MOB Unit 2 Past Papers

(a) 1. a -L-SECTION

A

MODULE

I

PRODUCTION AND

OPERATIONS

MANAGEMENT

Answer ONE question

from

this section.

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)

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 designer or 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)

02233020{CAP8 2004

(a)

2. Sure Cement Manufacturing Company uses

a flow

incorporation

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 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

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.

0223302A|CAP82004

3. 4.

-4-SECTION B

MODULE

2

FUNDAMENTALS

OF

MARKETING

Answer ONE question

from

this section.

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]

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)

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

of

a distribution channel for a

producer.

_[18

marks]

Total25

marks

(b)

o2233020lCAPE 2004

-5-SECTION 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

jerk

_{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

_marksl

Two

factors that may influence the location of his

business.

_[4

marks]

upa

Asa

(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 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: (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 operating

herbusiness.

_[

_6marks]

Total25 marks

02233020/CAPE 2004

,} _$ t 1. SECTION

A

MODULB

1

PRODUCTION AND

OPERATIONS

MANAGEMENT

Answer ONE question

from

this section.

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 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]

[

5

marks]

Total25

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 explain

briefly how they are

related.

_[

6

marks]

Discuss ONE way in which EACH of the following factors may impact on the level

of

productivity and TQM, in a large cement plant:

(i)

Supervisory skills

(ii)

Labour-management relations

(iii)

Continuousemployeetraining

_ll9marksl

Total25

marks

02233020|CAPE 2006

(a) 3. (b)

-3-.SECTION B i

MODULB

2

FUNDAMENTALS

OF

MARKETING

Answer ONE question

from

this section.

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 that the market for this drink can be segmented in terms of demographics and psychographics for better targeting.

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

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

non-probability 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}

"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 and

justify

your

answer.

_[

7

marksl

Total25

marks

02233020/CAPE 2006 4.

-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 \(

,,rl

_{_,.'n}

(a)

_{Identify FIVE factors that Eric}

Tll-s-t Eqllrider

if

his business is to succeed.

dfr''r/","\

₁

_r

lsmarksl

'

^y'' ,

'

,

-.

-? f,lo:,'''ic

tsl#Le

-

( 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

t

ilil]il||lilililll

836255 o2233020tCAPE 2006

r

_i

-2-SECTION

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

Tot^125 marks

2.

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

Duration (Weeks)

A

Sign up artistes None 3

B Book venue

A

I

C Obtain sponsorship

A

4

D Design advertising materials

A

5

E 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

(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

marksl

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

[

4

marks]

o2233020tCAPE 2007

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

Answer ONE question

from

this section.

Define EACH of the following marketing concepts

(D

Branding

(ii)

Pricing

(iii)

Distribution channels

(iv)

Advertising

t

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

o)

02233020|CAPE 2007

T

I

4-4. 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)

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 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)

Explain what is meant by a

'partnership'.

_[

2

marks]

(b)

Suggest to Sandy and Shelley, FTVE

main

provisions that they could include in their

partnershipdeed.

_[

Smarks]

o2233020tCAPE 2007

(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 young

entrepreneurs.

_[

3

marks]

Outline ONE way in which market demand would affect S

&

S Enterprise.

[

2

marks]

be important

for

Sandy and Shelley to their new business venture.

[

9

marks]

Discuss THREE

main

reasons

why

it

would

conduct market research before embarking on

6.

Total25

marks

(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]

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)

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

business

_[

6

marks]

(ii)

ONE

main

reason

he should start

a

sole trader

business

rather than

a

Partnership

_[

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

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

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

2.

(b)

(i)

Businesses

(ii)

Unions

(iii)

Government

Outline TWO strategies that can be used to improve productivity.

[19

marks]

[

6

marks]

Total25 marks

02233020|CAPE 2008

\

-3-SECTION

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)

Branding

(ii)

Penetration pricing

(iii)

Direct distribution channel

(iv) Advertising

_[Smarks]

(b)

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)

(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

(b)

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

o2233020tCAPE 2008

7

-4

5.

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.

(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 research

for her proposed

business.

_t

9

marksl

Total25

marks

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]

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

(a) (b) 6.

-

--I I I

-I I r c-l 6 co m

11

o2233020tCAPE 2008

7

l.-'

I t" 1.

.2-SECTION

A

MODULE

1

.

PRODUCTION AND

OPERATIONS

MANAGEMENT

Answer ONE question

from

this section.

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

(a) (D

Explain what is meant by 'Total Quality Management'.

(ii)

Discuss

ONE implication

of

Total Quality

Management

following:

.

Employees

'

Product/process design

:

s#:il:J.

(b)

Outline THREE circumstances under which _{Total Quality}

may

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 a

forecasting

technique.

_{@ "4)}

tl2marksl

Mr. Opportunity is thinking of investing in a garment factory.

The decision tree below shows the alternatives available

to Mr.

Opportunity

if

he decides to build a large factory or a small factory.

1pJJ94

MO_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 needs to 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 maximize

expected monetary

returns.

I

L

mark]

Total25

marks

GO ON TO THE NEXT

PAGE

(iii)

3.

-3-SECTION B

MODULE

2

FUNDAMENTALS

OF

MARKETING

Answer ONE question

from

this section.

(a)

Differentiate between 'informative advertising'and 'persuasive advertising', stating ONE situation 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.7marksl

Total25

marks

(b)

4.

(a)

(b)

(c)

Differentiate between'direct distribution

channel'and'indirect

distribution channel',

giving ONE example of

EACH.

_[

6

marksl

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

[

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

[13marks]

Total25 marks

o2233020tCAPE 2009

-4-SECTION

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 (b)

as a sole

trader.

_[12 marks]

Discuss THREE characteristics that Ruth should possess

in

order to be a successful

entrepreneur.

[13 marks]

Total25 marks

Define the term 'business

plan'.

_t

3

marksl

State 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