A-LevelBusiness StudiesStrategic management9609/31 · Oct/Nov 2017 · Q110 Marks

Analyse the possible disadvantages for KKS of taking over VantoU.

Mark scheme

Marking points from the official mark scheme (Oct/Nov 2017). The mark or mark type is shown in brackets.

Possibility of government investigating greater market power (unlikely)
Diseconomies of scale increase costs
Duplication of IT systems depots, lorries increases average cost
Costs of managing the change – redundancies, reorganisation, closure of depots, culture clash resolution
Cost of new marketing campaigns
Competitors respond aggressively (market is competitive)
Less flexibility
reference to finance data
depots, lorries, delivery service, parcels, market segments, one of largest providers

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Topic: Strategic management, A-Level Business Studies (syllabus 9609). Structured question, 10 marks.
Source: A-Level Business Studies, Oct/Nov 2017 Paper 3 Variant 1, question 1.

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