Learner Resource 7 – The wool warehouse – case study questionIntroductionRead the case material and answer the questions that follow.

The Wool Warehouse was set up in 2012 in response to Holly and Andy not being able to get hold of the yarn Holly needed for a knitted blanket. They deliberately chose to set up their business in a warehouse instead of a high street shop as they felt that they could enter the online market easily as there were only 2 or 3 yarn suppliers online. The business grew quickly as online sales took off and in 2014 they doubled their warehouse space as their range expanded.

1. Define e-commerce (2 marks)

2. Explain 2 reasons why a warehouse was chosen for an online business (4 marks)

3. Evaluate the decision by Holly and Andy to set up a business as an online only business. (7

marks).

Version 1 1 © OCR 2017Business Operations – 4.5 Business location

Version 1 2 © OCR 2017Business Operations

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