Question 4 Answer
(a) (i) A market structure refers to the level of competition a business experiences marketing a particular good or service which impacts the level of control that it has over its market.
(ii) Monopolistic competition.
(iii) Monopolistic completion refers to a market structure where branded products are sold. Although there are many sellers of Caribbean clothing in tourist resort areas, Caribbean Designs is a special brand with loyal customers.
(b) Three marketing activities are branding, advertising and distribution.Caribbean Designs is a brand name product. This distinguishes the product from other similar products available and also adds value to the product.
Caribbean designs advertises by displaying designs in the tourist resort area and via the internet.
Caribbean Designs must identify an efficient channel of distribution to send goods to persons who order from the website.
(c) (i) Firms can take advantage of management specialization. Firms can also buy in bulk resulting in reduced costs.
(ii) Two disadvantages of growth are high machinery and equipment maintenance cost and difficulty controlling and coordinating the activities of the organization.
(iii) Tanya could employ managers who are specialists in the various functional areas of the business, for example, marketing and distribution. These persons would be directly responsible for each area and report to Tanya. This would give Tanya more time to concentrate on designing and improving the quality output. An alternative is acquiring partners.
A well thought out and organised system must be in instituted to ensure efficiency of production and distribution