MOB Unit 2 Past Papers

-L-

a

SECTION A

MODULE

I

PRODUCTION AND OPERATIONS MANAGEMENT Answer ONE question from this section.

1.

(a)

A business has to take into consideration a number of factors in order to decide what products to produce. Explain how the following factors may influence such a decision.

(i) (ii)

(b)

Competitors'behaviour Technology

(iii)

Management

(iv)

Financial viability

When designing any product, or design team.

[ a

8 marks]

number of features have to be considered by the designer

(i)

What is a Product Design Brief?

(ii)

Identify FIVE main features of a Product Design Brief and explain why each is important in designing a new product. [15 marks]

[

2 marks]

Total25 marks

GO ON TO THE NEXT PAGE 02233020{CAP8 2004

2.

(a)

Sure Cement Manufacturing Company uses a flow production system since its incorporation in 1999.

(i) (ii) (iii) (b)

Define flow production.

I lmark

State THREE main features of a flow production.

[

]

3 marks]

Discuss THREE advantages and THREE disadvantages of the flow production system. lL2 marksl

Clean-Sud, a soap manufacturing company, is planning to introduce a new detergent on the market. The task involved in producing this product, the estimated times required and the order in which the tasks may be undertaken are given below. (The tasks have been coded). Tasks

Order/Dependency

Estimated Time (weeks)

A

Must be done first

4

B

Can only start when A is completed

5

C

Can only start when A is completed

4

D

Can only start when B is completed

6

E

Can only start when C is completed

8

F

Can only start when F. is completed

5

G

Must wait for D and E to be completed

8

H

Can only start when F is completed

5

I

Must wait for G and H to be completed

7

Draw a network diagram to represent these activities.

[

9 marks]

Total25 marks

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-4SECTION B

MODULE 2 FUNDAMENTALS OF MARKETING Answer ONE question from this section.

3.

Newspapers and television are two popular advertising media. In choosing between these two media, advertisers take a number of factors into consideration. Identify FOLrR of these factors and explain how EACH might influence an Airline's choice for advertising a flight to a new destination. [25 marks]

4.

As a Management of Business student, you are asked to write on the topic "How a producer decides 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 of channel(s). The Product The Market The Company

(a)

(i) (ii)

(b)

Define 'channel' of distribution.

I lmark]

Describe TWO major types of distribution channels.

[

6 marks]

Explain THREE ways in which each of the given factors may influence the choice of a distribution channel for a producer. [18 marks]

Total25 marks

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-5SECTION 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 setting upa jerk chicken business as a sole trader enterprise, and has approached you for advice. Asa 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]

(b)

THREE challenges he may face as an entrepreneur.

(c)

Two reasons why

(d)

THREE factors which may influence the pricing of his

(e)

TWO ways in which he may promote his

(o

Two factors

he may need to conduct a market feasibility

[3 marks]

study.

[4 marks]

product.

[6 marks]

product.

that may influence the location of his

t2 marksl

business.

[4 marks]

Total25 marks 6.

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 a pre-requisite for the loan.

Mary has no idea what

a business plan

is and has approached you for advice. You are required

to:

is.

(a)

Explain to her what a business plan

(b)

outline Two reasons for the importance of such a plan.

(c)

outline FIVE steps in the preparation of a business

(d)

Explain TWO legal requirements Mary will have to observe in setting up her business. [ 4 marks]

(e)

Suggest THREE ways in which Technology could assist Mary in efficiently operating

herbusiness.

I l mark

plan.

[

]

4 marks]

[10 marks]

[

6marks]

Total25 marks END OF TEST 02233020/CAPE 2004

,} _$

t

SECTION A

MODULB

1

PRODUCTION AND OPERATIONS MANAGEMENT Answer ONE question from this section.

1.

Huckleberry Processing Inc. is a two-year old company which produces lamb for the lqcal market in Blackberry Isle. The Production Manager, Mr. Knowles, has noticed a shortage of carcasses on several occasions and has decided to institute a system of forecasting to overcome the problem. He wants to know which of the two methods of forecasting: least squares regression or consumer surveys is more appropriate. (a)

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 (b)

Explain TWO strengths and TWO weaknesses of customer surveys compared to least squares regression as methods of forecasting. [ 8 marks]

(c)

Recommend and justify a forecasting method to Mr. Knowles.

[ 5 marks] Total25 marks

,

(a)

Productivity and Total Quality Management (TQM) appear to be closely related concepts. With the aid of an example, distinguish between the TWO concepts and explain briefly how they are related. [ 6 marks]

(b)

Discuss ONE way in which EACH of the following factors may impact on the level productivity and TQM, in a large cement plant:

(i)

of

Supervisory skills

(ii)

Labour-management relations

(iii)

Continuousemployeetraining

ll9marksl Total25 marks

GO ON TO THE NEXT PAGE 02233020|CAPE 2006

-3.SECTION B i

MODULB

2

FUNDAMENTALS OF MARKETING Answer ONE question from this section.

3.

(a)

Define the term "qegmentation".

[ 2 marks]

(b)

State THREE benefits of segmentation.

[ 3 marks]

Carib Flavors is developing the marketing strategy for a new drink called Orbit, a nonalcoholic, glucose-based energy drink containing ginseng. Management believes that the market for this drink can be segmented in terms of demographics and psychographics for better targeting. (c)

Select, explain and justify trow tWO demographic and TWO psychographic variables may be used to segment the market for this new drink. [20 marks]

Total25 marks 4.

Regional Seminars Inc. is a small event management company in the process of developing several new workshops in personal development for the general public. Management has decided to conduct a survey to answer the question: Would a sufficient number of persons patronize the workshop.sZ Managements is trying to decide whether to use probability or nonprobability sampling to select respondents for the survey. Since it has six weeks to do this research and a limited budget, the company has narrowed the choices down to systematic random sampling and convenience sampling.

(a)

Define the term "sampling" and distinguish between "probability sampling" and "nonprobability sampling." [ 6 marks]

(b)

Define the terms "convenience sampling" and "systematic random sampling" and explain how EACH might be used to select respondents. [2marks]

(c)

Indicate which of the two types of sampling in (b) above management should use and justify your answer. [ 7 marksl

Total25 marks

GO ON TO THE NEXT PAGE 02233020/CAPE 2006

-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 \(

_,.'n (a) dfr''r/","\ ' ' (^y''ril', ;, (b) i. .]./ *r ,,rl

'

Lo

.i'

.

\..

!

Identify FIVE factors that Eric

1

Discuss

Eric's

\''

(b)

Eqllrider if his business is to succeed.

tsl#Le

r

lsmarksl

n*.*J

t20

-. -? f,lo:,'''ic the$pact of daCrr of the factors identified in 5 (a) above on the success of

business.

o

.,

r r /,-

r-.r

,

--

marksl

]

-' -r+ ) c': i ,/('[' i 6. , '(q)r, / ,d {r-'

Tll-s-t

Total 25 marks

Discuss TWO main contributions of small businesses to the development of your country's economy. [0marks]

(i) (ii)

Discuss THREE difficulties faced by small business in the Caribbean. Suggest ONE way in which EACH difficulty identified in 6 (b) (i) above may be overcome. [15 marks]

Total25 marks

END OF TEST

o2233020tCAPE 2006

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t

ri -2SECTION 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 will influence the design and prodrction of the blender:

(a) Features (b) Reliability (c) Durability (d) Serviceability 2.

Tot^125 marks

Blackbird Entertainment Company is planning an event to expose its artistes to the general public. It has identified the following main activities.

Activity

Description

Preceding

Activities

(a)

A

Sign up artistes

B

Book venue

C

Obtain sponsorship

D

Design advertising materials

E

Duration (Weeks)

None

3

A A A

I 4

Print Tickets

C,D

4

F

Sell Tickets

B

3

G

Place advertising

D

4

H

Pay for venue

E

2

I

Hold event

G,H

I

5

Draw a network diagram to represent the above activities inclusive of their

duration. marks]

[1]

project.

o)

Calculate the duration of the

(c)

Define the term "critical path" and identify the critical path of the project.

t

4 marksl

[

4 marks]

GO ON TO TI{E NEXT PAGE o2233020tCAPE 2007

,

|

F -3(d)

Define the following terms, in relation to network diagrams:

(i)

Early StartTime

[

2

(ii)

Late Finish Time

[

2 marks]

Total float

[

2

(iii)

marks]

marks]

Total25 marks

SECTION B

MODULE 2: FT,]NDAMENTALS OF MARKETING Answer ONE question from this section.

3.

(a)

Define EACH of the following marketing concepts

(D (ii) (iii) (iv)

Branding Pricing

Distribution channels Advertising

t o)

8

marksl

One River Foods is a Caribbean company operating in Sunset Isle which markets a variety of food products under the One River brand name. The company plans to introduce a new line of cornflakes to the island in three months.

(i)

For EACH concept defined in (a) above, describe TWO strategies which the company may consider when planning this aspect of its marketing.

(ii)

For EACH concept, indicate which strategy is better, giving ONE reason for your choice. U.7

marksl

Total25 marks

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T I

44.

Advanced Marketing Research Inc. has been asked to conduct a research project for Sunshine Bakeries, a small Caribbean manufacturer of cakes and pastries. The company wants to investigate buyer motivations and other purchase behaviour such as frequency of purchase for its type of products. The company must choose between the following pairs of options for the research project.

(i) (ii) (iii) (a) (b)

Primary versus secondary sources of data

Probabilityversusnon-probabilitysampling Focus groups versus surveys

Differentiate between the above pairs of options outlining one advantage and one disadvantage of one option over the other. For EACH pair of options, indicate which one the company should choose, giving ONE reason for your choice.

Total25 marks SECTION C MODULE 3: SMALL BUSINESS MANAGEMENT Answer ONE question from this section.

CASE STIJDY

MAKING 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. They had recently moved into a small district, called "Peaceville", comprising mainly of middle-aged women who spent most of their time going to church, the supermarket and back home. The small number of young adults would spend most of their time at work and getting involved in social activities in the church. Most business places are usually closed by 8 p.m. except for a few night pubs which are usually frequented by older men. This district can almost be described as a retirement community. Both girls are thinking of setting up their business in a small shoppingplaza in the communify and they are quite excited since their business will be the 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 from the local bank, which is the only one in the community.

(a) (b)

Explain what is meant by a

'partnership'.

[ 2 marks]

Suggest to Sandy and Shelley, FTVE main provisions that they could include in their

partnershipdeed.

[ Smarks] GO ON TO TTM NEXT PAGE

o2233020tCAPE 2007

-5business.

(c)

outline Two disadvantages of forming

(d)

Identify THREE major challenges that Sandy and shelley may face as young entrepreneurs. [ 3 marks]

(e)

Outline ONE way in which market demand would affect S & S Enterprise.

a partnership

[ 4 marks]

[ 2 marks] (o

Discuss THREE main reasons why it would be important for Sandy and Shelley to conduct market research before embarking on their new business venture.

[ 9 marks] Total25 marks

6.

(a)

Mary Cook-Well, the owner of a small restaurant, is unsure of the reasons for updating her business plan on a yearly basis. Outline THREE possible advantages to be gained by Mary from engaging in such a practice. [ 6marks]

(b)

Mr. Want-Money is a very opinionated middle-aged man who loves to make decisions on his own. He is thinking of setting up an auto-parts business. He has no real experience as to how to set up or manage such a business. You are to advise him on the following:

(i) (ii) (iii)

THREE important factors he must consider when deciding on a location for his

business

[ 6 marks]

ONE main reason he should start a sole trader business rather than a [ 3 marks]

Partnership

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 autoparts business instead of starting a new one [ 4 marks]

Total25 marks

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 makes a 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 tenitory to locate.

(a)

Market demand

O)

Intensity of competition

(c)

Government regulations

(d)

Availability of raw materials

(e)

Supply of labour

[25 marksl

Total25 marks

2.

(a)

Discuss TWO ways in which productivity is important to EACH of the following:

(i) (ii) (iii) (b)

Businesses

Unions [19 marks]

Government

Outline TWO strategies that can be used to improve productivity.

[

6 marks]

Total25 marks

GO ON TO TI{E NEXT PAGE 02233020|CAPE 2008

\

-3SECTION 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 of casual clothing. Currently the line of clothing is not branded. The company plans to introduce its line of clothing to one of the larger Caribbean islands in three months.

(a)

Define EACH of the following marketing strategies:

(i) (ii) (iii)

Branding Penetration pricing

Direct distribution channel

(iv) Advertising (b)

[Smarks]

Outline ONE advantage and ONE disadvantage of using EACH of the marketing strategies 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 Gifts Unlimited, a small Caribbean manufacturer of ornaments and gifts. The company wants to investigate buyer motivations, frequency of purchase and amount purchased per occasion.

(a)

(b)

(i)

Outline the main difference between primary data and secondary data, giving ONE advantage of EACH type of data.

(ii)

Outline the main difference between probability sampling and non-probability sampling, giving ONE advantage of EACH type of sampling. t16 marksl

Using * upprop.iate criterion, recolnmend and justify the strategy from EACH pair at (a) (i) and (a) (ii) that will help the company to achieve the objectives of the research project. [ 9 marks]

Total25 marks

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7 -4 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. Her brother, a business consultant, has suggested that she should do market research before investing in such a business.

5.

(a)

Discuss FOUR ways in which market research is advantageous to a small business.

[L6 marks] (b)

Outline THREE problems Miss Pretty may encounter in conducting market research for her proposed business. t 9 marksl

Total25 marks

6.

(a)

Outline FOUR challenges that a young entrepreneur may face in the 'start-up' phase of a small business and suggest ONE solution to EACH challenge outlined. [16 marks]

(b)

Outline THREE factors that a young entrepreneur needs to consider when deciding what form of organization his or her business should take. [ 9 marks]

Total25 marks

END OF TEST

-I I I I

I

11

r c-l

6

co

m

o2233020tCAPE 2008

7 .2SECTION A

MODULE

1

.

PRODUCTION AND OPERATIONS MANAGEMENT Answer ONE question from this section. 1.

Intensified global competition has been a major factor behind management's sharpened interest in quality management and control.

(a)

(D (ii)

Discuss ONE implication of Total Quality Management for EACH of the following: -r

., aA

. '

: (b)

[ 3 marks]

Explain what is meant by 'Total Quality Management'.

Employees Product/process design

s#:il:J.

[16marks]

Outline THREE circumstances under which Total Quality Management programmes may fail to achieve overall organizational objectives. [ 6 marks]

Total25 marks 2.

(a)

Forecasting serves as the basis for planning.

Outline THREE advantages and THREE disadva4tages of the Delphi method as a forecasting

(b)

technique.

@ "4)

tl2marksl

Mr. Opportunity is thinking of investing in a garment factory. The decision tree below shows the alternatives available to Mr. Opportunity decides to build a large factory or a small factory.

if

he

MO

1pJJ94

D9

Overtime

(6)

m*oo94

ufldI,:rSe\

&biDD-".n_nd(O\ s70

(i)

Using the decision tree, sequentiulfy *ily=+bg d_qglg{t Mr. Opportunity needs - 4:' to make at EACH step. [ I marks]

'

(ii)

a) b) (iii)

/'*'

-

Calculate thqhifhest expected value for building

=:___, ----'.. alargefactory. a small

factolf

[4marks]

Determine which alternative Mr. Opportunity must choose expected monetary returns.

if

he is to maximize L mark]

I

Total25 marks

GO ON TO THE NEXT PAGE o2233020lCAPE 2009

l.-' I

t"

Lai4/^

-3SECTION B

MODULE 2 FUNDAMENTALS OF MARKETING Answer ONE question from this section.

3.

(a)

Differentiate between 'informative advertising'and 'persuasive advertising', stating ONE situation in which EACH would be MOST effective. [ 8 marks]

(b)

One major advertising decision is determining which media to use as a means of transmitting the message.

Discuss FOUR factors that may influence the choice of media.

[l.7marksl Total25 marks

4.

(a)

Differentiate between'direct distribution channel'and'indirect distribution channel', giving ONE example of EACH. [ 6 marksl

(b)

Outline TWO factors that may influence the choice of a distribution channel.

[ (c)

6 marks.l

Discuss THREE benefits to a manufacturer of using an intermediary channel.

[13marks]

Total25 marks

GO ON TO THE NEXT PAGE o2233020tCAPE 2009

-4SECTION 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 her business expands, and according to the needs of her situation, she employs more persons to work for her. 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 as a sole

(b)

trader.

[12 marks]

Discuss THREE characteristics that Ruth should possess

entrepreneur.

in order to be a successful [13 marks]

Total25 marks

6.

plan'.

(a)

Define the term 'business

(b)

State THREE reasons why Ruth should have a business

(c)

Discuss FOUR key elements that Ruth should include in her business plan.

t 3 marksl

plan.

[ 6 marks] lL6marksl Total25 marks

END OF TEST

02233020/CAPE 2009