Business (AS & A Level) · Feb / March 2025 · Paper 22 · Question 2

Reliable Car Repairs (RCR) Reliable Car Repairs (RCR) is owned by Freya and her brother Kye as a partnership. The business was set up five years ago in city B and repairs a wide range of cars. Freya recently carried out some primary market research. The qualitative data from the market research showed that customers like the speed of RCR’s service as many repairs were completed within 24 hours. RCR’s market share has increased annually over the past five years. The total sales in the market in 2023 were $700 000. Table 2.1 shows RCR’s data for 2024. Table 2.1 RCR’s market share and sales Market share RCR’s total sales 2024 17% $123 165 The owners are always looking to improve the performance of the business and have an objective of increasing efficiency. Freya and Kye have no experience of repairing cars and so employ two mechanics to carry out this work. The mechanics have both been employed by the business since it was set up. Kye supervises the mechanics using a democratic management style. The business holds a large quantity of inventory as different cars need different components. The business buys components from two suppliers which have both supplied RCR since it was set up. The partners are thinking of introducing Just in Time (JIT). 5 10 15

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