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GCE JAN 2009 : (AS 4) E-Commerce

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ADVANCED SUBSIDIARY (AS) General Certificate of Education 2009 GCE Applied Business assessing E-Commerce A3B41 Assessment Unit AS 4 [A3B41] TUESDAY 13 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 Question 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. A3B4W9 4042 Read the information below and answer the questions that follow. Case Study The Post OfficeTM and E-Commerce The Post Office Ltd is a wholly owned subsidiary of the Royal Mail Group plc and operates under the Post OfficeTM Ltd brand, managing a nationwide network of around 14 600 post office branches. The Post Office Ltd offers a wide portfolio of over 170 products and services including government services, banking, savings and investments, retail, travel services, postal services, bill payment services and benefit payment services. The market in which the Post Office network operates has changed beyond recognition over the last fifteen years. Increasingly, people choose to send an e-mail or text, pay bills by direct debit or use Internet banking, whilst others choose to have state benefits paid into their bank accounts. Postage stamps, which were usually only available at post offices, can today be bought at 50 000 other retail outlets. They can even be personalised and bought through the Internet. Many rural post offices face possible closure as a result of new technology, changing habits, lifestyles and a wider choice of accessing services people are visiting their post offices less often. Therefore, the Post OfficeTM must adapt to the different ways people are choosing to access services. In May 2007, Post Office Ltd Financial Services was launched as a joint venture with the Bank of Ireland. Confirming its position as the fastest growing financial services provider in the UK, as it welcomed its millionth customer, the Post Office Managing Director, Alan Cook said: Post Office Financial Services entered the market with the aim of challenging what other financial services providers were offering, across all products from car insurance to savings accounts and credit cards. Gaining one million customers in approximately 1000 days confirms that we were right people want easy to understand, good value products. This demonstrates the outstanding growth of Post Office Ltd Financial Services. Post Office Ltd sells 1 in 50 of all car insurance policies in the UK, 1 in every 25 credit cards issued last year was from Post Office Ltd and 2 billion has been invested in the Post Office Ltd savings products. In addition, 1 in every 200 homes in the UK is insured with the Post Office Ltd. This success builds on the Post Office s position as the largest independent provider of travel insurance in the UK. The Post Office offers many services online including mail services, personal banking, National Lottery, mobile phone E-Top-Up, insurance and foreign currency. The Post OfficeTM has decided to diversify by entering the increasingly competitive broadband market. The Post OfficeTM already offers a home telephone service in direct competition with BT. It will now try to challenge BT for people s high-speed Internet access. A spokeswoman for the Post OfficeTM said: we are looking to expand our telephony services in the future and broadband is one of the ways we wish to do that. We are currently examining ways we can enter the market . The step into broadband would signify further diversification for the Post Office Ltd away from its core mail business. Since the Internet has been central to its decline, it is fitting that the Post Office Ltd is turning to broadband provision to reverse its ailing fortunes. Source: adapted from (i) http://www.dti.gov.uk/files/file36025.pdf; (ii) http://www.cw.com/docs/solutions/case_studies/po-cs.pdf; (iii) http://www.postoffice.co.uk A3B4W9 4042 2 [Turn over Source: http://www.postoffice.co.uk/portal/po Fig. 1 A3B4W9 4042 Post Office Home Page 3 [Turn over 1 Explain three reasons for the growth of E-Commerce with regard to the Post Office. [6] 2 Identify three copyright and intellectual property rights that the Post Office needs to consider when trading online. Explain any two of these rights. [7] 3 There are various financial costs to the Post Office of going online . Identify and explain four of these costs. [12] 4 Analyse five factors which contribute to the effectiveness of the Post Office web site with reference to Fig. 1. [15] 5 Evaluate five benefits to the Post Office of using E-Commerce. [20] 6 Evaluate the main benefits of E-Commerce for customers of the Post Office. [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 11/07 935-010-1 4 [Turn over

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Additional Info : Gce Applied Business January 2009 Assessment Unit AS 4 - E-Commerce
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