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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 to M&S of selling its food using e-commerce is the potential increase in delivery costs. When selling food online, M&S must invest in logistics and delivery infrastructure, which can lead to higher operational costs, particularly for perishable items.
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 may enhance its profitability in several ways. Firstly, by promoting sustainable practices, M&S can attract environmentally-conscious consumers, thereby increasing sales. Secondly, improved staff wellbeing and community engagement can lead to higher employee satisfaction and retention, which reduces turnover costs and increases productivity. However, implementing such ethical initiatives may come with short-term costs, such as investments in ethical sourcing and employee training, which could initially impact profit margins.
Step 3
Analyse one reason why quality is important to M&S.
Answer
Quality is crucial for M&S because it directly impacts customer satisfaction and brand reputation. M&S is known for its high-quality products; thus, maintaining this standard is essential for retaining customer loyalty. If customers experience lower quality, it could lead to negative reviews and a decline in sales, adversely affecting profitability.
Step 4
Analyse one advantage and one disadvantage to the Montana Bakery of switching from batch production to flow production in the new factory.
Answer
An advantage of switching to flow production for the Montana Bakery is increased efficiency, as this method allows for the continuous production of goods, reducing downtime and potentially increasing output. However, a disadvantage could be the initial investment required for new machinery and equipment, which may be costly and requires time to become fully operational.
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 if the volume of demand is high, as this method can significantly enhance efficiency and reduce costs in the long run. However, careful analysis of demand patterns and the financial implications of such a switch is necessary before making a final recommendation.
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 is likely to positively impact motivation and retention. When employees feel valued and supported, they are more likely to be engaged and committed to their jobs. This can lead to higher productivity and lower turnover rates. On the contrary, neglecting ethical treatment can result in dissatisfaction and increased recruitment costs due to high turnover. Furthermore, organizations that prioritize ethical treatment often enjoy better public perception, enhancing their reputation as an employer and attracting talent.