Identify and explain two possible reasons why Thao and Liang have set 'excellent customer service' as the main business objective.

Mark scheme

Marking points from the official mark scheme (May/June 2016). The mark or mark type is shown in brackets.

1. [8] Knowledge [2 × 1] award one mark for each relevant reason identified
2. Analysis [2 × 1] award one mark for a relevant explanation of each reason
3. Application [2 × 2] award two application marks for each relevant reason
4. Award one mark for each relevant reason (maximum of two), such as:
5. • To gain a good reputation
6. • To keep customer loyalty/customer satisfaction/meet customer needs
7. • To attract new customers
8. • To reduce customer complaints
9. • Unique Selling Point (USP)/Brand Image
10. • Added Value.
11. Award a maximum of three additional marks for each explanation – two of which must be applied to this context - of each of these reasons.
12. To gain a good reputation (k) because then customers will tell their friends about the service and this will increase sales revenue (an). Customers will not use a photography business very often (ap) and Thao and Liang will rely on gaining new customers for wedding photographs from hearing about them from other happy customers (ap).
13. Possible application marks: face-to-face meetings with customers; private limited company; profitable and grown over last 5 years; photographs; photographers; photography; getting married; weddings, birthdays, family photographs; business customers as well as private individuals; taking over another photography business; growing externally rather than internally; photographs received on the internet; use an app to download photographs.
14. There may be other examples in context which have not been included here.
15. [12] Relevant points might include: Health and safety training now required for all employees – most of the work is at customer's place of work and photography is not very dangerous; increased training costs; loss of output when being trained.
16. Increase of 20% in the legal minimum wage – photographers are skilled so will be paid above minimum wage anyway; maintains motivation as well paid; higher costs than competitors if they do not also pay higher wages.
17. Protection from unfair dismissal now applies to employees who have been employed for only 6 months instead of 2 years – more difficult to get rid of unsuitable employees; workers feel more secure and so better motivated.
18. Knowledge/Analysis/Evaluation – award up to ten marks using the levels-based mark scheme below.
19. Level 1 One mark for each L1 statement (max of three marks) e.g. Photographers are skilled workers and paid above minimum wage.
20. Level 2 One L2 explanation can gain four marks and a further mark can be awarded for each additional L2 explanation (max six marks) e.g. Photographers are skilled workers and paid above minimum wage so the minimum wage will probably have little effect on FF. However, if the minimum wage is set at a high level then it may mean that the photographers will expect a wage increase so that they are paid proportionately more than these workers. (Four marks for L2 answer + one application mark for considering the photographers.)
21. Level 3 For L3 to be awarded there needs to be at least two L2 marks awarded and then a conclusion which justifies which legal control is likely to have the biggest effect and why the other legal controls will have less effect.
22. Award up to two additional marks for relevant application.
23. Possible application marks: private limited company; profitable and grown over last 5 years; provides excellent customer service; photographs; photographers; photography; weddings, business customers as well as private individuals; employed 2 additional photographers; 8 photographers; 2 part-time office workers; taking over another photography business; growing externally rather than internally; pay existing photographers 50% above minimum wage; information in Appendix 3.
24. There may be other examples in context which have not been included here.