Business (AS & A Level) · May / June 2021 · Paper 24 · Question 2

Delicious Chicken (DC) DC is a fast-food restaurant that specialises in fried chicken and chips (fried potatoes). DC is a small business and only has one shop in a busy town. DC’s main competitors are large multinational companies which have hundreds of shops in the same country as DC. DC is owned and managed by Kate. Kate is proud of the business that she has built up and she has a loyal group of customers who return two or three times a week to eat in her restaurant. Being a small business, DC has always been customer orientated. Kate only uses ethically produced chicken meat purchased from a local farm. These factors, Kate believes, give DC a Unique Selling Point (USP). DC’s employees work in two teams (see Table 1). Table 1: DC’s Afternoon Team and Night Team employee data Afternoon Team Night Team Hours of work 12:00–20:00 20:00–03:00 Absenteeism 3% 8% Total number of workers 10 16 Workers who left during the year 1 4 Average number of customers served per hour 40 80 Employees in both of the teams are paid the same hourly rate and are not allowed to switch between teams. Each team is managed by a team leader. Kate is concerned about the high absenteeism and high labour turnover in the Night Team. She had a meeting with Bill, the Night Team leader. During the meeting she suggested that the poor motivation of the Night Team might be caused by Bill’s autocratic leadership style. However, Bill was convinced that it was more to do with other issues. 5 10 15 20

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