question paper · 2016-10-28 · b. 12.5% c. -11.1% d. 112.5% [1 mark] 03 the formula for...

AS Business

PRACTICE EXAM PAPER

AQA A Level

Question Paper Business 1 Practice Paper (B)

SAM

PLE

Business 1 Practice Paper (B)

SAM

PLE


BUSINESS 1 PRACTICE PAPER (B)1 hour 30 minutes

MaterialsFor this paper you must have: N a calculator.

InstructionsN Use black ink or black ball-point pen. N Fill in the boxes at the bottom of this page.N Answer all questions. N You must answer the questions in the spaces provided.

Do not write outside the box around in eachor on blank pages. N Do all rough work in this answer book.

Cross through any work you do not want to be marked.

InformationN The marks for questions are shown in brackets. N The maximum mark for this paper is 80.

Please write clearly, in block capitals, to allow character computer recognition.

Centre number:

Candidate number: Surname:

Forename(s):

Candidate signature:

AS Business

SAM

PLE

Section A

01 Extrapolation can be defined as:

A. A statistical technique used to establish the strength of a

relationship between two sets of data

B. The introduction of an extra product to a certain

geographical area

C. Using the previous patterns of numerical data in order

to predict values in the future

D. Additional data not considered in the final sample size of research [1 mark]

02 AA market was worth £20million in 2014 and £22.5 million in 2015. Calculate the percentage market growth.

A. 11.1%

B. 12.5%

C. -11.1%

D. 112.5% [1 mark]

03 The formula for calculating break-even output is:

A. Total Costs/Contribution per unit

B. Fixed Costs/Contribution per unit

C. Fixed Costs/Total Contribution [1 mark]

Answer ALL questions in this section


Only one answer per question is allowed.

For each answer completely fill in the circle alongside the appropriate answer.

Correct method: Wrong methods:

If you want to change your answer you must cross out your original answer as shown.

If you wish to return to an answer previously crossed out, ring the answer you now wish to select as shown.

7 3

SAM

PLE

04 Calculate the opening balance for March in the cash flow forecast below:

January (£) February (£) March (£)

cash inflows 1600 1700 1700

cash outflows 1800 1800 1600

net cash flow (£200) (£100)

opening Balance 600

closing Balance

A. £900

B. £500

C. £300

D. £400 [1 mark]

05 The current value of a company calculated by share price x number of outstanding shares is referred to as:

A. Return on investment

B. Market Capitalisation

C. Market Size

D. Dividend [1 mark]

06 Which of the following includes both government and employers in the employment relations process:

A. A campaign by trade unions to increase membership

B. The retail employers association releasing a media statement

C. Workers negotiating with management to introduce flexible working hours

D. The introduction of new occupational health & safety legislation [1 mark]

07 A staff suggestion scheme programme where staff are encouraged to regularly contribute ideas to management

is an example of:

A. Kaizen

B. Centralisation

C. Redeployment

D. Benchmarking [1 mark]


SAM

PLE

08 Which stakeholder is likely to be most affected negatively by the following scenario: A country’s largest coffee

chain, Coffee Express, has managed to find a legal loophole to avoid paying corporation tax in the country.

Coffee Express are by far the largest, most profitable retail chain in the country.

A. Employees

B. Owners

C. Suppliers

D. Government [1 mark]

09 Which of the following isn’t one of Hackman & Oldham’s core job characteristics in the Job Design Model?

A. High quality work performance

B. Skill variety

C. Feedback from job

D. Task significance [1 mark]

10 Which method of matching supply to demand gives firms least control over the quality of their output?

A. Use of part-time staff

B. Producing to order

C. Use of temporary staff

D. Outsourcing [1 mark]

QUESTION 10 IS THE LAST QUESTION IN SECTION A.

Section B starts on the next page


SAM

PLE


Section B

11 Explain one benefit the management of a software manufacturing firm may experience by adopting a

‘subordinate centred leadership’ approach? [4 marks]

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12 The following data applies to a new business:

N Selling Price = £13.00

N Current level of monthly output = 3,100 units

N Variable Cost per unit = £7.50

N Monthly fixed costs = £11,300

Using the data above, calculate the monthly margin of safety for the firm if the variable cost per unit rises

to £8.20. [5 marks]

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SAM

PLE


13 The following data applies to a small business.

2012 2013 2014

Average number of workers employed

320 332 356

Average sick days per worker

2 5 5

output 63,400 61,200 63,480

number of defective items 235 241 268

number of staff leaving the firm

35 42 41

Calculate the labour turnover and labour productivity of the business for 2012. [6 marks]

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14 Analyse one drawback to a manufacturing firm with low market share using only external recruitment to replace

staff that have left the business. [5 marks]

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SAM

PLE

Section C

15 Center Parcs UK

Center Parcs came to the UK in July 1987 when it opened its first Village in Sherwood Forest, Nottinghamshire, offering short break holidays on a year-round basis. More than 27 years later, the name Center Parcs has become synonymous with the provision of an exceptional short break experience in a natural forest location. Center Parcs provide a range of outstanding leisure facilities and more than 200 indoor and outdoor activities, all set within a protected and enhanced woodland environment. With recent trends showing an increase in family short breaks, particularly in the UK, the Center Parcs concept is as relevant today than at any point in its 27 year history in the UK market. The most recent customer satisfaction survey has shown that 96% of respondents ranked their stay at Center Parcs either ‘excellent’ or ‘good’.

Against a backdrop of challenging yet improving economic conditions (unemployment still relatively high and economic growth still at a low rate), CEO Martin Dalby believes that Center Parcs business went from strength to strength; average occupancy was 97.2%, an exceptional level for the leisure and hospitality sector in his opinion.

Due to school holidays (such as half terms, Easter and Summer Holidays) being the busiest periods for Center Parcs, the business look to compete effectively on price and seek to increase revenue through the additional activities which each location provide, such as archery, bike hire and kids clubs. The operating profit margin on average for the holiday industry is 5.7%. The uncertainty of British weather conditions and the affordability of all inclusive package holidays in the sun destinations of Europe still remain one of the biggest threats to Center Parcs year on year.

Extracts from the Annual Review

Year 2013/14 2012/13

occupancy % 97.2 97.2

Percentage of Bookings made online 81 79

sales revenue (£m) 314.6 303.5

employee turnover % 25 23

operating Profit (£m) 20.6 18.6

estimated Price elasticity of Demand 2.3 1.9

Constant refurbishment and redecoration of the facilities (most wood-based) is undertaken each year. To maintain their high standards, Center Parcs have continued their capital investment programme in the existing Villages investing, in total, £39.6 million. In addition, they invested £174.3 million in the construction of the new Woburn Forest location (taking the total to approximately £250 million).

In order to increase sales during off-peak periods, Center Parcs launched an advertisement campaign promoting midweek breaks for £279. These advertisements showed parents and school aged children with small print stating the offer “excludes school holidays”. Complaints were received due to the fact the advertisement were seen to be “irresponsibly” encouraging parents to take their children out of school. The Advertising Standards Agency (ASA), a Government Organisation, requested that the advertisement be removed from TV.



SAM

PLE

15. 1 Analyse the benefits to Center Parcs of achieving consistently high levels of capacity utilisation in their UK

locations. [9 marks]

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SAM

PLE


15. 2 To what extent is price the most important element of Center Parcs’ marketing mix? Justify your view?

[16 marks]

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SAM

PLE

16 New Look

Founded in 1969 by Tom Singh, New Look is a UK fashion retailer with significant presence across the world

with over 1,000 locations globally. Operating within the highly competitive but lucrative high street fashion

market, New Look account for 6% of all clothing sales in the UK. Its main competitors include Topshop and

Dorothy Perkins who use celebrity endorsement to promote their range of women’s clothing. New Look believe

that their strengths lie in being able to react quickly to the latest trends and covering all fashion needs of the

everyday consumer. With 800 new products uploaded online every week, New Look aim to ensure that there’s

something new to excite customers each time they visit the website. New Look have a workplace approach

which is designed to ensure that employees are committed to the organisation’s goals and values.

“All of our people live and breathe the New Look brand and we strive to put our customers at the heart of

everything we do. Together we share the same vision of becoming “the chosen brand for an inspiring accessible

fashion experience”. To achieve this we all stand by our brand values; keep it simple, be brave, think customer,

act with pace and take responsibility. That’s the New Look way. (www.newlookgroup.com/who-we-are/our-

people)

As well as refitting its UK stores, the retailer has revamped its website and created apps for mobile phones

and tablets. Efforts to generate social media buzz have helped it notch up more than 2.9m likes on Facebook,

while 2.7 million people a week visit its website. Employees are encouraged to tweet about the latest in store

promotions and drive interest through the social media platform. Awards are given out to employees who are

seen to embody the core values of the business both during the working day and away from it.

New Look are currently in the process of developing new product lines and improving on their current product

portfolio. These include the introduction of more menswear and new product areas such as cosmetics as well

as items at the cheaper and more expensive ends of the spectrum. For example, two years ago New Look only

sold jeans priced between £12.99 and £22.99; now prices range from £7.99 to nearly £40, helping to broaden

the brand’s appeal. There has been a step up in expansion plans with China and segmentation in this manner

is encouraging for the business. One source from New Look commented: “There are lots of mid-market brands

charging high prices in China. We came in with strong, good fashion at affordable prices and Chinese consumers

love it.” Recent plans to introduce separate store entrances for male and female customers has generated

significant media attention with opinions split on whether this will prove successful in their stores when it is rolled

out this summer.


SAM

PLE


16.1 Analyse the benefits of New Look’s HR strategy of employment engagement. [9 marks]

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SAM

PLE


16.2 To what extent will the market segmentation strategies being adopted by New Look be successful?

Justify your view. [16 marks]

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SAM

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AS Business

PRACTICE EXAM PAPER

AQA A Level

Question Paper Business 2 Practice Paper (B)

SAM

PLE

AS Business 2 Paper 2 Practice Paper (B)

SAM

PLE

AS Business 2 Paper 2 Practice Paper (B) Page 3

BUSINESS 2 PRACTICE PAPER (B)1 hour 30 minutes

MaterialsFor this paper you must have: N a calculator.

InstructionsN Use black ink or black ball-point pen. N Fill in the boxes at the bottom of this page.N Answer all questions. N You must answer the questions in the spaces provided.

Do not write outside the box around in eachor on blank pages. N Do all rough work in this answer book.

Cross through any work you do not want to be marked.

InformationN The marks for questions are shown in brackets. N The maximum mark for this paper is 80.

Please write clearly, in block capitals, to allow character computer recognition.

Centre number:

Candidate number: Surname:

Forename(s):

Candidate signature:

AS Business

SAM

PLE

Read the case study in the insert booklet and then answer the questions

01 Using information in table 2, calculate the total contribution for Regan Lewis in 2014. [3 marks]

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02 Using the data provided in the case study and table 1, calculate the daily average capacity utilisation of the

new men’s only barber shop which has opened in Sheffield city centre. [3 marks]

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Page 4 AS Business 2 Paper 2 Practice Paper (B)

SAM

PLE


03 Explain one drawback of Regan Lewis using secondary market research when devising their marketing

strategy. [4 marks]

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SAM

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04 Analyse the benefits of Regan Lewis using solely on-the-job training for new staff employed. [9 marks]

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SAM

PLE


05 Analyse the possible ways in which Regan Lewis can improve its cash flow position. [9 marks]

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SAM

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06 To what extent do you think that Regan Lewis’ current human resource strategy is effective?

Justify your view. [16 marks]

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SAM

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07 To what extent do you believe that the systems of quality assurance introduced by Chris Lewis will have long-

term benefits to Regan Lewis? Justify your view. [16 marks]

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SAM

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08 Jonathan Regan believes that the key to the success of Regan Lewis is the decision making that is made

by management in this current growth phase of the business. To what extent is the external environment the

biggest influence on a business’s decision making? [20 marks]

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AS Business

PRACTICE EXAM PAPER

AQA A Level

Mark Scheme Business 2 Practice Paper (B)

SAM

PLE

Business 2 Practice Paper (B)MARK SCHEME

Page 2 Business 2 Practice Paper (B)

Marks for this question: AO1 = 1 and AO2 = 2

Examples of how the assessment objectives might be met in this question include: N Demonstrate knowledge and understanding of total contribution (AO1). N Be applied to the context of Regan Lewis and the data provided (AO2).

Answer = £7,353,560*

Total Contribution – Fixed Costs = Profit (1 Mark) Total Contribution - 6,890,000 = 463,560 (1 Mark)Total Contribution = 463,560 + 6,890,000Total Contribution = 7,353,560 (1 Mark)

*Due to no figures on variable costs, output or revenue given, the above method is the only way of calculating Total Contribution

Q1 Using information in table 2, calculate the total contribution for Regan Lewis in 2014. [3 marks]


Examples of how the assessment objectives might be met in this question include: N Demonstrate knowledge and understanding of capacity utilisation (AO1). N Be applied to the context of Regan Lewis and the data provided (AO2).

Answer: 31.25%

Capacity Utilisation = Current Level of output x 100 (1 Mark) Maximum possible output

Max Possible output = 3 full time stylists x 16 hair appointments each = 48 appointments (1 Mark)

Current level of output = 15 (see Table 1) 15 x 100 = 31.25% (1 Mark) 48

Q2 Using the data provided in the case study, calculate the daily average capacity utilisation of the new men’s only barber shop which has opened in Sheffield city centre. [3 marks]

SAM

PLE


Business 2 Practice Paper (B) Page 3


Level The candidate will typically demonstrate Marks

3 Provide a response that is well explained using knowledge and understanding and is applied to the context.

4

2 Provide a reasonable explanation using knowledge and understanding and with some application to the context.

2 – 3

1 Demonstrate some knowledge and understanding but the explanation is limited and lacking application to the context

1

Examples of how the assessment objectives might be met in this question include: N Demonstrate knowledge and understanding of relevant issues such as the secondary market research (AO1). N Be applied to the context of Regan Lewis (AO2).

Possible answers may include:N Secondary market research involves researching a particular market using data that already exists. N Drawbacks could be that a lot of information found through secondary sources may be irrelevant and it can take

time to find the information that most closely links your chosen market. (evident through Jonathan’s use of internet research)

N Secondary market research may contain data which is out of date and no longer relevant (such as the use of census information from 2011 which is three year earlier)

N Secondary information doesn’t usually contain sufficient detail on niche markets and it can be argued that Regan Lewis operate in a market whereby customers have particular tastes.

Q3 Explain one drawback of Regan Lewis using secondary market research when devising their marketing strategy. [4 marks]

SAM

PLE

AQA A Level Business AS (Year 1)SPECIMEn PAPERS


Marks for this question: AO1 = 3, AO2 = 3 and AO3 = 3


3 A good response overall that focuses on many of the demands of the question Provides an answer to the question set that: N demonstrates a depth and range of knowledge and understanding of issues in the

question. N demonstrates analysis which is well developed and is applied effectively to the context.

7 – 9

2 A reasonable response overall that focuses on some of the demands of the question

Provides an answer to the question set that: N demonstrates a limited knowledge and understanding of a range of issues in the ques-

tion or a good knowledge and understanding of relatively few issues in the question. N demonstrates analysis which is developed and is applied to the context.

4 – 6

1 A limited response overall with little focus on the demands of the question

Provides an answer to the question set that: N demonstrates a limited range and depth of knowledge and understanding of issues in

the question. N demonstrates analysis with little development and with mainly descriptive application

to the context.

1 – 3

Examples of how the assessment objectives might be met in this question include: N Demonstrate knowledge and understanding of relevant issues such as on-the-job training (AO1)N Be applied to the context of Regan Lewis (AO2). N Analyse the possible impact of using on-the-job training for Regan Lewis staff (AO3).

Possible answers may include:N On-the-job training is where an employee learns a job by seeing how it is carried out by an experienced employee. N Significant cost savings can be made by using solely on-the-job training as the new employees are not sent away on

courses or seminars which can cost the business moneyN This is particularly significant since Jonathan believes that costs must be kept to a minimum so that Regan Lewis can

compete effectively on price in what is a highly competitive marketN Learning from experienced stylists in each branch can ensure there is a consistency to the service offered by Regan

Lewis. N Regan Lewis believe that staff are the most important element of the marketing mixN No loss of output occurs while staff are training as they can contribute to the output of each salon by completing

appointments under the guidance of another member of staff

Q4 Analyse the benefits of Regan Lewis using solely on-the-job training for new staff employed. [9 marks]

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Marks for this question: AO1 = 3, AO2 = 3 and AO3 = 3


3 A good response overall that focuses on many of the demands of the question Provides an answer to the question set that: N demonstrates a depth and range of knowledge and understanding of issues in the

question. N demonstrates analysis which is well developed and is applied effectively to the

context.

7 – 9


Provides an answer to the question set that: N demonstrates a limited knowledge and understanding of a range of issues in the

question or a good knowledge and understanding of relatively few issues in the question.

N demonstrates analysis which is developed and is applied to the context.

4 – 6


Provides an answer to the question set that: N demonstrates a limited range and depth of knowledge and understanding of issues in

the question. N demonstrates analysis with little development and with mainly descriptive application

to the context.

1 – 3

Examples of how the assessment objectives might be met in this question include: N Demonstrate knowledge and understanding of relevant issues such as improving cash flow (AO1)N Be applied to the context of Regan Lewis (AO2). N Analyse the possible impact of solving cash flow problems for Regan Lewis (AO3).

Possible answers may include:N Cash flow is the flow of money into and out of a business over a period of timeN Regan Lewis’ cash balance has worsened between 2013 and 2014 (see table 2)N This is due to a number of reasons including: Offering trade credit for hair services during University Fashion Week and

also the poor initial performance of the Men’s only salon in Sheffield. N One way to improve the cash flow position of the business may be to use short term sources of finance such as an

overdraft.

Q5 Analyse the possible ways in which Regan Lewis can improve its cash flow position. [9 marks]

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Marks for this question: AO1 = 4, AO2 = 2, AO3 = 4 and AO4 = 6

Q6 To what extent do you think that Regan Lewis’ current human resource strategy is effective? Justify your view. [16 marks]

Level The candidate will typically demonstrate:

4 An excellent response overall that is fully focused on the key demands of the question

Provides an answer to the question set that:N demonstrates a depth and range of knowledge and understanding that is precise and

well selected in relation to issues in the questionN demonstrates analysis throughout which is well developed, is applied effectively to

the context and considers a balanced range of issues in the questionN makes judgements or provides solutions which are built effectively on analysis, show

balance and have a clear focus on the question as whole throughout

13 – 16

3 A good response overall that focuses on many of the demands of the question

Provides an answer to the question set that:N demonstrates a depth and range of knowledge and understanding of the issues in

the question N demonstrates analysis which is well developed, applied effectively to the context and

considers a range of issues in the questionN makes judgements or provides solutions which are built on analysis, show balance

and address the question as a whole.

9 – 12

N Interest is only paid on the amount of overdraft which is used and currently Regan Lewis have very little debt from banks (see second paragraph)

N This is a useful form of finance when Regan Lewis are expecting an inflow of cash which is expected through the services offered to Universities during fashion week.

N While initial sales in the new salon are low, an overdraft may assist Regan Lewis in paying for utilities and supplies. N Regan Lewis could also use debt factoring services to reclaim the money owed from the University Fashion Week

committees. N They wouldn’t reclaim all of the money owed (about 85-90%) however, an immediate inflow of cash would improve

their cash balance in 2014.N Regan Lewis could negotiate improved trade credit with their suppliers (of hair products, electricity etc). N With the established nature of the brand and its high street presence, it should be able to delay outflows of cash

through this manner while waiting for inflows from its customers.

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Examples of how the assessment objectives might be met in this question include: N Demonstrate knowledge and understanding of relevant issues such as the HR strategies (AO1). N Be applied to the context of Regan Lewis (AO2). N Analyse the possible impact of the HR strategy chosen on the success of Regan Lewis (AO3). N Evaluate qualitative and quantitative information to make an informed judgement on whether the HR strategy at

Regan Lewis is effective (AO4).

Possible answers may include:Yes, the current HR strategy is effective because:N New stylists feel empowered and this can motivate staff and increase job satisfactionN New stylists are given responsibility/experience in dealing with the University Fashion Week clientsN Experienced members of staff mentor new stylists and this can help fulfil staff self-actualisation needs (Maslow)N HR strategy of treating staff as the main element of the marketing mix has resulted in labour turnover decreasing

(see table 1) and this figure is below the industry averageN Mentoring scheme has resulted in significant cost savings as the training budget of Regan Lewis is also below the

industry average N This maybe one of the reasons why profit for the firm has increased from 2013-2014. N Allowing the new staff to spend work placements at different branches broadens their skill base and level of

expertise working with different clients.

No, the current HR strategy isn’t effective because:N Mentoring of new stylists requires time and the willingness of existing staff to participate. N Staff have commented on appointments not being completed on time and this is evident with the data from table

2 showing % of hair appointments completed on time being below the industry averageN Hair appointments not running on time can affect the reputation of the business and maybe one of the reasons

Level The candidate will typically demonstrate:


Provides an answer to the question set that:N demonstrates a limited knowledge and understanding of a range of issues in the

question or a good knowledge and understanding of relatively few issues in the questionN demonstrates analysis which is well developed, applied to the context and considers

some of the issues in the questionN makes judgements or provides solutions which are built on analysis, but lack balance

and are not fully focused on the question as a whole

5 – 8


Provides an answer to the question set thatN demonstrates a limited range and depth of knowledge and understanding of issues

in the questionN demonstrates analysis with little development, mainly descriptive application to the

context and considers a limited number of issues in the questionN makes judgements or proposes solutions which have limited links to analysis or

limited focus on the question as a whole

1 – 4

SAM

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Level The candidate will typically demonstrate: Marks

4 An excellent response overall that is fully focused on the key demands of the question Provides an answer to the question set that:N demonstrates a depth and range of knowledge and understanding that is

precise and well selected in relation to issues in the question. N demonstrates analysis throughout which is well developed, is applied

effectively to the context and considers a balanced range of the issues in the question.

N makes judgements or provides solutions which are built effectively on analysis, show balance and have a clear focus on the question as whole throughout.

13 – 16


Provides an answer to the question set that:N demonstrates a depth and range of knowledge and understanding of issues in

the question. N demonstrates analysis which is well developed, applied effectively to the con-

text and considers a range of issues in the question. N makes judgements or provides solutions which are built on analysis, show bal-

ance and address the question as a whole.

9 – 12

Q7 To what extent do you believe that the systems of quality assurance introduced by Chris Lewis will have long-term benefits to Regan Lewis? Justify your view. [16 marks]

why the new Sheffield Salon is struggling to gain sales.N Occasional errors have been made by new stylists and this can again impact on the reputation of Regan LewisN The personal vision of the owners is to deliver quality and consistency to every client and this may be impacted

by providing new staff with too much responsibility without the necessary experienceN The unwillingness of the firm to pay for additional training (perhaps off-the-job training) may have contributed to

the firm losing market share in 2014

Evaluation:N Overall, it appears that Regan Lewis’ HR strategy is proving effective as the main quantitative indicators of profit

and staff turnover are favourableN Short-term implementation of empowerment can have issues whereby staff may not have the experience N However, long term it can result in more motivated staff who remain with the company and deliver a consistent

level of service to the customer. N The extent to which it works depends on the willingness of the experienced staff to embrace their mentoring roleN There is no mention of additional payments to staff for this added responsibility which is a cause for concern.

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N demonstrates analysis which is developed, applied to the context and considers some of the issues in the question.

N makes judgements or provides solutions which are built on analysis, but lack balance and are not fully focused on the question as a whole.

5 – 8


Provides an answer to the question set that: N demonstrates a limited range and depth of knowledge and understanding of

issues in the question. N demonstrates analysis with little development, mainly descriptive application to

the context and considers a limited number of issues in the question. N makes judgements or proposes solutions which have limited links to analysis or

limited focus on the question as a whole.

1 – 4

Examples of how the assessment objectives might be met in this question include: N Demonstrate knowledge and understanding of relevant issues such as Quality Assurance (AO1). N Be applied to the context of Regan Lewis (AO2). N Analyse the possible impact of Quality Assurance on the long term success of Regan Lewis (AO3). N Evaluate qualitative and quantitative information to make an informed judgement on whether the Quality Assurance

will benefit Regan Lewis in the long term (AO4).

Possible answers may include:Quality assurance is a system that aims to achieve or improve quality by organising every process to get the process right first time and prevent mistakes ever happening.

Yes, Quality assurance will have long term benefits because:N The use of quality circles will enable staff to discuss performance and share good practiceN Quality circles can ensure a consistent delivery of service which both Chris and Jonathan consider their personal

philosophyN The on-the-job training allows new stylists to benchmark against the work of experienced staffN With all staff responsible for quality, there should be a higher and more consistent level of qualityN This will lead to repeat service in the long term and a trend of rising profits which has been already started to occur

No, Quality assurance may not achieve long term benefits because:N The owners have conflicting views on how to increase sales – Chris believes in Quality assurance techniques

however it appears Jonathan view these as time consuming and prevent the salons from increasing their number of appointments.

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5 An excellent response overall that is fully focused on the key demands of the question Provides an answer to the question set that:N demonstrates a depth and range of knowledge and understanding that is

precise and well selected in relation to issues in the question. N demonstrates analysis throughout which is well developed, is applied

effectively to the context and considers a balanced range of the issues in the question.

N makes judgements or provides solutions which are built effectively on analysis, show balance and have a clear focus on the question as whole throughout.

17 – 20


Provides an answer to the question set that:N demonstrates a depth and range of knowledge and understanding of issues in

the question. N demonstrates analysis which is well developed, applied effectively to the

context and considers a range of issues in the question. N makes judgements or provides solutions which are built on analysis, show

balance and address the question as a whole.

13 – 16

Q8 Jonathan Regan believes that the key to the success of Regan Lewis is the decision making that is made by management in this current growth phase of the business. To what extent is the external environment

the biggest influence on a business’s decision making? [20 marks]

N Long term benefits may not be realised as over run appointments could impact on the reputation of the business and result in customers going to other rival salons

N There may be teething problems as employees adapt to new roles and responsibilitiesN An effective system of quality assurance involves all employees in the business and the training and new systems will

take time to complete.

Evaluation:N Overall, the quality assurance techniques introduced by Chris should bring long term benefits to the business such as

improved quality of service and consistency of service deliveryN The conflicting views of his partner, Jonathan, is a concern and could prevent the techniques being continued long

term if they impact on sales. N Kaizen culture is proven to motivate staff and this can create a long term culture of continuous improvement.

SAM

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Notes





N demonstrates analysis which is developed, applied to the context and considers some of the issues in the question.

N makes judgements or provides solutions which are built on analysis, but lack balance and are not fully focused on the question as a whole.

9 – 12


Provides an answer to the question set that: N demonstrates a limited range and depth of knowledge and understanding of

issues in the question. N demonstrates analysis with little development, mainly descriptive application to

the context and considers a limited number of issues in the question. N makes judgements or proposes solutions which have limited links to analysis or

limited focus on the question as a whole.

5 – 8

1 A weak response overall lacking focus on the demands of the question

Provides an answer to the question set that: N demonstrates isolated or imprecise knowledge and understanding. N demonstrates undeveloped analysis with descriptive application to the context

and lacking focus on the question. N makes judgements or proposes solutions based on assertions

1 – 4

Examples of how the assessment objectives might be met in this question include: N Demonstrate knowledge and understanding of relevant issues such as influences on decision making (AO1). N Be applied to the context of Regan Lewis and is focused on decision making (AO2). N Analyse the possible impact of various influences on decision making in business (AO3). N Evaluate qualitative and quantitative information to make an informed judgement on whether the external environment

is the biggest influence on a businesses’ decision making. (AO4).

Possible answers may include:Yes, the external environment is the biggest influence on decision making because:N Regan Lewis operate in a market which has become more price elastic (see Table 2), due to more market becoming

more competitive N This would explain the fall in market share experienced by Regan Lewis (see Table 2)N Cost minimisation decisions by management (only conducting secondary market research and using on-the-job

training) influenced by this fall in market share and need to increase profits.

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N The decline in market share (due to competitor’s actions) has led to the decision to seek other growth areas for sales (opening new men’s only salons & targeting University Fashion Weeks).

No, there are other influences on the decision making because:N The objectives of the business to deliver quality and exceptional service are a bigger influence on the decision making

of the businessN This is a personal philosophy of both owners and has resulted in the implementation of quality circles and sharing of

good practice (through mentoring scheme)N The smaller training budget of the business in comparison to the industry average is an influence as it means Regan

Lewis must find cost effective ways of delivering quality service and boosting the reputation of the business

Evaluation:N In a price elastic market such as hairdressing, the external environment is a significant influence on decision makingN This is due to hair appointments being an affordable luxury so Regan Lewis’ decision making is hugely affected by

changes outside the control of the businessN Although the owners personal objectives are to deliver quality, it can be argued this would influence decision making

in any businessN If the external environment is constantly changing, then it can become a more significant influence on the short to

medium term strategic thinking of the owners.

Notes

SAM

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question paper · 2016-10-28 · b. 12.5% c. -11.1% d. 112.5% [1 mark] 03 the formula for...

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