JNK makes pottery including plates and bowls for the mass market, using batch production. Quality control is important. JNK has 30 unskilled employees, who are all paid the legal minimum wage. JNK uses job enrichment to keep workers motivated. Due to an increase in demand, JNK is planning to replace its old machines with new technology. The Managing Director thinks that some of the low cost materials purchased by JNK are produced using child labour. One of JNK’s competitors has recently introduced a new ethical policy. What is meant by ‘mass market’? What is meant by ‘job enrichment’? Identify and explain two ways in which employees at JNK could be affected by the introduction of new technology. Way 1: Explanation: Way 2: Explanation: 1 1 Identify and explain two ways (other than new technology) that JNK could use to increase output. Way 1: Explanation: Way 2: Explanation: Do you think JNK should become more ethical? Justify your answer. [ 1 1 7115_s19_qp_12 THEORY 2019 Paper 1, Variant 2 View
Natural Care is a company that makes soap. The business always acts in an ethical way. It follows fair trade principles by paying fair prices to its suppliers. It uses a cost plus pricing method when selling its products. Table 2 gives data about the company’s sales of soap and its share of the national market for soap. Table 2 Natural Care Market share of Year sales ($m) Natural Care (%) The Marketing Director of Natural Care wants to introduce a new competitive pricing strategy to help regain market share. She also wants the Board of Directors to think about changing its ethical policy. Calculate the total market sales of soap in 2012. Identify two possible reasons why Natural Care’s market share fell in 2014. Reason 1: Reason 2: Identify and explain two advantages to Natural Care of acting in an ethical way by paying fair prices to its suppliers. Advantage 1: Explanation: Advantage 2: Explanation: Identify and explain two ways in which Natural Care might be affected by changing to a competitive pricing strategy. Way 1: Explanation: Way 2: Explanation: Do you think that customers of products such as soap always benefit from an increase in competition? Justify your answer. 7115_w14_qp_11 THEORY 2014 Paper 1, Variant 1 View