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(a)1.
a-L-
SECTION A
MODULE IPRODUCTION AND OPERATIONS MANAGEMENT
Answer ONE question from this section.
A business has to take into consideration a number of factors in
order to decide whatproducts to produce. Explain how the following
factors may influence such a decision.
(i) Competitors'behaviour(ii) Technology(iii) Management(iv)
Financial viability [ 8 marks]
When designing any product, a number of features have to be
considered by the designeror design team.
(i) What is a Product Design Brief? [ 2 marks](ii) Identify FIVE
main features of a Product Design Brief and explain why each is
important in designing a new product. [15 marks]Total25
marks
(b)
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(a)2. Sure Cement Manufacturing Company uses a flowincorporation
in 1999.
(i) Define flow production.
production system since its
State THREE main features of a flow production.
I lmark ][ 3 marks]
Discuss THREE advantages and THREE disadvantages of the flow
production
(ii)(iii)
(b)
system. lL2 marksl
Clean-Sud, a soap manufacturing company, is planning to
introduce a new detergent onthe market. The task involved in
producing this product, the estimated times requiredand the order
in which the tasks may be undertaken are given below. (The tasks
havebeen coded).
Tasks Order/Dependency Estimated Time(weeks)
A
B
C
D
E
F
G
H
I
Must be done first
Can only start when A is completed
Can only start when A is completed
Can only start when B is completed
Can only start when C is completed
Can only start when F. is completed
Must wait for D and E to be completed
Can only start when F is completed
Must wait for G and H to be completed
4
5
4
6
8
5
8
5
7
[ 9 marks]Total25 marks
Draw a network diagram to represent these activities.
0223302A|CAP82004GO ON TO THE NEXT PAGE
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3.
4.
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SECTION B
MODULE 2
FUNDAMENTALS OF MARKETING
Answer ONE question from this section.
Newspapers and television are two popular advertising media. In
choosing between these twomedia, advertisers take a number of
factors into consideration. Identify FOLrR of these factorsand
explain how EACH might influence an Airline's choice for
advertising a flight to a newdestination. [25 marks]
As a Management of Business student, you are asked to write on
the topic "How a producerdecides which channel of distribution will
get the product to the right place at the right time."Your
preliminary research shows that the following factors play a key
role in the choice ofchannel(s).
The Product
The Market
The Company
(a) (i) Define 'channel' of distribution. I lmark][ 6 marks](ii)
Describe TWO major types of distribution channels.
Explain THREE ways in which each of the given factors may
influence the choice ofa distribution channel for a producer. [18
marks]
Total25 marks
(b)
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-5-
SECTION C
MODULE 3
SMALL BUSINESS MANAGEMENT
Answer ONE question from this section.
John Jones is an expert on preparing delicious chicken. He is
thinking of settingjerk chicken business as a sole trader
enterprise, and has approached you for advice.management
consultant, you are required to advise John on the following:
(a) THREE characteristics he will need in order to succeed as an
entrepreneur.[6 marks]
THREE challenges he may face as an entrepreneur. [3 marks]Two
reasons why he may need to conduct a market feasibility study. [4
marks]THREE factors which may influence the pricing of his product.
[6 marks]TWO ways in which he may promote his product. t2 markslTwo
factors that may influence the location of his business. [4
marks]
upaAsa
(b)
(c)
(d)
(e)
(o
6.
Total25 marks
Mary has just completed studies in Pharmacy and is contemplating
opening her own pharmacy.She approached the bank for a loan, and
the bank has asked her to produce a business plan as apre-requisite
for the loan.
Mary has no idea what a business plan is and has approached you
for advice. You are requiredto:
(a)
(b)
(c)
(d)
(e)
Explain to her what a business plan is. I l mark ]outline Two
reasons for the importance of such a plan. [ 4 marks]outline FIVE
steps in the preparation of a business plan. [10 marks]Explain TWO
legal requirements Mary will have to observe in setting up her
business.
[ 4 marks]Suggest THREE ways in which Technology could assist
Mary in efficiently operatingherbusiness. [ 6marks]
Total25 marks
02233020/CAPE 2004
END OF TEST
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,}_$
t
1.
SECTION A
MODULB 1
PRODUCTION AND OPERATIONS MANAGEMENT
Answer ONE question from this section.
Huckleberry Processing Inc. is a two-year old company which
produces lamb for the lqcalmarket in Blackberry Isle. The
Production Manager, Mr. Knowles, has noticed a shortage ofcarcasses
on several occasions and has decided to institute a system of
forecasting to overcomethe problem. He wants to know which of the
two methods of forecasting: least squares regres-sion or consumer
surveys is more appropriate.
Identify the FOUR MAIN steps involved in customer surveys and
explain how Mr.Huckleberry may use these to develop a system for
forecasting for his business.
ll2marksl
Explain TWO strengths and TWO weaknesses of customer surveys
compared to least
(a)
(b)
(c)
(a),
(b)
squares regression as methods of forecasting.
Recommend and justify a forecasting method to Mr. Knowles.[ 8
marks]
[ 5 marks]Total25 marks
Productivity and Total Quality Management (TQM) appear to be
closely related con-cepts. With the aid of an example, distinguish
between the TWO concepts and explainbriefly how they are related. [
6 marks]Discuss ONE way in which EACH of the following factors may
impact on the level ofproductivity and TQM, in a large cement
plant:
(i) Supervisory skills(ii) Labour-management relations(iii)
Continuousemployeetraining ll9marksl
Total25 marks
02233020|CAPE 2006GO ON TO THE NEXT PAGE
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(a)3.
(b)
-3-
.SECTION Bi
MODULB 2
FUNDAMENTALS OF MARKETING
Answer ONE question from this section.
Define the term "qegmentation".
State THREE benefits of segmentation.
[ 2 marks][ 3 marks]
(c)
Carib Flavors is developing the marketing strategy for a new
drink called Orbit, a non-alcoholic, glucose-based energy drink
containing ginseng. Management believes thatthe market for this
drink can be segmented in terms of demographics and
psychographicsfor better targeting.
Select, explain and justify trow tWO demographic and TWO
psychographic variablesmay be used to segment the market for this
new drink. [20 marks]
Total25 marks
Regional Seminars Inc. is a small event management company in
the process of developingseveral new workshops in personal
development for the general public. Management hasdecided to
conduct a survey to answer the question: Would a sufficient number
of personspatronize the workshop.sZ Managements is trying to decide
whether to use probability or non-probability sampling to select
respondents for the survey. Since it has six weeks to do
thisresearch and a limited budget, the company has narrowed the
choices down to systematicrandom sampling and convenience
sampling.
(a) Define the term "sampling" and distinguish between
"probability sampling" and "non-probability sampling." [ 6
marks]
(b) Define the terms "convenience sampling" and "systematic
random sampling" and ex-plain how EACH might be used to select
respondents. [2marks]
(c) Indicate which of the two types of sampling in (b) above
management should use andjustify your answer. [ 7 markslTotal25
marks
02233020/CAPE 2006
4.
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-4
SECTION C
MODULE 3
SMALL BUSINESS MANAGEMENT
Answer ONE question from this section.
5. .., Eric has been a well-respected chef for some years and
now wishes to set up a small business.
.,h\(,,rl
_,.'n (a) Identify FIVE factors that Eric Tll-s-t Eqllrider if
his business is to succeed.dfr''r/","\ 1 r lsmarksl
' ^y'' ,
' , -. -? f,lo:,'''ic tsl#Le
-
( ril' ; (b) Discuss the$pact of daCrr of the factors identified
in 5 (a) above on the success of.]./ *r i. Eric's business. o ., r
r /,- r-.r , -- n*.*J t20 marksl
Lo .i' \.. ]' {r-' \''
-
!.
-' r+ Total 25 marks
)[' i c': i,/('
6. , '(q)r, Discuss TWO main contributions of small businesses
to the development of your,d country's economy. [0marks]/
(b) (i) Discuss THREE difficulties faced by small business in
the Caribbean.(ii) Suggest ONE way in which EACH difficulty
identified in 6 (b) (i) above may
be overcome. [15 marks]
Total25 marks
END OF TEST
t
ilil]il||lilililll836255
o2233020tCAPE 2006
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ri
-2-
SECTION A
MODULE 1: PRODUCTION AND OPERATIONS MANAGEMENT
Answer ONE question from this section.
1. Everyday Electronics is a Caribbean company involved in
manufacturing consumer products.It is in the process of designing a
new blender.Define EACH of the following dimensions of quality and
explain how each dimension willinfluence the design and prodrction
of the blender:
(a) Features(b) Reliability(c) Durability(d) Serviceability
Tot^125 marks
2. Blackbird Entertainment Company is planning an event to
expose its artistes to the generalpublic. It has identified the
following main activities.
Activity Description PrecedingActivities
Duration(Weeks)
A Sign up artistes None 3B Book venue A IC Obtain sponsorship A
4D Design advertising materials A 5E Print Tickets C,D 4F Sell
Tickets B 3G Place advertising D 4H Pay for venue E 2I Hold event
G,H I
(a)
o)(c)
Draw a network diagram to represent the above activities
inclusive of their duration. ,
[1] marks] |Calculate the duration of the project. t 4
markslDefine the term "critical path" and identify the critical
path of the project.
[ 4 marks]
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F(d)
-3-
Define the following terms, in relation to network diagrams:
(i) Early StartTime(ii) Late Finish Time(iii) Total float
[ 2 marks][ 2 marks][ 2 marks]
Total25 marks
3. (a)
SECTION B
MODULE 2: FT,]NDAMENTALS OF MARKETING
Answer ONE question from this section.
Define EACH of the following marketing concepts
(D Branding(ii) Pricing(iii) Distribution channels(iv)
Advertising
t 8 markslOne River Foods is a Caribbean company operating in
Sunset Isle which markets avariety of food products under the One
River brand name. The company plans tointroduce a new line of
cornflakes to the island in three months.
(i) For EACH concept defined in (a) above, describe TWO
strategies which thecompany may consider when planning this aspect
of its marketing.
(ii) For EACH concept, indicate which strategy is better, giving
ONE reason foryour choice.
U.7 marksl
Total25 marks
o)
02233020|CAPE 2007GO ON TO TI{E NEXT PAGE
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TI
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4. Advanced Marketing Research Inc. has been asked to conduct a
research project for SunshineBakeries, a small Caribbean
manufacturer of cakes and pastries. The company wants toinvestigate
buyer motivations and other purchase behaviour such as frequency of
purchase forits type of products. The company must choose between
the following pairs of options for theresearch project.
(i) Primary versus secondary sources of data(ii)
Probabilityversusnon-probabilitysampling(iii) Focus groups versus
surveys
(a) Differentiate between the above pairs of options outlining
one advantage and one dis-advantage of one option over the
other.
(b) For EACH pair of options, indicate which one the company
should choose, giving ONEreason for your choice.
Total25 marks
SECTION C
MODULE 3: SMALL BUSINESS MANAGEMENT
Answer ONE question from this section.
CASE STIJDYMAKING IT "DANCE.HALL''
Sandy and Shelley are contemplating the formation of a
partnership called S & S Enterprise,specializing in "Dance-Hall
Outfits" since they have a wealth of experience in that area.
Theyhad recently moved into a small district, called "Peaceville",
comprising mainly of middle-agedwomen who spent most of their time
going to church, the supermarket and back home. Thesmall number of
young adults would spend most of their time at work and getting
involved insocial activities in the church. Most business places
are usually closed by 8 p.m. except for afew night pubs which are
usually frequented by older men. This district can almost
bedescribed as a retirement community. Both girls are thinking of
setting up their business in asmall shoppingplaza in the communify
and they are quite excited since their business will bethe first of
its kind and they will have no real competitors.
Sandy and Shelley have no starting capital, but they are
thinking of getting a business loan fromthe local bank, which is
the only one in the community.
(a) Explain what is meant by a 'partnership'. [ 2 marks](b)
Suggest to Sandy and Shelley, FTVE main provisions that they could
include in theirpartnershipdeed. [ Smarks]
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(c)
(d)
(e)
(o
-5-
outline Two disadvantages of forming a partnership business. [ 4
marks]Identify THREE major challenges that Sandy and shelley may
face as youngentrepreneurs. [ 3 marks]Outline ONE way in which
market demand would affect S & S Enterprise.
[ 2 marks]be important for Sandy and Shelley totheir new
business venture.
[ 9 marks]Discuss THREE main reasons why it wouldconduct market
research before embarking on
6.
Total25 marks
(a) Mary Cook-Well, the owner of a small restaurant, is unsure
of the reasons for updatingher business plan on a yearly basis.
Outline THREE possible advantages to be gainedby Mary from engaging
in such a practice. [ 6marks]Mr. Want-Money is a very opinionated
middle-aged man who loves to make decisionson his own. He is
thinking of setting up an auto-parts business. He has no
realexperience as to how to set up or manage such a business. You
are to advise him on thefollowing:
(i) THREE important factors he must consider when deciding on a
location for hisbusiness [ 6 marks](ii) ONE main reason he should
start a sole trader business rather than aPartnership [ 3
marks](iii) THREE factors he must consider when sourcing finance
for his business
[ 6marks](iv) TWO advantages that he may experience if he
decides to buy an existing auto-
parts business instead of starting a new one [ 4 marks]Total25
marks
(b)
END OF TEST
02233020/CAPE2007
-
I.,
SECTION A
MODULE 1: PRODUCTIONAND OPERATIONS MANAGEMENT
Answer ONE question from this section.
1. 'Where to produce' is a major production decision. The Misty
Blue Beverage Company makesa range of carbonated and mild alcoholic
drinks in a wide variety of flavours from local fruits.Management
is considering setting up a plant in one of four Caribbean
territories.
Explain how EACH of the following factors can help the company
to decide in which tenitoryto locate.
(a) Market demandO) Intensity of competition(c) Government
regulations(d) Availability of raw materials(e) Supply of labour
[25 marksl
Total25 marks
(a) Discuss TWO ways in which productivity is important to EACH
of the following:2.
(b)
(i) Businesses(ii) Unions(iii) GovernmentOutline TWO strategies
that can be used to improve productivity.
[19 marks]
[ 6 marks]Total25 marks
02233020|CAPE 2008GO ON TO TI{E NEXT PAGE
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\-3-
SECTION B
MODULE 2: FUNDAMENTALS OF MARKETING
Answer ONE question from this section.
3. Ethnic Garb is a Caribbean company which operates in Coco
Isle and markets a variety ofcasual clothing. Currently the line of
clothing is not branded. The company plans to introduceits line of
clothing to one of the larger Caribbean islands in three
months.
(a) Define EACH of the following marketing strategies:(i)
Branding(ii) Penetration pricing(iii) Direct distribution
channel(iv) Advertising [Smarks]
(b) Outline ONE advantage and ONE disadvantage of using EACH of
the marketingstrategies in (a) above to successfully penetrate the
new market. [17 marks]
Total25 marks
4. Axiom Marketing Research Inc. has been asked to conduct a
research project for GiftsUnlimited, a small Caribbean manufacturer
of ornaments and gifts. The company wants toinvestigate buyer
motivations, frequency of purchase and amount purchased per
occasion.
(a) (i) Outline the main difference between primary data and
secondary data, givingONE advantage of EACH type of data.
(ii) Outline the main difference between probability sampling
and non-probabilitysampling, giving ONE advantage of EACH type of
sampling. t16 marksl
(b) Using * upprop.iate criterion, recolnmend and justify the
strategy from EACH pairat (a) (i) and (a) (ii) that will help the
company to achieve the objectives of the researchproject. [ 9
marks]
Total25 marks
o2233020tCAPE 2008GO ON TO TI{E NEXT PAGE
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7-4
5.
SECTION C
MODULE 3: SMALL BUSINESS MANAGEMENT
Answer ONE question from this section.
Miss Pretty is thinking of starting a small business
specializing in female clothing. Herbrother, a business consultant,
has suggested that she should do market research beforeinvesting in
such a business.
(a)
(b)
Discuss FOUR ways in which market research is advantageous to a
small business.[L6 marks]
Outline THREE problems Miss Pretty may encounter in conducting
market researchfor her proposed business. t 9 marksl
Total25 marks
Outline FOUR challenges that a young entrepreneur may face in
the 'start-up' phaseof a small business and suggest ONE solution to
EACH challenge outlined.
[16 marks]
Outline THREE factors that a young entrepreneur needs to
consider when decidingwhat form of organization his or her business
should take. [ 9 marks]
Total25 marks
END OF TEST
(a)
(b)
6.
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II
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I
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rc-l6com
11
o2233020tCAPE 2008
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7l.-'I
t"
1.
.2-SECTION AMODULE 1 .
PRODUCTION AND OPERATIONS MANAGEMENTAnswer ONE question from
this section.
Intensified global competition has been a major factor behind
management's sharpened interestin quality management and
control.(a) (D Explain what is meant by 'Total Quality
Management'.
(ii) Discuss ONE implication of Total Quality
Managementfollowing:. Employees' Product/process design:
s#:il:J.
(b) Outline THREE circumstances under which Total Qualitymay
fail to achieve overall organizational objectives.
[ 3 marks]for EACH of the., aA-r
[16marks]Management programmes
[ 6 marks]
Overtime
Lai4/^
(a)2.
(b)
Total25 marks
Forecasting serves as the basis for planning.
Outline THREE advantages and THREE disadva4tages of the Delphi
method as aforecasting technique. @ "4) tl2markslMr. Opportunity is
thinking of investing in a garment factory.
The decision tree below shows the alternatives available to Mr.
Opportunity if hedecides to build a large factory or a small
factory.
1pJJ94MO
D9
ufldI,:rSe\
(6)
m*oo94&biDD-".n_nd(O\
s70
(i)
(ii)
Using the decision tree, sequentiulfy *ily=+bg d_qglg{t Mr.
Opportunity needsto make at EACH step. - 4:'
-
[ I marks]' /'*'
Calculate thqhifhest expected value for building=:___,a) a small
factolf ----'..
b) alargefactory. [4marks]Determine which alternative Mr.
Opportunity must choose if he is to maximizeexpected monetary
returns. I L mark]
Total25 marksGO ON TO THE NEXT PAGE
(iii)
o2233020lCAPE 2009
-
3.
-3-
SECTION B
MODULE 2
FUNDAMENTALS OF MARKETING
Answer ONE question from this section.
(a) Differentiate between 'informative advertising'and
'persuasive advertising', stating ONEsituation in which EACH would
be MOST effective. [ 8 marks]One major advertising decision is
determining which media to use as a means of trans-mitting the
message.
Discuss FOUR factors that may influence the choice of media.
[l.7markslTotal25 marks
(b)
4. (a)
(b)
(c)
Differentiate between'direct distribution channel'and'indirect
distribution channel',giving ONE example of EACH. [ 6 markslOutline
TWO factors that may influence the choice of a distribution
channel.
[ 6 marks.lDiscuss THREE benefits to a manufacturer of using an
intermediary channel.
[13marks]Total25 marks
o2233020tCAPE 2009GO ON TO THE NEXT PAGE
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-4-
SECTION C
MODULE 3
SMALL BUSINESS MANAGEMENT
Answer ONE question from this section.
The following scenario relates to Questions 5 and 6.
Ruth Williams, an entrepreneur, has started a sole trader
business specializing in janitorial services.She started the
business with her own savings and she did not have a formal
business plan. As herbusiness expands, and according to the needs
of her situation, she employs more persons to work forher. She does
her own hiring, accounting and marketing. Her business is barely
paying for itself.
5. (a) Outline THREE advantages and THREE disadvantages that
Ruth Williams experiences(b)
as a sole trader. [12 marks]Discuss THREE characteristics that
Ruth should possess in order to be a successfulentrepreneur. [13
marks]
Total25 marks
Define the term 'business plan'. t 3 markslState THREE reasons
why Ruth should have a business plan. [ 6 marks]Discuss FOUR key
elements that Ruth should include in her business plan.
lL6marksl
Total25 marks
END OF TEST
6. (a)(b)
(c)
02233020/CAPE 2009