Business 0450 · IGCSE · Internal and external communication
Internal and external communication — practice question
JKL makes clocks by using job production. It sources all its raw materials from local suppliers and sells 60% of its products overseas. The business has high fixed costs. JKL employs 30 skilled workers. Many work part-time, and delegation is encouraged. Every day, management sends all employees an email so they stay informed about production problems. The Human Resources Director said: ‘I believe it would be more cost-effective to keep our current workers than to hire new employees.’ The Director also wants to cut communication barriers, because he understands that effective communication is vital if JKL is to achieve its objectives.
(a)[2]
Identify two reasons why a business may set objectives.
(b)[2]
Identify two fixed costs that JKL has.
(c)[4]
Identify and explain one benefit and one drawback to JKL of using job production.
(d)[6]
Identify two possible barriers to communication that JKL may face. For each barrier, explain how JKL could reduce or remove it.
(e)[6]
Do you agree that JKL would be better off trying to keep existing workers rather than hiring new employees? 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: “Gives the business a target or aim” …