Workforce Diversity and Profit (AQA Paper 1 2020 Q18)

Here is a worked answer for a 9-mark past exam AQA A-level Business question on how greater workforce diversity might improve the profit of a business.

#alevelbusiness #alevels #aqabusiness

[edencortesi-hennell]

WOW GREAT ANSWER and great advice thank you!!

[edencortesi-hennell]

One way in which increasing the diversity might increase the profits of a business is that they’ll have a range of different mindsets, ages, genders, ethnicities and cultures, which will primarily enable the business to be able to respond to all different kinds of customers, therefore meaning they can meet the demands of a range of people and not limit themselves to a singular segment. This will help them to increase their market share and overall growth, therefore increasing their revenues and enabling them to gain substantial profits. Also, if the business is looking to grow globally, having a diverse workforce will be highly beneficial because certain stakeholders may be from the particular country where they are distributing their products, and it is highly likely that this indigenous or knowledgeable stakeholder of this country is more likely to know the market and the demands of customers. This means the business will be able to know how to strategically adapt their choices when it comes to advertising and spending in order to reach the demands of the customers and most importantly maximise their profits. A great example of a business that made sufficient profits from diversifying its business was TATStarbucks - they wanted to enter the Indian market and realised they don’t have much knowledge about it, therefore they did a 50:50 joint venture with TATA because TATA is a tea company who has understanding and insight into the Indian market, this use of adopting a diverse workforce through conglomerate integration allowed Starbucks to enter a completely new market and enabled them to increase their market share, gain more loyal customers and maximise their overall profits.

[chloetsao]

can you write two smaller arguments instead of just the one?

[edencortesi-hennell]

Would you possibly mind marking mine? :D