Question:
the following questions?
Case study 2
When answering the following questions, please refer to your textbook Appendix A:
Peter’s Business
(3rd edition textbook basics of entrepreneurship – Editor C Nieuwenhuizen—pages 321—340)
Question:
Mark:
21.
a. Explain what a viable business idea is.
b. If the average Mamelodi household (Average income = R3000 p.m.) spends 2% of their monthly income on milk, and the business- to- business market amounts to R80 000 per month, calculate the potential rand value of Peter’s Business.
c. Define indirect costs and give 3 examples of Peter’s Business indirect costs
22.
a. Calculate the break-even point for Peter’s Business.
b. How can Peter’s Business lower their break-even point? Explain at least two ways.
23.
a. Classify all Peter’s Business products in terms of the consumer product category.
b. To which category (according to your text book) of the product-service mix does Peter’s Business belong? Give a reason for your answer
24.
a. What factors may have affected the pricing of Peter’s Business products?
b. What pricing objective do you think Peter’s Business has adopted? Give a reason for your answer.
25.
a. Discuss the types of channels of distribution that a business can use.
b. What type of channel does Peter’s Business use? Please motivate your answer.
26.
Calculate the Re-order point (ROP) for a small dairy shop that buys milk from Peter’s Business. The shop has an average monthly demand of 105 litres of milk. The order lead time is one week and the safety stock is five litres.
