Business 0450 · IGCSE · Business objectives and stakeholder objectives
Business objectives and stakeholder objectives — practice question
CFE produces high-quality steel for shipbuilding. 40% of its output is exported. CFE’s machinery is old and often breaks down. CFE intends to downsize (reduce) its workforce and 1200 of its 2100 skilled employees could be made redundant. The Managing Director says demand has fallen because of recession in some economies. A trade union spokeswoman asked: ‘Where are the opportunities from globalisation?’ This action will influence many stakeholder groups. There must be some other method for CFE to cut costs.’
(a)[2]
What does the term ‘trade union’ mean?
(b)[2]
Identify two possible reasons (other than lower demand for steel) that might make workforce downsizing necessary.
(c)[4]
Identify and explain two opportunities for CFE from globalisation.
(d)[6]
Identify two external stakeholder groups. Explain how each group might be affected by CFE’s choice to downsize the workforce.
(e)[6]
Do you think that cutting the number of employees is the best way for CFE to reduce costs? Justify your answer.
Worked solution & mark scheme
This 20-mark question has a full step-by-step worked solution and mark scheme. One marking point: “A group of workers who come together to protect their interests” …