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O-LevelCommerceBusiness enterprise7100/22 · May/June 2012 · Q820 Marks

Polybee is a limited company specialising in making packaging materials for large-scale retailers.

  1. (a)(i)State three kinds of packaging that Polybee is likely to provide for large-scale retailers.[3]
  2. (a)(ii)Explain why most large-scale retailers put their brand names on packaging.[3]
  3. (a)(iii)'Packaging of products is necessary but adds to the cost of products to the consumer.' Do you agree with this statement? Give reasons for your opinion.[6]
  4. (b)Explain the advantages to Polybee of specialising in making packaging materials.[4]
  5. (c)Explain why Polybee issues catalogues and price lists to its customers rather than sending out quotations in reply to enquiries.[4]

Mark scheme

Marking points from the official mark scheme (May/June 2012). The mark or mark type is shown in brackets.

  1. [3] (a) (i) Any three kinds of packaging × 1 mark each:
  2. plastic boxes
  3. polythene
  4. cardboard boxes
  5. plastic pots
  6. plastic trays
  7. boxes
  8. bottles
  9. plastic bags
  10. paper bags
  11. glass jars
  12. cans
  13. recycled materials
  14. plastic
  15. gift wrapping
  16. coloured paper.
  17. Any other relevant kind of packaging.
  18. [3] (a) (ii) Any three points × 1 mark and up to three marks for a well developed point:
  19. to promote their names to customers
  20. to make the products recognisable
  21. to assist self service and make it easier to choose products
  22. to create brand loyalty and so increase sales
  23. to make the packaging attractive to customers
  24. to assist advertising of the large-scale retailer
  25. to distinguish products from others.
  26. Any other relevant point.
  27. [6] (a) (iii) Level 2 (4-6 marks)
  28. Has discussed the statement and has given a reasoned opinion. (If a candidate has discussed only one part of the statement, award 4 marks max.)
  29. Packaging of goods is widespread and can take many forms. Packaging has many functions - to protect goods, to group goods together, to enable self service to be easier, to make the goods recognisable and to make it easier to display goods. Many people think that packaging adds to the costs of the product and increases the price to the consumer. Someone has to pay for the packaging and it is part of the cost to the consumer. In many countries there are campaigns to reduce the use of packaging because it is considered environmentally unfriendly and wasteful and many manufacturers and retailers are trying to reduce the amount of packaging used.
  30. But much of the packaging of goods is essential. It makes goods easy to identify. It makes some goods easier to handle e.g. milk in a carton and it also preserves many kinds of goods such as food or keeps it clean such as clothing.
  31. There is no doubt that packaging adds to costs but costs for many items have been lowered by bulk buying of many goods and by self service.
  32. Level 1 (1-3 marks)
  33. Has commented on the need for packaging and/or adding to the costs for the consumer with/without an opinion.
  34. Packaging is important for retailers. They use it to protect goods. They are easier to handle. Packaging is also expensive. Someone has to pay for it. It has to be disposed of and this costs money.
  35. [4] (b) Any four points × 1 mark each or two advantages explained × 2 marks each:
  36. can introduce mass production methods making use of machinery/robotics
  37. can increase output and probably achieve better quality products
  38. can introduce division of labour so making labour more efficient
  39. can achieve economies of scale e.g. bulk buying raw materials
  40. product is standardised and because of reduced costs, prices may be lower
  41. the company can become known for a specialised product - packaging so making advertising easier → profitability.
  42. Any other relevant point.
  43. [4] (c) Any four points × 1 mark each or two well explained points × 2 marks each:
  44. can give detailed information about the whole product range
  45. can make alterations to prices by using a price list rather than reprinting/updating the catalogue
  46. price list may give details of the trade discount offered
  47. catalogues may tempt customers to buy extra products/use of colour
  48. catalogue more suitable for doing business with regular customers
  49. quotations are usually used to give the prices of particular services or a particular group of goods required and the terms of sale
  50. customers keep catalogues for reference and later orders.
  51. Any other relevant point.

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About this question

Topic
Business enterprise, O-Level Commerce (syllabus 7100). Structured question, 20 marks.
Source
O-Level Commerce, May/June 2012 Paper 2 Variant 2, question 8.

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