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Marks and Spencer plc Marks and Spencer (M&S) is one of the UK’s leading retailers - OCR - GCSE Business - Question 18 - 2019 - Paper 1
Question 18
Marks and Spencer plc Marks and Spencer (M&S) is one of the UK’s leading retailers. It is committed to making every moment special for its customers, through its hi... show full transcript
Worked Solution & Example Answer:Marks and Spencer plc Marks and Spencer (M&S) is one of the UK’s leading retailers - OCR - GCSE Business - Question 18 - 2019 - Paper 1
Step 1
Identify one disadvantage to M&S of selling its food using e-commerce.
Answer
One disadvantage of selling food through e-commerce for M&S is the potential for increased delivery costs. These additional costs could impact profit margins, especially if customers expect low or free delivery options.
Step 2
Analyse how M&S’s ‘Plan A’ ethical programme may impact on the profitability of the business.
Answer
M&S’s ‘Plan A’ ethical programme can enhance profitability by attracting ethically-conscious consumers who may prefer purchasing from a brand that demonstrates social responsibility. Additionally, investing in employee well-being can lead to improved productivity and reduced turnover, thereby lowering recruitment costs. However, the initial investment in ethical practices, like sustainable sourcing and employee welfare programs, might increase operational costs in the short term. Over time, these practices could lead to enhanced brand loyalty and potentially higher sales.
Step 3
Analyse one reason why quality is important to M&S.
Answer
Quality is vital for M&S as it directly affects customer satisfaction and brand reputation. High-quality products can lead to customer loyalty and repeat purchases, resulting in steady revenue. For M&S, known for its premium products, maintaining a high standard is essential, as any decline in quality can lead to negative perceptions and loss of market share. Ultimately, consistent quality reinforces M&S’s brand image as a retailer that prioritizes customer experience.
Step 4
Analyse one advantage and one disadvantage to the Montana Bakery of switching from batch production to flow production.
Answer
An advantage of switching to flow production for the Montana Bakery is increased efficiency, as this method allows for continuous operation and can significantly reduce production time and costs per unit. In contrast, a disadvantage may be the reduced flexibility, as flow production often implies a high degree of specialization and can make it challenging to switch between different products quickly.
Step 5
Recommend whether the Montana Bakery should switch from batch production to flow production in the new factory.
Answer
The Montana Bakery should consider switching to flow production as it aligns with their goal of increasing efficiency and scaling up production output. This approach can help meet the demand for their products more effectively, especially if they anticipate growth in sales. However, careful consideration of the implications for product variety and workforce skills is essential, as the initial transition may require employee training and adjustments in workflow.
Step 6
Evaluate how the ethical treatment of workers may have an impact on the motivation and retention of M&S’s staff.
Answer
The ethical treatment of workers at M&S may significantly enhance motivation and retention rates among staff. Employees who feel valued, respected, and well-compensated are likely to experience higher job satisfaction, which can lead to increased productivity and a reduced turnover rate. On the contrary, if M&S fails to uphold its ethical commitments, it risks damaging employee trust and morale, possibly leading to higher attrition rates. Thus, maintaining an ethical workplace can be a cornerstone for M&S in fostering a productive and loyal workforce.