Year

Paper

Unit

Marks

S2004 4 1 [12]

S2008 3 1 [20]

W2006 3 1 [20]

S2009 3 1 [20]W2004 4 1

W2008 3 1 [20]W2003 4 1W2003 4 1

W2008 3 1 [20]

S2002 3 1S2002 4 1 10

S2003 3 1

S2007 3 1 [14]

S2009 3 1 [8]W2004 4 1

W2005 3 1

W2005 3 1

W2007 3 1 [20]

W2008 3 1 [16]

W20091 3 1 [20]

S2003 3 1

W20091 3 1 [6]

S2004 3 1

S2004 4 1 10

S2007 3 1 [20]

W20092 3 1 [20]

W2002 4 1W2002 4 1

S2004 4 1 [8]

S2006 3 1 [20]

W2006 3 1 [16]

W20091 3 1 [20]

W20092 3 1 [20]

S2007 3 1 [14]

S2008 3 1 [20]W2007 3 1 [14]

S2004 3 2 [12]

S2004 4 2 [12]

S2006 3 2 [20]

S2008 3 2 [14]

W2002 3 2

W2003 4 2

W2006 3 2 [14]

W2007 3 2 [20]

W2008 3 2 [16]

W20091 3 2 [16]

W20092 3 2 [16]

W2003 3 2

S2002 4 2 20

S2006 3 2 [12]

S2007 3 2 [10]W2004 4 2

W2005 3 2

W20092 3 2 [14]S2002 4 2 10

S2008 3 2 [10]

S2009 3 2 [16]

S2003 3 2S2003 3 2

S2006 3 2 [10]

W2002 4 2

W2002 4 2

S2002 3 2

S2002 3 2S2003 4 2 8S2003 4 2 12

S2004 4 2 [8]

S2008 3 2 [8]W2002 4 2

W2004 3 2

W2005 3 2

W2006 3 2 [8]S2003 4 2 8S2003 4 2 12

S2007 3 2 [14]

S2009 3 2 [20]

W2003 3 2

W2004 4 2

S2004 4 3 10

S2005 3 3

W2003 4 3W2003 4 3

W20092 3 3 [8]W20092 3 3 [10]

S2002 4 3 10

S2007 3 3 [20]

S2009 3 3 [16]

W2004 4 3

W2008 3 3 [8]

S2003 3 3

S2004 3 3

S2008 3 3 [10]W2002 4 3

S2002 3 3S2002 3 3

S2004 4 3 20

S2006 3 3 [16]

W2002 3 3

W2002 3 3

W2004 3 3W2004 4 3

W2004 4 3

W2005 3 3

W2006 3 3 [20]

W2007 3 3 [6]

W2007 3 3 [14]

W20092 3 3 [20]S2002 4 3 8

S2002 4 3 12

S2004 4 3 10

W2002 4 3

W2003 3 3

W2005 3 3

W2008 3 3 [12]

S2003 4 3 10S2003 4 3 10

W2004 3 4

W20091 3 4 [8]

S2008 3 4 [8]

S2002 3 4

S2004 3 4

S2003 3 4

S2006 3 4 [14]W2003 4 4

S2004 3 4 [4]

S2009 3 4 [16]

W2003 3 4

W2004 4 4

W2005 3 4

W2006 3 4 [16]

S2002 4 4 8

S2002 4 4 12S2003 4 4 20W2003 4 4

W2007 3 4 [16]

W2002 3 4

W2008 3 4 [10]

W2008 3 4 [4]

W2003 4 4

W20091 3 4 [16]

S2007 3 4 [20]

S2009 3 4

W20091 3 4 [12]

W2002 3 5

W2003 3 5

W2004 3 5

W2007 3 5 [14]

W20091 3 5 [10]

S2002 4 6 10

S2003 4 6 20

W2006 3 6 [5]W2008 3 6 [8]S2002 3 6

S2003 3 6S2003 3 6S2004 3 6

W2002 4 6W2002 4 6

S2003 4 6 8S2003 4 6 12

W2004 3 6

S2002 4 6 20

S2004 3 6

W2002 3 6

W2004 4 6

W2005 3 6

W2008 3 6

W20092 3 6

S2005 3 6

S2007 3 6 [6]

S2008 3 6 [16]

W2006 3 6 [5]

W2007 3 6 [8]

W20091 3 6

W20092 3 6 [8]S2002 3 6

S2004 4 6 8

S2006 3 6 [14]

S2007 3 6 [10]S2007 3 6 [4]

S2007 3 6 [8]

S2008 3 6 [14]

S2009 3 6 [3]S2009 3 6 [6]S2009 3 6 [8]W2002 4 6W2003 4 6W2003 4 6W2004 3 6

W2005 3 6

W2006 3 6 [8]

W2007 3 6 [8]

W20091 3 6 [6]

W20092 3 6 [16]

S2006 3 7 [4]

S2006 3 7 [4]

S2006 3 7 [6]

W2003 3 7

W2004 4 7

Question

Topic

1

1

1

2(a) Discuss how the objectives of businesses might differ from those of the State. [8] 2

2Evaluate the importance to a business of setting objectives. [12] 4Discuss why different stakeholder groups might have conflicting objectives. [8] 4

4

5To what extent should ethical issues influence business decision-making? 5

(ii) Discuss the likely impact of economic constraints on the future success of this business.[8] 5

Evaluate the likely impact on the business of the forecast economic conditions in Appendix A. 5

5(b) Evaluate how businesses might respond to fluctuations in exchange rates. [12] 5

5

5

5

5

5

legal structure

(a) Briefly explain two benefits to Ibrahim of the business being a limited company. legal structure

MBO

pestg analysis

pestg analysis

pestg analysis

Two medium-sized shoe retailers are proposing to merge. (a) Examine the possible reasons for this merger. [8]

Would you recommend PT to take over the TV4U chain of shops? Evaluate the advantages and disadvantages of this takeover and justify your recommendation.

Discuss the advantages and disadvantages to companies, such as UWA, of a strategy of continuous growth through integration with other businesses.

Increasing opportunities for multinational investment by car manufacturers will create more threats than opportunities for EM.’ (lines 37–38) To what extent do you agree with this statement?

Discuss whether the government should support and protect important industries in your country.

To what extent will the future success of Tanroh’s business depend on him setting clear objectives? (e) Evaluate the impact on Sportwize Ltd. of the predicted changes in Government economic policy [10]

Assume Eastern Motors has a factory in your country. Analyse the impact of any two legal controls on this factory’s operations.

5 Discuss the external economic constraints that might limit the future success of this business. [12]

6 Discuss whether Mercardo should continue to manufacture products from the factory that pollutes the local environment. [20]

Discuss the extent to which the successful expansion of a business, such as Curry Cuisine, is helped or constrained by the external factors of technological change and the legal environment.

(b) Using your results from 5(a) and other information, recommend to Tanroh which of the two options he should choose. Justify your recommendation.

Discuss the relative importance of the factors that you think were significant in making The Sauce Company a successful business. (i) Analyse the advantages and disadvantages to Rashid and Shivani of their decision to take out a franchise. [8]

(e) Do you think that Topaz should introduce Management by Objectives? Justify your answer. [8]

Apart from ethical issues, evaluate the impact of one other external influence on businesses in your country. [10]

Discuss the relative importance of the factors, apart from external economic conditions, that are most likely to affect the future success of Craft Designs.

Discuss whether the future success of the company will depend more on June’s management skills or on external factors outside of the company’s control.

privatisationEvaluate the effects of the privatisation of this business on stakeholders. [12] privatisation

stakeholders

stakeholders

stakeholders

stakeholders

stakeholders

swot

swot

Discuss the strengths and weaknesses of Chas and Ling’s original business start-up. swot

marketing strategy

marketing strategy

marketing strategy

marketing strategy

marketing strategy

marketing strategy

marketing strategy

marketing strategy

marketing strategy

marketing strategy

marketing strategy

price

Explain why the objectives of a public sector business might change if it were to be privatised.{8}

(b) Critically discuss how the stakeholders of these retailers might react to the proposed merger.[12]

To what extent would you advise businesses such as Rave to consider the interests of all stakeholder groups when taking major decisions?

The different stakeholder groups of LoCost Airways will be affected in very different ways if the firm is sold to UWA. Discuss whether it is in the best interests of LoCost Airways’ stakeholders for UWA to take over the business. (You might find data in Appendix B helpful).

To what extent should Ibrahim consider the objectives of stakeholders other than shareholders? Justify your answer.

To what extent should it be a priority for this business to meet the needs of stakeholders other than shareholders?

Discuss the risks and rewards to Ade resulting from his original decision to set up his own business.

Evaluate what you consider to be the most important internal and external factors that could determine the success of PT over the next five years.

(c) Assume that the directors decide to export “Robot Warrior” and “Gita Doll” to your country. (ii) Suggest and evaluate a strategy for marketing these toys in your own country. [12]

A manufacturer of chocolate bars is considering changing the price of its products in order to increase its market share.marketing strategy, other than price, that would be needed to increase the business’ market share. [12]

Discuss how a consumer product business such as Rave could try to ensure survival when faced with increased competition.

(b) Discuss possible changes to PT’s future marketing strategy based on these results and other information in the case. (e) Assume the owners decide to go ahead with the new conference centre. Suggest and evaluate a marketing strategy for the launch of this new centre. [12]

A multi-national company is about to launch a new camera in your country. Discuss a marketing strategy the company might use to achieve a successful launch. [20]

Gavin suggested taking the airline “up market” to a different market segment. To what extent do you agree with him that “the most important change we need to make to our marketing strategy to guarantee success is more promotion”? (lines 51-52)

Assume that Chas and Ling decide to go ahead with the “ready made meals” proposal. Evaluate the arguments for and against developing a marketing plan for this project.

Recommend to Tanroh a possible marketing strategy for the safari lodge project. Fully justify your recommendation.

Recommend an appropriate marketing strategy that Ibrahim might use to achieve a successful launch of Hi Spice sauce in your country. Justify your recommendation.

Assume Option 1, the market development option, is chosen. Discuss the important features of a marketing plan for a successful launch in your country of the ethical beauty products. ii) The marketing manager needs to decide on the price for the Autotrac. Advise the marketing manager on an appropriate pricing strategy for this new product. [10]

Evaluate the importance of product portfolio management for businesses. produt portfolio

produt portfolio

produt portfolioEvaluate the usefulness of the Boston Matrix to a manufacturer of soft drinks. [20] produt portfolio

produt portfolio

produt portfolioHow might business managers decide on the promotional budget? promotion

r&d

r&d

research(ii) Advise Rashid and Shivani how they might conduct further market research. [8] research

research

research

research

sales forecast

(ii) To what extent might sales forecasts be useful for a business such as Sportwize Ltd? [8] sales forecastWhy might a computer manufacturer want to forecast demand for its products? sales forecastEvaluate the usefulness to the computer manufacturer of time series analysis. sales forecast

sales forecast

sales forecastEvaluate the usefulness to a marketing manager of demand elasticities. [20 sales forecast

sales forecast

(b) Evaluate the marketing factors that could influence the sales success of the new phone. [12] sales forecast

sales forecastDiscuss how a manufacturer of shoes might segment the market for its products. segmentationEvaluate the usefulness to businesses of market segmentation. segmentation

segmentation

segmentation

(b) (i) Outline the importance of value analysis to the development of the Autotrac product. [6] vale analysis

(b) Using Appendix B and other information, evaluate the usefulness of product portfolio analysis techniques, such as the Boston Matrix, to Rave.

(b) Using your result from (a) and any other useful information from the case, recommend whether Ade should stop production of the stone sculptures.

4 (a) Analyse how value analysis could assist in the development of the new mobile phone (cell phone). [6]

Recommend what CBC should do with the Cityville hairdressing shop. Fully support your recommendation. (should it shut down or continue)

(b) Assess the advantages and disadvantages to the Research and Development department of changing the organisational structure of the business.

To what extent do you agree with the Chief Executive when he states that ‘Research and Development spending always creates innovative products and increases profits’? (lines 58–59) (i) Suggest two reasons why the bank manager considered the market research undertaken by Rashid and Shivani to be inadequate. [2]

(a) Assess the usefulness of market research methods, other than those referred to in the case, that Rave could use before deciding whether to launch “Fruit Choc Delight”. Discuss the factors that might influence the choice between undertaking either primary or secondary research. [8]

Evaluate the methods that a manufacturer might use to carry out a survey of the potential market for a new chocolate bar. [12]

(i) Explain briefly how the sales data in Appendix A could be used to obtain a sales forecast for Sportwize Ltd. for Quarter 3 in 2002. (No calculations are required.) [4]

A manufacturer of chocolate bars is considering changing the price of its products in order to increase its market share. (a) Analyse the usefulness of price elasticity of demand to managers of the business. [8]

(a) Using the data in Appendix A calculate, for both PT and its major competitor, the: (i) Income elasticity of demand (ii) Promotion elasticity of demand.

(e) Assume that Food2U decide to supply the supermarkets. Evaluate the factors that will determine the future level of sales of the meals. [12]

(a) Briefly explain how Sally might have forecasted demand for low priced flights for the next two years (line 37).

Evaluate the importance to Craft Designs of effective market segmentation in the tourist gift market.

In your opinion, should EM go ahead with the plan to start producing luxury and sports cars for sale in new market segments? Justify your decision.

vale analysis

Communication

Communication

CommunicationEvaluate the importance of informal communication to business efficiency. [10] Communication

(a) Analyse two possible reasons for the communication problems in the factory. Communication

(b) Evaluate two ways in which communication might be improved in the factory. Communication

Health

Human Resource

Human Resource

Human Resource

(a) Analyse the importance to Tanroh of human resources planning if Option A is chosen. Human Resource

Labour

(a) Discuss the advantages and disadvantages for Topaz of its staff joining a Trade Union. [10] Labour

(a) Discuss how PT’s management might resolve the pay dispute with the workers. LabourEvaluate the influence informal leadership might have on a business. [12] Leadership

motivation(ii) Discuss how the owners might improve the motivation of the sports tutors. [8] motivation

motivation

motivation

motivation

motivation

motivation(a) Analyse the problems that might arise from a poorly motivated workforce. [8] motivation

motivation

motivation

motivation

motivation

Evaluate how each of the following might affect the success of a business: (a) Value analysis. [10]

Evaluate the methods management might consider to ensure effective communication within a decentralised organisation. [10]

Evaluate how communications between management and staff might be made more effective within Wotton College. [14]

Analyse how managers might assess the effectiveness of communication within a business. [10]

Explain the significance of the following for businesses: (i) Health and Safety Legislation (ii) Training.

The Operations Director has proposed outsourcing all supplies of stone sculptures so that the company could start jewellery production. Discuss how Ade might try to solve what you consider to be the most important human resource and operational management problems that might result from this decision.

b) ‘If we can increase productivity and reduce wastage and absenteeism in the Northcape factory then this will make us more competitive.’ (lines 48–50) Recommend an appropriate Human Resources strategy to achieve this objective. Support your recommendation.Evaluate how each of the following might affect the success of a business: (a) Human resource management [10]

(b) Examine how Rashid and Shivani might try to establish good relations between management and workforce in their business. [10]

(i) Suggest possible reasons for the low levels of motivation of the sports tutors at Sportwize Ltd. [4]

With reference to the theories of Taylor and Herzberg, discuss the importance of financial incentives as a way of improving the productivity of workers. [20]

Discuss how the directors might encourage staff involvement and cooperation in helping to solve the problems faced by Rave.(ii) Discuss how the directors might encourage these new employees to work effectively as part of a team. [8]

(a) (i) Suggest possible advantages to the business of employing a part-time and flexible workforce. [4]

(a) Assume the expansion goes ahead. Discuss how Neema and Min Chul could try to make sure that the larger workforce is committed and well motivated. [10]

(b) Critically examine the schemes managers might use to widen employee participation in theworkplace. [12]

7 Advise the management of Mercardo on the most appropriate ways to motivate production line workers. [20]

The rapid expansion of businesses such as LoCost Airways often leads to problems with the management of people within the organisation. Evaluate how businesses could attempt to reduce these problems.

(a) Analyse two possible problems that might result from the approach to managing staff used within the Asian Experience kitchen.

motivation

motivationWhy is it important for managers to distinguish between ‘authority’ and ‘responsibility’? Organisation

Organisation

Examine the factors that a business might consider when deciding whether to decentralise. Organisation

With the aid of an organisation chart, explain the main features of a formal organisation. [8] Organisation

Organisation

Organisation

Organisation

TrainingEvaluate the methods a business might use to train its staff. Training

break even

break even

Capacity utilisation

costing

costing

Lean production

Lean productionEvaluate the usefulness to a food manufacturer of lean production methods. [12] Lean production

location

location

location

location

location

location

(b) Evaluate the appropriateness of Ling’s approach to managing staff within the Curry Cuisine restaurant.

Discuss whether the future success of the company will depend more on June’s management skills or on external factors outside of the company’s control.

Discuss the factors that might influence the decision whether or not to decentralise decision within an organisation.

(e) If the Autotrac project is successful, the business will grow quickly. Suggest and justify an appropriate organisational structure for Oriental Engineering Ltd. if this happens. [10]

1 Discuss the advantages and disadvantages for Mercardo plc of introducing a decentralised management structure. [12]

(b) Do you agree with Abi that Tanroh will need to delegate if more staff are employed? Give reasons for your answer, explaining the possible advantages and disadvantages to Tanroh. “The training of workers is an unnecessary business cost.”To what extent do you agree with this statement?

(b) (i) The Insert shows Food2U’s existing break-even graph. Using the data from Appendix A, draw the new break-even graph on the Insert. [5] (ii) State the new break-even level of output and new level of profit (at full capacity) in the spaces provided on the Insert. [3] (iii) On the basis of your graph and the other information available, recommend to Neema and Min Chul whether to accept the new proposal. [10]

(b) Evaluate the usefulness to Ibrahim of using break-even analysis to decide whether to go ahead with the ‘Export Project’.

Analyse possible reasons why average total costs have increased following the increase in capacity utilisation shown in Table 1. (d) Analyse the factors that Sportwize Ltd. should consider before deciding whether to accept the new contract from the college at $12 per student per day (lines 17–19). [8]

(b) (i) Using Appendix A, calculate the contribution per toy that Topaz would receive from the Adams order. [4] (ii) Using all of the evidence, recommend to the directors of Topaz whether the Adams order should be accepted. [10]

(e) To what extent would Just in Time be appropriate for the management of stocks in this business? [10]

Would you recommend the introduction of lean production methods at Rave? Justify your answer.

(c) Assume that the directors decide to export “Robot Warrior” and “Gita Doll” to your country. (i) Outline two problems that Topaz might experience. [4]

Recommend whether EM should set up and operate its own car retailing business in Country Z. Justify your recommendation. (a) Discuss the factors the company directors should consider before deciding whether to relocate the factory. [10]

The management of a computer manufacturer is considering opening a new factory.(a) Discuss the factors the management should consider before deciding where to locate thenew factory. [8]

(c) Assume that Mercardo decides to build a new factory. Evaluate the advantages and disadvantages to Mercardo of locating the factory in your country. [12]

Using the data in Appendix C and any other relevant information, recommend which city LoCost Airways should locate their next base in. Justify your answer.

To what extent is product quality affected by production methods? method

Evaluate the methods a business might use to ensure that it produces products of good quality. methodEvaluate the appropriateness to a bakery of flow production. methodAnalyse why a car manufacturer might not use flow production techniques. [8] method

method

Network analysis

Network analysis

Network analysis

Quality

TQM

Evaluate the usefulness of setting budgets to the management of a multi-product business. budget

budget

budget

Analyse the benefits to Tanroh of producing cash flow forecasts. budget(ii) Evaluate two ways in which the business could improve its cash flow position. [10] cash flow

cash flow(ii) Evaluate the usefulness of a cash flow forecast to Rashid and Shivani. [6] cash flow(d) (i) Outline two problems of forecasting cash flows for Strategy C. [4] cash flow

cash flowExplain why there might be a difference between a business’ profit and cash flow. [8] cash flow

Evaluate the advantages and disadvantages to Curry Cuisine of using batch production methods for the “ready made meals” project. (d) Examine the usefulness of critical path analysis in planning and constructing the new conference centre. [8]

(a) Using the data in Appendix C, construct a network diagram (CPA) for the safari lodge project, showing all earliest start times and latest finish times.

(b) If activity B is delayed by two weeks, briefly advise Tanroh on what steps he could take to avoid the project taking longer than 16 weeks. “Product quality guarantees a successful business.” To what extent do you agree with this statement? [20]

Evaluate whether adopting Total Quality Management would be likely to solve the quality problems of Saucy Choices.

The Operations Director has proposed outsourcing all supplies of stone sculptures so that the company could start jewellery production. Discuss how Ade might try to solve what you consider to be the most important human resource and operational management problems that might result from this decision.

a) Using data from Appendix B, calculate for the Northcape factory in 2008: (i) The proportion of workers who left [2] (ii) Output of cars per worker. [2]

(b) Using Table 1 and other information in the case, recommend which candidate Ibrahim should appoint as Operations Manager. Justify your recommendation. (c) Analyse the factors that the directors should consider when choosing an appropriate source of finance for this new project, assuming they decide to proceed with it. [8]

(d) Assume that the business goes ahead with the new project and relocation. Recommend how the business might raise the finance needed, using relevant accounting ratios to help you. [12]

(ii) Evaluate possible methods of financing the purchase of the machines and the lease of the new premises. [10]

To what extent do you agree with Ling that the business would have problems raising the capital needed for the “ready made meals” project either from internal sources or from a loan? The use of relevant accounting ratios (based on the data in Appendix B) to support your judgement will be rewarded.

(b) Using your results from (a) and other information, advise Ibrahim on the best way to raise the $0.25m required for the ‘Export Project’.

Evaluate the usefulness to the management of a manufacturing business of establishing and analysing budgets.

(b) Assess the usefulness of sales forecasting to LoCost Airways. [8] (a) Using the data in Appendix A, calculate variances for the car hire division.

(i) Refer to the insert. Complete the cash flow forecast for this business for the first four months of trading. [8]

Evaluate the methods a business might use to improve the management of its working capital.{20}

Why do businesses depreciate their fixed assets? depreciationEvaluate two methods a business might use to depreciate fixed assets. depreciation

depreciation

investment appraisal

investment appraisal

investment appraisal

investment appraisal

investment appraisal

investment appraisal

investment appraisal

P&L

P&L

P&L

P&L

P&L

P&L

P&L(i) Analyse and comment on the liquidity of this business. [8] ratios

ratios

ratios

ratios

(b) Outline two drawbacks to the ratio analysis that you have conducted. ratios

ratios

(d) Advise Min Chul on how to depreciate the new machinery. Justify your answer. (No calculations are required.) [8]

Evaluate the usefulness of investment appraisal techniques when choosing between alternative investment projects.

(ii) Using Appendix B and the discount factors provided, calculate the Net Present Value of Strategy C. [4](iii) Explain whether your result to (ii) might influence the directors to choose Strategy C. [4]

b) (i) Conduct an investment appraisal of the new conference centre using the payback and net present value methods of appraisal. You may assume that all costs are paid and revenue is received in cash. [10] (ii) Recommend whether Nikolai and Christina should proceed with this new investment. Using your results from (b)(i) and any other information available to you, explain the reasons for your recommendation. [10]

Evaluate the usefulness to management of both the payback period and net present value techniques of investment appraisal when deciding where to locate the new factory. [12]

2 (a) Use Appendix A to calculate for both options: (i) The Average Rate of Return. [4] (ii) The Net Present Value (at 10% discount) [4] (b) How useful might these results be to Mercardo’s directors? [4]

(a) Calculate for the safari lodge option, using the data in Appendix A: (i) The annual average rate of return [3] (ii) The net present value at a 10% discount rate. [3]

(a) Calculate for Option 2 the: (i) Average Rate of Return (ARR). [4] (ii) Net Present Value (NPV) using the10% discount factors in Table 1. [4]

2 (a) Assuming Paula makes the changes outlined in Option 1, calculate for 2006: (i) the revenue from student fees, assuming the price elasticity of demand estimate is (i) the revenue from student fees, assuming the price elasticity of demand estimate is correct. [4] (ii) teachers’ salary costs [1] (iii) material costs [1] (iv) net profit. [2] Show all workings.

(a) Calculate the effect on the company’s profit of stopping production of the stone sculptures. Show your calculations and state any assumptions you make.

Which of the two options for solving the capacity problem would you recommend to PT’s Board of Directors? Support your answer by analysing data in Table 2 (including relevant calculations) and any other useful information.

(b) Using your results from (a), analyse briefly why profits for the car hire division were less than budgeted.

(a) Draw up a forecasted Profit and Loss Account for 2008, using the data in Appendix A and the management consultant’s estimates. (lines 68-74)

(a) Draw up a revised Profit and Loss Account for The Sauce Company making the changes forecast by Ibrahim on lines 83–86. Assume no other changes. [6]

Using the data in Appendix B, calculate the impact on the company’s annual profit of closing the Cityville hairdressing shop.

Explain how the management of the liquidity of a business might be made more effective with the use of appropriate accounting ratios. [8]

Using Appendix A and appropriate accounting ratios, analyse the likely reasons for decliningprofitability at Rave over the period shown.

(a) Using the two ratios suggested by the Finance Director, analyse and comment on the financial efficiency of Craft Designs.

(c) Discuss two ways in which the Finance Director could improve the financial efficiency of the company.

ratios

ratios

b) Analyse two possible reasons for EM’s falling gross profit margin. ratios

c) Evaluate any two ways in which EM might increase its net profit margin. ratiosEvaluate the usefulness to stakeholders of ratio analysis. [12 ratiosWhy might profitable businesses have cash flow problems? [8] ratiosEvaluate three methods managers might use to improve the cash flow of a business. [12] ratios(c) (i) Using the data in Appendix B, calculate the current gearing ratio for Food2U. [2] ratios

ratios

(c) Discuss two ways in which this division might be made more profitable. ratios

ratios

(a) Calculate the company’s gearing ratio and one liquidity ratio from the data in Appendix B. ratios

(c) Briefly assess the usefulness of the decision tree technique to Rave’s directors.

Assume you are PT’s bank manager. Discuss the accounting data and ratios you would need before deciding whether to lend PT the finance needed for expanding production capacity.

a) Using data from Appendix A, calculate the following ratios for EM in 2008: (i) Gross profit margin [3] (ii) Net profit margin.

3 (a) Calculate financial efficiency ratios for Mercardo plc using the data in Appendix B. [6] (b) Evaluate any two ways in which the business might improve its financial efficiency. [8]

(b) Briefly assess two ways in which the gross profit margin could be raised for the take-away products (calculations not needed).

(b) Which of the two options would you advise June to choose? Fully support your answer by referring to your results from 4(a) and other information.

(a) Refer to Appendix C. Draw a decision tree to represent the decision of whether or not to market the “Fruit Choc Delight” product.

(b) Calculate the expected monetary value of the decision to market the “Fruit Choc Delight” product.

(c) (i) Using the decision tree in Appendix A, calculate the expected return from manufacturingthe Autotrac. Show all of your working. [6] (ii) Evaluate the usefulness of this technique to the business’ management when taking the decision whether to build the Autotrac or not. [6]

Evaluate the usefulness of either decision trees or linear programming/blending techniques in improving management decision-making. [20]

legal structure

legal structure

pestg analysis

pestg analysis

pestg analysis

privatisationprivatisation

stakeholders

stakeholders

stakeholders

stakeholders

stakeholders

marketing strategy

marketing strategy

marketing strategy

marketing strategy

marketing strategy

marketing strategy

marketing strategy

marketing strategy

marketing strategy

marketing strategy

marketing strategy

produt portfolio

produt portfolio

produt portfolioprodut portfolio

produt portfolio

produt portfolio

sales forecast

sales forecastsales forecastsales forecast

sales forecast

sales forecastsales forecast

sales forecast

sales forecast

sales forecastsegmentationsegmentation

segmentation

segmentation

vale analysis

vale analysis

Communication

Communication

CommunicationCommunication

Communication

Communication

Human Resource

Human Resource

Human Resource

Human Resource

Leadership

Organisation

Organisation

Organisation

Organisation

Organisation

Organisation

Organisation

break even

break even

Capacity utilisation

Lean production

Lean productionLean production

Network analysis

Network analysis

Network analysis

depreciationdepreciation

depreciation

investment appraisal

investment appraisal

investment appraisal

investment appraisal

investment appraisal

investment appraisal

investment appraisal