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O-LevelCommerceProduction7100/22 · May/June 2024 · Q119 Marks

Fig. 1.1 shows the warehouse of a video game manufacturer. [Figure 1.1] Use Fig. 1.1 to help you answer the following questions.

  1. (a)Explain what is meant by division of labour, using an example from Fig. 1.1.[2]
  2. (b)Explain two disadvantages of division of labour to a manufacturer.[4]
  3. (c)Do you think warehouses should use more technology? Give reasons for your answer.[3]
  4. (d)Circle the correct answer to complete each of the following sentences. Primary and secondary industries are part of the chain of distribution OR production. Warehousing is an essential element of franchising OR logistics.[2]
  5. (e)The video game manufacturer is considering two options to promote a new game. Option 1: social media advertising Option 2: television advertising. Discuss each of these two options. Which would you recommend? Give reasons for your answer.[8]

This question uses a diagram from the original paper, which isn't shown here. Open the full paper from the past papers archive to see it.

Mark scheme

Marking points from the official mark scheme (May/June 2024). The mark or mark type is shown in brackets.

  1. [1] (a) Dividing/breaking down a task/production process into small parts / each worker has a different task/job
  2. [1] (a) Example - forklift driver/someone transporting/driving / packer packing/someone labelling / someone carrying boxes
  3. [1] (b) Production workers may become bored doing the same task
  4. [1] (b) make mistakes/lack of quality/less efficiency
  5. [1] (b) Workers less motivated/less job satisfaction
  6. [1] (b) more likely to leave the business/manufacturing may halt or slow down/fall in quality
  7. [1] (b) Production disrupted/less flexibility in the workplace/workers not multi-skilled/interdependence
  8. [1] (b) if workers cannot cover for absent colleagues/workers only skilled in one task
  9. [1] (c) Yes - Increased efficiency/output/production
  10. [1] (c) provides economies of scale
  11. [1] (c) saves time
  12. [1] (c) improves stock control
  13. [1] (c) allow an example such as robots picking/packing goods
  14. [1] (c) less need for workers
  15. [1] (c) cuts costs/wages
  16. [1] (c) fewer mistakes / no human error
  17. [1] (c) use of cameras
  18. [1] (c) better safety/security
  19. [1] (c) reduces theft
  20. [1] (c) 24/7
  21. [1] (c) better use of space
  22. [1] (c) workers are freed to do higher-level tasks / easier for workers
  23. [1] (c) can give competitive edge to those warehouses that automate processes
  24. [1] (c) No - large capital investment needed
  25. [1] (c) workers need to be trained to operate the system properly
  26. [1] (c) system requires maintenance/more maintenance staff
  27. [1] (c) less jobs for warehouse workers / unemployment
  28. [1] (d) Primary and secondary industries are part of the chain of production.
  29. [1] (d) Warehousing is an essential element of logistics.
  30. [8] (e) Level 3 (7-8 marks): The candidate is able to offer a recommendation with a thorough evaluation of both social media advertising and television advertising with application to a video game manufacturer.
  31. [8] (e) Level 2 (5-6 marks): Candidate offers a satisfactory analysis of using social media advertising and/or television advertising with application to a video game manufacturer with or without a recommendation
  32. [8] (e) Level 1 (1-4 marks): Candidate demonstrates some knowledge and understanding of social media and/or television advertising with application to a video game manufacturer without a recommendation
  33. [8] (e) Social media advertising is any type of below-the-line marketing that is developed for and relies on social media networks, platforms, or apps.
  34. [8] (e) Television advertising is a method of above-the-line marketing used to sell goods and services via adverts on TV for short periods of time.
  35. [8] (e) Social media advertising: Can be targeted to new games/gamers – to gain new followers
  36. [8] (e) Social media advertising: Social media is used by young people more can target this group to increase sales
  37. [8] (e) Social media advertising: Social media advertising is cost-effective – compared to other types of advertising or example
  38. [8] (e) Social media advertising: Covers global area/can be seen by many people/viral marketing – leading to an increase in brand awareness / sales
  39. [8] (e) Social media advertising: Helps to build loyalty – engaging with other gamers
  40. [8] (e) Social media advertising: Viral posts can be used – to increase reach
  41. [8] (e) Social media advertising: It is very easy to measure social media advertising - if an advertisement for a video game isn't working, media planners can pause the campaign or reallocate funds on demand.
  42. [8] (e) Social media advertising: It is simple to test the effectiveness of certain promotional messages such as a demo for a new video game, while an advertising campaign is running.
  43. [8] (e) Social media advertising: Can gain customer feedback about games – helps to improve products / build customer relationships / can respond quickly to complaints.
  44. [8] (e) Social media advertising: Can drive traffic to the website – providing more marketing opportunities
  45. [8] (e) Social media advertising: Quick/easy to update can spend time on production
  46. [8] (e) Social media advertising: Negative reviews can be seen by everyone can damage reputation
  47. [8] (e) Social media advertising: Needs time/resources – to keep content engaging / deal with customer queries
  48. [8] (e) Social media advertising: Despite targeted advertisements supporting the social platform many gamers will be annoyed or unnerved by messaging that is too frequent, or too specific.
  49. [8] (e) Social media advertising: Since social media is an accessible platform used by gamers, it attracts a lot of competition - brands must strive to stand out with compelling content.
  50. [8] (e) Television advertising: Television has a wide audience - so TV advertising is ideal to advertise to large markets.
  51. [8] (e) Television advertising: Television advertisements have the advantage of sight, sound, movement and colour - to persuade a customer to buy a game. They are particularly useful if a video games manufacturer wants to show what happens in an action game.
  52. [8] (e) Television advertising: However, a TV advertisement is very expensive, very short and there is no written record - so information regarding features such as a games ease of use may not be included.
  53. [8] (e) Television advertising: Difficult to make changes - without reshooting the advert.
  54. [8] (e) Television advertising: Can be difficult to target customers – e.g. young gamers, so the message is not reached to the selected video game customers.
  55. [8] (e) Television advertising: Many gamers will watch trailers on the internet and social media platforms such as YouTube nowadays - so the TV advert is not seen.
  56. [8] (e) Evaluation: The benefits of the large target audience and impact of television advertising needs to be considered over the need to target specific gamers and the lower cost that social media advertising offers. Social media advertising has become a popular tool among advertisers as people have stopped watching TV like they used to. Ultimately, it comes down to where the world is headed. If no one's left watching television, or at least responding to the commercials, then there is no point advertising there. While a 20-second TV advert will cost you thousands of dollars, a targeted social media advertisement will cost a fraction of the price and probably lead to more conversions compared to the former. As the majority of the population shifts to the digital world, it makes sense to follow them there than be left behind although depending on the nature of the game a range of advertising media, including TV, advertising media may be useful.

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About this question

Topic
Production, O-Level Commerce (syllabus 7100). Structured question, 19 marks.
Source
O-Level Commerce, May/June 2024 Paper 2 Variant 2, question 1.

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