Maisie is considering opening a coffee bar.

Mark scheme

Marking points from the official mark scheme (Oct/Nov 2013). The mark or mark type is shown in brackets.

1. [4] nearness to potential customers – people are not likely to travel distances to visit a coffee bar, may be reliant on passing trade so needs to be on a busy street
2. competition – will not want to be too near to other coffee bars who may already have established trade
3. availability of premises – may be premises available with planning permission for a coffee bar, may need to obtain planning permission
4. supply of labour – will need to find workers for the coffee bar, may require workers to work unsocial hours or weekends
5. security - will want to be in an area where instances of theft or vandalism are low
6. accessibility of site - the coffee bar will need to be on the ground floor where people are able to gain access easily
7. any other relevant factor explained
8. [6] Level 2 (4-6 marks)
9. Has discussed the extent to which Maisie is involved in trade and has given a reasoned opinion.
10. Maisie is involved in trade to some extent. She is involved in home trade. She is involved in the retail trade. She is selling food and drink to her customers in order to make a profit. She is using wholesalers to supply her with various food products and drinks. These wholesalers will supply her with various services. They will break bulk and supply her in small quantities. They will advise her about new products on the market. They may also offer her cash and carry services. They are also likely to offer Maisie goods on credit.
11. On the other hand, Maisie is not involved in foreign trade. She is unlikely to import any products for her coffee bar, although the wholesalers might do so. She will not be taking part in the export trade. Maisie, therefore, is involved in trade but not in all aspects of it.
12. Level 1 (1-3 marks)
13. Has commented on Maisie's business in relation to trade with/without an opinion.
14. She is involved in trade. She sells food and drink. She sells to customers. She buys from wholesalers. Maisie is not involved in foreign trade.
15. [4] Maisie is involved in the catering/food and beverage industry and so will be subject to various rules and regulations and to regular inspections
16. consumers expect clean premises and safe food
17. consumers have certain rights e.g. right to a safe environment
18. if they are not satisfied they will go to a competitor as the food and beverage industry is highly competitive
19. if she builds up a reputation for looking after her customers, she will encourage
20. repeat business
21. and customers will recommend her coffee bar to others leading to increased sales
22. if she does not look after customers she may be prosecuted for an offence e.g. health issue and be heavily fined
23. any other relevant point
24. [4] she is likely to be buying regularly and would want to pay at regular intervals
25. she wants to sell the goods she buys before having to pay for them so that she can use some of the money from the sale to pay the bill
26. it provides interest-free credit for a period of time
27. it will aid her cash flow
28. she may have insufficient money to be able to pay upfront
29. she could use the money she would have used to pay for the supplies to pay for other things
30. any other relevant point
31. [2] to enable her to make a profit
32. to encourage repeat business
33. to encourage her to buy in bulk
34. so that the supplier can increase sales
35. because she is a retailer buying for resale
36. any other relevant point