1. SWQ owns 200 clothing shops in country A.

All inventory is purchased from 3 local

clothing manufacturers. The Marketing Director has to decide whether to change
suppliers. SWQ could buy 4 inventory from country C, a low cost country. He showed the
newspaper article, see Figure 1, to other directors. He said: ‘Look at this newspaper
article. We operate in a mass market and our customers want low prices. Changing
suppliers to manufacturers in country C will affect our stakeholders.’

Figure 1: Newspaper article

(a) Identify two advantages to a business of selling to a mass market.

higher sales
Advantage 1: ………………………………………………………………………………..
…………………………………………………………………………………………………

wider customer reach

Advantage 2: ………………………………………………………………………………..
…………………………………………………………………………………………………
[2]

(b) Identify two stakeholder groups of SWQ. Explain one possible objective for each
stakeholder group.

Employees
Stakeholder group 1: ..................................................................................................
.....................................................................................................................................
They would want their job security in 200 shops
Explanation: ................................................................................................................
.....................................................................................................................................

customers
Stakeholder group 2: ..................................................................................................
.....................................................................................................................................

they would want a wider range of products.

Explanation: ................................................................................................................
.....................................................................................................................................
 2

[4]
(c) Identify and explain two suitable methods of communication SWQ might use with
manufacturers in country C if it decided to purchase supplies from them.
phone calls
Method 1: ......................................................................................................................
.......................................................................................................................................

So that the feedback can be reached instantly

Explanation: ..................................................................................................................
.......................................................................................................................................
.......................................................................................................................................
.......................................................................................................................................

email
Method 2: ......................................................................................................................
.......................................................................................................................................

using email, files can be attached about the clothing required

Explanation: ..................................................................................................................
.......................................................................................................................................
.......................................................................................................................................
.......................................................................................................................................
[6]

2. RGP owns a number of luxury hotels. The directors are planning to open a new hotel
with 200 rooms. The hotel’s location will be in the city centre. The Human Resources
Director said: ‘One of 1 my roles is to recruit the 300 employees RGP will need from the
local community. I think selecting new employees with the right personality is more
important than their experience. Everyone will have 6 weeks of induction training.’ She
knows that effective communication between employees and customers will be important
to the success of the hotel.

(a) Define ‘induction training’.

The introduction given to the employees and allowing them to meet other employees.
.......................................................................................................................................
.......................................................................................................................................
.......................................................................................................................................
.......................................................................................................................................
[2]
 3

(b) Identify two ways a business could advertise a new job vacancy.
website
Way 1: ..........................................................................................................................
.......................................................................................................................................
Way 2: ..........................................................................................................................
newspaper

.......................................................................................................................................
[4]

(c) Outline two reasons why effective communication between RGP’s employees and
customers is important.

Reason 1: .....................................................................................................................
.......................................................................................................................................
to prevents mistakes and errors, which will damage the reputation of RGP

.......................................................................................................................................
.......................................................................................................................................

Reason 2: .....................................................................................................................
.......................................................................................................................................
To make sure all the employees understand the customer needs in the hotel.

.......................................................................................................................................
.......................................................................................................................................
[6]

4. MBH is a business organisation in the public sector. It controls 5 hospitals and has 5600
employees including 440 doctors. External recruitment is used when recruiting skilled
employees. The Human 4 Resources Director uses ideas from Herzberg’s theory to
improve employee motivation. He is worried about communication barriers within MBH.
The business has a tall organisational structure and a long chain of command. Most of
MBH’s internal communication is by email and phone calls.

(a) Identify two objectives for a business organisation in the public sector.

making products
Objective 1: ...................................................................................................................
.......................................................................................................................................

Objective 1: Affordable price for the products.

...................................................................................................................
.......................................................................................................................................
[2]
 4

(b) Define ‘chain of command’.

the structure of the employees in the organisation showing who should send the information to who
.......................................................................................................................................
.......................................................................................................................................
.......................................................................................................................................
.......................................................................................................................................
[2]

(c) Outline two ways MBH can use ideas from Herzberg’s theory to motivate its
employees.

Way 1: ..........................................................................................................................
giving the employees more responsibilities so that the employees will be efficient on their task.
.......................................................................................................................................
.......................................................................................................................................
.......................................................................................................................................

Way 2: ..........................................................................................................................
The employees should have a chance for promotion as the organisational strucutre is tall
.......................................................................................................................................
.......................................................................................................................................
.......................................................................................................................................
[4]

(d) Explain how MBH might reduce or remove each of the following communication
barriers:

asking for feedback

Message lost: ...............................................................................................................
.......................................................................................................................................

To ensure the message is received.

Explanation: ..................................................................................................................
.......................................................................................................................................
.......................................................................................................................................
.......................................................................................................................................

language
Use of jargon: ...............................................................................................................
.......................................................................................................................................

Explanation: ..................................................................................................................
need to make sure the language is appropriate for the employees to understand.
.......................................................................................................................................
.......................................................................................................................................
.......................................................................................................................................
[6]
 5

(e) Do you think an organisation should always use external recruitment when recruiting
skilled employees? Justify your answer.
Using external recruitment for recruiting can bring in new skills which may increase
.......................................................................................................................................
the efficiency of the business. External recruitment may not have knowledge of how
a business works which may then lead to trainings
.......................................................................................................................................
Using internal recruitment for recruiting can help motivate other employees in the
.......................................................................................................................................
business which reduces the amount of people leaving the business.
.......................................................................................................................................
I think business should use external recruitment to recruit new employees as the
.......................................................................................................................................
business would have newer ideas and skills which will help the business.
.......................................................................................................................................
.......................................................................................................................................
.......................................................................................................................................
.......................................................................................................................................
.......................................................................................................................................
.......................................................................................................................................
.......................................................................................................................................
[6]

4. Meena wants to leave her job as a teacher to become a successful entrepreneur. Her
business will produce handmade jewellery. Meena knows that there is government
support for business 4 start-ups. She plans to use market research to help identify a
market segment for her jewellery. Meena’s brother has offered to become her business
partner but she cannot decide whether it would be better to operate as a sole trader.

(a) Characteristic 1: ............................................................................................................

.......................................................................................................................................
.......................................................................................................................................
.......................................................................................................................................

Characteristic 2: ............................................................................................................
.......................................................................................................................................
.......................................................................................................................................
.......................................................................................................................................
[4]

(b) Explain one advantage and one disadvantage to Meena of operating as a sole trader
rather than being in a partnership.
 6

able to keep all the profit

Advantage: ...................................................................................................................
.......................................................................................................................................

Explanation: ..................................................................................................................
.......................................................................................................................................
As she is able to keep all the profits, she can decide on how she can invest on it/

.......................................................................................................................................
.......................................................................................................................................

fewer ideas
Disadvantage: ...............................................................................................................
.......................................................................................................................................

As she is working alone, she will have lesser knowledge.

Explanation: ..................................................................................................................
.......................................................................................................................................
.......................................................................................................................................
.......................................................................................................................................

[6]

END OF QUESTION PAPER