Filltum is the brand name for a chain of vegetarian restaurants. It has 28 restaurants, 16 of which are operated by franchisees. The Managing Director is pleased with its fast rate of growth at a time when many businesses are failing. She said: ‘Having a well-motivated workforce is important to our success. All new employees are given on-the-job training.’ Filltum plans to have 10 more restaurants in the next year. The Managing Director has to decide whether to sell additional franchises or open its own restaurants. What is meant by ‘brand name’? Identify two reasons why a business might fail. Reason 1: Reason 2: Identify and explain two ways in which having a well-motivated workforce can help Filltum achieve success. Way 1: Explanation: Way 2: Explanation: 1 1 Identify and explain two advantages to Filltum of using on-the-job training. Advantage 1: Explanation: Advantage 2: Explanation: Do you think selling more franchises is the best way for Filltum to expand? Justify your answer. [ 1 1

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THEORY

2018

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TFN is a travel business which sells holidays. It has 37 shops and 1000 employees. Last year TFN’s profit increased to $46 million. The Managing Director knows that good customer service has helped maintain customer loyalty. He said: ‘TFN’s managers use ideas from Herzberg’s two-factor theory to help motivate employees. All employees are provided with off-the-job training and each manager has a wide span of control.’ Identify two advantages to a business of maintaining customer loyalty. Advantage 1: Advantage 2: Identify two hygiene factors from Herzberg’s two-factor theory. Hygiene factor 1: Hygiene factor 2: Outline two reasons why profit might be important to TFN. Reason 1: Reason 2: 1 2 Explain one advantage and one disadvantage to TFN of its managers having a wide span of control. Advantage: Explanation: Disadvantage: Explanation: Do you think off-the-job training is the best method of training for a service sector business to use? Justify your answer. 1 2

7115_w23_qp_12

THEORY

2023

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TLA is a large hotel with 200 rooms and 3000 employees. Many of these employees are members of a trade union. The Managing Director is planning to expand the business but is worried about possible diseconomies of scale as TLA grows. The Human Resources Director has been asked to recruit 2 new managers. She knows it is important that all managers use the most appropriate leadership style. All of TLA’s new employees receive induction training. Identify one advantage and one disadvantage to employees of being members of a trade union. Advantage: Disadvantage: Identify one benefit and one limitation of a business using induction training. Benefit: Limitation: Outline one reason why each of the following stages of recruitment might be important for TLA: Job description: Job advertisement: Explain two possible diseconomies of scale as TLA grows. Diseconomy of scale 1: Explanation: Diseconomy of scale 2: Explanation: Do you think the advantages of managers using a democratic leadership style are greater than the disadvantages for a business? Justify your answer.

7115_w24_qp_12

THEORY

2024

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LBM is an online fashion clothing retailer. LBM’s target market is 18-35 year olds. Last year revenue increased by 25% to $600m. The Marketing Director said: ‘All businesses have to satisfy customer needs. Customer service is important which is why all employees receive induction training. LBM offers customers a wider range of products than its competitors. Promotion is through social media networks. Is there any reason to open our own shops?’ LBM plans to add 3500 new styles each week and will need to arrange finance for the additional inventory. What is meant by ‘induction training’? Identify two reasons why it is important for LBM to satisfy customer needs. Reason 1: Reason 2: Identify and explain two problems for LBM of having a wide range of products available to customers. Problem 1: Explanation: Problem 2: Explanation: 1 4 Identify and explain one advantage and one disadvantage to LBM of opening its own shops. Advantage: Explanation: Disadvantage: Explanation: Explain two suitable sources of finance that LBM could use to purchase additional inventory. Recommend which source of finance LBM should use. Justify your answer. [ 1 4

7115_w19_qp_12

THEORY

2019

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Saltan makes a range of cars. The level of inventory is too high so it plans to decrease production at its factory. Employees were told the business needs to reduce the size of its workforce as competition is increasing. The trade union is not happy that 360 of the 1200 skilled full time employees at Saltan will be made redundant. A trade union spokeswoman said: ‘Saltan should reduce the number of hours of every employee rather than reduce the number of jobs.’ Saltan’s Operations Director is considering ways to increase efficiency in the factory. What is meant by a ‘trade union’? Identify two situations (other than increasing competition) when a business might have to reduce the size of its workforce. Situation 1: Situation 2: Identify and explain two possible problems for Saltan of having a high level of inventory. Problem 1: Explanation: Problem 2: Explanation: 1 1 Identify and explain two ways Saltan could improve efficiency. Way 1: Explanation: Way 2: Explanation: Do you think Saltan should reduce the number of working hours for every employee rather than reduce the number of jobs? Justify your answer. [ 1 1

7115_s16_qp_12

THEORY

2016

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NCE manufactures cars in 4 factories using flow production. NCE’s Human Resources Director thinks good induction training helps achieve high productivity. Factory X is its most efficient factory. Last year the size of the new car market fell by 20%. NCE now has to make 400 workers redundant at one of its other factories. ‘I am pleased NCE is a large business’, said the HR Director, ‘I think a small business cannot survive in this competitive market.’ Table 2: NCE operations data for 2014 Number of cars made Number of employees 168 000 What is meant by ‘flow production’? Calculate the output per employee in 2014. Identify and explain two ways in which induction training might benefit NCE. Way 1: Explanation: Way 2: Explanation: Identify and explain two factors that NCE would need to consider in deciding which workers to make redundant. Factor 1: Explanation: Factor 2: Explanation: The HR Director thinks that ‘a small business cannot survive in this competitive market’. Do you agree with this view? Justify your answer.

7115_w15_qp_12

THEORY

2015

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Tebo has recently been made redundant from his job as a car mechanic. He is thinking of setting up his own business. Even though he has no management experience, he knows that managing cash flow will be important to the success of the business. Tebo is considering whether to apply for a FIXIT franchise. This franchise would cost $15 000, which would use all of his savings. FIXIT is a car repair franchise, with 36 franchisees. What is meant by ‘made redundant’? Identify two functions of management that Tebo might have to perform. Function 1: Function 2: Explain why managing cash flow will be important for Tebo’s business. Identify and explain two factors Tebo should consider when deciding where to locate his business. Factor 1: Explanation: Factor 2: Explanation: Do you think that buying a FIXIT franchise is the best way for Tebo to start his business? Justify your answer.

7115_w15_qp_11

THEORY

2015

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MRN is a food retailer. It has 490 shops and 70000 employees. MRN has announced plans to close 80 of its shops. The Human Resources Director said: ‘20% of management jobs will be removed. We want to encourage delegation. MRN will continue to follow legal controls over employment.’ MRN’s directors know it is important that businesses respond to increased competition. Define ‘delegation’. Identify two legal controls over employment. Legal control 1: Legal control 2: Outline two functions of MRN’s shop managers. Function 1: Function 2: [ 1 1 Explain two factors MRN should consider when deciding which shops to close. Factor 1: Explanation: Factor 2: Explanation: Explain two ways a retail business could respond to increased competition. Which would be the best way to use? Justify your answer. 1 1

7115_w23_qp_11

THEORY

2023

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