EXAM

Question 1

What sector is a MNC in?

Answer 1

The private sector

Question 2

Why do PLC’s want to expand into MNC’s?

Answer 2

To reduce production costs - cheaper labour/land

Penetrate new markets

Escape government regulation at home

Question 3

What is a MNC?

Answer 3

Operate in more than one country

Question 4

What is desk research?

Answer 4

Information that already exists

Question 5

Advantages and disadvantages of desk research?

Answer 5

Advantages
-cost effective

Disadvantages

• old info therefore out of date
• may not be specific to your needs
• can be biased

Question 6

What are the benefits of market research?

Answer 6

Helps businesses to make informed decisions so that product launches are a success

Reduces the risk of an unsuccessful product launch

Customers feel valued as their opinions are taken into consideration

Question 7

Desk research can be qualitative or quantitative, what is the difference?

Answer 7

Qualitative is based on someone’s opinion, quantitative is factual - can be measured/counted

Question 8

What is field research?

Answer 8

Where someone physically goes out and collects new and specific information

Primary and first hand

Question 9

Advantages of field research?

Answer 9

Advantages

• Reliable, relevant and specific
• Valuable as specific to your purpose/organisation

Disadvantages
-Costly and time consuming

Question 10

Name the methods of field research?

Answer 10

Questionnaire/survey
Personal interview
Hall tests
Focus groups

Question 11

Describe questionnaires/surveys and the advantages/disadvantages?

Answer 11

Involves asking people their opinions through a serious of questions.

Advantages

• inexpensive
• large geographical area can be targeted

Disadvantages

• not always a high response level
• clarification can’t be gained so questions may be skipped

Question 12

Describe personal interview and it’s advantages/disadvantages?

Answer 12

When people meet face-to-face and a number of questions will be asked - usually between a manager and potential employee.

Advantages -
Clarification can happen if questions are not understood
Information is obtained instantly

Disadvantages -
Time consuming
Expensive as interviewers need to paid
Analysis can take a long time

Question 13

Describe hall tests and their advantages/disadvantages

Answer 13

A product is given to consumers to test out, they can give feedback and opinions.

Advantages -
Diverse group can be asked
First hand information

Disadvantages -
People may feel they need to give positive feedback

Question 14

Describe focus groups and their advantages/disadvantages

Answer 14

When a group of people are asked for their views on a product/topic

Advantages -
First hand information is gathered
Lots of opinions will be gathered

Disadvantages -
People may feel they can’t disagree or share bad opinions

Question 15

What is random sampling and it’s advantages/disadvantages?

Answer 15

This involves randomly selecting people from a list, these people then take part in a method of field research.

Advantages -
No chance of bias as it’s a random group
Many opinions and views can be gathered

Disadvantages -
Group is made up of all different target markets:unfocused
Doesn’t take into consideration personal differences e.g. age

Question 16

What is quota sampling and it’s advantages/disadvantages?

Answer 16

People are selected based on certain characteristics: age, gender, etc

Advantages -
Less expensive to carry out compared with random sampling as fewer resources are needed
Results will be focused as the group is specific

Disadvantages -
May have bias results as group has been specifically selected
All members of group have the same characteristics, they may all have the same views and opinions

Question 17

What is traditional appraisals and it’s advantages/disadvantages?

Answer 17

A 2-way meeting between 2 members of staff to discuss the employees performance and set targets for the future.

Advantages -
Positive feedback can motivate employee
Strong relationships can be formed

Disadvantages -
Negative feedback can demotivate employee
Areas of development being highlighted can stress the employee
Time consuming

Question 18

What are peer to peer appraisals and their advantages/disadvantages?

Answer 18

When the appraisal is carried out by a colleague at the same level in the organisation

Advantages -
Relaxed as feedback is given by a colleague

Disadvantages -
Personal relationships could interfere

Question 19

What is a 360 degree appraisal and it’s advantages/disadvantages?

Answer 19

Conducted by the HR manager or line manager, fellow colleagues are also interviewed about the employees performance

Advantages -
A complete employee profile is gained

Disadvantages -
Some employees may find it difficult to be critical about their colleagues

Question 20

Describe VLE (virtual learning environment) and it’s advantages/disadvantages

Answer 20

Allows employees to access training materials online.

Advantages -
Access training materials
Submit assignments and assessments
Chat with other learners or experts
Can be accessed from anywhere

Disadvantages -
Costly to set up

Question 21

How can cash flow be improved?

Answer 21

Find a cheaper supplier
Sell any unused assets
Apply for a loan from the bank
Offer discounts for cash paying customers
Increase advertising

Question 22

What are the advantages of inventory management systems?

Answer 22

They ensure there is enough stock available when needed

Ensure production does not stop

Avoid delays

Ensure overstocking doesn’t happen

Avoids stock deteriorating

Question 23

What is labour intensive and it’s advantages/disadvantages?

Answer 23

Where a business uses a larger proportion of human input than machinery

For creative industries

Advantages -
No expensive equipment
Unique products

Disadvantages -
Expensive and time consuming to recruit and train
Training takes time
Quality can vary - mistakes can happen

Question 24

What is capital intensive and it’s advantages/disadvantages?

Answer 24

Where the production process relies more on machinery and equipment instead of human input

Advantages -
Can work 24/7
Standardised quality
Saves wages

Disadvantages -
Machinery/equipment is expensive and breakdowns can happen
Customisation is difficult

Question 25

What do qualify standard stamps show?

Answer 25

That the business has met the agreed quality/safety standards.

Business is therefore viewed in a good light, generating more sales.

Question 26

How can technology be used when managing people?

Answer 26

Internet - to advertise vacancies
Video-conferencing - to interview
Presentation software - for meetings
Databases - store employee details

Question 27

Describe the political factor

Answer 27

Government decisions can influence a business

-changes to law, legislation etc

Question 28

Describe the economical factor

Answer 28

Anything that encourages people to spend or not spend

Boom - high demand
Recession - unemployment is high therefore demand falls
Recovery - sales increase as employment does

Question 29

Describe the social factor

Answer 29

The way in which society changes - consumers wants and needs

Question 30

Describe the technological factor

Answer 30

Increased use of social media etc

Businesses need wifi, cloud computing, social media etc

Question 31

Describe the environmental factor

Answer 31

Businesses need to act in an ethical and environmental way

Recycle etc

Question 32

Describe the competitive factor

Answer 32

Competition from other business

To compete, business can:
Alter prices to attract customers
Improve products
Advertise