IGCSE Cambridge Business Studies Paper 2 Past Paper Booklet

Relevant points might include:<br /> • Wholesalers – buys in large quantities; less administration costs; need to give profit<br /> margin to wholesaler; end price will be higher to consumer as sold to small shops.<br /> • Supermarkets – buys in large quantities; feedback on sales; reduced price of product to<br /> producer.<br /> • Online sales – absorbs the profit margin of retailer; direct contact with consumer;<br /> increased distribution costs.<br /> • Small shops – increased distribution costs; sold in small quantities; increased<br /> transactions as more invoices issued. <br /> <br /> At least 2 × Level 2 +<br /> 9–10 marks for well justified recommendation as to the best channel of<br /> distribution to choose compared to the other channels.<br /> 7–8 marks for some limited judgement shown in recommendation as to the best<br /> channel of distribution to choose. <br /> <br /> Level 3 – For L3 to be awarded there needs to be at least two L2 marks awarded and then a<br /> recommendation which Justifies the best channel of distribution to choose and why not the<br /> alternative channels. <br /> <br /> Possible application marks: washing liquid; makes liquid soap; bottles of liquid soap;<br /> competitors sell to large supermarkets; $50000 profit; washing clothes; already sells to<br /> wholesaler and small shops; large factory with room for expansion; double production<br /> workers to increase output. <br /> <br />