| Date | November 2016 | Marks available | 2 | Reference code | 16N.1.HL.TZ0.4 |
| Level | Higher level | Paper | Paper 1 | Time zone | Time zone 0 |
| Command term | Calculate | Question number | 4 | Adapted from | N/A |
Question
Six months has passed and Medimatters is now ready to launch IBAT. Medimatters will recruit new staff to set up a customer services department. Ahmed has spent some time thinking about the people he would need to recruit. The staff would need to possess IT skills and an understanding of medical issues.
The manufacturer Falit found in India has produced the first batch of 1000 IBAT lenses. Unfortunately, the IBAT lenses were delivered later than expected and some were faulty. As a result, the group is considering whether to make or buy the IBAT lenses. Ahmed has suggested setting up a manufacturing facility using lean production. His calculations are as follows:
- Price paid to manufacturer in India per IBAT lens: $50.
- Current number of IBAT lenses purchased per month: 1000.
- Variable cost of making IBAT lenses: $25 (per lens).
- Additional fixed cost of making IBAT lenses per month: $20 000.
Ahmed considered his role as leader.
- He has consulted widely on a draft business plan and has discussed and agreed the mission and vision statements because he wants to involve everyone.
- The group are all very enthusiastic about IBAT, although some are anxious about the risks involved and have asked for more guidance.
- He spends a lot of time keeping everyone informed of project developments in addition to coordinating all of their efforts.
- Emma has many ideas about expanding into new markets, however, Didi does not agree and has argued with Emma.
- He is prepared to make urgent decisions himself. For example, without consultation he decided that Medimatters should become a private limited company.
Define the term lean production.
Refer to case study: Medimatters
With reference to Medimatters, explain two steps in the process of recruitment to the customer services department.
Refer to case study: Medimatters
Calculate the cost to make and the cost to buy IBAT lenses (show all your working).
Refer to case study: Medimatters
Briefly comment on your results in (c)(i).
Refer to case study: Medimatters
“Ahmed considered his role as leader.” Recommend an appropriate leadership style for Ahmed.
Refer to case study: Medimatters
Markscheme
Producing goods and services efficiently/ minimum wasted resources/improving quality.
Candidates are not expected to word their definition exactly as above. All three are not needed. Although it is “define”, an example can help.
Award [1] for a basic definition that conveys partial knowledge.
Award [2] for a clear definition that conveys knowledge with some reference to the key issues in the answer above.
Possible steps include:
- identify vacancy
- decide nature of the job (for Medimatters this is for customer services)
- draw up job description(s) – can be described without using term
- draw up a person specification(s) – can be described without using term
- decide on method of recruitment including possibly appointing recruitment agency
- advertise the job as appropriate
- draw up short list
- conduct interviews
- select best applicant.
For Medimatters the recruitment is for customer services possessing IT skills and understanding of medical issues and this should be referred to in order to gain context marks.
Mark as 2+2.
Award [1] for each correct step identified, award [1] for explanation of that step in context.
Non-contextual answers award a maximum of [2] in total.
Cost to make:
(1000 x 25) + 20 000 = $45 000 alternatively $45 each
Cost to buy: 1000 x 50 = $50 000 alternatively $50 each
Award [1] for $45 000 (or $45), [1] mark for $50 000 (or $50) whether or not
there is working.
Alternatively award [2] for $95 000 whether or not there is workings (in the
question “and” could be interpreted as “add them together”).
Do not attempt to award method marks. Don’t penalize for lack of $.
If you see the right answer then reward it, no need to check workings.
Award [2] for a comment that indicates some understanding that the difference is small and this means that because they have no experience of ‘making your own’, and the figures are only estimates, they should think very carefully before doing things themselves.
Award [1] for simple statements such as “making is cheaper than buying”.
Evidence in the additional stimulus material suggests he:
- is prepared to be autocratic where necessary
- likes to hear other peoples’ views
- puts effort into keeping people informed
- consults widely
- he acted decisively at times.
In addition:
- he has experience with project management
- manages a talented and committed group of people
- the group have chosen him
- people within the group seem to have clearly defined roles
- some of the group need guidance.
It would seem, therefore that:
- autocratic management would not be appropriate except in situations where immediate decisions are required
- democratic leadership might be appropriate, both in terms of the team he manages and his own personal qualities
- laissez faire might mean issues do not get resolved such as disagreements, sense of direction.
The best style of leadership is likely to be to adjust to circumstances and people ie situational leadership.
There are three aspects to this choice; the nature of the tasks, the nature of his colleagues, his own personal qualities.
Marks should be allocated according to the Paper 1 markbands for May 2016 forward, section B.
Purely theoretical answer or with no effective use of stimulus material in range [3] to [4] with better answers award a maximum of [4].
If only one leadership style is considered award a maximum of [4].
Two or more styles considered with more than one aspect, but limited use of evidence award a maximum of [6].
Two or more styles considered, good use of evidence, particularly from Section B, but limited contrast award a maximum of [8].
For full marks two or more styles contrasted, aspects, evidence, particularly from section B, used effectively.
