Distribution and Approaches to Staffing

Question 1

What is a definition of ‘distribution’?

Answer 1

Distribution is defined as the location where consumers can buy products from. If businesses cannot get products to the right place at the right time then they are unlikely to be successful.

Question 2

What is a distribution channel and what are examples of four-stage, three-stage, and two-stage distribution channels?

Answer 2

A distribution channel is the route taken by a product from the producer to the consumer.

Question 3

How would you define wholesalers and retailers?

Answer 3

Wholesalers are businesses who buy from manufacturers and sell to retailers.
Retailers are businesses who buy goods and sell them straight to consumers.

Question 4

What are some forms of two-stage distribution?

Answer 4

Internet selling.
Direct mail.
Door-to-door selling.
Mail-order catalogs.
Direct response adverts.
Shopping parties.
Telephone selling

Question 5

An example of a business that uses two-stage distribution?

Answer 5

An example of a business that sells using two-stage distribution is Avon, which sells cosmetics door to door to consumers.

Question 6

How does three-stage distribution work?

Answer 6

Producer>Retailer>Consumer

Question 7

How does four-stage distribution work?

Answer 7

Producer>Wholesaler>Retailer>Consumer

Question 8

Factors that can affect which distribution channel businesses choose

Answer 8

• The nature of the product.
• Cost
• The market
• Control-some producers want complete control over distribution. More likely with high quality, luxury goods.

Question 9

How many employees define small, medium, and large businesses?

Answer 9

Small businesses employ between 1 and 49 people.
Medium businesses employ between 50 and 249 people.
Large businesses employ 250 people or more.

Question 10

Ways businesses treat employees that are valued as assets

Answer 10

Will value employees and have concern over their welfare.
Reasonable holidays/sick leave/maternity leave and pensions.
Training so that staff can develop their skills and improve.
Job security and opportunities to interact with employees.
Clear and effective leadership.
Opportunities to solve problems, work in teams and be creative.

Question 11

Ways businesses treat employees that are valued as a cost.

Answer 11

Paying just the legal national minimum wage.
Using zero-hours contracts.
Neglecting investment in training.
Using financial incentives to raise productivity.
Providing the minimum employee rights in terms of holiday pay and sick leave.
Having penalties for employees who are late or break rules or incur costs for the business.

Question 12

What are flexible workforces?

Answer 12

A flexible workforce allows businesses to adapt to change more easily. For example, if output suddenly needs to be increased then businesses may be able to make use of temporary staff to increase this output.