Business Studies · May / June 2022 · Paper 21 · Question 4
0450
As printed in the paper
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4(a)[8]
Explain one advantage and one disadvantage of Yasin using a democratic leadership style. 1 mark for each advantage/disadvantage identified (maximum 2 marks). Award a maximum of 3 additional marks for each explanation of an advantage/disadvantage of Yasin using a democratic leadership style – one of which must be applied to this context. Relevant answers might include: Advantages:
Better decisions – as employees are consulted – may offer additional ideas from own experience of doing the jobMotivating for employees – asked to offer opinions before decisions are made – feel more trusted/valued – less likely to leave/lower labour turnoverEmployees work better due to their sense of belonging/builds a relationship – more productive/positive Disadvantages:Takes time to consult employees – Yasin and the employees could be more productive doing other jobs – less productive/less output producedUnpopular decisions may be difficult to make – such as making employees redundant – may be less effective if employees are asked for their opinions as the decision may affect them directly – therefore opinions may be biasedEmployees may not have the experience to make suitable contributions – unable to make helpful suggestionsSuggestions made by employees may be different to the objectives of management – may lead to conflict/confusion For example: Better decisions may be made by Yasin (1)because employees are asked for their opinions before decisions are made (1). Yasin only employs 3 people (app) so it will be easier for them to offer additional ideas from their own experience of doing the job (1). Application could include: bakery;
3 employees;
work five days a week: paid legal minimum wage: produce bread;
Yasin needs to keep the business competitive;
introduction of cakes;
changing suppliers;
ethical image.
4(b)[12]
Consider the following three ways Yasin could improve the ethical image of MB. Which way would be most effective? Justify your answer.
Buying all ingredients from local suppliers.Using only environmentally friendly packaging.Increasing wage rates to 20% above the legal minimum wage. Level Description Sound application of knowledge and understanding of relevant business concepts using appropriate terminology. Detailed discussion of two or more ways. Well-justified conclusion. Candidates discussing all three ways in detail, in context and with a well-justified conclusion including why the alternative ways were rejected should be rewarded with the top marks in the band. 9–12 Sound application of knowledge and understanding of relevant business concepts using appropriate terminology. Detailed discussion of at least one way. Judgement with some justification / some evaluation of choice made. Candidates discussing two or more ways in detail and applying them to the case should be rewarded with the top marks in the band. 5–8 Limited application of knowledge and understanding of relevant business concepts. Limited ability to discuss the ways with little/no explanation. Simple judgement with limited justification / limited evaluation of choice made. Candidates outlining all three ways in context should be rewarded with the top marks in the band. 1–4 No creditable response. Relevant points might include: Advantages Disadvantages Buying all ingredients from local suppliersIngredients are obtained with less pollution from transportation as they will no longer be importedSupport local community as flour produced by local businessesDelivery is cheaper / quicker – less impact on the environmentPopular with customers – research showed 85% wanted thisCan compete with local competitors – they already use local suppliersCosts of ingredients are likely to be higher than low-cost imports and may have to charge higher pricesMay not be able to purchase all the range of ingredients you want – may restrict the range of bread produced Using only environmentally friendly packagingImproves the brand image for the bakery – more attractive to consumers who are environmentally aware – target a different market segmentWill not be affected if new environmental laws demand sustainable packagingReliable supplier available (appendix 3)Less chance of pressure group activityMay reduce the quality of the bakery products if the packaging does not protect the bread as wellTakes time to source the environmentally friendly packaging – less time for Yasin to carry out other tasksLikely to cost more than current packaging – not all customers will be willing to pay higher prices Advantages Disadvantages Increasing wage rates to 20% above the legal minimum wageEmployees more motivated – Taylor’s motivation theory – workers treated well/feel appreciatedLower labour turnover – as other employers may be less ethicalEasier to recruit new employees – as attracted by higher rates of pay by a good employerWage costs will be higher – increasing total costs – possibly lower profitIf other bakeries pay higher wage rates, then MB may not have any advantage and it may not motivate employeesThe higher wage policy may not be known in the local community hence little effect on reputation Recommendation Justification might include:Buying from local suppliers is best because it supports local businesses, and this will make the bakery popular with local people. The business is small and relies on local customers and local people in the town may have relatives running other local businesses, improving MBs image and reputation. Paying higher wages may not be known by customers and therefore may not help to improve MB’s ethical image and packaging may just be thrown away by customers who may not take much notice of what is used for packaging as they will be more interested in the product.Having environmentally friendly packaging is most important even if the costs are slightly higher for the packaging as this should ensure the bakery packaging is sustainable which is a good marketing point which may be popular with many potential customers. Buying from local suppliers may not be possible if the range of ingredients isn’t wide enough or increasing the wage may increase costs too much for MB to remain competitive.Paying above the minimum wage will make the bakery a better place to work for the 3 employees and will make them less likely to leave. They will also tell their family and friends about the bakery, and this will improve the image of the bakery therefore attracting local people to buy their bread from BM.
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