1998 Paper 9 Question 5
Business Studies
You are assigned the role of UK sales and marketing manager for a new kind of
low-cost computer, primarily aimed at the educational market. Whilst not directly
PC compatible, the computer includes web access, PC-compatible word processing,
other PC-compatible productivity tools, and a suite of educational programs.
How would you approach this task? Draw up an outline business plan as follows.
(a) Show what communication and distribution channels you propose. [5 marks]
(b) Propose a selling price, and estimate the number of units you might sell at
this price. [5 marks]
(c) Estimate a 3-year budget for the sales and marketing activity. [5 marks]
(d) State how you would refine your estimates, and what monitoring you would
put in place. [5 marks]
Background information:
• There are about 32,000 schools in the UK.
• The UK government has recently published a consultative document
The National Grid for Learning with a proposal to spend £100M on provision
of internet access in schools over the next 5 years. This sum includes
infrastructure provision, content development and teacher training, as well
as a contribution to provision of computers in schools.
• The average school IT spend is projected to be £18,000 each year. Additional
funding may be available from government and parents for specific projects.
• The unit manufacturing cost is £200, delivered.