CAIE A-Level Business 7.2.5 Management's Role in Communication

Analyse two disadvantages to GBS of its proposed communication process innovation.

Level

2

3-4 marks

Developed analysis

- Developed analysis that identifies connections between causes, impacts and/or consequences of two points.

- Developed analysis that identifies connections between causes, impacts and/or consequences of one point.

1-2 marks

Limited analysis

- Limited analysis that identifies connections between causes, impacts and/or consequences of two points.

- Limited analysis that identifies connections between causes, impacts and/or consequences of one point.

0 marks

No creditable response.

2

Note:

- Only reward problems / disadvantages.

- If more than two problems are referred to, reward the best two.

- L2AN (3 marks) is possible for just one point made.

All annotation ( $\mathbb{K}$ ase $|\mathrm{AN}|^{[2]}$ ) should be in the left margin.

Indicative content

AO1 Knowledge and understanding

- Definition or explanation of process innovation (max K 1 mark).

- Application or introduction of a new technology or methods/systems that increase efficiency.

- Examples include new IT systems, use of blockchain, automated payments or inventory, robotics.

- Possibility that the changes form part of an ERP system.

Possible disadvantages include (max K 2 marks):

- Cost of the proposals and need for finance.

- Possible employee resistance to change.

- Cost of training employees.

- Technology may fail.

2

AO2 Application

Limited application, ${ }^{\mathrm{APP}}$ applies knowledge to GBS once.

Developed application, ${ }^{\text {APP }}+{ }^{\text {APP }}$ applies knowledge to GBS twice.

Max one ${ }^{\text {APP }}$ for application for the first problem and max one ${ }^{\text {APP }}$ for application for the second problem.

- Number of employees (13) - will need training.

- Low inventory.

- Proposal includes coordinated IT system linking customer orders and distribution.

- Tracking of orders of sand & gravel.

- Gordy is thinking of expanding the business.

- Finance needed for new grinding machine.

AO3 Analysis

Limited analysis ${ }^{\mathrm{AN}}$ - candidate shows one link in the chain of analysis.

Developed analysis L2AN - candidate shows two or more links in the chain of analysis.

- A new IT system could be expensive to implement resulting in cash flow problems AN .

- Employees may feel they have less control as a result of the process innovation. This may result in conflict and disturb current effective working relationships and employees may leave AN increasing recruitment costs L2AN.

- Employees will need training which will increase costs and reduce profit in the short term L2AN.

- Opportunity cost of investment which could delay the purchase of the new grinding machine ${ }^{\text {AN }}$ therefore reducing the ability of GBS to meet increasing demand L2AN.

- The app could crash causing customers to be unable to place orders ${ }^{\text {AN }}$ and going elsewhere to purchase building materials ${ }^{\mathrm{APP}}$ resulting in a loss of sales and therefore profit.

Accept all valid responses.