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51 exam-style questions with model answers, plus 85 quick multi-choice questions — every question on the site for this standard, grouped by the 17 pages of notes they come from.
Write a full answer before you reveal the model one — that comparison is where the marks come from. Every block links back to the notes that teach it.
Explain what a business means by a business goal, and give one example of a goal a large New Zealand business might set.
A large New Zealand business decides to publish its supplier payment times on its website.
Fully explain ONE advantage of this decision, and how it could positively impact the business.
A large business is deciding whether to spend its limited budget on publishing its supplier payment times, or on a television advertising campaign.
Referring to brand reputation and cost, justify, with TWO reasons, which option would be more appropriate for the business.
Explain what is meant by kaitiakitanga in a business context.
A large food-processing business is choosing between two ways of disposing of the waste water from its plant.
Using the concept of kaitiakitanga, fully explain why the business may not choose the cheaper option.
An iwi-owned forestry business is offered a price for its land that is well above market value by an overseas investor.
Referring to rangatiratanga and long-term returns, justify, with TWO reasons, whether the business should accept the offer.
Explain what is meant by a span of control.
A supermarket chain moves from centralised to decentralised decision-making, allowing store managers to choose part of their own product range.
Fully explain ONE advantage of this change and how it could positively impact the business.
The same supermarket chain is deciding whether to decentralise product range decisions to store managers, or keep them centralised at head office.
Referring to costs and brand consistency, justify, with TWO reasons, which approach would be more appropriate for the business.
Explain ONE advantage to a business of using a flat organisational structure.
A large business with a tall structure removes two levels of middle management.
Fully explain ONE disadvantage of this change and how it could negatively impact the business.
An invented Bay of Plenty kiwifruit packhouse employs 40 permanent staff and up to 250 seasonal workers during harvest. It is deciding whether to run a tall or a flat structure through the harvest season.
Referring to product quality and labour costs, justify, with TWO reasons, which structure would be more appropriate.
Explain why using a shamrock organisational structure could be an advantage to a business.
Fully explain why using a matrix structure could be a disadvantage to a business, and how this could negatively impact the business.
An invented New Zealand engineering consultancy of 90 staff wins work as separate client projects, each needing a different mix of specialists. It currently uses a traditional departmental structure and is considering moving to a matrix structure.
Referring to project delivery and staff wellbeing, justify, with TWO reasons, whether it should make the change.
Identify a production process a large bakery might use, and explain why it could be an advantage for the business.
Why could flow production be a disadvantage for a business, and how might this negatively impact the business?
An invented Nelson seafood processor currently uses batch production to pack four species into six pack formats. Demand for one format — a standard 500 g frozen pack — now makes up 60% of its volume. Management is considering installing a dedicated flow line for that pack.
Referring to unit costs and customer relationships, justify, with TWO reasons, whether it should install the line.
Explain what is meant by just-in-time stock control.
A New Zealand manufacturer that imports components adopts just-in-time stock control.
Fully explain ONE risk of this decision and how it could negatively impact the business.
An invented Auckland appliance assembler is deciding whether to adopt full just-in-time stock control for its imported components, or to hold four weeks of buffer stock.
Referring to costs and reliability of supply, justify, with TWO reasons, which approach would be more appropriate.
A factory produces 4,500 units a month with 30 production staff. Calculate its labour productivity and explain what the figure means.
Fully explain how an increase in labour productivity could positively impact a large manufacturing business.
A large business can raise productivity either by investing in automated equipment or by investing the same amount in staff training.
Referring to unit costs and staff motivation, justify, with TWO reasons, which investment would be more appropriate for a business whose products change design frequently.
Explain what is meant by economies of scale, using an example.
Explain why an increase in freight charges will affect the economies of scale of a large New Zealand business, and how this could impact the business.
A large New Zealand food manufacturer is considering doubling the size of its main plant to lower unit costs.
Referring to unit costs and communication, justify, with TWO reasons, whether it should expand the existing plant or open a second plant in another region.
Using a specific example, explain an advantage of using parts of a business that are currently under-used.
Explain why operating at capacity could be a disadvantage, and how this could negatively impact a business.
An invented Wellington craft brewery is running at 95% capacity and has been offered a large ongoing supermarket contract it could not fill without expanding.
Referring to competitiveness and profits, justify, with TWO reasons, whether it should invest in additional capacity.
Explain the difference between the role of a manager and the role of a leader in a large business.
A fast-growing New Zealand business promotes its most technically skilled employee to be operations manager.
Fully explain ONE risk of this decision and how it could negatively impact the business.
A large business must appoint a new chief executive to lead a major change of direction. It can promote an experienced internal manager, or recruit an external candidate with a strong record of leading change.
Referring to staff commitment and knowledge of the business, justify, with TWO reasons, which appointment would be more appropriate.
Identify a leadership style and explain why it could be an advantage to a business.
Why could an autocratic leadership style be a disadvantage to a business, and how might this have an impact on employee motivation?
An invented Auckland software company employs 60 experienced developers. A new chief executive intends to introduce a more autocratic leadership style to speed up delivery.
Referring to product quality and staff retention, justify, with TWO reasons, whether a democratic style would be more appropriate for this business than an autocratic one.
Explain what a budget is and why a large business prepares one.
A large business is considering investing in new technology. Fully explain why preparing a budget will aid managers in their decision-making.
A large business sets departmental budgets each year by taking last year's figures and adding an inflation adjustment. A manager proposes instead that each department justify its full budget from zero every year.
Referring to cost control and management time, justify, with TWO reasons, which approach would be more appropriate.
Explain why using variance analysis could be an advantage to a business.
When investing in new technology, fully explain what might cause a business to experience an unfavourable variance, and how the business could correct it.
A business reports an unfavourable raw materials variance of $28,000 and a favourable wages variance of $4,000 for the same month. A manager proposes cutting the materials budget for next month to bring spending back into line.
Referring to cost control and product quality, justify, with TWO reasons, whether this is an appropriate response.
Explain why preparing monthly revenue and cost reports is an advantage to a business.
Fully explain why monthly revenue and cost reports are particularly useful to a business with seasonal demand, and how this could positively impact the business.
A large business currently produces detailed monthly revenue and cost reports for every department. A manager proposes moving to weekly reporting to improve responsiveness.
Referring to decision quality and management time, justify, with TWO reasons, whether the business should make this change.
Using an example, explain the difference between a policy and a procedure.
Using an example, fully explain why it is important for a large business to implement policies and procedures, and how this could positively impact the business.
A large service business has a detailed procedure manual, but front-line staff say it stops them solving unusual customer problems. Management is deciding whether to keep the detailed procedures or replace them with broad policies plus staff judgement.
Referring to consistency of service and staff empowerment, justify, with TWO reasons, which approach would be more appropriate.