Page 356 - Cambridge IGCSE Business Studies

Cambridge IGCSE Business Studies 27: Exam technique

Read the following extract from a sample case study paper. (In the actual exam,
there would be three appendices as well.)

Early Riders is a private limited company. The business manufactures various
styles and sizes of children’s bicycles, using batch production. These bicycles are
sold to a number of large retail shops around the world.
Early Riders is thinking of moving its operations to another country, due to
increasing costs and new government legislation. ‘Laws just mean extra costs,
and I am determined to keep our profi t margin high,’ said the Finance Director.

The business is located on the edge of the capital city in Country X near to a small
airport. The components to make the bicycles are purchased from local suppliers,
but some items, such as tyres, are imported to ensure the quality is good.

Early Riders employs 75 production workers and 15 offi ce workers. The
employees in the production department are all unskilled, have had little training
and are paid by time rate. The management style is autocratic. The working
conditions are good but each worker does the same job every day. The Human
Resources Director is worried about the number of workers leaving each year.

a Identify and explain one advantage and one disadvantage to
Early Riders of using batch production. [8]
b The Human Resources Director is worried that a high number of
workers leave the company each year because of poor motivation.
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Consider three different methods that Early Riders could use to increase
motivation of the production workers. Recommend which method you
think will be the most effective. Justify your answer. [12]

Tips for answering these questions

■ For part (a) you don’t have to define batch production. Don’t include two possible advantages (or disadvantages). Make
sure you place your answer under the right heading.
■ Part (b) gives you the choice. Remember this is a manufacturing business so options such as commission are not
appropriate. Don’t list lots of options, just focus on three. Explain why you think each method might help increase
motivation. Think about the disadvantages and advantages of each method. In your evaluation, make a choice and say
why this method is better than the other two options that you have considered.

ACTIVITY 27.2

Read the following sample answers (written by the authors). How many marks would you give each of the following
responses to the questions above? Extracts of the mark scheme are included to help you decide.

Afterwards, compare the marks you would give with the comments provided.