BUSINESS AND MANAGEMENT

STUDY GUIDE
2022 – 2023

NAME: __________________________________________ 1 ST GRADE: _____

TEACHER: Tatiana Barzallo Carrillo DATE: ___/___/_____

1. Read the following case study and answer the questions.

Tata Nano divides opinions

It is three meters long, seats four, does 100 kilometers an hour and aims to revolutionize travel
for millions. The ‘People’s Car’ is also the cheapest in the world at US$2600 – about the same
price as a DVD player in a Lexus.

Rattan Tata, the company chairman, unveiled the cute, snub-nosed car that will allow millions
of Asia’s emerging middle classes to buy a car for the first time. ‘This will change the way
people travel in India and Asia. Most people are denied mobility due to the high prices of cars.
This is a car that will be affordable to millions of consumers for the first time,’ he said when the
car was launched.

The car will be built in a factory in West Bengal. This will offer relatively well-paid factory
employment to thousands of workers for the first time. The country will gain export revenue
when the car is sold abroad. The steel and other materials used in the car will be purchased
from Asian suppliers, which will help to boost local economies and suppliers.

The idea of millions of Nanos on the road alarms environmental groups. Rajendra Pachauri,
the UN’s chief climate scientist, said that he was ‘having nightmares’ about it. Delhi, where air
pollution levels are more than twice the safe limit, is registering 1000 new cars a day, and this
could double when the Nano is in production. Average speed of traffic at rush hour is 10
kilometers an hour and the government might be forced to spend much more on building new
roads if Nano ownership became widespread. Bus operators also fear increased competition
from private car users.

Source: www.timesonline.co.uk, 11 January 2008 (adapted)

1.1 Do you think Tata, the manufacturer, has a responsibility to all these groups? Why?

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2. Read the following statement answer the questions

2.1 if employees are so diverse in their thinking, personalities, and behaviors, what exactly
is 'human nature'?
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3. Answer the following questions

3.1 Explain why it is difficult to penetrate a saturated market

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4. Complete the recruitment process chart with one characteristic.

Recuirtment process Characteristics

Vacancy

5. Read the following job vacancy and answer the questions.

Fonthill Primary School job advertisement Fonthill Primary School, Belgium is seeking to hire
an Educational Assistant ($22 per hour) to work up to 17 hours a week in the Learning Support
Department. The successful candidate will be required to facilitate specially designed
educational resources and activities working in collaboration with a classroom teacher and the
Head of Department. Applicants should demonstrate patience, initiative and preferably have
previous experience working with young children with specific learning difficulties. This
position involves working with a single child on a one-to-one basis. Send your completed
application form and CV to the principal, Ms. Danielle Franzen Daoudy. Closing date: Friday, 18
May.

5.1 Explain why it is important for a business such as Fonthill Primary School to produce
well-defined job descriptions.

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Read the following case study and answer the questions.

Nokia and Microsoft

Nokia was once the pride of Europe having been the market leader in the mobile phones
industry from 1998 to 2008, enjoying up to 49.4% market share. In 2005, the Finnish company
sold its one billionth mobile phone. By 2007, its market capitalization was a staggering $150
billion, making it the fifth most valuable brand in the world. However, the huge popularity for
Apple and Samsung smartphones eventually forced Nokia to be sold to Microsoft $7.3 billion in
November 2013. A staggering 99.5% of Nokia's 3900 shareholders voted in favor of the deal
after seeing its share price drop by 93% and its market share continually decline to 3%. The
company's 32 000 employees were transferred to Microsoft in early 2014.

1. Use the case study to distinguish between shareholders and stakeholders. (2 points)

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2. Examine how different stakeholder groups are likely to be affected by Microsoft’s

takeover of Nokia. (2 points)

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Read the following statement and answer the question.

The later part of the 20th century and beginning of the 21st century have seen globalization of
all aspects of people’s lives. Indian people eat in McDonald’s, Chinese people drive BMWs, the
Vietnamese work for Nike, British people get customer support from offices in India and
Malaysia’s favorite football team is Manchester United.

3. To what extent is increased globalization a threat to national culture? (2 points)

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Answer the following questions

4. Explain why diversification carries huge risks as a growth strategy (1 point)

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5. The resources used in the production process are collectively known as:

a. Human capital resources

b. Raw materials

c. Working capital

d. Factors of production

6. Internal diseconomies of scale can be caused by:

a. The exercise of control by managers being weakened with larger workforce

b. Being unable to purchase stock at a discounted price

c. Traffic congestion causing delay in the delivery of important stock (product)

d. Advertising costs to a global audience

7. External economies of scale are cost saving available to the whole _______ because of
its _______

a. industry, location

b. business, location

c. market, size

d. business, size