HIGHER BUSINESS MANAGEMENT

PAST PAPER QUESTION BOOKLETHigher Business Management Past Paper Questions2

BUSINESS IN CONTEMPORARY SOCIETY

Types of organisation

1Explain advantages and disadvantages of becoming a public limited company.5

2Explain 3 reasons why an organisation may move from being a sole trader to a private limited company.3

3Many companies are now classed as multinationals. Explain the advantages and disadvantages of operating as a multinational.5

4Describe the main characteristics of a multi-national corporation.4

5*Distinguish between a sole trader and a partnership.3

Stakeholders

1Describe the different interests 5 stakeholders may have in an organisation.5

2*Explain the influences which stakeholders can have on an organisation.5

Objectives

1Compare the objectives of a private sector organisation with those of a public sector organisation.4

2Describe the possible objectives of a private limited company.4

3Explain internal factors which could be taken into account prior to an organisation setting strategic objectives. 4

4Explain the reasons why some organisations produce a mission statement.3

Role of enterprise

1*Discuss the implications of becoming part of a franchise.5

2*Describe the role of an entrepreneur.3

3*Describe the advantages and disadvantages of being a franchisor4

Sources of finance and assistance

1Describe 4 different sources of long term finance available to a private limited company. 4

2Other than funds, describe the types of assistance a Local Enterprise Company could provide for an organisation.4

3Describe and justify 3 sources of finance available to a partnership. (A different justification should be used each time.)6

4Describe possible sources of finance for a plc looking to expand its activities.5

Growth

1Describe possible methods of growth for a public limited company.5

2Explain how different methods of growth can lead to increased sales or profits.5

External factors

1Explain the effects that 3 political factors could have on an organisation. (A different effect should be explained each time.)3

2Describe 4 external factors (other than political) that could have an impact on an organisation.4

3Identify and explain 3 economic factors that can affect the profitability of a business. 6

4Other than legislation explain the effect that external factors can have on an organisation.6

5Explain the impact that recent trends in retailing have had on organisations.4

ICT

Sources and Types of information

1Distinguish between the following:(a) Primary information and secondary information(b) Qualitative information and quantitative information.4

2Describe and justify the use of 4 types of information. (A different justification should be used each time.)8

3Describe the benefits of different types of information.4

Value of information

1Describe the main characteristics of high quality information.5

2*Discuss the reliability and value of information found using the Internet. 4

ICT in business

1Discuss the effects of ICT on an organisation.5

2Explain the benefits to an organisation of introducing ICT.5

3Explain the benefits of using Information Communications Technology for a multinational organisation.5

4ICT is used to help head office communicate effectively with branches in remote areas of the country. Explain how modern technology can be used to communicate effectively within an organisation.6

5Distinguish between a wide area network and a local area network.2

6Describe the main features of the Data Protection Act 1998.5

DECISION MAKING

Decisions

1Explain the role of a manager in effective decision making.5

2A manager decides to grant a workers request to have a weeks holiday. Identify and justify this type of decision.2

3Distinguish between a tactical decision and an operational decision.3

4Describe 3tactical decisions that could lead to growth.3

5Distinguish between a strategic decision and a tactical decision. 3

6Justify why strategic decisions are made by senior managers.3

7Describe the 3 main types of decision that an organisation could make.3

8Describe 2 types of decisions and give an example of each.4

9Explain internal constraints that make decision making difficult.4

10Explain internal problems that can exist when managers try to make effective decisions.5

11Describe the factors that would result in a quality decision being made.4

Decision Making Model and SWOT

1Explain the purpose of a SWOT analysis.4

2Discuss the advantages and disadvantages of using a structured decision making model.7

3Explain the advantages to an organisation of using a structured decision making model. 5

4Explain the advantages and disadvantages of using a structured decision making model.5

5Describe the uses of ICT in decision making.6

INTERNAL ORGANISATIONS

Grouping of activities

1Describe the advantages and disadvantages of functional grouping.5

2Compare the use of functional grouping with product grouping. 5

3Discuss the advantages and disadvantages of customer grouping.4

4*Discuss the advantages and disadvantages of place/territory grouping.4

5* Discuss the advantages and disadvantages of technology grouping. 4

Organisational structure

1Describe the main characteristics of an entrepreneurial structure.3

2Organisations often use an entrepreneurial structure. Explain the advantages and disadvantages of an entrepreneurial structure.4

3Distinguish between a centralised structure and a decentralised structure.3

4Describe the main features of a matrix structure.3

5Distinguish between centralised and de-centralised decision making.5

6*Explain why organisations have moved away from a tall structure towards a flat structure.4

Aspects of structure

1Describe factors that influence the formal structure of an organisation.3

2*Distinguish between a formal and informal structure.2

3Explain the benefits of outsourcing for an organisation.4

4Discuss the effects of outsourcing on an organisation.5

5Discuss the advantages and disadvantages of empowering staff within an organisation. 6

6Describe different types of organisational relationships that can exist within a business. 4

7Explain the effects of delayering on an organisation.4

8Describe the effects of increasing a managers span of control.5

9Describe factors an organisation should consider when trying to encourage a positive corporate culture.5

10Describe different methods organisations can use to develop a corporate culture.4

11Explain the advantages to an organisation of having a strong corporate culture4

HUMAN RESOURCES

HR Role

1*Describe the role of the Human Resource department.5

2Compare the use of time rate with piece rate for paying employees.3

3Describe other employee payment systems that could be used by an organisation.4

Patterns of employment

1*Describe methods of flexible working practices which could be introduced in a modern organisation.6

2Discuss the effects on an organisation of employing staff on temporary contracts.6

3Describe 3 different employment contracts and justify their use. (A different justification must be used each time.)6

4*Explain the implications for an organisation of offering flexible working practices

Recruitment and selection

1Discuss the use of external sources of recruitment.5

2Discuss the use of internal sources of recruitment.4

3Describe reasons for an organisation making use of an assessment centre as part of the selection process.4

4Describe a selection process that an organisation could use to ensure it employs the best workers.4

5Describe 5 stages of the recruitment process used by most organisations.5

6Describe the benefits to an organisation of using interviews prior to appointing a new employee.3

7Describe and justify 3 forms of testing (other than interviews) used in the selection process. (A different justification should be used each time.)6

Training and appraisal

1Describe the benefits to an organisation of staff training.5

2Explain the disadvantages of staff training for an organisation.4

3Describe the costs of staff training.4

4*Explain the consequences for an organisation which does not offer staff training.3

5*Distinguish between on and off the job training2

6Describe appraisal and justify its use.4

7Describe the role of a manager in staff appraisal.5

8Appraisal has identified poor performance for a member of staff. Describe the actions that a manager could take to improve the employees performance.4

Employee relations

1Discuss methods that an organisation could use to ensure their staff stay motivated.4

2Explain the impact of industrial action on an organisation.4

3Describe different forms of industrial action that an employee could take. 5

4Describe methods an organisation could use to encourage positive employee relations.6

5Explain the effects that poor employee relations could have on an organisation.4

6*Explain the role of ACAS 3

Legislation

1Describe the main features of the Equality Act 2010 3

2*Justify the use of legislation such as the Health and Safety at Work Act2

3Explain how the following legislation could impact on an organisation: Freedom of Information Act 2002 National Minimum Wage Regulation 1999 Employment Rights Act 19966

FINANCE

Role of Finance

1Explain the role of the Finance department in an organisation.4

2Describe the role of the finance department in meeting the expectations of HMRC (Inland Revenue).2

Financial Information

1Describe financial information that potential shareholders could use to decide whether or not to invest in a company.6

2Describe reasons why a competitor would make use of another organisations final accounts.2

3Describe the final accounts that would be produced by an organisation.3

Budgets

1Describe reasons for cash flow problems that can affect an organisation.5

2Describe the purposes of sales and production targets.3

3Describe reasons why an organisation would use cash budgets5

4Describe the actions that could be taken to overcome cash flow problems.5

Ratio Analysis

1Describe accounting ratios managers could use.6

2Explain the limitations of using accounting ratios.5

3Describe the actions an organisation could take to improve the following ratios: Net Profit Percentage Current Ratio 6

4Describe the limitations of ratio analysis when making financial decisions.5

5Describe 3 accounting ratios and justify their use. (A different justification must be used each time.)6

6Explain the reasons managers use accounting ratios.4

MARKETING

Role of Marketing

1Distinguish between product orientation and market orientation.2

Market Research

1Describe 4 methods of field research.8

2Discuss market research techniques used by an organisation.6

3Distinguish between: quota sampling and random sampling product led and market led organisations.4

4Describe and justify 3 market research techniques that an organisation could use to assess customer satisfaction. (A different justification should be used each time.)6

5Describe the reasons why organisations focus on research and development. 4

Market Segmentation

1Many organisations segment their market by gender eg male or female.Describe 6 other methods that an organisation could use to segment their market.6

2Explain the advantages to an organisation of using market segmentation4

Marketing Mix

1Describe the stages that a product might go through prior to being launched onto the market.5

2Describe the 4 main stages of the product life cycle.4

3Describe the effect of each stage on profits.4

4Explain the effects that branding its products could have on an organisation.5

5Discuss the advantages and disadvantages to organisations such as Asda of selling own brand products. 4

6Justify the use of loss leaders as a pricing tactic.4

7Describe 2 pricing tactics that an organisation could use when selling an exclusive product.4

8Describe 3 pricing tactics that could be used when an organisation attempts to break into a new market.6

9Describe methods a public relations department could use to improve the image of an organisation.4

10Organisations use various forms of advertising media to bring their products to the attention of consumers. Describe and justify different forms of advertising media.6

11Describe 4 different sales promotions that could be carried out by a retailer.4

12Describe the advantages and disadvantages of product endorsement.6

13Describe 5 extension strategies that could be used to extend a products life-cycle.5

14Explain how various methods of extending a products life cycle can increase sales.6

15Describe the advantages and disadvantages of branding for an organisation.6

16Explain the impact on a marketing department of introducing modern technology.5

17Describe the advantages of e-commerce to an organisation.5

18Explain the purpose of the Advertising Standards Authority2

OPERATIONS

Role of operations

1*Describe the main functions carried out by the Operations Department3

Methods of production

1Explain the advantages and disadvantages of using job production.5

2Describe the main features of batch production.3

3Compare batch production with flow production.3

4Explain the factors that would affect the choice of production method used.5

5Distinguish between job production and flow production.5

Quality

1Discuss the importance of quality inputs in the operations process of an organisation.4

2Describe quality management systems that can be used within an organisation.7

3Discuss quality management techniques that an organisation could use.8

4Discuss the use of quality standards for an organisation.6

5Describe the advantages and disadvantages of gaining approval from the British Standards Institution (BSI).4

Stock

1Describe the use of ICT in a stock control system.5

2Discuss the use of just in time stock control.5

3Draw a diagram to illustrate how you would manage stock control effectively (your diagram should be correctly labelled). 3

4Describe the features of an effective stock control system.5

5Explain the problems that can arise from under and over stocking.5

6Discuss the use of just in time production.6

Channels of distribution

1Explain the considerations an organisation would take into account before choosing a supplier.6

2Describe and justify 4 methods of direct selling that could be used by an organisation. (A different justification must be used to support each description.)8

3Describe the factors an organisation would take into account before choosing a channel of distribution.5

4Describe the reasons why some manufacturers sell their products to retailers rather than directly to customers.4

5Explain the advantages and disadvantages of using a wholesaler. 5

6Discuss the advantages and disadvantages to a manufacturer of using a wholesaler.5

7Describe the advantages and disadvantages of methods of physical distribution that a producer could use to get their product to consumers.5