Question 1
Question 1(c)
(a)
Analyse the advantages and disadvantages for G P of using a SWOT analysis.
[ 7 ]
IB Business Management SL 6.1 Business management tools Question Bank
Question 1
[Maximum number: 2]
1. Las Migas
Carolina plans to set up a bakery, Las Migas, in a small town. Competition from established bakeries is strong. Carolina has asked for a bank loan because her personal savings are insufficient. The bank manager requested the following information:
- a business plan
- a cash flow forecast for the first four months of operations.
Carolina has no experience with financial forecasts but she estimated the figures for Las Migas for the first four months of operations. These figures are shown in Table 1.
Table 1: Estimated figures for Las Migas for the first four months of operations
Question 1(a)
(a)
State two elements, other than a cash flow forecast, of a business plan.
[ 2 ]
Question 1
[Maximum number: 4]
1. Nzuri Kio (NK)
Nzuri Kio ( N K ) is a company that manufactures products made of glass, such as windows and table tops. NK sells its products in its own regional trading bloc, a group of eight countries that all have developing economies. NK is located in a poor country where the national government is not very efficient and public sector services are limited. The country's infrastructure needs investment, and quality of life is low. At school, students are in very big classes, with over sixty students in each; few students complete middle school.
The manager of N K is considering purchasing new, high-quality equipment for its factory: glass-making machines from Carrucci SpA. Carrucci SpA is an Italian company that makes the best glass manufacturing equipment in the world. Its computerized equipment is innovative and very efficient. Glass can be cut perfectly, with almost no waste. However, the equipment is expensive and requires highly skilled workers. The new equipment would lead to a better product, which should result in higher sales and a higher gross profit margin.
The total cost of the equipment is $ 800000. NK is considering two different sources of finance:
- (Option A) a seven-year $720000 bank loan.
- (Option B) selling $ 800000 in shares.
Financial information for N K, for the year ending 31 May 2014:
Question 1(a)
(a)
Using a PEST framework, describe two external factors that may affect N K.
[ 4 ]
Question 2
Question 2(a)
(a)
Outline two STEEPLE factors that have influenced D A 's business strategy.
[ 4 ]
Question 2
[Maximum number: 2]
Fru-Yo (FY)
Fru-Yo (FY) produces premium-priced yoghurts. FY has strong brand loyalty and relies only on word-of mouth promotion. FYs target market is consumers who may have health problems.
FY created two new zero-sugar fruit yoghurts. FY did no market research into the new yoghurts but is confident that FYs brand loyalty will ensure success. The market constantly changes because competitors regularly introduce new healthy yoghurts.
Table 2 shows forecasted financial information for the two new zero-sugar fruit yoghurts, Yoghurt A and Yoghurt B.
Table 2: Forecasted financial information for FY's new zero-sugar fruit yoghurts
Question 2(b)
(a)
Using Table 2:
[ 2 ]
Question 2(b)(iii)
(i)
calculate the mean value of Yoghurt A's forecasted returns once on market (years 1-4) (show all your working).
[ 2 ]
Question 2
Question 2(a)
(a)
Using a SWOT analysis framework, identify two weaknesses and two threats to R D B.
[ 4 ]
Question 2
Question 2(c)
(a)
Analyse the impact that one opportunity and one threat may have on The Imperial.
[ 7 ]
Question 3
Question 3(b)
(a)
With reference to STEEPLE factors, explain changes in the external environment that may have affected SVT (lines 20-21).
Answer the following question.
[ 6 ]
Question 3
Question 3(a)
(a)
Describe two changes in the external environment that have affected RDM.
[ 4 ]
Question 3
Question 3(a)
(a)
Outline two STEEPLE factors that influence P U 's decisions.
[ 4 ]