(Students may apply their knowledge in economics to make reasonable discussions to support their views. The arguments must however be structured and coherent with their positioning.) Marking scheme:
21 Example 2 : 759 Store Topic: 759 Store Relevant economics topics: Internal growth; price difference; elasticity of demand; company ownership; economies of scale; minimal wage; methods of wage payment Type of material: News, website information, graphics Question design (Total marks: 26) Elementary-level questions (12 marks); Advanced-level questions (14 marks) Rationale of design: The sales strategies of 759 Store is a popular topic in recent years, and many students have the personal experience of purchasing from the store. Using the topic, Secondary 4 students may apply concepts of microeconomics to analyse and evaluate the commercial decisions of 759 Store as a consumer and as business owner. In materials selection, this sample offers a variety of data including company ownership, business model, financial status, method of cost control, market strategy/positioning of competitors, so that students will have sufficient information to base on in commenting on the future expansion of 759 Store and will not answer based solely on their day-to-day experience as a consumer.
22 Source A – Introduction to the 759 Store and its direction of development Company introduction The “759” in 759 Store comes from the HKEx stock code of its mother company “CEC International Holdings Limited”, a listed company on the Main Board of HK Stock Exchange since 1999. 759 was founded in 2010 with the business principle of “small profits and quick turnover”, and providing quality and cheap merchandise options for customers by sourcing from around the world under a parallel import procurement model called “direct import”. From initially focusing on sales of snacks and drinks, its “direct import” line of products have been expanded to include groceries, wines, frozen food, baby goods, pet food, household goods, personal care goods and cosmetics. As its import business grew in size, 759 Store has also been continuously expanding its snacks chain with up to 185 outlets as of 30 January 2014. 759 Store to slow down expansion as market saturates In 2014, 759 Store announced its results of 2013 with profits attributable to shareholders up 18% year-on-year, and final dividend for the year ended at 0.7 cent per share. Despite satisfactory business performance and group chairman Mr. Lam Wai Chun setting a target at 300 outlets, such a target will no longer be the objective for the group’s development given the saturating market for snacks stores. Mr Lam explains that in the future the group will locate more 10,000 sq feet store spaces to establish 759 Stores under the “mini-department store” model, to satisfy customers’ need for an expansive shopping environment.
- Spring '07