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GCE JAN 2008 : (AS 1) Objectives and the Business Environment

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ADVANCED SUBSIDIARY (AS) General Certificate of Education 2008 Business Studies assessing Module 1: Objectives and The Business Environment AST11 Assessment Unit AS 1 [AST11] WEDNESDAY 9 JANUARY, MORNING TIME 1 hour. INSTRUCTIONS TO CANDIDATES Write your Centre Number and Candidate Number on the Answer Booklet provided. Answer both questions. INFORMATION FOR CANDIDATES The total mark for this paper is 50. Quality of written communication will be assessed in all questions. Figures in brackets printed down the right-hand side of pages indicate the marks awarded to each question or part question. ADVICE TO CANDIDATES You are advised to take account of the marks for each part question in allocating the available examination time. AST1W8 3837 1 Study the information below and answer the questions that follow. The External Environment In January 2007, Apple, famous for its Mac computer and iPod portable music player, confirmed its move into the telecoms industry by unveiling the long-awaited iPhone. Apple promised that consumers would be able to use the phone to download music and videos. Apple Chief Executive, Steve Jobs, praised the phone s design and told an audience that the magical device would revolutionise the industry . The announcement ended months of speculation about the iPhone, which had no conventional buttons but instead used a large touch-screen. It also featured a virtual keyboard available for text messaging and a built-in two megapixel camera. Mr Jobs stated that the iPhone was literally five years ahead of any other mobile phone The iPod changed everything in 2001. We re going to do it again with the iPhone in 2007 . Adapted from http://news.bbc.co.uk/ The external environment impacts upon all firms, but for those in the technology industry the process of change is particularly rapid. Firms such as Microsoft, Nokia and Apple constantly update and improve their products by adding new features and making them easier to use. They do this to gain a competitive edge in the market and respond to changing consumer demand. These leading firms use various tools, including STEEPLE analysis, to monitor their external environment. (a) Explain why it is important for Apple to carefully consider changes to its external environment. [10] (b) Discuss the benefits and drawbacks of conducting a STEEPLE analysis to a firm such as Apple. [15] AST1W8 3837 2 2 Study the information below and answer the questions that follow. Stakeholder Objectives and Decision Making Baggitt Ltd specialises in producing plastic carrier bags for independent retailers throughout the UK. The firm, which employs eighteen people, supplies the same type of plastic bag to all its customers. Greater specialisation and improved efficiency has enabled Baggitt Ltd to lower prices and enjoy steady sales growth for many years. More recently, in response to declining sales, management have decided to widen the product range to include biodegradable bags and heavy duty shopping bags which can be re-used. However, this was felt to be a short term strategy and it was proposed that the company would need to diversify in the longer term. The management team of Baggitt Ltd, comprising the owners and managers, has been meeting for some weeks to consider this proposal of diversification. Unfortunately it has proved impossible to reach any decision because of conflict between stakeholder objectives and objectives of the business. For example, managers believe that employees will be resistant to diversification as it will involve considerable change to working practices. The Managing Director of the company, John Peartree, believes an individual decision might be better than a group one in this situation. (a) Explain three objectives which the employees, as a stakeholder group of Baggitt Ltd, are likely to have. [10] (b) Discuss whether it would be better for John Peartree to make an individual decision regarding diversification. [15] THIS IS THE END OF THE QUESTION PAPER AST1W8 3837 3 Permission to reproduce all copyright material has been applied for. In some cases, efforts to contact copyright holders may have been unsuccessful and CCEA will be happy to rectify any omissions of acknowledgement in future if notified. SP (SM) T55647/2

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Additional Info : Gce Business Studies January 2008 Assessment Unit AS 1 Module 1: Objectives and the Business Environment
Tags : General Certificate of Education, A Level and AS Level, uk, council for the curriculum examinations and assessment, gce exam papers, gce a level and as level exam papers , gce past questions and answer, gce past question papers, ccea gce past papers, gce ccea past papers

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