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Transcription of this question: 4.KabaretMatt Fidler and Shailah Hitta met at university, where they both studied drama. They have now justgraduated. As they work very well together as artists, they want to turn their talent into their sourceOf income. They have decided to set up their own theatre company called Kabaret. It will be apartnership, with Matt and Shailah as equal partners. They arranged an appointment with Mr Lloyd,an independent consultant, for financial advice.They first discussed the main problems that Kabaret, as a business start-up, may face. Because Mattand Shailah know many people who have set up theatre companies, they feel ready to deal withpossible problems such as developing a customer base and branding. Matt and Shailah have manyideas about the plays they want to stage and the theatres where they want to perform. However, theydo not know how much tickets should cost. Mr Lloyd explained the two types Of pricing strategythat they could use: cost-based pricing or competition-based pricing. Matt and Shailah realise thatthey have to do more research about their own costs and about their local competitors.Mr Lloyd has now asked them to prepare a business plan that includes a decision about theirpricing strategy as well as a cash-flow forecast. Matt and Shailah will meet him again in three weeksin order to further discuss the creation and launch Of Kabaret.(a)(b)(c)(d)Define the term branding.Explain the importance Of the information in Kabaret’s business plan forone internal stakeholder and for one external stakeholder.Analyse the main problems that Kabaret, as a business start-up, may face.Analyse the appropriateness Of the two pricing strategies Mr Lloyd suggests andrecommend to Matt and Shailah which one to use for the tickets to KabaretSshows.[2 marks][6 marks][5 marks][7 marks]

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