CERTIFICATE IN BUSINESS MANAGEMENT 2016 Instructions to candidates - - PDF document

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CERTIFICATE IN BUSINESS MANAGEMENT 2016

Instructions to candidates

You are allowed three (3) hours to answer this question paper. You are strongly advised to carefully read ALL the question requirements before attempting the question. Paper consists of SEVEN (7) questions. Answer Question 1 – COMPULSORY. Answer ANY THREE (3) other questions of your choice. Answers for Question 1 should be written on the question paper itself. Answers for other questions should be written in the answer book. Formula sheet(s) will be provided to you as a separate hand-out. Use of a non-programmable calculator is permitted. Marks for each question are shown in [ ] Write your candidate number, course name, full name and date in the spaces provided on the front of the answer book. Candidate No. Candidate Name Date

Page 2 of 12 Question 1 – Compulsory Answer ALL questions (a-h) Using the information in the following paragraphs answer the questions below: a) Starbucks: Managing Internationally Starbucks sells coffee, pasties, confectionery and coffee related accessories through over 18,000 retail stores – about 13,000 in the United States and 5,000 in more than 50 countries. The company’s managers adapted the business to local tastes – such as offering curry puffs and meat buns in Asia where people prefer to eat something while having coffee. State three (3) elements of the external business environment and describe its impact on Starbucks in overseas markets. [5 marks] …………………………………………………………………………………………………………… …………………………………………………………………………………………………………… …………………………………………………………………………………………………………… …………………………………………………………………………………………………………… …………………………………………………………………………………………………………… …………………………………………………………………………………………………………… …………………………………………………………………………………………………………… …………………………………………………………………………………………………………… …………………………………………………………………………………………………………… …………………………………………………………………………………………………………… …………………………………………………………………………………………………………… …………………………………………………………………………………………………………… …………………………………………………………………………………………………………… …………………………………………………………………………………………………………… …………………………………………………………………………………………………………… …………………………………………………………………………………………………………… …………………………………………………………………………………………………………… …………………………………………………………………………………………………………… …………………………………………………………………………………………………………… ………………………………………………...………………………………………………………… …………………………………………………………………………………………………………… ………………………………………………...………………………………………………………… …………………………………………………………………………………………………………… …………………………………………………………………………………………………………… ………………………………………………...………………………………………………………… …………………………………………………………………………………………………………… …………………………………………………………………………………………………………… ………………………………………………...………………………………………………………… …………………………………………………………………………………………………………… …………………………………………………………………………………………………………… ………………………………………………...………………………………………………………… …………………………………………………………………………………………………………… …………………………………………………………………………………………………………… ……………………………………………………………………………………………………………

Page 3 of 12 b) Kellogg’s: Building a better workplace through motivation Kellogg’s is the world’s leading producer of breakfast cereals. It is committed to creating a 'great place to work' by offering competitive salaries, providing a safe and healthy work environment to prevent accidents and promoting team-sprit. Kellogg's positively recognises and rewards staff achievements and provides employees with the opportunity to take on challenging and stimulating responsibilities. Describe the concept of motivation and Maslow’s hierarchy of needs theory for Kellogg’s. [5 marks] …………………………………………………………………………………………………………… …………………………………………………………………………………………………………… …………………………………………………………………………………………………………… …………………………………………………………………………………………………………… …………………………………………………………………………………………………………… …………………………………………………………………………………………………………… …………………………………………………………………………………………………………… …………………………………………………………………………………………………………… …………………………………………………………………………………………………………… …………………………………………………………………………………………………………… …………………………………………………………………………………………………………… …………………………………………………………………………………………………………… …………………………………………………………………………………………………………… …………………………………………………………………………………………………………… …………………………………………………………………………………………………………… …………………………………………………………………………………………………………… …………………………………………………………………………………………………………… …………………………………………………………………………………………………………… …………………………………………………………………………………………………………… …………………………………………………………………………………………………………… …………………………………………………………………………………………………………… …………………………………………………………………………………………………………… …………………………………………………………………………………………………………… …………………………………………………………………………………………………………… …………………………………………………………………………………………………………… …………………………………………………………………………………………………………… …………………………………………………………………………………………………………… …………………………………………………………………………………………………………… …………………………………………………………………………………………………………… …………………………………………………………………………………………………………… …………………………………………………………………………………………………………… …………………………………………………………………………………………………………… ………………………………………………...………………………………………………………… …………………………………………………………………………………………………………… …………………………………………………………………………………………………………… ………………………………………………...………………………………………………………… …………………………………………………………………………………………………………… …………………………………………………………………………………………………………… ……………………………………………………………………………………………………………

Page 4 of 12 c) Facebook: Culture Having great company culture is no longer just an option. Today’s workers consider it as much as they consider salary and benefits. Facebook offers lots of food, open office space, on-site laundry, a focus on teamwork and open communication, a competitive atmosphere that fosters personal growth and learning and great benefits. Briefly explain the meaning of “organisational culture” and its importance to an organisation such as Facebook. [5 marks] …………………………………………………………………………………………………………… …………………………………………………………………………………………………………… …………………………………………………………………………………………………………… …………………………………………………………………………………………………………… …………………………………………………………………………………………………………… …………………………………………………………………………………………………………… …………………………………………………………………………………………………………… …………………………………………………………………………………………………………… …………………………………………………………………………………………………………… …………………………………………………………………………………………………………… …………………………………………………………………………………………………………… …………………………………………………………………………………………………………… …………………………………………………………………………………………………………… …………………………………………………………………………………………………………… …………………………………………………………………………………………………………… …………………………………………………………………………………………………………… …………………………………………………………………………………………………………… …………………………………………………………………………………………………………… …………………………………………………………………………………………………………… …………………………………………………………………………………………………………… …………………………………………………………………………………………………………… …………………………………………………………………………………………………………… …………………………………………………………………………………………………………… …………………………………………………………………………………………………………… …………………………………………………………………………………………………………… …………………………………………………………………………………………………………… …………………………………………………………………………………………………………… …………………………………………………………………………………………………………… …………………………………………………………………………………………………………… …………………………………………………………………………………………………………… …………………………………………………………………………………………………………… …………………………………………………………………………………………………………… …………………………………………………………………………………………………………… …………………………………………………………………………………………………………… ………………………………………………...………………………………………………………… …………………………………………………………………………………………………………… …………………………………………………………………………………………………………… ………………………………………………...………………………………………………………… …………………………………………………………………………………………………………… …………………………………………………………………………………………………………… ……………………………………………………………………………………………………………

Page 5 of 12 d) Google: Corporate structure Google’s success is linked to the effectiveness of its organisational structure in supporting excellence in innovation. Google uses function as basis for grouping employees. For example, the company has a Sales Operations team, an Engineering & Design Team, and a Product Management Team, among others. In addition, the firm’s organisational structure has considerable flatness. Discuss two (2) advantages each of adopting a functional and flat organisational structure at Google. [5 marks] …………………………………………………………………………………………………………… …………………………………………………………………………………………………………… …………………………………………………………………………………………………………… …………………………………………………………………………………………………………… …………………………………………………………………………………………………………… …………………………………………………………………………………………………………… …………………………………………………………………………………………………………… …………………………………………………………………………………………………………… …………………………………………………………………………………………………………… …………………………………………………………………………………………………………… …………………………………………………………………………………………………………… …………………………………………………………………………………………………………… …………………………………………………………………………………………………………… …………………………………………………………………………………………………………… …………………………………………………………………………………………………………… …………………………………………………………………………………………………………… …………………………………………………………………………………………………………… …………………………………………………………………………………………………………… …………………………………………………………………………………………………………… …………………………………………………………………………………………………………… …………………………………………………………………………………………………………… …………………………………………………………………………………………………………… …………………………………………………………………………………………………………… …………………………………………………………………………………………………………… …………………………………………………………………………………………………………… …………………………………………………………………………………………………………… …………………………………………………………………………………………………………… ………………………………………………...………………………………………………………… …………………………………………………………………………………………………………… …………………………………………………………………………………………………………… ………………………………………………...………………………………………………………… …………………………………………………………………………………………………………… …………………………………………………………………………………………………………… ………………………………………………...………………………………………………………… …………………………………………………………………………………………………………… …………………………………………………………………………………………………………… ………………………………………………...………………………………………………………… …………………………………………………………………………………………………………… …………………………………………………………………………………………………………… ……………………………………………………………………………………………………………

Page 6 of 12 e) John Keells Holdings – Recruitment and selection John Keells Holdings employs over 13,000 individuals in 70 businesses. The company practices a simple human resource policy: hire the very best people and develop them to the utmost limits of their potential. John Keells careers offer a choice of career paths, depending

• n the individual’s competence.

Briefly explain two recruitment methods and two selection methods for John Keells

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Page 7 of 12 f) Apple iPhone: Consumer buying process Apple Inc. leads the world through its innovative capabilities. Its iPhone 6S is a smartphone featuring improved hardware specifications, including 3D Touch, upgraded rear-facing and front-facing cameras, and a new rose gold finish in addition to the space gray, silver, and gold finishes found on the previous models, while maintaining an identical design. Describe the steps of consumer buying process in the purchase of a product such as an iPhone. [5 marks]

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Page 8 of 12 g) Briefly explain the following. I. Bank overdraft II. Working Capital [5 marks]

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Page 9 of 12 h) Chegg PLC is in the process of preparing the budgets for the third quarter of 2016. The company sells a single product, QXY at a price of $25 per unit. The estimated sales volume for the next 3 months are as follows. July August September 5,500 6,000 7,000 The budgeted information are as follows. July August September Finished Goods Ending Inventory 500 500 500 Finished Goods Opening Inventory 1000 500 500 Prepare the following budgets. i) Sales Budget (in Dollars) ii) Production Budget (in Units) [5 marks]

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[Total 40 marks]

Page 10 of 12 Answer any THREE (3) questions of your choice. Question 2 a) Explain four basic functions that constitute the management process. [10 marks] b) Briefly explain the different roles (managerial roles) which need to be carried out by the management [10 marks] [Total 20 marks] Question 3 You are expected to make a presentation on the title ‘Economic Systems and Business Organisations” to a group of undergraduates. For this purpose, you are required to make slides with bullet points. Your slides shall include the following: a) The economic systems (i) Different economic systems and their characteristics (3 slides) (ii) Advantages and disadvantages of each economic system (2 slides) [10 marks] b) Different types of business organisations (i) Different types of organisations and their characteristics (3 slides) (ii) Merits and challenges of each type of business organisations (2 slides) [10 marks] [Total 20 marks] Question 4 Using examples, describe the elements of the marketing mix. [20 marks] Question 5 Discuss the nature (meaning) of leadership, two leadership theories and two leadership

• styles. [20 marks]

Question 6 Prepare brief notes on the following. a) Training and compensation [10 marks] b) Corporate Social Responsibility [10 marks] [Total 20 marks]

Page 11 of 12 Question 7 a) Briefly explain the following. (i) Accrual Concept (ii) Dual Aspect Concept (iii) Shareholders’ Funds [6 marks] b) The following information relates to Flam Ltd for the two years ended 31st December 2014 and 2015. Flam Ltd Income Statement for the year ended 31st December Flam Ltd Balance Sheet as at 31st December

2015 2014 $ ’000 $ ’000 $ ’000 $ ’000 Sales (all on credit) 11,750 9,450 Less: Cost of Sales Opening Stocks 1800 1400 Purchases(all on credit) 2900 2,600 Less: Closing Stocks 1600 (6300) 1800 (5800) Gross Profit 5,450 3,650 Less: Expenses (2100) (2,500) Net Profit 3,350 1,150 2015 2014 $ ’000 $ ’000 $ ’000 $ ’000 ASSETS NON-CURRENT ASSETS Land & buildings 4,750 4,100 Motor-vehicles 1,250 6,000 1,100 5,200 CURRENT ASSETS Stocks 1600 1800 Trade Debtors 975 1,100 Other Receivables 200 310 Bank 300 3,075 350 3,560 TOTAL ASSETS 9,075 8,760

Page 12 of 12 Required: Calculate the following accounting ratios for the two years 2015 and 2014 respectively. (i) Gross Profit Ratio (ii) Net Profit Ratio (iii) Return On Capital Employed (iv) Current Ratio (v) Acid Test Ratio (vi) Debtors Collection Period (vii) Creditors Settlement Period [14 marks] [Total 20 marks]

~End of Paper~ EQUITY & LIABILITIES EQUITY Ordinary Share Capital 2,500 2,500 Retained Earnings 3,350 5,850 1,150 3,650 LIABILITIES NON-CURRENT LIABILITIES 10% Loans 1,900 1,900 1,600 1,600 CURRENT LIABILITIES Trade Creditors 760 1,100 Wages Payable 95 350 Bank Overdraft 420 1,650 Electricity Payable 50 410 TOTAL LIABILITIES 1,325 3,510 TOTAL EQUITY & LIABILITIES 9,075 8,760