0450_w14_qp_13
A paper of Business Studies, 0450
Questions:
5
Year:
2014
Paper:
1
Variant:
3
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1
Rafa is the Managing Director of Cambridge Fencing (CF), a limited company that makes fences and gates. The business employs 100 workers. They are paid a low basic wage but can earn high bonuses for good productivity. Recently a large number of employees have left to work for other companies. However CF finds it easy to recruit new workers. The business has been successful but last year its sales and profits fell. Rafa wants this to change. What is meant by a ‘limited company’? Identity two reasons why profits are important to CF. Reason 1: Reason 2: Identify and explain two advantages to CF of its employee payment system. Advantage 1: Explanation: Advantage 2: Explanation: Identify and explain two ways that CF could use to increase its sales. Way 1: Explanation: Way 2: Explanation: Do you think that it is important that CF reduces the number of employees leaving the company? Justify your answer.
2. People in business  →  2.3. Recruitment, selection and training of employees
Open
2
The economy of country Z is booming. Its Government wants to create more manufacturing jobs by making it easier for new businesses to start up and build new factories. Recently a Government minister said: ‘All new businesses will be successful during a boom’. Controls on where new factories can be built are to be removed. Some pressure groups are against this idea because they believe that new businesses create external costs. Identify two features of a ‘boom’. Feature 1: Feature 2: What is meant by a ‘pressure group’? Identify and explain two external costs that might be created by building new factories. Cost 1: Explanation: Cost 2: Explanation: Identify and explain two ways that a Government could use to encourage new businesses to start up (other than removing controls on where factories can be built). Way 1: Explanation: Way 2: Explanation: ‘All new businesses will be successful during a boom.’ Do you agree? Justify your answer.
6. External influences on business activity  →  6.1. Economic issues
1. Understanding business activity  →  1.3. Enterprise, business growth and size
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3
Kruger manufactures advanced technology products such as computers and mobile phones. Some of its products are in the maturity stage of their product life cycle. Technology markets are very competitive. Rival businesses are always introducing new products. Kruger’s Marketing Director would like to see better market segmentation and increased brand awareness of products. She also wants the company to launch new products. What is meant by ‘the maturity stage’ of a product life cycle? Identify two costs to Kruger of launching a new product. Cost 1: Cost 2: Identify and explain two ways Kruger could increase consumers’ brand awareness of its mobile phones. Way 1: Explanation: Way 2: Explanation: Identify and explain two ways of segmenting the mobile phone market. Way 1: Explanation: Way 2: Explanation: Recommend an appropriate pricing strategy to Kruger for a new mobile phone. Justify your answer.
3. Marketing  →  3.3. Marketing mix
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4
Juta owns a business that makes soft toys. The variable cost per toy is $20. She buys her raw materials from suppliers in other countries. In 2013 she sold 10 000 toys. Table 1: Extract of Juta’s accounts for 2013 ($) Sales 350 000 Cost of sales X Gross profit 150 000 Fixed costs Y Net profit 70 000 Calculate: Cost of sales (: Fixed costs (Y): Calculate the net profit margin of the business in 2013. What is meant by ‘fixed costs’? Identify two examples of fixed costs of Juta’s business. Example 1: Example 2: Identify and explain two problems that Juta might have when buying stock from suppliers in other countries. Problem 1: Explanation: Problem 2: Explanation: In 2014 sales of the business increased by $150 000 and net profit increased by $10 000. Do you think that the business was more successful in 2014 than in 2013? Justify your answer.
4. Operations management  →  4.2. Costs, scale of production and break-even analysis
5. Financial information and decisions  →  5.5. Analysis of accounts
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5
Salters manufactures cans for drinks. It uses flow production methods. Its machinery is inefficient and often breaks down. The company holds a lot of stock of raw materials and finished products. It cannot respond quickly to changes in customer demand. The management is planning to invest in new machinery, although the capital costs would be high. The factory employees are worried about this plan and strike action is possible. In 2013 Salters made a loss. Identify two features of flow production methods. Feature 1: Feature 2: What is meant by ‘inefficient’? Identify and explain two problems to Salters of not responding quickly to changes in customer demand. Problem 1: Explanation: Problem 2: Explanation: Identify and explain two effects on Salters of holding a high level of stock. Effect 1: Explanation: Effect 2: Explanation: Do you think Salters should invest in new machinery? Justify your answer.
4. Operations management  →  4.2. Costs, scale of production and break-even analysis
4. Operations management  →  4.1. Production of goods and services
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