Practise applying location factors to real businesses, weighing labour, market access, transport, materials, competitors and online selling.
Starbucks continues to increase the number of coffee shops it is opening throughout the world.
Outline one reason why the proximity of labour is important to Starbucks.
A02-2 marks
Award 1 mark for identifying one reason why the proximity of labour is important to Starbucks plus 1 further mark for linking it to the context of the business.
- It provides increased access to potential workers (1) to serve as baristas in the shop (1)
NB Award a maximum of 1 mark if there is no context anywhere in the answer.
Accept any other appropriate response.
(2)
Starbucks is continually looking at different locations to open its new coffee shops. It is considering the following two options:
Option 1: open coffee shops in supermarkets
Option 2: open coffee shops in hospitals.
Justify which one of these two options Starbucks should choose.
AO2 = 3 marks, AO3 = 3 marks, AO4 = 3 marks
AO2
- Option 1 - If Starbucks opens coffee shops in supermarkets it could gain customers who want to have a coffee after finishing their shopping
- Option 2 - By opening coffee shops in hospitals, means that friends/relatives who have travelled a distance getting to the hospital can have a drink
AO3
- Option 1 - Customers may also be encouraged to purchase a cake if they have had a busy time carrying out their food shopping
- Option 2 - They may even take their relative in hospital for a coffee
AO4
- Option 1 - However, there is no guarantee that customers will want to stop and have a coffee after shopping they may prefer to go home
- Option 2 - However, there is no guarantee that visitors to the hospital would want to stay and have a drink if their time was limited
(9)
Level
Mark
Descriptor
0
No Rewardable material.
Level 1
1-3
- Limited application of knowledge and understanding of business concepts and issues to the business context. (AO2)
- Attempts to deconstruct business information and/or issues, finding limited connections between points. (AO3)
- Makes a judgement, providing a simple justification based on limited evaluation of business information and issues relevant to the choice made. (AO4)
Level 2
4-6
- Sound application of knowledge and understanding of business concepts and issues to the business context although there may be some inconsistencies. (AO2)
- Deconstructs business information and/or issues, finding interconnected points with chains of reasoning, although there may be some logical inconsistencies. (AO3)
- Makes a judgement, providing a justification based on sound evaluation of business information and issues relevant to the choice made. (AO4)
Level 3
7-9
- Detailed application of knowledge and understanding of business concepts and issues to the business context throughout. (AO2)
- Deconstructs business information and/or issues, finding detailed interconnected points with logical chains of reasoning. (AO3)
- Makes a judgement, providing a clear justification based on a thorough evaluation of business information and issues relevant to the choice made. (AO4)