Windworth Ltd is a small company making and selling wooden windows. It uses division of labour in its production process as shown in Fig. 1. [Figure 1] Use the information given in Fig. 1 to help you to answer the following questions.

Mark scheme

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

1. [1] (a) (i) Secondary/construction/manufacturing
2. [2] (a) (ii) Any two ways relating to Fig. 1 x 1 mark each - cutting the timber, joining the timber together, painting, glazing, adding catches/locks
3. [2] (b) Any two advantages x 1 mark – greater output, savings on labour, more use of machines/technology, workers become skilled at a small part of the process, may be able to employ less skilled workers – less pay, any other relevant advantage
4. [6] (c) Any six points x 1 mark each or three well explained points x 2 marks - enables Windworth Ltd to raise finance by loans/overdrafts, bank accounts – current, deposit/savings, payment of bills – by cheque, credit transfer, direct debit, standing order, transfer of funds, internet banking/telephone banking, advice and guidance on its business, regular bank statements, withdrawal of funds e.g. in cash, any other relevant point
5. [6] (d) Level 2 (4-6 marks) Has discussed some selling techniques and has given a reasoned recommendation on ones that might be used. (Consideration of advertising only = L2 4 marks maximum) Windworth Ltd would not use many of the selling techniques used by retail shops such as self service. In order to sell its windows it will have to use selling techniques that appeal to consumers who will be spending large sums of money. It may set up a display area where consumers can view what is on offer and see the windows set up in buildings. It may prepare detailed and coloured leaflets and pamphlets so that consumers can compare what is on offer. Windworth Ltd may brand its windows with its name to make them recognisable but branding the windows may not be particularly important. Windworth Ltd will need to offer credit terms to encourage consumers to buy from them. If consumers can spread their payments they may be more likely to place orders. Windworth Ltd will offer after sales service. The firm will need to fit the windows and deal with any problems that may arise after selling. Windworth will need to compete with many other window companies and so it will probably advertise on the Internet so that a wide range of customers can be attracted. It may also offer promotions from time to time e.g. discounted lines. I would recommend that Windworth offers good credit terms so that consumers can place orders and spread the payments. It should offer after sales service so that it builds up a reputation for reliability and customer care. It should also give as much information as possible to potential customers. Level 1 (1-3 marks) Has commented on some selling techniques with/without a recommendation. Windworth Ltd will need to use selling techniques if it is to sell the windows it makes. It could advertise in magazines. It should set up a website. It should try to make its windows as good as possible. It will then sell lots of windows.
6. [3] (e) Any three points x 1 mark each and up to 2 marks for any well explained point – Windworth Ltd will use road transport to distribute its windows to local customers, it is likely to have its own fleet of vehicles such as specially equipped vans, it will have to make many short journeys as its customers are likely to be spread over the local area, if it owns its own vehicles, it can be flexible in where it goes, when and can give the windows more careful handling, before distributing the windows, it will need to store them as several windows may be needed for one job, any other relevant point