The Association of Business Executives QCF

The Business Environment

29 May 2012, Afternoon

1.

Time allowed: 3 hours.

5TBE0612

2.  Read the instructions at the top of each section carefully. The number of questions you have to answer is marked clearly at the top of each section. Do not answer more questions than instructed. 3.  The number of marks per question may vary. Marks for subdivisions of questions and the total marks for each question are shown in brackets after the question. 4.  No books, dictionaries, notes or any other written materials are allowed in this examination. 5.  Calculators, including scientific calculators, are allowed providing they are not programmable and cannot store or recall information. Electronic dictionaries and personal organisers are NOT allowed. 6.  Candidates who break ABE Examination Regulations (Conduct during the Examinations), or commit any misconduct, will be disqualified from the examinations. 7. Question papers must not be removed from the Examination Hall.

STRUCTURE OF PAPER: Answer BOTH sections SECTION A: Answer ALL SIX questions Q1-Q4 Q5-Q6 Maximum marks for Section A SECTION B: Answer ANY FOUR questions Maximum marks for Section B TOTAL MARKS AVAILABLE FOR THE PAPER Q7-Q12 5 marks each 10 marks each 40 marks 15 marks each 60 marks 100 marks

5TBE0612

ABE 2012

F/601/2811

This paper consists of TWO SECTIONS. Follow the instructions at the top of EACH section.

SECTION A You must answer ALL SIX questions in this section. Questions do not carry equal marks. The mark allocation is shown after each question. Section A is worth 40% of the total marks available for the paper.

Q1  Explain three important differences between a centrally planned economy and a market economy. (5 marks)

Q2  Explain the likely impact of a balance of payments deficit on the exchange rate of a countrys currency.  (5 marks)

Q3  Explain two reasons why a pressure group would want to influence the business decisions of a food company.  (5 marks)

Q4  Using examples, explain how a house-building company undergoes a transformation process from inputs into outputs. (5 marks)

Q5  Picture Clear Ltd is a successful growing company, manufacturing digital cameras. (a) Identify the stages of the life cycle model of an organisation. (4 marks)

(b)  Discuss three strategic priorities of Picture Clear Ltd in the growth phase of the life cycle.  (6 marks) (Total 10 marks)

5TBE0612

Q6  Designer Wear Ltd, a womens clothing company based in the UK, is planning to expand its business into a developing country. (a)  Discuss the impact of national culture on Designer Wear Ltd operations in the developing country.  (4 marks) (b)  Explain the different ways in which the changing role of women in society and in the workforce could affect Designer Wear Ltd both in the UK and overseas.  (6 marks) (Total 10 marks)

END OF SECTION A MAXIMUM MARKS FOR SECTION A: 40

Turn over to Section B

5TBE0612

[Turn over

SECTION B You must answer ANY FOUR questions in this section. Each question carries 15 marks. Section B is worth 60% of the total marks available for the paper.

Q7  Discuss, using examples, the impact of IT and internet-based technologies on each of the following: (i) business-to-business (B2B) commerce (ii) business-to-consumer (B2C) commerce (Total 15 marks)

Q8 Many governments have responded to the global banking crisis with tight fiscal policy. (a)  Using the circular flow model of an economy, discuss the possible impact of a tight fiscal policy on the GDP of an economy. (10 marks) (b) Give two examples of ways in which the incidence of tax can affect consumer behaviour. (5 marks) (Total 15 marks)

Q9 (a)  Describe two priorities of shareholders which could influence decision-making in the internal environment of an organisation. (6 marks) (b) Speedy Autoparts plc is a manufacturing company producing components for the car  industry.  Explain the impact of a rapidly changing external environment on Speedy Autoparts plcs operations. (9 marks) (Total 15 marks)

Q10 (a)  Explain how the oil industry spans the primary, secondary and tertiary sectors of the economy. (5 marks) (b) Discuss how deindustrialisation has affected developed economies such as the UK in  terms of output and employment. (10 marks) (Total 15 marks)

5TBE0612

Q11 (a)  Explain, using examples, what is meant by a trading bloc. (b) (i) Identify the advantages to a country of belonging to a trading bloc. 

(6 marks) (6 marks)

(ii) Identify the disadvantages to a country of being outside a trading bloc. (3 marks) (Total 15 marks)

Q12 The airline industry is under threat from a variety of sources.  Using Porters Five Forces model, analyse the competitive pressures on an airline. (15 marks)

END OF SECTION B MAXIMUM MARKS FOR SECTION B: 60

TOTAL MAXIMUM MARKS: 100 END OF QUESTION PAPER

5TBE0612

BLANK PAGE

5TBE0612

BLANK PAGE

5TBE0612

5TBE0612

691233