Centre
Number
Surname
Candidate
Number
2
Other Names
GCE AS/A level
1081/01
S15-1081-01
BUSINESS STUDIES – BS1
A.M. MONDAY, 18 May 2015
1 hour 15 minutes
For Examiner’s use only
INSTRUCTIONS TO CANDIDATES
Maximum
Mark
1.(a)
4
1.(b)
4
2.(a)(i)
3
2.(a)(ii)
5
2.(b)(i)
3
2.(b)(ii)
6
2.(c)(i)
3
2.(c)(ii)
7
3.
6
4.
9
Total
50
Mark
Awarded
10 81
010 0 01
Question
Use black ink or black ball-point pen. Do not use pencil or gel pen. Do not use correction fluid.
Write your name, centre number and candidate number in the spaces at the top of this page.
Answer all questions.
Write your answers in the spaces provided in this question-and-answer booklet.
If you run out of space, use the continuation pages at the back of the booklet, taking care to number
the question(s) correctly.
INFORMATION FOR CANDIDATES
Mark allocations are shown in brackets.
You are reminded that assessment will take into account the quality of written communication used
in answers that involve extended writing (question 4).
MAY1510810101
© WJEC CBAC Ltd.
AM*(S15-1081-01)
2
Examiner
only
Answer all the questions in the spaces provided.
1. Welsh councils’ budgets announced
Council spending fell from £4.648bn in 2013 to £4.466bn in 2014. This is the total amount of
cash available to councils around Wales to pay for services such as refuse collections, libraries,
leisure centres, street lighting and public toilets. This resulted in cuts in the provision of both
public goods and merit goods.
Source: BBC News, Wales Politics 18 October 2013
(a)
With the use of examples, briefly explain the meaning of the terms:
[4]
(i) public goods
(ii) merit goods
(b)
How might these cuts in services impact on local communities across Wales?
[4]
8
02
© WJEC CBAC Ltd.
(1081-01)
3
Examiner
only
2.
Iceland Foods Ltd is one of Britain’s fastest-growing and most innovative retailers and is
recognised as one of the best companies to work for. In June 2012, Iceland acquired its supplier
Loxton Foods Limited (renamed Iceland Manufacturing Limited in April 2013) to help the company
develop new products more quickly and secure the benefits of vertical integration.
The introduction of a new ‘Posh Grub’ range is an example of how it is segmenting the market
and appealing to customers who may not have considered shopping at Iceland in the past.
The company has achieved considerable success in recent years. It employs a combination of
modern batch and flow production methods to produce many of its products, introducing 400
new lines in 2012.
Adapted: The Iceland Story-Iceland.co.uk 2013
(a)
(i) Explain, with the use of an example, what is meant by vertical integration.
[3]
(ii) How might Iceland Foods Ltd benefit from vertical integration?
[5]
10 81
010 0 03
03
© WJEC CBAC Ltd.
(1081-01)
Turn over.
4
(i) What is meant by segmenting the market?
(b)
[3]
(ii) Explain the possible advantages to Iceland Foods Ltd of segmenting the market.
[6]
04
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(1081-01)
Examiner
only
5
(c)
(i) Briefly explain, with the use of an example, the process of batch production.
[3]
Examiner
only
(ii) Discuss the view that manufacturers, such as Iceland Foods Ltd, will always benefit
from the introduction and use of flow production.
[7]
10 81
010 0 0 5
27
05
© WJEC CBAC Ltd.
(1081-01)
Turn over.
6
3. Many businesses in the UK are operating in an increasingly global economy. For some
businesses, whether they are in the primary, secondary or tertiary sectors of the economy, this
has created opportunities; but for others it has proven to be very challenging.
Examiner
only
The number employed in the secondary sector has continued to decline, whilst the proportion of
workers employed in the tertiary sector has continued to increase. These changes in employment
patterns have shown little sign of slowing down in the last twenty years.
Employment Structure for
the UK 2013
Primary
Secondary
Tertiary
Explain why the number of people employed in the secondary sector over the last 20 years has
continued to decline, whilst those employed in the tertiary sector have risen steadily.
[6]
6
06
© WJEC CBAC Ltd.
(1081-01)
7
Examiner
only
4. ‘The Interior’ partnership is formed
Anna Lewis, an interior designer, had worked from home as a sole trader since finishing her
training. Three months ago she had a chance meeting with an interior decorator called Charlie
Rolls at a local trade centre. They got chatting and Charlie asked Anna if she wanted to do some
design work for a refurbishment project he was currently undertaking. She accepted the work
and they both made a good profit from the job.
To her surprise, Charlie called her three weeks later and suggested that they form a partnership.
He had found a retail shop and small workshop for rent, which could be their new base –
something which neither could have afforded to do if operating alone. By combining their skills,
he felt they had a complete package to offer to both their new and existing customers.
Anna knew that she needed to give this some careful consideration and promised to let Charlie
know her decision within the week.
Advise Anna whether she should enter into a partnership with Charlie or remain operating as a
sole trader.
[9]
07
© WJEC CBAC Ltd.
(1081-01)
Turn over.
8
Examiner
only
END OF PAPER
08
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(1081-01)
9
9
BLANK PAGE
PLEASE DO NOT WRITE
ON THIS PAGE
09
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(1081-01)
Turn over.
10
Additional page, if required.
Write the question number(s) in the left-hand margin.
Question
number
10
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(1081-01)
Examiner
only
11
Additional page, if required.
Write the question number(s) in the left-hand margin.
Question
number
11
© WJEC CBAC Ltd.
(1081-01)
Examiner
only
12
BLANK PAGE
PLEASE DO NOT WRITE
ON THIS PAGE
12
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(1081-01)