Javid is a company that manufactures a range of luxury chocolates using batch production. Over the past year, profit has fallen due to increased competition. In order to cut costs, the Finance Director has suggested the company introduces new technology into the production process. The Human Resources Director is not sure that workers would benefit from the introduction of new technology.

Mark scheme

Marking points from the official mark scheme (May/June 2015). The mark or mark type is shown in brackets.

1. [2] Clear understanding [2]: e.g. products are made in groups/blocks [1] followed by another block/group [1]
2. [1] Some understanding [1]: identifies one distinct feature of batch e.g. made in (small) groups or sets
3. Do not accept 'batch' as part of answer as stated in question.
4. [2] Application [2 × 1] award 1 mark per advantage
5. Points include:
6. • less errors/wastage/consistent quality
7. • less risk of injury
8. • higher output
9. • able to make new products
10. • speed of production/efficiency
11. • 24/7 operation
12. Note: do not accept less wages or less employees as these are examples of cutting costs
13. [4] Knowledge [2 × 1] – identification of relevant reason [max 2]
14. Application [2 × 1] - award 1 mark for each relevant explanation in context
15. Points could include:
16. • helps establishes brand image/loyalty [k] as they make a luxury product [app]
17. • ensure sales [k] as if they don't taste right, people won't buy [app]
18. • maintain reputation [k] which is important as it is a competitive market [app]
19. • maintain standards [k]
20. • no need to replace faulty products [k] which will help reduce costs [app]
21. • Charge/maintain high prices [k]
22. • Add value [k]
23. • Must meet legal requirements [k] for food products [app]
24. Application marks may be awarded for appropriate use of the following: competitive market, luxury product, food products, taste.
25. [6] Knowledge [2 × 1] – identification of relevant problem [max 2]
26. Application [2 × 1] - award 1 mark for each relevant reference made to the business
27. Analysis [2 × 1] - award 1 mark for each relevant explanation
28. Relevant points might include:
29. • Lack of finance [k] to introduce new technology [app] because of less retained profits [an]
30. • Lenders/investors unwilling to give money [k] as seen as higher risk [an]
31. • Workers insecure [k] which results in poor motivation [an] as they fear job losses as the company try to cut costs [app]
32. • Damaged reputation [k] suppliers/customers might think the business is struggling [an] so look for alternative chocolate makers [app].
33. • Shareholders may sell shares [k] because the company can't pay dividends [an]
34. Accept points which refer to either gross profit or profit
35. Application marks may be awarded for appropriate use of the following: new technology, chocolate, cutting costs, increased competition.
36. Profit is not used to pay costs therefore do not accept answers which suggest they can no longer afford items.
37. Do not accept solutions e.g. Making workers redundant.
38. [6] Knowledge [1] – award 1 mark for identification of relevant issue(s). Positive or negative points allowed [max 1]
39. Application [1] – award 1 mark if relevant reference made to Javid's business
40. Analysis [2] – award up to 2 marks for relevant development of point(s)
41. Evaluation [2] – justified decision made as to whether new technology would benefit Javid's workers. Candidate's final decision can be either for or against the statement.
42. Relevant points might include:
43. • need for re-training [k] which could create opportunities for promotion [an]
44. • impact on motivation (either positive or negative) [k]
45. • fear of change [k] as production process likely to change how they do things [an]
46. • fear of redundancy/job losses as machines replace jobs [k] could decrease motivation [an]
47. • less skills needed [k] so could mean lower wages [an] leading to lower living standards [an]
48. • opportunities to learn new skills [k] because they make new types of chocolate [app]
49. • chances for promotion [k] as new job roles created [an]
50. • safer conditions [k] in the manufacturing process [app] so less risk of injury [an]
51. • company survives [k] because they remain competitive [app] so workers keep their jobs [an]
52. Note: Do not accept points such as 'more efficient' unless clearly link issue to employees.
53. Application marks may be awarded for appropriate use of the following: chocolates, sales falling, need to cut costs, increased competition
54. Note: Answer must focus on the benefit or not to the workers