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O-LevelBusiness StudiesPeople in business7115/12 · Oct/Nov 2018 · Q120 Marks

M&R Motors has 2 car showrooms. It buys old cars and repairs them before selling them to its customers. M&R is always trying to increase added value. M&R plans to open another showroom. The owner said: 'Finding the right location is important. The new showroom will require a manager and I need to find someone with the right qualities.' The job will be advertised in the local newspaper as shown in Figure 1. The advertisement will cost $5 for one week. Figure 1: Job advertisement M&R is planning to use for the new manager CAR SHOWROOM MANAGER REQUIRED • This successful business is expanding. • The job involves managing the office and selling cars. • You will be in charge of three workers who will repair the cars. • Do you have the qualities we are looking for? • We offer good pay and working conditions. For more information apply to M&R Motors

  1. (a)What is meant by 'added value'?[2]
  2. (b)Identify two qualities that M&R might look for in the new manager. Quality 1: Quality 2:[2]
  3. (c)Identify and explain two methods of selection M&R could use when choosing the new manager. Method 1: Explanation: Method 2: Explanation:[4]
  4. (d)Identify and explain two factors that M&R might consider when deciding on a location for the new showroom. Factor 1: Explanation: Factor 2: Explanation:[6]
  5. (e)Do you think a newspaper is the best way for M&R to advertise the new job? Justify your answer.[6]

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Mark scheme

Marking points from the official mark scheme (Oct/Nov 2018). The mark or mark type is shown in brackets.

  1. [2] Good knowledge: difference between the selling price of a product and the cost of bought in materials and/or components
  2. [2] OR improvement to the product that makes it worth more [1] plus a relevant example [+1] e.g. packaging
  3. [1] Some understanding e.g. improvement to the product that makes it worth more
  4. [1] Good leader
  5. [1] Well organised
  6. [1] Good communicator
  7. [1] Friendly OR approachable
  8. [1] Knowledgeable
  9. [1] Patience
  10. [1] Responsible
  11. [1] Good motivator
  12. [1] Interview [k]
  13. [1] to see whether they have the right qualities [app]
  14. [1] CV and / OR letter of application OR application form [k]
  15. [1] sent to the showroom [app]
  16. [1] Ability or aptitude OR psychometric test [k]
  17. [1] e.g. watch them try to sell cars [app]
  18. [1] Group exercises [k]
  19. [1] to see how well/whether they can work as part of a team [app]
  20. [1] Online screening [k]
  21. [1] Presentation[k]
  22. [1] Customers OR demand OR potential sales [k]
  23. [1] somewhere that people are interested in cars [app]
  24. [1] to increase revenue [an]
  25. [1] Availability OR cost of suitable land OR parking [k]
  26. [1] as likely to need a large space for displaying products [an]
  27. [1] Legal controls [k]
  28. [1] could stop them from building in some places [an]
  29. [1] Competitors [k]
  30. [1] customers might be loyal to other business so difficult to gain customers [an]
  31. [1] Suppliers [k]
  32. [1] so able to get parts/components easily [an]
  33. [1] Infrastructure OR transport links OR utilities [k]
  34. [1] Access to employees [k]
  35. [1] as looking for a manager [app] who is able to effectively sell things [an]
  36. [1] Distance from other site [k]
  37. [1] as don't want to take customers away from its other business [an]
  38. [1] Safety/security of area [k]
  39. [1] Seen by many people OR wide exposure [k]
  40. [1] in local area [app]
  41. [1] Most people do not read newspapers [k]
  42. [1] so possible candidates might not see the advert [an]
  43. [1] Only shown for a limited amount of time [k]
  44. [1] such as one week [app]
  45. [1] Has to pay to advertise [k]
  46. [1] as it costs $5 [app]
  47. [1] which increases his expenses [an]
  48. [1] Specialist magazines [k]
  49. [1] as target audience are likely to read them [an]
  50. [1] so more likely to attract suitable candidates [an]
  51. [1] National newspaper [k]
  52. [1] as able to reach people across the country [an]
  53. [1] Jobs website OR own website OR social media [k]
  54. [1] as most people use internet to look for jobs today [an]
  55. [1] but some people do not have access to the internet [an]
  56. [1] Notice board [k]
  57. [1] at the garage [app]
  58. [1] Recruitment agency [k]
  59. [1] saving time as they will carry out the recruitment for them [an]

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About this question

Topic
People in business, O-Level Business Studies (syllabus 7115). Structured question, 20 marks.
Source
O-Level Business Studies, Oct/Nov 2018 Paper 1 Variant 2, question 1.

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