Business Studies · May / June 2026 · Paper 11 · Question 3

0450

As printed in the paper

The question as text

SDY sells hats and scarves. One of SDYzs objectives is to increase the number of sales. SDY has 240 shops and 3000 employees. All its shop managers use a democratic leadership style. The human resources director is currently recruiting new employees to work in SDYzs shops. External recruitment will be used. All new employees will be given induction training. 3

Read automatically from the paper; the printed page above is exact.

Show the answer and mark scheme

3(a)[2]
Define ‘democratic leadership style’. Award 2 marks for a full definition. Award 1 mark for a partial definition.
Involves employees/subordinates in the decision-making process [2]
Employees take part in the decision-making [2]
Partial definition e.g.
Manager asks for employees’ opinions / listens to employees’ ideas [1]
Employees vote on decisions [1]
2 For 2 marks need the idea that it involves employees and reference to decisions.
3(b)[2]
Identify two functions of management. Award 1 mark per function (max 2). Two from:
Planning/plan
Organising/organise
Commanding/command
Controlling/control
Coordinating/coordinate/coordination 2 Only award the first two responses given.
3(c)[4]
Outline two ways SDY could increase the number of sales. Award 1 mark for each relevant way (max 2). Award 1 mark for each relevant reference to this business (max 2). Points might include:
Advertising (or examples such as television)/product placement [k] the hats/scarves [app]
Lower prices/ promotional pricing/offer discounts [k] in 240 locations [app]
Introduce new products [k] in the shops [app]
Improve customer service [k] which may be included in the induction training [app]
Point of sale display [k]
Free samples [k]
Competitions [k]
Offer free gifts [k]
Loyalty cards [k]
Buy One Get One Free / BOGOF [k]
New/change packaging [k]
Enter a new market [k]
Sell through new outlets / introduce ecommerce [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:
Hats/scarves or related words
Shops
240 (locations)
3000 employees
Induction training
Democratic leadership style Other appropriate examples can be credited. Notes:
Can award promotion if no specific examples of advertising or sales promotion. Do not award the following as they are too vague:
Have low price
Marketing
Ethical
Improve/create brand image.
3(d)[6]
Explain one advantage and one disadvantage of SDY using induction training for its new employees. Award 1 mark for identification of each relevant advantage/disadvantage (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: Advantages:
Helps new employees gain knowledge about the work (place) / settle quickly into job/ role [k] so can help maintain standards [an] in the shops [app]
Less likely to make mistakes [k] which helps protect the business reputation [an] when selling hats [app]
May be a legal requirement [k] so must offer to avoid any fines [an]
Allow new employees to meet other workers [k] at the 240 locations [app]
Helps to be made aware of important health and safety issues before starting the job [k]
Increase motivation [k] or [an]
Workers are less likely to leave/improve employee retention [k] Disadvantages:
Employees are not working but are still being paid [k] which increases costs [an] of employing its 3000 employees [app]
Delays when employees start their job [k] so may not be able to operate at full capacity [an]
Time-consuming [k] could reduce the chances of achieving objectives [an] such as increasing the number of sales [app]
Increases costs [k] which increase cash outflows/total cost [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:
Hats/scarves or related words
Shops
240 (units)
3000 employees
Objective is to increase sales
Democratic leadership style
External recruitment/recruited externally Other appropriate examples can be credited. Notes:
Points can be about employer or employee.
Costs can be [k] or [an] but reward only once
Some points maybe [k] or [an] but accept only once. Do not award: On the job/off the job training
3(e)[6]
Explain two methods of external recruitment a business could use. Which is likely to be the best method for a business to use? 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 about which is the best method of external recruitment for a business to use. Points might include:
Specialist/trade magazines [k] can target potential employees interested in this industry/type of work [an]
Online/ social media/ website /LinkedIn [k] which can reach large numbers of people / include detailed information/low cost [an] but not everyone has access to the internet [an]
(Recruitment) agencies [k] which saves administration time [an] but recruitment agencies charge a fee for their services [an]
(Government-run) job centres [k] as no cost to the business [an] but only reach those people who are actively looking for a job [an]
Local newspapers [k] which people could ignore [an]
National newspapers [k] but must pay to advertise [an] which increases costs [an]
Notices/poster/flyers (shop windows/ outside the business) [k]
Job fairs [k]
Billboards [k]
Television/cinema [k]
Word of mouth [k] Other appropriate responses should be credited. Justification might include: Recruitment agencies [k] which saves administration time [an]. Another method is online recruitment sites [k] which can reach many people [an]. An online recruitment site is the best method because having access to a wider pool of people can make it easier to find the right person for the job [eval] which may reduce the need to readvertise in the future [eval]. 6 This is a generic question so there are no marks for application. To access evaluation must discuss two relevant methods. For evaluation to be awarded justification will usually follow on from relevant analysis of points. Notes:
Some [an] could be used for different points but only award once.
Analysis can focus on advantages or disadvantages. Do not award:
Methods of selection e.g. interviews
Methods of advertising products
Magazines (on own)

Practise this paper →

Make a free account to save your answers and see your weak topics and ask the AI why a wrong answer is wrong.