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A-LevelBusiness StudiesBusiness Organisation and EnvironmentMay/June 2018Paper 2 Q130 Marks

Delivery To You (DTY) DTY is a public limited company in the tertiary sector. DTY delivers packages for businesses in country A. DTY's main customers are large online retail businesses. These businesses pay DTY to deliver products to customers who have purchased them online. DTY has recently published its income statement for 2017 (see Table 1). Table 1: Extract from DTY's income statement for 2017 $m Revenue 45 Cost of sales 30 Gross profit 15 Expenses, interest and tax 10 The Board of Directors decided that retained earnings should be at a high level of 80% of profit for the year. The Board of Directors is keen to expand the business by delivering packages within a new country. This planned expansion will require 10 delivery drivers. To aid the recruitment process, the human resource manager has created a person specification (see Table 2). Table 2: Person specification for a delivery driver Characteristic Essential Desirable Qualifications Driving licence A-Level or high school standard Physical Good eyesight Fit enough to lift heavy packages None Experience None Experience of dealing with customers/consumers Personal qualities Confident Friendly Good communicator There are a number of factors that will determine the country chosen for the expansion. The Board of Directors has asked the marketing manager to carry out some primary and secondary market research so that it is able to make a good decision.

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About This A-Level Business Studies Question

This structured question appeared in the Cambridge A-Level Business Studies (9609) May/June 2018 examination, Paper 2 Variant 3. It tests the topic of Business Organisation and Environment and is worth 30 marks.

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