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Cambridge | Business 0450 | S 18 1 1 | 1 hour 30 minutes

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Ben owns a small gardening business, which he started 15 years ago. Ben believes providing a quality service is important to his success. Ben’s business has a number of stakeholder groups including 2 full-time and 4 part-time workers who have all been employed by him for a number of years. Each worker is expected to do any job that Ben orders them to do. All workers are paid an hourly wage rate. They also receive a bonus if customers recommend the business to other people. Ben is always thinking about other ways to improve the motivation of his workers.

4

(a)

What is meant by ‘stakeholder group’?

What is meant by ‘stakeholder group’?

Clear understanding [2]: any group or person with a (direct) interest in the performance / activities of a business

Some understanding [1]: someone affected by a business [1] or anybody inside or outside the business who cares about its operations [1]

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(b)

Identify two possible reasons why Ben’s business has remained small

Reason 1:

Reason 2:

Identify two possible reasons why Ben’s business has remained small.

Award 1 mark per possible reason Points might include:

· personal wishes / owners objectives

· size of market / niche

· lack of finance

avoid diseconomies of scale / communication issues / co-ordination issues

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(c)

Identify and explain two reasons why quality might be important for Ben’s business.

Reason 1:

Explanation:

Reason 2:

Explanation:

Identify and explain two reasons why quality might be important for Ben’s business.

Award 1 mark for each reason identified Award 1 mark for each explanation in context

Points might include:

· help establish loyalty [k] which can help improve his business success [app]

· increase sales / revenue / attract new customers [k] through more recommendations [app]

· improve reputation / brand image [k] for his gardening business [app]

· no need for rework [k]

· able to charge high prices [k]

maybe his USP[k]

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(d)

Identify and explain two advantages to Ben’s business of having part-time workers.

Advantage 1:

Explanation:

Advantage 2:

Explanation:

Identify and explain two advantages to Ben’s business of having part- time workers.

Award 1 mark for each relevant advantage

Award 1 mark for each relevant reference made to this business Award 1 mark for each relevant explanation

Points might include:

· more flexible / help meet demand during busy times [k] can cover when full-time workers not available [app] so work is completed on time [an]

· help retain experienced employees [k] who have worked there for a number of years [app] so reducing his recruitment costs [an]

· can add more skills / experience to business [k] to increase demand [an]

· help attract / easier to find workers [k]

· do not have to pay holiday / sick pay [k]

· may be more motivated [k] so productivity would rise [an]

part-time workers don’t work as many hours [k] Ben pays an hourly wage rate [app] therefore the total wage bill would be lower [an]

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(e)

Explain two ways Ben could improve employee motivation. Recommend which way Ben should choose. Justify your answer.

Explain two ways Ben could improve employee motivation. Recommend which way Ben should choose. Justify your answer.

Award 1 mark for identification of relevant point (s)

Award 1 mark for relevant reference made to this business Award up to 2 marks for relevant development of point(s)

Award up to 2 marks for a justified decision made as to which way Ben should use to improve employee motivation.

Points might include:

· change method of payment / increased rate of pay [k]

· training [k] so feel more valued [an]

· involve workers in decision making [k] so workers feel more important [an] to the gardening business [app]

· change leadership style [k] Ben orders workers to do jobs [app]

· chance for promotion / become full time [k]

· job rotation [k] for the 6 employees [app] so employees are not bored doing the same thing [an]

· job enlargement [k]

· job enrichment [k]

· employee of the month [k] therefore workers feel like their hard work is being recognised [an]

· praise [k] meeting employees esteem needs [an]

· team working / communication [k]

fringe benefits [k]

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