SCOTCH COLLEGE

Semester One Examination, 2020

Question/Answer Booklet

BUSINESS MANAGEMENT AND ENTERPRISE

YEAR 11 ATAR

AFFIX
STICKER
HERE

Please circle/highlight your teacher’s name

ALLEN KANDIAH

Time allowed for this paper

Reading time before commencing work: Ten minutes
Working time for paper: Two and a half hours

Materials required/recommended for this paper

To be provided by the supervisor
This Question/Answer Booklet

To be provided by the candidate

Standard items: pens, pencils, eraser, correction fluid, highlighter and ruler
Special items: non-programmable calculators satisfying the conditions set by the School
Curriculum and Standards Authority for this subject

Important note to candidates

No other items may be taken into the examination room. It is your responsibility to ensure
that you do not have any unauthorised notes or other items of a non-personal nature in the
examination room. If you have any unauthorised material with you, hand it to the supervisor
before reading any further.
Structure of this paper
Number of Suggested
Number of
questions to working Marks
Section questions
be time available
available
answered (minutes)
Section One:
6 6 105 /60
Short Answer

Section Two:
2 1 45 /25
Extended Answer

Totals 7 150 /85

2
Section One (60 Marks)
This section has six (6) questions. Answer all questions. Write your answers in the
space provided.

Suggested working time for this section is 105 minutes.

Question One (10 Marks)

Use the case study below to answer the following questions.

WorkSafe Report
Barbaro Structural Engineering
10:33am, March 3rd, 2020. 125 Adelaide Terrace, Perth, 6000.

A routine inspection of the construction site was undertaken as per the Occupational
Health and Safety Act (1984). The following observations were made:
• Hazardous chemicals were left open and exposed, not kept in a safe location.
• Two construction workers jeopardised the safety of a colleague, by removing
his hard hat in an area prone to falling objects.
• Another construction worker refused to use his high visibility vest when
requested by the OH&S officer designated for the site.
• Training manuals regarding the handling of hazardous materials could not be
provided.
• All railings and barriers placed on the construction site are to appropriate
standard.
• When the OH&S officer was asked about when the last safety training day
was held, they replied with “we are yet to have done any formal induction or
training on site”.

A stop work order was issued immediately and the site was shut down.
Investigations are continuing.

(a) Outline the purpose and intent of the Occupational Health and Safety Act
(1984). (2 marks)

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(b) With reference to the case study and the Occupational Health and Safety Act
(1984), describe two (2) breaches of the act that were caused by the
employer. (4 marks)

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(c) With the use of examples, discuss two (2) responsibilities of the employee
according to the Occupational Health and Safety Act (1984). (4 marks)

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Question Two (10 Marks)
Use the case study below to answer the following questions.

An independent survey conducted by KPMG was completed amongst staff regarding

anti-discrimination practices in the workplace of Lanning Industries. Employees were
asked to rate the business’ ability to deal with discriminatory issues in the workplace
and provide any incidents that they have experienced.

The findings of the survey established that:

• 45% of employees believe that the business was doing enough to fix issues of
discrimination in the workplace.
• 65% of employees have witnessed a discriminatory practice by a superior.
• The head office did not have enough facilities to help those that are less able-
bodied to access the building (e.g. lack of lifts and ramps).
• Racial discrimination was the most common form (35%) of discrimination to
occur in the workplace.

(a) Using examples, outline two (2) ways that business can discriminate against
someone in the workplace in the separation phase of the employment cycle.
(4 marks)

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(b) With reference to the case study, recommend two (2) solutions to address the
potential discrimination issues in the independent report. (4 marks)

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(c) List two (2) of the National Employment Standards. (2 marks)

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Question Three (10 marks)
Use the case study below to answer the following questions.

Choe Foods is a successful retail and wholesale food producer specialising in Asian
spice blends and ingredients, sold to households and restaurants across Australia.

CEO of Choe Foods, Weng Choe, is looking to expand his operations to Malaysia,
breaking into the retail market, encouraging households to cook more dishes, rather
than eating out. In the South-Asian East region, Malaysians are the least likely to
cook at home compared their neighbours in Singapore and Indonesia.

In developing his expansion plan, Choe realised that he has some hurdles to
overcome:
• Customs laws in Malaysia prohibit the importation of certain ingredients.
• Economic growth in Malaysia has fallen to its lowest levels in 12 years.
• When exporting, the Australian Government requires businesses to purchase
export insurance and have secured financial support from a bank.
• Malaysians aged 24-35 are twice as likely not to cook at home than those
older than them.
• A rapidly depreciating Australian Dollar is making set-up costs in Malaysia
more expensive. Set-up is estimated to cost RM2 million (AUD 800,000).

(a) Analyse one political and one economic factor on its potential impact to harm
the profitability of Choe Foods expansion into the Malaysian market and a
recommendation on how each factor can be overcome. (10 marks)

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Question Four (10 marks)
Use the case study below to answer the following questions.

Howell Electronics in Stratton is a small business that specialises in the repair of

household goods that have electrical faults, especially those that stem from breach
of warranty. He currently hires 10 staff that work through the repairs, all varying in
levels of experience.

Owner Jordan Howell realises that he needs to train his employees to repair a new
model of television for a company which he services warranties for. He has two
options:
• Train them himself, because he has the training qualifications to do so.
• Get a trainer from the company to train his employees.

Jordan understands that there are benefits and disadvantages to both methods, but
also being a small business, cost will be the major factor.

(a) Describe the four (4) stages of the employment cycle. (4 marks)

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(b) Evaluate whether the business should be using an internal or external form of
training, to teach the new skill. (6 marks)

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Question Five (10 marks)

(a) With reference to intellectual property and by using an example, define

design. (2 marks)

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(b) Using examples, differentiate between a trademark and a patent. (4 marks)

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(c) Describe two (2) benefits of a business having a patent. (4 marks)

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Question Six
Use the case study below to answer the following questions.

Hollis Corporate Travel

Those who work in the Sales department for this business receive a fixed basic
salary and then for every dollar they make in sales they earn a commission based on
a fixed percentage, which increases once they exceed their monthly sales targets.
Sales can be started by one salesperson but can be taken over by any other
salesperson at any point of the process. The person who makes the final transaction
earns the commission.

The Wallbridge Travel Co.

Those who work in Sales for The Wallbridge Travel Co. earning an annual salary,
which is above the industry average. Workers also earn bonuses if they exceed the
monthly performance targets. Salespeople also get additional personal leave to take
care of family and their mental health, along with additional benefits such as free
gym memberships, a leadership mentoring programme and extended annual leave.

(a) Define Vroom’s Expectancy Theory. (2 marks)

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(b) According to Adam’s Equity Theory, discuss the impact on motivation based
on the measures that Hollis Corporate Travel has taken. (4 marks)

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(c) Using Maslow’s Hierarchy of Needs, discuss how the measures taken by The
Wallbridge Travel Co. will impact staff motivation. (4 marks)

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Section Two (25 Marks)

This section has two (2) questions. You are to only to choose one (1) question to
answer.

Suggested working time for this section is 45 minutes.

Question One

“Every company has two organisational structures: the formal one is written on the
charts; the other is the everyday relationship of the men and women in the
organisation”
- Harold S. Geneen

(a) With the use of an example, define delegation. (2 marks)

(b) Differentiate between top, middle and front-line management. (3 marks)

(c) With examples, compare narrow and wide span of control. (4 marks)

(d) Evaluate the suitability of functional and divisional organisational structures

when it comes to a company with operations in several countries. (9 marks)

(e) With reference to Herzberg’s Motivation-Hygiene Theory, differentiate

between the importance of financial and non-financial incentives in motivating
employees. (7 marks)

OR
(turn over to next page)

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Question Two

Tristan Ward is looking to start up a new business that specialises in a new product
of mobile conferencing technology, that can be operated through a variety of
devices, increasing flexibility in the workplace.

To take advantage of these uncertain times where in-person contact is discouraged

and more people are working from home, he feels this is the right time to start. He is
unsure of the business structure he should operate and is looking to raise $200,000
in funding to start up his business.

(a) Using examples relating to Tristan’s business, describe two (2) elements of a
business plan. (4 marks)

(b) Evaluate the suitability of Tristan choosing a sole trader or a partnership as

his form of business structure. (10 marks)

Tristan has found a potential supplier to provide I.T. support but needs to establish a
contract to guarantee that the support services will be provided.

(c) Using Tristan’s business as an example, describe the three (3) elements of a
contract. (6 marks)

(d) Describe the stage of the Product Life Cycle Tristan’s product is currently in
and outline two (2) challenges it may face in this stage. (5 marks)

END OF SECTION TWO

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THIS PAGE HAS BEEN INTENTIONALLY LEFT BLANK

28
 SCOTCH COLLEGE
COMMERCE DEPARTMENT

2020
YEAR 11 BUSINESS MANAGEMENT
AND ENTERPRISE ATAR

FEEDBACK AND MARKING SHEET

TASK FIVE
SEMESTER ONE EXAMINATION

Name
Section One /60
Section Two /25
Total /85
SECTION ONE: SHORT ANSWER (60 marks)

Question One (10 marks)

(a) Outline the purpose and intent of the Occupational Health and Safety Act
(1984). (2 marks)

Descriptor Band Marks

Outlines both the purpose and intent of the OHS Act 2 2
(1984)
Only outlines the purpose or intent of the OHS Act 1 0-1
Score
Purpose: Provides for the promotion, co-ordination, administration and
enforcement of occupational health and safety in Western Australia.

Intent: Places the duty of care for safety and health at the workplace on employers
by ensuring they prevent accidents and injury or harm.

Why your response did not receive full marks:

• The OHS Act was not made reference to or incorrectly addressed
• Only either the purpose or intent was outlined, not both.

(b) With reference to the case study and the Occupation Health and Safety Act
(1984), describe two (2) breaches of the act that were caused by the
employer. (4 marks)

Descriptor Band Marks

Two (2) marks per breach for a maximum of four marks
Correctly describes the breach that has occurred in the 2 2
case study and references the part of the OHS Act that
was breached.
Outlines the breach that has occurred in the case study, 1 0-1
with minimal reference to the OHS Act.
Breach 1 Breach 2 Score
Breaches:
• Hazardous chemicals were left open and exposed. The OHS Act states that
chemicals should be stored safely at all times.
• Construction workers jeopardised the safety of a fellow colleague by
removal their hard hate and construction worker not wearing his high
visibility vest. This breaches the OHS Act under the responsibilities of the
employee, by ensuring that they follow safe practices at all times.
• Training manuals weren’t provided, and no formal induction being
undertaken. Breaches the OHS Act as it is the responsibility of the employer
to provide appropriate training for the use of plant and equipment.
Why your response did not receive full marks:
• Did not correctly describe the breach that occurred
• OHS Act not referenced when describing the breach
(c) With use of examples, discuss two (2) responsibilities of the employee
according to the Occupational Health and Safety Act (1984). (4 marks)

Descriptor Band Marks

Two (2) marks per responsibilities for a maximum of four marks
Discusses the correct responsibility of the employee from 2 2
the OHS Act and uses an appropriate example.
Outlines the responsibility of the employee but does not 1 0-1
provided an example or the example is not relevant.
Adv. 1 Adv. 2 Score
Responsibilities of the employee:
1. To ensure his or her own safety and health at work; and
2. To avoid adversely affecting the safety or health of any other person through
any act or omission at work.
Examples provided need to be directly related and suitable to either responsibility
of the employee. Candidates can reference examples in the case study if need be.
Why your response did not receive full marks:
• Did not provide the correct responsibility of the employee
• The example provided did not address how the employee can address their
responsibility correctly.

Question Two (10 marks)

(a) Using examples, outline two (2) ways that business can discriminate against
someone in the workplace in the separation phase of the employment cycle.
(4 marks)

Descriptor Band Marks

Two (2) marks per way for a maximum of four marks
Outlines a type of discrimination and correctly applies it to 2 2
a task that is performed in the separation phase of the
employment cycle.
The form of discrimination was not applied in detail to the 1 0-1
separation phase of the employment cycle, or the
application overall was incorrect.
Way 1 Way 2 Score
Forms of discrimination: age, sexual orientation, religion, marital status, physical or
mental ability, race, pregnancy, colour, national extraction, social origin etc.

Tasks in the separation phase: summary dismissal, dismissal-on-notice,

redundancy pay, exit surveys, retrenchment, involuntary and voluntary
redundancies, resignation, retirement.

For the candidate to obtain full marks, they will need to outline a scenario where
any of the forms of discrimination have to any unfair or unjust contribution to the
 employee being separated when the shouldn’t have or weren’t awarded their full
entitlement of benefits when separation occurred.

Why your response did not receive full marks:

• The type of discrimination outline was not correct or provided with enough
detail.
• The application of the type of discrimination to the scenario where
separation occurred is not clear or was incorrectly applied.

(b) With reference to the case study, recommend two (2) solutions to address the
potential discrimination issues in the independent report. (4 marks)

Descriptor Band Marks

Two (2) marks per solution for a maximum of four marks
Correctly identifies the issue in the case study and 2 2
outlines a practical solution that can address the
concerns in the independent report.
Identifies the issue but does not provide a solution that 1 0-1
effectively addresses the concerns of the independent
report.
Solution 1 Solution 2 Score
Issues presented:
• Majority (55%) of employees believe that not enough was being done to fix
issues of discrimination.
• A large majority (65%) have witnessed a discriminatory practice by a
superior.
• The facilities in the building does not assist those that are physically
disabled.
• Racial discrimination is currently a problem in the workplace.

Solutions:
Increased education and training opportunities for staff, especially managers.
Ensure that anti-discrimination policy protects those who have been discriminated
in the workplace.
Construct and remedy structural issues with the building to accommodate for those
with physical disabilities.
Communicate clearly to employees what the expectations are in the workplace
regarding discrimination and outline the consequences.

Why your response did not receive full marks:

• The issue in the case study was not correctly identified
• The practical solution provided is not suitable for the case study
• The practical solution provided did not discuss how the discrimination would
be addressed
(c) List two (2) of the National Employment Standards. (2 marks)

Descriptor Band Marks

Two (2) marks per standard for a maximum of two marks
Correctly lists one of the 10 National Employment 1 0-1
Standards
Standard 1 Standard 2 Score
National Employment Standards: maximum weekly hours, requests for flexible
working arrangements, parental leave and related entitlements, annual leave,
personal/carer’s leave etc, community service leave, long service leave, public
holidays, notice of termination, Fair Work Information Statement.

Why your response did not receive full marks:

• Did not provide the correct National Employment Standard.

Question Three (10 marks)

(a) Analyse one political and one economic factor on its potential impact to harm
the profitability of Choe Foods expansion into the Malaysia market and a
recommendation on how each factor can be overcome. (10 marks)

Descriptor Band Marks

Impact to Harm Profitability
Three (3) marks per factor for a maximum of six (6) marks.
Correctly identifies the factor, describes the process 3 3
how profitability can be impacted.
Correctly identifies the factor, outlines how profitability 2 2
can be impacted.
The factor is identified is briefly outlined into how 1 0-1
profitability is impacted.
Political Economic Sub-total
Descriptor Band Marks
Recommendations
Two (2) marks per recommendation for a maximum of four (4) marks.
The recommendation described addresses the process 2 2
towards a practical solution, in order to maximise
profitability.
The recommendation outlines a practical solution to 1 0-1
improve profitability
Political Economic Sub-total
Total
Political factors: Customs laws in Malaysia prohibit the importation of certain
ingredients; when exporting, the Australian Government requires businesses to
purchase export insurance and have secured financial support from a bank.

Economic factors: Economic growth in Malaysia has fallen to its lowest levels in 12
years; A rapidly depreciating Australian Dollar is making set-up costs in Malaysia
more expensive. Set-up is estimated to cost RM2 million.
 In order to achieve full marks for this question, candidates should be able to:
* Correctly identify the relevant political and economic factor from the case study.
* Describe the process from how the factor could impact profitability
(For example, Malaysia’s customs laws may not prohibit a certain ingredient into
the country, that means the original spice blend will need to be adjusted, which
would lead to a change in costs in production, and if the changed spice blend does
not meet the taste and preferences of the market, which could also lead to a
decrease in sales and hence profitability could be effected on both fronts.)
* Provide a recommendation that is practical which could mitigate any harm
towards profitability.

Why your response did not receive full marks:

• The factor provided was incorrect for the analysis
• The process of how the factor can impact profitability was not described in
enough detail
• The process described/outlined was not clear regarding how profitability
would be impacted
• The recommendation provided was not suitable or relevant to the case
study

Question Four (10 marks)

(a) Describe the four (4) stages of the employment cycle. (4 marks)

Descriptor Band Marks

Defines the stage of the employment cycle and provides 2 1
an example of task that occurs within that stage.
Defines the stage of the employment cycle. 1 0-0.5
Acquisition Development
Maintenance Separation
Total
Acquisition – The stage of the employment cycle where business plan out what
their workforce requirements (e.g. job analysis)

Development – The stage of the employment cycle where employees are being
developed and provided the appropriate training to carry out their job functions
effectively (e.g. on-the-job training)

Maintenance – The phase of the employment cycle where businesses look to

maintain the morale, motivation and skilling of their staff through a variety of
methods such as recognition and reward systems and professional development.

Separation – This where the business ends its relationship with the employee
through the voluntary (e.g. retirement) or involuntary (e.g. dismissal) means.

Why your response did not receive full marks:

• Did not describe the stage correctly
• Did not provide an example for each of the stages
(b) Evaluate whether the business should be using an internal or external form of
training, to teach the new skill. (6 marks)

Descriptor Band Marks

Positives and Negatives of each form of training
Two marks per factor for a maximum of four (4) marks.
A positive and negative is described for the form of 2 2
training with relation to the impact of effective training
outcomes for the case study.
A positive and/or negative is outlined with minimal 1 0-1
relevance to the case study.
Internal External Sub-total
Descriptor Band Marks
Recommendation
The recommendation provided gives a detailed 2 2
reasoning why the form of training is suitable for the case
study, with reference to cost as the KPI.
A brief recommendation is provided, but there is minimal 1 0-1
reference to the needs of the business outlined in the
case study
Sub-total
Total
Internal Training
Advantages – Cost effective, targets issues directly related to the business’ needs,
few disruptions to operations, help establish relationships at work, convenient
location.
Disadvantages – Poor working habits may be passed on, lack of up-to-date
experience/training materials, trainers will have their own work disrupted, lack of
resources, low productivity

External Training
Advantages – Experts in their specialised area, wider range of training can be
provided, no distractions from colleagues and customers, networking can take
place.
Disadvantages – Potential loss of output, expensive due to external providers,
transport and accommodation, arranging work schedules to do external training
can be difficult

Recommendation – Howell Electronics would be considering to use an internal

training method as cost is a major factor, due to the size of the best. Jordan has
the training and experience to undertake the training, and can allocate away the
time to undertake the training due to the flexibility of having a small business

Why your response did not receive full marks:

• Advantages of each training method was not discussed
• Disadvantages of each training method was not discussed
• The recommendation did not provide enough detail with relation to the
impact on the operations of Howell Electronics.
Question Five (10 marks)

(a) With reference to intellectual property and by using an example, define design.
(2 marks)
.
Descriptor Band Marks
Defines the term design, with the aid of an example. 2 2
The definition supplied is lacking detail and/or an example 1 0-1
is not provided.
Score
A design refers to the features of shape, configuration, pattern or ornamentation
which give a product a unique appearance and must be new and distinctive. (e.g.
the hourglass shape of a Coca Cola bottle).

Why your response did not receive full marks:

• The definition was not complete
• An example was not provided or appropriate to the definition

(b) Using examples, differentiate between a trademark and a patent. (4 marks)

Descriptor Band Marks

Two (2) marks per example for a maximum of four (4) marks.
Defines the respective term in detail and provides an 2 2
example to differentiate against the other term.
The definition supplied is lacking detail and/or an example 1 0-1
is not provided.
Trademark Patent Score
A trademark is a way of identifying a unique product or service. It’s a form of brand
protection which distinguishes between your products or services and those
belonging to your competitors. It can be a letter, number, word, phrase, sound,
shape, logo etc. or a combination of such. An example would be the “Golden
Arches” logo from McDonalds.

A patent is a licence conferred by a government to a right for the produce to

exclude others from making, using or selling an invention, for a period of time
(usually 20 years). The producer of the invention would have exclusive rights in the
production and sale of the invention. An example would be the EpiPen.

Why your response did not receive full marks:

• The definition provided was incorrect or not provided with enough detail.
• The example used is not relevant or suitable to the definition.
(c) Describe two (2) benefits of a business having a patent. (4 marks)

Descriptor Band Marks

Two (2) marks per benefit for a maximum of four (4) marks.
Describes a benefit of having a patent, making reference 2 2
to how it improves a KPI for a business.
Outlines a benefit of having a patent, with minimal 1 0-1
reference to KPIs.
Benefit 1 Benefit 2 Score
Advantages
* Gives the business the right to stop others from copying, manufacturing, selling
or importing your invention with your permission.
* Business can get protection for a pre-determined period, keeping competitors at
bay.
* The business can licence the patent for use by others to use it or you can sell the
licence rights.
* It creates a barrier of entry for potential competitors from entering the market.

Why your response did not receive full marks:

• The benefit described was not relevant or not detailed enough with respect
to patents.
• The KPIs were not addressed in the benefits, by the way of the process of
how the KPI would improve.

Question Six (10 marks)

(a) Define Vroom’s Expectancy Theory (2 marks)

Descriptor Band Marks

Defined Vroom’s theory in detail, with an outline of the 2 2
features of the Expectancy Theory.
A brief definition of Vroom’s theory, with minimal 1 0-1
exploration into the features of the theory.
Score
Vroom’s Expectation Theory set out to explain why individuals makes certain
choices, in which it suggests that workers will act a certain way because they are
motivated to select specific behaviours due to what they expect the result of their
behaviour to be. Vroom suggests three forces comprise motivation: expectancy,
instrumentality and valence.

Why your response did not receive full marks:

• The definition provide was not described in enough detail
• The definition did not discuss the features of the theory.
(b) According to Adams’ Equity Theory, discuss the impact on motivation based
on the measures that Hollis Corporate Travel has taken. (4 marks)

Descriptor Band Marks

Defines Adams Equity Theory, discusses a feature of 3 3-4
the theory and applies the theory into the case study,
determining the impact on motivation.
Makes a general statement about Adams Equity Theory 2 2
and applies the theory to the case study determining the
impact on motivation.
Minimal description about Adams Equity Theory and/or a 1 0-1
brief reference to the impact of motivation in the case
study.
Score
Adams Equity Theory is a motivation theory where it states that the influence of
other people’s situations will have an influence on the motivation of one’s self. This
is determined by analysing the input-to-output ratio between workers. Inputs
include effort, hard work, skill and ability; outputs include pay, salary and benefits.
If one person deems their input-to-output ratio lower than someone else’s, then
they become demotivated. In applying Adams’ theory to the case study, workers
can become demotivated easily as employees are able to take the commission
from another worker if they complete the transaction, even though the other worker
may have put the hard work in. This creates a mismatch in input-to-output ratios
and hence demotivation occurs.

Why your response did not receive full marks:

• The definition provided was not accurate or detailed enough
• The features of the theory were not discussed in detail.
• The application of the theory into the case study was not accurate or not
completed.

(c) Using Maslow’s Hierarchy of Needs, discuss how the measures taken by The
Wallbridge Travel Co. will impact staff motivation. (4 marks)

Descriptor Band Marks

Defines Maslow’s Hierarchy of Needs, discusses a 3 3-4
feature of the theory and applies the theory into the case
study, determining the impact on motivation.
Makes a general statement about Maslow’s theory and 2 2
applies the theory to the case study determining the
impact on motivation.
Minimal description about Maslow’s theory and/or a brief 1 0-1
reference to the impact of motivation in the case study.
Score
Maslow’s Hierarchy of Needs is a motivation theory based on the fulfilment of one
level of needs in order to achieve the next level of needs. There are five levels in
Maslow’s hierarchy (from bottom to top): physiological, safety, love/belonging,
esteem and self-acutalisation. At Wallbridge Travel Co., they currently provide
 their employees with several benefits in order to take care of their employees’
mental health and families. This allows the employees to fulfil the lower levels of
physiological and safety needs in Maslow’s hierarchy. The business also provides
a business mentorship programme, that allows its employees to achieve the higher
levels.

Why your response did not receive full marks:

• The definition provided was not accurate or detailed enough
• The features of the theory were not discussed in detail.
• The application of the theory into the case study was not accurate or not
completed.

SECTION TWO: EXTENDED ANSWER (25 marks)

Question One

(a) With the use of an example, define delegation. (2 marks)

Descriptor Band Marks

Defines delegation in the business context with the use of 2 2
an appropriate example.
The definition of delegation is not complete and/or an 1 0-1
appropriate example not provided.
Score
Delegation is the assignment of any authority to another person (normally to an
employee lower down the chain of command) to carry out specific activities. For
example, a store manager could delegate a task to a cashier, to go and complete
the banking for the day.

Why your response did not receive full marks:

• The definition provide was not described in enough detail
• The example was not provided/not appropriate.

(b) Differentiate between top, middle and front-line management. (3 marks)

Descriptor Band Marks

One (1) mark per type of management for a maximum of three (3) marks.
Defines the type of management and uses an example to 2 1
differentiate the different levels.
Provides a definition but does provide an example to 1 0-0.5
differentiate.
Top Middle Score
Front-line
Top management is the management at the highest point of the chain of
command, where they are responsible for delivering strategy and big-picture
thinking (e.g. CEO, Board of Directors). Middle management have a focus on
 delivering strategy so that it can be applied to front-line operations (e.g. area
managers). Front-line managers are responsible for the functional aspects of the
business, that would most likely deal with customers directly (e.g. store
manager).

Why your response did not receive full marks:

• Definition provided is not accurate
• An example is not provided to allow for differentiation.

(c) With examples, compare narrow and wide span of control. (4 marks)

Descriptor Band Marks

Two (2) marks per span of control for a maximum of four (4) marks.
Defines the respective span of control, makes reference 2 2
to subordinates having to report and uses an example.
Defines the respective span of control with minimal use of 1 0-1
an example and/or reference to the role of subordinates.
Narrow Wide
A narrow span of control occurs when managers are in control or responsible for a
small number of subordinates, which is representative of an organisational
structure with a longer chain of command. This occurs at the higher end of the
orgnaisational structure (e.g. CEO, Vice Presidents etc.) where there needs to be
direct supervision of subordinates completing customised or complicated work.

A wide span of control occurs when managers are in control or responsible for a
larger number of subordinates, which representative of an organisation with a
smaller chain of command. This occurs at the lower end of the organisational
structure (e.g. store manager, area manager) where a manager can be in charge
of multiple subordinates who are completing simpler tasks of work.

Why your response did not receive full marks:

• Definition provided is incomplete/inaccurate.
• Comparison was lacking detail due to lack of reference the number to
subordinates and/or the tasks completed by subordinates.
• Examples of roles employees in a narrow or wide span of control not
provided or inaccurate.
(d) Evaluate the suitability of functional and divisional organisational structures
when it comes to a company with operations in several countries. (9 marks)

Descriptor Band Marks

Comparison between Functional and Divisional Structures
Four (4) marks per structure for a maximum of eight (8) marks.
(1) Defines the organisational structure 4 4
(2) outlines an advantage;
(3) and disadvantage of each organisational structure;
(4) and applies the context in where that structure would
be suitable in accommodating operations across
countries.
Covers three of the four above points 3 3
Covers two of the four above points 2 2
Covers one or none of the four above points 1 0-1
Functional Divisional Sub-total
Descriptor Band Marks
Recommendation
Outlines a recommendation that makes reference to the 2 1
overall suitability of the chosen organisational structure to
operate across countries.
A brief outline on choosing the suitable structure with 1 0-0.5
minimal reference to the benefits of the structure to the
nature of operations.
Sub-total
Total
A functional structure separates the organisation into smaller groups based on the
separate functions of a business (e.g. manufacturing, sales, R&D, finance etc.).
Groups are divided into a specialised set of tasks and roles. Advantages include
that it allows for specialisation as people with similar skills are group and hence
leads to more efficient operations due to specialisation. Disadvantages include
rigid communication due to standardised operations, poor horizontal coordination,
difficult to coordinate functional units with organisational growth and the competing
interests of units could cause a lack of commitment. The operations across
borders with this structure would mean that each country’s operations will need to
have its own functional structure or a centralised structure where operations
overseas will need to co-ordinate to a central base/platform.

A divisional structure separates the organisation into different geographical

locations. It organises the activities of the business around geographical areas and
hence have each function of the business replicated in each country. This allows
for the application of regional strategies to be possible and allows for better
performance in regional markets due to better understanding of said markets. On
the other hand, decision making can become decentralised, hence communication
and co-ordination becomes delayed. In this case, this structure allows for the
business to operate across countries easier, which each group does what it needs
to operate based on the needs of that market.

Overall, the divisional structure would be the most suitable organisational structure
for a business that would be looking to have operations across several countries,
 as the business would be able to understand and adjust to the needs of the market
it operates in.

Why your response did not receive full marks:

• The organisational structure(s) were not defined
• The advantages of the structure(s) were not discussed
• The disadvantages of the structure(s) were not discussed
• Application of the structure to the situation was not completed
• The recommendation of the suitable organisational structure was not
discussed

(e) With reference to Herzberg’s Motivation-Hygiene Theory, differentiate

between the importance of financial and non-financial incentives in motivating
employees. (7 marks)

Descriptor Band Marks

Differentiation between financial and non-financial incentives
Three (3) marks per incentive for a maximum of six (6) marks.
(1) Defined the incentive; 3 3
(2) Discussed the effectiveness of the incentive by
making reference to Herzberg’s theory;
(3) Outlined an example to highlight the effectiveness.
Two of the above three points are addressed 2 2
One or none of the above three points are addressed 1 0-1
Functional Divisional Sub-total
Descriptor Band Marks
Definition of Herzberg’s Motivation Theory
Defines the theory, with a brief outline of the features 2 1
A brief definition of the theory provided 1 0-0.5
Sub-total
Total
Herzberg’s theory states that there are certain factors in the workplace that cause
job satisfaction while a separate set of factors cause dissatisfaction, all of which
act independently of each other. The factors that cause satisfaction are motivation
factors (achievement, interest in the job, recognition etc.), whilst the absence of
hygiene factors (working conditions, salary, security) cause dissatisfaction.

Financial incentives are rewards given by employers to employees for the work
they have completed and can come in various forms such as salary, bonuses and
commissions. According to Herzberg, the presence of financial rewards doesn’t
mean that employees will be motivated, because it only satisfies the hygiene
factors. If the level of financial reward is not adequate, the employees will be
demotivated. For example, if an employee works overtime but doesn’t get paid for
it, then they will be demotivated.

Non-financial incentives are incentives provided by employers to employees that

are not money-based in nature. They can come in the form of working conditions,
facilities, awards and recognition. According to Herzberg, non-financial rewards
can be both hygiene and motivation factors. Providing good working conditions
 and facilities can be classified as hygiene factors, so they won’t provide any
additional motivation, whereas awards and recognition are motivation factors
which demonstrate that the employee is valued for their contribution and hence will
become more motivated.

Why your response did not receive full marks:

• Herzberg’s theory was not defined.
• The definition(s) of the reward(s) were not provided/accurate.
• The application of the reward to the theory was not provided in enough
detail
• The use of an example to highlight the reward’s effectiveness was limited.

Question Two

(a) Using examples relating to Tristan’s business, describe two (2) elements of a
business plan. (4 marks)

Descriptor Band Marks

Two (2) marks per element for a maximum of four (4) marks.
The element of the business plan is described with the 2 2
aid of an example.
The element is outlined with the minimal or no use of an 1 0-1
example.
Element 1 Element 2 Total
Elements of a business plan: executive summary, vision statement, mission
statement, business concept, the market, operations strategy, financial plan,
human resources plan.

Why your response did not receive full marks:

• The element of the business plan was not correctly identified
• The element was not described in enough detail
• The example provided was not sufficient or relevant.
(b) Evaluate the suitability of Tristan choosing a sole trader or a partnership as is
form of business structure. (10 marks)

Descriptor Band Marks

Comparison between Sole Trader and Partnership
Four (4) marks per structure for a maximum of eight (8) marks.
(1) Defines the form of legal structure; 4 4
(2) Describes two advantages of the legal structure;
(3) Describes two disadvantages of the legal structure.
(1) Defines the form of legal structure; 3 3
(2) Describes an advantage of the legal structure;
(3) Describes a disadvantage of the legal structure.
Defines the form of legal structure and provides an 2 2
advantage of the legal structure used.
Provides one or none of the descriptors from Band 3. 1 0-1
Sole Trader Partnership Sub-total
Descriptor Band Marks
Evaluation
The suitable legal structure is chosen based on a 2 2
discussion of the advantages of the legal structure, with
reference to the case study.
A brief discussion is provided on the advantages of the 1 0-1
suitable legal structure.
Sub-total
Total
Sole trader is a form of legal structure that involves one person has the sole owner
of the business. Advantages include few legal formalities, profit taking, being your
own boss, privacy and personalised service. Disadvantages include unlimited
liability, limited sources of finance, high risks, workload and stress, limited
economies of scale and lack of continuity.

A partnership involves the creation of a business by two or more (up to 20)

partners, formed under a legally binding partnership agreement which determines
the split, responsibilities and ownership of the business. Advantages include
financial strength, specialisation of labour, financial privacy and cost-effectiveness.
Disadvantages include unlimited liability, a lack of continuity, prolonged decision-
making process and a lack of harmony.

The justification of the choice of legal structure needs to be made with reference to
the raising of $200,00 in finance, the development of the technology and his
specialisation in skills

Why your response did not receive full marks:

• The legal structures were not defined sufficiently
• Advantages and/or disadvantages were not described in detail
• Not enough advantages/disadvantages were provided
• An evaluation was not included in the response
• The evaluation did not make reference to the specific needs outlined in the
case study
(c) Using Tristan’s business as an example, describe the three (3) elements of a
contract. (6 marks)

Descriptor Band Marks

Two (2) marks per element for a maximum of six (6) marks.
The element of the contract is defined with the aid of an 2 2
example which is related to the case study.
Element of the contract is outlined, with minimal/no use of 1 0-1
an example that is related to the case study.
Intention Agreement Score
Consideration
Intention – The parties to an agreement must intent that their agreement will have
rights and responsibilities that the courts will enforce.
Agreement – For a contract to exist, there must be an offer by one party and the
acceptance of the offer by another party.
Consideration – The value given up when a contract is made. It can be in the
form of money, property or a promise to do something.

The example provided for each stage should be relevant to Tristan’s business
(e.g. Tristan undertakes an agreement with a programmer to deliver a service for
a certain amount, to deliver the final stage of his product)

Why your response did not receive full marks:

• The element of the contract provided is not correct
• The element was not defined in enough detail
• The example used was not relevant to the element of the contract.

(d) Describe the stage of the Product Life Cycle Tristan’s product is currently in
and outline two (2) challenges it may face in this stage. (5 marks)

Descriptor Band Marks

Description of PLC stage
The stage is identified correctly and described with 2 1
reference to sales/market share.
Above criteria not fulfilled 1 0-0.5
Sub-total
Challenges of the PLC stage
Two (2) marks per challenge for a maximum of four (4) marks
The challenge is correctly identified and outlined, with 2 2
reference made to an example that is relevant to the case
study.
The challenge at the stage is identified and outlined but 1 0-1
with minimal/no reference to an example.
Challenge 1 Challenge 2 Sub-total
Score
Tristan’s product is currently at the introductory stage of the product life cycle. This
is characterised by that his product has not entered the release/selling phase.
Once released, the product will have a low level of sales and associated costs will
be high.

Challenges faced at the introductory phase of the product life cycle include: high
costs when it comes to research and development and testing; the marketing costs
to launch the product are extremely high; brand and product recognition is quite
low; sales will be at its lowest point, generating poor cash flow; being the smallest
competitor in a saturated market could lead to being shut out by other competitors.

Why your response did not receive full marks:

• The stage of the PLC identified is incorrect
• The stage of the PLC was not made reference to costs/sales
• The challenges outlined for the stage are not relevant/incorrect
• The challenges were not discussed with reference to the case study