TFN is a travel business that sells holidays. It has 37 shops and 1000 employees. Last year TFN’s profit rose to $46 million. The Managing Director knows that strong customer service has helped to preserve customer loyalty. He said: ‘TFN’s managers use ideas from Herzberg’s two-factor theory to help motivate employees. All employees receive off-the-job training and each manager has a wide span of control.’
(a)[2]
Identify two advantages that maintaining customer loyalty can bring to a business.
(b)[2]
Identify any two hygiene factors in Herzberg’s two-factor theory.
(c)[4]
Outline two reasons why profit could be significant to TFN.
(d)[6]
Explain one advantage and one disadvantage to TFN of its managers having a wide span of control.
(e)[6]
Do you think off-the-job training is the most suitable training method 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 business/higher sales” …