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GCE JAN 2008 : (AS 3) Marketing and Operations Management

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ADVANCED SUBSIDIARY (AS) General Certificate of Education 2008 Business Studies assessing Module 3: Marketing and Operations Management AST31 Assessment Unit AS 3 [AST31] MONDAY 21 JANUARY, AFTERNOON TIME 1 hour. INSTRUCTIONS TO CANDIDATES Write your Centre Number and Candidate Number on the Answer Booklet provided. Answer both questions. INFORMATION FOR CANDIDATES The total mark for this paper is 50. Quality of written communication will be assessed in all questions. 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. AST3W8 3851 1 Study the information below and answer the questions that follow. Location of Industry / Economies of Scale Stylo is a clothes retailer, specialising in ladies and men s fashions. The clothes that it sells are primarily aimed at the 18 25 year old age group. The shop is owned by Claire Mitchell and is located in Omagh where she has been trading for 5 years. The shop has a good reputation and sells items that are unavailable elsewhere in the area. Claire has decided to expand the business and intends to open up a similar shop in Belfast, although she is concerned that there might be too much competition in the city. She was born in Omagh and has lived her entire life there so she is unsure about where to locate the new business in Belfast. Claire has looked at premises in both the centre of Belfast and at locations on the outskirts of the city. There is a vast difference in the price of these premises. When she went to see her bank manager about possible finance for the expansion, Claire was asked whether she had considered all the implications of her business increasing in size. Fortunately, she was able to explain the various economies and diseconomies of scale that might arise. The bank manager was impressed by Claire s careful planning. (a) Explain the factors that Claire would need to consider when deciding where to locate her new business in Belfast. [10] (b) Discuss the economies and diseconomies of scale that may arise if Stylo increases its size. [15] AST3W8 3851 2 2 Study the information below and answer the questions that follow. Market Research Seamus McClements is the General Manager of Tymberlands, a family-run supplier of timber and wood products. The firm has existed since 1956 and gained a reputation of providing a friendly service to its customers. Tymberlands mainly sells its timber and wood products to the building trade, although some products are also sold to individuals. In recent years, the firm has experienced increased competition, especially from a large national Do-It-Yourself (DIY) retail outlet that has opened in the area. Initially, most of Tymberlands customers remained with the firm as they had accounts that they could settle at the end of each month. This was a major advantage as it meant that builders could use their timber before paying for it. However, some builders have started to buy from the DIY retailer as they can get all of their requirements under one roof. Joe Richardson, the Managing Director, has asked Seamus to carry out research for a business plan for a new extension to Tymberlands. He intends to use the additional space to sell a wider range of products. He hopes this will allow him to compete with the DIY outlet and may encourage some of his original customers to return. Seamus has no knowledge of how to carry out the research for the business plan as he has never been required to do so before. He proposes interviewing customers as they come into the timber yard asking them what they think about the new plans. However, Joe is not happy with this approach as he feels that the results will be biased. (a) Explain three advantages of Seamus conducting primary research. [10] (b) Discuss Seamus decision to conduct his research using face to face interviews. [15] THIS IS THE END OF THE QUESTION PAPER AST3W8 3851 3 SP (SM) T53483/3

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Additional Info : Gce Business Studies January 2008 Assessment Unit AS 3 Module 3: Marketing and Operations Management
Tags : General Certificate of Education, A Level and AS Level, uk, council for the curriculum examinations and assessment, gce exam papers, gce a level and as level exam papers , gce past questions and answer, gce past question papers, ccea gce past papers, gce ccea past papers  

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