IB BUSINESS MANAGEMENT SL, Paper 2, November, 2003, TZ0, Solved Past Paper

Home Before Midnight is a franchise that specializes in selling casual clothes and footwear targeted towards teenagers across Europe. The franchise has been successful due to its focus on finding suitable designers and manufacturers, as well as promoting its brand name. However, it has faced criticism for sourcing products from countries with poor working conditions, including child labor. To address these concerns, the company is negotiating with worker co-operatives known for fairer working conditions in Latin America and Asia.

This question is divided into four parts, each addressing different aspects of the franchise's operations and external influences. The first part asks about the advantages for franchisees partnering with Home Before Midnight. The second part requires an analysis of external factors using a PEST/STEP framework. The third part discusses the benefits of becoming a socially responsible organization, focusing on human resources and marketing. The final part explores the challenges multinational companies face when establishing operations in less economically developed countries.

Fit and Well is a product launched by XYZ Ltd in 1980 as a tonic drink aimed at improving health. Initially, it faced resistance in the market, but over time, it gained popularity, especially due to its reputation for quality. By the mid-1990s, however, the growth in sales began to slow down significantly. The marketing director proposed repositioning the drink as a glucose energy drink for active individuals, leveraging its established reputation and high price point. The product is primarily sold in one-liter bottles through pharmacies. Meanwhile, the financial director is concerned about the company's recent trend of launching multiple new products, some of which have not been financially successful. He suggests reviewing the company's product range to ensure sustainability and profitability.