Analyse how two legal changes planned by the new government will impact FWB.

Mark scheme

Marking points from the official mark scheme (Feb/Mar 2023). The mark or mark type is shown in brackets.

1. [1] Definition of the legal environment: acts as both a constraint and an enabler for FWB's activities.
2. [1] Definition of the legal environment: is the set of rules set by government that regulates business activity.
3. [1] Knowledge of impact of legal changes: increased running costs.
4. [1] Knowledge of impact of legal changes: increased capital costs.
5. [1] Knowledge of impact of legal changes: greater difficulty in dismissing employees.
6. [1] Knowledge of impact of legal changes: restrictions on recruitment processes.
7. [1] Knowledge of impact of legal changes: changes to employment practices.
8. [1] Knowledge of impact of legal changes: changes to operations.
9. [1] Knowledge of impact of legal changes: controls on marketing.
10. [1] Knowledge of impact of legal changes: changes to product.
11. [1] Knowledge of impact of legal changes: changes to health and safety.
12. [1] Application to FWB: Minimum wage currently paid to employees could increase.
13. [1] Application to FWB: Review extensive training in health and safety and food hygiene to ensure it meets new standards.
14. [1] Application to FWB: Government plans regarding plastic waste will impact food and drink packaging.
15. [1] Application to FWB: Zero hours contracts used by FWB could be banned.
16. [1] Analysis: Increased costs (e.g., from minimum wage increase) will increase labour costs, which may reduce profit margins.
17. [1] Analysis: Greater difficulty in dismissing employees due to legal rights may constrain managers' decision-making, making it harder to remove unproductive employees, reducing FWB's efficiency and increasing costs.
18. [1] Analysis: Changes to product due to reducing plastic waste may mean FWB needs to change how drinks are served, increasing costs and potentially requiring FWB to increase food prices.
19. [1] Analysis: Changes to operations due to controls on CO2 emissions may increase costs if FWB needs to invest in new vans.
20. [1] Analysis: Changes to employment practices (e.g., increased training) will increase costs and reduce profit, but could also increase employee motivation and productivity (two-sided analysis).
21. [1] Analysis: Further training can improve the quality of employees and make FWB more efficient, improving customer service and avoiding complaints, which may result in increased sales.