TFN is a travel company that sells holidays. It operates 37 shops and employs 1000 people. In the previous year, TFN’s profit rose to $46 million$. The Managing Director recognises that strong customer service has helped to keep customers loyal. He said: ‘TFN’s managers apply ideas from Herzberg’s two-factor theory to motivate employees. Every employee receives off-the-job training and every manager has a broad span of control.’
(a)[2]
Identify two advantages for a business of retaining customer loyalty.
(b)[2]
Identify two hygiene factors within Herzberg’s two-factor theory.
(c)[4]
Outline two reasons why profit could be important to TFN.
(d)[6]
Explain one advantage and one disadvantage to TFN of its managers having a broad span of control.
(e)[6]
Do you think off-the-job training is the most suitable method of training for a service sector business to use? 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: “Repeat buying / higher sales” …