2 (a) Define the following terms:

(i)

Director (line 2)
Director is the senior manager of an organisation which is often elected by
the Board. Buzz is the director of his company, JG which produces
computer games for children.

(ii)

Interest rate (lines 13-14)

Interest rate is the proportion of a loan that is charged as interest to the
borrowers (debtors). The players of My First Bilion (MFB) have to decide
their banks interest rate in order to charge their debtors.

(b) (i) Suggest two ways in which the information in Figure 1 could be
presented.
The two ways which the information in Figure 1 could be presented are
through pie chart and bar chart.
(ii)

Briefly analyse the benefits of presenting the information in one of the

ways you have selected.
The benefits of presenting the information through bar chart would be
managers will find it easier to use and it could help them in decision
making. Presenting the information through bar chart also allows effective
communication as it is easier to understand.

(c) Analyse the workforce problems that JG could experience when changing
production to MFB.
The workforce problems that JG would experience when changing
production to MFB would be the demotivation of their employees. This is
because the production of the board games need a lot less skilled, except for
the work done by the design team, In this situation, employees that are not
in the design team will feel job insecure and hence lose their motivation in
working. The next workforce problem that JG would experience would be
the productivity levels of the employees. The productivity of the employees
will increase although they produce the same level of output. This is
because the efficiency of the machinery as the disks are produced
automatically using CAM (computer aided manufacturer). Furthermore, JG
would experience the problem of recruiting new employees which are less
skilled. The employees that needed by JG need not to be well trained/
profesional because the only job they need to deal with is packaging MFB.
JG would also experience the problem of the labour turnover. As in the
production of MFB only involved those design team and the employees
who pack and despatch MFB to customers, other employees with other
expertise might feel unwanted and wasted. Hence, they might leave JG.
(d) Discuss the factors that JG should consider when marketing MFB.

The factors that JG should consider would be the type of marketing. It is

important for JG to choose niche marketing instead of mass marketing
because their targeted market is children, not everybody. JG should also
consider about the packaging of MFB because packaging helps to aid the
recognition and interesting packaging attracts the children to buy. The next
factor that JG should consider would be the pricing method of MFB.
Although there are only few companies make board games, it is important
for JG to understand that if they use skimming pricing strategy would affect
the number of demand. This is because their targeted market is children.
They are not able to afford expensive board games even if their parents are
willing to buy for them, the price is still concerned. Furthermore, JG should
consider about the channel of distribution in order the customers can get the
MFB conveniently and easily. Internet marketing allows the children to buy
the MFB by downloading from the internet. This might help to increase the
sales as children nowadays are more likely approach to technology. JG
should also consider about the type of promotion to be used for MFB. JG
can use above-the-line promotion which is advertisement. JG can
encourage the children to buy MFB through persuasive advertisement.
However, JG can also use direct mail which is under the category of belowthe-line promotion. This method is more cost saving compare to
advertisement.