Management · AS Level Business

Kamal is a successful social media influencer. In 2020, Kamal launched his own social media platform, called Influencer Xperience (IX), operating in the quaternary sector of the economy. Kamal targeted other social media influencers with IX’s promotion. IX allows influencers to manage and publish videos on its platform. The unique selling point of IX is that it provides the influencers with better and more detailed information than any other platform. 5 IX is a free-to-use service for social media influencers. IX charges other businesses to advertise on the platform. The price of advertising space is set each month, using dynamic pricing, based on how many users click on an advertisement (price per click). Table 1.1 shows some data about advertising on IX’s platform.

IX’s operations are labour intensive and Kamal describes his management style as laissez-faire. IX has 30 employees who are all managed by Kamal (see Table 1.2).

CT is a co-operative that produces and sells a range of wooden toys, such as puzzles, cars and dolls. The co-operative was formed in 2020 by a group of 12 people who share a passion for making toys. They wanted to work together to create quality products that would appeal to children and parents. No one person takes on the role of manager; instead, they share the traditional manager functions between them. 5 CT operates from a large workshop in a rural area of country Z, making toys using labour-intensive techniques. CT uses locally sourced wood that is certified as eco-friendly. CT also uses natural paints and finishes that are safe and non-toxic for children. Table 1.1 shows CT’s output in 2024.

CT sells its products online through its own website and social media platforms, as well as through some independent retailers who specialise in ethical products. The co-operative 15 also attends various trade fairs and exhibitions to showcase its products and network with potential customers and suppliers. CT has never researched customer wants. CT faces some challenges in its current operations. These challenges include:

• high costs of production
• a long lead time 20
• a requirement for skilled workers. CT is considering changing to flow production to overcome these challenges.

Reliable Car Repairs (RCR) is owned by Freya and her brother Kye as a partnership. The business was set up five years ago in city B and repairs a wide range of cars. Freya recently carried out some primary market research. The qualitative data from the market research showed that customers like the speed of RCR’s service as many repairs were completed within 24 hours. 5 RCR’s market share has increased annually over the past five years. The total sales in the market in 2023 were $700 000. Table 2.1 shows RCR’s data for 2024.

The owners are always looking to improve the performance of the business and have an objective of increasing efficiency. Freya and Kye have no experience of repairing cars and so employ two mechanics to carry out this work. The mechanics have both been employed by the business since it was set up. Kye supervises the mechanics using a democratic management style. 15 The business holds a large quantity of inventory as different cars need different components. The business buys components from two suppliers which have both supplied RCR since it was set up. The partners are thinking of introducing Just in Time (JIT).