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Student Number
Business Studies General Instructions
• Reading time – 5 minutes
• Working time – 3 hours
• Write using black or blue pen
• Draw diagrams using pencil
• Use the multiple-choice answer sheet
provided
• Write your Student Number at the top of
this page and the multiple-choice answer
sheet
Total marks – 100
Section I Pages 2-8
20 marks
Part A – 20 marks
• Attempt Questions 1-20
• Allow about 35 minutes for this part
Section II Page 9-17
40 marks
• Attempt Questions 21-24
• Allow about 1 hour and 15 minutes for this
part
Section III Page 18
20 marks
• Attempt Question 25
• Allow about 35 minutes for this section
Section IV Page 19
20 marks
• Attempt Questions 26 or 27
• Allow about 35 minutes for this section
2017 TRIAL HIGHER SCHOOL CERTIFICATE
EXAMINATION
Directions to School or College To ensure integrity and security, examination papers must NOT be removed from the examination room. Examination papers may not be returned to students till August 21st 2017. These examination papers are supplied Copyright Free, as such the purchaser may
photocopy and/or make changes for educational purposes within the confines of the School or college.
All care has been taken to ensure that this examination paper is error free and that it follows the style, format and material content of the High School Certificate Examination in accordance with the Board of Studies requirements. No guarantee or warranty is made or
implied that this examination paper mirrors in every respect the actual HSC Examination paper for this course.
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Section I
20 marks
Attempt Questions 1-20
Allow about 35 minutes for this section
Use the multiple-choice answer sheet provided for Questions 1-20.
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1. Which of the following is an example of a non - current asset?
(A) Net Profit
(B) Goodwill
(C) Accounts receivable
(D) Mortgage
2. Moo Moo’s has changed the packaging of their milk bottles to maintain freshness of their
products longer and to make them easier for customers to handle. The marketing strategy
that Moo Moo’s has changed is:
(A) Positioning
(B) Physical Evidence
(C) Product
(D) Promotion
3. A smart phone manufacturer has found that raw material prices are rising and dispute
levels have fallen in their factories.
How would these factors be classified in a SWOT analysis?
(A) Weaknesses and strengths respectively
(B) Weaknesses and opportunities respectively
(C) Threats and strengths respectively
(D) Threats and opportunities respectively
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4. What is a temporary solution to a cash flow crisis for a business?
(A) Lowering the business’ bank overdraft
(B) Organising a forward contract
(C) A new issue of shares
(D) Factoring
5. Which of the following is used in transformation processes?
(A) Inputs
(B) Sequencing and scheduling
(C) Customer service
(D) Warranties
6. The table below shows the price cafés in a local shopping centre charges charge for
medium sized milkshakes.
Café A Café B Café C Café D
$3.00 $3.50 $3.50 $4.00
Which pricing strategy applies to the above cafes?
(A) Café A is using penetration pricing and Café D is using price skimming
(B) Café A is using price skimming and Café D is using penetration pricing
(C) Café B and Café C are using competition based pricing
(D) All four cafes are using market based pricing
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7. Below is selected financial information for a business.
Current Assets $25 000
Non - Current Liabilities $20 000
Owner’s Equity $65 000
Non - Current Assets $75 000
The Current/Working Capital Ratio for this business is:
(A) 0.6:1
(B) 1.2:1
(C) 1.7:1
(D) 2:1
8. An appropriate strategy that could be used to improve the financial performance of this
business would be:
(A) Liquidate all current assets and increase investment in non - current assets
(B) Sell some non - current assets to increase liquidity levels
(C) The owner should increase drawings
(D) Adopt a more relaxed credit policy
9. The advantage of customising products according to consumer tastes is:
(A) Customisation enables mass production to be carried out
(B) Supply chain management is less complex
(C) Businesses can achieve higher levels of customer satisfaction
(D) Businesses can achieve economies of scale
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10. Tina conducts Yoga classes for pre – school children aged 3 – 5 years.
What market segment does Tina’s businesses produce goods and services for?
(A) Intermediate market
(B) Segmented market
(C) Mass market
(D) Niche market
11. Nina wishes to buy the local convenience store. The financial document that would
provide Nina with the best indicator of the convenience stores’ profitability in relation to
its turnover would be:
(A) The balance sheet
(B) The cash flow statement
(C) The income statement
(D) The accounting equation
12. A national department store has recently signed an agreement with Posh Perfumes to be
the only stockist of their range of perfumes.
The channel choice being used by Posh Perfumes is:
(A) Market segmentation
(B) Producer → Retailer → Customer
(C) Selective distribution
(D) Exclusive distribution
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13. Supertyres Pty Ltd needs to raise finance quickly to fund the expansion of their car tyre
chain throughout Australia.
The type of equity finance most appropriate for Supertyres Pty Ltd to use would be:
(A) An overdraft obtained from their local bank
(B) A new share issue on the Australian Securities Exchange
(C) Drawings made by the owners of Supertyres Pty Ltd
(D) Retained profits from Supertyres Pty Ltd
14. A marketing manager of a soft drink company conducts a SWOT analysis to determine
which stage of the product lifecycle his various beverages are currently in.
Which of the following describes the stage of the marketing process the marketing
manager is working on?
(A) Situational analysis
(B) Market research
(C) Developing marketing strategies
(D) Monitoring and controlling the marketing plan
15. Which organisation is responsible for reducing fraud and unfair practices in financial
markets and financial products?
(A) Department of Fair Trading
(B) Australian Securities Exchange
(C) Australian Securities and Investment Commission
(D) Australian Competition and Consumer Commission
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16. Below is financial information for a business ABC.
Net loss $60 000
Capital $95 000
Drawings $25 000
The value of Owner’s Equity for ABC is:
(A) $10 000
(B) $15 000
(C) $130 000
(D) $170 000
17. A large supermarket chain negotiates checkout operators’ wages and working conditions
collectively with the assistance of their employees’ trade union.
The type of employment contract resulting from these negotiations would be?
(A) Minimum wages and working conditions
(B) A Modern Award
(C) An enterprise agreement
(D) An individual contract
18. Which of the following government laws ensures that all Australians are able to request
flexible working arrangements?
(A) Work Health and Safety Act 2011
(B) Fair Work Act 2009
(C) Sex Discrimination Act 1984
(D) Equal Employment Opportunity Act 1987
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19. Which of the following indicates poor human resource management?
(A) Greater staff retention
(B) Decreased use of grievance procedures
(C) Higher staff turnover
(D) Less workplace accidents
20. Below is cash flow information for a business.
Dividends received $5 000
Opening balance at 1 August $60 000
Wages paid $25 000
Receipts from debtors $5 000
Payments to creditors $30 000
Purchases of stock $25 000
Cash sales $30 000
The closing balance at the end of August is:
(A) $15 000
(B) $20 000
(C) $65 000
(D) $70 000
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Section II
40 marks
Attempt Questions 21-24
Allow about 1 hour and 15 minutes for this part
Answer the questions in the spaces provided. These spaces provide guidance for the expected
length of response.
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Question 21 (11 Marks) Marks
Financial information for Wizard Electricals Pty Ltd
30 June 2016
Sales
Cost Of Goods Sold (COGS)
Gross Profit
$140 000
$80 000
Operating Expenses
Wages
Interest
Insurance
Rent
Advertising
15 000
10 000
2 000
12 000
3 000
Net Profit
Additional financial information:
Accounts Receivables for 2016 = $25 000
Industry Average Net Profit Ratio for 2016 = 20% or 0.2:1
Question 21 continues on page 10
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Question 21 continued Marks
(A) What is the name the financial statement shown for Wizard Electronics? 1
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(B) Describe ONE ethical issue related to financial reports. 2
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(C) Calculate and comment on the Net Profit Ratio for Wizard Electronics. 2
Round off your answer to 2 decimal places.
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(D) Calculate and comment on the Accounts Receivable Turnover Ratio for 2
Wizard Electronics. Round off your answer to 2 decimal places.
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Question 21 continues on page 11
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Question 21 continued Marks
(E) Recommend ONE revenue and ONE cost control strategy Wizard Electronics 4
could use to improve their profitability.
Revenue control strategy:
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Cost control strategy:
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End of Question 21
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Question 22 (10 Marks) Marks
(a) Define National Employment Standards (NES). 1
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(b) Explain the advantages of using an Enterprise Agreement as an employment 3
contract rather than a Modern Award.
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Question 22 continues on page 13
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Question 22 continued Marks
(c) With reference to a business you have studied, analyse the causes of a 6
workplace dispute and the strategies used to resolve it.
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End of Question 22
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Question 23 (10 Marks) Marks
Oz Health Foods is a producer of a range of quality high protein, low fat energy bars. Oz Health
Food’s sales in Australia have stabilised over the past few years so the business is planning to
launch its products overseas.
(a) State TWO marketing objectives for Oz Health Foods. 2
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(b) Explain TWO factors influencing customer choice of Oz Health Foods’ energy 4
bars.
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Question 23 continues on page 15
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Question 23 continued Marks
(c) Recommend TWO global marketing strategies Oz Health Foods could use to 4
market their products overseas.
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End of Question 23
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Question 24 (9 Marks) Marks
Hipster Clothing is a manufacturer of clothing for youths. It has a factory located in NSW.
(a) Distinguish between transformed resources and transforming resources. 3
Provide an example of each for Hipster Clothing.
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(b) Describe an appropriate plant layout for Hipster Clothing’s factory. 2
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Question 24 continues on page 17
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Question 24 continued Marks
(c) Choose TWO performance objectives and explain their importance to 4
Hipster Clothing.
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End of Question 24
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Section III
20 marks
Attempt Question 25
Allow about 35 minutes for this section
Answer the question in a SEPARATE writing booklet. Extra writing booklets are available.
In your answer you will be assessed on how well you:
• demonstrate knowledge and understanding relevant to the question
• apply the hypothetical business situation
• communicate using relevant terminology and concepts
• present a sustained, logical and cohesive response in the form of a business report
Question 25 (20 marks)
You have been employed as a consultant to prepare a report for management of Speedyfood Ltd.
In your report:
• Explain the balance between cost and quality in Speedyfood Ltd operations strategy.
• Analyse TWO influences on the human resources function of Speedyfood Ltd.
• Recommend THREE human resources strategies Speedyfood Ltd could use to address
their issues.
Please turn over
Speedyfood Ltd is a fast food chain of restaurants employing 8000 people in
Australia. Speedyfood Ltd is currently facing intense competition in the fast food
industry and has experienced difficulties retaining even its loyal customers.
Management at Speedyfood restaurants have decided to introduce longer shifts in
their restaurants and reduce the size of their workforce to cut costs. This decision
has caused dissatisfaction among employees and their trade union resulting in
industrial action. The union argues that Speedyfood restaurants are already
understaffed and employees overworked. This is seen by higher high levels of staff
turnover, an increase in workplace accidents and more customer complaints
concerning the poor quality of meals
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Section IV
20 marks
Attempt either Question 26 or 27
Allow about 35 minutes for this section
Answer the questions in a SEPARATE writing booklet. Extra writing booklets are available.
_____________________________________________________________________
In your answer you will be assessed on how well you:
• demonstrate knowledge and understanding relevant to the question
• use relevant business case study/studies and contemporary business issues
• communicate using relevant business terminology and concepts
• present a sustained, logical and cohesive response
Question 26 (20 marks)
Evaluate the marketing strategies for a good or service.
OR
Question 27 (20 marks)
Evaluate the financial performance of a business and recommend appropriate alternative
strategies to improve business performance.
End of Paper
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Student Number
Section I: Answer Sheet
20 marks
Attempt Questions 1-20
Allow about 35 minutes for this section
Select the alternative A, B, C, or D that best answers the question and circle your answer.
Question
1 A B C D
2 A B C D
3 A B C D
4 A B C D
5 A B C D
6 A B C D
7 A B C D
8 A B C D
9 A B C D
10 A B C D
11 A B C D
12 A B C D
13 A B C D
14 A B C D
15 A B C D
16 A B C D
17 A B C D
18 A B C D
19 A B C D
20 A B C D
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Section I - Criteria/Answers
20 marks
Attempt Questions 1-20
Allow about 35 minutes for this section
Outcome Question
H9 1 A B C D
H5 2 A B C D
H8 3 A B C D
H2 4 A B C D
H4 5 A B C D
H5 6 A B C D
H10 7 A B C D
H5 8 A B C D
H2 9 A B C D
H4 10 A B C D
H9 11 A B C D
H5 12 A B C D
H2 13 A B C D
H2 14 A B C D
H2 15 A B C D
H10 16 A B C D
H5 17 A B C D
H2 18 A B C D
H6 19 A B C D
H10 20 A B C D
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Section II: Criteria/Answers
Question 21 (10 marks)
(a) What is the name the financial statement shown for Wizard Electronics?
Outcome: H9.
Criteria Marks
Correctly states the name the financial statement shown for Gifts Galore Pty Ltd. 1
Answer:
• Income Statement
(b) Describe ONE ethical issue related to financial reports.
Outcome: H7.
Criteria Marks
Provide characteristics and features of ONE ethical issue related to financial
reports.
2
Sketches in general terms ONE ethical issue related to financial reports. 1
Answer:
• Audited Accounts
• Inappropriate Cut - Off Periods
• Misuse of Funds
(c) Calculate and comment on the Net Profit Ratio for Wizard Electronics. Round off your
answer to 2 decimal places.
Outcome: H10.
Criteria Marks
Correctly calculates and comments on the Net Profit Ratio for Wizard Electronics. 2
Correctly calculates or sketches in general terms the Net Profit Ratio
for Wizard Electronics.
1
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Answer:
• Net Profit Ratio/Sales = $18 000/$140 000 = 0.13:1 or 12.86%.
(d) Calculate and comment on the Accounts Receivable Turnover Ratio for
Wizard Electronics. Round off your answer to 2 decimal places.
Outcome: H10.
Criteria Marks
Correctly calculates and comments on the Accounts Receivable Turnover Ratio for
Wizard Electronics.
2
Correctly calculates Accounts Receivable Turnover Ratio or sketches in general
terms the Accounts Receivable Turnover for Wizard Electronics.
1
Answer:
• Accounts Receivable (AR) Turnover Ratio: Sales/AR = $140 000/$25 000 = 5.6 = 365/5.6
= 65 days or 65.18 days.
(e) Recommend ONE revenue and ONE cost control strategy Wizard Electronics could use to
improve their profitability.
Outcome: H5.
Criteria Marks
Provides a reason in favour of ONE revenue and ONE cost control strategy
Wizard Electronics could use to improve their profitability.
3 - 4
Provides characteristics and features of ONE revenue and ONE cost control
strategy Wizard Electronics could use to improve their profitability.
1 - 2
Answer:
• Revenue control strategy: setting marketing objectives, expanding the product mix, changing pricing
strategy.
• Cost control strategy: fixed and variable, cost centres, expense minimization
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Question 22 (10 marks)
(a) Define National Employment Standards (NES). 1
Outcome: H9.
Criteria Marks
Correctly defines National Employment Standards (NES). 1
Answer:
• National Employment Standards (NES): the minimum working conditions provided to all
Australian workers eg. Maximum hours of work, leave entitlements etc.
(b) Explain the advantages of using an Enterprise Agreement as an employment contract
rather than a Modern Award.
Outcome: H2.
Criteria Marks
Comprehensively relates the cause and effect of using an Enterprise Agreement
as an employment contract rather than a Modern Award. 2 - 3
Gives characteristics and features of an Enterprise Agreement or a Modern Award. 1
Answer:
• Enterprise Agreement provides the employer with greater flexibility and the opportunity to
provide above Award wages and working conditions – this enables employers to attract and
retained more skilled staff.
• Employees and their union can be involved in the bargaining process therefore they are
more likely to be satisfied with the outcome of an Enterprise Agreement.
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(c) With reference to a business you have studied, analyse the causes of a workplace dispute and
the strategies used to resolve it.
Outcome: H2.
Criteria Marks
Using a business case study, clearly relates the causes and implications of a
workplace dispute.
5 – 6
May or may not use a case study to provide the characteristics and features
of the causes and implications of a workplace dispute.
3 - 4
Sketches in general terms a workplace dispute 1- 2
Answer:
• Causes of workplace disputes: wage demands, working conditions, changes to
managerial policy, political and social reasons (eg. Closure of the industry).
• Strategies: negotiation, mediation, conciliation and arbitration.
Question 23 (9 marks)
(a) State TWO marketing objectives for Oz Health Foods.
Outcome: H4.
Criteria Marks
Correctly states TWO marketing objectives for Oz Health Foods. 2
Correctly states ONE marketing objective for Oz Health Foods. 1
Answer:
• Increase market share
• Market expansion
• Increase sales
• Increased customer service
• Product extension
• Increase customer loyalty
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(b) Explain TWO factors influencing customer choice of Oz Health Foods’ energy bars.
Outcome: H2.
Comprehensively relates the cause and effect of TWO factors influencing
customer choice of Oz Health Foods energy bars. 3 - 4
Gives characteristics and features of TWO factors influencing customer choice
of Oz Health Foods energy bars. 1 - 2
Answer:
• Factors influencing customer choice – psychological (perception that their energy bars are
healthy and increase energy levels), sociocultural (increased demand for healthy products due
to social consciousness), economic (“luxury” good rather than a necessity so there will be
reduced demand for these bars in a recession as consumers tend to buy necessities),
government (GST levels placed on energy bars).
(c) Recommend TWO global marketing strategies Oz Health Foods could use to market their
products overseas.
Outcome: H5.
Criteria Marks
Provides reasons in favour of TWO global marketing strategies Oz Health Foods
could use to market their products overseas.
3 - 4
Provides characteristics and features of TWO global marketing strategies Oz Health
Foods could use to market their products overseas.
1 - 2
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Answer:
• Global marketing strategies:
– global branding (the use of a logo representing health benefits gained by consuming
energy bars)
– standardization (as the way the product is used is the same across markets and would
enable Oz Health Foods to achieve economies of scale in production)
– customization (could customize ingredients to overseas markets)
– global pricing (either standardize or customize according to market conditions)
– competitive positioning (superior image due to their energy bars being vegan and
organic)
Question 24 (9 marks)
(a) Distinguish between transformed resources and transforming resources. Provide an example of
each for Hipster Clothing.
Outcome: H9.
Makes a clear distinction between transformed resources and transforming
Resources and provides an example of each for Hipster Clothing. 2 - 3
Sketches in general terms transformed resources and transforming
resources. 1
Answer:
• Transformed resources: are those inputs that are changed or converted in the operations
process; they are transformed by the operations processes eg. Cotton, buttons, zippers,
labels, electricity used in factory.
• Transforming resources: act on the inputs to change them and are not used up in
operations eg. Machinery used to manufacture clothes, factory, labour used to design and
make jeans.
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(b) Describe an appropriate plant layout for Hipster Clothing’s factory.
Outcome: H4.
Criteria Marks
Provide characteristics and features of an appropriate plant layout for Hipster
Clothing’s factory.
2
Sketches in general terms an appropriate plant layout for Hipster Clothing’s factory. 1
Answer:
• Process layout: where machines and equipment are grouped together by the function (or
process) they perform. i.e. considering the best way to organise the workflow of the
business. The process layout is sometimes called functional layout eg. All cutting out of
fabric occurs in one area of the clothing factory and all labels attached to clothing in another
area.
• Product layout: where the equipment arrangement relates to the sequence of tasks
performed in manufacturing a product eg. Shirts manufactured in one part of the clothing
factory and pants manufactured in another.
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(c) Choose TWO performance objectives and explain their importance to Hipster Clothing.
Outcome: H5.
Criteria Marks
Comprehensively relates the cause and effect of TWO performance objectives to
Hipster Clothing. 3 - 4
Gives characteristics and features of TWO performance objectives for Hipster
Clothing. 1 - 2
Answer:
• Speed (shorten production times for clothing to lead times and production costs).
• Quality (use quality management to improve clothing quality – enables a higher price to
be charged and maximisation of profits).
• Dependability (clothing quality consistent with branding/image of Hipster Clothing).
• Flexibility (Hipster Clothing able to adjust clothing production levels due to seasonal
changes in demand eg. In winter produce more long pants whereas in summer produce
more shorts).
• Customisation (Hipster Clothing able to alter clothing designs to cater for youths in
different markets eg. Coastal and country areas).
• Cost (cost minimisation to maximise profits).
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Section III: Question 25 (20 marks)
• Explain the balance between cost and quality in Speedyfood Ltd operations strategy.
• Analyse TWO influences on the human resources function of Speedyfood Ltd.
• Recommend THREE human resources strategies Speedyfood Ltd could use to address
their issues.
Outcomes: H2, H5, H8, H9.
Criteria Marks
• Comprehensive explanation of the balance between cost and quality in Speedyfood Ltd
operations strategy.
• Clearly relates the implications of TWO influences on the human resources function of
Speedyfood Ltd.
• Provides reasons in favour of THREE human resources strategies Speedyfood Ltd
could use to address their issues.
• Makes effective use of the information provided, demonstrating extensive knowledge
and understanding relevant to the question.
• Presents a sustained, logical and cohesive response in the form of a business report.
17-20
• Explains the balance between cost and quality in Speedyfood Ltd operations strategy.
• Makes evident the relationship of TWO influences on the human resources function of
Speedyfood Ltd.
• Provides a reason in favour of THREE human resources strategies Speedyfood Ltd
could use to address their issues.
• Makes some use of the information provided, demonstrating knowledge and
understanding of the question.
• Presents a well-organised response in the form of a business report.
13-16
• Describes the balance between cost and quality in Speedyfood Ltd operations strategy.
• Provides characteristics and features of TWO influences on the human resources
function of Speedyfood Ltd
• Recommends THREE human resources strategies for Speedyfood Ltd could use to
address their issues.
• Includes features of a business report and uses some business terminology and
concepts.
9-12
• May or may not identify the balance between cost and quality in Speedyfood Ltd
operations strategy.
• Sketches in general terms TWO influences on the human resources function of
Speedyfood Ltd.
• Recommends some human resources strategies for Speedyfood Ltd.
• May include some features of a business report and uses some basic business
terminology.
5-8
• Uses basic business terminology.
• May make reference to balance between cost and quality in Speedyfood Ltd operations
strategy, influences on the human resources functions or human resources strategies for
Speedyfood Ltd.
1-4
Answer:
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Cost/Quality balance
• Cost reductions (fewer staff working in the restaurants) enable profit maximisation to be
achieved, but this may compromise product quality further especially if restaurants are
already short staffed and accidents have increased. Speedyfood is a fast food chain operating
in a competitive industry therefore they need to minimise costs to remain competitive. Lower
costs will free up money to be used for quality management.
• To achieve quality, quality management (TQM, assurance, control) may be expensive to
introduce in the short term (due to changing procedures, needing to retrain staff) however, this
may result in reduced waste, less accidents, less customer complaints and cost leadership
being achieved.
Key influences
• stakeholders – employers, employees, employer associations, unions, government
organisations, society
• legal – the current legal framework, the employment contract – common law (rights and
obligations of employers and employees), minimum employment standards, minimum wage
rates, awards, enterprise agreements, other employment contracts
• occupational health and safety and workers compensation
• antidiscrimination and equal employment opportunity
• economic
• technological
• social – changing work patterns, living standards
• ethics and corporate social responsibility
Strategies in human resource management
• leadership style
• job design – general or specific tasks
• recruitment – internal or external, general or specific skills
• training and development – current or future skills
• performance management – developmental or administrative
• rewards – monetary and non-monetary, individual or group, performance pay
• global – costs, skills, supply
• workplace disputes
– resolution – negotiation, mediation, grievance procedures, involvement of courts and
tribunals
Section IV: Question 26 (20 marks)
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Evaluate the marketing strategies for a good or service.
Outcomes: H2, H5, H6, H7, H9.
Criteria Marks
• Presents a sustained, logical and cohesive response and communicates
clearly using relevant business terminology and concepts.
• Clearly makes a judgement; based on criteria and determines the value of
the marketing strategies for a good or service.
• Applies relevant case study/studies and contemporary business issues.
17-20
• Presents a logical and cohesive response using relevant terminology and
concepts.
• Makes evident the implications of the marketing strategies for a good or
service.
• Uses relevant case study/studies and contemporary business issues.
13-16
• Communicates using business terminology and concepts.
• Provides characteristics and features of the marketing strategies for a
good or service.
• Presents a response with some structure.
9-12
• Communicates using some business terminology and concepts.
• Makes some reference to the marketing strategies for a good or service.
• Presents a response with limited structure.
5-8
• Uses basic knowledge and terminology.
• May make reference to the marketing strategies for a good or service.
1-4
Answer:
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Marketing strategies
• market segmentation, product/service differentiation and positioning
• products – goods and/or services
– branding
– packaging
• price including pricing methods – cost, market, competition-based
– pricing strategies – skimming, penetration, loss leaders, price points
– price and quality interaction
• promotion
– elements of the promotion mix – advertising, personal selling and relationship marketing,
sales promotions, publicity and public relations
– the communication process – opinion leaders, word of mouth
• place/distribution
– distribution channels
– channel choice – intensive, selective, exclusive
– physical distribution issues – transport, warehousing, inventory
• people, processes and physical evidence
• e-marketing
• global marketing
– global branding
– standardisation
– customisation
– global pricing
– competitive positioning
Section IV: Question 27 (20 marks)
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34
Evaluate the financial performance of a business and recommend appropriate alternative
strategies to improve business performance.
Outcomes: H2, H5, H6, H7, H9.
Criteria Marks
• Presents a sustained, logical and cohesive response and communicates clearly
using relevant business terminology and concepts.
• Clearly makes a judgement; based on criteria and determines the value of the of
financial management strategies used to improve the financial performance of a
business and recommends appropriate alternative strategies to improve business
performance.
• Applies relevant case study/studies and contemporary business issues.
17-20
• Presents a logical and cohesive response using relevant terminology and
concepts.
• Makes evident the implications of financial management strategies used to
improve the financial performance of a business and recommends appropriate
alternative strategies to improve business performance.
• Uses relevant case study/studies and contemporary business issues.
13-16
• Communicates using business terminology and concepts.
• Provides characteristics and features of financial management strategies used to
improve the financial performance of a business and may or may not recommend
appropriate alternative strategies to improve business performance.
• Presents a response with some structure.
9-12
• Communicates using some business terminology and concepts.
• Makes some reference to financial management strategies used to improve the
financial performance of a business or recommends appropriate alternative
strategies to improve business performance.
• Presents a response with limited structure.
5-8
• Uses basic knowledge and terminology.
• May make reference to financial management strategies used to improve the
financial performance of a business or recommend strategies to improve business
performance.
1-4
Answer:
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Role of financial management
• strategic role of financial management
• objectives of financial management
– profitability, growth, efficiency, liquidity, solvency
– short-term and long-term
Financial management strategies
• cash flow management
– cash flow statements
– distribution of payments, discounts for early payment, factoring
• working capital management
– control of current assets – cash, receivables, inventories
– control of current liabilities – payables, loans, overdrafts
– strategies – leasing, sale and lease back
• profitability management
– cost controls – fixed and variable, cost centres, expense minimisation
– revenue controls – marketing objectives
• global financial management
– exchange rates
– interest rates
– methods of international payment – payment in advance, letter of credit, clean payment,
bill of exchange
– hedging
– derivatives