Question Paper

4UDBE

R
Dynamic Business Environments

PE
Tuesday 11 June, Morning

1. Examination duration: 3 hours

PA
2. The marks for each question are shown in brackets; use this as a guide on how much time to spend on each
question.

3. Read the instructions at the top of each section carefully.

4. No books, dictionaries, notes or any other written materials are allowed in this examination.

5. Calculators, including scientific calculators, are allowed provided they are not programmable and cannot
store or recall information. All other electronic devices, including mobile phones and smart watches, are not
ST

permitted.

6. Candidates who break ABE Examination Regulations will be disqualified from the examinations.

7. Question papers must not be removed from the examination room.

Section A 20 × 1 mark 20 marks

PA

Section B 3 × 10 marks 30 marks

Section C 2 (of 3) × 25 marks 50 marks

Total: 100 marks

4UDBE0619 © ABE 2019 1

 Section A – 20 marks
(20 multiple choice questions × 1 mark)

Select one correct answer from the four options on each of the following 20 questions

1. Demerit goods are:

A. Offered free to consumers

B. Considered desirable for consumers

R
C. Often subsidised or provided free by governments

D. Often regulated by governments

PE
2. Which of the following could be increased with free trade?

A. Increased job outsourcing

B. Foreign investment

C. Technology transfer

D. Lower government spending

PA
A trade association, sometimes also known as a business association, participates in public relations
3.
activities and will:
A. Negate the need for a trade union

B. Be funded by the central government

C. Operates in a specific industry

D. Operates in several industries

ST

4. Microeconomics is that part of economics which:

A. Analyses the behaviour of individuals and firms

B. Forecasts economic growth for the longer term

C. Studies aggregate demands

PA

D. Looks at the whole economy

5. A PESTLE analysis is conducted on an organisation’s:

A. Macro environment

B. Historical environment

C. Micro environment

D. Internal environment

4UDBE0619 © ABE 2019 2

 6. An organisation’s mission statement is:

A. Its primary beliefs and values

B. Its strategy

C. Its short term plan

D. Its goods and services

7. What does the ‘Stars’ category symbolise in the Boston Consulting Group (BCG) Matrix?

R
A. Low market share and high market growth

B. High market share and high market growth

C. Low market share and low market growth

PE
D. High market share and low market growth

8. In Johnson and Scholes’ Cultural Web, the paradigm ‘symbols and artefacts’ refer to an organisation’s:

A. Management structure

B. Control systems
PA
C. Company logo, office décor and dress codes

D. Rituals and routines

9. A disadvantage of using government statistics for identifying external environmental trends can be:

A. It may be out of date

B. Costly to obtain
ST

C. Unreliable as it is free

D. Research carried out on a small scale

10. Which of the following best describes an oligopoly?

A. A former monopoly that has been broken up by government

PA

B. A government-granted franchise

C. A few firms sharing monopoly power

D. Many monopolistically competitive firms

4UDBE0619 © ABE 2019 3

 11. Monetary policy involves:

A. Changing the levels of taxation

B. Changing the level of government expenditure

C. Creating employment

D. Influencing the interest rates

12. Which of the following best describes ‘supplier power’ in Michael Porter’s Five Forces (1980) framework?

R
A. Assessing how easy it is for suppliers to drive up prices

B. Assessing how easy it is for suppliers to lower prices

C. Assessing the number of suppliers there are

PE
D. Assessing how easy it is for consumers to switch products

13. The VRIN framework can be used to identify:

A. A firm’s technical resources

B. A firm’s human resources

PA
C. A firm’s organisational structure

D. A firm’s resources and external opportunities

14. A monopoly is a market structure where:

A. There are many firms and freedom of entry into the industry

B. There is only one firm in the industry

ST

C. There is a dominant firm in the industry

D. There are two dominant firms in the industry

15. A main feature of a market economy, also known as a free market economy, is:

A. There is very little central planning or government intervention

PA

B. The role of the private sector is minimised

C. Consumers would have no choice where to buy

D. Often regulated by government

4UDBE0619 © ABE 2019 4

 16. Which is an example of an industry that comes closest to perfect competition?

A. Aircraft manufacturing

B. Wheat farming

C. Catering industry

D. Hotel industry

17. A PESTLE framework can be used by an organisation to:

R
A. Gain a greater understanding of the external environment it operates within

B. Internal issues within an organisation

C. Assess the historical environment

PE
D. Reorganise its management structure

18. Ansoff’s Growth Model (1957) matrix considers the greatest risk for growth for an organisation is:

A. Market development

B. Diversification
PA
C. Market penetration

D. Product development

19. An example of a tertiary industry is:

A. Insurance

B. Coal mining
ST

C. Collection of raw materials

D. Building of houses

20. Mercosur is the leading trading bloc for:

A. Central America
PA

B. North America

C. Europe

D. South America

4UDBE0619 © ABE 2019 5

 Section B – 30 marks
(3 × 10 marks each = 30 marks total)

Answer all questions

21 (10 marks)
Discuss the range of government statistics an organisation can access to gain a greater understanding of the
external environment. (10 marks)

22 (10 marks)

R
a. Outline the main reasons for organisations carrying out an internal audit. (5 marks)
b. Outline how the ‘5M’s’ framework could be used for an internal audit for organisations. (5 marks)

23 (10 marks)

PE
Explain the features of Ansoff’s Growth Model (1957). (10 marks)

PA
ST
PA

4UDBE0619 © ABE 2019 6

 Section C – 50 marks
(2 of 3 × 25 marks each = 50 marks total)

Answer TWO questions only

24 (25 marks)
Apply Porter’s Generic Strategies Model to explain an organisation’s chosen strategy. Use examples to support
your answer.

25 (25 marks)

R
Explain how key principles of Porter’s Value Chain can be applied to an organisation of your choice. Use examples
to support your answer.

26 (25 marks)

PE
a. Complete a PESTLE analysis for an organisation of your choice. (15 marks)
b. Discuss the strategic implications for this organisation in relation to your findings in part (a). (10 marks)

End of question paper

PA
ST
PA

4UDBE0619 © ABE 2019 7

 R
PE
PA
[ BLANK PAGE ]
ST
PA

4UDBE0619 © ABE 2019 8