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GCE JUN 2006 : (AS 3) Marketing and Operations Management

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ADVANCED SUBSIDIARY (AS) General Certificate of Education 2006 Business Studies assessing Module 3: Marketing and Operations Management AST31 Assessment Unit AS 3 [AST31] THURSDAY 22 JUNE, AFTERNOON 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. AST3S6 2354 1 Study the information below and answer the questions that follow. Market Research and Marketing Strategy Diane Fields is the Marketing Manager for Reflecto Ltd, a firm that has been manufacturing mirrors for many years. The firm has always produced a limited range of mirrors, opting to keep its designs simple and target its products at the UK mass market. Until recently this strategy has been very successful. Over the last two years however, sales have been declining. Diane realises that there is growing competition from foreign firms. These competitors are much bigger than Reflecto Ltd and seem intent on gaining a high UK market share. She knows that something must be done quickly in order to increase sales. Diane decides that a possible option might be to switch from a mass marketing strategy to a niche marketing strategy. Clearly this is a major decision that could determine the future of the business. Diane thinks that there may be a number of potential niche markets for the company s products. Before submitting her proposal to the Board of Directors she decides to carry out some market research. (a) Explain the advantages to Reflecto Ltd of adopting a niche marketing strategy. [10] (b) Discuss whether Diane should use primary research to investigate potential niche markets. [15] AST3S6 2354 2 2 Study the information below and answer the questions that follow. Implications of Large Scale Production Planx plc has been producing wooden flooring for almost twenty years. It has recently experienced several years of rising prices for its products, during which it was able to build up substantial cash reserves. The Managing Director, Stephen Oaks, now wants to expand the firm by taking over a competitor, Woodo plc, located in a nearby town. He is convinced that Planx plc would be able to achieve considerable internal economies of scale as a result of the takeover. Stephen had originally intended to let Planx plc grow organically, but he became aware that Woodo s sales had fallen due to problems with product quality. Consequently, Woodo plc had cut back production to only 60% of the factory capacity. Stephen regards this cut back as an opportunity for Planx plc. Christine Pine, another director of Planx plc, is more cautious about the take-over. She recognises that market conditions are right for expansion and that Planx plc needs to modernise quickly. However, Christine is worried about a growing problem of employee morale within Planx plc. More importantly, she is also concerned that there may be disadvantages associated with producing on a larger scale. (a) Explain why a firm such as Woodo plc might operate below full capacity. [10] (b) Discuss the implications for Planx plc of the business becoming larger as a result of the proposed takeover. [15] THIS IS THE END OF THE QUESTION PAPER AST3S6 2354 3 SP (NF) T20543/1

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Additional Info : Gce Business Studies June 2006 Assessment Unit AS 3 Module 3: Marketing and Operations Management
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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