Business Management Unit 3&4Practice Exam 3Questions

Question 1

Clive Peeters is a high profile retailer of electrical appliances operating nationally in Australia. With 45 stores and over 12,000 staff the company prides itself on excellent customer service and an impressive range of products. However in the last year plunging sales and crippling debt have forced Clive Peeters to appoint an administrator to take charge of the organisation. In August 2009 the company was shocked to discover that an employee had committed fraud to the tune of $20 million dollars. It has recorded its first financial loss in 17 years of operation and is expected to keep losing money over the next 12 months with the company’s future now uncertain. Six stores have already closed and over 75 employees have lost their jobs as share trading on the stockmarket has been suspended.

a. Define the term business ethics and give an example to support your answer.

2 marks

b. Distinguish between corporations and another type of large-scale organisation.

2 marks

Practice Exam 3

c. Discuss both the positive and negative contributions that large-scale organisations like Clive Peeters make to the Australian economy.

4 marks

d. Explain the term external environment and analyse two external pressures that have had an impact onClive Peeters in the last 12 months.

4 marks

Practice Exam 3

e. Identify and describe two performance indicators that Clive Peters could use to evaluate its operations in the last financial year.

4 marks

Harvey Norman is set to take over the problematic Clive Peeters as it continues to dominate the market in electrical and whitegoods.

f. Discuss both driving and restraining forces that would push for this change at Harvey Norman.

6 marksTotal: 22 marks

Practice Exam 3

Question 2

Devondale Dairy Products is the largest cooperative dairy farm in Australia with more than 3000 dairy farmer suppliers situated in different parts of Victoria and New South Wales. The company boast six factories and 26 trading stores in Victoria. All farmer suppliers are shareholders in the company and the directors of the company are elected by fellow farmers.

Devondale is all about tailoring their products to meet changing customer needs. Increased health awareness of consumers has resulted in the introduction of a range of low fat products like Devondale’s lite and tasty cheddar cheese or their reduced fat, extra soft dairy blend table spreads.

The company uses the latest technology to test milk from suppliers and ensures the highest quality manufactured products.

a. Compare and contrast the operations of Devondale Dairy Products to a service organisation like the ANZ Bank. Include the elements of an operation system in your answer.

5 marks

Practice Exam 3

b. Identify and describe two major stakeholders of Devondale Dairy Products.

3 marks

c. Analyse three strategies that the supply farmers could use to increase competitiveness and productivity levels at Devondale Dairy Products.

6 marks

Practice Exam 3

d. How could a change theory like Kotter’s eight step model assist Devondale during periods of change like diversifying into low fat products. In your answer refer to some of the key steps in the model.

4 marksTotal: 18 marks

Question 3

Since 2004 Yarra Trams has been responsible for the operations of the entire Melbourne tram network. They employ over 1800 staff to deliver an efficient service to 178 million passengers each year. They are currently seeking to recruit skilled tram drivers as they expand their delivery of service to the people of Victoria. Mosaic Recruitment is used to screen applicants who need to submit an application online. Some of the job specifications include the need to be medically fit, a minimum of two year’s vehicle driving experience witha full Victorian Driver’s Licence and to have good interpersonal and customer service skills. Yarra Trams prides itself on supporting the community and has been a major charity partner for the Royal Children’s Hospital Good Friday Appeal and has established a website to sell Jake toys with all proceeds going to the appeal. They sponsor a number of community events including the Australian Open and are becoming more environmentally friendly with the establishment of green depots that are all about reducing the impact on the environment through the recycling of water and the establishment of rain gardens.

a. Define the following terms:i. Efficiency

ii. Job specifications

2 marks

Practice Exam 3

b. Analyse two different methods of external recruitment that Yarra Trams could use to attract a pool of applicants to fill the tram driver vacancies.

3 marks

c. Select two management practices and process used in the establishment phase of the employment cycle.Discuss how these practices can ensure that the right person is selected to fill the vacancy and the consequences to the organisation if this is not done correctly.

Practice Exam 3

8 marks

d. Why is work/life balance an important consideration for the employees and management at Yarra Trams?

2 marks

e. The CEO of Yarra Trams and his HR team are looking at a number of motivation theories to help them keep staff on track and increase productivity levels. Discuss two such theories and suggest how they could be used to motivate the staff at Yarra Trams.

6 marks

Practice Exam 3

f. Yarra Trams strive to be more socially responsible. Discuss some of the strategies Yarra Trams use to achieve this goal.

2 marks

g. Distinguish between a modern award and a collective agreement.

2 marksTotal: 25 marks

END OF QUESTION AND ANSWER BOOKPractice Exam 3

Practice Exam 3