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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 6
M13/3/BUSMT/HP2/ENG/TZ0/XX
2213-5012
– 6 –
SECTION B
Answer
two
questions from this section.
3.
Construir
Construir
is a large construction company that uses empowerment, job enrichment and teamwork to
motivate its workers.
Commitment to quality is strong, and productivity is high.
The company makes substantial investment in the training and professional development of its
workers, who may receive both external and internal training:
External training takes place at a local university.
However, university training fees are rising.
Internal training is led by managers within each department.
However, some managers
do not feel
comfortable in this role.
Managers also conduct worker appraisals in order to monitor performance and reward success.
However, some managers feel that it takes too long to appraise workers appropriately; they also say
that for some workers the appraisal process can be very stressful.
The government is considering the construction of a bridge, which would take three years to complete.
This would be through a public-private partnership with
Construir
.
The government would pay half
of the cost of construction and would give
Construir
the right to charge a fee to drivers who use the
bridge.
Building the bridge, however, would represent financial and operational risks for
Construir.
The company will not be able to accept other construction projects in order to build the bridge.
Moreover, a general election is due next year and the current government is unpopular and not
expected to win.
If a new government is elected,
Construir
believes that the project may be cancelled.
Some local environmental pressure groups are currently campaigning against the bridge project,
arguing that government funds should be spent on health and education.
(a)
Define the following terms:
(i)
productivity
[2 marks]
(ii)
pressure groups
.
[2 marks]
(b)
Explain
two
non-financial rewards used at
Construir
to motivate workers.
[6 marks]
(c)
Analyse
two
benefits for
Construir
of a public-private partnership with the
government.
[6 marks]
(d)
Evaluate
Construir
’
s
training and appraisal methods.
[9 marks]
Page 7
M13/3/BUSMT/HP2/ENG/TZ0/XX
2213-5012
– 7 –
Turn over
4.
Oktopus Air (OA)
Oktopus Air
(
OA
) is an airline targeting both business and economy class passengers.
Customers
have praised
OA
for its ethical objectives, its commitment to below market prices for both market
segments and its mission statement: “In the air, we care for everyone!”.
Employees have praised
OA’s
Chief Executive Officer (CEO), Eythor Karlsson, for his situational
leadership style.
OA’s
flights are usually full and customer feedback is excellent.
Two social changes are affecting
OA
:
Obesity is increasing.
Very obese passengers are finding difficulty fitting into seats.
On full
flights, some passengers sitting next to a very obese passenger have complained about a lack of
space.
OA
has decided to charge very obese passengers for two seats.
A refund of one seat will
be given if the flight is not full.
Pressure groups representing very obese people have argued that
OA
is acting unethically.
Eythor defended the decision, arguing that competitors were already
carrying out the same practices.
He added that very obese passengers can create safety problems
during an emergency evacuation of the airplane.
The second change is the increasing number of families with young children travelling in business
class.
Business passengers are complaining that young children are too noisy and are threatening
to fly with competitor airlines.
Eythor has suggested to
OA’s
Board of Directors that a market gap
could be filled if
OA
offered a family-only service, once a day, with additional play areas for young
children and hence fewer passenger seats.
Eythor has indicated that
OA
will need to raise prices
for this service, change its promotional method for this service and create a new marketing mix.
Some consumer groups recognize the good intentions of a family-only service; however they fear
it could actually increase the hostility towards families with young children on other flights that
OA
offers.
(a)
Describe
one
possible above the line and
one
possible below the line
promotional method for
OA
.
[4 marks]
(b)
Explain
three
stakeholder conflicts at
OA
.
[6 marks]
(c)
Analyse how the
two
social changes could affect
OA’s
ability to fulfil its
mission statement: “In the air, we care for everyone!”.
[6 marks]
(d)
Discuss an appropriate marketing mix for
OA’s
proposed new “family-only
service”.
[9 marks]
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