Business Studies · May / June 2017 · Paper 21 · Question 3

Identify two communication barriers which might occur within TT and explain how each barrier might be reduced. Knowledge [2 × 1] – award one mark for each barrier Analysis [2 × 1] – award one mark for a relevant explanation for each barrier Application [2 × 2] – award two application marks for each barrier Award one mark for each barrier (maximum of two), such as:

in country P/Q;

prints designs;

T-shirts imported from country Q, a developing country;

sold to small retailers in country P;

expand the company;

exporting T-shirts;

take over DesOwn, a competing company;

personalized T-shirts;

sells online;

use an agent or a joint venture;

really unhappy factory workers;

shouted at if I do anything wrong;

workers want to leave;

workers in the factory;

Operations manager just tells me what to do;

she never asks what I think;

told to keep quiet;

no training on selling;

information is only put on one noticeboard. There may be other examples in context that have not been included here.

Consider the following three channels of distribution TT could use for its products in country P. Recommend the best channel to gain the highest sales. Justify your answer. Relevant points might include: Advantages Disadvantages Sell to a wholesaler Bulk buy – gain advice on what sells well – lower administration costs. Lower profit margin. Sell directly to large retailers Good locations/high footfall – increase sales. Many competing brands also sold there. Open its own shops in shopping malls Control over presentation of T-shirts – independent decision making about selling to customers. High costs of operating own shop – insufficient designs for own shops. Note: Do not accept answers referring to exporting. The question only asks about country P. 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 recommendation as to best channel of distribution to choose and why not the other channels. 7–8 marks for some limited judgement shown in recommendation as to best channel of distribution to choose. Level 2 4–6 marks Detailed discussion of each channel of distribution. Level 1 1–3 marks Outline of each channel of distribution. Level 1 – 1 mark for each L1 statement (max of 3 marks) e.g. Wholesaler will buy in bulk. Level 2 – 1 × L2 explanation can gain 4 marks and a further mark can be awarded for each additional L2 explanation (max 6 marks) e.g. Wholesaler will buy in bulk which will reduce administration and transport costs. However, the wholesaler will expect a reduced price and so the profit margin will be lower. (L2) Level 3 – For L3 to be awarded there needs to be at least two L2 marks awarded and then a recommendation which justifies the best channel of distribution to choose. Award up to 2 additional marks for relevant application. Possible application marks: Private limited company;

prints designs;

50 different designs;

batch production of various sizes;

sold to small retailers;

expect high quality;

expand the company;

personalized T-shirts;

use an agent or a joint venture;

no training on selling. There may be other examples in context that have not been included here.