Supply chain considerations

Indicative content guidance
Answers must be credited by using the level descriptors (below) in line with the
general marking guidance. The indicative content below exemplifies some of the
points that candidates may make but this does not imply that any of these must
be included. Other relevant points must also be credited.
Knowledge, Application, Analysis, Evaluation - indicative content
- Supply chain considerations refer to the way a business treats and
monitors the labour involved in the production of raw materials,
components and services
- Like many global businesses Maxion Wheels has a code of conduct in
place to govern its relationship with its suppliers, part of which is
shown in Extract E
- This stipulates that Maxion Wheels will only deal with those suppliers
that adhere to its conditions
- Supply chain considerations are important to a global business for
several reasons
- Many global businesses do strive to behave in an altruistic manner
simply because it is considered to be the right thing to do, businesses
such as Patagonia, Starbucks, H&M and Dr Pepper are regularly praised
for their strong ethical commitment to suppliers
- There are also some sound business reasons as well such as improved
quality and reliability
- A supplier's labour force that is treated well with good pay and working
conditions is likely to be happier and more motivated, thus increasing
productivity and potentially lowering input costs and increasing
profitability or enabling lower more competitive prices
- Exploitation of labour and use of child labour is likely to reflect badly on
a global business resulting in adverse publicity and pressure from
consumers which can negatively affect sales
- Recent examples include the fashion chain Boohoo which saw large falls
in its sales and share price following revelations about poor treatment
of workers in its supply chain
- However, just because a business has an ethical supply chain policy it
does not mean it carefully follows it
- Some businesses may face pressure from owners or shareholders to
maximise profits and this may mean sourcing cheaper supplies from
less scrupulous suppliers
- Businesses that are revealed to have problems in the supply chain may
not be too badly affected (if at all) such as Apple and Primark


Level

Mark

Descriptor

0

A completely inaccurate response.

Level 1

1-2

Isolated elements of knowledge and understanding - recall based.
Weak or no relevant application to business examples.
Generic assertions may be presented.

Level 2

3-4

Elements of knowledge and understanding, which are applied to the
business example.
Chains of reasoning are presented, but may be assertions or
incomplete.
A generic or superficial assessment is presented.

Level 3

5-8

Accurate and thorough knowledge and understanding, supported
throughout by relevant and effective use of the business
behaviour/context.
Analytical perspectives are presented, with developed chains of
reasoning, showing cause(s) and/or effect(s).
An attempt at an assessment is presented, using quantitative and/or
qualitative information, though unlikely to show the significance of
competing arguments.

Level 4

9-12

Accurate and thorough knowledge and understanding, supported
throughout by relevant and effective use of the business
behaviour/context.
A coherent and logical chain of reasoning, showing cause(s) and/or
effect(s).
Assessment is balanced, wide ranging and well contextualised, using
quantitative and/or qualitative information and shows an awareness of
competing arguments/factors, leading to a supported judgement.


Question


Evaluate the extent to which the actions of multinational corporations (MNCs) can be controlled.

Indicative content