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UK GCSE 2008 : Foundation Tier, Business Studies Paper 1

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Centre Number 71 Candidate Number General Certificate of Secondary Education 2008 Paper 1 Foundation Tier G1201 Business Studies [G1201] TUESDAY 27 MAY, AFTERNOON TIME 1 hour 30 minutes. INSTRUCTIONS TO CANDIDATES Write your Centre Number and Candidate Number in the spaces provided at the top of this page. Write your answers in the spaces provided in this question paper. There should be enough space for your answers. If you do require more space, you may complete your answers on the extra lined pages at the back of this booklet. Answer all three questions. This paper is accompanied by a case study. You must not use your own annotated copy of this case study. INFORMATION FOR CANDIDATES The total mark for this paper is 79, including a maximum of 4 marks for quality of written communication. Figures in brackets printed down the right-hand side of pages indicate the marks awarded to each question or part question. For Examiner s use only Question Number 1 2 3 QWC Total Marks G121F8 3578 Marks 1 (a) Explain the following terms mentioned in the Case Study: Examiner Only Marks (i) Sole Trader _____________________________________________________ _____________________________________________________ _____________________________________________________ __________________________________________________ [2] (ii) Communication _____________________________________________________ _____________________________________________________ _____________________________________________________ __________________________________________________ [2] (iii) Shares _____________________________________________________ _____________________________________________________ _____________________________________________________ __________________________________________________ [2] (iv) Distribution _____________________________________________________ _____________________________________________________ _____________________________________________________ __________________________________________________ [2] G121F8 3578 2 Remark (b) (i) Give details of two advantages which WJ Shaw & Sons Ltd gained by becoming a private limited company. Examiner Only Marks Remark 1. ___________________________________________________ _____________________________________________________ _____________________________________________________ _____________________________________________________ 2. ___________________________________________________ _____________________________________________________ _____________________________________________________ __________________________________________________ [4] (ii) Identify one disadvantage for WJ Shaw & Sons Ltd of forming a private limited company. _____________________________________________________ _____________________________________________________ _____________________________________________________ __________________________________________________ [2] (c) (i) From the Case Study identify how WJ Shaw & Sons Ltd hopes to make use of technology. _____________________________________________________ __________________________________________________ [1] G121F8 3578 3 [Turn over (ii) Explain two ways in which technology will benefit WJ Shaw & Sons Ltd. 1. ___________________________________________________ _____________________________________________________ _____________________________________________________ _____________________________________________________ 2. ___________________________________________________ _____________________________________________________ _____________________________________________________ __________________________________________________ [4] (d) (i) What do you understand by the term interdependence ? _____________________________________________________ _____________________________________________________ _____________________________________________________ __________________________________________________ [2] (ii) Using information from the Case Study, explain two ways in which the business of WJ Shaw & Sons Ltd is interdependent. 1. ___________________________________________________ _____________________________________________________ _____________________________________________________ _____________________________________________________ 2. ___________________________________________________ _____________________________________________________ _____________________________________________________ __________________________________________________ [4] G121F8 3578 4 Examiner Only Marks Remark 2 (a) Identify four different methods of sales promotion WJ Shaw & Sons Ltd could use for the following situations: Situation Examiner Only Marks Remark Sales Promotion Method (i) to encourage repeat buying of existing products (ii) to help launch a new selection of Shaws in the Bag range (iii) to encourage impulse buying in the supermarket (iv) to increase sales in general [4] (b) (i) How might WJ Shaw & Sons Ltd benefit from market research? _____________________________________________________ _____________________________________________________ _____________________________________________________ __________________________________________________ [2] (ii) Advise WJ Shaw & Sons Ltd why primary market research might be more suitable for them than secondary market research. _____________________________________________________ _____________________________________________________ _____________________________________________________ _____________________________________________________ _____________________________________________________ _____________________________________________________ _____________________________________________________ __________________________________________________ [4] G121F8 3578 5 [Turn over Sales (c) Study this Product Life Cycle for traditional sweets in the jar, and answer the questions which follow. 1919 1920 1930 1940 1950 1960 1970 1980 1990 2000 Years (i) Name the stage of the Product Life Cycle which traditional sweets had reached in the following years: 1919 _________________________________________________ 1920 _________________________________________________ 1940 _________________________________________________ 1970 _________________________________________________ 1980 _________________________________________________ [5] G121F8 3578 6 Examiner Only Marks Remark (ii) Explain two possible reasons for the rise in sales between 1990 and 2000. Examiner Only Marks Remark 1. ___________________________________________________ _____________________________________________________ _____________________________________________________ _____________________________________________________ 2. ___________________________________________________ _____________________________________________________ _____________________________________________________ __________________________________________________ [4] (d) (i) WJ Shaw & Sons Ltd uses cost-based and market-led pricing. Explain these two pricing policies. Cost-Based Pricing: _____________________________________________________ _____________________________________________________ _____________________________________________________ __________________________________________________ [2] Market-Led Pricing: _____________________________________________________ _____________________________________________________ _____________________________________________________ __________________________________________________ [2] G121F8 3578 7 [Turn over (ii) State one reason why Penetration Pricing would not be suitable for WJ Shaw & Sons Ltd to use with its traditional range of sweets. _____________________________________________________ _____________________________________________________ _____________________________________________________ __________________________________________________ [2] G121F8 3578 8 Examiner Only Marks Remark 3 (a) Show how branding is important to WJ Shaw & Sons Ltd. Examiner Only Marks Remark _________________________________________________________ _________________________________________________________ _________________________________________________________ ______________________________________________________ [2] (b) Explain one reason why WJ Shaw & Sons Ltd has drawn up an Equal Opportunities Policy. _________________________________________________________ _________________________________________________________ _________________________________________________________ ______________________________________________________ [3] (c) (i) What is the main purpose of the Health and Safety at Work Order? _____________________________________________________ __________________________________________________ [2] (ii) Give details of two responsibilities which WJ Shaw & Sons Ltd, as an employer, has for health and safety in the workplace. 1. ___________________________________________________ _____________________________________________________ _____________________________________________________ _____________________________________________________ 2. ___________________________________________________ _____________________________________________________ _____________________________________________________ __________________________________________________ [4] G121F8 3578 9 [Turn over (d) Discuss how the Sale and Supply of Goods and Services Act would influence production at WJ Shaw & Sons Ltd. _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ _________________________________________________________ ______________________________________________________ [4] (e) WJ Shaw & Sons Ltd uses batch production. List two other methods of production. 1. _______________________________________________________ 2. ____________________________________________________ [2] (f) Use the organisation chart in the Case Study to answer the following questions: (i) Name the person a Production Operative would report to in this firm. __________________________________________________ [1] (ii) How many people are there in the Production Supervisor s span of control? __________________________________________________ [1] G121F8 3578 10 Examiner Only Marks Remark (iii) There is a hierarchical management structure in WJ Shaw & Sons Ltd. Explain one advantage and one disadvantage of this type of management structure. Examiner Only Marks Remark Advantage: _____________________________________________________ _____________________________________________________ _____________________________________________________ _____________________________________________________ Disadvantage: _____________________________________________________ _____________________________________________________ _____________________________________________________ __________________________________________________ [4] (g) List two skills/qualities required by the Managing Director in WJ Shaw & Sons Ltd. 1. _______________________________________________________ 2. ____________________________________________________ [2] Quality of written communication G121F8 3578 11 [Turn over Extra page if required Examiner Only Marks ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ G121F8 3578 12 Remark Extra page if required Examiner Only Marks ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ G121F8 3578 13 Remark THIS IS THE END OF THE QUESTION PAPER G121F8 3578 14 SP (NF/CGW) T57176/2 General Certificate of Secondary Education 2008 Case Study for use with Paper 1 Foundation Tier and Higher Tier [G1201] G1201G1203 Business Studies [G1203] TUESDAY 27 MAY, AFTERNOON You must use this clean copy of the Case Study in the examination and not your own annotated copy. G121F8/G121H8 3579.03 WJ Shaw & Sons Ltd Confectionery Manufacturer and Distributor Background WJ Shaw & Sons Ltd is a small family run business which has been manufacturing and distributing quality confectionery in Ireland since 1877. The business was first set up in Belfast as a sole trader but changed ownership to a private limited company on 5 December 1902 with the majority of shares being owned by the founder, William J Shaw. The firm stayed in Belfast until 1998 when the Belfast premises were vested by the housing executive as part of an urban regeneration project. This meant WJ Shaw & Sons Ltd had to decide on a new location. The directors decided to relocate to Dundonald Enterprise Park, where they stayed for 9 years. After much consideration they again relocated to a purpose built factory in Hollywood Exchange. Fig. 1 G121F8/G121H8 3579.03 2 Organisation Chart of WJ Shaw & Sons Ltd Managing Director Operations Director Sales and Marketing Director Delivered Business Director Accounts Technician Production Supervisor Machine Technician Sales Agents Van Sales Team Warehouse Wholesale Person Delivery Driver 6 Production Operatives Fig. 2 The organisational structure has several layers of authority and the business relies on a chain of command to pass instructions to employees. Communication is very effective in the business and a wide range of methods is used to keep staff up-to-date. These include formal meetings, informal meetings, memoranda and e-mails. Policies are important to the business and it prides itself on being an equal opportunities employer. Health and Safety of employees is also an important consideration in the business and it has developed a Health and Safety policy which is subject to regular review. G121F8/G121H8 3579.03 3 [Turn over Equal Opportunities Policy of WJ Shaw & Sons Ltd The company is committed to the promotion of equality of opportunity. It is our policy to provide employment to all, irrespective of: Gender, marital or family status Religious belief or political opinion Disability Race or ethnic origin Nationality Sexual orientation We are opposed to all forms of unlawful and unfair discrimination. All employees and job applicants (actual and potential) will be treated fairly and selection for employment, promotion, training and any benefit will be on the basis of aptitude and ability. We recognise that the provision of equal opportunities in the workplace is not only good management practice, it also makes good business sense. Our Equal Opportunities Policy will help all employees to develop their full potential and the talents and resources of the workforce will be fully utilized to maximise the efficiency of the company. We are committed to: preventing any form of direct or indirect discrimination or victimisation promotion of equal opportunities for women and men promotion of fair participation for Catholics and Protestants promoting equal opportunities for people with disability promoting equal opportunities for ethnic minorities promoting a good and harmonious working environment where all are treated with respect and in which no form of harassment or intimidation will be tolerated fulfilling all legal obligations under the relevant legislation and associated codes of practice Breaches of the Equal Opportunities Policy will be regarded as misconduct and could lead to disciplinary action. Fig. 3 G121F8/G121H8 3579.03 4 Extract adapted from Health and Safety Policy of WJ Shaw & Sons Ltd Policy To provide and maintain a healthy and safe working environment, and to ensure that all that is reasonable and practicable is done to prevent personal injury. The company recognises the right of non-smokers to breathe smokefree air and it is conscious of its responsibilities to provide a clean, healthy and safe working environment smoking is prohibited on company premises. Objectives To include the responsibility for health and safety in job descriptions To ensure that management and staff are aware of and accept their individual and collective legal responsibility in the care of health and safety of themselves and others Training To ensure that induction training for all new staff includes information on Health and Safety matters relating to the company To provide training and retraining where necessary Housekeeping To maintain the premises in a good state of repair To ensure regular checks of fittings, furnishings and services to ensure repairs are dealt with immediately To ensure an effective system is in place to deal with fault reports To maintain high standards with regard to lighting and ventilation Fire To ensure that fire exits are kept clear at all times To ensure fire extinguishers are kept in their designated places To ensure that fire extinguishers and fire alarms are checked weekly To display all fire notices To carry out regular fire evacuations Health and Hygiene To provide a rest room and first aid facilities To ensure that all injuries receive treatment and are recorded To ensure adequacy and cleanliness of washing and sanitary facilities Accidents To maintain records of accidents To ensure all injury accidents are investigated to establish cause and prevent recurrence Fig. 4 G121F8/G121H8 3579.03 5 [Turn over From this Policy the following set of health and safety rules has been established which all members of staff must comply with: 1. Report any faulty or hazardous fixtures, furniture or equipment especially electrical equipment 2. Report immediately to management any accidents involving injury 3. Observe all hazards and report immediately 4. Do not attempt to repair faulty equipment 5. Keep all emergency exits, stairs and corridors free from obstructions 6. Canteens and wash rooms are to be kept as clean and tidy as possible Products and Production The sweet selection includes the traditional jar range, pick n mix and impulse bags. The product range is diverse covering everything from traditional favourites such as clove rock, brandy balls and cinnamon lozenges to the kids selection which includes cola bottles, giant strawberries and dolly mixtures. The manufacturing of traditional sweets uses specialist machinery to produce the sweets in batches. The company follows traditional recipes which have been used since the company was first set up. Stage 1 The ingredients are bought in from suppliers. These consist mainly of sugar, cinnamon flavouring and a few secret ingredients. All the ingredients are put into the mixing machine for fifteen minutes until they form a dough. This dough is then transferred manually to the sweet making machine. Mixing Machine Fig. 5 G121F8/G121H8 3579.03 6 Stage 2 The dough is fed manually into the hopper at one end of the machine where it is then fed through a series of rollers called worms . These worms take the dough from the bottom of the hopper and push it through a slot so that the dough forms a thin layer which is then ready for cutting. Cylinders and cutters cut out the individual sweets from dough and transfer the sweets to a conveyor belt which feeds them onto trays ready for drying. The trays are stacked manually and are sent to the drying room for three days. Sweet Making Machine Fig. 6 G121F8/G121H8 3579.03 7 [Turn over Stage 3 Sweets are passed to the packaging section and are sorted into those that will go into jars for selling in traditional sweet shops and those that will be packaged into bags as Shaws in the Bag range. Packaging Machine Fig. 7 Production also takes place under licence for other sweet retailers. The kids selections of sweets are bought from other firms and packaged under the brand name of Shaws. Distribution WJ Shaw and Sons Ltd owns one large delivery truck and uses it to carry out regular deliveries to wholesalers throughout Northern Ireland. Distribution is also supported by the Van Sales team who are responsible for the deliveries to retailers throughout Ireland. The objective of the Van Sales team is to push the marketing and selling of Shaws in the Bag range. It is Shaws intention to introduce hand-held terminals for each van salesperson to help control stock, debt and invoicing. G121F8/G121H8 3579.03 8 Marketing Marketing is achieved very much through developing the brand Shaws. The company logo appears on all packaging. The delivery truck also displays the logo on the side of the vehicle to advertise the in the bag range. At present there is no large scale advertising and the firm s main marketing strategy for Shaws in the Bag range is the positioning of display stands in supermarkets. Its aim is to achieve prominent selling positions on ends of aisles in supermarkets throughout Northern Ireland. WJ Shaw and Sons Ltd is currently in the process of developing a website, but does not undertake either market research or sampling. Pricing of traditional sweets in jars is cost-based and Shaws in the Bag range is based on a market-led policy. Management monitor sales of the entire product range through various methods of analysis. Product life cycle analysis features heavily. By looking at the life cycles of its products the firm knows when it is time to develop extension strategies. G121F8/G121H8 3579.03 9 BLANK PAGE G121F8/G121H8 3579.03 10 BLANK PAGE G121F8/G121H8 3579.03 11 SP (NF/CGW) T57174/2

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