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O-LevelBusiness StudiesUnderstanding business activity7115/11 · May/June 2014 · Q220 Marks

Keypeople is a recruitment agency which only operates in one small town in country Z. Its owner, Rachel, and her two employees know that good customer service is important. Rachel would like to expand her business. Keypeople offers a variety of human resource services to other businesses, such as recruiting employees and preparing employment contracts. Rachel has been asked by a local manufacturing business to recruit a senior manager.

  1. (a)Identify two examples of tertiary sector business activity in your country, other than a recruitment agency.[2]
  2. (b)Identify two reasons why good customer service is important for Keypeople.[2]
  3. (c)Identify and explain two reasons why employment contracts are used by businesses.[4]
  4. (d)Identify and explain two stages in the recruitment process of the manager's job for the manufacturing business.[6]
  5. (e)Do you think Rachel should expand Keypeople? Justify your answer.[6]

Mark scheme

Marking points from the official mark scheme (May/June 2014). The mark or mark type is shown in brackets.

  1. [2] Knowledge [2 × 1] 1 mark per example
  2. Examples might include: Hairdressers, transport or distribution company; banking, retailers, doctors. Accept any reasonable answer but only one example of a retailer.
  3. Do not accept names of businesses on their own or answers such as selling
  4. [2] Application [2 × 1] - award 1 mark per reason
  5. Reasons might include: customer feels valued / good public relations / creates higher level of customer satisfaction / leads to repeat business (brand loyalty) / can lead to word of mouth recommendations/ motivation of workers/brand image.
  6. [4] Knowledge [2 × 1] - award 1 mark for each relevant reason
  7. Analysis [2 × 1] – award 1 mark for each relevant explanation
  8. Points might include:
  9. • It's a legal requirement [k] so failure to use them could lead to fines / legal action [an]
  10. • Avoids misunderstanding if there is a dispute [k] business can check what workers are expected to do [an]
  11. • Employers and employees know the terms and conditions of the employment [k].
  12. Note: Details of content within a contract can be awarded only once as knowledge (e.g. wages/hours/holidays).
  13. [6] Knowledge [2 × 1] – award 1 mark for each stage identified
  14. Analysis [2 × 1] - award 1 mark for each relevant explanation
  15. Application [2 × 1] – award 1 mark if relevant reference made to Key people
  16. For each reason maximum 3 marks [1k + 1app + 1an].
  17. Stages are: job analysis; job description; person (job) specification; advertising the vacancy; shortlisting; interviewing, induction (training).
  18. Possible examples include:
  19. • Job description [k] will outline the tasks and responsibilities of the job [an]
  20. • Person specification [k] will list the qualities and experiences for a senior manager [app] to attract the right people [an]
  21. • Right place to advertise [k] specialist magazines/newspaper[app] to reach a wide range of people [an].
  22. Note: Do not accept training alone - too vague.
  23. [6] Knowledge [2] – award up to 2 marks for identification of relevant points
  24. Application [1] – award 1 mark if relevant reference made to key people
  25. Analysis [1] – award 1 mark for relevant development of point(s)
  26. Evaluation [2] – justified decision made as to whether Rachel should expand key people
  27. Points might include:
  28. • Access to finance [k] as it is only a small business [app] so banks might not be willing to lend [an]
  29. • Size of market [k] there might not be enough businesses who want to use the services [an] of a recruitment agency [app]
  30. • Negative effect on business reputation [k] as customer service might worsen [app] as employees might not be able to cope with the increased workload [an]
  31. • Need to hire additional employees [k] which would increase the business costs [an] as currently only have 2 employees [app]
  32. • Expansion will reach more people [k] as it may move into new towns[app] and potentially increase sales [an].

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About this question

Topic
Understanding business activity, O-Level Business Studies (syllabus 7115). Structured question, 20 marks.
Source
O-Level Business Studies, May/June 2014 Paper 1 Variant 1, question 2.

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