1、BUSINESS AND MANAGEMENT PAPER 1 CASE STUDY PACKSTANDARD LEVEL MOCK EXAM MARK SCHEMEPAPER 1CASE STUDY: ROYAL DANISH BEARINGS (RDB)For use in May and November 2013TEACHERS NOTES These are suggested answers only Teachers should use their professional judgment in awarding answers that may not be include
2、d in this mark schemeSECTION A1.(a)Define the following terms:(i)workforce planning (line 99).2 marksWorkforce planning is the continual human resource planning process of aligning the needs and priorities of an organization with those of its workforce. It involves an examination of the current size
3、 and skills of the workforce with the organizations future human resource needs. For RDB, this helps to ensure they get the right number of workers with the right skills and experiences at the right timeAward 1 mark for a basic definition that conveys partial knowledge and understanding of workforce
4、 planning.Award 2 marks for a full, clear definition that conveys knowledge and understanding similar to the answer above.For only a relevant example or application to the RDB case study award 1 mark.(ii)retrenchment (line 133).2 marksAlso known as redundancy, retrenchment occurs when workers are le
5、gally dismissed because their job no longer exists, perhaps because of a restructuring of a companys workforce to suit its revised operational objectives. Retrenchment would be inevitable if Anna Holstein sells the two RDB megafactories in northern Germany and Sweden.Award 1 mark for a basic definit
6、ion that conveys partial knowledge and understanding of retrenchment.Award 2 marks for a full, clear definition that conveys knowledge and understanding similar to the answer above.For only a relevant example or application to the case study award 1 mark.(b)With reference to RDB, distinguish between
7、 operational objectives (line 152) and strategic objectives.4 marksAn operational objective (or tactical objective) is a short-term goal that is in line with the organizations overall long-term targets. Typically, operational objectives have a time frame of less than a year. In the case of RDB, a ke
8、y operational objective is to make the marketing department less sleepy.By contrast, a strategic objective is a medium-term goal used to achieve the overall strategic goal of an organization. Typical strategic objectives include growth (expansion), market leadership, green targets and profit maximiz
9、ation. Anna Holsteins strategic objective is to grow RDB by restructuring and using local staff around the world (offshoring), mainly in China, Brazil and India (lines 96-99).Award 1 2 marks if the terms are outlined although they lack some detail/clarity. Examples may also be missing. There is no a
10、ttempt to distinguish between the two terms.Award 3 4 marks if both terms are clearly understood and a distinction is made. There is good use of examples and proficient use of business and management terminology.(c)Using at least one content theory of motivation, examine the factors that affect the
11、level of motivation at RDB.7 marksContent theories of motivation explain the actual factors that motivate people, i.e. what motivates. F.W. Taylor, for example, looked at scientific management whilst McClelland studied the need for achievement, affiliation and power. Theories that students could app
12、ly comprise of the following: F.W. Taylor Scientific management, e.g. staff being well paid (line 49) A. Maslow Hierarchy of needs, e.g. job security (line 53) would go some way to addressing workers safety needs; staff enjoy working in a culturally homogeneous environment (lines 49-50) or feeling p
13、art of the family (line 52) could address workers belonging needs; but the lack of opportunities for promotion (line 47) could hinder some peoples esteem needs D. McGregor Theory X and Theory Y managers, e.g. Anna Holstein has less empathy for the factory floor workers (line 70) compared to Valdemar
14、 Holstein who has a paternalistic leadership style (line 45) and wanted to protect jobs in Denmark (line 130) Herzberg Two-factory theory (hygiene factors and motivators), e.g. the working environment as a hygiene factor (lines 53-54)Accept any other relevant factor(s) that examine the factors affec
15、ting the level of motivation at RDB.Award 1 to 2 marks if the answer shows some understanding of the factors that affect the level of motivation at RDB. The answer lacks detail and makes minimal use of appropriate business and management terminology. No reference is made to the RDB case study.Award
16、3 to 5 marks for a descriptive or partial examination. There is a good understanding of the factors that affect the level of motivation at RDB. There is appropriate use of business and management terminology with some reference made to the RDB case study. At the lower end of the markband, the respon
17、se is mainly theoretical and lacks clear application. Award 6 to 7 marks for a balanced examination with accurate and detailed understanding of the factors that affect the level of motivation at RDB, using relevant content theory(ies) of motivation. There is appropriate use of business and managemen
18、t terminology and theory throughout the response, with explicit references to the RDB case study.2.(a)Define the following terms:(i)economies of scale (line 16).2 marksThese are cost-saving benefits from operating on a large scale. For example, by mass producing ball bearings, RDB can save on its un
19、it costs by buying raw materials and components in bulk, by using sophisticated technology to raise productivity and by gaining easier access to low-cost finance.Award 1 mark for a basic definition that conveys partial knowledge and understanding of economies of scale.Award 2 marks for a full, clear
20、 definition that conveys knowledge and understanding similar to the answer above.For only a relevant example or application to the RDB case study award 1 mark.(ii)strategic alliances (line 155).2 marksA strategic alliance is a form of external (inorganic) growth, involving two or more companies work
21、ing together on a particular project. Valdemar Holstein suggested forming strategic alliances with ball bearings companies to expand in Brazil, India and China.Award 1 mark for a basic definition that conveys partial knowledge and understanding of strategic alliances.Award 2 marks for a full, clear
22、definition that conveys knowledge and understanding similar to the answer above.For only a relevant example or application to the RDB case study award 1 mark.(b)Prepare a SWOT analysis showing only the strengths and weaknesses of RDB.4 marksA SWOT analysis provides a framework for decision makers at
23、 RDB to consider factors in both the internal and the external business environment that affect the companys operations. The internal factors can be classified as either strengths or weaknesses within the organization. These include:Strengths of RDB Successful multinational company in the ball beari
24、ngs industry (line 1) Highly skilled workforce (line 15) Megafactories allow RDB to benefit from several types of economies of scale (line 16) Held in high esteem both locally and regionally in Europe by being the main employer in these areas (lines 17-18) Ball bearings from RDB are perceived to be
25、of higher quality than those of rival firms (line 19) Well-established reputation for high quality (line 24) Profitable (line 38) Brand loyalty (line 38) Employees are appreciative of job security (lines 53-54) Flexibility in production methods; job, batch and flow used (lines 63-65) Strong ties wit
26、h the Danish government (lines 129-130) Public-private partnership projects with the Swedish and German governments (lines 131-132)Weaknesses of RDB Gross profit margin and net profit margin both lower than before (lines 38-39) Lack of attention to maintenance and technological upgrades (lines 40-41
27、) Avoidance technique used in response to pressure groups (lines 41-43) Few opportunities for staff to be promoted (line 47) Modernist structures in the RDB megafactories are outdated for the 21st Century (lines 80-81) Staff have a lack of cultural understanding of their customers (lines 85-86) A sl
28、eepy marketing department (line 108) Small marketing budget and unchallenging marketing objectives (line 108) Advertising and promotion limited to trade journals and trade shows only (line 109)Accept any other relevant strengths or weaknesses.Award 1 to 2 marks if the SWOT analysis is limited, with
29、some evidence of understanding of strengths and weaknesses at RDB. The answer may be theoretical, with little reference to the case study. Award a maximum of 2 marks if only strengths or only weaknesses are used.Award 3 to 4 marks if the SWOT analysis shows a clear understanding of both the strength
30、s and weaknesses of RDB, with specific reference to the information in the case study. At the top end of the markband, there is a clear and detailed analysis although it does not need to be as detailed as above (illustrative purposes only).(c)Examine the reasons for Anna Holsteins desire to downsize
31、 the workforce at the Danish megafactory (lines 96-97).7 marksDownsizing occurs when an organization reduces the size of its workforce. Downsizing would be inevitable if Anna Holstein reduces the scale of operations in the Denmark megafactory.Possible reasons (driving forces) for downsizing: Long te
32、rm labour cost savings as European workers would be too expensive (lines 168-169) Slowing demand for ball bearings in Europe (lines 76-77) Research suggested that manufacturing in the 21st Century would be accomplished in smaller and more flexible factories (lines 79-80) To improve logistics (distri
33、bution and delivery times) to the growing number of clients in Asia and South America (lines 87) Annas strategic priorities were to develop a global identity and to have a workforce beyond Europe Relocation (offshoring) production facilities to Brazil, China and India Green factories needed achieve
34、Annas vision (lines 95-96) The driving forces of globalization (line 170) necessitates changes at RDB The possibility of diseconomies of scale at the megafactory on DenmarkAccept any other relevant reason that is substantiated and examined in the context of the case study.Award 1 to 2 marks for an a
35、nswer that shows some understanding of the reasons for downsizing. The response may be superficial and lacks depth of analysis. There is no reference made to the RDB case study.Award 3 to 5 marks for an answer that is descriptive and shows evidence of partial analysis. There is an understanding of t
36、he reasons for downsizing, with some use of appropriate business and management terminology. Some reference is made to the RDB case study. Award a maximum of 3 marks if only one valid reason is examined.Award 6 to 7 marks for a detailed analysis of the reasons for downsizing at RDB. There is accurat
37、e and appropriate use of business and management terminology with explicit references made to the RDB case study.3.(a)Identify two characteristics of an autocratic leader (line 46).2 marksCharacteristics of an autocratic leader could include someone who: Makes autonomous decisions without consultati
38、on or regard for his/her subordinates Dictates all work methods and processes Has absolute and authoritarian control over a group of workers Is largely unreceptive to changes in the business environmentAccept any other valid characteristic of an autocratic leader.Award 1 mark for each characteristic
39、 of an autocratic leader that is correctly identified, up to a maximum of 2 marks.(b)(i)Define the term just-in-time (line 26).2 marksJust-in-time is a method of stock control used in the production process whereby materials and components are scheduled to arrive precisely when they are needed for p
40、roduction. JIT is a prerequisite to lean production (efficiency) because holding large volumes of stock (inventory) can be very costly and wasteful.Award 1 mark for a basic definition that shows partial knowledge and understanding of just-in-time.Award 2 marks for a full, clear definition that shows
41、 knowledge and understanding similar to the answer above.For only a relevant example or application to the case study award 1 mark.(b)Explain how a move to just-in-time production could help manufacturers to remain competitive (line 26).4 marksPossible reasons could include an explanation of: JIT cu
42、ts the costs of holding stock (inventory), such as insurance and the cost of theft or damage of inventories Moving to a just-in-time system eliminate the need for stockpiling, thereby shortening the working capital cycle JIT is part of lean production (the process of streamlining operations and proc
43、edures to reduce all forms of waste); thus, JIT helps to reduced costs for ball bearings manufacturers such as RDB JIT also encourage a right first time approach; striving for zero defects makes better use of scarce and expensive resources JIT allows RDB to be more flexible and responsive to the nee
44、ds of their customers (lines 27 and 80)Accept any other valid reason that is clearly explained in the context of the RDB case study.Award 1 mark for each valid reason identified up to a maximum of 2 marks, and 1 mark for a correct explanation of the reason, up to a maximum of 2 marks.(c)Examine the
45、advantages of operating smaller factories as opposed to RDBs current operational model of megafactories.7 marksAdvantages of operating smaller factories include: Greater flexibility (line 80) Relatively easier to implement just-in-time production using smaller factories Local knowledge by using a lo
46、cally hired manager (line 101) Reduced need to tall hierarchical structures (line 35), thus benefiting from flatter structures at RDB Improved distribution channels by being located nearer to the growing number of customers in Asia and South AmericaHowever, operating megafactories can also bring adv
47、antages to RDB, such as: Greater opportunities for achieving economies of scale Having a presence in the industry/country, creating thousands of jobs (line 17) and being held in high esteem A large family community/culture from being located in three European megafactories, rather than twelve smaller factories spread around the worldAccept any other relevant point that is substantiated.Award 1 to 2 marks for an answer that shows some knowledge and understanding of the advantages of operating smaller factorie
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