DPC operates 200 takeaway pizza shops. Over 75% of its pizzas are ordered through e-commerce. The Managing Director thinks 2017 was a successful year. She said: 'Looking ahead, there are signs that the economy is growing. However, DPC has a number of challenges. The Government plans to increase the minimum wage to $5 per hour. DPC has to respond to environmental pressures as well. Food waste and litter caused by used pizza boxes are problems. Complaints from the local community about this are too high.'

Mark scheme

Marking points from the official mark scheme (May/June 2018). The mark or mark type is shown in brackets.

1. [1] Growth OR number of shops
2. [1] Market share
3. [1] Revenue OR sales value OR sales volume
4. [1] Survival (in short run)
5. [1] Profit OR financial ratios such as ROCE OR profit margin OR capital invested
6. [1] Customer satisfaction OR number of repeat customers
7. [1] Good reputation
8. [1] Share price OR dividends
9. [1] Efficiency OR productivity OR number of output
10. [1] Number of employees OR employee loyalty
11. [1] Achieving environmental OR ethical targets
12. [1] Lower unemployment OR more jobs created
13. [1] More businesses opening OR improved business confidence OR increased capital investment
14. [1] Higher living standards OR more disposable income OR rising incomes OR increase in demand/sales
15. [1] Higher rates of economic growth OR increase in GDP OR Level of output increases
16. [1] Increased tax revenue
17. [1] Higher business profits
18. [1] Higher inflation OR higher prices
19. [1] Increased cost (of labour) OR increase cash outflows [k] as have to pay $5 per hour [app]
20. [1] May hire fewer workers OR reduce hours OR make workers redundant [k] so not able to sustain level of success [app]
21. [1] Might increase prices [k] of pizzas [app]
22. [1] Increase sales as people might have more money to spend [k] in its 200 shops [app]
23. [1] Other employees may ask for higher wages [k]
24. [1] Increased motivation OR increased productivity [k]
25. [1] Increase potential number of customers OR larger target market [k] for its 200 shops [app] leading to higher revenue [an]
26. [1] Easy to update communication OR information [k] about food waste [app]
27. [1] Cheaper method of advertising [k] as don't need to pay to reprint leaflets [an] about pizzas [app]
28. [1] Fewer employees needed [k] so lower labour costs [an] could help reduce impact of increase in minimum wage [app]
29. [1] Need fewer shops [k] so less rent [an]
30. [1] Good reviews can enhance reputation [k]
31. [1] Helps to compete [k] to maintain market share OR ensure customer loyalty [an]
32. [1] Reduce the amount of paper OR cardboard used [k] so there is less litter created [an]
33. [1] Provide recycling facilities [k] for litter [app] so less is left around the streets [an] but it might be expensive to provide bins [an]
34. [1] Use recycled materials [k] for the boxes [app] but this could increase production cost [an]
35. [1] Buy supplies in smaller amounts [k] when making pizzas [app]
36. [1] Offer smaller portions OR only make to order [k]
37. [1] Organise patrols [k] to collect litter [app] to reduce the amount of complaints [an]
38. [1] Hire someone to collect rubbish [k] but would have to pay them [an]
39. [1] Ask customers to bring own containers [k]