Unit 2 Growing as a Business 2012 Example answers - School

GCSE BUSINESS STUDIES
Other Guidance
• Unit 2, 2012, Exemplar Student Answers
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2
1
Item A
Fire Aware Safety Training Ltd
Former fire fighter, David Smith, set up Fire Aware Safety Training Ltd (FAST) in 2003.
David is the main shareholder and manager of the company which employs ten people
as trainers.
FAST provides fire safety training to businesses. For a fee, businesses can send their
employees to an off the job safety training course at the FAST training centre. At the
centre, the employees will be trained in how to prevent fires and how to use fire
extinguishers correctly. The FAST training centre is equipped with latest fire fighting
equipment. FAST rarely advertises the training that it offers. It relies instead on its
customers coming back for more training and recommending FAST to other businesses.
David spoke to a manager of a business that uses FAST’s training. The manager felt
that the quality of training that her employees recently received was not as good as
previous FAST courses. She had been told that the courses were boring and the
trainees had not learnt enough. David wants to get regular feedback on how well the
training courses went so that he can improve them in the future. He is thinking about
the different ways in which he might get this information.
3
1
(a)
What is meant by off the job training?
(2 marks)
Response A
Training employees at the premises of the business (?) usually at a specialist centre. 
Off the job training can be conducted at the business’s premises, but the student does not make
this point clear. One mark is given for the training taking place at a specialist centre.
1 mark awarded.
Response B
Off the job training means learning  away from the normal place of work.  FAST is an off
the job training company.
One mark for ‘learning’ - the student understands the term training. Another mark is given for
stating this occurs away from the normal place of work. Whilst not needed to secure full marks, the
FAST example would have gained the student an additional mark.
2 marks awarded.
Response C
This is when you are trained off the job. You don’t get payed while you are training as you are
off the job.
The first sentence merely repeats the wording off the job training, and showing no understanding of
the term. The second sentence is incorrect and again fails to demonstrate any knowledge or
understanding.
0 marks awarded.
4
1
(b)
Explain why businesses might choose to have their employees trained in
fire safety at the FAST training centre, rather than train them in-house. (4 marks)
Response A
External centres such as FAST are often taught better as they have better skills and more
developed knowledge, (L1- this is descriptive, FAST is mentioned but without real context so
far) therefore the employees can be taught fire safety to a higher level which then makes the
workplace safer and more efficient. (L2 – there is now some application with context). Also if
they were taught on the job by their own supervisors, they may pass on bad habits. The
employee would then pick up these habits which for fire safety is too dangerous to risk (L2).
Therefore, they get the most well rounded knowledge of how to operate fire extinguishers etc.
Without bad habits they can be more efficient.
The student addresses the question of why FAST training might be preferable to that provided inhouse. The question of safety is developed and a good explanation of the issues given. The
student attempts to show that efficiency is improved with off the job training, but the point is not
explained clearly. Nevertheless the student has good explanation in context and can be rewarded
with full marks within L2.
4 marks awarded.
Response B
So they get more experienced training, more proffessional aswell. This will ensure the
employee get the full training to be safe and quick when a fire emerges (L1)
The student gives a reason for using FAST-type training but does not offer any real explanation of
the point raised, limiting the answer to L1. Explaining why FAST’s training was more professional
than in-house training would have probably allowed the students to access L2.
2 marks awarded.
Response C
This is because off the job will provide them with expert advice and tips, that can be brought
back to the workplace, and also increase a workers motivation, in they feel they’re gaining
good qualifications thus making them feel valued and improve their productivity (L1) and also
train employees to use the latest fire equipment to improve the quality of work at their own
work place. (L2)
The student starts this answer by considering some benefits of off the job training but without clear
explanation or context. The motivation argument is good but lacks the context to take the answer
to L2 at this point. Context is offered towards the end, but the link between being able to use the
latest fire fighting equipment and improving the quality of work is not made explicit. L2 is given for
the motivation argument with limited context taking the answer just into that level.
3 marks awarded.
5
1
(c)
Explain how David might use the feedback from the training to improve
FAST courses.
(4 marks)
Response A
David might use the feedback by using the information on the feedback and acting on it this
will make sure the customers want it like that (L1), however The feedback given might be
timely or costly.
The student does recognise that the feedback allows David to give his customers the service that
they want, which is a valid point. L1 is just accessed and because of the limitations of the answer,
only one mark is given.
1 mark awarded.
Response B
David could take the feedback from the FAST courses to set the business aims and objectives
to improve customer satisfaction. (L1 – descriptive account only so far). One customer said
that her employees found the course boring (L2 – context provided). David could take this
feedback and observe the courses or do appraisals with his employees to identify ways in
which the FAST courses could be made less tedius.
There is clear context to the FAST course and explanation which will give a L2 mark. The student
identifies the shortcomings of the FAST courses and goes on to suggest ways in which this
feedback could lead to appraisals and observations to check on quality.
4 marks awarded.
Response C
David might use the feedback from the training to make the training sessions more fun and
interesting, (L2 – applied with context). Therefore the business will use this more often. For
example, David had spoke to a manager of a business that uses FAST’s training and got
feedback that the training had not given the employees enough information to learn enough,
(L2) therefore David can add more to learn.
As with the previous response to the question, this student uses the case study to provide context
but fails to develop the simplistic solution offered (to add more material to the course). The answer
is just into L2.
3 marks awarded.
6
1
(d)
To help David improve the training courses in the future, he is considering two
ways of getting regular feedback:
• getting his trainers to write a report on how each course went
• asking the people on the course to complete a questionnaire, saying what they
thought of the course.
Advise David on which method he should use. Give reasons for your advice.
(9 marks)
Response A
I think that David should follow through with the questionnaire idea. I feel as though this would
be the most efficient and reliable way for many reasons. One of my reasons for this is because
the questionnaires are easier and quicker to fill out (E1 - basic judgement is made with limited
support). This means that the employees/trainee’s on the course can go from there ideas in
their head straight down to the paper. Whereas if the trainers wrote a report on each individual
experience it would mean that if FAST had another course after a previous one. The new
people would be waiting around for the trainers to complete this report before starting which
could result in their feedback being very agile (?) and not very good. (L2 - there is some
context with explanation, rather than analysis) Also the staff might change the trainee’s
feedback to make them and the course look good when it wasn’t.
The student starts with a judgement and goes on to provide some justification for this. This can
only be regarded as limited support, giving an E1 mark. There is some explanation of the issues
towards the end of the answer, but this never becomes analytical, leaving the student with L2 and 2
marks.
L: L2 2 marks awarded (out of 4).
E: E1 2 marks awarded (out of 5).
7
Response B
Firstly, getting his trainers to report on each course would be a good idea as they can
compare it to previous courses they may have done. (E1 – judgement with limited support)
David would be able to find out what his employees want to improve/amend on the course.
But they may be biased and say it was good with no problems just so they don’t get
questioned or disciplined. (L3 – evidence of analytical thinking) So David may not get truthful
feedback because of this. (E2 – support is more detailed now)
On the other hand, asking people on the course to complete questionnaires, depending on
how detailed or well-written the questionnaire is will have an impact on the quality of the
feedback that David will get about the course (L3). Also if it is too lengthy people may lose
interest and just write anything down so they can complete it and leave. But getting feedback
this way will be more unbiased and truthful as they aren’t going to gain/lose anything from it,
so they will say what they feel. However, they may not have previous courses to compare it to
so might not be overly good (L3 – analysis which supports judgement) but still will give David
some feedback. So overall looking at the two options I believe that David should ask the
people on the course to complete the questionnaires because of the prementioned reasons
that it would be unbiased truthful and give a range of different opinions so he will get the
bigger picture. (E2)
There are a number of occasions where analytical thinking is evident, allowing L3 marks to be
awarded. Because of the frequency of the analysis, 4 marks are awarded within L3. The student
appears to change the recommendation from trainer reports to questionnaires during the course of
the response, but reaches a firm recommendation at the end. The support for this judgement is not
particularly strong at the end of the answer, but the student has established a clear justification for
using questionnaires in the middle of the response. The QWC is of a good standard and takes the
Evaluation mark to the maximum.
L: L3 4 marks awarded (out of 4).
E: E2 5 marks awarded (out of 5).
Response C
The first option getting the trainers to write a report is a good idea as the trainers know what to
look for within the course as they run it Also the trainers could be told what to look out for
within the customers during the course. (E1 Judgement made but the reason is not clear)
However some bad points could be that the trainers could be biast (biased) and lie on the
report. (L2 – explanation, not developed to become analysis)
The second option, asking the customers to fill out a questionnaire is also a good idea
because the feedback comes directly from the customer who have paid and experienced the
training. Another good point is usually people are honest on feedback questionnaires so
David will get reliable feedback. (L3 low level analysis)
Overall I believe asking people to fill out a questionnaire is the best option as David will gain
more feedback from each course as he could ask all the customers whereas there may be
only one trainer available so only one report will be gained (E1 – there is only limited support
for judgement) This will help the business in the short and long term as things could be
changed quicker so customers are happier, therefore, they get more, which in turn brings in
more profit. (Formulaic ending which adds little to the response - L2)
There is some evidence of analysis but this tends to be inconsistent, just getting into L3. There are
judgements made throughout the response, but in each case the support is superficial. Had the
reasons for the choice made in the first sentence of the last paragraph been developed, it would
have allowed the answer to gain E2 marks. QWC is sufficiently good at this level to take the mark
to 2 within E1.
L: L3 3 marks awarded (out of 4).
E: E1 2 marks awarded (out of 5).
8
2
Item B
Promotional Products Ltd
Promotional Products Ltd (PP Ltd) sells items such as key rings, pens, computer mouse
mats and memory sticks in large quantities. These items are sold to other UK companies,
who give them away as freebies to promote their own businesses. All of PP Ltd’s business
comes from internet orders.
PP Ltd buys the items in bulk from suppliers based in China. The company uses Chinese
suppliers as they are much cheaper than UK businesses. Once PP Ltd has an order, it prints
the customer’s name, logo or slogan onto the items to personalise them.
PP Ltd has seen a huge rise in the sales of computer memory sticks. However, its
customers are buying far fewer computer mouse mats. PP Ltd’s managers believe that
mouse mats have entered the decline phase of their product life cycle.
Overall, the demand for PP Ltd’s products has increased over the past five years. PP Ltd’s
managers believe that the time is right to open a new factory. The managers would like the
business to be based in one location, where the manufacture of the freebie items, the
printing on these items and the office work all take place. The Chinese government is very
keen to get UK businesses like PP Ltd to move to China. PP Ltd’s managers have been
offered rent free offices close to the suppliers.
9
2
(a)
Describe one advantage to PP Ltd of selling its goods only on the internet.
(2 marks)
Response A
One advantage of selling goods in the internet is that it is faster and also cheaper
 to do.
This student offers two advantages (when one is required) and describes neither. Faster is rather
vague without description but cheaper is allowed for one mark.
1 mark awarded.
Response B
PP Ltd do not have to pay a large amount in rent because it can function from wherehouses
not on stores. 
A suitable reason is identified and sufficient description added to gain maximum marks.
2 marks awarded.
Response C
Internet sales can be done at any time of the day  therefore continuous sales can be done
without the hassle of having to abide by opening hours of a shop. 
The benefit of greater flexibility is recognised with adequate description for 2 marks.
2 marks awarded.
10
2
(b)
Explain why the demand for computer mouse mats bought as promotional
freebies might have fallen.
(4 marks)
Response A
The demand for computer mouse mats might have fallen because everyone nowadays has a
personal computer which usually provides one. (L1 Reason for fall in demand identified but
not in context)
This response fails to address the question which asks for reasons why mouse mats bought as
promotional freebies might have fallen. Instead the student gives a reason why the demand for
mats might have gone down without linking the answer to the bulk buying of a promotional material.
1 mark awarded.
Response B
Because they are a bigger item and would use up more storage space.(L2) Also not all of their
customers might not have a computer, they might have a laptop and you can use all the other
items they sell on everything.
This answer just gets into L2 by loosely acknowledging the fact that the items can be bulky when
bought in large numbers. This could be seen as a valid contextual reason why the demand for the
mats might have gone down.
2 marks awarded.
Response C
As technology is getting better the use of the mouse mat won’t be as important (L1).
Businesses might feel the product is to big to give out as a freebie. Also mouse mats are old
fashioned and the business may think it makes them look out of touch with technology if it gives
them out as freebies and so not a good firm to deal with. (L2)
This is a good response. The student identifies two contextual reasons why the demand for mouse
mats might have fallen. The second reason is explained well and is rewarded with the maximum
marks.
4 marks awarded.
11
2
(c)
Describe how PP Ltd might extend the life cycle of its products such as the
computer mouse mats.
(4 marks)
Response A
PP Ltd might extend the life cycle of the mouse mats by giving them to the public so that way
the public might buy the mouse mats and get more sales. (L0)
The student hints at offering free samples to stimulate demand for the product, but this strategy is
not expressed explicitly enough for it to be certain that this is the meaning. The student fails to
score on this question.
0 marks awarded.
Response B
PP Ltd could extend the life cycle of products eg mouse mats by adding a bit more creativity to
the product. For example you could get the product in a certain shape or size (L1 – this is an
acceptable product modification) adding diversification, This allows more business to want to
buy more products as it advertises the business in a better way. (L2 – there is some attempt to
link the strategy to the product which is a promotional freebie)
A suitable strategy is identified, albeit not described in detail. There is sufficient context in the last
sentence to take the answer just into L2.
2 marks awarded.
Response C
They could use extension strategies such as ordering them to be made from a different
material, (L1) if they could add a wrist band to make them more comfy (L2). They could do
offers such as buy so many and then get a discount, or they could even give pens away with
them.
The student provides a series of possible extension strategies each with little development or
description. The addition of a wristband provides context, however, and allows the response to
access L2. Had the student described how this would stimulate demand for these freebie items, a
higher mark would have been awarded.
2 marks awarded.
12
2
(d)
The demand for PP Ltd’s products has increased and the managers want to open
a new factory. It is considering two locations in:
• the UK or
• China.
Advise PP Ltd’s managers on which is likely to be the best option. Give reasons
for your advice.
(9 marks)
Response A
Firstly, you would need to take into account where PP Ltd are currently based as depending on
the distance from the UK and China would depend on the costs involved. (Limited attempt at
analysis)
Moving and opening a new factory in the UK would move the business closer to its customers
and would therefore make it easier to sell and would cut down on postage costs. But you
would also have to take into account the cost of bills, rent etc and whether it would be profitable
or a loss for the business (L3 – analysis becomes stronger). Whereas opening a new factory in
China would move them closer to their supplier. This would cut down on transport costs and
could get materials cheaper but they would be further away from their customers. However the
benefit of free office rent may interest the business to move over there as they will have less
expenses. (L3)
So overall, looking at both locations, they both have advantages and disadvantages for the
reasons aforementioned however, I think it’d be best if PP Ltd opened a new factory in China
on the basis of being closer to suppliers and less expenses (E2 – justification supported).
There is sufficient accumulation of analytical comments to take the answer to the higher of L3
marks. The judgement made is less strong. The recommendation is supported, taking the
response to the higher E level, but the student relies to a large extent on repeating the earlier
analysis, so it is middle of E2. The QWC is good and confirms this mark.
L: L3 4 marks awarded (out of 4).
E: E2 4 marks awarded (out of 5).
13
Response B
PP Ltd could open a new factory in the UK because it already has one in China. It could help
the business become multinational therefore in the long run might even be able to sell to
China which will increase the market of the business. (L3 – not a strong argument but
evidence of analytical thinking)
However employing workers in the UK is expensive compared to China and motivation is
harder to be kept therefore opening a factory in the UK might be too expensive.
PP Ltd could also open a new factory in China as it would be cheaper to open a factory there
as there has been an offer of rent free offices close to the suppliers (clear context provided as
well as a valid point raised), and wages for Chinese workers is low, therefore costs of opening
a factory in China is low.
However, transportation costs are very high from China to the UK therefore costs of
transportation could add up to a factory in the UK.
I believe that PP Ltd should open up a factory in the UK (E1) as it already has one in China
therefore increasing the base of the business. However it would help if the cost of opening a
factory in both countries was shown.(E2 - valid observation that affects judgement)
The student produces a cost-based balanced argument of the two options that demonstrated some
analysis and higher levels of evaluation. There is some misunderstanding (PP does not currently
own a factory in China) and undeveloped assertions (motivation is poor in China)
The analysis is not strong but definitely takes the response to L3. There is support for the
judgement accessing E2 but the QWC is not strong leaving the mark in the middle of the range.
L: L3 3 marks awarded (out of 4).
E: E2 4 marks awarded (out of 5).
Response C
I think they should open the new factory in the UK because if the demands are coming from
the ‘UK’ they should stay in the UK. (E1 – judgement with limited support) This will save them
money on transportation. If they base in China they will have to spend money on transport.
(L2 – some explanation of the issues taking mark just into this level)
Another Reason might be to stay in the UK is ‘UK’ quality is much Better depending on where
they get there material from.
In my opinion if they decide they want to get a lot in Bulk they should make there factory in
China (E1 – still no real support). If they decide they want Both Quality and Quantity they
should make the factory in the UK. However this means there Revenue going to go down as
they are spending more money on Quality.
The student seems to be trying to analyse in the second half of the answer, but the chain of
thinking is not at all clear and cannot be rewarded with L3 marks. There is, however, some
explanation of cost considerations. There are two conflicting judgements made and neither has
enough support to gain E2 marks. Despite the spelling and grammatical errors, the piece is
readable at this level allowing it the higher of the two E1 marks.
L: L2 2 marks awarded (out of 4).
E: E1 2 marks awarded (out of 5).
14
3
Item C
Imber Showers Ltd
Imber Showers Ltd is a UK manufacturer of electric shower units. The shower units are
manufactured on a flow production line with as many as 20 people specialising in assembling
the many different parts of each shower.
Imber Showers Ltd buys the components used to make the shower units from several UK
suppliers. It tries to keep costs down by buying from the cheapest suppliers. This means
that Imber Showers Ltd often changes its suppliers when it finds another one which is
cheaper.
The company is facing increased competition. The managers believe that in order to
compete, Imber Showers Ltd needs to increase the range of showers available to customers,
so that it can target different types of customers. The managers also believe that they could
reduce costs further by introducing Just in Time (JIT) stock control.
Figure 1: Extracts from Imber Showers Ltd’s Balance Sheet 2011 and 2012
Current assets
Fixed assets (non-current assets)
Current liabilities
Long-term liabilities (non-current liabilities)
Current ratio =
Current assets
Current liabilities
The current ratio for 2011 is 1.28.
2012
(£000)
2 700
10 700
2011
(£000)
3 200
10 300
3 000
11 000
2 500
12 000
15
3
(a)
What is meant by the term ‘current asset’?
(2 marks)
Response A
Current assets means fixed profits that are coming into the business. And how much they
are spending on supplies.
The student does not understand this term. There is nothing that can be rewarded.
0 marks awarded.
Response B
A current asset is something the business owns that can be turned into money quickly .
For Imber Showers Ltd this could be their shower unit stocks or any cash in the bank.
This is a good answer. The student has demonstrated an understanding of both an asset and the
meaning of current in a financial sense. The examples are both correct and would had attracted
one mark had the maximum mark not been reached already.
2 marks awarded.
Response C
Current assets are the things they own that is harder to turn into money eg the buildings of
the firm.
One mark is given for knowing the meaning of an asset. The student confuses current with fixed
assets, however, and cannot gain the second mark.
1 mark awarded.
16
3
(b)
(i)
Using the formula in Item C, calculate Imber Showers Ltd’s current ratio for 2012.
Show your workings.
(2 marks)
3
(b)
(ii)
Imber Showers Ltd’s current ratio has changed between 2011 and 2012.
Describe how this change might affect Imber Showers Ltd.
(3 marks)
Response A
i)
Current ratio = current assets/current liabilities
2700/3000 = 0.9 
ii)
The ratio change between 2011 and 2012 is a big difference. (Imprecise – doesn’t identify a
fall in the ratio) This can affect the business because it shows that current liabilities has
increased which could have a good effect on the business.
i)
ii)
Correct answer, two marks.
The answer is vague and fails to show any understanding of the concept of liquidity.
i)
ii)
2 marks awarded.
0 marks awarded.
Response B
i)
2,700,000/3,000,000 = 0.9 
ii)
The current ratio for Imber Showers has lowered.  This means that the current liabilities the
business has are greater than the current assets. This may effect the business as they may
not be able to pay off their liabilities and so may need to use tactics such as sale and lease
back of the premises to pay off their debt. 
i)
ii)
Correct answer, two marks.
This is a very good answer. The student identifies the ratio has fallen and goes on to
outline the consequences of this for the business. The use of sale and lease back to fund
the deficit shows further understanding of the impact of the fall in liquidity.
i)
ii)
2 marks awarded.
3 marks awarded.
17
Response C
i)
Current ratio = current assets/current liabilities
2700000/3000000 = 0.9
0.9:1 
ii)
In 2011 Imber Showers Ltd had more assets than liabilities (doesn’t mention current) which
meant that they were in a good position because all of their liabilities could be paid of with the
assets.  The business was in a healthy state. However in 2012 Imber Showers Ltd had
less assets than liabilities showing that they aren’t in a good position as they wouldn’t be able
to pay off their liabilities if necessary. 
i)
ii)
Correct answer, two marks.
The student identifies that the current ratio has worsened for the company and states that
they are not able to pay off all the debts.
i)
ii)
2 marks awarded.
2 marks awarded.
18
3
(c)
Explain one advantage and one disadvantage for Imber Showers Ltd of using
flow production.
(6 marks)
Response A
One advantage of Imber Showers using flow production is that everyone has a certain job (L2
hints at how specialisation can increase productivity) so the production process may be
quicker. (L1 – advantage identified)
A disadvantage of Imber Showers Ltd using flow production is that the employees may work
at different rates, (L2 brief explanation of what causes the bottleneck disadvantage) therefore,
there may be a stack up of parts to make in the factory. (L1 disadvantage identified)
In both cases the student gives the advantage and disadvantage after including a low level
explanation. Two marks are awarded each for the advantage and the disadvantage.
4 marks awarded.
Response B
an advantage of flow production is the cost as it will be cheaper (L1 – identified advantage)
because you are constantly making it. (L2 – limited explanation) this mean’s you save money
and the profit margin goes higher.
a disadvantage of flow production is that the quality of the showers will poor (highly unlikely)
this means you will loose customers and purtential customers.
Overall I think they should not use flow production as the customers will not like the poor
quality.
The student fails to consider the costs of setting up a flow production system but is rewarded for
identifying the cost advantage. An attempt is made to explain this advantage but struggles to
provide any depth to the explanation. Two marks is given for the advantage.
There is no explanation why quality should fall with this type of production which is usually
associated with an increase in quality. Without this explanation this is an invalid disadvantage so
fails to score.
There was no need to provide a judgement, so no marks are given for the last paragraph.
2 marks awarded.
19
Response C
One advantage is that the rate of production will be fast and efficient. (L1 – benefit identified)
This is because the showers are made constantly and each of the 20 workers at a station are
expert in doing their job quickly (L2 – explanation given) and to a good standard as it the is
the only job they have to do, this is called specialisation (L2 further explanation)
One disadvantage is that if the company still wanted to increase this range of showers it
would be hard for them to do so (L1 – disadvantage identified) as they would have to
adjust/change machinery when a different product is being produced (L2 – valid
development). Flow production doesn’t suit this type of production very well as the business
will have to pay its workers even when nothing is being made as the machinery is being
adjusted. (L2 – good development)
The student identifies both an advantage and a disadvantage. In both cases, the point is explained
clearly allowing maximum marks to be awarded for each.
6 marks awarded.
20
3
(d)
Advise the managers of Imber Showers Ltd on whether they should use
Just in Time (JIT) stock control to help them to reduce costs. Give reasons for
your advice.
(9 marks)
Response A
Just in time stock control would help reduce costs of the business as it would only buy the
amount of stock they need on that particular day which would save space for stock which could
be utilised in another way by the business. (L1 – no context so far)
However, this relies on the fact that suppliers have a good relationship with Imber Showers Ltd
and because Imber Showers use different suppliers (L2 - context provided) regularly this would
be a problem as past suppliers might not want to supply them anymore and their current
suppliers have probably not worked with Imber Showers Ltd long enough to have trust between
them yet. (L3 – good analytical comments) This could result in stock not arriving on time which
would slow down the production of showers to customers. This may result in a loss of
customers and a bad reputation for them which could lead to a potential decrease in sales and
therefore profit because of Imber Shower’s bad reputation. (L3 – continued analysis)
In conclusion I believe that it would reduce the costs of the business. However due to the lack
of supplier/producer relationship JLT stock control would not be suitable for Imber Showers as
supplies could arrive late. (E2 – support given for judgement) Extra info needed could be the
kind of relationship they have had with the current suppliers to make a judgement on how
reliable they would be. (E2 - further evaluative comments)
This is a very good answer that was awarded full marks. The student demonstrates knowledge of
the concept and develops a logical argument based on the case study. The evaluation lacks some
of the rigour of the analysis but the clear QWC and the valid evaluative observation at the end of
the answer takes the E mark to 5.
L: L3 4 marks awarded (out of 4).
E: E2 5 marks awarded (out of 5).
Response B
I think Imber Showers shouldn’t use Just in Time (JIT) to reduce stock. My reason for this is
because business should make their products beforehand so they are ready to be sent off. (E1
– limited support for judgement)
However buying Just in Time stock saves the business time and money so they can stay on top
of their bills and get the stock in time for when it is needed. (L1 – no context offered) This will
give the business more training time for staff. (?)
But, to conclude, I think Imber Showers Ltd should not use Just in Time (JIT) stock because it
is more risky and the business won’t have time to make the showers (E1).
This student appears to be confused by the term. Some low level knowledge is given in the middle
and last paragraphs – save money and risky – but these points are not explained. Additionally
there is a lack of context which restricts the answer to L1.
The judgement lacks clear support so remains in E1. The answer, however, is easy to read
allowing the E mark to be 2.
L: L1 1 mark awarded (out of 4).
E: E1 2 marks awarded (out of 5).
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Response C
If Imber Showers Ltd began using Just in Time stock control it could be good as it will reduce
their need for storage space and this will therefore leave them with extra capital that could be
used to start buying more expensive stock so that they are able to higher the price of their
products.(L1 – no context as yet)
However, this option may be bad as if the stock cannot be delivered due to problems with
transport, then the production may stop, resulting in lower output and therefore the customers
may start using their competition that has recently increased resulting in a loss of sales for the
business. (L3 – some analysis)
Ordering stock when they are low on it may be good as they will always have it ready to used
and therefore they can defeat their competition and keep sales constant. (E1 – unclear
support given)
However, the showers require metal and plastic and it this is left in storage for too long it may
rust and therefore the products will not be able to be produced resulting in a loss of sales for
the business. (L3)
Overall, I think the business should use Just in Time and have a buffer stock as then if the
materials cannot be delivered they will be prepared. (E1 – contradictory)
This answer becomes analytical half way through the second paragraph. There is some confusion
at the start of the third paragraph as it sidesteps the uncertainty of JIT deliveries, keeping the
analysis at 3 rather than 4.
The final judgement is not as strong as it stands and is in fact contradictory. An earlier judgement is
made in the third paragraph but the support for this is unclear and not developed. The response is
helped by a mostly clear writing style which allows QWC to take the E1 mark from 1 to 2.
L: L3 3 marks awarded (out of 4)
E: E1 2 marks awarded (out of 5)