Unit Test: 3

Subject: Business Management Class: DP 1

Level: HL Block: A and B

Duration: 60 Minutes Max. Marks: 20

Name of the Student:

__________________________________________________________

Instructions to candidates:
1.Do not open this examination paper until instructed to do so.
2. All Questions are compulsory.
3. The maximum mark for this examination paper is 20 marks.

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 SECTION-A (Answer all the questions)

1. State two negative impacts that multinational companies have on host countries? [2]
2. Kate Kenna and Diana Brouwer founded The Body Beautiful just six short years ago.
Growth has been rapid and phenomenal, exceeding all expectations. The company
operates retail outlets, factories, research and development centres and consultancy
services to fashion houses and film industries in continents as diverse as Europe, Asia,
America and Latin and South America. Africa will be the next target with retail outlets
and cosmetic factories being opened in Egypt, South Africa and Nigeria in 2023. The
company has expanded its retail offerings, and by differentiating stores that under
different brands they have been successful in targeting a range of different
demographics – teens, men, working women. The Body Beautiful now employs over
5,900 employees. Recently Kate and Diana have been working with a specialist
management consultancy firm to develop implement a better organisation structure for
their growing company. They have considered a wide variety of options in possible
organisational structures and have considered a range of concepts including levels of
hierarchies, chain of command and spans of control, centralisation versus
decentralisation and the possibility of using more delegation to free up valuable
management time and resources. The consultancy firm is asking the co-CEOs to
consider a matrix structure as a possible option in the changes to the company’s
organisational structure.
Discuss any two organisational charts “The Body Beautiful” could use to formally
organise itself. [6]

3. Electrolux, a world-leading appliance maker, made a loss in the first three months of
2014. The company was forced to cut staff costs because demand for its products was
falling, especially in its main US market. “Demand for our products has been lower
than forecasts and this has hit our profits,” said Electrolux boss Ashleigh Yi. The
company planned to cut 400 jobs in its European factories to save $72 million.

Apart from the global downturn in demand, explain three factors that could influence
the number of workers required at Electrolux. [6]

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 SECTION-B (Answer the following question)

4. Ashleigh Yi joined Index Technologies after working for IS Computers (ISC) after
several years. At ISC, Ashleigh had been paid a high salary, but she did not find the
work rewarding. She was given specific programming tasks to perform but was not
involved in designing complete software solutions to clients’ problems. She worked to
tight deadlines. Ashleigh was not assigned to teams and worked alone on most tasks.
She felt that Index offered better career prospects as well as the opportunity to take on
more responsibility. Ashleigh joined Index as a senior programmer on a high salary –
but this was less important to her than the chance to work as a team member.
She was appointed to Victoria Smaill’s five-member team of programmers. Ashleigh
had met her already and her team colleagues seemed friendly and were appreciative
of Victoria’s leadership. She recognised talent and achievement and wanted
colleagues to reach their full potential. Victoria allowed team members to take control
of complete software solutions – not just a small section of them.

Evaluate, using this case study as a starting point, how Herzberg’s research on
‘hygiene and motivating factors’ can be effectively applied within a work environment.
[6]

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