Business Studies · May / June 2024 · Paper 12 · Question 3

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RBG is an oil company. It has operations in 6 countries. RBG has 2000 employees including 60 managers. Some of its managers use a laissez-faire leadership style. All of RBG’s internal 3 communication uses information technology (IT) based methods. The Managing Director knows RBG’s business activities can create external costs and external benefits. She says: ‘Pressure groups often try to influence business decisions.’

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3(a)[2]
Define ‘laissez-faire leadership style’. Award 2 marks for a full definition. Award 1 mark for a partial definition. Makes the broad objectives of the business known to employees, but then they are left to make their own decisions and organise their own work [2]
OR A style of leadership that supports employees in achieving targets at the same time as allowing them the freedom to decide how to meet the targets [2]
Partial definition e.g. managers do not tell workers what to do/how to organise work [1]
2 For both marks need the idea that it links to decision making – and it is the employees/workers who make them. Notes
3(b)[2]
Identify two roles of a manager. Award 1 mark per role (max 2). Points might include:
Planning
Controlling
Organising
Leading/commanding/directing/give instructions/tasks
Coordinating
Motivating/inspiring others
Decision-making/solve problems
Communicating/give feedback
Delegating Other appropriate responses should be credited. 2 Only award the first two responses given. Accept any tasks that managers are likely to do. Do not award:
Managing activities on own e.g. managing finance Notes
3(c)[4]
Outline one external cost and one external benefit RBG’s business activities might create. Award 1 mark for each relevant external cost/benefit (max 2). Award 1 mark for each relevant reference to this business (max 2). Points might include: External costs:
Loss of space/land [k] from its operations in 6 countries [app]
Pollution/waste or examples such as gas emissions [k] which is why it must respond to pressure groups [app]
Congestion/traffic [k]
Deplete/exploit natural/non-renewable resources [k]
Use of energy [k] External benefits:
Employment opportunities/lower unemployment [k] as may recruit more than 2000 employees [app]
Taxes will be paid to governments [k] from extracting oil [app]
Improved infrastructure/better transport systems [k] Other appropriate responses should be credited. 4 To use words from the stem as application, the reference must be appropriate (i.e. make sense) in relation to the point being made. The following words are likely to be appropriate for this question:
Oil
6 countries
Pressure groups
2000 employees
60 managers
IT based methods Other appropriate examples can be credited. Notes
3(d)[6]
Explain two methods of IT based communication RBG might use with its employees. Award 1 mark for identification of each relevant method (max 2). Award 1 mark for each relevant reference to this business (max 2). Award 1 mark for each relevant explanation (max 2). Points might include:
Email [k] written record [an] for all 2000 employees [app]
Text messages/SMS/DM [k] saves time/quick [an] for the 60 managers [app]
Website/social media or examples e.g. Facebook/X/Twitter [k] seen by many people at once [an] in the 6 countries [app]
Video conferencing or examples e.g. Zoom/Teams/ online meeting [k] as can see body language [an]
Phone/mobile (call) [k] at the oil company [app] as able to get feedback/allows for two-way communication [an] Other appropriate responses should be credited. 6 To use words from the stem as application, the reference must be appropriate (i.e. make sense) in relation to the point being made. The following words are likely to be appropriate for this question:
Oil
6 countries
2000 employees
60 managers
Laissez-faire Other appropriate examples can be credited. Can award the following as [an] for different methods but only award once:
Low cost
Quick
Send to many people at once
Send large amounts of information/able to send attachments
Written record/can refer to later
Able to get (instant) feedback
Do not have to travel Notes
3(e)[6]
Explain two ways a pressure group might try to influence business decisions. Which way do you think is likely to be the most effective? 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 a justified decision as to which is the most effective way for a pressure group to try to influence business decisions. Points might include:
(Customer) boycotts/encourage customers not to buy [k] leading to fewer sales [an] and possibly less revenue [an]
Raise/increase awareness or examples such as cause negative publicity / publish information / write to newspaper / publicity stunts [k] which could damage the business’ reputation [an]
Lobbying (politicians)/send letters to government [k] which could lead to changes in the law / which could take time [an]
Demonstrations/protests [k] which could lead to fewer people willing to invest in the business [an]
Arrange petitions [k]
Take legal action [k] but may increase costs [an] Other appropriate responses should be credited. Justification might include: A pressure group could organise boycotts [k] leading to fewer sales [an]. It could lobby politicians [k] which could influence government decisions [an]. A boycott is the most effective way because fewer sales could mean less revenue which directly affects the business [eval], whereas lobbying may not achieve anything other than raising awareness [eval]. 6 This is a general question so there are no marks for application. Some points of analysis can be used for different ways but do not award the same development twice. To access [eval], must discuss two valid ways. Notes

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