0450_w15_qp_13
A paper of Business Studies, 0450
Questions:
4
Year:
2015
Paper:
1
Variant:
3
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1
PYG is a private limited company based in country A. PYG makes metal cans for food products using flow production. The Operations Director has been looking at the operations data in Table 1. Last year PYG found it difficult to replace the 15 production workers who left the company. Most of PYG’s output is exported. The Operations Director thinks there could be more advantages than disadvantages to relocating production to another country. Table 1: Operations data Output per week 660 000 800 000 Number of employees What is meant by a ‘private limited company’? Calculate the output per employee per week in 2014. Identify and explain two reasons why calculating output per employee is important for PYG. Reason 1: Explanation: Reason 2: Explanation: Identify and explain two possible problems for PYG of using flow production. Problem 1: Explanation: Problem 2: Explanation: Do you think that the advantages of relocating production to another country would be greater than the disadvantages for PYG? Justify your answer.
4. Operations management  →  4.1. Production of goods and services
4. Operations management  →  4.2. Costs, scale of production and break-even analysis
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2
Toddles is a children’s nursery. It is a tertiary sector business which provides childcare for children aged 2–5 years. It is a sole trader business. The business employs 4 full-time workers, who are all fully trained and well-motivated. Each employee looks after 3 children. Last year, Toddles made a loss. ‘I don’t understand it, we have fantastic employees and a good location’ said the owner. ‘I need to find ways to make the business profitable.’ What is meant by ‘tertiary sector’? Identify two ways (other than training) that Toddles could use to motivate its employees. Way 1: Way 2: Identify and explain two advantages to Toddles of having fully trained employees. Advantage 1: Explanation: Advantage 2: Explanation: Identify and explain two possible reasons why profit is important for businesses like Toddles. Reason 1: Explanation: Reason 2: Explanation: Explain two ways in which Toddles could become profitable. Recommend which way Toddles should use. Justify your answer.
2. People in business  →  2.3. Recruitment, selection and training of employees
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3
QF Group manufactures a range of electrical products such as computers and televisions. All QF managers have a wide span of control so delegation is important. The main objective of QF Group is growth. The Finance Director has been looking at the accounting data in Table 2. She is pleased about the performance of the business. Table 2: Extract from accounts Revenue ($m) (Net) profit ($m) Capital employed ($m) Gross profit margin 50% 45% (Net) profit margin 12% ? Return on Capital Employed 10% ? What is meant by ‘span of control’? What is meant by ‘delegation’? Identify and explain two reasons why delegation might be important to businesses like QF Group. Reason 1: Explanation: Reason 2: Explanation: Identify two stakeholder groups. Explain why each of these stakeholder groups might support QF Group’s objective of growth. Stakeholder group 1: Explanation: Stakeholder group 2: Explanation: Do you think the Finance Director is right to be pleased about the performance of QF Group? Justify your answer using the data in Table 2 and appropriate ratios.
1. Understanding business activity  →  1.5. Business objectives and stakeholder objectives
2. People in business  →  2.2. Organisation and management
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4
Xiolom is a mining business in the private sector. It is a large company employing over 100 000 employees. It has operations in 10 countries. The Operations Director has announced plans to open a new mine in country G. He is angry. ‘First it is new legal controls over employment and now I have to deal with pressure groups. The mine will create 8000 jobs. Xiolom creates external benefits so it should be allowed to expand!’ What is meant by the ‘private sector’? Identify two limitations of using ‘number of employees’ as a method of measuring business size. Limitation 1: Limitation 2: Identify and explain two ways a pressure group might try to influence Xiolom‘s decision to open the new mine in country G. Way 1: Explanation: Way 2: Explanation: Identify and explain two ways in which Xiolom might be affected by new legal controls over employment. Way 1: Explanation: Way 2: Explanation: The Operations Director believes that because Xiolom creates external benefits it should be allowed to expand. Do you agree? Justify your answer.
1. Understanding business activity  →  1.3. Enterprise, business growth and size
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