Changes in Distribution
Analyse changes in distribution methods, including online selling, home delivery, intermediaries, retailer roles, customer access, cost and convenience.
- Syllabus
- First assessment 2019
- Course
- Business XBS11/YBS11
- Level
- AS
Analyse changes in distribution methods, including online selling, home delivery, intermediaries, retailer roles, customer access, cost and convenience.
Extract E Mr Cory's Cookies Young entrepreneur Cory Nieves is also known as Mr Cory. When he was five years old he started selling hot chocolate in his neighbourhood to raise money to buy a car for his family. Cory then began selling lemonade and cookies to increase the buying options for his loyal customers. His passion and entrepreneurial spirit, combined with a love of treats, led him to be the owner of Mr Cory's Cookies at six years old. Cory's mother, Lisa, spent many months learning how to bake the cookies. She then test marketed each batch in the local area. The business became famous in the local community for Cory's chocolate chip cookies, which continue to be the best seller. The product line has expanded, and the cookies are manufactured using only natural and high-quality ingredients. The cookies are now only available online. Due to the publicity he received as a young entrepreneur, Cory has had many television appearances and has worked with large companies and brands such as Mercedes Benz, Ralph Lauren, TOMS and Macys. In addition, he has worked with non-profit organisations such as the Children's Aid Society.
Extract F The value of Mr Cory's Cookies The sweets and snacks market is extremely competitive and the market is growing. In 2021 Cory Nieves was 17 years old and the value of his business had increased to $ 1500000. Value of Mr Cory's Cookies (2018-2021)

Assess the decision by Mr Cory's Cookies to use only online retailing to sell its
cookies.
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
- Online retailing is the sale of goods and services using the
internet
- The advantage to Mr Cory's Cookies is that because it is not selling
to supermarkets or wholesalers, it may be able to increase its
profit margins
- Not having a physical shop to sell the cookies reduces operational
costs which may enable them to sell the cookies at a competitive
price
- Due to changing social trends more people prefer to shop online
and following this trend may lead to increased revenue for the
business
- However, the cookies are now only sold online and may not be as
accessible to the local community who were initially the main
customers of the business. This may lead to a decrease in
sales/reputation in its local area
- If the online service is not reliable and/or connectivity is poor this
will impact the service and discourage customers from using the
service
- Some consumers may prefer to buy food items such as cookies in
a store where they can see, smell and taste the cookies
- The costs of distribution may be high for a small business due to
the need to manage a high volume of smaller orders of cookies
rather than larger orders direct to supermarkets and wholesalers
Level
Mark
Descriptor
0
No rewardable material.
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
5-7
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
8-10
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 a flexible workforce may help Toyota achieve its vision.
Indicative content