Paper 1 Practice Questions

a) Define the term ‘added value’. [2].

b) Briefly explain two ways in which operations management decisions might add value to a
product. [3]

Your answer must relate to ways that OPERATIONS can add value and NOT ways that the marketing department can add value. Pick two points
below and clearly explain how they can add value.
● Product design – a distinctive offer to consumers.
● Efficiency of production process (e.g. reduce waste, cut costs).
● Focus on quality standard attractive to consumers.
● Efficient stock ordering and management systems.
● Deciding on suitable production methods.

2 (a) State two aims of a ‘mission statement’. [2]

Define mission statement
Explain two aims of the statement

(b) Briefly explain how a ‘mission statement’ might be effectively communicated to the
stakeholders of a business. [3]
Read page 41 to find ways of communicating the mission to stakeholders.

3 Briefly explain the advantages of using ‘sampling’ in market research. [5]

Read ‘sample size’ on page.238 to find two advantages of sampling

4 (a) Define the term ‘bank overdraft’. [2]

Read page.490

(b) Briefly explain two disadvantages for a business that uses a bank overdraft as a source of
finance. [3]
Read page. 490

Section B

5 (a) Explain why the marketing objectives of a business need to be closely linked to its corporate objectives. [8]

1. Define marketing objective (page.318)

2. Define corporate objectives (page.41-42)
3. Give some examples of corporate objectives (page.41-42)
4. Read the section ‘objectives and decision making’ – why are clear corporate objectives needed in an organisation.
5. In the hierarchy of objectives on pg.46 – what would a marketing objective be classed as?
6. How does the marketing objective impact the corporate objective?
7. Read the first paragraph of ‘marketing objectives and corporate objectives’ on page.215. State the two examples of how the corporate
objective of a business will impact the marketing objective.

(b) A business designs and manufactures mobile (cell) phones. Discuss why portfolio analysis
could be important if the business is to achieve its marketing objectives. [12]

1. Define marketing objective (page.318)

2. Give some examples of marketing objectives
3. Define portfolio analysis (page. 313-318)
4. The cell phone market is highly competitive. How would a tool like the product life cycle (which is a form of portfolio analysis)
help a cell phone manufacture increase market share (and achieve marketing objectives) in such a competitive environment.
5. Analysing the product portfolio may allow you to identify strengths and weaknesses of the current products. How might this help a
business achieve its marketing objectives?
6. The optimal product mix should be analysed in light of the demand forecasts and resource constraints? What decisions might a
business make to its product portfolio to ensure that the objectives are met?
7. Read the evaluation of product portfolio analysis on page.260. Why should a business not only focus on ‘product’.