Business Management

UNIT 1 - OUTCOME 1: The Business Idea

Friday 22nd February 2019

5 minutes reading time

45 minutes writing time

The outcome is a written response – you are not permitted any unauthorised materials into the test.

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Grade/Score: ____/25 Satisfactory Completion? S/N: ______

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Assessment Criteria

Criteria H ML NS

Identify business opportunities

Define, describe and apply relevant business management concepts and terms

Acquire, record, interpret and share business information and ideas

Research and analyse case studies and contemporary examples of business management applicable to planning a business

Apply business management knowledge to practical and/or simulated business situations.

Note that each criterion carries equal weight

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Koko Black – brave new world of chocolate beckons

he owner of luxury chocolate retailer Koko Black wants to increase its market share in the chocolate industry. Over the next 4 years, it wants to expand its online business to meet increased demand in Asia. T

Simon Crowe, the owner of Koko Black wants to be more innovative with the chocolate range. He wants to experiment with 3D printing of new chocolate designs. This will help him to view different angles of proposed creations such as new Easter bunny designs.

Last year, Simon Crowe started working with a celebrated local chef, Dan Hunter, to launch a range of handcrafted chocolates made with indigenous Australian ingredients. Unique flavour combinations include Finger Lime, Green ant and burnt butter cream, Strawberry Gum ganache and Passionfruit jelly. Simon Crowe would like to increase his sales revenue from $22 million to $88 million in 4 years.

Koko Black currently has 13 retail stores with plans to open 4 new stores over the next year, including a store at Melbourne Airport. Mr Crowe is considering growing the business to 25 stores over the next 4 years. The business has also introduced an online store in the past year. Mr Crowe believes that there is a ‘gap in the market’ for gifting of chocolate in the Asian market, due to the large number of Asian visitors to Australia.

https://www.kokoblack.com/pages/whats-new

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InstructionsAnswer all questions in the spaces provided.

Question 1 (2 marks)

Define business concept development and explain one benefit for a business of developing a business concept.

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Question 2 (2 marks)

Explain how Koko Black will take advantage of market opportunities.

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Question 3 (5 marks)

Mr Crowe has a goal to increase the number of stores.

a. Define a goal. 1 mark

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b. Outline two features of Locke and Latham’s goal setting theory and explain the importance of each feature in achieving this goal. 4 marks

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Question 4 (3 marks)

With reference to two Koko Black examples, describe innovation.

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Question 5 (2 marks)

Describe two ways that Koko Black could conduct an initial feasibility study.

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Question 6 (4 marks)

Propose and justify two contributions that Koko Black could make to the economic or social wellbeing of the nation.

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Question 7 (7 marks)

Mr Crowe demonstrates the characteristics of an entrepreneur.

a. Define an entrepreneur 1 mark

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b. Describe two entrepreneurial characteristics that Mr Crowe would use when expanding his business. 4 marks

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c. Suggest one personal motivation for Mr Crowe starting this business, explaining how this motivation could contribute to his business success.

2 marks

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Extra space

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