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A-Levels - Business Studies Solved Paper [o 2007] - Paper 3

A-Levels - Business Studies Solved Paper [o 2007] - Paper 3

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Published by Rafay Mahmood

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Published by: Rafay Mahmood on Jul 25, 2009
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Business StudiesOctober/November 2007Paper 32. (a) Analyze
two
possible problems that might result from the approach tomanaging staff used within the Asian Experience kitchen.Managing staff efficiently is essential for the smooth running of any businessand the eventual success of the firm. Managing styles vary from very autocratic andbased on central decision making, to a more relaxed approach like Lassie-Faireleadership style. Also managing styles vary from one manager to another and alsofrom one type of business to another. The style of management used in the Asian Experience kitchen is very autocratic,with very less feedback taken from the employees and very less room for initiativeleft for anyone. The people working in the ‘Asian Experience’ Kitchen would be verydiscontent with the management and they would all feel much degraded. This willlead to a very low level of moral and motivation among the employees. This can bevery harmful for the business as the employees will lose interest in the business andwill not take responsibility for anything. They will just wait to be told to do what theyare suppose to; this will halt the process of any improvement and will act like aplague and will stop the inside growth and maturing of the business completely!Another problem that ‘Asian Experience’ will have to deal with as a result of thistype of management is that there will most definitely be a very high rate of absenteeism and also a high rate of turnover for the employees. This will furtherincrease the work-load on the existing workers and this will probably lead to moreand more issues with the staff. There will be no possibility of any team building orany new ideas by the staff for any improvement. He staff working will be justlooking to get the minimum done with no effort to make anything better, and dosomething extra for the organization as all sympathies and good-will for thecompany and its management will be lost.Overall, the m0nagement style adopted by ‘Asian Experience’ is very poor, and theymight have to pay a very high price for it.2.(b) Evaluate the appropriateness of Ling’s approach to managing staff within theCurry Cuisine restaurant. The Style of management has a very direct impact on how well the business does. Agood manager with even a mediocre staff can do very well with a positivemanagement style, rather than the contrary. A good management style is what suitsthe business the best. There is no one good management style.For ‘Curry Cuisine’ it is important to have a liberal management style. This isbecause the staff hired will be very highly skilled and they will know how to best dotheir job. Delegating the responsibility to the staff in this case will lead to a highsense of responsibility amongst the work-force. This combined with a goodatmosphere and a good relationship with the management will raise the motivationlevels of the entire work-force. ‘Curry Cuisine’ being in the services business,requires people who will take every opportunity to satisfy the customers. Also thetype of food that ‘Curry Cuisine’ provides will be very conducive to any such positiveinitiative by any worker. In ‘Curry Cuisine’ every order is prepared separately andfresh after it has been ordered, a prime example of Job Production. In this type of production, a well motivated and responsible workforce will have a huge chance to
 
impress the customer and add further value to every meal. Overall an appropriatemanagement style for Curry Cuisine will be one in which the business can grow; thestaff feel as if they are truly a part of the company and they put in their best effortsto improve.Ling has been looking to employ highly skilled people who are capable of working inteams and with little or no supervision. This Ling hopes will ‘encourage initiative andresponsibility’ in the workers. This approach of management suits the type of business perfectly. The cooks will do their best in the kitchens if they think that theyare in control and will try to impress their customers. However, if Ling and Chasbecome very autocratic, it will start creating issues, amongst the employees, andalso with the management. Curry Cuisine prepares a meal from scratch for everycustomer, so it will be a good idea to give the cooks freedom with their work. Thiswill be a great motivator. Also, with this kind of production, having a supervisor inthe kitchen will just hinder the smooth working as every person will be working ontheir own.However, this may result in slacking from the workers. Even the most skilled andspecialized works may not do justice to their jobs. And with more customers to caterto and with higher demand, the quality of the food may deteriorate; and it maydeteriorate even faster if there is no supervision! So Ling and Chas have to be verycareful. First, that the people that the hire are trust-worthy. And second, that thereis at least some watch on the workers, without getting in their way and de-motivating the work-force. This will be vital in maintaining quality, which is theprime selling point of Curry Cuisine. Also, with more specialized staff, and arestaurant manager, Ling and Chas may feel that they have very little control leftover the business. To overcome this, they may want to ensure that there is still workfor them, and if they can do some jobs themselves, they should; so that theythemselves do not get de-motivated.Still the management style chosen by Ling is probably the most appropriate for thiskind of operation. She should be a little careful of the disadvantages, but there is avery high potential that the business will do really well under this style of management; the workers will be very motivated and feel a part of the company.With all this there are very high chances that Curry Cuisine will do very well, andmake good profits.
 
1.Discuss the strengths and weaknesses of Chas and Ling’s original business start-up.The chances of success of a business are highly dependent on how the businessoutlook was when it started. A business with a strong base has a very highprobability of doing really well in the market. Also, the owners are a huge asset. If they know what they are doing then a lot of obstacles can be easily overcome bythe business. The strength of a starting business can be assessed by its assets, theexperience and the caliber of the owners, the industry with they are entering, thelocation of the business, and many others.When Chas and Ling started the business they weren’t experienced in runningrestaurant. They have little or no idea how to effectively run a business; they didnot have the management skill or other skills like marketing and human resourcemanagement skills that a business owner requires. They were just good cooks!Another weakness in the start-up of the business is that they had no marketresearch. They went into this venture with no idea of what they were actually goingto face. They did not know whether or not their dishes will sell in the market, or thatwhat competition they were facing. All they had was that their friends liked thedishes they made, and this could have been disastrous. Also, to start this businessthey needed a capital of $80,000. Out of this $60,000 was arranged in the form of aloan. So looking at the start of the business objectively; the owners had noexperience, they had very little finance and they had no market research.But, Ling and Chas made a very clever decision. The lease that they signed was agreat deal for them. The place they bought proved to be great for their food. Hiringa restaurant manger was a great decision. If they had not done this either Ling orChas would have been left to manage the restaurant. This would have deterioratedthe quality of the food and also lead to poor management, which might haveaffected the overall success of the business. So hiring a restaurant manager was abig strength for Ling and Chas in the early stages of their venture.Being good cooks with very credible experience, Ling and Chas made quality aselling point for their restaurant. Good quality food is the main strength of anyrestaurant after all! This Ling and Chas had. They had worked very hard in a badkitchen, with the Asian Experience. So they had a lot of skill and stamina to dealwith a lot of customers and give them great food. This strong point of the restaurantmade a very good reputation and led to the eventual success.Even though, there were a lot of weak points in the start-up of the business, Lingand Chas made very good decision and at the right time, to lead their business tosuccess.

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