Long questions no more than 28 minutes per long question

Question 1:
Colm has decided to form a tidy towns committee in his local village and enter the tidiest
village category of the national tidy towns competition in 2013.

A. Discuss four entrepreneurial skills that Colm will require in developing this local
community initiative. (20 marks)
B. (i) Explain Maslows Theory of Motivation.
(ii) Illustrate how a manager could motivate workers by applying Maslows Theory in
the workplace. (20 marks)
C. Describe how stock control and quality control achieve efficiencies in business.
(20 marks)

(A) Four entrepreneurial skills that Colm will require are:

1. Planning and goal setting
This involves setting tasks to be achieved in the future. It outlines the best available course
of action and identifies any problem areas that may arise. For Colm, his goal is to achieve
success in the National Tidy Towns competition in 2013. He will need to be able to plan, set
targets and achieve them in order to reach his goal.

2. Networking
This involves working with other people and establishing contacts in the community with
people whose knowledge and expertise might prove useful. For example, Colm will need to
cultivate relationships with people who are experts in landscaping so they can help to make
the village more attractive.

3. Communication
This involves being able to relate to people in and around the community. Colm will need to
be able to persuade people to support his ideas if he is to be successful. For example, he will
need to effectively communicate his plans to the residents associations in order to get their
support and encourage people to volunteer.

4. Time management
This means carrying out tasks as efficiently as possible in the time available. It involves
quantifying tasks, delegating tasks, and monitoring and discipline from everyone. As the
most of the work will be carried out by volunteers, Colm will need to ensure that their free
time is not wasted

(B) Maslows Theory of Motivation / Maslows Hierarchy of Needs

(i) Maslows theory states that each person has a hierarchy of needs and as each lower need
is satisfied, the next higher need becomes a motivating factor. According to Maslow, a
manager who wants to motivate workers must find out the level the workers are at and try
to satisfy the need above that level. He identified five needs, starting at the most basic.
These are:
Physiological food, shelter, warmth.
Safety feeling safe at work and secure about the future.
Acceptance acceptance within the peer group.
Esteem status, respect, recognition.
Self-actualisation achieving personal goals.

(ii) A manager could motivate workers by applying Maslows Theory in the workplace as
illustrated in the following manner:
Physiological
Pay employees adequate wages so they can afford food and shelter for themselves
and their dependents.
Safety
Provide job security and a high standard of safety in the work place.
Acceptance
Provide time and opportunity for social interaction between employees, for
example, through social clubs and company outings.
Esteem
Treat employees with respect and reward achievements, e.g. with a promotion.
Self-actualisation
Provide interesting and challenging work with good prospects for career
development

(C) Controlling is the process of monitoring performance, comparing it to the targets set and
taking corrective action when it is required. An effective control system can achieve
efficiencies in business by eliminating waste and minimising delays. This can be illustrated as
follows:

Stock control is a system for ensuring that a business has the correct amount of stock at all
times to satisfy demand never too much and never too little. To achieve this, a business
must:
Maintain detailed records of stock movements.
Do regular stocktaking.
Reconcile actual stock levels with records and investigate discrepancies.
Ensure that there is no stock damage or deterioration and rotate stock so it doesnt
become obsolete.

This leads to less wastage and a more efficient system for maintaining optimum stock levels.
For example, money is not tied up in excess stock that is not earning income, storage costs
are not higher than necessary and stock does not become obsolete.

Quality control means using methods of production that ensure the product consistently
conforms to the standards set out by law and satisfies the expectations of customers.

A good quality control system means a business can minimise the costs associated with
faulty goods and maximise the benefits associated with good quality. To achieve this, a
business must:
Have a system of examining and testing materials, processes and finished products.
Regularly seek and respond to customer feedback.
Take part in quality standard systems such as ISO 9000.

This makes the business more efficient as less time is wasted addressing customer
complaints. Also, the business can build a reputation for quality, which would achieve
efficiencies (such as lower costs) when introducing new products.

Question 2:
A. (i) What is meant by the term SWOT analysis?
(ii) Conduct a SWOT analysis on a business of your choice.
(Include two points under each heading) (20 marks)
B. Analyse the contributions that strategic and tactical planning can make to the
successful management of a business. Use examples in your answer. (20 marks)
C. Discuss the benefits of a functional organisational structure in a business.
Refer to the Chain of Command and Span of Control in your answer. (20 marks)

(A) (i) A SWOT analysis is a study of a situation, which identifies its strengths and
weaknesses, and the opportunities and threats facing it. A business should carry out a SWOT
analysis before drawing up any plans.

(ii) SWOT analysis of Morans a family-run supermarket in a small town.

Strengths:
a) Customer loyalty as the business has been run by the same family for three generations.
b) Reputation for quality.

Weaknesses:
a) Aging building in need of modernisation.
b) Current management structure does not encourage intrapreneurship.

Opportunities:
a) Supermarket to feature in article on family businesses in national press, which will
generate publicity.
b) New manufacturing plant setting up in town, which will attract more potential customers
to the area.

Threats:
a) Possibility of competition from a larger supermarket chain setting up in the town.
b) Difficulty keeping pace with changes in technology, making the business less efficient.

(B) Planning is the process of deciding on goals and setting out the means to achieving
them.

Strategic planning is long-term master planning, covering a period of more than five years. It
is usually carried out by senior managers and concentrates on the business mission,
establishing objectives and conducting a SWOT analysis. Strategic planning contributes to
the successful management of a business in the following ways:

a) It analyses the business current position and establishes objectives and a course of action
to ensure long term objectives are achievable, for example, to export to the French market
and gain a 5% market share within six years.

b) It reduces the amount of uncertainty facing the business. By focusing on future activities
the organisation can anticipate change.

Tactical planning is short-term planning covering a period of one or two years and usually
takes place at middle management level, for example, to open a regional sales office in
France in twelve months. Such planning contributes to the successful management of a
business in the following ways:

a) It sets clear and realistic short-term objectives that are matched to the aims of the
business.

b) It focuses people on achieving goals by setting short-term targets. By monitoring whether
these targets are met, management can modify their strategic plans if necessary. For
example, if the regional sales office is established within six months, the business may be
able to achieve their targeted market share sooner that originally planned.
functional organisational structure is one that divides a company according to the main
functions performed, such as finance, production, sales and marketing, etc. There is one
person in charge of each department and all are answerable to the managing director
according to the main functions performed.

(C) The benefits of this type of organisational structure are:

a) There is a clearly defined chain of command, i.e. the path by which instructions flow from
the top to the bottom of the organisation. This makes communication more efficient.

b) By grouping together employees who are involved in the same type of activity, it builds
up skills and expertise in that area.

c) A functional structure allows for a wide span of control, i.e. the number of subordinates
who are delegated authority and report directly to the manager or supervisor above them.
Having a wide span of control means that one manager can supervise more workers.

d) A functional structure creates a recognisable promotion path for workers. The identified
levels of seniority can motivate employees to improve their expertise and aim for a
promotion.