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Business Studies · May / June 2024 · Paper 22 · Question 2

0450

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  • 2(a)[8]

    Explain two benefits and two limitations for JJ of employing part-time workers in its factory. Award 1 mark for each relevant benefit/limitation (max 4). Award a maximum of 1 additional mark for each explanation of the benefit/limitation in context. Relevant benefits might include:

    The employees are more flexible in the hours they work – than the 60 full- time workers
    Ask/more likely for the part-time workers to increase their hours – during busy times to meet demand for bracelets
    Can/more likely increase operating hours in the factory when demand increases – as the 25 part-time workers may be willing to work extra hours
    Part-time employees often do not need to take time off for appointments, such as to visit the doctor – less likely to cause disruption to the manufacture of rings
    May be able to attract skilled employees who want to work reduced hours
    May reduce business costs if pay lower wages than wage rates for full- time workers
    It may be easier to make part-time workers redundant Relevant limitations might include:
    If the employee sees the job as temporary, then they may be less committed to the business - produce less jewellery
    Takes longer to recruit two part-time employees than one full-time employee – so less time to focus on selling in other countries
    There may be an increase in induction and training costs – which may make it difficult to increase profit each year
    More difficult to communicate with part-time employees
    If the job is temporary then less likely to provide training for them For example: If the employee sees the job as temporary, then they may be less committed to the business (1)

    and produce fewer items of jewellery (app). Application could include: jewellery;

    set up 25 years ago;

    public limited company;

    objective to increase profit every year;

    to expand the business;

    sold directly to customers in other countries;

    30% sold using ecommerce;

    70% sold in jewellery shops;

    raw materials purchased locally;

    60 full-time employees;

    25 part-time employees;

    bracelets;

    rings;

    earrings.

  • 2(b)[12]

    Consider the advantages and disadvantages of the following three ways JJ could promote its new product in country X. Which way should JJ use? Justify your answer.

    Advertising in fashion magazines
    Handing out leaflets in Main City
    Point-of-sale displays in shops Level Description Mark Sound application of knowledge and understanding of relevant business concepts using appropriate terminology. Detailed discussion of at least two ways. Well-justified recommendation. Candidates discussing all three ways in detail, in context and with a well-justified recommendation, 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 at least two 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 Advertising in fashion magazines
    Read by target market – more likely to be seen by potential customers – possibly increasing sales
    Can be shown in colour with photographs/images – may make the jewellery look more attractive - more appealing to customers
    Can be expensive to advertise in a fashion magazine – increases costs for JJ – possibly lowering profit if advertising is not effective at increasing revenue
    Often only published once a month or once a week – therefore may not be seen as often by potential customers
    Only seen by people who read the fashion magazines, and these may not be the target market for JJ’s new jewellery product Handing out leaflets in Main City
    A cheap method of advertising – keeps down marketing costs
    Given out in the street in Main City so may be handed out to many people – reaches a wide range of potential customers who may want to buy jewellery
    Leaflets can be kept for future reference, especially if discount coupon included
    May not be looked at – so waste of money – not effective advertising of either bracelets or rings
    May be seen as junk so thrown away – annoying to potential customers and may deter them from buying JJ’s products Advantages Disadvantages Point-of-sale displays in shops
    Seen by potential customers when they enter the jewellery shop – may attract more customers to buy JJ’s jewellery
    Makes JJ’s rings and bracelets stand out from competitors’ products
    May not be noticed so may not be effective
    Cost of displays and incentives to retailers to put the point-of- sale displays of the new jewellery in their shops
    Difficult to make a jewellery item stand out to potential customers as the jewellery items are small and can easily be missed Recommendation Justification could include:
    JJ should choose to advertise in fashion magazines because these are purchased by potential customers who are more likely to see the adverts and therefore be more likely to buy JJ’s new jewellery product. Leaflets may not even be looked at and thrown away and point-of- sale displays are only seen if potential customers go into that retailer’s shop in the first place, therefore limiting the number of potential customers seeing the display.
    JJ should choose to hand out leaflets in Main City because these will reach a wide range of people shopping in the city and will be more likely to attract people who have not previously been customers of JJ’s products, making them more likely to purchase JJ’s new jewellery.
    JJ should choose to provide point-of-sale displays in jewellery shops as they will be seen by customers entering the shop and these will be people who are already interested in buying jewellery so may be the most effective promotion to use so may generate the most sales.
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