Level 1 Business Studies (90839) 2020
908391908390SUPERVISOR’S USE ONLYTick this box ifthere is no writingin this bookletLevel 1 Business Studies 202090839 Apply business knowledge to an operationalproblem(s) in a given small business context9.30 a.m. Thursday 26 November 2020Credits: FourAchievementApply business knowledge to anoperational problem(s) in a given smallbusiness context.Achievement with MeritApply detailed business knowledge toan operational problem(s) in a givensmall business context.Achievement with ExcellenceApply comprehensive businessknowledge to an operational problem(s)in a given small business context.Check that the National Student Number (NSN) on your admission slip is the same as the number at thetop of this page.You should attempt ALL the questions in this booklet.Refer to relevant business knowledge and / or Māori business concepts in your answers.If you need more room for any answer, use the extra space provided at the back of this booklet.Check that this booklet has pages 2 – 12 in the correct order and that none of these pages is blank.YOU MUST HAND THIS BOOKLET TO THE SUPERVISOR AT THE END OF THE EXAMINATION.TOTALASSESSOR’S USE ONLY New Zealand Qualifications Authority, 2020. All rights reserved.No part of this publication may be reproduced by any means without the prior permission of the New Zealand Qualifications Authority.
2Read the resource below before you begin answering the questions in this booklet.RESOURCE: CASE STUDYBella’s Bakelicious is a café and cake shop based in Taupō, in the heart of the North Island.Bella has combined her passion for food and art to produce a unique range of delicious food.In addition to the café business, Bella produces made-to-order celebration cakes for anyoccasion (weddings, birthdays, office shouts, etc.) and a range of corporate-branded cookiesfor hotels, restaurants and outside caterers. Bella encourages a ‘family’ culture at Bella’sBakelicious, as the seven permanent staff get along well – they all grew up in Taupō together,and have been working at Bella’s Bakelicious since the business began five years ago. Bellaalways celebrates her employees’ birthdays, and the staff regularly socialise on Friday nightsafter work. Ideas from staff are encouraged, especially when they come up with new, uniquecake designs for the variety of celebrations that clients ask for.Bella’s Bakelicious has won many awards, both locally and nationally – most recently, the2019 Excellence in Business Award at the Great Lake Taupō Business Awards evening.Due to the increasing popularity of Taupō as a destination to have celebrations, Belladecided to recruit a new staff member to assist with designing and making celebrationcakes. Bella advertised a cake designer position in the local Taupō Times, and received threejob applications. Charlie was first to be interviewed, and Bella was so impressed with hisinterview that she hired him on the spot. She had heard the local supermarket was alsolooking for celebration-cake makers and did not want to miss out on a good employee.Charlie began working at Bella’s Bakelicious a few days later. Bella provided no formalinduction, supplying Charlie with a client’s request for a cake for a 50th birthday party onhis first day.However, after three months of working with Charlie, Bella began to wonder why she hadhired him. He did not fit in with the family culture of the business; he liked to design hiscakes alone, and didn’t share his ideas until the cake was finished. He made no attempt to getto know any of the other staff, and the normally relaxed atmosphere in the business becameawkward when he was around. The other staff complained about him on a daily basis, andsome were even thinking of leaving. Charlie’s work was also very poor, as his cakes were notwell presented. In addition, Charlie damaged some expensive equipment, which impacted onthe volume of cakes that could be baked.Business Studies 90839, 2020
3QUESTION ONE: RecruitmentASSESSOR’SUSE ONLYBella realises that her new cake maker, Charlie, is not suitable. He does not fit in withthe culture of the business. Bella decided to check his references, but got no reply fromone referee and the other referee had a disconnected number. Bella realised that shehad rushed her decision to hire Charlie.(a)Discuss why Bella should have followed the proper recruitment process when hiring Charliefor Bella’s Bakelicious.In your answer: identify TWO recruitment steps that Bella could have implemented or improved fully explain how ONE of these recruitment steps could have contributed to recruitingthe right person for the job that Bella advertised.Business Studies 90839, 2020
4(b)Bella has recognised that she is unable to dismiss Charlie, due to employment law. Discussa business solution that Bella could implement to improve the current employment situationwith Charlie.In your answer: describe ONE solution for resolving the current employment issue with Charlie fully explain TWO advantages of this solution.Business Studies 90839, 2020ASSESSOR’SUSE ONLY
5QUESTION TWO: Workplace incidentsTaupō is one of the North Island’s top summer holiday spots. The Taupō District hasa population of around 30,000 people, but this increases to over 80,000 during thesummer period.During the busy summer season in Taupō, Bella employs three casual staff. These staffoften work long hours each day over summer, so that Bella’s Bakelicious can keep upwith demand. Bella has recently ordered some health and safety at work signs, and iswaiting for these to be placed in her business. Recently, one of the casual employeesforgot to remove her ring before using the cookie dough machine, and sustained aninjury in a workplace accident.Press Release: WorkSafe NZThursday, 2 January 2020, 3:12 pmWorkSafe has been notified of an accident at Bella’s Bakelicious in Taupō.WorkSafe understands that an accident happened when a metal pin, attaching a cookiedough hook, caught a casual employee’s ring, pulling her arm into the machine.WorkSafe is making initial inquiries to establish what the next steps should be.Bella’s Bakelicious will need to respond to WorkSafe about the workplace accident thathas occurred.(a)(i)Fully explain ONE possible factor that contributed to the workplace accident.Business Studies 90839, 2020ASSESSOR’SUSE ONLY
6ASSESSOR’SUSE ONLY(ii)Fully explain ONE negative consequence of the workplace accident for Bella’sBakelicious.Business Studies 90839, 2020
7(b)Discuss a possible solution for Bella’s Bakelicious that would prevent a similar accidenthappening in the future.In your answer: describe a solution fully explain how this solution would prevent a similar accident happening in the future.Business Studies 90839, 2020ASSESSOR’SUSE ONLY
8QUESTION THREE: Cash flowASSESSOR’SUSE ONLYExcerpt from media reportThe minimum wage will rise to 20.00 per hour in 2021. The Government has todayconfirmed that the adult minimum wage will increase from 18.90 to 20.00 on1 April 2021. This includes casual employees.Bella is aware that the minimum wage will increase again in 2021, which will not onlyincrease costs for her business, but will also increase costs for her corporate businesscustomers, whom she currently allows 20 days to pay. This may lead to slow payers andconsequently a negative impact on cash flow for Bella’s Bakelicious.Source: orecast-clipart-house.htm(a)Describe the business term ‘cash flow’.Business Studies 90839, 2020
9(b)Fully explain TWO impacts that increased wage costs will have on Bella’s Bakelicious.Impact 1:Impact 2:Please turn over Business Studies 90839, 2020ASSESSOR’SUSE ONLY
10(c)Discuss ONE action that Bella could implement prior to the minimum wage increase in 2021to keep cash flow positive.In your answer: describe ONE appropriate action explain ONE advantage of this action fully explain how this action would reduce cash flow problems in the future.Business Studies 90839, 2020ASSESSOR’SUSE ONLY
11QUESTIONNUMBERExtra space if required.Write the question number(s) if applicable.Business Studies 90839, 2020ASSESSOR’SUSE ONLY
1290839QUESTIONNUMBERExtra space if required.Write the question number(s) if applicable.Business Studies 90839, 2020ASSESSOR’SUSE ONLY
Bella realises that her new cake maker, Charlie, is not suitable. He does not fit in with the culture of the business. Bella decided to check his references, but got no reply from one referee and the other referee had a disconnected number. Bella r
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