With reference to RDM, outline one advantage and one disadvantage of Jan’s leadership style (lines 88–89).

Explain how innovation at RDM may have influenced their marketing practices.

Jan’s leadership style is democratic with hints of laissez faire. A simple assertion that it is democratic or is laissez faire is insufficient for context.

Advantages:

• Employees feel that they have more freedom and more say in the operation of the business.
• Greater sense of autonomy and purpose, which fosters creativity, innovation and teamwork.
• It extends responsibility for decision making to a broader group, increasing the likelihood of employees exercising authority more responsibly. When engineers contact customers to help them with their design, for example, they know that they are representing the business to the outside world and must bear that responsibility.
• Most employees like this leadership style.

Disadvantages:

• It is less orderly than the style of Jan’s father. According to the case, despite an atmosphere of “teamwork, diversity, humour and fun,” sometimes RDM now seems a bit chaotic.
• Decision making can take longer. When Kristián ran the business, he made all the decisions, and he could make them as quickly (or take as long) as he wished.
• Some employees want the type of clearer guidance often found in autocratic management.

Accept any other relevant advantage or disadvantage.

Mark as a 2 + 2.

Award [1] for an appropriate advantage and [1] for a disadvantage identified and an additional [1] for application to the points identified. Maximum award: [4].

N.B. The case study states the leadership style is democratic, but there are hints of laissez faire. Mention of either “democratic” or “laissez faire” on their own is not enough for an application mark, there needs to be use of the actual context to gain application marks.

PLEASE NOTE: This content is not included in the syllabus for 2024 exams onward. Related parts of this multi-part question may be used.

Refer to Paper 1 markbands for May 2016 forward, available under the "Your tests" tab > supplemental materials.

Innovation: introduce something or some process that is new.

Prior to changing to healthcare products, RDM’s marketing practices would have been based on:

For SL and HL:

• Product: a consumer-durable product, a product at the end of its life cycle, a standardized product
• Place: presumably distributed/sold through retailers? A country/market emerging from communist rule
• Promotion: little evidence of a formal marketing mix
• Price: fierce competition, low prices.

Additional for HL:

• Process: unclear
• Physical evidence: relevant?
• People: a “conservative” family business

There was little evidence of a marketing strategy so these items are not coordinated.

Post innovation marketing practices based on:

For SL and HL:

• Place: completely different market – the healthcare sector, likely to be sold directly, not through retail
• Product: range of products, customized products, different production processes
• Promotion: now CSR business, implications for marketing. Possibility of marketing using IT
• Price: lower costs, lower prices. Now likely to be individually negotiated. Needs prices fora wider range

Additional for HL:

• People: personal contact with customer
• Process: different way of meeting customer needs, direct contact with customers
• Physical evidence: relevant?

Other issues include change in target market, change in nature of market (growing), creating USP. After innovation, these practices will need to be included in a coordinated marketing mix.

Accept any other relevant explanation.

Marks should be allocated according to the paper 1 markbands for May 2016 forward section A.

Award a maximum of [3] for a theoretical answer or for limiting answer to only considering one market practice.

Award a maximum of [5] if the answer is mainly descriptive but in context.

Award a maximum of [6].

candidates were asked to outline one advantage and one disadvantage of Jan’s leadership style. Most candidates showed very good knowledge of the advantages and disadvantages of democratic leadership style and gave a typical textbook answer. Fewer candidates were able to relate their answer to the relevant case material – for example: most employees love the environment; it is consistent with teamwork and creativity; that some employees have complained that there is insufficient guidance; and that the business sometimes lacks focus. However, candidates who state this context also need to relate it to leadership style rather than simply ‘lifting’ it from the case.

Candidates were asked to explain how innovation at RDM may have influenced marketing practices. Many candidates picked up in the case material that RDM ‘did not have a marketing strategy’ and promptly presented a pre-prepared answer based on what would be a good marketing strategy. They did not answer the question that was set and could only be rewarded for their knowledge of marketing. Good answers focused on what was relevant about the 7Ps (or 4Ps at Standard Level) at RDM prior to and after innovation. Fairly common in many answers was a comparison between the standardized product to begin with which became customized products after innovation. Other ideas included the likelihood that prior to innovation products were sold through retailers whereas post innovation there was direct contact with customers. Another relevant thought that a few candidates mentioned was that prior to innovation the products were at the end of their life cycle which would have been reflected in any marketing whereas post innovation there were products at various stage of the cycle. Candidates were also able to develop some ideas relating to price, people and processes. Just because there was no strategy does not mean there was no marketing.