Photo AI
Heidi has a small farm that has a variety of animals, including chickens - HSC - SSCE Business Studies - Question 15 - 2022 - Paper 1
Question 15
Heidi has a small farm that has a variety of animals, including chickens. She would like to sell the excess chicken eggs to customers. Which distribution method wou... show full transcript
Worked Solution & Example Answer:Heidi has a small farm that has a variety of animals, including chickens - HSC - SSCE Business Studies - Question 15 - 2022 - Paper 1
Step 1
Which distribution method would best support her situation?
Answer
To determine the best distribution method for Heidi's situation, we should consider the directness and efficiency of the selling process from her farm to the consumers.
-
Option A: Producer ⟶ consumer: This method allows Heidi to sell directly to the consumers, ensuring maximum profit and minimal handling of the product. Given her goal of selling excess chicken eggs directly to customers, this is likely the most effective choice.
-
Option B: Producer ⟶ retailer ⟶ consumer: While this method can reach more consumers by utilizing retail spaces, it introduces additional costs and intermediaries that may reduce profitability.
-
Option C: Producer ⟶ wholesaler ⟶ consumer: This option typically suits larger scale production and can dilute the direct connection with end consumers, making it less advantageous for Heidi.
-
Option D: Producer ⟶ agent ⟶ retailer ⟶ consumer: This is the most complex route involving multiple intermediaries, which may delay sales and cut into potential earnings.
Considering these points, the best distribution method for Heidi is Option A: Producer ⟶ consumer.