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 Ans wer ALL the questions. Write your answe rs in the spaces provided.

1. Toyota Motor Corporation is a Japanese automotive manufacturer headquartered in

Aichi, Japan. Toyota is one of the largest car manufacturers in the world. The company operates
in 200 different countries. It manufactures cars, pickups, minivans, and SUVs include models
such as Camry, Corolla, 4Runner, Land Cruiser, Sienna, the luxury Lexus line, and full- sized
pickup trucks. It is known for making fuel-efficient, and economical vehicles.

(a) (i) Which one of the following is an element of the marketing mix? (1)

A Perseverance

B Profit

C Place
D Persuasion

(ii) Which one of the following documents would be used by a business as part of its recruitment
process? (1)

A Personal plan

B Person specification

C Job specification

D Interview

(iii) Which of the following is an advantage to a business of using just- in-time (JIT) production?
(1)

A Improved product range

B Stock is less likely to become out of date

C Increased ability to exploit economies of scale

D Increased ability to meet an unexpected order

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(iv) Which of the following is not part of the channel of distribution. (1)

A Retailer
B Wholesaler

C Consumer

D Shareholder

(v) Which of the following is an example of visible trade. (1)

A Training services
B Tourism

C Manufactured vehicles

D Banking products

(vi) Which of the following is not a benefit of ISO 9000 Certification. (1)

A Helps to identify staff training needs

B Ensures orders are consistently delivered on time

C Focus is on product development

D Examines and improves systems.

(b) Define the term economies of scale. (1)

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(c) Define the term retained profit. (1)

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(d) State one element of comprehensive income. (1)

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In 2017, Toyota sold 10,200 Corolla cars in Dubai, price of each Corolla is US$19,500.

(e). Calculate total revenue generated in 2017 from Dubai market. You are advised to show your
working. (2)

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(f) Explain one reason why business might be reluctant to spend on training. (3)

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(g) Analyse the importance of market segmentation for car manufacturer like Toyota. (6)

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(Total for Question 1 = 20 marks)

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2. Toyota is expanding its operations in emerging market including C hina & India.

(a) State one function of the Human Resources department. (1)

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(b) State one type of remuneration paid to employees for their work. (1)

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(c) Explain one disadvantage to a business of providing poor customer service. (3)

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(d) Explain one advantage of job rotation to business and employees. (3)

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(e) Explain one reason why it is important to use resources effectively. (3)

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Toyota needs to recruit a Sales and Marketing manager for the emerging countries (China &
India).
They have two options for recruiting this position.

Option 1: Internal recruitment

Option 2: External recruitment

(f) Justify which one of these options Toyota should choose. (9)

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(Total for Question 2 = 20 marks)

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3. Toyota established factories all over the world, with a concept of manufacturing
operations outside its own home country will make it a transnational corporation.

(a) Identify any one stage of product development. (1)

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(b) Outline one impact of new technology in secondary sector. (2)

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Table shows selected information from Toyota’s statement of comprehensive income in 2016

US$
Revenue 1 994 372
Cost of sales 700 450
Gross profit 1293922
Operating & admin expenses 450 100

(c) Calculate Toyota’s operating profit margin in 2016. You are advised to show your working.
(2)

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Different car models has been designed, such as

- Prius: The Toyota Prius is environment friendly/hybrid car, which runs on both electricity and
petrol.

- Corolla: The Toyota Corolla is an economical/low budget vehicle.

- Land Cruiser: It is a luxurious sporty four-wheel drive vehicle, with a capacity of seven seats.

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(d) Analyse the different market segments that Toyota is likely to target. (6)

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While establishing a manufacturing facility in one of European country, they are considering two
options.

Option 1: Setup a factory inside a trade bloc.

Option 2: Supply the new country from an established factory outside

(d) Justify which one of these two options Toyota should choose. (9)

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(Total for Question 3 = 20 marks)

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4. In 2017, total 73.14 million cars were sold in global market, Toyota enjoyed sales of
11.05 million cars.

(a) Calculate the market share of Toyota in global market. (2)

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(b) Analyse possible benefit of using Capital intensive production for Toyota. (6)

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Toyoto was the first car manufacturer to embrace lean manufacturing (known as Toyota
Production System) which is a faster, more efficient process which leads to less waste compared
to the traditional batch and queue method of manufacturing. It also applied JIT ( Just- in-Time
manufacturing).

(c) Evaluate possible benefits and its impacts on Toyota by implementing Lean and JIT. You
should use the information provided as well as your knowledge of business. (12)

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(Total for Question 4 = 20 marks)
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TOTAL FOR PAPER = 80 MARKS

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