Name: _________________ Date: _______

BUSINESS FINAL EXAM - 5th 2022

1) Pamela is a successful entrepreneur. Based on secondary market research data, she started a
business selling celebration cards, toys and candy (sweets) in a gift shop . It is a niche market.
When Pamela started her business 30 years ago she had no help to manage the shop. She now has 5
employees. Pamela knows maintaining customer loyalty is important. She uses competitive pricing
as part of her marketing mix. Most of her marketing budget is spent on sales promotion. The
business is developing new products. Pamela has to decide on the packaging and method of
promotion for this new product.
a) Define ‘competitive pricing’. [2]
b) Define ‘secondary market research’ [2].
c) Identify one benefit and one cost to a business of developing new products. [2]
d) Outline two factors Pamela should consider when deciding on the packaging for its new
product. [4]
e) Do you think operating in a niche market will help a small business have a better chance of
success than operating in a mass market? Justify your answer. [6]
f) Do you think competitive pricing is the best method for an established business to use?
Justify your answer.[6]

2) MBH is a business organisation in the public sector. It controls 5 hospitals and has 5600 employees
including 440 doctors. External recruitment is used when recruiting skilled employees. All
employees receive training and managers use delegation. The Human Resources Director uses ideas
from Herzberg’s theory to improve employee motivation. He is worried about communication
barriers within MBH. The business has a tall organisational structure and a long chain of command.
Most of MBH’s internal communication is by email and phone calls.
a) Outline one advantage and one disadvantage to MBH of using on-the-job training. [4]
b) Explain how MBH might reduce or remove each of the following communication barriers:
Messages lost and Use of jargon.[6]
c) Do you think an organisation should always use external recruitment when recruiting skilled
employees? Justify your answer.[6]

3) ABA provides short-distance flights between 60 countries. It is a multinational company based in

country X. ABA uses market segmentation when deciding on its pricing method. The marketing
department is carrying out market research to gain feedback on customer experiences. ABA is
considering ways in which it can contribute to sustainable development. The directors are planning
to expand ABA by opening 20 new routes. ABA will have to carry out a recruitment and selection
process for 400 new employees. ABA knows that having effective methods of internal
communication are important.
a) Define ‘market segmentation’. [2]
b) Identify two pricing methods ABA could use [2]
c) State four factors a business should consider when selecting an appropriate method of
internal communication.[4]
d) Outline two factors which could affect the accuracy of ABA’s market research. [4]
e) Do you think an interview is the best way for a large business to select new employees?
Justify your answer.[6]