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Business and management paper 2 HL 2013 May.pdf
Business_and_management_paper_2_HL_2013_May.pdf
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Business_and_management_paper_2_HL_2013_May.pdf-M13/3/BUSMT/HP2/ENG/TZ0/XX BUSINESS AND MANAGEMENT HIGHER LEVEL
Business and management paper 2 HL ...
Business_and_management_paper_2_HL_2013_May.pdf-M13/3/BUSMT/HP2/ENG/TZ0/XX BUSINESS AND MANAGEMENT HIGHER LEVEL
Page 8
M13/3/BUSMT/HP2/ENG/TZ0/XX
2213-5012
– 8 –
5.
Metro Town (MT)
Metro Town
(
MT
) is a football (soccer) club that has exceeded all expectations by winning a national
football cup competition.
MT
is managed by Dave Mater and the football team is captained by his
son Wayne.
MT
had faced closure in 2012 due to cash-flow problems.
However, the cup win has
provided much needed revenue to pay players’ wages and also profit to finance working capital.
MT’s
stadium is old and needs repair.
The club had faced bankruptcy because Dave had not followed
budgets.
For example, as part of its commitment to corporate social responsibility,
MT
spent too
much on social marketing to encourage healthy eating and youth sport participation in the local area.
Dave had created an open informal organizational culture at
MT
.
He had introduced a matrix
structure with Wayne conducting most of the training sessions.
Player turnover at the club was very
low.
However, a few high profile players, disliking Dave’s management approach, have threatened
to leave
MT
.
However, the cup success and the possibility of a joint venture with another club has
encouraged them to stay.
MT’s
cup success has attracted the interest of a larger club
Dynamo.
Last year
Dynamo
lost many
games and as a result ticket sales fell.
Dynamo’s
Chief Executive Officer (CEO), Gary Driver, has
proposed to Dave a joint venture.
Dynamo
and
MT
would share a new stadium financed by
Dynamo
.
It would provide both clubs with modern training facilities, which would help all players to become
more skilled.
Dave was interested and at a team meeting at his home he proposed the idea.
However,
he argued that the
Dynamo
culture, which is more centralized and autocratic, could lead to cultural
clashes.
Then unexpectedly, without consulting Dave, his son Wayne decided to sign a two-year
contract to play (work) for
Dynamo’s
football team.
(a)
(i)
Define the term
social marketing
.
[2 marks]
(ii)
Identify
two
characteristics of a matrix structure.
[2 marks]
(b)
Explain the role that budgets could play in solving the cash-flow problems at
MT.
[6 marks]
(c)
Using
two
appropriate motivation theories, analyse player motivation at
MT.
[6 marks]
(d)
Advise Dave on the proposal for a joint venture with
Dynamo
.
[9 marks]
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