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Exam technique advice

Impact on Quality of Changes in Data (Worked Answer to AQA Q18, Paper 1 2018)

  • Levels: A Level
  • Exam boards: AQA

Here is a suggested response to Q18 in AQA A-Level Business Paper 1 in 2018.

The data in the table shows that the labour turnover of BBB plc has improved, falling steadily over the four decades from 15% to 8%. By contrast the average labour turnover of competitors has worsened, with a significant 5 percentage point increase in the last ten years. BBB plc’s labour turnover is now just a third of its competitors, on average.

A consequence for BBB’s quality of having lower labour turnover than competitors may be that BBB can benefit from having a more experienced and better skilled workforce, since fewer employees are leaving the business each year. In many businesses, quality is directly linked to the skills of the people in the business. Longer-serving employees are more likely to be better trained and more experienced in the production of a good or delivery of a service and are therefore more able to identify or prevent poor quality. By contrast, competitors with higher labour turnover may find that the relative inexperience of the workforce leads to quality problems, particularly if almost a quarter of the workforce (23% average between 2008-2017) leaves each year. Over time, a business like BBB might, therefore be able to use its more experienced workforce to consistently produce higher-quality products than the competition and build on this advantage as labour turnover continues to fall.

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