A Level Business 9609 > May/June 2024 > Paper 43 > 9609_w24_qp_43 > Solved Past Paper

Case Summary: Founded in 2018 by Liam and Samir, Kitchen Favourites (KF) operates 'cloud kitchen' facilities rented to catering businesses and provides support staff and delivery. Initially hiring 15 flexitime kitchen workers ($10.50/hr) and 1 office manager ($21,000/yr), KF rapidly expanded during the pandemic, adding a 2nd and 3rd kitchen and establishing its own delivery fleet (growing from 45 to 75 riders on zero-hours contracts). In 2021, KF introduced a tracking app to monitor rider speed, routes, and efficiency, which sparked rider dissatisfaction over unrealistic targets, unfair bonus metrics, and customer abuse due to inaccurate timing. By 2023, takeaway demand declined, forcing KF to close one kitchen. Concurrently, the government passed legislation banning zero-hours contracts. KF chose to convert all 75 riders into self-employed gig-economy contractors rather than hiring 25 as full-time staff. Concerned about market shrinkage, Liam favors Ansoff's Matrix for future growth strategy, whereas Samir wants to consider alternative strategic management frameworks.