Video case study – income elasticity of demand and franchising

After a small break I’m back doing the blogs for GCSE Economics so expect more to come through this term. I’m aiming to increase the number of blogs that provide a longer activity for a lesson.

One of my favourite activities on the business studies blog is the video case study so I’m going to start with that.

Baskin-Robbins the world largest ice-cream parlour chain is set to double the number of stores in the UK over the next three years. This video could be used for a number of topics but I will use it for income elasticity of demand. Also for business teachers this is a great topic for franchising.

Possible case study questions

For income elasticity of demand

1.Define income elasticity of demand (2) 2.Using the concept of income elasticity of demand explain why the owner of Baskin-Robbins sees his product as recession proof (4)

For franchising

1.Explain one disadvantage from the video of becoming a franchisee (2) 2.Explain why a franchisee may be attracted to Baskin-Robbins (2) 3.Explain one reason from the video why Baskin-Robbins may not be sucessful in the UK (2)