AQA GCSE Business Studies Paper 1: Influences of Operations and HRM on Business Activity June 2024 question paper 8132/1

Which of the following is a benefit to an entrepreneur of operating as a sole trader?

Which of the following is a method of internal recruitment?

Which of the following describes when induction training should take place?

Which of the following is correct for a flat organisational structure?

Which of the following is the most likely effect of a decrease in interest rates?

Which of the following is an example of a fixed cost?

Explain one method of growth used by a business when expanding organically or externally.

Explain why a business uses delayering.

Explain one way a person specification can be used as part of the recruitment process.

Businesses aim to meet the needs and wants of customers. Explain the meaning of the term ‘need’ using an example.

Explain one disadvantage to a business of expanding through external growth.

Land is one of the four factors of production.

Identify and explain two factors of production other than land.

Item A: Luscious Locks by E

Explain one benefit to a business of employing workers on a part-time contract.

Elaine makes all of the decisions in the business. She rarely consults with anyone.

Analyse one drawback for LLE of Elaine’s management style.

The college course would allow John to gain an advanced qualification in the latest hairstyling techniques.

Recommend whether Elaine should allow John to attend the college course. Give reasons for your answer.

Item B: Luscious Locks by E

Explain one benefit of growth to a business.

Elaine ordered 20 organic hair treatments for £300 in total.

Calculate the unit cost of each treatment. Show your workings.

The supplier has offered a 35% discount.

Calculate the total cost of 120 organic hair treatments with this discount. Use your answer to Question 2.5 in your calculation.

Show your workings.

Elaine orders the treatments to arrive just in time for each customer’s appointment.

Recommend whether Elaine should change to just-in-case stock control. Give reasons for your recommendation.

Item C: Bootmills Ltd

State one benefit to a business of providing a high level of customer service.

Explain one benefit to Bootmills Ltd of using total quality management (TQM).

You should use information in Item C in your answer.

Bootmills Ltd recently started using local suppliers of raw materials who have agreed to meet its needs.

Analyse one factor which would have been considered when making the decision to change suppliers.

Item D: Bootmills Ltd

Explain how one financial method of motivation is being used at Bootmills Ltd to motivate employees. You should use the information in Item D in your answer.

Calculate the percentage (%) change in the value of the pound against the value of the euro from December to March.

Use the information in Table 1 in your calculation.

Show your workings.

In Europe, Bootmills Ltd sells boots to retailers for an average of £95. The business plans to maintain this selling price.

Analyse one impact of the falling value of the pound on the profits of Bootmills Ltd.

Item E: Bootmills Ltd

In China, retailers prefer ‘face-to-face’ meetings with the manufacturer. Chinese retailers are prepared to pay a premium price for British brands. The size of the Chinese boot market is $79 billion for sales of all brands.

Retailers in the USA have indicated that they are more likely to buy the product if the price can be reduced to £70. The size of the USA boot market is $99 billion for sales of all brands.

Bootmills Ltd’s directors are considering two options.

Introducing flow production. Boots can be made quickly using a fully automated process. The skilled workforce will be offered jobs elsewhere in the business. There will be an estimated 300 redundancies. Employees have indicated they will strike if this many jobs are lost.

The savings on salaries over 2 years will cover the cost of the new machinery and redundancies. After this, the cost saving can be passed on to customers. The variable costs of production will fall to £20 per pair of boots.

Changing the role of the workforce. Bootmills Ltd currently has 50 employees who deal with sales over the telephone and email. Thirty of these employees could change to being based abroad in countries such as China and the USA. These employees will meet with the local retailers to:

show new designs

take orders

get feedback on the needs and wants of customers in overseas markets.

These employees will be offered a £10 000 pay rise. The directors are confident many of the existing sales team will be interested in working abroad. This should reduce redundancies.

Bootmills Ltd wishes to make its boots more competitive abroad. The directors are considering two options.

1. Introducing flow production.

2. Changing the role of the workforce.

Analyse the effect of each of these two options on Bootmills Ltd.

Evaluate which of these two options will have the bigger impact on Bootmills Ltd competing internationally.