Business Studies · May / June 2023 · Paper 11 · Question 1

0450

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WLT manufactures carpets. It exports 40% of its products. Globalisation has created opportunities and threats for WLT. Its method of production allows WLT to use specialisation. All of its 60 1 employees understand that quality assurance is important. WLT’s directors are considering the best way to increase efficiency.

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1(a)[2]
Define ‘specialisation’. Award 2 marks for a full definition. Award 1 mark for the partial definition. When people/businesses/countries concentrate on what they are best at [2]
OR Focusing an individual or group on one particular skill or process that they are suited to or for which they possess the correct skills [2]
OR Way in which work is divided so each worker concentrates on a specific task [1]
so they become expert at it [1]
Partial definition, e.g. Workers do only one job [1]
Other appropriate responses should also be credited.
1(b)[2]
Identify two methods of production.
Award 1 mark per method (max 2). Two from:
Job (production)
Batch (production)
Flow/mass (production)
1(c)[4]
Outline two advantages to WLT of using quality assurance.
Award 1 mark for each relevant advantage (max 2). Award 1 mark for each relevant reference to this business (max 2).
Points might include:
Reduces faults/errors at all stages of production/fewer mistakes [k] when making carpets [app]
Less waste/less rework (of faulty products) [k] which could help improve efficiency [app]
Encourages teamwork which may motivate worker [k] among its 60 employees [app]
Fewer customer complaints/fewer customer
returns/replacements [k]
Better brand image/improve/maintain reputation [k]
Reduce inspection costs/do not need to hire inspectors [k]
Allows business to know at what stage mistakes happen [k]
Other appropriate responses should also be credited.
1(d)[6]
Explain one opportunity and one threat of globalisation for WLT.
Award 1 mark for each opportunity/threat (max 2). Award 1 mark for each relevant reference to this business (max 2). Award one mark for each relevant explanation (max 2).
Opportunities might include:
Increase potential sales/access to more markets [k] as it exports 40% of its products [app] increasing revenue [an]
Cheaper raw materials from other countries [k] to manufacture [app] which can improve the profit margin [an]
Labour may be cheaper [k] reducing (labour) costs [an]
Economies of scale or relevant examples [k]
Global brands are more recognised/desirable [k] Threats might include:
Increased competition [k] leading to a reduction in market share [an]
Employees may leave if WLT cannot pay as much as international competitors [k] so may lose some of its 60 employees [app] increasing recruitment costs [an]
Over dependent on supplies from other countries [k] Other appropriate responses should also be credited.
1(e)[6]
Do you think improving labour skills is the best way for a manufacturing business to increase efficiency? Justify your answer.
Award up to 2 marks for identification of relevant points. Award up to 2 marks for relevant development of points. Award up to 2 marks for justified decision as to whether improving labour skills is the best way for a manufacturing business to increase efficiency.
Points might include:
Improving labour skills:
Able to work faster [k] which will increase output per worker [an]
Fewer mistakes are made [k] leading to less
rework/wastage [an]
Training takes employees time [k] which will lower output in the short-term [an]
Increase training costs [k] which will increase unit costs [an]
Workers are more versatile/ flexible [k]
Other ways might include:
Automation/machinery [k] allows operation with fewer employees [an]
Lean production/Just-in-time/Kaizen [k] therefore lower cost per unit [an]
Improved motivation or methods of motivating, e.g. piece rate [k]
Other appropriate responses should also be credited.
Justification might include:
Improving labour skills can mean that employees make fewer mistakes.
[k] leading to less rework [an]. Whereas automation [k] allows the business to operate with fewer employees [an]. Improving labour skills is the best way, because automation could lead to redundancies which may demotivate the remaining employees [eval] and potentially leading to less output overall [eval].

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