A furniture manufacturer has been asked by a retailer to produce 500 flat-pack desks each month. The manufacturer buys wood and fittings, cuts the materials...
Question 1 Report
A furniture manufacturer has been asked by a retailer to produce 500 flat-pack desks each month. The manufacturer buys wood and fittings, cuts the materials, assembles sample desks and packages the finished product. The retailer then sells the desks directly to customers through its website. Both businesses want higher sales but have different roles.
(a) Identify the business that sells directly to final customers. [1]
(b) Which sector does the furniture manufacturer operate in? [1]
(c) Explain one reason why the retailer and manufacturer may need to communicate regularly. [2]
Answer Details
(a) The retailer sells directly to final customers through its website. [1]
(b) The furniture manufacturer operates in the secondary sector, also called the manufacturing sector, because it converts wood and fittings into desks. [1]
(c) The retailer can communicate customer demand or product complaints to the manufacturer. [1] The manufacturer can then change production quantities or alter the desk design, helping to improve sales. [1]
Key distinction: The manufacturer makes the product, whereas the retailer sells it to the final consumer.
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