Business (AS & A Level) · May / June 2025 · Paper 23 · Question 1

Crafty Toys (CT) CT is a co-operative that produces and sells a range of wooden toys, such as puzzles, cars and dolls. The co-operative was formed in 2020 by a group of 12 people who share a passion for making toys. They wanted to work together to create quality products that would appeal to children and parents. No one person takes on the role of manager; instead, they share the traditional manager functions between them. CT operates from a large workshop in a rural area of country Z, making toys using labour-intensive techniques. CT uses locally sourced wood that is certified as eco-friendly. CT also uses natural paints and finishes that are safe and non-toxic for children. Table 1.1 shows CT’s output in 2024. Table 1.1 Output data for CT in 2024 Number of people Average hours worked per person per year Output 12 1800 54 000 units CT sells its products online through its own website and social media platforms, as well as through some independent retailers who specialise in ethical products. The co-operative also attends various trade fairs and exhibitions to showcase its products and network with potential customers and suppliers. CT has never researched customer wants. CT faces some challenges in its current operations. These challenges include: • high costs of production • a long lead time • a requirement for skilled workers. CT is considering changing to flow production to overcome these challenges. 5 10 15 20

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