Practise location decisions by applying factors to factories, shops or service businesses and weighing costs against long-term benefits.
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)
After a recent increase in customer numbers Four Fitness is considering opening a third gym.
State one factor Four Fitness may consider when choosing a location for its new gym.
A02-1 mark
Award 1 mark for a valid factor Four Fitness may consider that could influence the location of a new gym
- The proximity to suitably qualified gym instructors who will want to work at the gym (1)
NB Do not accept a factor that is not in the context of Four Fitness.
Accept any other appropriate response.
(1)
Cadbury was founded in 1842 when John Cadbury opened a shop in Birmingham in the UK. The shop sold cocoa and drinking chocolate. Cadbury is now one of the major chocolate manufacturers in the world.
In 1918 the first overseas Cadbury factory was opened in Hobart, Tasmania in Australia. Another factory opened in South Africa in 1938. Cadbury chocolates are sold across the world and other factories have been opened. Cadbury produces many well-known brands, such as Dairy Milk, Buttons and Crunchie. It also produces ice cream and cakes.
Cadbury is now part of Mondelez, the largest snack business in the world.
Analyse two factors that could influence Cadbury when locating a new factory.
AO2 = 3 marks AO3 = 3 marks
AO2
- Cadburymay need to move to a location where there are skilled employees, such as cake designers and biscuit bakers
- Locating near to motorways or railways means that cocoa can be delivered to Cadburyfactories using a variety of methods
(6)
Level
Mark
Descriptor
0
No rewardable material.
Level 1
1-2
- 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).
Level 2
3-4
- 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).
Level 3
5-6
- 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).