Direct News (DN) Shila and Lucy own and manage DN, an online publishing business. DN produces a daily online local newspaper called QNews. Readers pay a subscription to access QNews. DN's mission statement is: 'to be a daily community newspaper for local people, about local people'. DN recently tested a monthly online magazine aimed at the 18–30 age group called QLine. DN's plan is to stop publishing QNews and produce only QLine. Secondary market research suggests QLine will be popular with national businesses wanting to promote their products. Shila is aware that revenue from online newspapers is decreasing. However, she has found national market research data about online monthly magazines (see Table 2.1). Table 2.1 National revenue for online monthly magazines | Revenue source | 2020 (m) | 2021 (m) | 2022 ($m) | |:---|:---|:---|:---| | Subscription | 25 | 60 | 90 | | Advertising revenue | 25 | 30 | 60 | Shila thinks that before the business decides to produce QLine, more market research data will be needed. Shila and Lucy will have to decide on new objectives for DN. To ensure a quality product that meets customer expectations, Lucy thinks it is important to have careful management of the supply chain, from content creation to customer delivery.

1. (a)(i)Identify one function of a manager.[1]
2. (a)(ii)Explain the term secondary market research (lines 6–7).[3]
3. (b)(i)Refer to Table 2.1. Calculate the percentage increase in total revenue of online monthly magazines from 2020 to 2022.[3]
4. (b)(ii)Explain one additional piece of market research data DN would find useful before making the decision to produce QLine.[3]
5. (c)Analyse two reasons why Shila and Lucy will have to change DN's objectives.[8]
6. (d)Evaluate the importance to DN of effective supply chain management.[12]