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GCE JAN 2008 : (AS 4) E-Commerce

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ADVANCED SUBSIDIARY (AS) General Certificate of Education January 2008 GCE Applied Business assessing E-Commerce A3B41 Assessment Unit AS 4 [A3B41] FRIDAY 11 JANUARY, AFTERNOON TIME 1 hour 30 minutes. INSTRUCTIONS TO CANDIDATES Write your Centre Number and Candidate Number on the Answer Booklet provided. Answer all six questions. INFORMATION FOR CANDIDATES The total mark for this paper is 80. Quality of written communication will be assessed in all questions except questions 1 and 2. Figures in brackets printed down the right-hand side of pages indicate the marks awarded to each question or part question. ADVICE TO CANDIDATES You are advised to take account of the marks for each part question in allocating the available examination time. A3B4W8 3278 Case Study Study the information below and answer ALL the questions that follow. E-Commerce and Sainsbury s Sainsbury s serves 16 million customers each week in 455 supermarkets and 301 convenience stores across the UK including Northern Ireland. The company employs 153 000 staff who are committed to delivering Great Food at Fair Prices . Sainsbury s Online is an internet-based home delivery shopping service which currently operates through 97 stores. In addition to food and grocery products, the service also offers over 250 000 books, CDs, DVDs, videos and computer games. Flowers, wine, gifts and electrical items are also available online. In October 2004, the Chief Executive Justin King laid out Sainsbury s three-year recovery plan which was designed to increase sales by 2.5bn by the end of 2007/8. By mid-2006, Sainsbury s had lowered 8500 prices and improved availability by 75%. The company also focused on product quality and innovation by improving and introducing about 3000 food lines in 2006 alone. In January 2005 Sainsbury s led the industry on nutritional labelling by introducing a traffic light system called the Wheel of Health to help customers understand more about the food they buy and the healthy food choices they can make. In September 2005, Sainsbury s launched Try Something New Today , a campaign to encourage customers to try new products and ingredients. By 2006, the Wheel of Health label had appeared on over 1700 products. In addition Try cards, outline simple but effective ways for customers to make small but significant changes to the food they eat. The campaign, promoted in stores, newspapers, magazines and on TV, has been hugely successful, with over 7 million Try cards picked up in stores. Downloads from the website are available to support these campaigns. Sainsbury s sells 6bn worth of British food every year. The company works closely with smaller-scale businesses to expand local sourcing wherever possible, and has a network of over 3500 local suppliers. In May 2006, Sainsbury s launched Supply Something New , a dedicated website which makes it easier for small and medium-sized suppliers to sell unique local products to Sainsbury s. Non-food ranges (clothes, accessories, DVDs, greetings cards, homeware, electrical etc.) are also an important part of the customer offering at Sainsbury s and now account for about 10% of turnover. Sainsbury s target is to generate additional sales of 700m from its non-food ranges. Sainsbury s continues to support local communities and charities. In 2006, the company donated activity equipment and experiences worth more than 17m to over 80% of all UK primary and secondary schools through its popular Active Kids campaign. In addition, in 2005/6 Sainsbury s and its staff had donated almost 9m to a variety of community and charitable projects. Sainsbury s now offer a huge range of convenient, great value goods and services, both in store and online. Some of the products include: food, drink, flowers, entertainment, banking, insurance, household, clothing and homeware. Source: Adapted from http://www.sainsburys.co.uk/home.htm A3B4W8 3278 2 [Turn over A3B4W8 3278 3 [Turn over Fig. 1 Screen shot of Sainsbury s homepage www.sainsburys.co.uk 1 Explain with reference to Fig. 1 what is meant by the term Internet . Give an example of its use. [4] Explain using examples, three categories of E-Commerce that an organisation such as Sainsbury s can use. [9] 3 Discuss using examples, the copyright and intellectual property rights of Sainsbury s. [9] 4 (a) Discuss three issues that Sainsbury s would have considered when adopting an online payment system. [9] 2 (b) Analyse three reasons why fast access is important for users of Sainsbury s website. [9] 5 6 Potential customers may be reluctant to purchase online. Evaluate five barriers to E-Commerce that Sainsbury s customers may experience. [20] Evaluate the perceived benefits of E-Commerce to Sainsbury s customers. [20] Permission to reproduce all copyright material has been applied for. In some cases, efforts to contact copyright holders may have been unsuccessful and CCEA will be happy to rectify any omissions of acknowledgement in future if notified. S 3/07 302-030-1 4 [Turn over

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Additional Info : Gce Applied Business January 2008 Assessment Unit AS 4 - E-Commerce
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