WKN sells household products, including plates and brushes. In the previous year, sales in WKN’s 200 shops went up, but profit dropped by 80% to $5m. WKN’s Human Resources Director said: ‘All retailers are finding this part of the business cycle difficult. WKN must reorganise the business. This will create redundancy for 1800 shop workers. WKN intends to create 100 new jobs in the marketing department at head office to help preserve customer loyalty. The company is cooperating with trade unions to make these changes happen.’ WKN must decide whether the candidates for the new jobs should be chosen from the workers who are being made redundant.
(a)[2]
Identify any two stages of the business cycle.
(b)[2]
What is meant by the term ‘redundancy’?
(c)[4]
Identify and explain two ways a trade union could support WKN’s employees.
(d)[6]
Do you think WKN ought to select every worker for the new jobs from those who are about to be made redundant? Justify your answer.
(e)[6]
Should WKN appoint all of the workers for the new jobs from among those who are about to be made redundant? 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: “Growth stage” …