Merit exemplar for 91381 2014 Q 1 Grade score M6 Total score 18 Annotation Generally, across this whole question, the candidate provides evidence of full explanations. They provide reasoned explanation but then extend these to show the impacts on the business, namely, generally profitability. For example, the cost of labour in Mexico is lower; this reduces expenses and, therefore, increases profitability. The conclusion, however, repeats the arguments fully explained earlier. Nothing new is given to justify the decision-making around the best strategy. For example, discussing how maintaining a factory in a small market (NZ) far from the potential of NAFTA would be a much higher drain on resources than the temporary payment of redundancy packages. The candidate demonstrates an in-depth understanding of Business. In part (a), they are able to fully explain the causes and effects of the poor investment decision. 2 M6 In part (c), most of the positive and negative impacts are fully explained, except the positive impact of reducing employee hours. The conclusion, however, repeats the arguments fully explained earlier. Nothing new is given to justify the decision-making around which is the better strategy. An alternative conclusion may have been this: implementing TQM would benefit the business considerably in the longer-term. However, many of the problems faced are short in nature. Implementing TQM would need major strategic changes in the business that would cause greater problems in the short term and would make the problems already faced worse. In part (a), the first cause is only explained and the second cause and both effects of the complex problem are fully explained. 3 M6 In part (c), the positive impact of implementing TQM is explained only while the other positive and the two negative impacts are fully explained. The conclusion, however, repeats the arguments fully explained earlier.