BUSINESS

MANAGEMENT
Generic Response Structure

IDENTIFY / PROPOSE
Recognise / name / select
No further explanation
needed.

Question:
Identify one stakeholder group
that might resist these changes
at the gaming store. (1 mark)
Answer:
One stakeholder group that
may resist the changes at
the gaming store are the
store’s employees.
Patrick Rhodes
 BUSINESS
MANAGEMENT
Generic Response Structure

DISCUSS
Strengths vs Weaknesses
Benefits vs Limitations
Arguments for vs Arguments Against

must be a balanced argument (+ and - included)

Question:
Discuss a suitable training option that could be
used for Car Bright’s employees (4 marks).
Answer:
Car Bright should use on-the-job training. This is
where employees improve their skills and
knowledge while at the workplace, often while
performing their actual job. One benefit of using
on-the-job training is that it will allow for Aaron’s
employees to improve their car cleaning services
more effectively as they are able to learn with the
actual equipment that they need to use. Another
benefit this will likely be more cost effective for
Aaron to implement rather than sending employees
elsewhere for training. On-the-job training will
result in highly skilled employees at Car Bright in
this manner.
However, one limitation this form of training can
result in poor habits from trainers within the
workplace being passed down to employees as it
often relies on employees to teach other
employees. Furthermore, another limitation there
may be workplace interruptions which interfere
with the learning of Car Bright’s employees at the
workplace.
Patrick Rhodes
 BUSINESS
MANAGEMENT
Generic Response Structure

EVALUATE
Strengths vs Weaknesses & Opinion
Benefits vs Limitations & Opinion
Arguments for vs Arguments Against
& Opinion
must be a balanced argument (+ and - included)
generally 1 point (+/-) per mark
builds on ‘Discuss’
must pick a side for your opinion. “Overall...”

Question:
Evaluate the suitability of the management style John has
adopted for achieving the bakery’s business objectives. (5 marks)
Answer:
An autocratic style refers to when management have centralised
decision-making and communication authorities. Most commonly
mangers provide employees with clear directions to complete a
task, and regularly check in on employee performance.
An advantage of John using this style is that he is able to make
quick decisions in his bakery, since decision-making is centralised.
This will mean that less time is spent making a decision, leading to
less time of a low productivity. If productivity isn’t affected, John’s
more likely to achieve his objective of increasing net profit by 10%.
Another advantage of this style is that John can provide his
employees with clear directives to complete a task, meaning that
employees will know how to complete a task with higher
competence, since they won’t be confused (because of clear
directions).
However, a disadvantage of this style is that John’s employees will
experience a low morale, since they are delegated tasks, and have
no inputs at John’s Bakery. This may lead to staff continuing to be
absent, decreasing the likeliness of the bakery achieving
objectives. Another disadvantage is that this style doesn’t allow
for a large pool of ideas from employees, as the manager makes
decisions with no input. This may result in a lower quality decision
being made if John is using his ideas/creativity when making a
decision.
Overall, John should not utilise the autocratic style because
employees will experience a low morale as they do not provide any
input, leading to most feeling underappreciated. This is because
staff feeling like this are more likely to work at a lower
productivity, resulting in the objectives of the bakery not being
met.
Patrick Rhodes
 BUSINESS
MANAGEMENT
Generic Response Structure

COMPARE
Similarities & Differences
must be a balanced argument
(both similarities and
differences included)

Question:
Compare the two key approaches to strategic management
identified by Porter’s Generic Strategies (1985). (5 marks)

Answer:
A similarity between Porter’s cost leadership strategy
and his product differentiation strategy is that they both
seek to help companies achieve their business
objectives, particularly profit and increased market
share. As a cost leader or through a differentiated
product, more sales will occur, leading to the
satisfaction of stated business objectives. Another
similarity between the two strategies is that they both
intend to deliver a competitive advantage for businesses
who use each strategy. This allows businesses in their
area to outperform rivals.
A difference between lower cost strategy and product
differentiation is that large companies are more likely to
implement the former. This is a result of cost leadership
requiring economies of scale to be achieved in order to
reduce the cost of production. On the other hand,
product differentiation is available to firms of all sizes,
not just large companies with great amounts of capital
to invest. Another difference is that product
differentiation aims to create brand loyalty, where cost
leadership does not. Through the development of a
brand/identity, differentiated products seek a target or
regular customer base of loyal supporters. In Porter’s
cost leadership strategy, this does not occur with
customers opting for the cheapest option regardless of
the products’ brand.
Patrick Rhodes
 BUSINESS
MANAGEMENT
Generic Response Structure

DISTINGUISH
Differences
Define term A, ‘whereas’ define
term B (must be a comparable
factor to differentiate)
Another difference is...

Question:
Distinguish between social enterprises and
government business enterprises (3 marks).
Answer:
Social enterprises are a type of business
that focuses on fulfilling a social need by
helping support community and human
wellbeing, whereas, a government business
enterprise (GBE) operate in the public
sector and usually in a similar way to private
companies; they are established to make a
profit and/or provide services to the
community.
The key difference is that a social enterprise
operates like a business and produces goods
and/or services, but any profit generated is
redirected to help facilitate the achievement
of its social and environmental objectives,
whereas, government business enterprises
(GBE) operate in the public sector and
usually operate in a similar way to private
companies; as they are established to make
and retain profits by providing services (as
opposed to addressing social needs).
Patrick Rhodes
 BUSINESS
MANAGEMENT
Generic Response Structure

JUSTIFY
Reasons why:
... something is recommended.
... something is identified as
being correct

Question:
Propose and justify one performance
management strategy, other than a change
in management style, that John could use
to reduce staff absenteeism. (3 marks)
Answer:
John may use staff training as a
management strategy in response to the
key performance indicator ‘staff
absenteeism’. By improving the skills
and knowledge of employees at the
bakery so that they are able to perform
more efficiently and effectively in their
role, they will feel valued as an asset at
the bakery. As John invests time and
money enhancing their abilities, their job
satisfaction will improve, and they will
feel more competent to work to the best
of their ability. In turn, they will be more
likely to attend work as they feel both
competent in their abilities and
satisfied/valued at work, reducing staff
absenteeism.
Patrick Rhodes
 BUSINESS
MANAGEMENT
Generic Response Structure

DEFINE
Give the precise meaning
provide one characteristic
per mark allocated

Question:
Define the term ‘business
objective’. (2 marks)
Answer:
A business objective is a goal
which an organisation sets out
to achieve in a given time
period. A business objective
may include to ‘increase profit’
or to ‘fulfil a social need’.
OR
A business objective is a
specific target a business aims
to achieve within a timeframe,
which helps guide business
decision-making and gives
direction.
Patrick Rhodes