This was further explained by the likely high level

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Unformatted text preview: a different pricing strategy (skimming) from their competitors (penetration). This was further explained by the likely high level of customer loyalty. A few candidates made the mistake of thinking that a higher price for an elastic product meant higher profits rather than revenues. Many candidates found difficulty in contextualising their answer providing very general answers on the role of HRM rather than addressing the specific HRM issues facing CC. A significant number of other answers ignored the HRM dimension to the question. Good answers attempted to compare the home work force with a likely work force in the overseas location, and how such issues could be addressed by HRM. These issues included likely skills levels plus the need for training in such an industry, language and cultural issues, pay levels and organisational problems. The best answers tried to address these problems in terms of retaining the HRM strengths of the existing business including a strong family atmosphere, loyal work force and an ethical approach, and attempted to prioritise the difficulties. 5 © UCLES 2008 9707 Business Studies November 2008 (d) This question was the least well done on the paper. In part this is a reflection of the fact that it is the last question. Strong answers looked at the balance between behaving ethically (usp, positive impact on customers, employees, the community etc.) and the added costs (negative impact on prices, competitiveness etc.). The best answers attempted to determine whether the benefits were likely to outweigh the costs and often focused on the link between behaving ethically and gaining customer loyalty. A very small number of candidates confused “ethics” with “ethnics”. A common mistake was to confuse ethical behaviour with compliance with legal requirements. Candidates should be clear that ethics is a matter of internal decision (a business can chose whether or not to behave ethically) whereas the law is an external constraint on all businesses. 6 © UCLES 2008 9707 Business Studies November 2008 BUSINESS STUDIES Paper 9707/03 Case Study General comments The text and the appendices of this case study paper proved to be very accessible. There were very few problems with misunderstanding the basic issues contained in the text and the quantitative data was effectively used in a good proportion of scripts. There was little evidence of major time constraints even though there is a considerable quantity of written text and numerical data for candidates to read and assimilate. In fact, time management was often of a high standard with very few candidates failing to reach Section B or giving a rushed “bullet point” type answer to the essay question. There were very few examples of candidates misunderstanding the demands of the questions either which suggests that they were clearly worded. This does not mean that all of the answers were very good or were all well focused but the number of answers that seemed to be attempted responses to completely different questions were few and far between. Variations between candidates’ responses fro...
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This document was uploaded on 11/18/2013.

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