WJEC GCE Business Studies Unit 1 (18th May 2015)

When business that are in the same industry are at different stages of the production process and gave the example of coffee beans being extracted in Africa and Starbucks selling the final drink to the consumer

You should get 2 marks for that, I'm not sure because i'm not the examiner but don't worry about it

When business that are in the same industry are at different stages of the production process and gave the example of coffee beans being extracted in Africa and Starbucks selling the final drink to the consumer

that sounds good

what did you write for the benefit part?

what did you write for the benefit part?

For the benefits of vertical integration I just put that they have take over their suppliers so they can consistently produce high quality supplies that are guaranteed as and when they are needed, also they can take control over their distribution so they won't have to pay retailers to sell their products.

good answer!

removes profit margins suppliers would demand, guaranteed source of supplier so the company cannot be held at ransom for higher prices at critical times also gives a competitive advantage as they can deny competing firms a supply chain.

haha thanks i thought it wasn't good but yours deserves top marks too!

I think I got 0 on the last question. I accidentally wrote about a plc to a franchise so I don't think I will get anything.
Maybe I will get a mark for writing that public goods are intangible!

Hopefully ill pull off an A

It said sole traders and partnerships... why did you write about a PLC and franchises lmfao.
A sole trader is one person who owns the business and has limited liability. A partnership is owned by 2-20 people and they also have limited liability. You could've said stuff like Anna should enter the partnership because she can share ideas with charlie which means their products will be more innovative and will more likely satisfy consumer needs. Disadvantage of a partnership is that they have to share profits and Anna might have put more hours into the work but they have to still share the profits equally which can be demotivating.

But aren't franchisers the same as soul traders??? Maybe I have a chance with method marks though! High hopes!
At least I know that vertical integration is taking over a competitor, so that's going to get me 7 marks!