oxford cambridge and rsa a level business...2 ocr 2018 answer all the questions.please use the...

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*7011006196* INSTRUCTIONS Use black ink. Complete the boxes above with your name, centre number and candidate number. • Answer all the questions. Write your answer to each question in the space provided. Additional pages may be used if necessary but you must clearly show your candidate number, centre number and question number(s). • Do not write in the barcodes. INFORMATION The total mark for this paper is 80. The marks for each question are shown in brackets [ ]. Quality of extended responses will be assessed in questions marked with an asterisk (*). This document consists of 20 pages. Turn over © OCR 2018 [601/4675/8] DC (KN/CT) 152843/4 Last name First name Candidate number Centre number Oxford Cambridge and RSA A Level Business H431/03 The global business environment Monday 11 June 2018 – Afternoon Time allowed: 2 hours You must have: • the Resource Booklet You may use: • a scientific or graphical calculator OCR is an exempt Charity * H 4 3 1 0 3 *

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Page 1: Oxford Cambridge and RSA A Level Business...2 OCR 2018 Answer all the questions.Please use the information provided in the Resource Booklet to answer the following questions.1 IKEA

*7011006196*

INSTRUCTIONS• Use black ink.• Complete the boxes above with your name, centre number and candidate number.• Answer all the questions. • Write your answer to each question in the space provided. Additional pages may be

used if necessary but you must clearly show your candidate number, centre number and question number(s).

• Do not write in the barcodes.

INFORMATION• The total mark for this paper is 80.• The marks for each question are shown in brackets [ ].• Quality of extended responses will be assessed in questions marked with an

asterisk (*).• This document consists of 20 pages.

Turn over© OCR 2018 [601/4675/8]DC (KN/CT) 152843/4

Last name

First name

Candidatenumber

Centrenumber

Oxford Cambridge and RSA

A Level BusinessH431/03 The global business environment

Monday 11 June 2018 – AfternoonTime allowed: 2 hours

You must have:• the Resource Booklet

You may use:• a scientific or graphical calculator

OCR is an exempt Charity

* H 4 3 1 0 3 *

Page 2: Oxford Cambridge and RSA A Level Business...2 OCR 2018 Answer all the questions.Please use the information provided in the Resource Booklet to answer the following questions.1 IKEA

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Answer all the questions.

Please use the information provided in the Resource Booklet to answer the following questions.

1 IKEA is ‘the world’s largest furniture retailer’. (Line 3)

Explain two likely barriers to entry into the furniture market.

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2 IKEA takes its corporate social responsibility (CSR) seriously. (Extract B)

Analyse the possible effect of IKEA’s CSR profile on any two of its stakeholders. [6]

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3 Evaluate one reason why having a range of promotional activities is important to IKEA. [10]

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Page 4: Oxford Cambridge and RSA A Level Business...2 OCR 2018 Answer all the questions.Please use the information provided in the Resource Booklet to answer the following questions.1 IKEA

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4 IKEA raised its basic wage level in all of its stores in the USA. (Extract E)

Explain two possible reasons why it might have done this.

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5* Evaluate the importance of effective stock control to the success of IKEA. [20]

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Question 6 starts on Page 11

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6 Karlsson Skogsbruk (KS), based in Sweden, manufactures wooden furniture for large retail stores in Europe. It is hoping to get a contract to supply IKEA, but it has not yet organised its own operations management sufficiently.

Table 1 and Fig. 1 show the various stages and time taken for the manufacture and delivery of a recent order for 110 garden chairs and 70 garden tables.

Stages of processing a recent order

Activity Duration (hours)

A KS receives order and communicates to wood supplier 1

B Lead time for wood delivery to KS 48

C Delivery, unloading and quality checking of wood 3

D Briefing and training of ‘garden chair team’ 2

E Briefing and training of ‘garden table team’ 3

F Pre-manufacture cutting and treating of wood 4

G Manufacture of garden chairs 50

H Manufacture of garden tables 28

J Quality checks of garden chairs 2

K Quality checks of garden tables 2

L Packaging 6

M Loading and delivery to customer 10

Table 1

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Net

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10

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35

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2B 48 D

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C 34F

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LM

610

22850 H

2 K1

Fig.

1

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(a) By completing the network diagram (Fig. 1), calculate the:

(i) earliest start time for activity H.

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Answer ........................................................... [1]

(ii) overall time for delivery to the customer.

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(iii) latest finish time for activity D.

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(b) Using the network diagram (Fig. 1), identify the critical path for the order.

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(c) Explain the difference between total float and free float.

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(d) The marketing manager at KS does a lot of research into the consumers of its products and their likely response to changes in price. Recent research from a furniture store in Germany has shown that a fall in price from €150 to €112 for a garden table led to a rise in monthly demand for garden chairs from 86 to 98 units.

Calculate the cross elasticity of demand for garden chairs in response to the change in the price of a garden table.

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Answer ........................................................... [4]

7 Analyse one way in which Ansoff’s matrix might have been useful to IKEA when planning the expansion into India. (Extract G) [6]

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8* Discuss the extent to which changes in economic factors are likely to affect IKEA in the future. [20]

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Oxford Cambridge and RSA

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