Hong Kong Association for Business Education

HKDSE 2012Review on BAFS

P 2BPaper 2B

Elective Part --Business Management ModuleBusiness Management Module

*Financial Management

*Human Resources Management

*Marketing Management

Paper 2B pLearning & Teaching Strategies

Paper 2B Display of subject knowledgep y j g

– make use of content-obligatory language( Business Terms/ Business English)

Application of knowledge– show application of relevant knowledge

d i d b th underpinned by theory Integration of knowledge

evaluate alternatives based on different – evaluate alternatives based on different perspectives

Examples: Content-obligatory languageExamples: Content obligatory languageStudents’ Language Content-obligatory language

Change ownership Transfer ownershipService after buying After-sale Service

Cannot go on the businessBear the debts

Lack of continuityy g

Bear the liabilitiesLow purchasing powerCannot buy the goods

Bear the liabilities

Paper 2B Section APaper 2B Section AShortQuestion

Topic Content Mark RemarksQ

Q1 HumanResources

Indirect compensation

6 Display ofsubjectResources compensation

& purposessubjectknowledge

Q2 Marketing Elements of l d

6 Display ofbj tsales and

purchase contract

subjectknowledge

Q3 Human Resources

Collective bargaining

6 Application of Knowledge

Q4 Finance How Budgeting 6 ApplicationQ4 Finance How Budgeting useful to the management

6 Application& Integrationof Knowledge

Q5 Marketing Benefits of 6 Application of Q5 Marketing Benefits of using e-marketing

6 Application of Knowledge

Paper 2B Section APaper 2B Section AQuestion & Answer Students’ Performance

1. Indirect compensation-benefit other than normal wages and salaries

P

• Misinterpretation of indirect compensation as incentive pay compensation policyProvision of wrong purposesPurposes

-enhance employees’ sense of belongings-retain employees

• Provision of wrong purposese.g.an increase in productivity x

improvement of morale x( ***they are the effects not purposes)retain employees

-attract high calibre employees( y p p )

2. Essential element of a sales and • Some mixed up the three elements with 2. Essential element of a sales and purchase contract- offer : the buyer offers to buy a product under certain terms- acceptance: the seller accepts the

Some mixed up the three elements with the terms of sales.( wrong concept)

e.g. Order xterms of delivery xacceptance: the seller accepts the

offer- consideration: the buyer receives the product and the seller receives the agreed terms

terms of delivery xterms of payment xpricing x

the agreed terms

Paper 2B Section AQuestion & Answer Students’ Performance

Paper 2B Section A3. Collective Bargaining can promote industrial relations in three ways:- Improve communication: create a

• Most candidates were able to explain how collective bargainingcan promote industrial relationsp

platform for discussion- Enhance efficiency: minimize the cost

of negotiation between the management and individual

can promote industrial relations.

• But some focused only on the benefits to employers / employees g

employees- facilitate discussion and mutual

understanding: balance the power between employer and employees

without explaining how it can promote industrial relations.

p y p y- More systematic: provide a formal

channel in revolving disputes

4 How budgeting is useful to the Poor performance of candidates4. How budgeting is useful to the management of a company:- planning-forecast figures provide

directions for formulating action plan- Organizing: budget information assist

• Poor performance of candidates

• Only show the importance of budgeting- Organizing: budget information assist

resources allocation, cooperation and integration across departments

- Leading :quantified indicators become specific targets for employees

budgeting

• But not mention/explain howbudgeting can be helpful for specific targets for employees

- Controlling: budget figures serve as performance standards

budgeting can be helpful for performing management functions

Paper 2B Section AQuestion & Answer Students’ Performance

Paper 2B Section A5. State three benefits to a bookstore of using e-marketing t f it di t ib ti to perform its distribution function.

cost sa ing ed ce ent and -cost-saving: reduce rent and labour cost- wide coverage: easier access

by customers from all over

• Good performance with reasonable elaboration

by customers from all over the world

- Convenience to customers: facilitate sales

• Most candidates discussed the benefits that a bookstore can realize after using e-facilitate sales

- Extended service hours: enable round-the-clock service

can realize after using emarketing for its distribution function.

service

Paper 2B Section BPaper 2B Section BCaseAnalysis

Topic Content Mark Remarks

Q6(a) (i)(ii)

Finance EOQ 32

Display ofsubjectknowledge

Q6(b) Finance Ways to hedge against the Euro

4 Display ofsubjectagainst the Euro

exchange rate risksubjectknowledge

Q6(c) Marketing the case of Platine to illustrate marketing concept

3 Application of Knowledge

Q6(d) Marketing Purchase 6 ApplicationQ6(d) Marketing PurchaseDecision-making process

6 Application& Integration of Knowledge

Q6(e) Marketing Three elements of 6 Application of Q6(e) Marketing Three elements of marketing mix other than product

6 Application of Knowledge

Paper 2B Section BQ6(a)(i) At EOQ, the total inventory cost (ordering and carrying cost)is minimal among all possible quantities.

SatisfactoryBut some misinterpret minimum holding cost as

(ii) EOQ=200 dozens minimum total inventory cost

Q6(b) Ways to hedge against the Euro exchange rate risk:- Buy and deposit Euro

Not familiar with the meaning of “ hedge” and Buy and deposit Euro

- Buy forward contracts on Euro- Buy call options of Euro- Buy futures on Euro

meaning of hedge and tend to provide irrelevantanswer.

Q6( ) M k ti t f Pl ti G dQ6(c) Marketing concept of Platine:- Analyze the needs of customers and take

appropriate measures to satisfy their needs- Platine should investigate the taste and

f f t d ff th

GoodAble to explain the definition of marketing concept but some cannot

l t th preference of customers and offer the menu items that meet their needs

apply to the case

Q6(d) Steps of Purchase Decision-making process-stimulus e g read an advertisement

Only outline the consumer D-M process-stimulus e.g. read an advertisement

-needs/problem awareness e.g. feel hungry-information search e.g. obtain information-development of alternatives e.g. ------------evaluation of alternatives e g ---------- ---

consumer D-M processBut disregard the application examples in the steps

evaluation of alternatives e.g.

Q6(e) Three elements of marketing mix:-price e.g. competition-based pricing/ price diff.-promotion e.g. advertisement/ waiter’s

Good performanceThey can list and illustrate the elements of

recommendation-place e.g. take away service/ longer service hours

marketing mix in the casePrice: lower the price xPlace: more restaurant x

Paper 2B Section BPaper 2B Section BShortQuestion

Topic Content Mark RemarksCase Topic Content Mark Remarks

Q

Q7(a) HRM Two possible adverse consequences of

4 Display ofsubjectknowledge

Q7(a) HRM Two possible adverse consequences of low

4 Display ofsubjectknowledge

consequences of low morale

knowledge

Q7(b) HRM Three ways to motivate the crew

6 Display ofsubject

morale

Q7(b) HRM Three ways to motivate the crew members w/r to

6 Display ofsubjectKnowledge

members w/r to Herzberg’s dual-factor theory

Knowledge& application

Q7(c) Finance Three reasons why 6 Application of

members w/r to Herzberg’s dual-factor theory

Knowledge& application

Q7(c) Finance Three reasons why th i k f i

6 Application of K l dQ7(c) Finance Three reasons why

the risk of economic fluctuation is uninsurable

6 Application of Knowledge

the risk of economic fluctuation is uninsurable

Knowledge

Q7(d) Finance Two elements of 4 ApplicationQ7(d) Finance Two elements of

credit policy & explain how they can reduce the

4 Application& Integration of Knowledge

Q ( )credit policy & explain how they can reduce the delays in payment

pp& Integration of Knowledge

delays in payment

Q7(e) Finance Three sources of funds of takeover

6 Application of Knowledge

y p y

Q7(e) Finance Three sources of funds of takeover

6 Application of Knowledge

Paper 2B Section BCase Student PerformanceQ7(a) Adverse consequences

-higher absentees/labour turnoverWell-answeredBut some failed to answer from-lower job satisfaction

-poor performance due to lack of motivation

But some failed to answer fromthe perspective of HRM.

(b) h bQ7(b) Three ways to motivate crew members- give sense if recognition and achievement- empowerment and allow job autonomy- offer more development opportunities

dj j b k h ll i

FairA minority of candidates wrongly used X & Y theory and wrongly include hygiene factors- adjust job content to make more challenging include hygiene factors.

Q7(c) Three reasons why the risk of economic fluctuation is uninsurable:difficult to measure the probability of

PoorThey apparently did not have a - difficult to measure the probability of

financial loss- the loss is not accidental- law of large number is not easily applied

the risk is speculative

y pp ygood understanding of uninsurable risk

- the risk is speculative

Q7(d) Two elements of credit policies & how to use them to reduce payment:- collection policy: expedite debt collection

SatisfactoryThey were able to explain waysto reduce the delays in - credit terms: adjust discount terms ---

- credit standard: set stringent standard---to reduce the delays in payment

Q7(e) Three sources of funds for the takeover:-issue shares (explain reasons-----)

SatisfactoryThe can s all listed the so ces-issue shares (explain reasons-----)

-issue debentures------long-term bank borrowing-liquidation on fixed assets

They can usually listed the sourcesbut failed to provide justification ( even wrongly list short-term funds and repeat cash reserve)**

Paper 2B Section CPaper 2B Section CShortQuestion

Topic Content Mark Remarks

Q8(a) HRM The steps oftraining functions

10 Display ofsubjectknowledge

Q8(b) Finance Identify the variables of the NPV formula and

10 Display ofsubjectKnowledge

illustrate the meaning of each with examples

& application

Q9(a) Marketing The bases of market 8 Display of subject Q9(a) Marketing The bases of market segmentation for a new hotel

8 Display of subject knowledge

Q9(b) Marketing Illustrate with l t l i

12 Application& I t ti f examples to explain

Why customerrelationship management (CRM) i i t t t

& Integration of Knowledge

is important to a hotel

Question & Answer Students’Performance

( ) h h b k h ld k f8(a)Steps that the bank should take to perform its training function:

-identify training needs e.g.---f l t t i i bj ti d

SatisfactoryMost candidates described the steps in th t i i f ti -formulate training objectives and

plan e.g.----design training programs e.g. workshopimplement the training program

the training function appropriately

-implement the training program-evaluate the effectiveness of the

training programs e.g. written test forfront-line staff on the regulation of front-line staff on the regulation of investment products.

8(b) identif the a iables of NPV Poo8(b) identify the variables of NPV formula and illustrate the meaning of each with an example:

initial outlay

PoorMost candidates did not identify the variables of NPV or - initial outlay---

-cash flow------discount rate-------project life ------

variables of NPV or illustrate with relevant examples.Some only list the project life

-net present value------Some only list the equation without elaboration.

Question & Answer Student Performance9(a) Bases for the market segmentation:

geographic segmentation: countries/Good

- geographic segmentation: countries/cities ---e.g. target those guests frommainland

- demographic segmentation: age/sex---

Most candidates properly explained the bases of market segmentation for a demographic segmentation: age/sex

e.g. target high income group- psychographic : social class/life style—

e.g. target those guests from the

market segmentation for a new hotel.

However, some candidates e.g. target those guests from the upper class

-benefit segmentation: product benefitthat customers seek

However, some candidates only listed out the segmentation bases withoutapplying to the scenario.

e.g. target customers seek for a convenient location

pp y g

9(b) CRM is a process that involves the use Poor9(b) CRM is a process that involves the useof customers’ information to build andmaintain customer relationship in anorganized way.

Poor

Many candidates did not distinguish between CRM organized way.

Reasons:- more knowledge about customers

thus better services be provided

distinguish between CRM and customer relationship.

They only explain the p- lower cost to serve existing customers- easier to retain customers than to

acquire new customers

y y pcustomer relationship instead of CRM.

Adjusted Teaching Strategies*Provision of enough classroom activities*Worksheet designed for Knowledge g g

Capturing and Memorization*Group discussion to arouse interest andGroup discussion to arouse interest and

motivation*Appropriate Cases designed to teachAppropriate Cases designed to teach

application of knowledge*M d illi h t iti kill*More drilling on short essay writing skills*Demonstration on good essay for guiding

students the Integration of knowledge

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