AQA GCSE BUSINESS Paper 1 Influences

of operations and HRM on business

activity BUSINESS QP 2023

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GCSE AQA GCSE BUSINESS Paper 1 Influences of operations and HRM on business activity BUSINESS QP 2023

Paper 1 Influences of operations and HRM on business activity

Thursday 18 May 2023 Afternoon Time allowed: 1 hour 45 For Examiner’s Use
minutes
Materials Question Mark
For this paper you must have: A
• a calculator.
B
Instructions
• Use black ink or black ball-point pen.
C
• Fill in the boxes at the top of this page.
• Answer all questions.
• You must answer the questions in the spaces provided. Do not write outside TOTAL

Please write clearly in block capitals.

Centre number Candidate number

Surname

Forename(s)

Candidate signature
I declare this is my own work.
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.

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Section A

Answer all questions in the spaces provided.

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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 true for a public limited company?

[1 mark]

A It can issue shares.

B It does not have profit as an objective.

C It is owned by the government.

0 1

D Its owner(s) have unlimited liability.

.2 Which of the following costs is an example of a variable cost?

[1 mark]

A Advertising

B Interest

C Packaging

D Rent

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*02*

0 1 .3
Which of the following statements describes job production?
[1 mark]

A An employee focuses on a limited number of tasks.

B Each employee is given an individual task.

C Items are produced individually to meet the exact

requirements of a customer.

D The business aims to complete each task with minimum

waste.

0 1 .4
If an employee changes from full-time employment to job sharing, which of the
following is true?
[1 mark]

A They keep their current salary.

B They keep the same job role along with someone else.

C They work their current number of hours each week.

D They work their current start and finish times each day.

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Which of the following is likely to be an effect of delayering in an organisation?

0 1 .5 [1 mark]

A Decrease in delegation.

B Decrease span of control.

C Improved staff communication.

D Improved staff loyalty.

Question 1 continues on the next page

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Section B

Answer all questions in the spaces provided.

20

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0 2 Item A: Xanthe’s Tech-Academy

Xanthe’s Tech-Academy (XTA) is a company that sells off the job training to other
businesses, and courses for individuals to improve their IT skills. It has a reputation
for high quality classroom-based IT courses where attendees gain a certificate. It
has a very small training facility in the centre of Manchester which only allows for
up to 20 individuals to train each day. Courses range in length from one to three
days and prices start at £100 per day for attendees. It operates in a competitive
market. XTA’s customers are locally based. Many of its business customers are
cutting back on training to save costs.

Many people are increasingly working from home, and the owner Xanthe is
considering expanding the business to target this new market segment. She would
like to introduce a new online training course called ‘Using Web Conferencing
Effectively’. The course will be run by employees working from home and offered in
the evenings to anyone in the UK who has access to the internet and a device with
a webcam.

Table 1: Costs for new course ‘Using Web Conferencing Effectively’

Wages
£15
(per hour per trainer)
XTA other costs for running new
£5
course (per trainee)

0 2

.1 Explain what is meant by ‘off the job’ training.

[2 marks]

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0 2 . 2 Xanthe has set a target to make 200% profit on top of costs each time the new course
is run.

Two trainers will run the four-hour course with 30 people attending.

Using Table 1 calculate the selling price per person.

[5 marks]

Question 2 continues on the next page

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0 2 . 3 Xanthe believes increasing the range of courses offered will keep the business
competitive.
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0 2 . 5 Xanthe uses delegation to give employees greater levels of responsibility.

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0 2 . 6 Xanthe involves her employees in some decision making but she makes all major
decisions herself.
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Section C

Answer all questions in the spaces provided.

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0 3 Item C: NIST cars

NIST is a car manufacturer which has one of its factories in the UK. All of the cars
made there are sold in the UK and Europe.

The factory uses flow production. Employees are specialists, trained in one specific
role of the production process. All the employees have responsibility for checking if
faults exist. Employees are trained to check their work thoroughly. Mistakes must be
identified before a car moves to the next stage of production. The total production of a
car takes 28 hours.

The factory in the UK recently won an award for being ‘The UK manufacturer of the
year’. Quality standards are exceptionally high. In the last five years every car has
reached the end of the production process without a fault present.

Recently the business has experienced issues with car parts. A supplier providing
engine parts to NIST had to shut down for a day. As a result, NIST had to halt
production of its cars for several hours. NIST orders parts from suppliers when a
customer orders a car. Many suppliers are near to the factory. Some suppliers will
deliver parts in less than two hours and there are frequent small deliveries throughout
the day. The production of a car relies on parts arriving precisely when they are
needed.

Table 3: Electric cars and changes in exchange rates

March 2019 March 2020

Selling price of electric car £20 000 £20 000

Number of cars sold in Europe 20 000 25 000

Exchange rate: pound to Euro £1 = €1.10 £1 = €1.07

Costs in Euros to purchase car €22 000 €21 400

*14*
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0 3 . 1 Identify one sector of production.

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*15*

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0 3 . 3 NIST orders parts from suppliers when a customer orders a car.

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0 3 . 4 In the last five years every car has reached the end of the production process without
a fault present.
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Item D: NIST cars

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NIST sells its cars worldwide . The world experienced a fall in economic activity
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0 3 . 6 NIST used the graph to help forecast its profits for 2022.

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*19*

Electric cars help with reducing air pollution and there has been an increase in
demand for this type of car as there has been growing concern about the
environment. Europe has seen a huge rise in sales of electric cars. NIST has
one model of electric car called the Folio. The Folio is the UK’s market leader. In
Europe, however, sales of the Folio model have been disappointing. NIST has
now designed a new electric model called the NIST March, which is aimed at the
European market and will be produced in its factory in Spain.

The Folio is made in the UK factory which has the highest record for quality
standards and efficiency of all NIST factories. Electric engines are made in
Europe, which means the engines for the Folio have to be imported into the UK.
The fall in the value of the pound has made imports more expensive.
Transportation costs for cars sold from the UK in Europe have also risen.

Large cities in the UK are introducing a daily fee for cars entering the city; electric
cars are not charged this fee. This has opened up a new possible market to sell
electric cars to businesses who will be affected by this daily charge such as taxi
companies.

NIST will create an e-commerce website aiming to sell to businesses in the UK.
Cars can be ordered in large quantities and can be delivered anywhere in the UK
direct to the business customer. Technology will be used to show features of cars
using videos with a virtual test drive. The selling price will be lower than in car
showrooms if customers order more than one car. Delivery is included in the selling
price.

0 3

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Item E: NIST cars

.8 In the current economic climate, the selling price for a car cannot be increased. To
improve profits NIST must sell more cars next year. To increase the number of cars sold
NIST will be using these two options:

1. Produce the new electric car, the NIST March, at its factory in Spain.
2. Set up an e-commerce website to sell the existing Folio electric car to businesses
in the UK.

Analyse the effect of each of these two options for NIST.

Evaluate which of these two options will have the biggest impact on the number of
cars sold by NIST.
[12 marks]

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END OF QUESTIONS

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