LEK owns 80 electrical shops. It sells products such as cell (mobile) phones and televisions. The Marketing Director believes offering customers a choice of products helps LEK to be competitive. LEK must use suitable ways to communicate with its customers. LEK's directors are planning a takeover of a competitor. This competitor owns 40 shops and operates in the same 4 regions as LEK. [Figure 1: LEK organisational chart] Managing Director HR Director, Finance Director, Operations Director, Marketing Director Under Operations Director: Region 1 Manager, Region 2 Manager, Region 3 Manager, Region 4 Manager Under each Region Manager: Shop Managers x20

Mark scheme

Marking points from the official mark scheme (May/June 2014). The mark or mark type is shown in brackets.

1. [2] (a) Good knowledge [2], e.g. number of people who answer directly to one manager in a hierarchy.
2. [1] Some knowledge [1], e.g. number of people who work for you some knowledge plus example can gain 2 marks, e.g. regional manager has a span of 20.
3. [2] (b) Application [2 × 1] award one mark per factor.
4. [0] Do not accept references to production, as this is a retailer.
5. [0] Do not accept promotion on own [TV] or market research.
6. [4] (c) Knowledge [2 × 1] – award 1 mark for each relevant benefit.
7. [2] Application/analysis [2 × 1] – award 1 mark for each relevant explanation.
8. [6] (d) Knowledge [2 × 1] – award 1 mark for each relevant method identified.
9. [2] Application [2 × 1] – award 1 mark if relevant reference made to LEK.
10. [2] Analysis [2 × 1] - award 1 mark for each relevant explanation (e.g. how the method works or advantage of using this method).
11. [3] For each reason: maximum 3 marks [1k + 1ap + 1an].
12. [0] Methods of communication can only be accepted if aimed directly at existing customers.
13. [0] Do not accept advertising (e.g. posters, leaflets) as it is too general.
14. [0] Do not accept internet, verbal/face to face or written as too vague.
15. [6] (e) Knowledge [2] – award up to 2 marks for identification of relevant issue(s).
16. [1] Application [1] – award 1 mark if relevant reference made to LEK's business.
17. [1] Analysis [1] – award 1 mark for relevant development of point(s).
18. [2] Evaluation [2] – justified decision made as to whether the takeover would benefit LEK. Either viewpoint is acceptable.