CIE IGCSE Topical Past Paper 1

3.1 Marketing, competition and the customer

045/12/M/J/2024

Nicky wants to be a successful entrepreneur. She plans to start up a travel business specialising in walking holidays. Nicky will be operating in a niche market. She is preparing a business plan to help with her decision-making. Nicky has been told government support is available for business start-ups. She knows building customer relationships will be important.

(b) Identify two ways a business can build customer relationships. [2]
Way 1:
Way 2:

(c) Outline one benefit and one limitation to Nicky’s business of operating in a niche market. [4]
Benefit:
Limitation:

045/12/M/J/2024

IDT manufactures clothes for the mass market. It is a multinational company with factories in 4 countries. IDT has short-term and long-term financial needs. The Finance Director is analysing IDT’s statement of financial position. An extract is shown in Table 3.1. He has been asked to calculate working capital and to explain how an increase in non-current liabilities might affect IDT.

Extract from IDT’s statement of financial position ($ million)
	2022	2023
Current assets	380	420
Current liabilities	250	280
Non-current liabilities	300	400

Table 3.1

(a) Define ‘mass market’. [2]