PP is a private limited company that grows and sells plants in pots. PP has 12 large shops in country Q and uses a variety of promotion methods. The shops are located in the countryside and PP owns large fields near each shop where the plants are grown. The business is split into two divisions: growing and retail. Table 1.1 shows some human resource data about the divisions. Table 1.1: Human resource data about PP's divisions | | Growing | Retail | |---|---|---| | Average workforce for the year | 450 | 120 | | Number of employees who left in 2023 | 100 | 14 | | Trade union membership | 100% | 25% | | Payment methods | Salary and piece rate | Salary and commission | PP's plants are all sold in plastic or clay pots. The manufacture of these pots is outsourced between two businesses. • Clay Containers (CC) manufactures clay pots in one size and one colour using flow production. CC is based in country Q. PP would like a larger variety of pots, but CC does not want to pay the capital expenditure that this would require. CC has a lead time of three days for PP's pots. • Fantastic Flexible (FF) manufactures plastic pots in a large factory in country S. The use of mass customisation means that it can produce any size and colour of pot. The lead time is one month for PP's pots.

Mark scheme

Marking points from the official mark scheme (Oct/Nov 2024). The mark or mark type is shown in brackets.

1. [1] (a)(i) Indicative content: Promotion methods: advertising/advertisement; sales; direct; digital; packaging; branding. Accept only the answers above. Do not accept examples of a method (i.e. social media or social media promotion), unless the method is specified (i.e. social media advertising). If more than one answer is given, only mark the first, reading from top left to bottom right.
2. [1] (a)(ii) A01 Knowledge and understanding: Definition of capital expenditure: the purchase of non-current assets that are expected to last for more than one year, such as buildings and machinery.
3. [1] (a)(ii) A01 Knowledge and understanding: Knowledge of business expenditure may include: Purchasing.
4. [1] (a)(ii) A01 Knowledge and understanding: Knowledge of business expenditure may include: Buying.
5. [1] (a)(ii) A01 Knowledge and understanding: Knowledge of business expenditure may include: Spending money on.
6. [1] (a)(ii) A01 Knowledge and understanding: Knowledge of business expenditure may include: Investing in.
7. [1] (a)(ii) AO2 Application: Explanation of capital expenditure may include: Non-current assets.
8. [1] (a)(ii) AO2 Application: Explanation of capital expenditure may include: Fixed assets.
9. [1] (a)(ii) AO2 Application: Explanation of capital expenditure may include: Assets expected to last for more than a year/12 months.
10. [1] (a)(ii) Context applied to capital expenditure way, including: Any example of capital expenditure, including: Machinery.
11. [1] (a)(ii) Context applied to capital expenditure way, including: Any example of capital expenditure, including: Property.
12. [1] (a)(ii) Context applied to capital expenditure way, including: Any example of capital expenditure, including: Factories.
13. [1] (b)(i) Formula: Number of employees who left a business within a time period / Total number of employees in a business × 100 (1)
14. [1] (b)(i) Calculation: 100+14 / 450+120 × 100 (1) OR 114 / 570 × 100 (1)
15. [1] (b)(i) Answer: = 20% (3). If the candidate calculates each division's labour turnover, award one mark for each correct answer, to a maximum of two marks in total. 100 / 450 × 100 = 22.22% (1) (accept 22.2 (recurring*), 22.2 and 22 i.e. any correct rounding); 14 / 120 × 100 = 11.67% (1) (accept 11.66 (recurring*), 11.67, 11.7 or 12 – i.e. any correct rounding). Do not accept 11.6 or 11.66 (incorrect rounding). Answer of 0.2 should be awarded 2 marks with working. A recurring number can be shown as a dot above the recurring number i.e. 11.6 or three dots after the recurring number i.e. 22.2.
16. [1] (b)(ii) A01 Knowledge and understanding: Knowledge of trade union involvement (max 1 mark), including: Positive, including: collective bargaining.
17. [1] (b)(ii) A01 Knowledge and understanding: Knowledge of trade union involvement (max 1 mark), including: Positive, including: job security.
18. [1] (b)(ii) A01 Knowledge and understanding: Knowledge of trade union involvement (max 1 mark), including: Positive, including: higher wages.
19. [1] (b)(ii) A01 Knowledge and understanding: Knowledge of trade union involvement (max 1 mark), including: Positive, including: increased employee welfare.
20. [1] (b)(ii) A01 Knowledge and understanding: Knowledge of trade union involvement (max 1 mark), including: Positive, including: better working conditions.
21. [1] (b)(ii) A01 Knowledge and understanding: Knowledge of trade union involvement (max 1 mark), including: Positive, including: communication between employers and employees.
22. [1] (b)(ii) A01 Knowledge and understanding: Knowledge of trade union involvement (max 1 mark), including: Negative, including: industrial action (strikes, work to rule etc.).
23. [1] (b)(ii) A01 Knowledge and understanding: Knowledge of trade union involvement (max 1 mark), including: Negative, including: loss of productive time.
24. [1] (b)(ii) A01 Knowledge and understanding: Knowledge of trade union involvement (max 1 mark), including: Negative, including: increased costs.
25. [1] (b)(ii) AO2 Application: Explanation of why Trade Union involvement will have an impact on PP (max 1 mark), including: collective bargaining; may mean higher wages for employees.
26. [1] (b)(ii) AO2 Application: Explanation of why Trade Union involvement will have an impact on PP (max 1 mark), including: job security; workers are less likely to leave.
27. [1] (b)(ii) AO2 Application: Explanation of why Trade Union involvement will have an impact on PP (max 1 mark), including: higher wages; avoid a strike.
28. [1] (b)(ii) Context applied to an impact of trade union involvement at PP (max 1 mark), including: The growing division has 100% trade union membership – which may mean more impacts (positive and negative).
29. [1] (b)(ii) Context applied to an impact of trade union involvement at PP (max 1 mark), including: The retail division has only 25% trade union membership – which may mean employees do not share the same impacts (positive and negative).
30. [1] (b)(ii) Context applied to an impact of trade union involvement at PP (max 1 mark), including: 450 employees from the growing division are trade union members – but only 30 employees from the retail division are trade union members.
31. [1] (b)(ii) Context applied to an impact of trade union involvement at PP (max 1 mark), including: In total 480 employees are trade union members – which is 84% (rounded) of the entire workforce.
32. [1] (b)(ii) Context applied to an impact of trade union involvement at PP (max 1 mark), including: The salary for the growing division may be higher – than the salary for the retail division.
33. [1] (b)(ii) Context applied to an impact of trade union involvement at PP (max 1 mark), including: PP is a private limited company.
34. [1] (b)(ii) Context applied to an impact of trade union involvement at PP (max 1 mark), including: 12 large shops in in countryside within country Q with fields near the shops.
35. [1] (b)(ii) Context applied to an impact of trade union involvement at PP (max 1 mark), including: Outsourcing used in retail division, not (as far as is known) in farming division. Accept all valid responses.
36. [1] (c) A01 Knowledge of an advantage of outsourcing (max 1 mark) including: Improved focus on the core business activities.
37. [1] (c) A01 Knowledge of an advantage of outsourcing (max 1 mark) including: Increased efficiency.
38. [1] (c) A01 Knowledge of an advantage of outsourcing (max 1 mark) including: Controlling/low costs.
39. [1] (c) A01 Knowledge of an advantage of outsourcing (max 1 mark) including: Increased capacity.
40. [1] (c) A01 Knowledge of an advantage of outsourcing (max 1 mark) including: Improve quality.
41. [1] (c) A01 Knowledge of an advantage of outsourcing (max 1 mark) including: Access to specific skills.
42. [1] (c) A01 Knowledge of a disadvantage of outsourcing (max 1 mark) including: Loss of control over production process.
43. [1] (c) A01 Knowledge of a disadvantage of outsourcing (max 1 mark) including: Lack of control of quality.
44. [1] (c) A01 Knowledge of a disadvantage of outsourcing (max 1 mark) including: Reliance on an external stakeholder.
45. [1] (c) A01 Knowledge of a disadvantage of outsourcing (max 1 mark) including: Lack of flexibility.
46. [1] (c) A01 Knowledge of a disadvantage of outsourcing (max 1 mark) including: Delays/extra transportation may be inevitable.
47. [1] (c) AO2 Context applied to an advantage (max 1 mark) and disadvantage (max 1 mark) of outsourcing to PP, including: PP is a private limited company – limited liability, finance etc.
48. [1] (c) AO2 Context applied to an advantage (max 1 mark) and disadvantage (max 1 mark) of outsourcing to PP, including: Sells potted plants in ceramic or clay pots – integral to product.
49. [1] (c) AO2 Context applied to an advantage (max 1 mark) and disadvantage (max 1 mark) of outsourcing to PP, including: 12 large shops in countryside within country Q with fields near the shops.
50. [1] (c) AO2 Context applied to an advantage (max 1 mark) and disadvantage (max 1 mark) of outsourcing to PP, including: Variety of pricing methods – requires a range of cheap to expensive priced products.
51. [1] (c) AO2 Context applied to an advantage (max 1 mark) and disadvantage (max 1 mark) of outsourcing to PP, including: Outsourcing used in retail division, not (as far as is known) in farming division.
52. [1] (c) AO2 Context applied to an advantage (max 1 mark) and disadvantage (max 1 mark) of outsourcing to PP, including: Use of Table 1.1.
53. [1] (c) AO2 Context applied to an advantage (max 1 mark) and disadvantage (max 1 mark) of outsourcing to PP, including: CC is based in the same country as PP.
54. [1] (c) AO2 Context applied to an advantage (max 1 mark) and disadvantage (max 1 mark) of outsourcing to PP, including: PP would like more variety from CC but CC does not want to afford the capital expenditure.
55. [1] (c) AO2 Context applied to an advantage (max 1 mark) and disadvantage (max 1 mark) of outsourcing to PP, including: CC has a lead time of three days.
56. [1] (c) AO2 Context applied to an advantage (max 1 mark) and disadvantage (max 1 mark) of outsourcing to PP, including: FF makes plastic pots in a large factory in country S (different country to PP).
57. [1] (c) AO2 Context applied to an advantage (max 1 mark) and disadvantage (max 1 mark) of outsourcing to PP, including: FF uses mass customisation, producing any size and colour of pot.
58. [1] (c) AO2 Context applied to an advantage (max 1 mark) and disadvantage (max 1 mark) of outsourcing to PP, including: FF has a lead time of one month.
59. [1] (c) AO3 Analysis: Advantages of outsourcing, including: Improved focus on the core business activities; lower costs – increased profit.
60. [1] (c) AO3 Analysis: Advantages of outsourcing, including: Increased efficiency; higher quantity of products – increased sales revenue.
61. [1] (c) AO3 Analysis: Advantages of outsourcing, including: Controlling costs (with CC); more cash available to overcome labour turnover problems in farming division.
62. [1] (c) AO3 Analysis: Advantages of outsourcing, including: Increased flexibility (with FF); better customer satisfaction – increased sales.
63. [1] (c) AO3 Analysis: Advantages of outsourcing, including: Improve quality; fewer defective pots – improved customer satisfaction.
64. [1] (c) AO3 Analysis: Advantages of outsourcing, including: Access to specific skills; better presentation of PP plants – increased sales.
65. [1] (c) AO3 Analysis: Disadvantages of outsourcing, including: Loss of control over production process; may lead to poorer quality control – increased costs.
66. [1] (c) AO3 Analysis: Disadvantages of outsourcing, including: Reliance on an external stakeholder; relatively long lead times – reduced customer satisfaction.
67. [1] (c) AO3 Analysis: Disadvantages of outsourcing, including: Lack of flexibility; less able to respond to changes in customer demand – lower sales.
68. [1] (c) AO3 Analysis: Disadvantages of outsourcing, including: Delays may be inevitable (beyond the lead time); poor customer satisfaction – reduced sales revenue.
69. [1] (c) AO3 Analysis: Disadvantages of outsourcing, including: Likely to have a higher cost (due to having to cover CC or FF's profit margin); increased prices – lower sales. Accept all valid responses.
70. [1] (d) A01 Knowledge of the use and/or contents of a workforce plan (max 2 marks). Uses of a workforce plan, including: analysing the current workforce.
71. [1] (d) A01 Knowledge of the use and/or contents of a workforce plan (max 2 marks). Uses of a workforce plan, including: determining future workforce needs.
72. [1] (d) A01 Knowledge of the use and/or contents of a workforce plan (max 2 marks). Uses of a workforce plan, including: identifying the gap between the workforce you will have available and your future needs.
73. [1] (d) A01 Knowledge of the use and/or contents of a workforce plan (max 2 marks). Uses of a workforce plan, including: implementing solutions so that an organisation can accomplish its mission, goals, and strategic plan.
74. [1] (d) A01 Knowledge of the use and/or contents of a workforce plan (max 2 marks). Contents of a workforce plan, including: number of workers/employees required.
75. [1] (d) A01 Knowledge of the use and/or contents of a workforce plan (max 2 marks). Contents of a workforce plan, including: skills required.
76. [1] (d) A01 Knowledge of the use and/or contents of a workforce plan (max 2 marks). Contents of a workforce plan, including: skill gap analysis.
77. [1] (d) A01 Knowledge of the use and/or contents of a workforce plan (max 2 marks). Contents of a workforce plan, including: likely future human resource (HR) requirements.
78. [1] (d) A01 Knowledge of the use and/or contents of a workforce plan (max 2 marks). Contents of a workforce plan, including: action plan to achieve business human resource objectives.
79. [1] (d) A01 Knowledge of the use and/or contents of a workforce plan (max 2 marks). Contents of a workforce plan, including: demographic changes.
80. [1] (d) A01 Knowledge of the use and/or contents of a workforce plan (max 2 marks). Contents of a workforce plan, including: talent management.
81. [1] (d) AO2 Context applied to knowledge of workforce planning to PP (max 2 marks), including: PP is a private limited company.
82. [1] (d) AO2 Context applied to knowledge of workforce planning to PP (max 2 marks), including: Both the farming and retail divisions rely on human resources.
83. [1] (d) AO2 Context applied to knowledge of workforce planning to PP (max 2 marks), including: 12 large shops in in countryside within country Q with fields near the shops.
84. [1] (d) AO2 Context applied to knowledge of workforce planning to PP (max 2 marks), including: Variety of pricing methods – may increase skills needed in retail workers.
85. [1] (d) AO2 Context applied to knowledge of workforce planning to PP (max 2 marks), including: Outsourcing used in retail division, not (as far as is known) in farming division. May involve communication skills.
86. [1] (d) AO2 Context applied to knowledge of workforce planning to PP (max 2 marks), including: Use of Table 1.1.
87. [1] (d) AO3 Analysis: Analysing the current workforce; both divisions are likely to require skilled workers including; Farming - agricultural, chemicals, managerial, manual – all of which have a cost associated – reduced profitability.
88. [1] (d) AO3 Analysis: Analysing the current workforce; both divisions are likely to require skilled workers including; Retail - customer services, managerial, marketing – some of which may be in high supply in country Q – reduced wages - increased profitability.
89. [1] (d) AO3 Analysis: Determining future workforce needs; to maintain market share in what is likely to be a competitive market.
90. [1] (d) AO3 Analysis: Determining future workforce needs; both divisions are likely to be labour intensive (especially retail) – increases PP's ability to operate in a competitive market.
91. [1] (d) AO3 Analysis: Identifying the gap between the workforce you will have available and your future needs; farming division may require new product development – increased USP – increased sales.
92. [1] (d) AO3 Analysis: Implementing solutions so that an organisation can accomplish its mission, goals, and strategic plan; to increase future growth/survival/profitability.
93. [1] (d) AO4 Evaluation: A judgement over importance to PP of workforce planning.
94. [1] (d) AO4 Evaluation: Evaluation of the relative importance of different factors.
95. [1] (d) AO4 Evaluation: Elements that the evaluation/judgement might depend upon – cost of the labour as a proportion of the total costs of the product/sales, which division is being planned for, the labour market in country Q, dynamism of the potted plant market in country Q, the USP of PP, PP's competitors. Accept all valid responses.