0450 Business Studies November 2024 Question paper 11

RSL manufactures paint using flow production. Last year it produced 10 million litres of paint. RSL has 6 managers and 80 employees working in its factory. The managers use different leadership 1 styles. RSL uses email and telephone calls as its methods of internal communication. The Operations Manager wants to understand why some manufacturing businesses are relocating their operations to other countries. Identify two benefits to a business of using flow production. (a) Benefit 1: Benefit 2: [2] Identify two reasons why people work. (b) Reason 1: Reason 2: [2] Outline one advantage of RSL using each of the following methods of internal communication. (c) Email: Telephone calls: [4] , , Explain two leadership styles RSL’s managers might use. (d) Leadership style 1: Explanation: Leadership style 2: Explanation: [6] Explain two factors a manufacturing business should consider when relocating its operations to another country. Which factor is likely to be the most important? Justify your answer. (e) [6] , ,

Mitchell is an entrepreneur. He wants to start up a business selling books. As part of his business plan Mitchell has carried out some market research. An extract is shown in Fig. 2.1. Mitchell will 2 use microfinance as a source of finance. He wants to know whether the opportunities of using ecommerce for a new business are greater than the threats. Chart 1: Type of people reading books Extract from Mitchell’s market research data for 2023 Chart 2: Book sales by type (million) Adults 20% lder people 27% Students 18% Children 35% Electronic books Audio books Paperbacks Hardbacks 60 50 40 30 20 10 0 Fig. 2.1 Define ‘entrepreneur’. (a) [2] Define ‘business plan’. (b) [2] , , Outline one advantage and one disadvantage to Mitchell of using microfinance as a source of finance. (c) Advantage: Disadvantage: [4] Explain how the market research data in Chart 1 and Chart 2 in Fig. 2.1 could help Mitchell when making decisions. (d) Chart 1: Explanation: Chart 2: Explanation: [6] , , Do you think the opportunities of ecommerce for a new business are greater than the threats? Justify your answer. (e) [6] , ,

JTA is a public limited company. It sells holidays in a mass market. The business has 44 shops and 200 employees. The Finance Director is considering ways a business can increase its profit. 3 She has been asked to analyse JTA’s financial performance using ratio analysis. An extract from JTA’s financial statements is shown in Table 3.1. Table 3.1 Extract from JTA’s financial statements for 2023 ($ million) 900 Revenue 100 Profit 800 Capital employed Define ‘capital employed’. (a) [2] Calculate JTA’s return on capital employed (ROCE). Show your working. (b) Working: Final answer: [2] Outline two benefits to JTA of selling in a mass market. (c) Benefit 1: Benefit 2: [4] , , Explain one advantage and one disadvantage of JTA being a public limited company. (d) Advantage: Explanation: Disadvantage: Explanation: [6] Do you think increasing prices is the best way for a business to increase its profit? Justify your answer. (e) [6] , ,

FSW is a multinational company with operations in 6 countries. It manufactures steel for use in the construction industry. Quality assurance is used to ensure quality production. FSW has many 4 stakeholder groups who are interested in its activities. The Managing Director knows FSW’s business creates external costs. She is aware that pressure groups try to influence business decisions. Define ‘external costs’. (a) [2] Identify one objective each of the following stakeholder groups might have: (b) Employees: Customers: [2] Identify four ways a pressure group might try to influence business decisions. (c) Way 1: Way 2: Way 3: Way 4: [4] , , Explain one possible benefit and one possible drawback to a country of having FSW (a multinational company) operating there. (d) Benefit: Explanation: Drawback: Explanation: [6] Do you think quality assurance is the best way for a business to achieve quality production? Justify your answer. (e) [6] , ,