Skip to main content
O-LevelBusiness StudiesOperations management7115/21 · May/June 2023 · Q120 Marks

Explain four barriers to communication for a business.

  1. (a)Explain four barriers to communication for a business.[8]
  2. (b)Consider the following two ways VP can purchase its inventory. Which way should it use? Justify your answer. • Head Office purchases the inventory for all the restaurants. • Restaurant Managers purchase their own inventory from local suppliers.[12]

Mark scheme

Marking points from the official mark scheme (May/June 2023). The mark or mark type is shown in brackets.

  1. [1] (a) Problems with the sender – the language used is not clear/use of jargon or technical terms so do not understand instructions
  2. [1] (a) The message is too long/too much detail is included in the message – so the main meaning of the message may be lost in the detail
  3. [1] (a) Problems with the medium/method – the wrong medium is used such as putting an urgent message on a noticeboard so may not be seen immediately
  4. [1] (a) Computer failure/internet connection/technology fails – the message may not be received
  5. [1] (a) No feedback is given – so the sender is unaware the message has not been received
  6. [1] (a) Problems with the receiver – if a meeting is used and it goes on a long time then the receiver may stop listening
  7. [1] (a) The channel/chain of command may be too long – too many people through which the message is sent it may be distorted
  8. [1] (a) Language differences – hinder understanding of the message
  9. [1] (b) (Head Office purchases) Able to make bulk purchases – discounts received – lowering variable costs/lower unit cost of food ingredients - possibly reducing prices/increasing profit
  10. [1] (b) (Head Office purchases) Easier to standardise the meals/control quantity and quality of ingredients in different restaurants as all the inventory come from the same food suppliers - maintains reputation for good quality fast food
  11. [1] (b) (Head Office purchases) Increased transport costs for food ingredients to be taken to each fast-food restaurant
  12. [1] (b) (Head Office purchases) Warehouse storage is required for inventory before it is sent out to each restaurant - increases costs
  13. [1] (b) (Restaurant Managers purchase) Managers can order different ingredients for meals to meet local tastes - increases demand/improved competitiveness – increases revenue
  14. [1] (b) (Restaurant Managers purchase) Local suppliers can deliver more frequently and quickly - ensures ingredients will be fresh - improves reputation of the restaurants
  15. [1] (b) (Restaurant Managers purchase) Managers may feel more motivated/trusted - if allowed to make some decisions and order their own ingredients
  16. [1] (b) (Restaurant Managers purchase) May be unable to meet sudden increase in demand for specific meals – if ingredients are not available – may lose customers as disappointed – lose reputation/customers do not return
  17. [1] (b) (Restaurant Managers purchase) Restaurant Managers are very busy - so may not have the time to order ingredients
  18. [1] (b) (Restaurant Managers purchase) Some ingredients may not be available locally to each restaurant - limiting the availability of the full menu in some restaurants
  19. [1] (b) (Justification) All inventory is purchased by head office is the best way for VP to choose as this will allow considerable cost savings due to purchasing economies of scale. This will allow VP to keep prices low and to be more competitive with other similar restaurants, possibly increasing revenue. Ordering only from local suppliers may make it difficult to meet customer demand as food ingredients may run out if local suppliers are small.
  20. [1] (b) (Justification) Each Restaurant Manager purchases their own inventory is the best way to choose because each restaurant can meet local demand, and this will attract more customers leading to higher revenue. Also the costs of storage are lower as smaller quantities can be purchased so profit from selling fast-food will be higher.

Write your answer and get it marked

On Oracle Prep you can write or photograph your own answer and have it marked by AI against this mark scheme, with feedback on what you missed.

Sign up free →

About this question

Topic
Operations management, O-Level Business Studies (syllabus 7115). Structured question, 20 marks.
Source
O-Level Business Studies, May/June 2023 Paper 2 Variant 1, question 1.

Questions and mark schemes are from past examination papers and remain the copyright of the exam board. How Oracle Prep builds its content

Related Business Studies questions

© 2026 Oracle Prep