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Transcription of this question: 3.Cheap4U (C4U)Cheap4U (C4LT), a public limited company (plc), operates a successful low-price airline service.C4U offers a basic service targeting low-income families and students. It is positioned as offering thelowest price fora flight. Staff training for flights is on-the-job and GU uses non-financial motivationsuch as job enlargement. C4U has recently experienced difficulty in recruiting enough flight staff.As a result, flight staff are overworked and there have been complaints by some passengers aboutpoor service.In 2013, C4U suffered its first loss in 11 years. C4U carried out a review and the following threeissues were identified:given the staff shortages, C4U flights are Often delayed or cancelled.some advertising for popular flights is considered to be unethical. For example, cheap one-wayflights are promoted without stating that the return flight is twice as expensive.• new low-price competitors are emerging, using newer and more fuel-efficient aircrafts.C4U is considering offering a new international flight service, Quality4U (Q4U)_ This service willonly be offered at certain times. Q4U will target higher-income consumers by offering excellentaircraft facilities, free internet access and more comfortable seats. Four new fully equipped aircraftswill need to be purchased. C4[JS gearing ratio is rising at over 80%. New sources Of finance willbe required.C4U is also considering new methods Of staff training for the new Q4U service:• One new method of off-the-job training could be conducted by a hotel which is famous for its highquality Of customer service. This new training method will increase C4U’s costs at a time when itsworking capital is limited.• Secondly, all flight staff will have to study for and pass an examination to meet internationalquality standards Of customer service. C41JS senior management is insisting that staff study intheir own free time. Flight staff have complained and have consulted their representatives aboutpossible industrial action, as they feel that they are already overworked.(a)(b)(c)(d)Describe one feature Of:(i) job enlargement.(ii) international quality standardsExplain how each Of the three issues identified, could have impacted on C4USrevenue, leading to its first loss in 11 years.Analyse two appropriate sources Of finance that C4U could use to purchase thenew aircrafts for the new Q4U service.Evaluate the two new methods Of training and examination that C4U areconsidering to prepare flight staff for the new Q4U service.[2 marks][2 marks][6 marks][6 marks][9 marks]

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