Fig. 1 shows a simplified flow chart for a company that collects used smartphones, tests them, repairs suitable phones and sells them with a warranty. Phone...
Question 1 Report
Fig. 1 shows a simplified flow chart for a company that collects used smartphones, tests them, repairs suitable phones and sells them with a warranty. Phones that cannot be repaired are sent to a specialist recycler. The manager says the business must make a profit but also wants to reduce electronic waste.
(a) Identify the stage in Fig. 1 that adds value to a used smartphone before it is sold. [1]
(b) Explain one environmental objective of this business. [2]
(c) Explain one way offering a warranty could help the business increase sales. [2]
(d) Which stakeholder may benefit from the recycling stage? [1]
(e) Calculate the percentage of 240 collected phones that are repaired if 180 are suitable for repair. [2]
(f) Explain one reason why profit remains important to this business. [2]
Answer Details
(a) The value-adding stage is repairing suitable phones. Repair changes a used phone into a refurbished product that can be sold with greater value. [1]
(b) An environmental objective is to reduce electronic waste and prevent phones going to landfill. The business achieves this by repairing suitable phones and sending those that cannot be repaired to a specialist recycler. [2]
(c) A warranty gives customers confidence that faults will be dealt with. This reduces the perceived risk of buying a refurbished phone, so customers may be more willing to buy and sales may rise. [2]
(d) The local community may benefit from the recycling stage. Environmental groups, customers and the recycler are also acceptable stakeholders. [1]
(e) The percentage repaired is:
\[\frac{180}{240}\times100=75\%\]
75% of collected phones are repaired. [2]
(f) Profit remains necessary to pay operating costs, including collection, testing and staff. Profit also allows the business to continue operating and invest in further repairs, so its environmental objective can be sustained. [2]
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