Kapil is a successful law partnership in the centre of a large city. It offers a range of services to small and large business customers, including having meetings to give legal advice and writing contracts. Kapil’s Finance manager is worried about the high level of fixed costs. He believes this is due to Kapil’s good location. The Managing Director wants to buy a new information technology (IT) system to help improve internal communication. She thinks technology will help remove some communication barriers. What is meant by ‘internal communication’? Identify two barriers to communication. Barrier 1: Barrier 2: Identify and explain two advantages to Kapil of using information technology. Advantage 1: Explanation: Advantage 2: Explanation: Identify and explain two suitable sources of finance that Kapil could use to purchase the new IT system. Source 1: Explanation: Source 2: Explanation: Do you think Kapil should move to a cheaper location? Justify your answer.

0450_m15_qp_12

THEORY

2015

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HSN uses batch production to make breakfast cereals. The products are sold using several distribution channels. HSN employs 600 production workers. HSN has problems with many employees leaving. Following the dismissal of the Operations Manager, the Human Resources Director has to recruit a new manager. She said: ‘The person must have good communication skills to help solve the communication barriers HSN has with employees.’ The Human Resources Director has to decide whether to use internal recruitment or external recruitment for the new manager. Define ‘dismissal’. State two distribution channels a business might use. Distribution channel 1: Distribution channel 2: Outline two possible problems to HSN of many employees leaving. Problem 1: Problem 2: 1 24 Explain how each of the following could cause communication barriers within HSN. Language: Medium of communication: Do you think external recruitment is better than internal recruitment when recruiting a new manager for a large business? Justify your answer. [ 1 24

0450_m20_qp_12

THEORY

2020

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AH is an insurance business. It operates in a competitive market. AH has 1000 employees including 50 supervisors. The supervisors use an autocratic leadership style. AH currently has a 5% market share and is planning to take over a competitor. The Managing Director is considering how to communicate with AH’s employees about the takeover. There are many sources of finance available to fund business growth. Identify two responsibilities of supervisors. Responsibility 1: Responsibility 2: Identify two methods of written communication. Method 1: Method 2: Outline two benefits to AH of taking over a competitor. Benefit 1: Benefit 2: [ 1 13 Explain one advantage and one disadvantage to AH of its supervisors using an autocratic leadership style. Advantage: Explanation: Disadvantage: Explanation: Explain two sources of finance which could be used to fund business growth. Which source of finance would be the best to use? Justify your answer. 1 13

0450_m23_qp_12

THEORY

2023

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Fig. 2 shows the organisational structure of ABC, a business that manufactures toys. As the business has grown, the management has found it difficult to maintain good internal communication and to control activities. ABC always recruits its senior managers from within the company. Fig. 2: ABC’s organisational structure What is meant by the term ‘internal communication’? Identify two features of the organisational structure of ABC as shown in Fig. 2. Feature 1: Feature 2: Identify and explain two reasons why managers may be reluctant to delegate tasks to employees in their organisation. Reason 1: Explanation: Reason 2: Explanation: Identify and explain three advantages to ABC of recruiting senior managers from within the business. Advantage 1: Explanation: Advantage 2: Explanation: Advantage 3: Explanation: Recommend two ways in which communication could be improved in a large organisation. Justify your recommendations. Way 1: Way 2:

0450_s11_qp_11

THEORY

2011

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Emir is the Production manager at a large food production factory. He wants to lower average cost to help the business remain competitive. All workers are paid using time rate. Emir believes that good internal communication is important. The company has decided to stop importing raw materials as this causes a lot of problems. Emir must choose a suitable method of communication to tell the overseas suppliers of his decision. What is meant by ‘internal communication’? Identify two suitable methods of communication Emir could use to tell the overseas suppliers of his decision to stop importing raw materials. Method 1: Method 2: Identify and explain two payment methods for workers that this business could use (other than time rate). Method 1: Explanation: Method 2: Explanation: Identify and explain two possible problems of importing raw materials for this food production business. Problem 1: Explanation: Problem 2: Explanation: Explain two ways in which the Production manager could reduce average cost. Recommend which way should be used. Justify your answer. Way 1: Way 2: Recommendation:

0450_s13_qp_12

THEORY

2013

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JKL uses job production to make clocks. JKL buys all its raw materials locally and exports 60% of its products. The business has high fixed costs. JKL has 30 skilled employees. Many of them work part-time and delegation is encouraged. All workers receive an email from management every day to keep them informed about production issues. The Human Resources Director said: ‘I think it is more cost-effective to try to retain our existing workers rather than to recruit new employees.’ The Director wants to reduce barriers to communication, as he knows effective communication is important to help JKL meet its objectives. Identify two reasons for a business having objectives. Reason 1: Reason 2: Identify two fixed costs for JKL. Cost 1: Cost 2: Identify and explain one advantage and one disadvantage to JKL of using job production. Advantage: Explanation: Disadvantage: Explanation: 1 16 Identify two possible barriers to communication for JKL. For each barrier, explain how JKL could reduce or remove it. Barrier 1: How to reduce or remove it: Barrier 2: How to reduce or remove it: Do you agree that it is better for JKL to try to retain existing workers rather than recruit new employees? Justify your answer. 1 16

0450_s18_qp_12

THEORY

2018

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BCK is a multinational company which operates many gold mines. One of BCK’s objectives is to contribute to sustainable development. The Managing Director said: ‘We value all of our stakeholders. With 10000 employees it is important to have the right leadership style. BCK needs well-motivated employees.’ The Managing Director also thinks that effective communication with suppliers is very important. Define ‘multinational company’. State two ways of motivating employees. Way 1: Way 2: State four factors that might affect the leadership style used by a manager. Factor 1: Factor 2: Factor 3: Factor 4: 1 14 Explain two ways BCK could contribute to sustainable development. Way 1: Explanation: Way 2: Explanation: Do you think using communication methods based on information technology (IT) is the best way for a large business to communicate with its suppliers? Justify your answer. [ 1 14

0450_s20_qp_11

THEORY

2020

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DCN is a large chemical company. It has 8000 employees across its 3 factories. DCN has agreed to set up a joint venture with a glass making business to develop a new type of environmentally friendly packaging. DCN’s Managing Director said: ‘There are disadvantages to a joint venture. The companies have different leadership styles and business objectives. We will need to look at ways to overcome possible communication barriers.’ Define ‘business objective’. Identify two ways that business activity might affect the environment. Way 1: Way 2: Identify four examples of communication barriers. Example 1: Example 2: Example 3: Example 4: [ 1 12 Explain two possible advantages to DCN of setting up a joint venture with the other business. Advantage 1: Explanation: Advantage 2: Explanation: Do you think autocratic leadership is the most effective style for managers to use when an organisation has a large number of employees? Justify your answer. 1 12

0450_s21_qp_13

THEORY

2021

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MBH is a business organisation in the public sector. It controls 5 hospitals and has 5600 employees including 440 doctors. External recruitment is used when recruiting skilled employees. The Human Resources Director uses ideas from Herzberg’s theory to improve employee motivation. He is worried about communication barriers within MBH. The business has a tall organisational structure and a long chain of command. Most of MBH’s internal communication is by email and phone calls. Identify two objectives for a business organisation in the public sector. Objective 1: Objective 2: Define ‘chain of command’. Outline two ways MBH can use ideas from Herzberg’s theory to motivate its employees. Way 1: Way 2: 1 13 Explain how MBH might reduce or remove each of the following communication barriers: Messages lost: Explanation: Use of jargon: Explanation: Do you think an organisation should always use external recruitment when recruiting skilled employees? Justify your answer. 1 13

0450_s22_qp_11

THEORY

2022

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RBG is an oil company. It has operations in 6 countries. RBG has 2000 employees including 60 managers. Some of its managers use a laissez-faire leadership style. All of RBG’s internal communication uses information technology (IT) based methods. The Managing Director knows RBG’s business activities can create external costs and external benefits. She says: ‘Pressure groups often try to influence business decisions.’ Define ‘laissez-faire leadership style’. Identify two roles of a manager. Role 1: Role 2: Outline one external cost and one external benefit RBG’s business activities might create. External cost: External benefit: Explain two methods of IT based communication RBG might use with its employees. Method 1: Explanation: Method 2: Explanation: Explain two ways a pressure group might try to influence business decisions. Which way do you think is likely to be the most effective? Justify your answer. ,

  
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0450_s24_qp_12

THEORY

2024

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