CAPE Management of Business 2006 U2 P2

TEST CODE 02233020
FORM TP 2006255 MAY/JUNE 2006
CARIBBEAN EXAMINATIONS COUNCIL
ADVANCED PROFICIENCY EXAMINATION

MANAGEMENT OF BUSINESS
UNIT 2 - PAPER 02
2V2 hours
c
( 05 JUNE 2006 (p.m.))
INSTRUCTIONS TO CANDIDATES
l. This paper consists of THREE sections.
2. Each section consists of TWO questions.
3. Candidates MUST answer ONE question from EACH section.
4. Each question is worth a total of 25 marks.
5. The overall total for Paper 02 is 75 marks.
Copyright © 2004 Caribbean Examinations Council ®

All rights reserved.
0223 3020/CAPE 2006
- 2 -
SECTION A
MODULE 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 local
market in Blackberry Isle. The Production Manager, Mr. Knowles, has not iced a shortage of
carcasses on several occasions and has decided to institute a system of forecasting to overcome
the prob lem. He wants to know which of the two methods of forecasting: least squares regres-
sion 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.
[12marks]
(b) Explain TWO strengths and TWO weaknesses of customer surveys compared to least
squares regression as methods of forecasting. [ 8 marks]
(c) Recomme nd and justify a forecasting method to Mr. Knowles. [ 5 marks]
Total 25 marks
2. (a) Producti vity 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
briefl y how they are related. [ 6 marks]
(b) Discuss ONE way in which EACH of the fo llowing factors may impact on the level of
productivity and TQM in a large cement plant:
(i) Supervisory skills
(ii ) Labour-management relations
(iii ) Continuous employee training [19marks]
Total 25 marks
GO ON TO THE NEXT PAGE

02233020/CAPE 2006
- 3 -
SECTIONB
MODULE2
FUNDAMENTALS OF MARKETING
3. (a) Define the term "segmentation". [ 2 marks]
(b) State THREE benefits of segmentation. [ 3 marks]
Carib Flavors is developing the marketing strategy for a new drink called Orbit, a non-
alcoholic, glucose-based energy drink containing ginseng. Management bel ieves that
the market for this drink can be segmented in terms of demographics and psychographies
for better targeting.
(c) Select, explain and justify how TWO demographic and TWO psychographic variables
may be used to segment the market for this new drink. [20 marks]
Total 25 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 workshops ? 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. [12 marks]
(c) Indicate which of the two types of sampling in (b) above management should use and
justify your answer. [ 7 marks]
Total 25 marks
GO ON TO THE NEXT PAGE

02233020/CAPE 2006
- 4 -
SECTION C
MODULE3
SMALL BUSINESS MANAGEMENT
5. Eric has been a well-respected chef for some years and now wishes to set up a small business.
(a) Identify FIVE factors that Eric must consider if his business is to succeed.
[ 5 marks]
(b) Discuss the impact of EACH of the factors ide ntified in 5 (a) above on the success of
Eric's business. [20 marks]
Total 25 m a rks
6. (a) Disc uss TWO main contributions of small businesses to the development of your
country's economy. [10 marks]
(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]
Total 25 marks
ENDOFTEST
02233020/CAPE 2006

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TEST CODE 02233020

FORM TP 2006255 MAY/JUNE 2006

CARIBBEAN EXAMINATIONS COUNCIL

ADVANCED PROFICIENCY EXAMINATION

l. This paper consists of THREE sections.

2. Each section consists of TWO questions.

3. Candidates MUST answer ONE question from EACH section.

4. Each question is worth a total of 25 marks.

5. The overall total for Paper 02 is 75 marks.

Copyright © 2004 Caribbean Examinations Council ®

PRODUCTION AND OPERATIONS MANAGEMENT

Answer ONE question from this section.

(c) Recomme nd and justify a forecasting method to Mr. Knowles. [ 5 marks]

(i) Supervisory skills

(ii ) Labour-management relations

(iii ) Continuous employee training [19marks]

GO ON TO THE NEXT PAGE

Answer ONE question from this section.

3. (a) Define the term "segmentation". [ 2 marks]

(b) State THREE benefits of segmentation. [ 3 marks]

GO ON TO THE NEXT PAGE

SMALL BUSINESS MANAGEMENT

Answer ONE question from this section.

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