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A-LevelBusiness StudiesBusiness and its environmentMay/June 2021Paper 2 Q130 Marks

Karen is a sole trader who operates a service business called Hot Bubblez (HB) from her own home. It is a laundry service in town P. Each day Karen spends the morning collecting laundry from customers' homes. Karen then washes, dries and irons the laundry and then delivers it back to customers' homes in the evening. She owns two washing machines, two drying machines and one iron. Each batch of washing takes approximately two hours to wash, dry and iron. Karen has completed some market research about which method of laundry households use in town P (see Fig. 1.1). There are 60000 households in town P. [Figure 1.1] Karen has 300 households that use HB's laundry service. Karen would like to employ someone to do the collections and deliveries. Karen has always relied upon customer recommendations to promote HB. However, she has not been able to gain any new customers and she thinks it is time for new promotion methods to be used. She would like to target the hotel laundry market. Table 1.1 shows some data about the local hotel market. [Table 1.1]

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About This A-Level Business Studies Question

This structured question appeared in the Cambridge A-Level Business Studies (9609) May/June 2021 examination, Paper 2 Variant 2. It tests the topic of Business and its environment and is worth 30 marks.

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