Supply chain management

Which of the following is an advantage of job production?

Which of the following pairs of legal structures both benefit from limited liability?

Which of the following is an economic influence on businesses?

Which of the following is a method of digital communication?

Which of the following is the formula for average unit costs?

Which of the following describes the lean production technique of just-in-time (JIT)?

Identify two factors a business may consider when choosing a supplier.

Explain one reason why a person might want to become an entrepreneur.

Explain one reason why the training of current employees may be needed.

Explain one disadvantage to a business of decentralisation.

Explain what is meant by opportunity cost for a business.

State and describe two documents which may be produced during the recruitment and selection process of employees.

Item C: Charlie Paul

State one method of good customer service.

Using Item C, explain one way in which CP focuses on sustainability.

The shopping centres that CP operates in are very busy. CP offers customers free services, such as gift wrapping and beauty demonstrations.

Analyse how CP might benefit from good customer service.

Item D: Charlie Paul

Employees receive 15% commission on the sale of extras.

Using Table 1, calculate the average daily commission paid by CP on key rings.

Show your workings.

Using Item D, calculate the daily wage costs of operating the Santa’s Grotto.

Show your workings.

The commission on extras is shared between all employees of the Grotto.

Explain one benefit of using commission to pay the Grotto employees at each CP store.

CP uses a range of technologies to communicate with customers.

Analyse how CP will benefit from the use of digital technology.

Item E: Charlie Paul

Increasing competition from online retailers is reducing CP’s sales. A large amount of cash is needed to develop its website. CP is considering two options.

1. Converting to a Plc.

2. Reducing the cost of supplies.

Analyse the effect of each of these two options for CP.

Evaluate which of these two options will have the biggest impact on CP’s ability to maintain its current objectives.

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.

Which of the following characteristics of an entrepreneur is the ability to develop new ideas/products?

Which of the following describes the chain of command?

Which of the following is a definition of a part time contract of employment?

Which of the following is the formula for total costs?

Which of the following is the next stage in the selection process after the closing date for job applications?

Enterprise is one of the four factors of production. Which of the following is a definition of enterprise?

State two financial methods of motivation.

Explain one method a business may use to expand.

Explain one benefit of job production to a business.

Explain one benefit to shareholders of limited liability.

Identify two stages of the process of procurement.

State and explain two employment laws.

Item C: Style the Chic (STC)

Using Item C, explain one benefit to Eve of being a sole trader.

Using the data in Table 1, explain one way in which competition affects STC.

Eve makes all the major decisions in the business.

Analyse one effect of Eve’s style of management on staff motivation.

Item D: Style the Chic

Identify one way a business’ production of goods and services could be sustainable.

Using data from Table 2, describe how the information indicates STC has experienced growth.

Using Table 2, explain one benefit to STC of its growth.

STC currently uses six suppliers. The amount paid to them is shown in Table 3.

Analyse one benefit to STC of effective supply chain management.

Item E: Style the Chic

STC wants to increase customer loyalty and is considering two options to achieve this.

1. Introduce live chat to the website to improve customer service.

2. Introduce a recycling scheme to improve the ethical behaviour of the business.

Analyse the effect of each of these two options on STC.

Evaluate which of these two options will have the biggest impact on customer loyalty for STC.