Business Studies · May / June 2020 · Paper 11 · Question 2

0450

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BCK is a multinational company which operates many gold mines. One of BCK’s objectives is to contribute to sustainable development. The Managing Director said: ‘We value all of our stakeholders. 2 With 10000 employees it is important to have the right leadership style. BCK needs well-motivated employees.’ The Managing Director also thinks that effective communication with suppliers is very important.

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2(a)[2]
Define ‘multinational company’. Award 2 marks for a full definition. Award 1 mark for a partial definition. A business with factories, production or service operations in more than one country [2]
A business with production or service operation in another country outside its normal area of operation [2]
Partial definition e.g. works/operates in more than one country [1]
2(b)[2]
State two ways of motivating employees. Award 1 mark per way. Points might include:
financial bonuses
performance related pay
fringe benefits (or examples but allow only once)
profit share
provide opportunities for promotion
job rotation
job enrichment
job enlargement
training opportunities
increase rate of pay
employee of the month/award schemes
praise Other appropriate responses should also be credited.
2(c)[4]
State four factors that might affect the leadership style used by a manager. Award 1 mark for each relevant factor. Points may include:
Personality of leader/manager
Skills of leader
Skills of employees
Work to be done
Size of business
Organisational structure Other appropriate responses should also be credited. 4
2(d)[6]
Explain two ways BCK could contribute to sustainable development. Award 1 mark for identification of each relevant way (max 2). Award 1 mark for each relevant reference made to this business (max 2). Award 1 mark for each relevant explanation (max 2). Points might include:
Reduce output [k] of gold [app] so only extract amount required (to meet demand) [an]
Use renewable energy [k] so need to use fewer natural resources [an] when operating its mines [app]
Restore land to nature when finished [k] so land can be reused for other purposes [an]
Increase efficiency [k] of its 10 000 employees [app] so waste fewer resources [an]
Change methods of working [k] Other appropriate responses should also be credited. 6
2(e)[6]
Do you think using communication methods based on information technology (IT) is the best way for a large business to communicate with its suppliers? Justify your answer. Award up to 2 marks for identification of relevant issues. Award up to 2 marks for relevant development of points. Award 2 marks for justified decision as to whether using communication methods based on information technology (IT) is the best way for a large business to communicate with its suppliers. Points might include:
Phone call as can obtain immediate feedback [k] but may not be able to contact the person when needed [an]
Emails allow the receiver to read the message when it’s convenient to [k] but may not read it/see it as junk mail [an] but could contain lots of detailed information [an]
Choice could depend on location of supplier e.g. local or in another country/how much information need to include [k] Other methods
Meetings [k] allows for feedback [an] but can be difficult to arrange a suitable time when everyone can attend [an]
Letter [k] have a copy that can refer back to [an] but language used may not be clear if use technical language [an] Justification might include:
Yes, especially if its urgent as electronic methods are usually quicker – so action/changes can be made sooner so that operations are not delayed – which could be very costly especially for large business. [eval] [eval] Other appropriate responses should also be credited. 6

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