Business Studies · Oct / Nov 2025 · Paper 11 · Question 1

0450

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WMH is a business which operates in the secondary sector. It makes furniture including tables and chairs. WMH’s employees are all members of a trade union. The Managing Director knows the 1 business is likely to remain small. She is considering introducing new technology into WMH’s factory. She also knows it is important for a manufacturing business to choose a suitable location for a factory.

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1(a)[2]
Define ‘trade union’. Award 2 marks for a full definition. Award 1 mark for a partial definition.
Group of workers who join together to ensure their interests are protected [2]
An organisation of employees aimed at improving pay and working conditions [2]
An organisation that exists to provide workplace support for its members [2]
Partial definition e.g.
Group of workers/employees (who join together) [1]
People/organisation who fight for employee/worker rights [1]
Stand for worker`s rights/protect workers [1]
Group of people who protect workers [1]
An organisation that ensures workers’ rights are not violated [1]
2 For two marks needs the idea of who is involved (a group/organisation of workers) and why it exists (protect their rights/ interests).
1(b)[2]
Define ‘secondary sector’. Award 2 marks for a full definition. Award 1 mark for a partial definition. Businesses that:
Process/manufacture goods from natural resources [2]
Manufacture goods using the raw materials provided by the primary sector [2]
Use manufacturing to transform the raw materials generated in the primary sector into a product [2]
Converts raw materials into manufactured goods [2]
Partial definition e.g.
Makes products [1]
Manufactures goods [1]
Refines/processes raw materials [1]
2 Do not award examples of manufactured goods
1(c)[4]
Identify four reasons why a business might remain small. Award 1 mark per reason (max 4). Points might include:
Limited access to/lack of capital (to expand)
Limited access to/lack of suitable labour
Limited access to/lack of suitable land
Limited access to/lack of suitable resources/raw materials
Personal preference / owners’ choice / owner does not want the responsibility / wants to keep control
Lack of skills/knowledge/experience (to expand)
Size of the market / amount of customers / level of demand / small market
To maintain close customers relationships / provide a personal service / type of industry
Some large firms dominate the market / low market share / too much competition
Can be flexible / respond quickly to changes in customer tastes
No economies of scale / to avoid diseconomies of scale
Operating at maximum possible output Other appropriate responses should be credited. 4 Only award the first four responses given. Do not award vague statements such as less stressful/have more free time/less likely to have communication issues.
1(d)[6]
Explain two possible effects of WMH introducing new technology. Award 1 mark for identification of each relevant effect (max 2). Award 1 mark for each relevant reference to this business (max 2). Award 1 mark for each relevant explanation (max 2). Points might include: Positive effects:
Improve quality / less waste / fewer mistakes [k] leading to a better reputation [an] for its furniture [app]
Increases productivity / efficiency / quicker production [k] leading to lower (average) costs [an] for this small business [app]
Improved communication [k] leading to fewer mistakes / better efficiency [an] in the factory [app]
Can design new products [k] which may increase sales / access new markets [an]
Greater job satisfaction/motivation [k] reducing absenteeism/lowering labour turnover [an]
Employees may gain new skills [k] leading to higher pay/chances of promotion [an]
Reduces time/costs to design new products [k]
Increase output [k]
Safer workplace [k] 6 To use words from the stem as application, the reference must be appropriate (i.e. make sense) in relation to the point being made. The following words are likely to be appropriate for this question:
Furniture or related words such as tables/chairs
Trade union
Factory
Small business
Secondary sector/manufacturing
Location is important Other appropriate examples can be credited. Some points can be [k] or [an] but do not award the same point twice. Some analysis can be used for more than one point, but only award once. Guidance Negative effects:
Purchasing new equipment / expensive to buy/set up [k] increasing cash outflows/debt [an]
Need to train workers [k] which can increase costs [an]
If technology is rapidly changing it will need to change often to remain competitive [k] which will increase costs [an]
Some employees may lose their jobs/made redundant [k]
May demotivate employees [k] Other appropriate responses should be credited.
1(e)[6]
Explain two factors a manufacturing business should consider when deciding on a suitable location for a factory. Which factor is likely to be the most important? Justify your answer. Award up to 2 marks for identification of relevant points. Award up to 2 marks for relevant development of points. Award up to 2 marks for justified decision as to which location factor is likely to be the most important for a manufacturing business. This is a general question so there are no marks for application Guidance Points might include:
Access to skilled labour [k] as may be difficult to find/recruit / could increase recruitment/labour costs [an]
Access to raw materials/components [k] so production is not delayed [an]
Availability / rent of suitable land [k] which could restrict size of factory / increase fixed costs [an]
Good transport links [k] to ensure materials arrive / products sent when needed [an]
Proximity to market [k] to ensure sales/revenue can be made [an]
Type of product [k] a fragile/heavy product may need to be closer to customers to reduce risk of damage/cost [an]
Government grants [k] which could help reduce costs [an]
Legal controls [k] which may prevent the business from locating in certain areas [an]
Access to utilities/power/water [k] as needed for production [an]
Trade barriers [k]
Security of the area/level of crime [k] Other appropriate responses should be credited. Justification might include: Skilled labour [k] if difficult to find could increase recruitment costs [an]. Another factor is availability of suitable land [k] which could restrict the size of the factory [an]. Having suitable land is more important because this might limit output which could reduce its ability to meet demand [eval] whereas a business can train employees, and the extra cost might be covered by the additional revenue gained [eval]. 6 .

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