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GCE JUN 2007 : (A2 12) The Global Market

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ADVANCED General Certificate of Education 2007 GCE Applied Business assessing The Global Market A6B61 Assessment Unit A2 12 [A6B61] TUESDAY 19 JUNE, 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. A6B61S7 2894 Case Study Study the information below and answer ALL the questions that follow. FG Wilson FG Wilson is the largest manufacturer of diesel and gas generators in the United Kingdom and is one of the largest employers in Northern Ireland. Worldwide the company employs over 2500 people. FG Wilson began life in 1966 in an old textile mill in Belfast. Since the mid-1970s the company experienced spectacular growth and turned a small family-run business into a large, internationally renowned exporter with sales offices and dealers on every continent. In 1992 the company moved to its present 700 000 sq ft factory in Larne, Northern Ireland. During the 1990s it opened a further two manufacturing facilities in Monkstown and Springvale. These produce many of the smaller components used in the production of the generator sets. The Wilson family sold the business to Emerson Electric in 1995 and then in 1996 Emerson announced a joint venture with Caterpillar Inc., with the intent of FG Wilson assembling part of Caterpillar s power generation range. FG Wilson became a wholly owned subsidiary of Caterpillar in 1999, making it an integral part of the Caterpillar family of companies which, as a group, is the world s leading provider of generator sets. The company has the capacity to manufacture over 50 000 generator sets per year, which are then exported to more than 180 countries worldwide. FG Wilson lies comfortably within the UK s Top 100 Exporters and holds the prestigious Investors in People Award, from the Government s Department for Education & Employment. FG Wilson believe that its success is a result of the strength of its Agents and Distributors that distributes the generators on its behalf. In many parts of the developing world its generating sets are the only source of reliable electricity. The generators give power to those who would otherwise go without, improving the quality of life in many of the least developed regions of the world. FG Wilson is a progressive and forward thinking company. It is continuously investing in both Business Process Improvement and Research and Development, to ensure that its generating products will continue to be the customers first choice. On the 10th April 2006 the company announced a 47 million investment creating 155 new jobs in Northern Ireland. This investment was supported by 12.2 million of assistance from Invest Northern Ireland. The then Enterprise Minister, Angela Smith said that the investment would strengthen the company s position as a centre of excellence for the manufacture of generator products. She added that FG Wilson s success showed that Northern Ireland companies can become leaders in the manufacturing sector. The reinvestment programme aims to boost the training and development of staff, increase sales and marketing support to increase the company s penetration in the Middle East, Europe and Africa and further enhance its systems to improve operational effectiveness on a global basis. A6B61S7 2894 2 [Turn over 1 Explain the impact that FG Wilson s global trading can have on the Northern Ireland economy. [4] 2 Explain the benefits to consumers of FG Wilson s global trading. [4] 3 Analyse four barriers to trade that FG Wilson might encounter when trading in the Middle East and Africa. [12] 4 Analyse four types of assistance which are available from Invest NI to FG Wilson that can aid global trading. [12] 5 Evaluate the different methods that FG Wilson could use to distribute its products. [24] 6 Evaluate FG Wilson s decision to trade globally. [24] THIS IS THE END OF THE QUESTION PAPER A6B61S7 2894 3 [Turn over S 8/06 0000 7-095-1 4 [Turn over

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Additional Info : Gce Applied Business June 2007 Assessment Unit A2 12 - The Global Market
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