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Business Studies · Oct / Nov 2025 · Paper 22 · Question 1

0450

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  • 1(a)[8]

    Explain four ways a business plan could help Kathryn. Award 1 mark for each relevant way (max 4). Award 1 additional mark for each explanation of the way applied to this context. Relevant ways might include:

    To help gain a bank loan/overdraft – to open the new shop
    To help give the business a sense of purpose and direction – selling wedding flowers
    To calculate the costs of setting up the business – in this niche market
    To predict cash flow problems – when deciding the source of finance for working capital
    To help identify if there is sufficient demand for the product
    To help set prices – for the high-quality products
    To help identify the skills / type of employees needed – to prepare the flowers
    To help choose the promotional methods to use
    To help allocate resources For example: To help with an application for a bank loan (1)

    in order to open the new flower shop (app). Application could include: new shop/third shop;

    2 shops;

    flowers;

    source of finance required for working capital;

    weddings;

    bride/groom;

    ribbons;

    reputation for high quality;

    contribute to sustainable development;

    targets a niche market;

    4/8 employees at each shop;

    bride;

    average price paid is $2000;

    supplies purchased each day;

    supplies are fresh;

    uses job production;

    small business;

    marketing mix for the new shop.

  • 1(b)[12]

    Consider the following two methods Kathryn could use to communicate with her suppliers. Which method should Kathryn use if an order is needed quickly? Justify your answer.

    Telephone calls
    Emails Level Description Sound application of knowledge and understanding of relevant business concepts using appropriate terminology. Detailed discussion of both methods. Well-justified recommendation. Candidates discussing both methods, in context and with a well-justified recommendation, including why the alternative method was rejected, should be rewarded with the top marks in the band. 9–12 Sound application of knowledge and understanding of relevant business concepts using appropriate terminology. Detailed discussion of at least one method. Judgement with some justification / some evaluation of choice made. Candidates discussing at least one method in detail and applying it to the case should be rewarded with the top marks in the band. 5–8 Limited application of knowledge and understanding of relevant business concepts. Limited ability to discuss the methods with little/no explanation. Simple judgement with limited justification / limited evaluation of choice made. Candidates outlining both methods in context should be rewarded with the top marks in the band. 1–4 No creditable response. Relevant points might include: Advantages Disadvantages Telephone calls
    Speaks directly to each supplier of ribbons – gets immediate feedback – so knows the message has been received
    Can verify if the message for the order of fresh flowers is understood – answer questions about the orders – to ensure the correct flowers are delivered – possibly meeting customer orders more quickly
    Know the message has been received – with having a good relationship with the supplier which means they will answer and take the order
    Suppliers may not answer – delay in order being taken – delivery of flowers may be delayed – which slows production and may be late being delivered to a wedding
    Poor connection over the network used – may distort the message and make it difficult to understand – resulting in wrong order being made – which may lead to under or over ordered flowers
    Could take a long time to call suppliers – may not answer straight away and may need to call several times taking time that could be used for something else
    No permanent record of the conversation – if an incorrect order is made there is no proof the supplier made a mistake Advantages Disadvantages Emails
    Provides a written record for FF to refer to – if the suppliers do not meet the order correctly and the wrong flowers are delivered
    Can be referred to at different times to check on the amount of perishable supplies ordered to ensure the correct order is delivered on the correct date
    Kathryn does not have to be in the office to send the order – can be sent out of usual office hours – may be more convenient especially as FF is a small business
    Some suppliers may not have access to a reliable internet connection – so FF may not know the order for ribbons has not been received
    The order may not be seen if there are too many emails to read and get lost or missed
    May go into junk – so supplier of packaging is unaware there is an order Recommendation Justification might include:
    A telephone call should be made if the order for ribbons is needed quickly to ensure the message is received. Feedback can clarify that the correct order has been made. An email may get lost amongst many emails and the urgency may not be realised, therefore making the order late being processed and delivery of the flower arrangements for the wedding being delayed.
    An email should be used as it is sent straight away, and the supplier of fresh flowers can reply letting FF know that the order has been received and if it can be dispatched straight away.
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