Business Studies · May / June 2017 · Paper 21 · Question 2

Identify two motivational theories and explain how TT could use these theories to help increase worker motivation Knowledge [2 × 1] – award one mark for each theory Analysis [2 × 1] – award one mark for a relevant explanation for each theory Application [2 × 2] – award two application marks for each theory Award one mark for each theory (maximum of two), from:

50 different designs;

batch production of various sizes;

expect high quality;

personalized T-shirts;

really unhappy factory workers;

may be made redundant if taking over another business;

Operations Manager just tells me what to do;

she never asks what I think;

shouted at if I do anything wrong;

told to keep quiet;

no training on selling;

workers want to leave;

information is only put on one noticeboard. There may be other examples in context that have not been included here.

TT should consider the following three changes before making a final decision about whether to start exporting its products. Which change will be the most important for the decision? Justify your answer. Relevant points might include: Appreciation in the exchange rate of country P’s currency. Exports more expensive – harder to sell its products abroad – imports cheaper – T-shirts lower costs – could lower prices or increase profit. Increased economic growth in many developed economies. Increased demand – increased sales of T-shirts – may demand alternative more expensive clothes. Increase in the import tariffs in many developed economies. Higher import prices for T-shirts – increased costs – higher price of finished T-shirt – lower demand. Knowledge/Analysis/Evaluation – award up to 10 marks using the levels-based mark scheme below. Knowledge/Analysis/ Evaluation Level 3 At least 2 × Level 2 + 9–10 marks for well justified conclusion as to which change will be the most important compared to the other changes. 7–8 marks for some limited judgement shown in conclusion as to which change will be most important. Level 2 4–6 marks Discussion of advantages and/or disadvantages of each change. Level 1 1–3 marks Outline of advantages and/or disadvantages of each change. Level 1 – 1 mark for each L1 statement (max of 3 marks) e.g. appreciation of currency will lead to higher export prices, economic growth will lead to increased sales of T shirts, increased import tariffs will make T shirt prices higher. Level 2 – 1 × L2 explanation can gain 4 marks and a further mark can be awarded for each additional L2 explanation (max 6 marks) e.g. Appreciation in the currency will lead to higher export prices which may lead to a fall in demand for the T-shirts. This will make it harder to sell in this market and consumers may switch to home produced goods that now appear cheaper. (L2) Level 3 – For L3 to be awarded there needs to be at least two L2 marks awarded and then a conclusion of which change will be most important. Award up to 2 additional marks for relevant application. Possible application marks: Buys ready-made plain white T-shirts;

prints designs on T shirts;

T-shirts imported from country Q, a developing country;

sold to small retailers;

expand the company;

exporting T-shirts;

sells online;

sell directly to large retailers;

use an agent or a joint venture. There may be other examples in context that have not been included here.