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9707/31
May/June 2011 3 hours
BUSINESS STUDIES Paper 3 CASE STUDY
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Additional Materials:
Answer Booklet/Paper
READ THESE INSTRUCTIONS FIRST If you have been given an Answer Booklet, follow the instructions on the front cover of the Booklet. Write your Centre number, candidate number and name on all the work you hand in. Write in dark blue or black pen. You may use a soft pencil for any diagrams, graphs or rough working. Do not use staples, paper clips, highlighters, glue or correction fluid. Section A Answer all questions. Section B Answer one question. The businesses described in this question paper are entirely fictitious. You are advised to spend 40 minutes on Section B. At the end of the examination, fasten all your work securely together. The number of marks is given in brackets [ ] at the end of each question or part question.
This document consists of 5 printed pages and 3 blank pages.
DC (CB (NB)) 32629/2 © UCLES 2011
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2 Asia Clothing (AC) The current situation Asia Clothing (AC) is a private limited company. All of the shares are owned by the Bappoo family. The company manufactures a wide range of fashion clothing for women. 90% of its output is purchased by three large chains of retail fashion shops in Asia. Increased competition in the retail market has led to these three retailers insisting on: • Lower prices so that the retail shops can become more competitive • Faster production of new styles. The Bappoo family members have held several meetings to discuss how they can meet these demands from these customers. Meeting the demands: Lower prices Abu, the Managing Director, understands that if AC does not meet these demands the company will lose orders quickly. ‘There are so many other clothing manufacturers who would be delighted to supply these three retailers’, he told the other