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GCE MAY 2010 : (AS 3) External Influences Business Enterprise

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ADVANCED SUBSIDIARY (AS) General Certificate of Education 2010 GCE Applied Business assessing External Influences on the Business Enterprise A3B31 Assessment Unit AS 3 [A3B31] MONDAY 17 MAY, AFTERNOON TIME 1 hour 30 minutes. INSTRUCTIONS TO CANDIDATES Write your Centre Number and Candidate Number on the Answer Booklet provided. Answer all six questions. INFORMATION FOR CANDIDATES The total mark for this paper is 80. Quality of written communication will be assessed in all questions except Questions 1 and 2. Figures in brackets printed down the right-hand side of pages indicate the marks awarded to each question or part question. This paper is accompanied by a Case Study. You must not use your own annotated copy of this Case Study. ADVICE FOR CANDIDATES You are advised to take account of the marks for each part-question in allocating the available examination time. 4945 BLANK PAGE 4945 2 [Turn over Answer all six questions 1 (a) Identify the market sector in which Tobermore Concrete Products operates and explain the characteristics of that sector. [3] (b) Explain, using an example, what is meant by the term unfair competition. [4] 2 Explain three ways in which an organic growth strategy has enabled Tobermore Concrete Products to improve competitiveness. [6] 3 (a) Identify and explain two ways in which changes in the exchange rate between sterling [6] ( ) and the euro ( ) will affect the profitability of Tobermore Concrete Products. (b) Identify and explain three possible trade barriers which Tobermore Concrete Products might face, if the company decided to conduct trading operations in markets outside the European Union. [9] 4 Analyse four factors that might cause Tobermore Concrete Products to change the quantities of goods that it supplies. [16] 5 Discuss one benefit and one drawback of each of the following strategies, which could be used to improve the competitiveness of Tobermore Concrete Products: (i) Vertical Integration (ii) Horizontal Integration. 6 [16] Evaluate the extent to which the 10m expansion programme undertaken by Tobermore Concrete Products has affected five stakeholder groups. [20] THIS IS THE END OF THE QUESTION PAPER 4945 3 [Turn over 1847-008-1 [Turn over ADVANCED SUBSIDIARY (AS) General Certificate of Education 2010 GCE Applied Business Case Study Assessment Unit AS 3 assessing External Influences on the Business Enterprise [A3B31] MONDAY 17 MAY, AFTERNOON You must use this clean copy of the Case Study in the examination and not your own annotated copy. A3B31CSI 4945.02 TOBERMORE CONCRETE PRODUCTS LIMITED Tobermore Concrete Products specialises in the production and distribution of paving and walling products, for use in the construction and related markets. During 2007, the company announced that it would undertake a project, costing 10m, aimed at expanding production facilities and increasing employment opportunities. The Tobermore site houses not only the production plant, but also the Head Of ce and a showroom. Once completed, the products are then distributed to customers in the various geographical markets in which the company operates. Tobermore Concrete Products also has of ces/ showrooms in various locations including Bangor (Co. Down), Republic of Ireland (Cork, Dublin and Galway), England (Leyland) and Scotland (Falkirk). During 2005, Tobermore Concrete Products received the UK Business Excellence Award. In 2007, the company gained the European Foundation for Quality Management Award (EFQM). A company representative stated: These awards, organised by the European Foundation for Quality Management are the most prestigious of their kind in Europe and, for our company, this represents another milestone in our journey towards organisational excellence and many years of hard work by our staff . In 2009, the Managing Director, David Henderson said that the rm had recently enjoyed doubledigit growth every year. He claimed that growth had been boosted by strong sales in Northern Ireland and also in the Republic of Ireland where the company had bene ted from a construction boom at that time. Mr Henderson went on to con rm that it was important to invest in the company, in order that: ... we have the capability not only to meet today s demands, but also to meet the requirements of our aggressive [organic] growth strategy . Following its announcement in 2007, Tobermore Concrete Products reported that it had successfully completed the rst phase of the expansion. The construction of a 3500 m2 manufacturing facility on land adjacent to the Tobermore site now houses an advanced block paving plant. The second phase of the expansion project, which was completed during the rst half of 2009, involved the purchase and installation of a state-of-the-art slab making machine. It is anticipated that the completion of the 10m expansion project would enable the company to increase manufacturing capacity by 50% and provide opportunities to extend the product range. Tobermore Concrete Products reported sales turnover amounting to 37m and 43.75m for the nancial years 2007 and 2008 respectively. This is as a result of sales of paving and walling products in a variety of markets such as property development, home improvement and government infrastructure projects. Whilst the Republic of Ireland market represents a signi cant portion of the company s revenues/market share, it is however exposed to a degree of nancial risk due to changes in the exchange rate between sterling ( ) and the euro ( ). 4945.02 2 [Turn over Although the company distributes all products from the production plant in Tobermore, it operates a number of showrooms, through which it can display the paving and walling product ranges to customers to good effect. Its products have been used in many high pro le locations including The K Club in Co Kildare (Republic of Ireland), Hastings Hotels (Belfast), a number of major retail parks and a range of housing schemes. Tobermore Concrete Products has successfully addressed the needs of customers by focusing on quality, product availability and customer service. The company achieves this through the sale of market-leading products, an effective national distribution network and rst class technical support. Adapted from: Tobermore Concrete Products Ltd www.tobermore.co.uk/index.cfm/section/news/news_key/555/ 4945.02 3 [Turn over 1847-008-2 [Turn over

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Additional Info : Gce Applied Business May 2010 Assessment Unit - External Influences Business Enterprise
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