Analyse factors that might determine the relocation of a business.

Mark scheme

Marking points from the official mark scheme (Feb/Mar 2022). The mark or mark type is shown in brackets.

1. [K&U] Clear understanding of relocation of a business.
2. [App] Factors that might cause relocation of a business.
3. [An] Geographic – climatic or physical conditions e.g. volcanic eruption, flooding. Consideration of CSR / environmental effects. Room for expansion.
4. [An] Demographic – changing population structure. Target market no longer exists in the original location, consumer attitudes to actions of the business.
5. [An] Legal - import and export taxes and quotas make it appropriate to move operations to a different country. Planning restrictions.
6. [An] Political - changes in political landscape make existence in original country impossible e.g. lack of democracy, change in attitudes of government to certain types of business, change to a planned economy.
7. [An] Resources – closer to inputs, labour etc to reduce production costs, change in available resources in the current location.
8. [An] Infrastructure – better infrastructure appropriate to the business to reduce transport costs or provide better communication.
9. [An] Marketing – the effect of ecommerce so a physical location unnecessary.
10. [K&U] Clear understanding of flexibility.
11. [K&U] Clear understanding of operations.
12. [K&U] Clear understanding of sales.
13. [K&U] Clear understanding of manufacturing.
14. [App] How flexibility of operations might improve the sales of a business.
15. [App] How flexibility of operations might improve a manufacturing business.
16. [App] Reference to toy manufacturing business.
17. [An] Advantages and disadvantages of different types of flexibility of operations of a business e.g. ability to change levels of production, increased capacity, hold high stocks, adaptable workforce, range of products, reaction to consumer demand, use of automation, robotics, flow production, mass customisation.
18. [An] Analysis of how flexibility of operations might improve the sales of a (toy manufacturing) business.
19. [An] Advantages and disadvantages of methods of improving sales of a business e.g. promotion, reduced price, improved product, quality, customer service.
20. [An] Reference to toys e.g. dolls, cars, construction, farm animals, puzzles, etc.
21. [An] Reference to toy manufacturers e.g. Mattel, Hasbro Fisher-Price, Lego.
22. [Eval] A candidate may make a judgement/conclusion as to whether flexibility of operations might improve the sales of a toy manufacturing business.
23. [Eval] These judgements/conclusions may be made at any point in the essay as well as in a concluding section.
24. [Eval] The context is a toy manufacturing business.
25. [Eval] There are many opportunities to improve the operational flexibility and this will depend on the type of toy, the size of the business, the demands of the consumer, the size of the market.
26. [Eval] Discussion of the relative importance of flexibility of operations to improving sales.
27. [Eval] The extent to which other methods of improving sales may be more effective e.g. marketing.
28. [Eval] The extent to which flexibility of operations may be the key to developing a competitive advantage in the competitive toy manufacturing industry.
29. [Eval] The extent to which the cost of implementing flexibility of operations is balanced by the improvement in sales of the business.
30. [Eval] Recognition that flexibility of operations can lead to significant cost reductions and improvements in operational efficiency, however this may not have any effect on the consumers and their willingness to buy the product.