Identify and explain one advantage and one disadvantage to Fabian Flowers of having a website for the shop.

Mark scheme

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

1. [8] Content: Advantages: increased market lower marketing costs method of advertising easier for online sales 24/7 access Disadvantages: higher distribution costs high competition increased set up costs/maintenance costs security issues ideas used by competition The marks available for this question are as follows: 2 marks for knowledge; 2 marks for application and 4 marks for explanation/analysis. 1 mark for each advantage/disadvantage identified (2 marks maximum). Up to two further marks are available for explaining why it is an advantage/disadvantage to the business. 2 application marks are also available. Possible application marks: flowers; flower shop; partnership; hotels and restaurants; flower arrangements; weddings/Valentine's Day/birthdays. There may be other examples in context which have not been included here. 1 knowledge mark + up to 2 explanation marks + 1 application mark for advantage/disadvantage (4 marks for advantage + 4 marks for disadvantage). Disadvantage: Higher distribution costs (1 mark for knowledge). Developed Explanation: Higher distribution costs are a disadvantage (1) because each flower arrangement will need to be delivered to the customer instead of the customer collecting the flower arrangement from the flower shop (2). This will increase the costs for Fabian and his partner which may reduce the profits for the business unless he can pass these costs on to the customer (3). Application: The application mark could be achieved as the answer makes reference to the flower shop (1 application mark).
2. [12] Content: Import flowers from country X – laws on ethical production; no child labour; high quality; high costs; limited range of flowers. Purchase flowers from a flower wholesaler - uses unsustainable methods; low cost flowers; low quality; wide range of flowers. Buy from local flower growers – transport costs low; low cost flowers when bought in bulk; wide range of flowers not available all year round; mixed quality. Level 1 – 1 mark for each statement. E.g. In country X there are no children employed to pick flowers (1 mark). Level 2 – 5 marks for the first level 2 answer and then one extra mark for each additional level 2 answer up to maximum of 8 marks. E.g. In country X there are no children employed to pick flowers. Although costs may be higher it does mean that children will not be working producing flowers. This may be something Fabian feels strongly about and he can use it in his advertising which may attract customers who feel the same as him. 5 marks for level 2 answer plus one application mark for mentioning picking the flowers. Level 3 – Detailed discussion of at least two level 2 answers and then a recommendation at the end which justifies which is the best supplier to choose compared to the other suppliers. Possible application marks: anything from Appendix 3; new business; flower shop; hotels and restaurants; flower arrangements; trade credit; weddings/Valentine's Day/birthdays. There may be other examples in context which have not been included here. Knowledge/Analysis/Evaluation: Level 3: 9-10 marks - At least 2 x Level 2 + Well justified recommendation as to the best supplier to choose compared to at least one other supplier. Level 2: 5-8 marks - Good discussion of advantages/disadvantages of each supplier. OR balanced argument. Some limited judgement shown in recommendation about the best supplier to choose. Level 1: 1-4 marks - Outline of advantages/disadvantages of each supplier.