MRN is a food retailer. It has 490 shops and 70000 employees. MRN has announced plans to close 80 of its shops. The Human Resources Director said: '20% of management jobs will be removed. We want to encourage delegation. MRN will continue to follow legal controls over employment.' MRN's directors know it is important that businesses respond to increased competition.

Mark scheme

Marking points from the official mark scheme (Oct/Nov 2023). The mark or mark type is shown in brackets.

1. [2] Giving a subordinate the authority to perform particular tasks [2]
2. [2] OR When a manager gives authority to another employee to complete a task, although the manager retains the ultimate responsibility for the completion of the task [2]
3. [2] OR Passing responsibility to perform tasks to employees (lower down the organisation) [2]
4. [1] Partial definition e.g. manager gives task to employee [1]
5. [1] OR subordinate given task to do [1]
6. [1] OR giving authority to a subordinate/employee [1]
7. [1] (Unfair) dismissal
8. [1] Discrimination/equal opportunities
9. [1] Health and safety
10. [1] Legal minimum wage
11. [1] Legal minimum age/child labour
12. [1] Contract of employment/conditions of employment
13. [1] Redundancy
14. [1] Planning [k] so have the necessary resources for this food retailer [app]
15. [1] Organising [k] to ensure everyone is working effectively in each of the 490 stores [app]
16. [1] Commanding [k] to help guide the 70000 employees [app]
17. [1] Co-ordinating [k] so better placed to respond to increased competition [app]
18. [1] Controlling [k]
19. [1] Level of demand/where its customers are/number of sales [k] of food [app] as some might have lower revenue [an]
20. [1] Level of competition/number/type of shops in area [k] which could reduce sales/demand [an]
21. [1] Rent/rates [k] for each of the 80 locations [app] as this could make some sites too expensive to run [an]
22. [1] Distance from suppliers [k] increased transport costs [an]
23. [1] Space [k] as in some locations there may not be (enough) room to display everything [an]
24. [1] Shops which are too close together [k]
25. [1] Economic state of area/area in decline [k]
26. [1] Local wage rates/labour availability [k] leading to higher costs [an]
27. [1] Number of workers employed [k] to reduce redundancy payments [an]
28. [1] Profitability of each shop [k]
29. [2] Award up to 2 marks for identification of relevant points.
30. [2] Award up to 2 marks for relevant development of points.
31. [2] Award up to 2 marks for a justified decision as to which is the best way a retail business could respond to increased competition.
32. Points might include: [k] Introduce new products [an] therefore gaining a unique selling point [an] but may have limited shelf space [an]
33. Points might include: [k] Lower prices/change pricing method [an] can sell more products/increased market share [an] increasing revenue [an]
34. Points might include: [k] Improve quality of service/products [an] but this might increase (training) costs [an] but this may lower its profit margin [an]
35. Points might include: [k] Maintain/build good customer relationships [an] which could encourage customer loyalty [an]
36. Points might include: [k] Increase promotion/advertising (only award once) [k]
37. Points might include: [k] Renovating shop [k]
38. Points might include: [k] Relocate [k]
39. Points might include: [k] Merger/takeover [k]
40. Justification might include: The business could lower its prices [k] therefore sell more products [an]. Introducing new products [k] may appeal to a wider range of customers [an]. Introducing new products is a better way because price might not be important to the customer [eval] therefore lowering the price will simply reduce profit margin [eval].