Business (AS & A Level) · Oct / Nov 2025 · Paper 21 · Question 1

Clever Bean (CB) CB is a public limited company that operates a chain of coffee shops in several countries. The company was founded in 2010 by two friends, Shopra and Ben. They share a passion for coffee and want to offer high-quality products to customers. CB started with one coffee shop in country Q and gradually expanded, always locating in high-income areas of major cities. CB operates in a dynamic business environment. There is a high level of competition from other well-known coffee shop chains. The company sources its coffee beans from fair trade suppliers who grow their coffee in an environmentally friendly way. CB offers a wide range of coffee products to the mass market. CB also offers other drinks and a variety of food items, such as sandwiches and cakes. Recent research shows that customers are now looking for healthy food options. CB’s customers are mainly young professionals, students and tourists. Customers enjoy CB’s inviting atmosphere, comfortable seating areas, free Wi-Fi access and music. Its staff are trained to be friendly, helpful and knowledgeable. Table 1.1 shows some financial data for CB for 2023 and 2024. Table 1.1 CB’s costs and revenue for 2023 and 2024 2024 ($m) 2023 ($m) Revenue 50 44 Direct costs 10 6 Indirect costs 20 16 Shopra believes that CB should continue to focus on the mass market. However, Ben thinks that greater use of market segmentation will be more successful. 5 10 15 20

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