Business Studies · Oct / Nov 2016 · Paper 21 · Question 1
7115
As printed in the paper
Show the answer and mark scheme
1(a)[8]
P & P needs to be efficient. Identify and explain four methods P & P could use to motivate production workers. [8]
Application [4 × 1] – award one mark for each relevant method for production workers Analysis [4 × 1] – award one mark for explanation of how each method increases motivation Award one mark for each relevant method (maximum of four), such as:
increase wagestrainingprofit sharingpraisepiece rateemployee of the monthbonuschange in leadership stylefringe benefitsbetter working conditionsjob rotationjob enlargementsetting targetspromotion Indicative response: Introduce piece-rate [ap] because if the production workers produce more paint they will be paid more and so they will be motivated to work harder [an].1(b)[12]
P & P has developed a new type of paint. Consider the following three factors that will affect the channel of distribution the company will use. Which factor will be the most important when deciding the best channel of distribution? Justify you answer. [12]
Relevant points might include: Where customers are located
do they deliver paint or do customers purchase from the shopsare they close to the factory – may use direct selling – lower transport costsmay require selling agents is exporting How often the product is purchasedpurchased regularly – may need to be sold in shops near to customers/less often then customers may be willing to travel to large shops to purchase paintmay use wholesaler/middleman if bought less frequently Where competitors sell their productsmay need to sell paint in same retail outlets to competitors – outlet already attracts many customersdon’t sell at the same outlets as competitors – may need to reduces price/sales Knowledge/Analysis/Evaluation – award up to 10 marks using the levels-based mark scheme below. Knowledge/Analysis/ Evaluation Level 3 At least 2 × Level 2 + 9–10 marks for well justified conclusion as to which factor will be the most important when choosing a channel of distribution and why not the alternative channels. 7–8 marks for some limited judgement shown in conclusion as to which factor will be the most important when choosing a channel of distribution. Level 2 4–6 marks Detailed discussion of the factors affecting the choice of channel of distribution for the new type of paint. Level 1 1–3 marks Outline the factors affecting the choice of channel of distribution. Level 1 – 1 mark for each L1 statement (max of 3 marks) e.g. Where do competitors sell their paint. Level 2 – one L2 explanation can gain 4 marks and a further mark can be awarded for each additional L2 explanation (max 6 marks) e.g. Where do competitors sell their paint. They may want to sell paint in large shops where many brands of paint are sold so that when customers are looking for paint they will see their brand of paint as well and be more likely to buy it than if they sell the paint in shops where no other paint is sold. 4 marks for L2 answer). Level 3 – For L3 to be awarded there need to be at least two L2 marks awarded and then a recommendation which justifies which factor is the most important when selecting the channel of distribution to use. Award up to 2 additional marks for relevant application. Possible application marks: paint manufacturer;factory;
large limited company;
imports raw materials;
capital city;
country X;
sells to large retailers;
uses batch production;
new waterproof paint;
target market professional painters;
new paint for outside of houses;
start exporting paint in 2018. There may be other examples in context which have not been included here.
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