Calculator Allowed: Yes



Transcription of this question: 3.HandsHands, a partnership set up in 1968 in southern Argentina, manufactures hand-knitted items such assweaters, scarves, bags, carpets and blankets produced under job production methods. It employsaround 300 craftswomen from the rural areas Of Patagonia. Workers are paid on a piece rate basis.The business has faced several challenges over the years such as a lack Of finance and economicrecessions. Elizabeth Sosa, managing partner, said that Hands survival depended not only on theproduct, but also on the craftswomen’s loyalty to the business and the partners ‘ democratic leadershipstyle. She said “our workers have developed a strong sense of belonging to Hands. We are a team,everyone’s opinion is heard”The partners wanted Hands to enter into international markets. They consulted with the craftswomenseveral times over this idea. Reaching a consensus on the decision took a long time. For Hands tocompete effectively in international markets, some craftswomen would have to be given managerialauthority. Many craftswomen expressed concern over these proposed organizational changes.Despite fierce competition from hand-knitting companies in India, New Zealand and Uruguay,within two years Hands had entered both the American and European markets by using high qualityraw material and quality control methods. It now supplies its products to well-known companiesand designers such as Marc Jacobs, Donna Karan, and Polo Ralph Lauren. These new customersare outside the regional trading bloc Mercosur, where Hands is located, requiring new distributionchannels. Consequently, Hands’ working capital needs have increased.[Used with permission J(a)(b)(c)(d)Identify two features of quality control.Explain one advantage and two disadvantages to Hands Of using a piece raterewards package for its workers.Analyse two challenges that Hands may have faced entering into internationalmarkets.Evaluate the effectiveness Of the democratic leadership style Of the partnersat Hands.[2 marks][6 marks][5 marks][7 marks]

Leave a Reply