JNK makes pottery including plates and bowls for the mass market, using batch production. Quality control is important. JNK has 30 unskilled employees, who are all paid the legal minimum wage. JNK uses job enrichment to keep workers motivated. Due to an increase in demand, JNK is planning to replace its old machines with new technology. The Managing Director thinks that some of the low cost materials purchased by JNK are produced using child labour. One of JNK's competitors has recently introduced a new ethical policy.

Mark scheme

Marking points from the official mark scheme (May/June 2019). The mark or mark type is shown in brackets.

1. [2] Clear understanding: e.g. selling the same product to the whole market (everyone)
2. Some understanding [1] e.g. Selling to the whole market OR sell to everyone
3. OR lots of customers OR lots of sales OR lots of buyers
4. [2] Clear understanding: (Involves looking at jobs and) adding tasks that require higher skill or more responsibility
5. Making work more challenging [1] by giving extra tasks [1]
6. Some understanding [1]: Making work more challenging / difficult OR giving workers more responsibility
7. [4] Knowledge [2 × 1] Award 1 mark for each way identified
8. Application [2 × 1] Award 1 mark for each explanation in context
9. Need for re-training OR fear of change OR opportunity to learn new skills [k] when making pottery [app]
10. Possible redundancy / loss of jobs / job insecurity [k] for some of the 30 employees [app]
11. May receive higher pay [k]
12. Safer working conditions [k] as replace old machines [app]
13. Higher / lower motivation [1] as may create more / less opportunities for job enrichment [app]
14. [6] Knowledge [2 × 1] Award 1 mark for each relevant way
15. Application [2 × 1] Award 1 mark for each relevant reference made to this business
16. Analysis [2 × 1] Award 1 mark for each relevant explanation
17. Training [k] so likely to make fewer mistakes OR able to work quicker / increase productivity [an] when making plates [app]
18. Employ more workers or workers do longer hours [k] by recruiting more than 30 [app] will allow increased output with the same number of machines [an]
19. Recruit / employ specialist or skilled workers [k] as current workers are unskilled [app]
20. Change production method to flow production [k] from batch production [app] allowing continuous production [an]
21. Improve layout / design of factory [k] so less time is wasted moving semi-finished goods around [an]
22. Take over another company or expand current site [k] so will have additional capacity [an] to meet increased demand [app]
23. Examples of methods of financial / non-financial motivation (allow once) e.g. introduce piece rate OR bonuses OR job rotation OR fringe benefits [k]
24. [6] Knowledge [1] Award max. 1 mark for identification of relevant issue(s)
25. Application [1] Award 1 mark for a relevant reference made to this business
26. Analysis [2] Award up to 2 marks for relevant development of point(s)
27. Evaluation [2] Justified decision made as to whether JNK should become more ethical
28. Customers may boycott the business [k] leading to lower brand image / reputation [an] which may decrease market share [an]
29. Many customers want to support ethical businesses [k] so may be willing to pay higher prices [an] for its pottery [app] leading to higher revenue [an]
30. Help employee recruitment / retention [k] of 30 employees [app] so saving cost of recruitment [an]
31. Opportunity for new sources of finance [k] would allow increased capital from ethical investors [an] who do not want to be linked with businesses using child labour [app]
32. Ethical suppliers are likely to charge more [k] leading to higher variable costs [an] as not able to use low cost materials [app]
33. Could lose sales to competitor [k]
34. Materials purchased from unethical sources may be cheaper [k]
35. May not be able to find suitable (ethical) suppliers [k]
36. Shareholders OR owners may want higher profit [k]