Aghan Sun – PP1/2018

1) Assess the importance of designing an effective strategic decision making for

businesses such as High-end-Holidays. (line 4)

2) Define microfinance (line 9)

Non-governmental organizations (NGOs)

3) Explain why businesses in developing countries such as Afghanistan would benefit

from microfinance providers.

4) Create a STEEPLE analysis for Su when considering opening her business in

Afghanistan.

5) Identify 3 challenges Su might face when opening a start-up business such as Afghan

sun.

6) Define: private limited company

Limited liability

7) Identify 2 advantages and 2 disadvantages for Afghan Sun opening as a private

limited company.

8) Identify two other sources of finance Su could use to purchase machinery to produce

solar panels.

9) Define: Corporate Social Responsibility

10) Assess two advantages and two disadvantages for Afghan sun adopting ethical

objectives.

11) Identify two advantages and two disadvantages for Afghan sun adopting CSR (it is

NOT as the question above).

12) Identify ways that stakeholders can reinforce the “social” performance of businesses

with CSR

13) With reference to Afghan sun explain the difference between vision statement and

mission statement.

14) Create a vision and mission statement for Afghan sun, based on the Su’s

characteristics described in the first 5 paragraphs (lines 1-27)

15) Identify two advantages and two disadvantages for Afghan sun in recruiting

volunteers from HH as employees.

16) Define: recruitment

Job description

17) Identify two advantages and two disadvantages for Su hiring through internal

recruitment.

18) Define: cellular manufacturing

Total Quality Management (TQM)

19) Identify two advantages and two disadvantages for Afghan sun using cellular

manufacturing.

20) Explain how the use of cellular manufacturing might increase the job motivation

within employees.

21) Identify two advantages and two disadvantages for AK bank work alongside Afghan

Sun.

22) Identify the importance of an effective leadership roles for businesses.

23) Identify two leadership styles that suits the characteristics of Su’s style of leadership.

24) Explain the importance of empowering managers and employees for Afghan sun.

25) Explain two disadvantages for empowering employees in a business.

26) Analyze challenges Su might face when working with AK Bank (Bangladesh)

operating its business in Afghanistan.

27) Define: delegation

Delayering

28) Identify two advantages and two disadvantages for a decentralizing decision making.

29) Evaluate the best organizational structure for Afghan sun based on Su’s leadership

style.

30) Explain what is the Shamrock organization and how this structure might benefit

Afghan sun.

31) Discuss the two options when hiring senior managers (line 46) for Afghan sun. (10

marks)

32) Define: outsource

33) Analyze two advantages and two disadvantages for Afghan sun outsourcing their

production facility of their solar power system.

34) Define: optimal location

35) With reference to Afghan sun, analyze three factors that might influence the location

of its production facility.

36) With reference to Afghan sun, analyze one reason why a change in location may lead

to a rise in future profits.

37) With reference to Afghan sun, calculate the estimated annual profit from the two

possible locations provided:

Developed Country Developing country

Estimated annual costs $975 000 $ 498 000

(including rent and labour

costs)

Expected annual sales 25 000 17 000

Forecast selling price per $50 $45

unit

Source: Cambridge – IB BM

38) Explain why operations management in a business such as Afghan sun should

maintain close relationships with other business functions.

39) Explain what is meant by lean production.

40) With reference to Afghan sun, evaluate two ways the business can apply lean

production within its production facility.

41) Evaluate the difficulties for Afghan sun of using lean production in its production

facility.

42) With reference to Afghan sun, analyze two problems for using sustainable suppliers

for their solar panel components.

43) Examine two advantages and two disadvantages for Afghan sun of using the JIT stock

control system.

44) With reference to Afghan sun, evaluate the reasons why the business should adopt

cradle to cradle (C2C) manufacturing system.

45) Explain how using cradle to cradle might increase business cost.
46) Explain the difference between commercial marketing and social marketing.

47) With reference to Afghan sun, suggest which type of marketing they should adopt.

48) With reference to Afghan sun, explain the importance of an effective marketing

planning. (line 52)

49) Define: product oriented

Market oriented

50) Identify the importance of an effective pricing strategy for business when launching

a new product. (line 55).

51) With reference to Afghan sun Suggest two types of promotion Su should adopt when

promoting the solar panels. (line 57)

52) Explain the difference between a long distribution channel and a short distribution

channel.

53) With reference to Afghan sun, identify two advantages and two disadvantages for

David of using a long distribution channel. (line 60)

54) Define: share capital

Loan capital

55) With reference to Afghan sun, identify possible conflicts between two internal

stakeholders.

56) Explain the following sentence: “The microfinance customers would be under

completely separate arrangements with AK bank or other microfinance provider”.

(line 66) Suggest ways this can be possible.

57) With reference to Afghan sun, comment on the projected cash flow forecast

provided on Table 2.

58) Suggest two ways in which Afghan sun could improve cashflow.
59) Examine two difficulties small businesses like Afghan sun face in obtaining sources of

finance as a start-up.

60) Explain what key information Su would have to include in a business plan when

applying for a loan.