Business Studies · Oct / Nov 2024 · Paper 11 · Question 1

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RSL manufactures paint using flow production. Last year it produced 10 million litres of paint. RSL has 6 managers and 80 employees working in its factory. The managers use different leadership 1 styles. RSL uses email and telephone calls as its methods of internal communication. The Operations Manager wants to understand why some manufacturing businesses are relocating their operations to other countries.

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1(a)[2]
Identify two benefits to a business of using flow production. Award 1 mark per benefit (max 2). Points might include:
High output / large number of products made
(Purchasing) economies of scale / discounts for bulk buying / low average/unit costs
Lower labour cost / less workers needed
Increased efficiency/productivity / goods are produced quickly
No need to move goods from one part of the factory to another
Consistent/standardised quality. Other appropriate responses should be credited. 2 Only award the first two responses given. Do not award: Vague comments such as saves time, cheaper, quicker, faster on their own.
1(b)[2]
Identify two reasons why people work. Award 1 mark per reason (max 2). Points might include:
(Earn) money/wage/salary/improve standard of living
Job satisfaction / feel as if you have done a good job
Safety/security for example job security
Social or examples such as feel part of a group/company
Esteem/recognition/status/feel important/valued
Opportunity to reach potential / challenge self to do new things
Help people/provide a service to community/others. Other appropriate responses should be credited. 2 Only award the first two responses given. Do not award: Vague answers such as relieve boredom, something to do, like what they do. Notes
1(c)[4]
Outline one advantage of RSL using each of the following methods of internal communication. Award 1 mark for identification of each relevant advantage (max 2). Award 1 mark for each relevant reference made to this business (max 2). Points might include: Email:
A lot of information/detail/documents can be shared [k] with the 80 employees [app]
Can send information/message to multiple people at the same time [k] about the paint [app]
Keep a copy (to refer to) [k]
Can communicate with people in a different location [k]
Low cost/cheap [k]
Can check if the message has been read [k] Telephone calls:
Quick [k] if there is a problem using flow production [app]
Opportunity for (instant) questions/discussion/decisions [k] with one of the 6 managers [app]
Feedback (straightaway) [k] Other appropriate responses should also 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:
Paint
10 million litres
Flow production
Relocate (to another country)
80/86 employees
6 managers
Factory
Manufacturer
Different leadership styles. Other appropriate examples can be credited. Award only once in the answer: Low cost/cheap [k] Fast/quick [k] Notes
1(d)[6]
Explain two leadership styles RSL’s managers might use. Award 1 mark for each relevant leadership style (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:
Autocratic [k] when the manager instructs/ tells workers what to do [an] when using flow production [app]
Democratic [k] when one of its 6 managers [app] asks employees for their ideas/opinions before making a decision [an]
Laissez-faire [k] when the managers leave it up to the employees to make decisions/decide what to do [an] when making paint [app] 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:
Paint
10 million litres
Flow production
Relocate (to another country)
80/86 employees
6 managers
Email
Telephone calls
Factory
Manufacturer Other appropriate examples can be credited. Notes
1(e)[6]
Explain two factors a manufacturing business should consider when relocating its operations to another country. Which factor is likely to be the most important? 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 factor is likely to be the most important for a manufacturing business when relocating its operations to another country. Points might include:
Access to raw materials [k] as without materials it can delay/stop production [an] so not able to meet orders [an]
Labour issues e.g. cost/access to suitable/skilled/enough employees [k] as lower wage rates could help lower labour costs [an] increasing its profit margin [an]
Land issues e.g. availability/cost of suitable land [k] which could increase/lower fixed costs [an]
Trade restrictions such as tariffs/quotas [k] as quotas could limit the amount of goods allowed into a country [an]
Availability of government grants / rates of taxation [k] which could reduce the amount of finance needed [an]
Legal controls [k] as this could stop/determine where the business can operate [an]
Infrastructure (accept only once) e.g. access to utilities, communications [k] as without suitable power it would be difficult to operate (efficiently) [an]
Available market/demand for the product/level of competition [k] which may reduce transport costs [an]
Language/cultural problems [k] 6 This is a general question so there are no marks for application. Some analysis could be used for different points, but only award once. Accept costs [k] once if there is no specific reason for the costs given. Notes Other appropriate responses should be credited. Justification might include: Access to raw materials [k] without materials there may be delays in production [an]. Another factor is employees [k] as a lack of skills could lead to lower quality products [an]. Access to raw materials is the most important because without materials there is nothing to sell, lowering potential revenue [eval]. However, a business could train employees to produce quality products [eval]. Notes

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