Unit 2 - Practice Exam Flashcards
1A - Outline one legal requirement, other than in relation to staffing, that Mark and Patricia would have had to consider when establishing Marmaduke’s.
Mark and Patricia should consider their legal requirements to the Australian Taxation Office
(ATO), they would need to make sure that they have registered for the Goods and
Services (GST) and complete their income tax requirements for income earnt form
Marmaduke’s café.
1B - Outline one factors that Mark and Patricia would need to take into account when choosing appropriate suppliers.
When choosing suppliers Mark and Patricia would need to consider is the quality of the coffee that they are purchasing so that it meets the expectations of their customers so they can continue to make sales.
1C - During the planning phase of Marmaduke’s, Mark and Patricia’s friend, Adam, provided them with the following piece of advice:
‘There is no need to set up a separate bank account for Marmaduke’s business transactions. Save yourself the cost of additional bank fees and the confusion of having two bank accounts and just use your personal bank account.’
Do you agree with Adam’s advice? Justify your answer.
I disagree with this statement because if the business transactions are mixed with the
personal transactions of Mark and Patricia, it will then make it difficult to establish the specific financial performance of Marmaduke’s café as the transactions will need to be
separated out which will require more work and increase the chance of mistakes being
made.
2A - Recommend one market research practice that Maggie Tech could use to obtain feedback from customers who purchased the Kitchen Buddy. State one reason for your recommendation.
Margaret could use the marketing technique of a survey where she could ask customers about her Kitchen Buddy device that they have purchased, so that she could feedback about what is good and bad about it including price. This information would enable Margret to improve it and also to know who are best people to target it towards which
could lead to an increase in her sales of it.
2B - Using an example from the case study, explain the importance for Maggie Tech of maintaining a positive relationship with its customer base.
Margret has had complaints about the quality of the knife part of the early produced kitchen buddy. It is important that Margaret deals with this complaint to the satisfaction of these
customers and improves that production of new units to overcome this problem as she will need to have a positive customer relationship as they will them provide positive reviews of the production and give good feedback to their friends that can lead to an increase in sales
and then profit to the business.
3A - Define the term ‘job analysis’ and explain its relationship to job design
Job analysis is the study of an employee’s job to establish the duties performed, time taken
for each duty, the responsibility involved, and the equipment needed. The relationship to job design from job analysis is that the analysis will tell management about what is
involved in undertaking a job within the business so that it can be designed around what has been identified as part of the analysis process.
3B - Describe one legal obligation in relation to staffing a business with which David and Sean
have to comply.
One legal requirement for David and Sean in running Awesomeness Park is to provide their staff with a safe working environment free of risk to meet the requirements of the Occupational Health and Safety Act 2004 (Vic).
Propose and justify one selection method that would be suitable for David and Sean to use to assess candidates for the two new positions
Given that David and Sean need to fill new management positions of marketing and finance
within Awesomeness Park I would suggest that they should use external selection as these
are new management positions and current employees are unlikely to have these skills. By
also employing outside applicants, it is an opportunity for new ideas to be introduced to the
business which can further enhance its ability to market to new groups and also be up to date with any current finance requirements.
Q4 - Describe one technological or global issue that could affect decision-making at Nike when
establishing a new retail store or expanding into a new market.
A global issue that Nike will face if it chooses to establish a new store in a new market is the need to consider is the added cost and time to transport its products to the new stores. This could be an added cost to consider in the price of the products to compete with local brands and that there may be a delay in getting stock to these stores also.
Q5 - Explain one benefit and one limitation for Nike of choosing suppliers that meet the
company’s corporate social responsibility objectives.
Being corporate socially responsible for Nike in choosing suppliers means that any selected
supplier must operating above the minimum legal requirements and be seen by the community as being ethical in how they treat their staff and source their inputs. A benefit for Nike in taking this stance is that customers who hold the same values are likely to purchase from them leading to higher sales and profits. A limitation of Nike taking this stance is that it could be more difficult to find an ethical supplier which could lead to higher costs and
problems with sourcing the items needed which can lead to higher costs and then a lower net profit.
Q6 - Nike uses a premium pricing strategy involving high prices based on an approach that
establishes Nike products as higher in quality and value than competing products.
Propose and justify a different strategy Nike could use to set the selling price of a new product in its sportswear range.
It would be important for Nike to be able to compete with its competitors for their new sportswear range. I suggest the Nike should use price leadership and competition to set its
price to at least match or better its competitors as this will allow the public to purchase its new range and then be able to communicate the product benefits to their friends so that it will get a positive reputation in the market. This positive reputation should lead to increased
sales and profits for Nike and once its products are established in the market it can consider going back to premium pricing model.
