Students should be able to analyse the factors that affect the choice of…

The idea

Analysis means breaking the choice of supplier into factors and showing how each affects the given business. Start by identifying the factors in the case, such as price, quality, reliability, flexibility, location, payment terms and ethical record. Then explain the consequence of each for that business. For example, a hotel choosing a laundry supplier may accept a higher price for daily collection, because dirty linen loses bookings. Weigh factors against each other: low price may mean slower delivery, raising stockholding costs. Consider the business's own context, such as whether it competes on speed, quality or price. Finally, judge which factor matters most and why, using evidence from the case.

What earns the marks

• Selects factors relevant to the business in the case rather than listing all possible factors.
• Explains the consequence of a factor, for example poor reliability causes lost output and late customer orders.
• Uses context from the case, such as the business's product, market or production method.
• Compares factors and explains a trade-off, for example lower price against slower or less flexible delivery.
• Reaches a justified conclusion about the most important factor for that business.

Common mistakes and how to put them right

• Describing factors generally without applying them to the named business.

  Put it right by using the case details in each point.

• Giving a conclusion with no reasoning.

  Put it right by stating why that factor outweighs the others for this business.

• Confusing analysis with a long list.

  Put it right by developing fewer factors in depth with consequences.

Exam tips

• Underline the business context in the case before planning your answer.
• Structure each paragraph as factor, effect on the business, and why it matters.
• Use the final paragraph to compare factors and justify your overall choice.