MOB Unit 2 Past Papers

(a)1.

a-L-

SECTION A

MODULE IPRODUCTION AND OPERATIONS MANAGEMENT

Answer ONE question from this section.

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

(i) Competitors'behaviour(ii) Technology(iii) Management(iv) Financial viability [ 8 marks]

When designing any product, a number of features have to be considered by the designeror design team.

(i) What is a Product Design Brief? [ 2 marks](ii) Identify FIVE main features of a Product Design Brief and explain why each is

important in designing a new product. [15 marks]Total25 marks

(b)

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(a)2. Sure Cement Manufacturing Company uses a flowincorporation in 1999.

(i) Define flow production.

production system since its

State THREE main features of a flow production.

I lmark ][ 3 marks]

Discuss THREE advantages and THREE disadvantages of the flow production

(ii)(iii)

(b)

system. lL2 marksl

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

Tasks Order/Dependency Estimated Time(weeks)

A

B

C

D

E

F

G

H

I

Must be done first

Can only start when A is completed

Can only start when A is completed

Can only start when B is completed

Can only start when C is completed

Can only start when F. is completed

Must wait for D and E to be completed

Can only start when F is completed

Must wait for G and H to be completed

4

5

4

6

8

5

8

5

7

[ 9 marks]Total25 marks

Draw a network diagram to represent these activities.

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3.

4.

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SECTION B

MODULE 2

FUNDAMENTALS OF MARKETING


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

As a Management of Business student, you are asked to write on the topic "How a producerdecides 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 ofchannel(s).

The Product

The Market

The Company

(a) (i) Define 'channel' of distribution. I lmark][ 6 marks](ii) Describe TWO major types of distribution channels.

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

Total25 marks

(b)

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SECTION C

MODULE 3

SMALL BUSINESS MANAGEMENT


John Jones is an expert on preparing delicious chicken. He is thinking of settingjerk chicken business as a sole trader enterprise, and has approached you for advice.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]

THREE challenges he may face as an entrepreneur. [3 marks]Two reasons why he may need to conduct a market feasibility study. [4 marks]THREE factors which may influence the pricing of his product. [6 marks]TWO ways in which he may promote his product. t2 markslTwo factors that may influence the location of his business. [4 marks]

upaAsa

(b)

(c)

(d)

(e)

(o

6.

Total25 marks

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 apre-requisite for the loan.

Mary has no idea what a business plan is and has approached you for advice. You are requiredto:

(a)

(b)

(c)

(d)

(e)

Explain to her what a business plan is. I l mark ]outline Two reasons for the importance of such a plan. [ 4 marks]outline FIVE steps in the preparation of a business plan. [10 marks]Explain TWO legal requirements Mary will have to observe in setting up her business.

[ 4 marks]Suggest THREE ways in which Technology could assist Mary in efficiently operatingherbusiness. [ 6marks]

Total25 marks

02233020/CAPE 2004

END OF TEST

,}_$

t

1.

SECTION A

MODULB 1

PRODUCTION AND OPERATIONS MANAGEMENT


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

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

Explain TWO strengths and TWO weaknesses of customer surveys compared to least

(a)

(b)

(c)

(a),

(b)

squares regression as methods of forecasting.

Recommend and justify a forecasting method to Mr. Knowles.[ 8 marks]


Productivity and Total Quality Management (TQM) appear to be closely related con-cepts. With the aid of an example, distinguish between the TWO concepts and explainbriefly how they are related. [ 6 marks]Discuss ONE way in which EACH of the following factors may impact on the level ofproductivity and TQM, in a large cement plant:

(i) Supervisory skills(ii) Labour-management relations(iii) Continuousemployeetraining ll9marksl

Total25 marks

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(a)3.

(b)

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.SECTION Bi

MODULB 2



Define the term "qegmentation".

State THREE benefits of segmentation.

[ 2 marks][ 3 marks]

(c)

Carib Flavors is developing the marketing strategy for a new drink called Orbit, a non-alcoholic, glucose-based energy drink containing ginseng. Management believes thatthe market for this drink can be segmented in terms of demographics and psychographicsfor better targeting.

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

Total25 marks

Regional Seminars Inc. is a small event management company in the process of developingseveral new workshops in personal development for the general public. Management hasdecided to conduct a survey to answer the question: Would a sufficient number of personspatronize the workshop.sZ Managements is trying to decide whether to use probability or non-probability sampling to select respondents for the survey. Since it has six weeks to do thisresearch and a limited budget, the company has narrowed the choices down to systematicrandom sampling and convenience sampling.

(a) Define the term "sampling" and distinguish between "probability sampling" and "non-probability sampling." [ 6 marks]

(b) Define the terms "convenience sampling" and "systematic random sampling" and ex-plain how EACH might be used to select respondents. [2marks]

(c) Indicate which of the two types of sampling in (b) above management should use andjustify your answer. [ 7 markslTotal25 marks

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GO ON TO THE NEXT PAGE

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SECTION C

MODULE 3



5. .., Eric has been a well-respected chef for some years and now wishes to set up a small business.

.,h\(,,rl

_,.'n (a) Identify FIVE factors that Eric Tll-s-t Eqllrider if his business is to succeed.dfr''r/","\ 1 r lsmarksl

' ^y'' ,

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-

( ril' ; (b) Discuss the$pact of daCrr of the factors identified in 5 (a) above on the success of.]./ *r i. Eric's business. o ., r r /,- r-.r , -- n*.*J t20 marksl

Lo .i' \.. ]' {r-' \''

-

!.

-' r+ Total 25 marks

)[' i c': i,/('

6. , '(q)r, Discuss TWO main contributions of small businesses to the development of your,d country's economy. [0marks]/

(b) (i) Discuss THREE difficulties faced by small business in the Caribbean.(ii) Suggest ONE way in which EACH difficulty identified in 6 (b) (i) above may

be overcome. [15 marks]

Total25 marks

END OF TEST

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o2233020tCAPE 2006

ri

-2-

SECTION A

MODULE 1: PRODUCTION AND OPERATIONS MANAGEMENT


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 willinfluence the design and prodrction of the blender:

(a) Features(b) Reliability(c) Durability(d) Serviceability Tot^125 marks

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

Activity Description PrecedingActivities

Duration(Weeks)

A Sign up artistes None 3B Book venue A IC Obtain sponsorship A 4D Design advertising materials A 5E Print Tickets C,D 4F Sell Tickets B 3G Place advertising D 4H Pay for venue E 2I Hold event G,H I

(a)

o)(c)

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

[1] marks] |Calculate the duration of the project. t 4 markslDefine the term "critical path" and identify the critical path of the project.

[ 4 marks]

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F(d)

-3-

Define the following terms, in relation to network diagrams:

(i) Early StartTime(ii) Late Finish Time(iii) Total float

[ 2 marks][ 2 marks][ 2 marks]

Total25 marks

3. (a)

SECTION B

MODULE 2: FT,]NDAMENTALS OF MARKETING


Define EACH of the following marketing concepts

(D Branding(ii) Pricing(iii) Distribution channels(iv) Advertising

t 8 markslOne River Foods is a Caribbean company operating in Sunset Isle which markets avariety of food products under the One River brand name. The company plans tointroduce a new line of cornflakes to the island in three months.

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

(ii) For EACH concept, indicate which strategy is better, giving ONE reason foryour choice.

U.7 marksl

Total25 marks

o)

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TI

4-

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

(i) Primary versus secondary sources of data(ii) Probabilityversusnon-probabilitysampling(iii) Focus groups versus surveys

(a) Differentiate between the above pairs of options outlining one advantage and one dis-advantage of one option over the other.

(b) For EACH pair of options, indicate which one the company should choose, giving ONEreason for your choice.

Total25 marks

SECTION C

MODULE 3: SMALL BUSINESS MANAGEMENT


CASE STIJDYMAKING 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. Theyhad recently moved into a small district, called "Peaceville", comprising mainly of middle-agedwomen who spent most of their time going to church, the supermarket and back home. Thesmall number of young adults would spend most of their time at work and getting involved insocial activities in the church. Most business places are usually closed by 8 p.m. except for afew night pubs which are usually frequented by older men. This district can almost bedescribed as a retirement community. Both girls are thinking of setting up their business in asmall shoppingplaza in the communify and they are quite excited since their business will bethe 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 fromthe local bank, which is the only one in the community.

(a) Explain what is meant by a 'partnership'. [ 2 marks](b) Suggest to Sandy and Shelley, FTVE main provisions that they could include in theirpartnershipdeed. [ Smarks]

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(c)

(d)

(e)

(o

-5-

outline Two disadvantages of forming a partnership business. [ 4 marks]Identify THREE major challenges that Sandy and shelley may face as youngentrepreneurs. [ 3 marks]Outline ONE way in which market demand would affect S & S Enterprise.

[ 2 marks]be important for Sandy and Shelley totheir new business venture.

[ 9 marks]Discuss THREE main reasons why it wouldconduct market research before embarking on

6.

Total25 marks

(a) Mary Cook-Well, the owner of a small restaurant, is unsure of the reasons for updatingher business plan on a yearly basis. Outline THREE possible advantages to be gainedby Mary from engaging in such a practice. [ 6marks]Mr. Want-Money is a very opinionated middle-aged man who loves to make decisionson his own. He is thinking of setting up an auto-parts business. He has no realexperience as to how to set up or manage such a business. You are to advise him on thefollowing:

(i) THREE important factors he must consider when deciding on a location for hisbusiness [ 6 marks](ii) ONE main reason he should start a sole trader business rather than aPartnership [ 3 marks](iii) 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 auto-

parts business instead of starting a new one [ 4 marks]Total25 marks

(b)

END OF TEST

02233020/CAPE2007

I.,

SECTION A

MODULE 1: PRODUCTIONAND OPERATIONS MANAGEMENT


1. 'Where to produce' is a major production decision. The Misty Blue Beverage Company makesa 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 tenitoryto locate.

(a) Market demandO) Intensity of competition(c) Government regulations(d) Availability of raw materials(e) Supply of labour [25 marksl

Total25 marks

(a) Discuss TWO ways in which productivity is important to EACH of the following:2.

(b)

(i) Businesses(ii) Unions(iii) GovernmentOutline TWO strategies that can be used to improve productivity.

[19 marks]


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\-3-

SECTION B

MODULE 2: FUNDAMENTALS OF MARKETING


3. Ethnic Garb is a Caribbean company which operates in Coco Isle and markets a variety ofcasual clothing. Currently the line of clothing is not branded. The company plans to introduceits line of clothing to one of the larger Caribbean islands in three months.

(a) Define EACH of the following marketing strategies:(i) Branding(ii) Penetration pricing(iii) Direct distribution channel(iv) Advertising [Smarks]

(b) Outline ONE advantage and ONE disadvantage of using EACH of the marketingstrategies 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 GiftsUnlimited, a small Caribbean manufacturer of ornaments and gifts. The company wants toinvestigate buyer motivations, frequency of purchase and amount purchased per occasion.

(a) (i) Outline the main difference between primary data and secondary data, givingONE advantage of EACH type of data.

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

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

Total25 marks

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7-4

5.

SECTION C

MODULE 3: SMALL BUSINESS MANAGEMENT


Miss Pretty is thinking of starting a small business specializing in female clothing. Herbrother, a business consultant, has suggested that she should do market research beforeinvesting in such a business.

(a)

(b)

Discuss FOUR ways in which market research is advantageous to a small business.[L6 marks]

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

Total25 marks

Outline FOUR challenges that a young entrepreneur may face in the 'start-up' phaseof a small business and suggest ONE solution to EACH challenge outlined.

[16 marks]

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

Total25 marks

END OF TEST

(a)

(b)

6.

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II

I

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I

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o2233020tCAPE 2008

7l.-'I

t"

1.

.2-SECTION AMODULE 1 .

PRODUCTION AND OPERATIONS MANAGEMENTAnswer ONE question from this section.

Intensified global competition has been a major factor behind management's sharpened interestin quality management and control.(a) (D Explain what is meant by 'Total Quality Management'.

(ii) Discuss ONE implication of Total Quality Managementfollowing:. Employees' Product/process design: s#:il:J.

(b) Outline THREE circumstances under which Total Qualitymay fail to achieve overall organizational objectives.

[ 3 marks]for EACH of the., aA-r

[16marks]Management programmes

[ 6 marks]

Overtime

Lai4/^

(a)2.

(b)

Total25 marks

Forecasting serves as the basis for planning.

Outline THREE advantages and THREE disadva4tages of the Delphi method as aforecasting technique. @ "4) tl2markslMr. Opportunity is thinking of investing in a garment factory.

The decision tree below shows the alternatives available to Mr. Opportunity if hedecides to build a large factory or a small factory.

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D9

ufldI,:rSe\

(6)

m*oo94&biDD-".n_nd(O\

s70

(i)

(ii)

Using the decision tree, sequentiulfy *ily=+bg d_qglg{t Mr. Opportunity needsto make at EACH step. - 4:'

-

[ I marks]' /'*'

Calculate thqhifhest expected value for building=:___,a) a small factolf ----'..

b) alargefactory. [4marks]Determine which alternative Mr. Opportunity must choose if he is to maximizeexpected monetary returns. I L mark]

Total25 marksGO ON TO THE NEXT PAGE

(iii)

o2233020lCAPE 2009

3.

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SECTION B

MODULE 2



(a) Differentiate between 'informative advertising'and 'persuasive advertising', stating ONEsituation in which EACH would be MOST effective. [ 8 marks]One major advertising decision is determining which media to use as a means of trans-mitting the message.

Discuss FOUR factors that may influence the choice of media. [l.7markslTotal25 marks

(b)

4. (a)

(b)

(c)

Differentiate between'direct distribution channel'and'indirect distribution channel',giving ONE example of EACH. [ 6 markslOutline TWO factors that may influence the choice of a distribution channel.

[ 6 marks.lDiscuss THREE benefits to a manufacturer of using an intermediary channel.

[13marks]Total25 marks

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-4-

SECTION C

MODULE 3



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 herbusiness expands, and according to the needs of her situation, she employs more persons to work forher. 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(b)

as a sole trader. [12 marks]Discuss THREE characteristics that Ruth should possess in order to be a successfulentrepreneur. [13 marks]

Total25 marks

Define the term 'business plan'. t 3 markslState THREE reasons why Ruth should have a business plan. [ 6 marks]Discuss FOUR key elements that Ruth should include in her business plan.

lL6marksl

Total25 marks

END OF TEST

6. (a)(b)

(c)

02233020/CAPE 2009

MOB Unit 2 Past Papers

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Transcript of MOB Unit 2 Past Papers