Home / IB DP Business Management Unit 5: Operations management -: 5.4 Location HL Paper 1

IB DP Business Management Unit 5: Operations management -: 5.4 Location HL Paper 1

Question

Refer to the Ducal Aspirateurs case study (DA) (SL/HL paper 1 Nov 2020).
a. With reference to $D A$, outline two suitable methods of sampling (lines 112-113).

b. Explain the factors that $D A$ would need to consider before deciding to outsource some of its production (line 110).

▶️Answer/Explanation

Ans:

a.DA used sampling for recognition of brand name. It would have used sampling to set up focus groups and surveys. It also used focus groups in five different European countries for click and fix.

Context can be achieved by making reference to:

The market(s) that DA operate in (mass vs niche)
The geographical markets (five European countries)
The need for DA to gain information within financial constraints
The type of information required (brand awareness, customers in Europe etc)

Methods could include:

quota
random – may not be suitable as customer population is only a small part of whole
stratified/systematic – probably for 5 European countries
cluster
convenience – most convenient unlikely to be those influenced by brand, bias
snowball – but for the European market?

Award [1] for each suitable method identified and [1] for a description of how that method relates to DA. Award a maximum of [2] per method. Unsuitable methods cannot get context mark.
b.

Refer to Paper 1 markbands for May 2016 forward, available under the “Your tests” tab > supplemental materials.

Factors include:

Quality: DA produces high quality products for the top end niche market, would outsourcing produce this quality
Employment issues: DA currently looks after its employees. How would this continue if work is sent elsewhere? Redundancy costs.
Control: To what extent to they want to keep in control of everything. It’s a family business so this may be important
Costs: They are already under cost pressure. Would outsourcing help or hinder?
Production issues: Could they benefit from better production techniques at the outsourced business? (No evidence of this in the case)
Logistical issues: Possibly greater flexibility but no evidence
Customer issues: Would they know? Would it make a difference? Maybe ‘upmarket’ customers would prefer locally made products.

Accept any other relevant explanation.

Marks should be allocated according to the paper 1 markbands for May 2016 forward section A.

Award a maximum of [3] for a theoretical answer, often a pre-prepared textbook answer or if there is only one factor.

Award a maximum of [5] if the explanation is mainly descriptive, but in context.

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