Yobe Ltd makes doors and windows. The company trades in its home market and also exports to many countries.

Mark scheme

Marking points from the official mark scheme (Oct/Nov 2014). The mark or mark type is shown in brackets.

1. [2] (a) Any two points × 1 mark each – Buying and selling (both required)/exchange For profit/money To dispose of surpluses To purchase what is needed To satisfy needs and wants To provide goods and/or services To increase imports/exports. Any other relevant point.
2. [1] (b) (i) Any one reason × 1 mark – Competition Fall in demand for doors and windows Lack of house building Economic climate/inflation Additional costs from exporting Fall in quality Increased prices. Any other reason.
3. [4] (ii) Any two ways described × 2 marks each – Reduce prices and introduce sales promotions Better marketing use of the Internet, lifestyle magazines, advertising Change the products e.g. materials used Contact existing or past customers with special offers Improve the service offered – after sales service Diversify into other products e.g. conservatories Advertising - to inform and persuade Market research - to find out what customers want Offering better terms to attract customers. Any other relevant way described.
4. [3] (c) One mark for each correct link – Yobe Ltd - import agent in importing country – retailer/builders' merchant/builder – consumer OR Yobe Ltd – Yobe's agent (broker/del credere agent) – retailer consumer OR Yobe Ltd – selling to export merchant – retailer consumer OR Yobe Ltd - wholesaler - retailer consumer OR Yobe Ltd - forwarding agent - wholesaler – retailer consumer. N.B. 0 marks for Yobe Ltd
5. [4] (d) Any four points × 1 mark each and up to 2 marks for a well expressed point – The company is selling both at home and overseas so needs an advertising medium That will reach worldwide/24/7 Can give full details of what it is selling including contact details, prices and materials Can answer questions if interactive website Can make use of various devices e.g. colour, pictures of doors and windows in use Its competitors are likely to be using the Internet Costs may be low apart from setting up and updating the website Customers can place orders online Help to increase sales revenue Can use social media Can update it easily. Any other relevant point. 0 marks for easy/cheap etc. unless qualified.
6. [6] (e) Level 2 (4-6 marks) Has discussed the use of containerisation in relation to Yobe Ltd's products and has given a reasoned opinion. (One-sided argument – 4 marks max) Containerisation is the use of standard sized containers that can be loaded from one type of transport to another without unpacking. Using containers will speed up the transport of the doors and windows as mechanisation and special handling equipment is used at specially developed ports. Transhipment reduces the costs of handling and transport between the factory and the port or airport and also the port or airport and final destination. The containers provide storage for the doors and windows and also protection against theft and damage. Customs officials may supervise the packing of the container at the factory and when it is unpacked at the destination. It is possible that Yobe Ltd may not have enough goods for export to fill a whole container. The container can be shared with other companies – mixed cargo or groupage. The doors and windows are fragile and will need protection against breakage. Specialised containers can be used with padding and extra packaging. There is a danger of misrouting with so many containers being sent all over the world. There is also the danger of containers being lost overboard from a ship. If some doors or windows are required urgently they can also be sent using aircraft. They might be packaged as they are but they could also be containerised in specially designed containers for aircraft. It is also possible that the doors and windows are to be exported to a neighbouring country with land borders. Road transport would be suitable using trucks designed for carrying containers or specially designed trucks for carrying doors and windows could be used instead. It is certainly true that doors and windows can be carried using containers. The use of containers is likely to be economical and to offer the best protection for these products. Level 1 (1-3 marks) Has commented on the use of containers with/without reference to Yobe Ltd and with/without an opinion. Doors and windows should be exported by sea. They are heavy and may be sent in large quantities. Containers protect fragile goods. Containers are easily handled. Containers can be carried by land or by sea. Containers can be transferred between different forms of transport. Containers are suitable for transporting doors and windows.