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A-LevelBusiness StudiesBusiness Activity and OrganisationMay/June 2020Paper 2 Q230 Marks

2 Market Solution (MS) MS is a public limited company in the tertiary sector. MS advises businesses on elements of the marketing mix. Most of its customers are small businesses who cannot afford their own marketing department. MS designs marketing materials for these businesses to use. Although MS uses computer aided design (CAD), the business is labour intensive. MS employs specialist marketing workers as well as administrative support workers. Table 2.1 shows some data about employees of MS. [Table 2.1: MS employee data] Table 2.1 shows: Specialist marketing workers (Average number of workers in 2019: 40, Payment method: Salary plus bonus, Number of workers who left in 2019: 2, Average pay: High, Main need of the workers: Achievement, Main hygiene factors: Pay, Flexible hours of work, Is a bonus expected in 2020?: Yes) and Administrative support workers (Average number of workers in 2019: 88, Payment method: Performance related pay plus bonus, Number of workers who left in 2019: 11, Average pay: Low, Main need of the workers: Affiliation, Main hygiene factors: Staff restaurant, Holidays, Is a bonus expected in 2020?: No). MS has recently employed Hetti as the new Human Resources Manager. Hetti thinks that the ideas of the motivational theorists are important when managing employees. She is particularly worried about the labour turnover of the administrative support workers. MS has recently taken on a new customer, named Books Outlet (BO). BO has an objective to increase its revenue by targeting a younger market segment. BO has provided MS with the following information about its current marketing mix (see Table 2.2). [Table 2.2: Current marketing mix for BO] Table 2.2 shows: Product (Books aimed at customers who are 30 years and older, Specialist books on many topics – BO is often the only seller in the area), Price (Price skimming), Promotion (Window display, Local newspaper advertising), Place (A retail shop on the main street, Postal sales from a brochure).

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About This A-Level Business Studies Question

This structured question appeared in the Cambridge A-Level Business Studies (9609) May/June 2020 examination, Paper 2 Variant 2. It tests the topic of Business Activity and Organisation and is worth 30 marks.

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