Higher Business Management Course Specimen Question ... - SQA

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SECTION ONE SOLUTIONS Marks 1. Identify the problems faced by GSK and its employees. Use the following headings. (Please identify problems only, solutions will not be credited.) • Human Resources • Operations • External Factors 10 Human Resources Job losses affecting employees. Little support from Trade Union. Getting employees to accept change when new system was introduced. Cheaper labour abroad makes it more likely for production to be transferred abroad. Cost of redundancy payments to GSK. Operations Patents running out on products. Lack of orders or new products at Montrose. Different processes operated in different sites proved difficult to control. Product contains CFCs. Uneconomic production at Montrose. External Few opportunities available for employment in Montrose area. Changed economic circumstances in pharmaceutical industry. Trade Union anger at Executive’s salary. Possible legal action from USA. Difficult to enforce Patents abroad. Dutch Chemical Group pulling out of deal. Maximum 4 marks per heading [C010/SQP283] 16 Page two
2. (a) Describe the features of the purchasing mix which affect a manufacturer’s choice of supplier for raw materials. Marks 6 The supplier which offers the best terms will be chosen. Is the supplier able to supply the desired quality (consistently)? Is the supplier able to supply the quantities which will be required? Can the supplier meet the required delivery dates? Is the supplier likely to remain in business? Can the supplier be relied on to deliver when they have promised to do so? Is the price acceptable? Are discounts available? Is credit available? Is delivery/insurance chargeable? (b) Just in Time stock control may be used by manufacturers wishing to solve problems of lack of space and lack of working capital. Explain the disadvantages of this method of stock control. 5 The system depends heavily on having a reliable supplier. If goods are not delivered, production may be held up. If production is stopped or held up, sales may be lost. Reduced opportunity to check materials for quality on arrival. Increased ordering and administration costs if more frequent ordering occurs. Loss of bulk buying discounts. Increased delivery costs if more frequent deliveries are required. . [C010/SQP283] 17 Page three
Page 1 and 2: C010/SQP283 Business Management Hig
Page 3 and 4: The questions will ask candidates t
Page 5 and 6: Part 2 This part of the Course Asse
Page 7 and 8: C010/SQP283 Business Management Hig
Page 9 and 10: THE PRODUCTS GSK produce bulk chemi
Page 11 and 12: QUESTIONS Marks You should note tha
Page 13 and 14: 3. A toy manufacturer on looking at
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Page 19 and 20: 5. Decentralised decision making to
Page 21 and 22: 7. Donating money to charity is an
Page 23 and 24: (c) Car manufacturers frequently al
Page 25 and 26: (b) Organisations frequently make c
Page 27 and 28: (b) The manufacturer’s Cash Budge
Page 29 and 30: (c) Improving efficiency is one pos
Page 31 and 32: (c) Justify the use of each of the

Higher Business Management Course Specimen Question ... - SQA

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