Business Studies Short answers

Case Study

5 Take away’s

The HSC is coming be prepared

Theory Then Scenario/case study My Trick

Timing 3 hours in the exam MC – 20 marks, 35 minutes Short answers -4 questions, 40 marks allow 75 minutes Business Report – 20 marks, 35 minutes Extended response- 20 marks, 35 minutes

Rules 2. address the key verb 3. theory first 1. refer to the stimulus 2. address the key verb 3. theory first 4. have a case study – ready for S.A 5. know the syllabus 6. My magic trick Theory then case study/ scenario Rules

Sue is a sole trader whose business is growing rapidly as sales are increasing. As a result of the growth, she needs to purchase stock worth $10 000. (a) Explain a potential conflict between a short-term and a long-term financial objective for Sue. 3 marks Past questions 2016

A potential conflict can be that liquidity will increase due to the purchase of stock, which will allow cash to flow through at an increased rate. But solvency - the ability to make long term payments -will decrease due to the increase in long term debt from the purchase of stock. Liquidity and solvency are inversely proportional. A response

Marking Guide A response - 3 Shows how and/or why a short-term and long-term financial objective may conflict B response - 2 Names a short-term and a long-term financial objective OR outlines why a conflict might occur Marking Guide

Discuss ONE internal and ONE external source of finance for Sue’s purchase of stock. 6 marks

Marking Guide A response 5-6 marks Provides points for and/or against one internal and one external source of finance for this purchase B response 3-4 Provides points for and/or against one internal source of finance and sketches in general terms one external source of finance Marking Guide

An internal source of finance includes retained profits An internal source of finance includes retained profits. Sue has from the revenue generating activity of the business. These profits have been kept within the business and is an easier and cost effective source of finance for the purchasing of stock. Using retained profits, however, may mean her businesses profitability is reduced. An external source of finance includes the use of a short term bank loan. This source is effective as it allows Sue the immediate access to funds, which she can use for the purchase of stock to increase assets within the business. However, this source also involves regular payments made to the financial institution with the added cost of interest. This is significantly more expensive. A response

Question 24 (7 marks) A fruit shop has experienced strong growth in its sales of fresh organic fruit since it started to sell online. A)Discuss ONE possible method of inventory management for this business. .

Just in Time (JIT) is a method that involves ordering inventory for when it is needed. This allows for this fruit shop to deliver the freshest possible produce to its consumers. However it also means it will be inflexible and may lose sales in the event of rapid swings in demand. See the trick! A response

Marking guide

Case study Question 25 (6 marks) With reference to a business you have studied, analyse the relationship between cost and quality in the operations of the business. Case study

Quality and cost within Operations has a large influence of the business. A product with a lower price can be seen as a product with low quality, however, a product with a high price can be seen as a superior product in the minds of the consumer. Qantas prices are more expensive than airlines such as Jetstar and Virgin ……….. Through the use of higher costs within its operations, Qantas are able to provide customers with cushioned seating which is not offered by cheaper airlines. This gives Qantas a competitive advantage which results in increased sales. A response

Draws out and relates the implications of the relationship between cost and quality with reference to a business 6 • Provides links between cost and quality with reference to a specific business 5 • Provides characteristics and features of cost and quality with reference to a business OR • Provides links between cost and quality in operations 4 Marking Guide

2018? 2017 operations, ethical behaviour, HR, global finance 2016 objectives of financial management – long term and short term, Influences -internal vs external sources of finance, marketing process – developing a financial forecast, promotion, distribution, role – outsourcing, diverse and culturally competent – legal, anti discrimination, ethics CSR, inventory management and CSR  marketing online 2015 -  place/distribution – distribution channels – channel choice – intensive, selective, exclusive – physical distribution issues – transport, warehousing, inventory 2014  situational analysis – SWOT, product life cycle, marketing strategies 2013 types of markets identifying target markets 2018?

2018 ?? Australian Prime Minister Malcolm Turnbull has decided to resign and start selling Australian ties . A)Why might Malcolm choose e-marketing for his ties? 2 marks 2018 ??

What is e-marketing? E-marketing (electronic marketing) is the practice of using the internet to perform marketing activities What is ONE reason for choosing e- marketing?

2 MARKS STATE A REASON Use the trick! Marking Guide

global marketing – global branding – standardisation – customisation – global pricing – competitive positioning Mention Malcolm and his TIE Sketch in general terms B) Outline ONE issue with global marketing that will need to be considered. 2 marks

What is customisation? A customised or local approach is a global marketing strategy that assumes the way the product is used and the needs it satisfies are different between countries. How do you recommend? What language do you use? c) Recommend ways that customisation could be used to maximise sales of the product. 4 marks

For the USA market

French market

China

Indian Market

New Zealand

Tough Questions

Critical Path

MC C A

RATIOS Why do we care???? KNOW THE RATIOS Liquidity Gearing Profitability Efficiency

1 2 3 4 5 5 take away’s

Good Luck from Borobi and me! do a P.B