looking for high quality suppliers for its products.

JLP uses face-to-face selling in its stores. Staff in the electrical department are trained to have good product knowledge. These products include a wide range of computers, televisions and washing machines. However, JLP’s recent growth has come from e-commerce.

JLP has a wide range of suppliers. It is important that the right supplier is chosen, so JLP will take time evaluating new suppliers and will review existing suppliers regularly so that it can continue supplying high quality products to its customers.

John Lewis & Partners

John Lewis & Partners (JLP) is a chain of department stores that stocks a wide range of products from clothing to home furnishings. As a result it is always looking for high quality suppliers for its products.

JLP uses face-to-face selling in its stores. Staff in the electrical department are trained to have good product knowledge. These products include a wide range of computers, televisions and washing machines. However, JLP’s recent growth has come from e-commerce.

JLP has a wide range of suppliers. It is important that the right supplier is chosen, so JLP will take time evaluating new suppliers and will review existing suppliers regularly so that it can continue supplying high quality products to its customers.

Marks and Spencer plc

Marks and Spencer (M&S) is one of the UK’s leading retailers. It is committed to making every moment special for its customers, through its high quality, own-brand food, clothing & home products.

M&S has an ethical programme called ‘Plan A’. This was relaunched in 2017 with three new objectives for 2025:

1. ‘Nourishing our wellbeing’ – including looking after staff and their needs.

2. ‘Transforming local communities’ – including supporting staff who want to volunteer in charities.

3. ‘Caring for the planet we share’ – including developing better recycling for packaging.

In 2017, 60% of M&S’s revenue came from the sale of food, which it sells through its 1025 UK stores as well as through e-commerce on its website.

The majority of the food it sells comes from one of its 283 ‘food factories’ located around the country. The Montana Bakery is one of these factories. It produces speciality breads, rolls, garlic breads and pizza bases for retailers and sandwich makers. The bakery has grown and has moved to a larger factory, where it is considering switching from batch production to flow production and automating some of the production.