Business Studies 0450 May / June 2026 Paper 22 Question 4

4(a) Explain two reasons why training employees is important to KE. One mark for each reason why training is important (max 2). Award a maximum of 3 additional marks for each explanation of why training is important – one of which must be in the context. Relevant reasons might include: Increased…

Business Studies · May / June 2026 · Paper 22 · Question 4

0450

As printed in the paper

Show the answer and mark scheme

4(a)[8]
Explain two reasons why training employees is important to KE. One mark for each reason why training is important (max 2). Award a maximum of 3 additional marks for each explanation of why training is important – one of which must be in the context. Relevant reasons might include:
Increased motivation of employees – work harder to produce output – as more skilled so employees are more efficient
More flexible workforce – employees can be moved between tasks as necessary – makes production less likely to slow down if employees are absent
Increased productivity/efficiency – lower unit costs
Quality of the product may be improved – greater customer satisfaction / improved brand image / improved reputation
Employees able to use new technology – easier to introduce new equipment to speed up production
Fewer mistakes as employees are trained – less waste / less repair costs
Workforce is more knowledgeable/skilled – able to complete tasks more effectively Notes:
Explanation of one reason could be used for another reason but do not credit twice as this is repetition.
Do not award – increased sales as explanation unless justified e.g. increased output means increased sales. For example: The business will have a more flexible workforce (1)
this means when an employee is absent another employee can be moved to cover their task (1). Therefore, it can maintain the number of cooking pots produced (app) as there are no halts in production due to absent employees (1). Application might include: cooking pots/equipment;
employs 10 000 people;
public limited company;
output of 20 million cooking pots;
value of output is $90m/$180m;
wants to introduce lean production;
currently pays the minimum wage;
competitive market.
4(b)[12]
Consider the following two ways KE could become an ethical business. Which is likely to be the best way for KE? Justify your answer.
buying from ethical suppliers
paying fair wages to employees Level Description Sound application of knowledge and understanding of relevant business concepts using appropriate terminology. Detailed discussion of both ways. Well-justified conclusion. Candidates discussing both ways, in context and with a well-justified conclusion. including why the alternative way was 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 one or more ways in detail and applying these 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 both ways in context should be rewarded with the top marks in the band. 1–4 No creditable response. Notes:
Paying fair wages is not the same as paying everyone the same wages.
Can accept: It may be more difficult to find an ethical supplier or buying from ethical suppliers may be higher/lower quality
For Level 3 there must be a decision not just a repeat of earlier content. Relevant points might include: Buying from ethical suppliers
Pressure groups will be less likely to protest outside each of the two factories – which might encourage customers to buy their equipment from KE – increases sales from having a better reputation
May be more expensive than buying from less ethical suppliers – possibly lowering the profit margin for each of KE’s low priced products
May reduce the range of raw materials available – may not be able to produce the most popular pots anymore – may reduce revenue Paying fair wages to employees
Higher wage rates might lead to higher motivation – improved quality of cooking products produced
Improved employee loyalty – lower labour turnover – the 10 000 employees may be less likely to leave and work for another business – lower recruitment costs
May sell more cooking pots – as this will provide employees with a higher income than they might otherwise have had – increasing revenue
Wage costs are likely to be higher – which may lead to higher prices for cooking equipment – may lead to lower demand – reducing revenue Conclusion Justification may include:
Raw materials purchased from ethical suppliers is the best way for KE to be an ethical business because it will lead to a good reputation and attract customers concerned about the environment. Revenue will be higher as more pots are sold and possibly higher profits will be made. Paying fair wages is less likely to have any effect on sales as employees may not buy more cooking pots.
Paying fair wages is the best way for KE to be an ethical business because employees are more likely to be loyal and therefore lower recruitment costs, which covers the increased costs of the 10 000 employees.

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.