Practise location decisions by applying factors to factories, shops or service businesses and weighing costs against long-term benefits.
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).
The Alternative Drum School (TADS) was set up in the wealthy area of Cricklade, England in 2008 by Ollie Tanner who had a passion for and enjoyed drumming. Ollie invested all of his savings into the drumming school. He saw the potential of being located away from other drumming schools.
Ollie promotes his business by writing columns in local papers, performing at local music festivals and by word of mouth recommendations. He has invested heavily in computer technology to allow students to produce the music they enjoy playing.
Ollie finds it difficult to maintain a good work-life balance. Ollie currently works 60 hours a week in a business that does not have reliable profits.
Analyse the importance of location for TADS.
AO2 = 3 marks AO3 = 3 marks
AO2
- TADS is located in a wealthy area near to people with more disposable income.
- TADS needs to be far away from competitors in the music school industry.
AO3
- It is important to be located close to the target market as parents may not want to travel far for the lessons for their children.
- As the service provided is specialised it is best to be far away from other drumming schools as not everyone will want to play them.
(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)
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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)