Section 2 people in business Solved Paper 2 style (page 128)

Paper 2 style 1 hour and 45 minutes.5 questions20 min each plus 5 min of reading case study

1 a) Identify and explain 2 reasons why well motivated employees are important for the restaurant.[8] 2 marks for knowledge; 2 marks for application and 4 marks for explanation/analysis.

With motivation they will be more productive since they will work harder and with better commitment. This will generate better quality in the meals and room service, leading to more customer satisfaction, meaning more sales, revenue and profits for the restaurant. On the other hand, the company could decrease its cost by less amount of mistakes made by the motivated employees with carefuly managing better the food, and improving the cooking process.

b) Chris and Abdul have advertised a job vacancy for a restaurant manager. Look at Appendix 2, compare the 2 job applicants and decide who you would choose to employ. Justify the reasons for your choice.[12]

Application: Well applied to case. At least two examples of reference to, or use of, the case.

Knowledge/Analysis/ Evaluation: Good discussion of advantages/disadvantages of each
option AND balanced argument. Good judgement shown in recommendation
about the best option to choose compared to the other options.

I would choose Mr N Guitano since C. and A. are looking for someone who could motivate employees and Mr G. likes managing with a democratic style and has greater experience managing, therefore he will empower the employees generating a better environment for them to work. Also we could say the Mr G has a vocational attitude towards looking after the accounts and being tidy with money not only because he has been managing restaurants during the last 20 years but also because he does help keeping the accounts for a NGO during his spare time. Regarding how he would increase the amount of customers on weekends and the quality of the service, I could say that since he doesn´t have family he could spend the weekends specially working harder than the previous manager or the other applicant Mr Patel who has children and loves sports which tipically are played during weekends.

2 a) The Lakeview Restaurant is expanding. Identify and explain 2 reasons why an organization chart would be helpful to the management of the restaurant. [8]

Because it will quickly show how any employee inside the restaurant is linked with the others, as an example which kitchen hand will receive orders from which cooker,. We could also name its importance regarding flow of communication, orders and sense of belonging, for example which waiter will serve which group of customers and how to avoid overlapping tasks with the sommelier for the same tables.

b) The restaurant needs to communicate with its suppliers to order its weekly food ingredients. Consider the advantages and disadvantages of using email, letter or telephone. Recommend which is the best method for C & A to use. Justify your answer. [12]

I would recommend the email because of its advantages in comparison with the other two methods. Since it is a written and electronic mean of communication will be more effective, precise, ordered, stable, structured and brief compared with telephone and will be delivered and replied faster than letter. Also comparing with letter we could say that is saving paper, ink and time. The last idea is because you will be sending a similar spreadsheet weekly and the purchase manager will only change the quantity,and the supplier could use the same electronic file to quickly show the lack of any specific ingredient or a change in price or specifications connected with delivery. One disadvantage of the email is that if its the only way of communicating with the supplier,this relationship will get colder, not familiar, not intimate, it could decrease a trustable supplier client relationship with the lack of voice and body language communication.

3 a) The Lakeview Restaurant is located near several restaurants which are competitors. Explain 1 advantage and 1 disadvantage to the business of being located near to competitors.

Adv: the proximity will make clearer the differences in service, and will help managers to pay more attention on how to diferenciate the product from its rival.

Disadv: the competitor could start competing by decreasing the price of similar meals therefore a price war could start with the market loosing quality and profits, and may be customers deciding on eating at home instead of dine out.

b) Consider the advantages and disadvantages of the two options for the restaurant business to expand. Recommend which option C&A should choose. Justify your choice.

I would recommend the buying ship option. Firstly I could say that because they want to hire new employees and unemployment is higher in the current location than in the city centre they will be able to choose the best among the applicants for the different positions. Secondly, in just five years you could pay off the investment compared with the other project that will take ten years. Another reason could be that current customers will be maintained so the risk of the project is lower compared with one that would face a totally new demand that is unknown. Finally, if with the boat they are expecting to move the current family dining area, the business customer area could be expanded which not only will increase the amount of these kind of customers but also the average price of the meal served weekly since it says that they serve more expensive meal to them.

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