1. OCR GCSE BUSINESS STUDIES A293/01/CS Production, Finance and the External Business Environment PRE-RELEASE CASE STUDY

2. Section 6 The Festival Field

3. Please complete this worksheet while you watch the presentation

5. Lesson objectives
To be able to demonstrate knowledge and understanding of competitive and monopoly markets
To be able to analyse and discuss how a business may change its competitive environment

6. Starter Read section 6 – which of these words does not appear…
The word that does not appear is forecast – it is in section 5

7. BOWTON PARK

8. What is the cost of the venue of The Festival in 2016 and 2017?
Bowton Park
Bowton Park is located behind Bowton Town Hall.
Each year, during the festival weekend, the Park becomes The Festival Field.
What is the cost of the venue of The Festival in 2016 and 2017?

9. Who might own the park which is the venue for The Festival?
Cost of venue
2016 – 10% of £280,000 = £28,000
2017 – 9% of £350,000 = £31,500
Who might own the park which is the venue for The Festival?

10. Venue owner The park is likely to belong to Bowton council
They will set the price each year for “renting” the space to hold The Festival

11. RETAILERS

12. All business operate in a market
Candidates should be able to:
• demonstrate knowledge and understanding of
competitive and monopoly markets
• analyse and discuss how a business may change its
competitive environment
• demonstrate knowledge and understanding of why the
government promotes competition.

13. Perfect competition market
Lots of competitors
Lots of substitute retailers and products
Prices may be lower as competition drives down prices
Retailers may have to compete on non-price factors to attract customers e.g. customer service

14. Monopoly market Only one retailer, or few retailers in the market
Higher prices as there are no substitutes for customers to choose from
Demand may be higher than supply, leaving customers unable to buy products that have sold out

15. Retailers at The Festival
There will be five food stalls including two temporary restaurants housed in marquees
How competitive is the market for food at The Festival?

16. 5 food stalls
2 Marquee Restaurants

17. Low competition - market for food
5 food stalls which includes two marquee restaurants – which means only 3 different food stalls
Write a list of potential problems for food stalls at The Festival

18. Lack of competition for food
Lack of competition for food at The Festival will mean several things:
Demand may be more than supply meaning long queues for food
Stalls may run out of food so customers go hungry
Lack of competition may push up prices
A captive market may not be able to get food for specific needs: Kosher, Halal, Veggie, Nut allergy

19. How competitive is the market for bars at The Festival?
There will be six bars
How competitive is the market for bars at The Festival?

20. 6 bars
Write a list of the potential problems of having six bars at The Festival

21. Competitive market for bars
More bars than food stalls may mean that visitors to The Festival may consume too much alcohol
Alcohol without food may mean more drunk visitors at the festival
Too many bars means that this may drive prices down as they discount to attract customers

22. Adventure holiday firms at The Festival
There will be seven adventure holiday firms
How competitive is the market for adventure holiday firms at The Festival?

23. 7 Adventure holiday firms
What will be the potential impact on customers of having seven adventure holiday firms on display at The Festival?

24. Competitive market for adventure holiday firms
Impact on customers of having 7 firms to choose from:
Might give customers lots of ideas for new holidays
Lots of choice is good for the customer
Firms may offer lower prices, discounts or promotions to attract customers, so they may benefit from the deals available at The Festival

25. Competitive market for specialist retailers
Twenty two specialist retailers of outdoor pursuits products will rent stalls on the field to sell their goods and services to festival visitors.
Several of these retailers are large national chains.
How competitive is the market for specialist retailers of outdoor pursuits gear at The Festival?

26. Twenty two specialist retailers of outdoor pursuits products
What will be the impact on the Sprit of Adventure of all the competition for selling outdoor pursuits products at The Festival?

27. The small independent shop – spirit of adventure
Spirit of Adventure buys in additional stock to sell during the festival weekend
The national chains are able to sell their outdoor pursuits gear at cheaper prices through their shops compared to the prices that Spirit of Adventure charges
Spirit of Adventure may have to use non-price methods to compete (such as attentive customer service)

28. National chains
National chains of outdoor pursuit gear. These are retailers that have shops all over the country (national). They can buy in bulk so will enjoy economies of scale and be able to offer lower prices than the independent shops.

29. OUTDOOR PERSUITS MARKET
During the Festival weekend, the national chain retailers offer additional discounts on goods sold from their stalls on The Festival Field.

30. Impact on Spirit of Adventure
What happens if the Spirit of Adventure buys in extra stock to sell at The Festival?
On the positive side
On the negative side

31. Impact on Spirit of Adventure
If Spirit of Adventure buys in extra stock to sell at The Festival
On the plus side
More stock to sell will make sure they can meet all the customer demand at The Festival and they won’t run out.
Customers will have lots of choice which may attract them to the stall.
On the negative side
There are 21 other companies trying to sell similar clothes at The Festival, with so much competition Sprit of Adventure may have to drop their prices.
If sales are poor they may be left with lots of surplus stock.

32. Impact on Spirit of Adventure
The national chains are able to sell their outdoor pursuits gear at cheaper prices through their shops compared to the prices that Spirit of Adventure charges.
On the positive side
On the negative side

33. Impact on Spirit of Adventure
The national chains are able to sell their outdoor pursuits gear at cheaper prices through their shops compared to the prices that Spirit of Adventure charges.
On the positive side
Some customers may regard the national chains as cheap and possibly poorer quality than Sprit of Adventure.
Section 1 tells us that the customers are from a higher income so may not shop based on price
On the negative side
The national chains can bulk buy brands and may be able to negotiate cheaper prices – economies of scale
Customers may be persuaded to shop based on price

34. How many bars?
How many food stalls?
How many outdoor pursuits businesses?
How many adventure holiday firms?
Where is The Festival Field?

35. Six bars
Five food stalls
Twenty two outdoor pursuits retailers
Seven adventure holiday firms
Bowton park is the festival Field and it is behind the Bowton town hall

36. Glossary
Specialist retailer; This is a shop that caters to one specific retail market. Examples of specialist stores include camera stores, pharmacies, stationers and bookstores.
Stock; This is finished goods that are intended to be sold by the business
National chain; This is a retailer which has stores all over the country, so sells nationally, for example Marks and Spencer's, Debenhams, Tresspass etc.

37. Resources written by Sarah Hilton for revisionstation.co.uk