Business - files.schudio.com · Surname Other names Write your name here Centre Number Total Marks /16 number at Business Assessment 1.5 Understanding external influences on a business:

Surname Other names

Write your name here

Centre Number

Total Marks

Business Assessment 1.5 Understanding external influences on a business:

Theme 1: Investigating small business

Instructions:

Use black in or ball point pen

Fill in the boxes at the top of this page with your name, centre number and candidate number

There are three sections in this paper

Answer the questions in the spaces provided

A calculator may be used

You are advised to show all of your working out with your answers clearly identified at the end of the solution

Information:

The total mark for this paper is 60

The marks for each question are shown in brackets Advice

Read each question carefully before you start to answer it.

Section A

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Section B

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Section C

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SECTION A

Answer ALL questions. Write your answers in the spaces provided.

Some questions must be answered with a cross in a box. If you change your mind about an answer, put a line through the box and mark your new answer with a cross.

1 (a) Which one of the following are not stakeholders of a business? (1)

Select one answer:

A Productivity Levels

B Government

C Suppliers

D Shareholders

(b) Which one of the following is an advantage of using e-commerce? (1)

Select one answer:

A Increasing bank charges

B High Levels of emails

C Easy ordering for customers

D Customers being local

(c) Explain one advantage to a business of having satisfied employees as stakeholders (3)

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Total for Question 1 = 5 marks

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SECTION A



2 (a) Which one of the following is not a stakeholder of a business (1)

Select one answer:

A Profits

B Shareholders

C Suppliers

D Government

(b) Explain one advantage to a business of using online payment systems (3) ……………………………………………………………………………………………………………………………………………………

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SECTION A

3 (a) Which one of the following is an advantage of using e-commerce for a business?

Select one answer:

A Increasing bank charges

B 24/7 ordering

C Customers being local

D High levels of emails.

(b) Discuss the disadvantages to a business when two of its stakeholders are in conflict with each other (6)

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Total for Question 3 = 7 marks TOTAL FOR SECTION A = 16 Marks

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SECTION B

Answer ALL questions.

Look at Figure 1 and 2 and read the following extract carefully, then answer Questions 4, 5 an Write your answers in the spaces provided.

Funky pigeon is one of the top online card retailers operating in the UK. Funky Pigeon produces personalised greeting cards and other gifts using digital technology: customers upload their images to the website to have them added to greetings cards and other products, which are then sent directly to customers. The website was established in 2007 by an entrepreneur called Richard Pepper, as part of a limited company called Split Ink. Pepper made good use of technology when he established Funky Pigeon, as advances in technology enabled him to provide personalised goods in a way that had not previously been possible. Customers reacted well to this service, and soon other websites were also established to cater for this demand. Before online care retailing, it was possible for customers to go into a shop and order a greetings card with a photograph on it. However, the customer would have to wait days or weeks for the card to be produced. The technology used by Funky Pigeon transformed customers’ expectations about the length of time that they were prepared to wait for a personalised greetings card. Funky Pigeon was so successful that, in May 2010, it was bought by high street retailer WHSmith. After the sale, Richard Pepper continued to work at the company, making use of new advances in technology to expand the business even further. For example, Funky Pigeon’s cards and other gifts can now be produced using smartphones, and the number of possible gift options has now increased to include items such as personalised foods and clothing.

Figure 2

SECTION B



4. (a) Outline one influence that technology has had on Split Ink. (2)

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(b) Analyse how the customers, as stakeholders, have influenced the success of Funky Pigeon. (6) ……………………………………………………………………………………………………………………………………………………

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SECTION B

Aldi has a distinct approach to retailing that has given it a competitive advantage in a crowded marketplace. Aldi’s unique balance of the marketing mix enables it to provide high quality, own branded products at the lowest possible price.

5. (a) Explain one advantage to Funky Pigeon of having satisfied employees and stakeholders (3)

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(b) Discuss how far you think the law will have an impact on the way that Funky Pigeon’s website operates. (6) ……………………………………………………………………………………………………………………………………………………

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SECTION B

Based primarily in Bristol, Funky Pigeon have a highly motivated team of around 30 people work closely with Head Office functions in Swindon. Funky Pigeon also have a fulfilment centre in Guernsey where their cards and gifts are produced. Funky Pigeon is considering two options to grow the business at a time when the pound is weak and interest rates are low.

6. Funky Pigeon are considering focusing their growth on only ONE strategy Option 1: Investing in a wider range of products that can be developed. Option 2: Moving the production of cards and gifts from Guernsey to Poland.

(a) Justify which one of these two options Funky Pigeon should choose. Refer to case study. (9)

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Total for Question 6 = 9 marks TOTAL FOR SECTION B = 26 MARKS

SECTION C Read the following extract carefully, then answer Questions 7

Figure 1

Since opening its first store in 1913, Aldi has established itself as one of the most reputable retailers in the global business market by providing great value and quality. Aldi’s goal is simple; ‘To provide our customers with the products they buy regularly and ensure that those products are of the highest possible quality at guaranteed low prices.’ Aldi’s products are sourced from hand-picked suppliers whose products are sold under Aldi’s own brand labels. Aldi’s main marketing objective is to grow its market share within the UK grocery market. With the economic crisis came an increased demand for value for money. Market research identified that 80% of Aldi’s customer base also shopped at other supermarkets. These customers spent around £20 billion per year in the other stores.

Aldi’s marketing strategies therefore focus on generating customer loyalty. Aldi focuses its marketing efforts on encouraging customers that are already familiar with the brand to shop at Aldi more often. Another key focus of Aldi’s marketing strategy is on demonstrating that Aldi brands are of equal quality to well-known brands such as Heinz and Fairy Liquid. To do this Aldi ran blind taste tests amongst a cross section of shoppers. These confirmed that the majority of consumers that liked the famous brands also liked Aldi’s brands. These findings formed the basis to Aldi’s ‘Like Brands’ marketing campaign. This provided Aldi with a platform to communicate its quality and value messages effectively.

Answer ALL questions.

Look at Figures 1 and 2, read the following extract carefully, then answer Questions 4, 5 and 6.

Write your answers in the spaces provided.

Figure 1Select one answer:

A Survival

What is Amazon Go? Amazon Go is a new kind of store with no checkout required. We created the world’s most advanced shopping technology so you never have to wait in line. With our Just Walk Out Shopping experience, simply use the Amazon Go app to enter the store, take the products you want, and go! No lines, no checkout. (No, seriously.) How does Amazon Go work? Our checkout-free shopping experience is made possible by the same types of technologies used in self-driving cars: computer vision, sensor fusion, and deep learning. Our Just Walk Out Technology automatically detects when products are taken from or returned to the shelves and keeps track of them in a virtual cart. When you’re done shopping, you can just leave the store. Shortly after, we’ll charge your Amazon account and send you a receipt. What do I need to get started? All you need is an Amazon account, a supported smartphone, and the free Amazon Go app.

Why did you build Amazon Go?

Four years ago we asked ourselves: what if we could create a shopping experience with no lines and no checkout? Could we push the boundaries of computer vision and machine learning to create a store where customers could simply take what they want and go? Our answer to those questions is Amazon Go and Just Walk Out Shopping.

Where is Amazon Go located?

Our store is located at 2131 7th Ave, Seattle, WA, on the corner of 7th Avenue and Blanchard Street.

Figure 2

SECTION C

Answer ALL questions. Write your answers in the spaces provided. 7 (a) Define the term consumer law in relation to Amazon Go (1)

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(b) Identify one principle of consumer law that Amazon Go has to follow and how it affects the way in which that business trades (1)

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(c) Explain one advantage to Amazon Go of having low inflation (3) ……………………………………………………………………………………………………………………………………………………

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SECTION C

Answer ALL questions. Write your answers in the spaces provided. 8 (a) Give one stakeholder of Amazon go (1)

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(b) Evaluate whether Amazon Go is likely to be benefit from rapidly changing technology. You should use the information provided in the case study as well as your knowledge of business (12)

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Figure 3

SECTION C

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Total for Question 8 = 13 Marks

TOTAL FOR SECTION C = 18 Marks

Documents

Business - files.schudio.com · Surname Other names Write your name here Centre Number Total Marks /16 number at Business Assessment 1.5 Understanding external influences on a business: