Oct/Nov 2022

SSG makes mobile (cell) phones through batch production. Maintaining quality control matters. SSG employs 130 workers, and every one of them gets on-the-job training. The Marketing Manager is studying cost and output information for product X. Table 1.1 shows an extract. Because product X is now at the maturity stage of the product life cycle, SSG is weighing up possible extension strategies.

Production of goods and services

DNG supplies electricity to 16 million customers. It is a limited company, so DNG’s shareholders enjoy limited liability. DNG plans to end the use of coal when generating its electricity. Pressure groups had an effect on this choice. The Managing Director understands that changing in this way will involve an opportunity cost. She is weighing up the most effective way to pass this important information on to DNG’s 6500 employees.

Internal and external communication

CPK runs 5 sports clubs. Each club provides a variety of activities, including gym and yoga classes. To keep its 60 employees well-motivated, CPK uses job enrichment. Having the correct marketing mix is essential to CPK’s success. The Finance Director is examining CPK’s financial statements. Table 3.1 shows an extract. He wants to find out how a rise in taxation could influence CPK’s business.

Analysis of accounts

Once the recession in country X has ended, Beena is planning to launch a hairdressing business. One possible route is to buy a franchise from an established hairdressing business. Beena has $800 in savings and understands that having enough working capital will be vital for her business. She intends to use market research to guide her decisions. Beena also knows that a market can be divided up in many different ways.

Market research

EQR operates 150 cafes. Its range of drinks includes coffee. Ethics matters to EQR. The Managing Director has been examining EQR’s statement of financial position. The business aims to grow its market share. The Managing Director intends to expand the business by selling franchises for $85,000. She is also looking at methods to raise added value.

Enterprise, business growth and size

Kemala produces high-quality beauty products. Demand for her best-selling hand cream is price inelastic. She promotes her products in specialist beauty magazines. Kemala is examining her income statement. An extract is shown in Table 2.1. She commented: ‘When I started my business, I did not understand why cash matters’.

Analysis of accounts

DBG is a construction company. It constructs hospitals, roads and schools. DBG employs 2000 workers. The managers adopt a democratic leadership style. They understand that effective internal communication is important. DBG is planning to alter its organisational structure. As a result, some employees will be made redundant. The Managing Director must decide how changes in government spending could influence business activity.

Organisation and management

TYA is a limited company that produces 300000 cars each year and employs 600 workers. It has high fixed costs. The Managing Director wants to raise factory efficiency. He commented: ‘Globalisation is altering the way businesses work. Many manufacturing businesses are now deciding whether to move their operations to other countries’.

Location decisions

NFF is a fishing business that catches fish and other seafood, so it operates in the primary sector. It owns 6 fishing boats and employs 36 workers. NFF places importance on helping to achieve sustainable development. Jennifer, who owns the business, has drawn up NFF’s statement of financial position. An extract appears in Table 1.1. NFF has a high level of debt, and Jennifer wants information about internal sources of finance that the business could use.

Business finance

GBR makes shoes. Under its current production method, GBR is able to produce 18 000 pairs of shoes each week. GBR is a limited company. Its chief aim is to raise profit. This aim can clash with the aims of other stakeholder groups, including GBR’s 450 employees. The business does not export any of its products. The directors are keen to examine the opportunities that globalisation could bring to GBR.

Business objectives and stakeholder objectives

MDL runs a hotel with 160 rooms. It employs 600 workers and intends to recruit 20 more employees. Induction training will be given to every new starter. Trade union membership will be encouraged. The Human Resources Manager understands that people work for many different reasons. He said: ‘It is hard to recruit people to work at the hotel. This may be because of the stage of the business cycle.’

Recruitment, selection and training of employees

Caleb wants to become an entrepreneur. He intends to launch a business making handmade furniture, such as tables and chairs. He will sell his products to a niche market. A strong brand image will be important. Caleb understands that many legal controls may affect his marketing strategy. He is considering using e-commerce to sell his products. Caleb also needs to choose a suitable location for the business.

Marketing strategy

Explain four business objectives that Tokumbo could choose for SA.

Business objectives and stakeholder objectives

Explain four ways in which quality is important to a business.

Business finance

Explain one advantage and one disadvantage for Tokumbo in operating as a sole trader.

Enterprise, business growth and size

Explain two possible effects on SA of the rise in the rate of inflation in country X.

Recruitment, selection and training of employees

Explain two reasons why the owners of CC might want the business to expand.

Enterprise, business growth and size

Explain four functions of packaging for CC’s products.

Marketing mix

Explain two diseconomies of scale that CC could face as it grows.

Costs, scale of production and break-even analysis

Explain four advantages to employees of being members of a trade union.

Analysis of accounts

Explain four factors Duncan needs to take into account when selecting the communication method to use with DD’s employees.

Internal and external communication

Explain four functions of marketing in a business.

Marketing mix

Explain two possible reasons DD may choose to keep inventory at a low level.

Motivating employees

Explain two ways a decrease in interest rates might affect DD.

Analysis of accounts