BUSINESS STUDIES - Department of Education · 2020. 11. 17. · small, medium and large floral...

© Copyright for part(s) of this examination may be held by individuals and/or organisations other than the Office of Tasmanian Assessment, Standards and Certification.

Tasmanian Certificate of Education External Assessment 2020

BUSINESS STUDIES (BST315116)

Time recommended for this paper

Working time recommended: 3 hours

Plus reading time recommended: 15 minutes

Pages: 20

Questions: 10

Attachment: Information Sheet

Candidate Instructions

1. You MUST make sure that your responses to the questions in this examination paper show your achievement in the criteria being assessed.

2. There are THREE sections to this paper.

3. You must answer: TWO questions from Section A in the answer booklet provided

TWO questions from Section B in the answer booklet provided

ONE question from Section C in the answer booklet provided.

4. The recommended time to be spent on a section is given in the instructions of that section.

5. You should make sure you answer all parts within each question so that all criteria can be assessed.

6. You must write brief and clear answers for each of the questions you have chosen.

7. You are encouraged to include diagrams where relevant.

8. All written responses must be in English.

On the basis of your performance in this examination, the examiners will provide results on each of the following criteria taken from the course document:

Criterion 1 Describe and use business terms, concepts, principles and ideas related to the management of business in Australia.

Criterion 2 Use tools, techniques and processes to assess data and information about business performance.

Criterion 3 Analyse issues arising from business practices and management strategies.

Criterion 4 Make recommendations to improve management practices and business performance.

Criterion 5 Communicate business ideas and information.

PLACE YOUR CANDIDATE

LABEL HERE

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BST315116 of 20

SECTION A

You MUST answer TWO questions from this section. ONE question from Part 1 and ONE question from

Part 2.

Answers must be written in the spaces provided in the supplied answer booklet.

It is recommended that you spend approximately 40 minutes answering the questions in this section.

Each question is worth a total of 10 marks (2 x 10 = 20 marks).

This section assesses Criteria 1 and 5.

Part 1 – The Business Environment

Answer both parts of the ONE question you select.

Question 1

(a) Businesses can be classified by sector depending on the type of activity they undertake. Describe

TWO sectors and identify at least ONE example for each sector. (4 marks)

(b) Explain the term incorporated. Describe ONE unincorporated legal structure and its features.

(6 marks)

Question 2

(a) Product and location are both internal influences on business. Using ONE example, briefly

explain how product OR location impacts the operation of a business. (4 marks)

(b) Explain the economic cycle. Outline TWO ways a business may be affected by an upswing and

TWO ways a business may be affected by a downturn. (6 marks)

Question 3

(a) Explain corporate social responsibility and distinguish it from business ethics. (4 marks)

(b) Describe THREE ways in which a more entrepreneurial society benefits us all.

(6 marks)

Section A continues.

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Section A (continued).

Part 2 – Operations Management

Answer both parts of the ONE question you select.

Question 4

(a) Using ONE example, explain the transformation process of a particular good or service.

(4 marks)

(b) Explain why efficiency is a goal of operations management. Outline TWO ways in which efficiency

can be achieved through operations management. (6 marks)

Question 5

(a) Distinguish between operational and strategic decisions. (4 marks)

(b) Identify and describe THREE areas of operational decision-making. (6 marks)

Question 6

(a) Briefly explain the legal concept of intellectual property and why it is vital to business operations.

(4 marks)

(b) Define deskilling. Explain ONE benefit and ONE potential issue associated with this operations

management strategy. (6 marks)

BST315116 of 20

SECTION B

You MUST answer TWO questions from this section, EITHER:

Question 7 AND Question 8

OR

Question 7 AND Question 9

OR

Question 8 AND Question 9.

In your answers please refer to the stimulus material provided.


It is recommended that you spend approximately 70 minutes answering the questions in this section.

Each question is worth 35 marks (2 x 35 = 70 marks).


Stimulus – The Plant Lady (for use in every question)

The Plant Lady is an online business run by sole trader Zara Bahar from her home in Hobart’s northern

suburbs. Customers place orders online for the range of plant-based products available from The Plant

Lady website which Zara opened in 2018 after an extended period spent researching and planning.

Products sold on the website include small, medium and large indoor plants ranging from $17 to $59

each, and some 2-3 metre indoor trees which cost considerably more. Zara also sells a range of plant

accessories including decorative plant pots, watering cans, plant food and organic pest control sprays

plus a small line of ‘Plant Lady’ slogan t-shirts and jumpers.

The Plant Lady delivers plants daily, and is open to the public from 3-5pm weekdays for the collection of

orders. In her first year of operation, Zara completed all the deliveries herself and worked extremely long

hours. From 2019 onward Zara has employed one casual and one part-time employee to assist her in

the processing and delivery of orders, particularly at peak times e.g. Christmas, Valentine’s Day,

Mother’s Day. This has increased expenses, but has been necessary, as the business has grown.

The Plant Lady’s customer base consists of:

60% customers who purchase products as gifts.

15% of purchases are made by corporate customers for office décor on 30 day credit terms.

The remaining customers purchase for individual use.

Section B continues.

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Section B (continued).

Zara has found that more and more customers wish to purchase a live plant as a gift or decoration to be

delivered rather than the traditional bouquet of flowers or floral arrangement. Her research on potential

competitors has revealed that there are no other businesses in the Hobart region which deliver live plants

as gifts or office decor.

In looking forward, Zara has considered three possible future directions or opportunities for her business.

These include:

Indoor plant hire for private or commercial decor purposes. She projects this added service will

cost her an initial $30,000 to set up.

Importing cheaper decorative pots from overseas. She expects that this will save her 30% on cost

of goods sold. However, importing increases the risk of shipping delays, quality control and/or

inventory management issues.

Expansion of greenhouses on her own property. She has the space to double her production at

an initial investment cost of $50,000.

Although Zara operates the business from home she lives on a large enough block to accommodate two

large greenhouses, and has room to expand. She grows 50% of plants herself and buys the remainder

from Tasmanian and interstate nurseries. Recently The Plant Lady has received some complaints about

diseased plants, and Zara is considering introducing a quarantine area for new plant purchases, quality

control measures, and a 30 day customer satisfaction guarantee with each plant purchase.

The Plant Lady has business cards which accompany every delivery, the website is updated weekly and

Zara posts daily photos and plant care tips to the business’s Instagram and Facebook pages. Zara is

considering starting a YouTube channel so that she can share videos of herself explaining aspects of

plant care but she is not sure if this would be useful. Zara originally made plant prices similar to prices for

small, medium and large floral arrangements at local florists, since these products are easily accessible

alternatives for customers. The business is considering adopting a pricing method and strategy which

could drive up sales by targeting her customers more effectively. This would also allow The Plant Lady to

compete with higher end nurseries which have begun to sell plant related gifts in store, as indoor plants

have significantly increased in popularity with consumers.


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The Plant Lady

Balance Sheet for years ended 30 June

Assets 2018 ($) 2019 ($) 2020 ($)

Current Assets

Cash at Bank 15,000 64,578 120,000

Accounts receivable (debtors) 5,300 9,105 12,030

Inventories (stock) 12,850 23,143 31,000

Total Current Assets 33,150 96,826 163,030

Non-current Assets

Delivery van 70,000 55,000 40,000

Nursery (plant growing) & other equipment 6,700 11,800 15,750

Office equipment 5,900 7,300 7,900

Total Non-current Assets 82,600 74,100 63,650

Total Assets 115,750 170,926 226,680

Liabilities

Current Liabilities

Accounts Payable (creditors) 3,900 6,070 17,706

Bank Overdraft 7,730 10,000 10,000

Total Current Liabilities 11,630 16,070 27,706

Non-current Liabilities

Bank Loan (Delivery van) 42,000 36,000 30,000

Total Non-current Liabilities 42,000 36,000 30,000

Total Liabilities 53,630 52,070 57,706

Owners’ Equity

Capital 15,000 62,120 118,856

Net Profit 94,240 113,472 100,237

Less Drawings of Owners 47,120 56,736 50,119

Total Owners’ Equity 62,120 118,856 168,974

Total Liabilities & Equity 115,750 170,926 226,680


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An Income Statement, Balance Sheet and Financial Ratios are included below:

The Plant Lady

Income Statement for years ended 30 June

Revenue 2018 ($) 2019 ($) 2020 ($)

Sales Revenue 132,000 168,000 216,000

Less Cost of Goods Sold 19,800 28,560 43,200

Gross Profit 112,200 139,400 172,800

Less Expenses

Salaries 5,000 10,400 54,000

Insurance 1,000 1,200 2,000

Fuel 2,160 2,880 3,600

Vehicle Maintenance & Registration 1,800 2,200 2,500

Interest 2,600 2,789 3,103

Marketing & Promotion 3,000 3,500 4,000

Administrative Expenses 2,400 3,000 3,360

Total Expenses 17,960 25,969 72,563

Net Profit 94,240 113,471 100,237

Ratios 2018 2019 2020 Industry average (2020)

Gross Profit Ratio 85% 83% 80% 83%

Net Profit Ratio 71.39% 67.54% 46.40% 50%

Rate of Return on Owners’ Equity 151.71% 95.47% 59.32% 35%

Gearing (or Debt to Equity) Ratio 86.33% 43.81% 34.15% 75%

Current (or Working capital) Ratio 2.85 : 1 6.03 : 1 5.88 : 1 2 : 1

Debtors Collection period 48.85 days 65.94 days 58.08 days 42.60 days

BST315116 of 20

Question 7 – Marking Management

(Parts (a) to (c) assess Criterion 3)

(a) Evaluate potential issues for The Plant Lady in terms of:

i. Identification of more than one target market

ii. Appropriateness and adequacy of promotional strategies

iii. Place strategies (distribution channels)

iv. Establishing brand recognition and loyalty. (12 marks)

(b) For ONE of the issues above, critically analyse the cause of this business issue and its impact on

business performance. (6 marks)

(c) Outline the impact of the marketing issue you have analysed on ONE stakeholder of your choice.

(2 marks)

(Parts (d) to (g) assess Criterion 4)

(d) Explain ONE pricing strategy OR ONE pricing method appropriate for The Plant Lady and justify

your choice. (3 marks)

(e) Recommend ONE product strategy and ONE promotional strategy to improve the brand

recognition of The Plant Lady. (4 marks)

(f) How will the strategies you recommended in (e) impact business performance in the short and

long term? (4 marks)

(g) Briefly explain how customers and competitors will be impacted by your recommendations.

(4 marks)


BST315116 of 20


Question 8 – Financial Management



i. Profitability

ii. Financial stability (solvency)

iii. Liquidity

iv. Efficiency. (12 marks)

(b) For ONE of the issues above critically analyse the cause of this business issue and its impact on

business performance. Use the financial statements in the stimulus to assist you with your

answer. (6 marks)

(c) Outline the impact of the financial issue that you have analysed on ONE stakeholder of your

choice. (2 marks)


(d) Explain ONE risk that must be mitigated OR ONE obstacle to be overcome if The Plant Lady

expands to offer indoor plant hire at a cost of $30,000. (3 marks)

(e) Recommend TWO financial management strategies that will improve the profitability of The Plant

Lady. (4 marks)



(g) Briefly explain how the owner and the local community will be impacted by your recommendations. (4 marks)


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Question 9 – Operations Management



i. Establishing and maintaining a competitive advantage

ii. Quality of final product and service

iii. Management of demand for products at peak times

iv. Production efficiency. (12 marks)

(b) For ONE of the issues above, critically analyse the cause of this business issue and its impact on

business performance. (6 marks)

(c) Outline the impact of the operational issue you have analysed on ONE stakeholder of your

choice. (2 marks)


(d) Explain ONE quality management strategy OR ONE use of technology which would improve the

transformation process. (3 marks)

(e) Recommend TWO operational and/or strategic decisions which will increase production

efficiency. (4 marks)



(g) Briefly explain how suppliers and employees will be impacted by your recommendations.

(4 marks)

BST315116 of 20

SECTION C

Answer ALL parts of Question 10.

In your answers please refer to the stimulus material provided.


It is recommended that you spend approximately 70 minutes answering the question in this section.

The question is worth 60 marks (1 x 60 = 60 marks).


Stimulus – City Music (for use in all parts of Question 10)

City Music is a small private company which operates a retail business of the same name in the centre of

town. The company is owned by partners Stan Wright and Leo Swan, who own the double storey

building where their shop has operated since 1995. Over the past 25 years the business has been

generally profitable, however profits have been in slow decline over the past decade, a trend the owners

would like to reverse.

The business aims to be a hub for those with an interest in music, and provides goods and services

including: retail sale of musical instruments and accessories, audio and recording equipment, and sheet

music, online and in store purchases, cleaning and servicing of instruments.

The economic cycle is in a downturn, even with low interest rates and a strengthening Australian dollar.

Despite this, consumer demand for musical instruments is high. However, City Music sales have been

impacted by competitors, both local and interstate through online sales.

Well-known home entertainment chain store JP Audio, located in central Hobart, began selling cheap

instruments around three years ago. Another chain store, specialist music chain Contemporary Musician

opened 13 months ago and offers similar prices, but with the buying power of a larger company. It has a

more modern fit-out but its location is less ideal; they have less passing foot traffic than both JP Audio

and City Music. Online shopping alternatives have also offered City Music heavy competition on all but

bulky items and those which require professional set up.

City Music has a small, loyal and knowledgeable staff, all of whom are musicians and involved in bands

outside of work hours. All staff are required to be proficient in two instruments and many also do private

tuition.

Section C continues.

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Section C (continued).

City Music is reviewing its competitive advantage strategy of product differentiation in the face of

competition on price but would like to continue to play to their strengths. They are attempting to

renegotiate agreements with suppliers and lower administrative expenses to reduce costs.

While City Music does not have significant liabilities, its sales and profits have fallen significantly in

recent years, and costs have continued to increase in line with inflation.

City Music is considering refurbishing some of its unused upstairs space in order to offer three dedicated

practice rooms for private contractors to run music lessons. This would enable City Music to earn a

facility hire fee, and benefit from the influx of music students. They have not yet included this in their

cash budget (projected) for 2021.


BST315116 of 20


City Music

Balance Sheet for years ended 30 June

Assets 2018 ($) 2019 ($) 2020 ($)

Current Assets

Cash at Bank 36,000 34,798 32,760

Accounts receivable (debtors) 2,540 1,705 1,980

Inventories (stock) 214,560 202,700 187,950

Total Current Assets 253,100 239,203 222,690

Non-current Assets

Property – building & land 1,500,000 1,580,000 1,620,000

Shop fittings 70,000 80,000 82,000

Office equipment 3,000 3,300 3,500

Total Non-current Assets 1,573,000 1,663,300 1,705,500

Total Assets 1,826,100 1,902,503 1,928,190

Liabilities

Current Liabilities

Accounts Payable (creditors) 50,000 63,000 72,500

Overdraft 28,070 26,005 29,760

Total Current Liabilities 78,070 89,005 102,260

Non-current Liabilities

Mortgage 75,650 68,670 61,259

Total Non-current Liabilities 75,650 68,670 61,259

Total Liabilities 153,720 157,675 163,519

Owners’ Equity

Capital 1,570,415 1,675,164 1,715,833

Retained Earnings (Net Profit) 407,860 278,656 195,351

Less Drawings of Owners 305,895 208,992 146,513

Total Owners’ Equity 1,672,380 1,744,828 1,764,671

Total Liabilities & Equity 1,826,100 1,902,503 1,928,190


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City Music

Income Statement for years ended 30 June

Revenue 2018 ($) 2019 ($) 2020 ($)

Sales Revenue 1,310,400 1,123,200 936,000

Less Cost of Good Sold 655,200 584,064 468,000

Gross Profit 655,200 539,136 468,000

Less Expenses

Salaries 217,000 222,000 228,000

Insurance 2,700 2,800 3,000

Utilities 12,000 13,900 15,200

Phone & Internet 1,440 1,680 1,800

Rates 1,800 2,200 2,500

Maintenance & Repairs 3,500 7,100 9,000

Marketing & Promotion 4,000 5,200 7,000

Administrative Expenses 4,900 5,600 6,150

Total Expenses 247,340 260,480 272,650

Net Profit 407,860 278,656 195,350

Financial Ratios 2018 2019 2020 Industry average (2020)

Gross Profit Ratio 50.00% 48.00% 50.00% 44%

Net Profit Ratio 31.12% 24.81% 25%

Rate of Return on Owners’ Equity 24.39% 15.97% 11.07% 40%

Gearing (or Debt to Equity) Ratio 9.19% 9.04% 74%

Current (or Working capital) Ratio 3.24:1 2.69:1 2:1


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City Music

Cash Budget for the financial year 2020-2021 (Projection)

Jul-Aug Sep-Oct Nov-Dec Jan-Feb Mar-Apr May-Jun

Cash Inflows:

Sales Revenue 108,230 103,587 237,659 198,074 133,762 119,990

Total Cash receipts (inflows)

108,230 103,587 237,659 198,074 133,762 119,990

Cash Outflows:

Cost of Goods Sold (COGS) 54,115 51,794 118,830 99,037 66,881 59,995

Salaries 34,000 40,000 45,000 44,000 39,500 34,500

Insurance 520 520 520 520 520 520

Utilities 2,675 2,380 2,690 2,780 2,888 2,760

Phone & Internet 300 300 300 300 300 300

Interest & overdraft repayments

500 500 500 500 500 500

Mortgage 2,000 2,000 2,000 2,000 2,000 2,000

Rates 500 500 500 500 500 500

Maintenance & Repairs 400 7,500 600 300 500 300

Promotion & Marketing 1,000 1,000 2,000 3,000 1,000 1,000

Administrative Costs 900 950 1,300 1,330 970 930

Total Cash Payments (outflows)

96,910 107,444 174,240 154,267 115,559 103,305

Net cash flow 11,320 -3,857 63,419 43,807 18,203 16,685

(Total cash receipts – Total cash payments)

Opening bank balance 32,760 44,080 40,223.50 103,643 147,450 165,653

Closing bank balance 44,080 40,223 103,642.50 147,450 165,653 182,338

(Net cash flow + Opening bank balance)


BST315116 of 20


Question 10

(Part A – assesses Criterion 2)

i. In the answer booklet provided, complete a SWOT analysis for City Music.

Explain TWO strengths, TWO weaknesses, TWO opportunities and TWO threats. (8 marks)

ii. For ONE of the threats identified in your SWOT analysis, suggest a strategy to address this

threat. (2 marks)

iii. For ONE of the weaknesses identified in your SWOT analysis, suggest a strategy to address

this weakness. (2 marks)

iv. For ONE of the opportunities identified in your SWOT analysis, suggest a strategy to take

advantage of this opportunity. (2 marks)

(Part B – assesses Criterion 2.)

Calculate the below ratios for City Music in 2020.

i. Gearing ratio

ii. Current ratio

iii. Net Profit ratio (6 marks)

iv. Comment on the financial stability of City Music based on the information calculated in (i) and

the historical data and industry average provided in the stimulus. (2 marks)

v. Comment on the liquidity of City Music based on the information calculated in (ii) and the

historical data and industry average provided in the stimulus. (2 marks)

vi. Comment on the profitability of City Music based on the information calculated in (iii) and the

historical data and industry average provided in the stimulus. (2 marks)

vii. Identify TWO trends in the Cash Budget for 2020-2021.

Are the projections for the year increasing or decreasing, and is this an improvement or

deterioration? Use the figures from the cash budget in your answer. (4 marks)


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(Part C – assesses Criterion 2)

City Music is planning to move forward with upstairs refurbishments to enable the hire of practice rooms

for private tuition. They would like to establish the number of lessons needed in the first year to recoup

their investment:

Selling price (or facility hire fee) per lesson = $15 per lesson

Utilities = $2 per lesson

Administrative costs = $300 per year

Promotional costs = $200 per year

Refurbishments = $20,000

i. Calculate the contribution margin and explain what it means for the business. (3 marks)

ii. Calculate the break-even point in units and sales dollars. (4 marks)

iii. If the desired profit was $10,000, calculate the new break-even point in units and sales dollars.

(4 marks)

iv. If the cost of refurbishments were to increase to $25,000, calculate the new break-even point

(not including any desired profit as noted in (iii) above) in units and sales dollars. (4 marks)

(Part D – assesses Criterion 4)

i. Explain how City Music could respond to their competitors and regain a competitive advantage?

(4 marks)

ii. Suggest TWO criteria for improving business performance over the next 12 months.

(4 marks)

iii. Explain TWO ways that the City Music practice room refurbishments may impact employees?

(4 marks)

iv. Recommend a strategy to enhance City Music’s corporate citizenship and explain how this

could improve business performance in the long term. (3 marks)

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This examination paper and any materials associated with this examination (including answer booklets, cover sheets, rough note

paper, or information sheets) remain the property of the Office of Tasmanian Assessment, Standards and Certification.


Tasmanian Certificate of Education

External Assessment 2020


SECTION A

ANSWER BOOKLET

Pages: 8

You must answer TWO questions from this Section.

Markers Use Only

Criterion 1 Criterion 5

PART QUESTION MARK PART QUESTION MARK

1 1

2 2


LABEL HERE

BST315116 Page 2 of 8

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Part 1 – The Business Environment

You MUST identify which Question (1, 2 OR 3) is being answered HERE

(a) (4 marks)

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Part 2 – Operations Management

You MUST identify which Question (4, 5 OR 6) is being answered HERE

(a) (4 marks)

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paper, or information sheets) remain the property of the Office of Tasmanian Assessment, Standards and Certification (TASC).





SECTION B

ANSWER BOOKLET :

Pages: 16

Please CIRCLE the TWO questions you will answer:

Question 7 Question 8 Question 9

Markers Use Only

Question 7 Question 8

PART CRITERIA MARKS PART CRITERIA MARKS

a – c Criterion 3 a – c Criterion 3

d – g Criterion 4 d – g Criterion 4

Question 9

PART CRITERIA MARKS

a – c Criterion 3

d – g Criterion 4


LABEL HERE


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Question 7 – Marketing Management

Parts (a) to (c) assess Criterion 3.

(a) (12 marks)

i: Identification of more than one target market: ..........................................................................

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ii: Appropriateness and adequacy of promotional strategies: ......................................................

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iii: Place strategies (distribution channels): ................................................................................

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Question 7 continues.


Question 7 (continued).

iv: Establishing brand recognition and loyalty: ............................................................................

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(b) You MUST indicate which issue (part i, ii, iii or iv) is being addressed HERE (6 marks)

Cause of business issue: ................................................................................................................

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Impact of business issue on business performance: ......................................................................

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(c) (2 marks)

Marketing issue - impact on stakeholder: ........................................................................................

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Parts (d) - (g) assess Criterion 4.

(d) (3 marks)

Pricing strategy OR Pricing method appropriate for The Plant Lady: ...............................................

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Product strategy to improve brand recognition: ...............................................................................

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Promotional strategy to improve brand recognition: .........................................................................

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(f) (4 marks)

Short term impact (within 12 months): .............................................................................................

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(g) (4 marks)

Impact on customers: .....................................................................................................................

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Impact on competitors: ...................................................................................................................

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Question 8 Financial Management


(a) (12 marks)

i: Profitability: ..................................................................................................................................

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ii: Financial stability (Solvency): ......................................................................................................

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iii: Liquidity: .....................................................................................................................................

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iv: Efficiency: ...................................................................................................................................

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(b) (6 marks)


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Impact of business issue on business performance: .......................................................................

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(c) (2 marks)

Financial issue - impact on stakeholder: .........................................................................................

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Parts (d) - (g) assess Criterion 4.

(d) (3 marks)

Risk OR Obstacle if The Plant Lady offers indoor plant hire: .............................................................

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(e) (4 marks)

First strategy to improve profitability: ..................................................................................................

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Second strategy to improve profitability: ..............................................................................................

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BST315116 Page 10 of 16


(f) (4 marks)

Short term impact (within 12 months): .................................................................................................

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............................................................................................................................................................

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Long term impact (12 months +): .........................................................................................................

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............................................................................................................................................................

............................................................................................................................................................

............................................................................................................................................................

............................................................................................................................................................

(g) (4 marks)

Impact on owner: .................................................................................................................................

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............................................................................................................................................................

............................................................................................................................................................

Impact on local community: .................................................................................................................

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BST315116 Page 11 of 16

Question 9 Operations Management


(a) (12 marks)

i: Establishing and maintaining a competitive advantage: ...........................................................

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ii: Quality of final product and service: .........................................................................................

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iii: Management of demand for products at peak times: ..............................................................

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BST315116 Page 12 of 16


iv: Production efficiency: .............................................................................................................

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(b) You MUST indicate which issue (part i, ii, iii or iv) is being addressed HERE (6 marks)


............................................................................................................................................................

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Impact of business issue on business performance: .......................................................................

............................................................................................................................................................

............................................................................................................................................................

............................................................................................................................................................

............................................................................................................................................................

............................................................................................................................................................

............................................................................................................................................................

(c) (2 marks)

Operational issue - impact on stakeholder: .....................................................................................

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BST315116 Page 13 of 16

Question 9 (continued)

Question 9 Parts (d) to (g) assesses Criterion 4.

(d) (3 marks)

You MUST indicate (tick ONE) which option they are explaining

Quality management strategy OR Use of technology:

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............................................................................................................................................................

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............................................................................................................................................................

(e) (4 marks)

Recommendation 1: ........................................................................................................................

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Recommendation 2: ........................................................................................................................

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............................................................................................................................................................

............................................................................................................................................................

(f) (4 marks)

Short term impact (within 12 months): .............................................................................................

............................................................................................................................................................

............................................................................................................................................................

............................................................................................................................................................

............................................................................................................................................................


BST315116 Page 14 of 16


Long term impact (12 months +): ....................................................................................................

............................................................................................................................................................

............................................................................................................................................................

............................................................................................................................................................

............................................................................................................................................................

(g) (4 marks)

Impact on suppliers: ........................................................................................................................

............................................................................................................................................................

............................................................................................................................................................

............................................................................................................................................................

Impact on employees: .....................................................................................................................

............................................................................................................................................................

............................................................................................................................................................

............................................................................................................................................................

BST315116 Page 15 of 16

BLANK PAGE

BST315116 Page 16 of 16







SECTION C

ANSWER BOOKLET

Pages: 12

You must answer ALL parts of Question 10.

Markers Use Only

Criterion 2 Criterion 4

Part A Part B Part C Part D


LABEL HERE


BLANK PAGE


Question 10

Part A – assesses Criterion 2.

(i) SWOT (8 marks) S

tre

ng

th

1. ......................................................

......................................................

......................................................

......................................................

......................................................

2. .....................................................

......................................................

......................................................

......................................................

......................................................

We

akn

es

s

1. ........................................................

........................................................

........................................................

........................................................

........................................................

2. .......................................................

........................................................

........................................................

........................................................

........................................................

Op

po

rtu

nit

y

1. ......................................................

......................................................

......................................................

......................................................

......................................................

2. .....................................................

......................................................

......................................................

......................................................

......................................................

Th

rea

t

1. ........................................................

........................................................

........................................................

........................................................

........................................................

2. .......................................................

........................................................

........................................................

........................................................

........................................................




(ii) You MUST identify which THREAT (1 or 2) is being answered HERE (2 marks)

Strategy to address this threat: .......................................................................................................

............................................................................................................................................................

............................................................................................................................................................

............................................................................................................................................................

............................................................................................................................................................

............................................................................................................................................................

(iii) You MUST identify which WEAKNESS (1 or 2) is being answered HERE (2 marks)

Strategy to address this weakness: ................................................................................................

............................................................................................................................................................

............................................................................................................................................................

............................................................................................................................................................

............................................................................................................................................................

............................................................................................................................................................

(iv) You MUST identify which OPPORTUNITY (1 or 2) is being answered HERE (2 marks)

Strategy to take advantage of this opportunity: ...............................................................................

............................................................................................................................................................

............................................................................................................................................................

............................................................................................................................................................

............................................................................................................................................................

............................................................................................................................................................




Part B – assesses Criterion 2. (2 + 2 + 2 = 6 marks)

Required Ratio Calculation

(i) Gearing ratio (Debt to Equity)

(ii) Current ratio

(iii) Net Profit ratio




(iv) (2 marks)

Financial stability: ...........................................................................................................................

............................................................................................................................................................

............................................................................................................................................................

............................................................................................................................................................

............................................................................................................................................................

(v) (2 marks)

Liquidity: .........................................................................................................................................

............................................................................................................................................................

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............................................................................................................................................................

............................................................................................................................................................

(vi) (2 marks)

Profitability: .....................................................................................................................................

............................................................................................................................................................

............................................................................................................................................................

............................................................................................................................................................

............................................................................................................................................................

(vii) (4 marks)

First trend in the cash budget: .......................................................................................................

............................................................................................................................................................

............................................................................................................................................................

............................................................................................................................................................

Second trend in the cash budget: ...................................................................................................

............................................................................................................................................................

............................................................................................................................................................

............................................................................................................................................................




Part C – assesses Criterion 2.

(i) (3 marks)

Contribution margin: .......................................................................................................................

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............................................................................................................................................................

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............................................................................................................................................................

(ii) (4 marks)

Initial break-even: ...........................................................................................................................

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............................................................................................................................................................

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............................................................................................................................................................

(iii) (4 marks)

Break-even for desired profit: ..........................................................................................................

............................................................................................................................................................

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............................................................................................................................................................

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............................................................................................................................................................

............................................................................................................................................................




(iv) (4 marks)

Break-even - recalculated due to a change in costs: .......................................................................

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............................................................................................................................................................

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............................................................................................................................................................

Part D – assesses Criterion 4.

(i) (4 marks)

Regain competitive advantage: .......................................................................................................

............................................................................................................................................................

............................................................................................................................................................

............................................................................................................................................................

............................................................................................................................................................

............................................................................................................................................................

............................................................................................................................................................ (ii) (4 marks)

First criteria: ....................................................................................................................................

............................................................................................................................................................

............................................................................................................................................................

............................................................................................................................................................

............................................................................................................................................................

Second criteria: ...............................................................................................................................

............................................................................................................................................................

............................................................................................................................................................

............................................................................................................................................................

............................................................................................................................................................




(iii) (4 marks)

First impact on employees: .............................................................................................................

............................................................................................................................................................

............................................................................................................................................................

............................................................................................................................................................

............................................................................................................................................................

Second impact on employees: ........................................................................................................

............................................................................................................................................................

............................................................................................................................................................

............................................................................................................................................................

............................................................................................................................................................

(iv) (3 marks)

Corporate citizenship strategy: .......................................................................................................

............................................................................................................................................................

............................................................................................................................................................

............................................................................................................................................................

............................................................................................................................................................

............................................................................................................................................................

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............................................................................................................................................................

BST315116 Page 10 of 12

BLANK PAGE

BST315116 Page 11 of 12

BLANK PAGE

BST315116 Page 12 of 12



BUSINESS STUDIES - Department of Education · 2020. 11. 17. · small, medium and large floral...

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