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GCE JUN 2006 : (AS 3) External Influences Business Enterprise

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Centre Number 71 Candidate Number ADVANCED SUBSIDIARY (AS) General Certificate of Education 2006 GCE Applied Business assessing External Influences on the Business Enterprise A3B31 Assessment Unit AS 3 [A3B31] THURSDAY 8 JUNE, MORNING TIME 1 hour 30 minutes. INSTRUCTIONS TO CANDIDATES Write your Centre Number and Candidate Number in the spaces provided at the top of this page. 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 Question 1. 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. 1 15/12/05RTS ADVICE FOR CANDIDATES You are advised to take account of the marks for each part-question in allocating the available examination time. If you do not have sufficient space to complete your answers, you may use the additional pages at the back of the booklet. A3B3S6 2349 For Examiner s use only Question Number 1 2 3 4 5 6 Total Marks Marks 1 Explain the sector of the market that Kerry Foods mainly operates in, supporting your answer with an example from the Case Study. Examiner Only Marks Remark ____________________________________________________________ ____________________________________________________________ ____________________________________________________________ ____________________________________________________________ ____________________________________________________________ ____________________________________________________________ ____________________________________________________________ _________________________________________________________ [4] 2 Discuss four reasons why the government might try to ensure that organisations such as Kerry Group do not harm the environment. ____________________________________________________________ ____________________________________________________________ ____________________________________________________________ ____________________________________________________________ ____________________________________________________________ ____________________________________________________________ ____________________________________________________________ ____________________________________________________________ ____________________________________________________________ ____________________________________________________________ 1 15/12/05RTS ____________________________________________________________ ____________________________________________________________ A3B3S6 2349 2 [Turn over ____________________________________________________________ Examiner Only Marks Remark ____________________________________________________________ ____________________________________________________________ ____________________________________________________________ ____________________________________________________________ ____________________________________________________________ ____________________________________________________________ ____________________________________________________________ ____________________________________________________________ ____________________________________________________________ ____________________________________________________________ 1 15/12/05RTS ________________________________________________________ [12] A3B3S6 2349 3 [Turn over 3 Discuss four factors that may have led to the increase in demand for Kerry Group s products. Examiner Only Marks Remark ____________________________________________________________ ____________________________________________________________ ____________________________________________________________ ____________________________________________________________ ____________________________________________________________ ____________________________________________________________ ____________________________________________________________ ____________________________________________________________ ____________________________________________________________ ____________________________________________________________ ____________________________________________________________ ____________________________________________________________ ____________________________________________________________ ____________________________________________________________ ____________________________________________________________ ____________________________________________________________ ____________________________________________________________ ____________________________________________________________ ____________________________________________________________ ____________________________________________________________ ____________________________________________________________ 1 15/12/05RTS ____________________________________________________________ ____________________________________________________________ ________________________________________________________ [12] A3B3S6 2349 4 [Turn over 4 Kerry Group operates on a global scale. Discuss four ways in which a change in exchange rates would affect an organisation such as the Kerry Group. Examiner Only Marks Remark ____________________________________________________________ ____________________________________________________________ ____________________________________________________________ ____________________________________________________________ ____________________________________________________________ ____________________________________________________________ ____________________________________________________________ ____________________________________________________________ ____________________________________________________________ ____________________________________________________________ ____________________________________________________________ ____________________________________________________________ ____________________________________________________________ ____________________________________________________________ ____________________________________________________________ ____________________________________________________________ ____________________________________________________________ ____________________________________________________________ ____________________________________________________________ ____________________________________________________________ ____________________________________________________________ 1 15/12/05RTS ____________________________________________________________ ____________________________________________________________ ________________________________________________________ [12] A3B3S6 2349 5 [Turn over 5 Evaluate four strategies that Kerry Group has used to enhance its leadership position in global food ingredients and flavour markets and to further develop its consumer foods business in Europe (Paragraph 9). Examiner Only Marks Remark ____________________________________________________________ ____________________________________________________________ ____________________________________________________________ ____________________________________________________________ ____________________________________________________________ ____________________________________________________________ ____________________________________________________________ ____________________________________________________________ ____________________________________________________________ ____________________________________________________________ ____________________________________________________________ ____________________________________________________________ ____________________________________________________________ ____________________________________________________________ ____________________________________________________________ ____________________________________________________________ ____________________________________________________________ ____________________________________________________________ ____________________________________________________________ ____________________________________________________________ 1 15/12/05RTS ____________________________________________________________ ____________________________________________________________ ____________________________________________________________ A3B3S6 2349 6 [Turn over Examiner Only ____________________________________________________________ Marks Remark ____________________________________________________________ ____________________________________________________________ ____________________________________________________________ ____________________________________________________________ ____________________________________________________________ ____________________________________________________________ ____________________________________________________________ ____________________________________________________________ ____________________________________________________________ ____________________________________________________________ ____________________________________________________________ ____________________________________________________________ ____________________________________________________________ ____________________________________________________________ ____________________________________________________________ ____________________________________________________________ ____________________________________________________________ ____________________________________________________________ ____________________________________________________________ ____________________________________________________________ ____________________________________________________________ 1 15/12/05RTS ____________________________________________________________ ____________________________________________________________ ________________________________________________________ [20] A3B3S6 2349 7 [Turn over 6 Evaluate Kerry Group s strategy of takeovers as a way of managing competition. Examiner Only Marks Remark ____________________________________________________________ ____________________________________________________________ ____________________________________________________________ ____________________________________________________________ ____________________________________________________________ ____________________________________________________________ ____________________________________________________________ ____________________________________________________________ ____________________________________________________________ ____________________________________________________________ ____________________________________________________________ ____________________________________________________________ ____________________________________________________________ ____________________________________________________________ ____________________________________________________________ ____________________________________________________________ ____________________________________________________________ ____________________________________________________________ ____________________________________________________________ ____________________________________________________________ ____________________________________________________________ 1 15/12/05RTS ____________________________________________________________ ____________________________________________________________ A3B3S6 2349 8 [Turn over Examiner Only ____________________________________________________________ Marks Remark ____________________________________________________________ ____________________________________________________________ ____________________________________________________________ ____________________________________________________________ ____________________________________________________________ ____________________________________________________________ ____________________________________________________________ ____________________________________________________________ ____________________________________________________________ ____________________________________________________________ ____________________________________________________________ ____________________________________________________________ ____________________________________________________________ ____________________________________________________________ ____________________________________________________________ ____________________________________________________________ ____________________________________________________________ ____________________________________________________________ ____________________________________________________________ ____________________________________________________________ ____________________________________________________________ 1 15/12/05RTS ____________________________________________________________ ________________________________________________________ [20] A3B3S6 2349 9 [Turn over Extra page (if needed) Examiner Only Marks Remark ____________________________________________________________ ____________________________________________________________ ____________________________________________________________ ____________________________________________________________ ____________________________________________________________ ____________________________________________________________ ____________________________________________________________ ____________________________________________________________ ____________________________________________________________ ____________________________________________________________ ____________________________________________________________ ____________________________________________________________ ____________________________________________________________ ____________________________________________________________ ____________________________________________________________ ____________________________________________________________ ____________________________________________________________ ____________________________________________________________ ____________________________________________________________ ____________________________________________________________ ____________________________________________________________ 1 15/12/05RTS ____________________________________________________________ ____________________________________________________________ A3B3S6 2349 10 [Turn over Extra page (if needed) Examiner Only Marks Remark ____________________________________________________________ ____________________________________________________________ ____________________________________________________________ ____________________________________________________________ ____________________________________________________________ ____________________________________________________________ ____________________________________________________________ ____________________________________________________________ ____________________________________________________________ ____________________________________________________________ ____________________________________________________________ ____________________________________________________________ ____________________________________________________________ ____________________________________________________________ ____________________________________________________________ ____________________________________________________________ ____________________________________________________________ ____________________________________________________________ ____________________________________________________________ ____________________________________________________________ ____________________________________________________________ 1 15/12/05RTS ____________________________________________________________ ____________________________________________________________ A3B3S6 2349 11 [Turn over Extra page (if needed) Examiner Only Marks Remark ____________________________________________________________ ____________________________________________________________ ____________________________________________________________ ____________________________________________________________ ____________________________________________________________ ____________________________________________________________ ____________________________________________________________ ____________________________________________________________ ____________________________________________________________ ____________________________________________________________ ____________________________________________________________ ____________________________________________________________ ____________________________________________________________ ____________________________________________________________ ____________________________________________________________ ____________________________________________________________ ____________________________________________________________ ____________________________________________________________ ____________________________________________________________ ____________________________________________________________ ____________________________________________________________ 1 15/12/05RTS ____________________________________________________________ ____________________________________________________________ S 12/05 600 302507(139) [Turn over ADVANCED SUBSIDIARY (AS) General Certificate of Education 2006 GCE Applied Business Case Study Assessment Unit AS 3 assessing External Influences on the Business Enterprise [A3B31] THURSDAY 8 JUNE, MORNING You must use this clean copy of the Case Study in the examination and not your own annotated copy. A3B31CSI A3B3S6 2349.02 CSI Kerry Group 1 Kerry Group has been described as Ireland s leading food processing organisation. The group is engaged in the processing and distribution of consumer food products and food ingredients. 2 Kerry Group s headquarters are in Tralee, Ireland, but it employs more than 18 000 staff throughout its manufacturing, sales and technical centres across Europe, North America, South America, Australia, New Zealand and Asia Pacific. The group supplies over 10 000 food and food ingredients products to customers in more than 80 countries worldwide. This is achieved through its 130 manufacturing facilities which are located in 19 different countries throughout the world. 3 The Group has grown both organically and also through a series of strategic takeovers. The first of these takeovers was the commissioning of a dairy and ingredients plant in Listowel, Ireland in 1972. The group has been able to sustain profitable growth and its current annual sales are in excess of 3 billion. Kerry Group plc was launched as a public company in 1986 and is listed on the Dublin and London Stock Markets. s 3000 Turnover 1986 - 2004 ( million) 202 222 302 426 446 515 630 670 673 914 940 1024 1320 1474 1573 1801 2253 2216 2477 2000 1000 0 A3B3S6 2349.02 CSI 2 [Turn over The Kerry Group is made up of five principal divisions: 4 Kerry Foods This division is responsible for the sale and marketing of pork and bacon products, convenience meat products and fresh dairy products. The division has established strong strategic and commercial alliances with its retail partners in various European markets. Through organic growth and through a series of acquisitions, Kerry Foods has become a leading producer of chilled consumer food products in Ireland and the UK. Kerry Food s brands are household names in the UK and Irish markets and they include names such as Walls, Mattessons, Richmond, Cheestrings, Denny, Dawn, Ballyfree, Low-Low and Kerry Spring. 5 Kerry Ingredients This division produces speciality food ingredients and dairy ingredients. The division has grown to become one of the largest and most technologically advanced manufacturers of speciality ingredients in the world. Spanning all major food categories, Kerry Ingredients provides ingredients to food manufacturers and foodservice companies. The division excels in value creation for its customers A3B3S6 2349.02 CSI 3 [Turn over[Turn over 6 Kerry s Agribusiness This division works closely with the Group s 5700 milk suppliers in the South West of Ireland and ensures that quality milk is produced efficiently. It does this whilst recognising that a vibrant rural community in a sustainable unspoilt environment is maintained . The range of products and services provided by Kerry Agribusiness is targeted to optimise profitability at farm level and achieve least cost production. 7 Mastertaste This division has its headquarters in Rosemont, Chicago, USA and it is focused on becoming the premier food flavour supplier. This division has already achieved strong growth and a reputation for unrivalled customer service by providing a wide range of innovative, high quality, authentic flavours for food and drinks. 8 Kerry Bio-Science This division serves the pharmaceutical, culinary, snack, bakery, confectionery, dairy and beverage markets worldwide. It complements the Group s existing Kerry Ingredients businesses, and focuses on the taste, texture and nutrition of foods. 9 Through a commitment to excellence, technological creativity, total quality, superior customer service and the wholehearted commitment of all employees, the Kerry Group aims to continue to enhance its leadership position in global food ingredients and flavour markets and to further develop its consumer foods business in Europe. 10 Dairy Produce Packers Ltd (DPP) One of Kerry Group s takeovers, Dairy Produce Packers Ltd, is based in Coleraine, Northern Ireland. It is one of the largest producers of processed cheese in Europe and supplies to over 20 countries worldwide, in the catering, retail and industrial markets. It has an annual production of over 25 000 tonnes of processed cheese and employs 260 people. 11 DPP s philosophy is to produce quality products which match the customer s requirement . The company is committed to continual product improvement and a new product development programme. Part of its success has been the result of working closely with customers to promote and develop new products and markets. In addition DPP introduced a strategy that sought to minimize waste at its plant. This was mainly a voluntary initiative but it was also in response to government environmental policies. The strategy not only achieved desired cost savings but it also resulted in environmental benefits. Specifically the strategy saved the operation over 46 000 per year and reduced waste sent to landfill sites by 140 tonnes per year and decreased water use by 14 000 m3 per year. S 12/05 600 302507(140) [Turn over

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Additional Info : Gce Applied Business June 2006 Assessment Unit AS 3 - External Influences Business Enterprise
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