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Cambridge IGCSE
BUSINESS STUDIES 0450/22
Paper 2 Case Study February/March 2021
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Specialist T-shirts (ST)
Saanvi started ST as a sole trader business 15 years ago in country Z. ST is a successful business.
Sales have grown quickly as ST has a reputation for producing high quality products.
ST buys plain T-shirts and then adds a design onto the T-shirts for business customers. The design
could be a logo, name or a picture provided by the customer. The design makes each batch of
T-shirts different for each customer.
Three digital sewing machines were purchased by Saanvi at a cost of $12 000 each. They allow a
design to be produced on the computer which is transferred straight onto the T-shirt. These machines
speed up production and reduce labour costs.
When ST is very busy it cannot accept all orders. Appendix 2 shows two orders for T-shirts from
different businesses. Saanvi has to decide which order to accept.
ST products are high priced and are aimed at niche markets. ST is always looking for ways to
increase the added value of its products. Saanvi is considering producing T-shirts for the mass
market instead of niche markets as she thinks it will allow ST to expand faster. T-shirts that do not
have personalised designs could be produced using cheaper machines that are more efficient.
However, Saanvi will need to invest in additional sewing machines to do this. Her main concern is
that the mass market has many established businesses producing low priced standardised T-shirts.
ST require a new Operations Manager as the previous manager has just left. The previous manager
did not motivate the 30 production workers.
Recently the economy in country Z has moved into a slump. Saanvi is concerned about the effect
of this on ST’s revenue, even though the government is introducing policies to try to reduce
unemployment.
Appendix 1
Advertisement for ST products
ST is the only business to go to if you want high-quality T-shirts with your own design on them.
ST only use high-quality T-shirts for your own design. We offer a personal service that guarantees
you will be 100% satisfied with your T-shirts. No other company does that.
Call us today to discuss your requirements and join our many happy customers.
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Appendix 2
Information on two orders for ST products
Order A Order B
Quantity ordered 5000 1000
Price $20 $50
Variable cost per unit $10 $20
Additional expenses $25 000 $10 000
Number of times the customer
has ordered T-shirts in the 3 10
previous year
Appendix 3
Three applicants for the job of Operations Manager
Aarav Vivaan Sai
Qualifications in using
Qualifications Degree in management No qualifications
digital sewing machines
Able to use computer
Good communicator with programs when Able to repair digital
Skills
employees producing designs for sewing machines
T-shirts
2 years working as a
Sewing Machine
Operator in one clothing
20 years working for the factory.
1 year working as an same clothing
manufacturer: 3 years as a Supervisor
Assistant Operations
Experience in another clothing
Manager in a clothing 10 years as a Production factory.
factory Supervisor and 10 years
as Operations Manager. 2 years as an Assistant
Operations Manager in
a different clothing
factory.
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