holimoly2009@gmail.

com - John - Khala

Please write clearly in block capitals.

Centre number Candidate number

Surname

Forename(s)

Candidate signature
I declare this is my own work.

GCSE
BUSINESS
Paper 1 Influences of operations and HRM on business activity

Tuesday 14 May 2024 Afternoon Time allowed: 1 hour 45 minutes

Materials
For this paper you must have: For Examiner’s Use
• a calculator.
Section Mark
Instructions A
• Use black ink or black ball-point pen. B
• Fill in the boxes at the top of this page.
C
• Answer all questions.
• You must answer the questions in the spaces provided. Do not write outside TOTAL
the box around each page or on blank pages.
• If you need extra space for your answer(s), use the lined pages at the end of
this book. Write the question number against your answer(s).
• Do all rough work in this answer book. Cross through any work you do not
want to be marked.

Information
• The marks for each question are shown in brackets.
• The maximum mark for this paper is 90.

*jun248132101*
IB/M/Jun24/G4004/E9 8132/1
[email protected] - John - Khala 2
Do not write
outside the
Section A box

Answer all questions in the spaces provided.

For questions with four responses, only one answer per question is allowed.

For each question completely fill in the circle alongside the appropriate answer.

CORRECT METHOD WRONG METHODS

If you want to change your answer you must cross out your original answer as shown.

If you wish to return to an answer previously crossed out, ring the answer you now wish to select
as shown.

0 1 . 1 Which of the following is a benefit to an entrepreneur of operating as a sole trader?

[1 mark]

A Can sell shares

B Easy to set up

C Limited liability

D Many owners

0 1 . 2 Which of the following is a method of internal recruitment?

[1 mark]

A Advertising at a job centre

B Advertising in a newspaper

C Advertising on a noticeboard in the staffroom

D Advertising with an employment agency

*02*
IB/M/Jun24/8132/1
[email protected] - John - Khala 3
Do not write
outside the
0 1 . 3 Which of the following describes when induction training should take place? box

[1 mark]

A When an employee first joins a business

B When an employee leaves a job

C When an employee needs to learn new skills

D When an employee starts using new technology

0 1 . 4 Which of the following is correct for a flat organisational structure?

[1 mark]

A Many levels of hierarchy

B Many opportunities for promotion

C Narrow span of control

D Short chain of command

0 1 . 5 Which of the following is the most likely effect of a decrease in interest rates?
[1 mark]

A Borrowing will be cheaper.

B Business investment will fall.

C Consumer spending will reduce.

D More people will save.

Question 1 continues on the next page

Turn over ►

*03*
IB/M/Jun24/8132/1
[email protected] - John - Khala 4
Do not write
outside the
0 1 . 6 Which of the following is an example of a fixed cost? box

[1 mark]

A Interest payments

B Packaging for goods

C Production wages

D Raw materials

0 1 . 7 Explain one method of growth used by a business when expanding organically

or externally.
[2 marks]

0 1 . 8 Explain why a business uses delayering.

[2 marks]

0 1 . 9 Explain one way a person specification can be used as part of the recruitment
process.
[2 marks]

*04*
IB/M/Jun24/8132/1
[email protected] - John - Khala 5
Do not write
outside the
0 1 . 10 Businesses aim to meet the needs and wants of customers. Explain the meaning of box

the term ‘need’ using an example.

[2 marks]

0 1 . 11 Explain one disadvantage to a business of expanding through external growth.

[2 marks]

0 1 . 12 Land is one of the four factors of production.

Identify and explain two factors of production other than land.

[4 marks]

Factor 1

Explanation

Factor 2

Explanation

20

Turn over for Section B

Turn over ►

*05*
IB/M/Jun24/8132/1
[email protected] - John - Khala 6
Do not write
outside the
Section B box

Answer all questions in the spaces provided.

0 2 Item A: Luscious Locks by E

Elaine owns her own hair salon called Luscious Locks by E (LLE). The salon has
one senior hairdresser and five junior hairdressers.

The senior and most qualified hairdresser is leaving the business at the end of the
month. They are leaving because Elaine did not listen to ideas from employees on
new hairstyles to offer.

John will be promoted to the senior hairdresser role. He is the most experienced of
the junior hairdressers and is frequently fully booked. Customers are charged a
premium price for bookings with the senior hairdresser and expect a high level
of skill.

John has asked Elaine if the salon would pay for him to go on a college course. He
would need to attend the course one afternoon every week for 2 years. The course
will be led by a specialist trainer in the latest hair techniques. An alternative would
be for John to receive on-the-job training from the current senior hairdresser until
they leave the business.

LLE’s sales and profits have recently fallen due to the opening of a new salon that
offers the latest up-to-date celebrity styles.

0 2 . 1 Explain one benefit to a business of employing workers on a part-time contract.

[2 marks]

*06*
IB/M/Jun24/8132/1
[email protected] - John - Khala 7
Do not write
outside the
0 2 . 2 Elaine makes all of the decisions in the business. She rarely consults with anyone. box

Analyse one drawback for LLE of Elaine’s management style.

[6 marks]

Extra space

Question 2 continues on the next page

Turn over ►

*07*
IB/M/Jun24/8132/1
[email protected] - John - Khala 8
Do not write
outside the
0 2 . 3 The college course would allow John to gain an advanced qualification in the latest box

hairstyling techniques.

Recommend whether Elaine should allow John to attend the college course. Give
reasons for your answer.
[9 marks]

Extra space

*08*
IB/M/Jun24/8132/1
[email protected] - John - Khala
9
Do not write
outside the
box

Question 2 continues on the next page

Turn over ►

*09*
IB/M/Jun24/8132/1
[email protected] - John - Khala 10
Do not write
outside the
Item B: Luscious Locks by E box

Elaine has been looking into ways to increase LLE’s revenue. Elaine has identified
a growing trend for organic hair treatments. Demand has risen after a popular
celebrity promoted the benefits of organic hair treatments on her television show.

Elaine has found a new supplier that makes homemade organic hair treatments.
The treatments are vegetable based and have a shelf life of a month. After this
date they will need to be thrown away.

When making an appointment, customers have to give the salon 24 hours’ notice if
they want an organic hair treatment. Twenty customers booked the treatments last
week. A customer has complained that she could not get an organic hair treatment
whilst at the salon as she had not booked this in advance and no stock was
being held.

The supplier is not local and the delivery costs are high. The supplier is
encouraging Elaine to make a bulk purchase by offering a large discount on orders
over 100.

0 2 . 4 Explain one benefit of growth to a business.

[2 marks]

*10*
IB/M/Jun24/8132/1
[email protected] - John - Khala 11
Do not write
outside the
0 2 . 5 Elaine ordered 20 organic hair treatments for £300 in total. box

Calculate the unit cost of each treatment.

Show your workings.
[2 marks]

0 2 . 6 The supplier has offered a 35% discount.

Calculate the total cost of 120 organic hair treatments with this discount. Use your
answer to Question 2.5 in your calculation.

Show your workings.

[3 marks]

Question 2 continues on the next page

Turn over ►

*11*
IB/M/Jun24/8132/1
[email protected] - John - Khala 12
Do not write
outside the
0 2 . 7 Elaine orders the treatments to arrive just in time for each customer’s appointment. box

Recommend whether Elaine should change to just-in-case stock control. Give

reasons for your recommendation.
[9 marks]

Extra space

*12*
IB/M/Jun24/8132/1
[email protected] - John - Khala
13
Do not write
outside the
box

33

Turn over for Section C

Turn over ►

*13*
IB/M/Jun24/8132/1
[email protected] - John - Khala 14
Do not write
outside the
Section C box

Answer all questions in the spaces provided.

0 3 Item C: Bootmills Ltd

Bootmills Ltd is a UK producer of high-quality leather boots. Many of the boots have
designs and patterns which keep up with fashion trends.

The factory in Birmingham employs a highly skilled labour force. Some machinery is
used but the boots are largely handmade. All employees are responsible for checking
their work. Boots are sent back to the previous employees if production is not at the
required quality standard.

The factory holds a small stock of raw materials. New deliveries are needed every
24 hours. The boots are made from the highest quality leather. A wide range of
supplies such as suede and rubber are also needed. Bootmills Ltd also needs different
thicknesses of raw materials to make different parts of the boots.

Bootmills Ltd offers a 3-month refund policy for any boots which are faulty. Faults
include where stitching comes undone or where the leather cracks. Very few boots are
returned to the company because of faults.

*14*
IB/M/Jun24/8132/1
[email protected] - John - Khala 15
Do not write
outside the
0 3 . 1 State one benefit to a business of providing a high level of customer service. box

[1 mark]

0 3 . 2 Explain one benefit to Bootmills Ltd of using total quality management (TQM).

You should use information in Item C in your answer.

[4 marks]

Question 3 continues on the next page

Turn over ►

*15*
IB/M/Jun24/8132/1
[email protected] - John - Khala 16
Do not write
outside the
0 3 . 3 Bootmills Ltd recently started using local suppliers of raw materials who have agreed box

to meet its needs.

Analyse one factor which would have been considered when making the decision to
change suppliers.
[6 marks]

Extra space

*16*
IB/M/Jun24/8132/1
[email protected] - John - Khala 17
Do not write
outside the
Item D: Bootmills Ltd box

Bootmills Ltd sells boots to retailers around the world. 2023 was a very successful
year. Profits increased by 43% to £64.3 million. Sales of boots abroad account for
60% of total sales. Half of these are in Europe. Raw materials are sourced in the
UK. The variable cost of each pair of boots is £50.

The business has 1300 employees. The average salary is £38 000 a year which is
higher than competitors’ salaries. Employee turnover is low. In 2023, a
profit-sharing bonus of 5% was awarded to all employees who have worked for the
business for over 12 months.

Table 1 Exchange rate of the pound to the euro

November December January February March

£1 = 1.19 € 1.20 € 1.18 € 1.17 € 1.17 €

0 3 . 4 Explain how one financial method of motivation is being used at Bootmills Ltd to
motivate employees. You should use the information in Item D in your answer.
[4 marks]

Question 3 continues on the next page

Turn over ►

*17*
IB/M/Jun24/8132/1
[email protected] - John - Khala 18
Do not write
outside the
0 3 . 5 Calculate the percentage (%) change in the value of the pound against the value of box

the euro from December to March.

Use the information in Table 1 in your calculation.

Show your workings.

[4 marks]

*18*
IB/M/Jun24/8132/1
[email protected] - John - Khala 19
Do not write
outside the
0 3 . 6 In Europe, Bootmills Ltd sells boots to retailers for an average of £95. The business box

plans to maintain this selling price.

Analyse one impact of the falling value of the pound on the profits of Bootmills Ltd.
[6 marks]

Extra space

Question 3 continues on the next page

Turn over ►

*19*
IB/M/Jun24/8132/1
[email protected] - John - Khala 20
Do not write
outside the
Item E: Bootmills Ltd box

Bootmills Ltd is the market leader in the UK. To improve profits, Bootmills Ltd must
increase sales to China and the USA. However, international markets are highly
competitive. Boots are currently sold for an average of £95 to retailers. The
variable cost of each pair of boots is £50.

In China, retailers prefer ‘face-to-face’ meetings with the manufacturer. Chinese

retailers are prepared to pay a premium price for British brands. The size of the
Chinese boot market is $79 billion for sales of all brands.

Retailers in the USA have indicated that they are more likely to buy the product if
the price can be reduced to £70. The size of the USA boot market is $99 billion for
sales of all brands.

Bootmills Ltd’s directors are considering two options.

Introducing flow production.

Boots can be made quickly using a fully automated process. The skilled workforce
will be offered jobs elsewhere in the business. There will be an estimated 300
redundancies. Employees have indicated they will strike if this many jobs are lost.

The savings on salaries over 2 years will cover the cost of the new machinery and
redundancies. After this, the cost saving can be passed on to customers. The
variable costs of production will fall to £20 per pair of boots.

Changing the role of the workforce.

Bootmills Ltd currently has 50 employees who deal with sales over the telephone
and email. Thirty of these employees could change to being based abroad in
countries such as China and the USA. These employees will meet with the local
retailers to:

• show new designs

• take orders
• get feedback on the needs and wants of customers in overseas markets.

These employees will be offered a £10 000 pay rise. The directors are confident
many of the existing sales team will be interested in working abroad. This should
reduce redundancies.

Recruiting and training for the new role should take 8 months.

*20*
IB/M/Jun24/8132/1
[email protected] - John - Khala 21
Do not write
outside the
0 3 . 7 Bootmills Ltd wishes to make its boots more competitive abroad. The directors are box

considering two options.

1. Introducing flow production.

2. Changing the role of the workforce.

Analyse the effect of each of these two options on Bootmills Ltd.

Evaluate which of these two options will have the bigger impact on Bootmills Ltd
competing internationally.
[12 marks]

Turn over ►

*21*
IB/M/Jun24/8132/1
[email protected] - John - Khala
22
Do not write
outside the
box

Extra space

37

END OF QUESTIONS

*22*
IB/M/Jun24/8132/1
[email protected] - John - Khala
23
Do not write
outside the
There are no questions printed on this page box

DO NOT WRITE ON THIS PAGE

ANSWER IN THE SPACES PROVIDED

*23*
IB/M/Jun24/8132/1
[email protected] - John - Khala
24
Do not write
outside the
box
Question Additional page, if required.
number Write the question numbers in the left-hand margin.

*24*
IB/M/Jun24/8132/1
[email protected] - John - Khala
25
Do not write
outside the
box
Question Additional page, if required.
number Write the question numbers in the left-hand margin.

*25*
IB/M/Jun24/8132/1
[email protected] - John - Khala
26
Do not write
outside the
box
Question Additional page, if required.
number Write the question numbers in the left-hand margin.

*26*
IB/M/Jun24/8132/1
[email protected] - John - Khala
27
Do not write
outside the
box
Question Additional page, if required.
number Write the question numbers in the left-hand margin.

*27*
IB/M/Jun24/8132/1
[email protected] - John - Khala 28
Do not write
outside the
There are no questions printed on this page box

DO NOT WRITE ON THIS PAGE

ANSWER IN THE SPACES PROVIDED

Copyright information

For confidentiality purposes, all acknowledgements of third-party copyright material are published in a separate booklet. This booklet is published after
each live examination series and is available for free download from www.aqa.org.uk.

Permission to reproduce all copyright material has been applied for. In some cases, efforts to contact copyright-holders may have been unsuccessful
and AQA will be happy to rectify any omissions of acknowledgements. If you have any queries please contact the Copyright Team.

Copyright © 2024 AQA and its licensors. All rights reserved.

*246g8132/1*
*28*
IB/M/Jun24/8132/1