7115_w22_qp_11
A paper of Business Studies, 7115
Questions:
4
Year:
2022
Paper:
1
Variant:
1
Login to start this paper & get access to powerful tools
1
SSG manufactures mobile phones using batch production. Quality control is important. SSG has 130 employees who all receive on-the-job training. The Marketing Manager is analysing cost and output data for product X. An extract is shown in Table 1.1. As product X is in the maturity stage of the product life cycle SSG is considering possible extension strategies. Table 1.1 Extract from SSG’s cost and output data for product X $300000 Rent and other expenses per month $80 Variable cost per unit Output per month Define ‘on-the-job training’. Calculate total variable cost per month. Show your working. Identify four factors a business should consider when deciding which method of production to use. Factor 1: Factor 2: Factor 3: Factor 4: 1 3 Explain one advantage and one disadvantage to SSG of using quality control. Advantage: Explanation: Disadvantage: Explanation: Do you think adding new features to a product is the best extension strategy for a manufacturing business to use? Justify your answer. [Turn over 1 3
4. Operations management  →  4.3. Achieving quality production
4. Operations management  →  4.1. Production of goods and services
Open
2
DNG provides electricity to 16 million customers. It is a limited company which means DNG’s shareholders benefit from limited liability. DNG is planning to stop using coal to produce its electricity. Pressure groups had an influence on this decision. The Managing Director knows there will be an opportunity cost to making this change. She is considering the best way to communicate this important information to DNG’s 6500 employees. Define ‘opportunity cost’. Identify two limitations of using the number of employees to measure the size of a business. Limitation 1: Limitation 2: Outline how having limited liability might benefit DNG’s shareholders. 1 3 Explain two ways a pressure group might influence DNG’s decisions. Way 1: Explanation: Way 2: Explanation: Explain two methods of internal communication a large business could use to share important information with its employees. Justify which method should be used. [Turn over 1 3
2. People in business  →  2.4. Internal and external communication
1. Understanding business activity  →  1.4. Types of business organisation
Open
3
CPK operates 5 sports clubs. Each club offers a range of activities including gym and yoga classes. CPK uses job enrichment to keep its 60 employees well-motivated. Having the right marketing mix is important to CPK’s success. The Finance Director is analysing CPK’s financial statements. An extract is shown in Table 3.1. He wants to know how an increase in taxation might affect CPK’s business. Table 3.1 Extract from CPK’s financial statements 1.3 1.6 Current ratio 10% 12% Profit margin $2m $2m Non-current assets Define ‘non-current assets’. State two elements of the marketing mix. Element 1: Element 2: Outline two ways CPK might be affected by an increase in taxation. Way 1: Way 2: 1 3 Explain one possible effect on CPK of the change in each of the following ratios as shown in Table 3.1: Change in current ratio: Explanation of effect on CPK: Change in profit margin: Explanation of effect on CPK: Do you think job enrichment is a better way for a business to motivate its employees than profit sharing? Justify your answer. [Turn over 1 3
5. Financial information and decisions  →  5.5. Analysis of accounts
2. People in business  →  2.1. Motivating employees
Open
4
Following the end of a recession in country X, Beena wants to start up a hairdressing business. One option is to purchase a franchise from an established hairdressing business. Beena has $800 in savings and knows having enough working capital will be important for her business. She plans to use market research to help her decision-making. Beena knows there are many ways to segment a market. Define ‘recession’. Identify two ways of segmenting a market. Way 1: Way 2: Outline two reasons why having enough working capital might be important for Beena’s business. Reason 1: Reason 2: 1 3 Explain two possible advantages to Beena of buying a franchise. Advantage 1: Explanation: Advantage 2: Explanation: Do you think it is always better for a start-up business to use primary market research, rather than secondary market research, when making decisions? Justify your answer. 1 3
3. Marketing  →  3.1. Marketing, competition and the customer
Open