ID NO . IIII ID ~LL , I · 2018. 11. 7. · TIME ALLOWED: TWO HOURS AND FIFTEEN MINUTES (2 HOURS & 15 MINS.) SECTION A QUESTION 1 Business Policy Ltd., a limited liability company

ID NO ......................... . ........ .

IIII ~LL ID , I ~

UNIVERSITY OF GHANA

(All rights reserved)

BACHELOR OF SCIENCE IN ADMINISTRATION UNIVERSITY OF GHANA BUSINESS SCHOOL

UGBS 402: BUSINESS POLICY (3 CREDITS) SECOND SEMESTER EXAMINATIONS: 2015/2016

INSTRUCTIONS ANSWER TWO QUESTIONS FROM SECTION A, QUESTION ONE, COMPULSORY

AND ANY OTHER ONE QUESTION, BUT ANSWER ALL QUESTIONS FROM SECTION B. SECTION A MUST BE ANSWRED IN THE SEPARATE ANSWER

BOOKLET, WIDLST SECTION B MUST BE ANSEERED ON THE QUESTION PAPER TIME ALLOWED: TWO HOURS AND FIFTEEN MINUTES (2 HOURS & 15 MINS.)

SECTION A

QUESTION 1

Business Policy Ltd., a limited liability company registered and set up QY the Level 400 Policy Class of the 201512016 Academic Year are beginning a project to market students' magazine on University of Ghana campus. It is estimated that the company will sell one magazine for GHClO.OO with a profit of GHC2.50 per magazine. To achieve their targets, it is required that they able to identify a realistic objective in relation to achieving all their targets. For their estimates, they plan to look at advertising rates for the local newspapers on campus and get population figures from the Academic Office, University of Ghana. They also plan to relate their promotional budget to expected sales and profit, and they have also decided to set up a timescale for everything they intend to achieve.

Required

a) State and explain the six (6) elements of the framework for setting objectives (6 Marks.) b) Using the framework in (a), discuss how Business Policy Limited can set a realistic objectives for its proposed project on Legon Campus as explained in the case (14 Marks).

Examiner: Dr. Damoah Obi Berko Page 1 of 19

QUESTION 2

Swan Cruises was formed in 1995 by a group of four friends wh:.1 each owned cabin cruises and used redundancy payments to purchase additional four. From th~~ir own boating activities and contacts they concluded that there was a good opportunity in the market for family cruising holidays on the canal system. They produced rough budgets and drew up an advertising plan. Because they wanted to get started quickly to catch the spring season, the partners did not give time to strategic planning. However, after their publicity leaflets and advertising in the press, they received a good number of bookings, but sooner than later they began to run into problems.

(a) The waterways authority demanded more safety measures and so their insurance premiums were more than budgeted for;

(b) Customers found the cruises too small for family parties to live in for a week; (c) Customers regularly got into difficulties with running the boats at the locks and the

partners had to spend much time teaching and helping customers; (d) There were a lot of complaints and demands for refunds from customers; (e) Three of the boats were damaged by novice sailors; (f) The waterways authority threatened to withdraw the license because of speeding by

young customers.

Required:

a) State and explain the three (3) main business policy processes (4 Marks) b) Code each of the issues above (i.e. a) - f) according to the three main business policy processes (6 Marks); b) Assuming you are the lead expert of a business company in Accra, write a short memorandum to the partners setting out how they would have benefited from using a policy planning processes (10 Marks).

QUESTION 3

a) Sate and explain the three (3) main policy evaluation criteria (6 Marks) b) Using a micro finance company state four (4) considerations under each of the criteria (14 Marks) -


ID. NO ............................... .

SECTION B: ATTEMPT EVERY QUESTION FROM THIS SECTION. TillS SECTION MUST BE ANSWERED ON THE QUESTION PAPER. YOU MAY TICK, CIRCLE AND/OR FILL IN DEPENDING ON THE REQUIREMENT OF A QUESTION

1. How many elements are the Pestle model? A.S B.6 C.4 D.7 E.8

2. Which of the following is NOT a part of a firm's immediate external environment? A. Technological development B. Competitors C. Suppliers D. Government agencies E. Customers

3. The immediate external environment includes: A. Competitors B. S. B. U. s C. Divisions D. Management E. Technology

4. The ..................... determines the extent to which the government actions affect the economic environment of the business.

A. Political factor B. Governmental influence C. Economic factors D. Government policy E. Civil society

. Examiner: Dr. Damoah Obi Berko Page 3 of 19

5. Taxes, tariffs, subsidies, fiscal policy are all examples of ...... . ............ . ........ that affects businesses.

A. political factors B. governmental influence

C. economic factors D. government policies E. Financial indicators

6. Inflation rates, interest rates and foreign exchange are all examples of .................... . that affects businesses.

A. political factors

B. governmental influences C. economic factors D. government policies E. Financial indicators

7. When a business is operating in an economy facing high inflation, it means .. . ...... .. ....... . A. The firm's cost of production increases B. The firm's cost of production decreases C. The purchasing power of consumers increase D. Firms can invest more E. It is advantageous for firms to save with financial institution

8. Which of the PESTLE model is usually overlooked by institutions but plays a critical role in affecting the institution's policy.

A. Economic factors B. Government policies C. Socio-cultural factors D. Financial factors E. Political factors ------ ----.. --- -- --- --. --- _. -' ---- ---~ - -- - - --- -.. -- , ---.. -.. -- .. - -.---- ------.. --_J

I

9. Before a ~usiness can survive it has to consider the context in which it is operating, failure to do that means the business fails to consider the ......... . .. .. .... . ....... .

A. Economic factors B. Government policies

-I C. Socio-cultural factors D. Financial factors E. Political factors


10. When a business takes into consideration in the demographic characteristics of it clients it is satisfying the .. . .... . . .

A. Economic factors B. Government policy C. Socio-cultural factors D. Financial factors E. Political factors

11 .................... . ............................. consist of the variables emanating from the environments outside the direct control of the organization.

12. The .................. environment consist of economic, political and social factors A. The remote B. The industry C. The operating D. Financial E. Natural

13. The ................ environment consist of entry barriers, threats of substitution and competitive rivalry.

A. The remote B. The industry C. The operating D. Financial E. Economic

14 ...... ' " .... . ...... environment consist where competitors, customers, suppliers and "creditors. A. The remote B. The industry C. The operating D. Financial factors E. Economic factors

15. The major models in the external assessment are: A. 3 B.4 C. 5 D. 6 E. 2


~~ 16 . . .... ..... ..... refers to the action that result in formulation and implementation of plan that

enables firms to achieve set goals. A. Strategic policy B. Business policy C. Strategic management D. Tactics E. Mission statement

17 ..... .. ... ................. refers to the approach a firm adopts to achieve its objectives. A. Strategic policy B. Business policy C. Strategic direction D. Tactic E. Mission statement

18. A strategy is a company's .... . .............. . ........... . .

A. Game plan B. Pricing policy C. Value statement D. Long-term objective

E. Mission statement

19. There are . . .............. strategic goals in the University of Ghana's lO-year policy strategy

A.9 B.8 C.7 D.IO E.13

_ 20. What does ~WOT analysis stand for? A. Success, wining, opportunity, threat B. Strength, weakness, opportunity, threat C. Strategy, weakness, opportunity, technology D. Strategy, winning, opportunity, technology

21. The resources and competencies available to the firm can be termed as ..... .. ......... . . . A. Strength B. Competitive advantage C. opportunity D. Assets E. Resource-based view


9D 22 .............................. is a favourable environmental condition that allows for the smooth

operation of businesses. A. Strength B. Competitive advantage C. Opportunity D. Assets E. Resource

23. How many generic competitive strategies was proposed by Michael Porter in making strategic decision?

A. 3 B. 4 C. 2 D.5 E. 6

24. Low cost approach is also referred to as cost value strategy A. TRUE B. FALSE

25. Pricing strategy works best in an industry ......................................... . A. When clients react to changes in price B. When the product is well differentiated C. When clients are influenced by the quality of product D. When the product has similar use but the brand is of great concern E. None of the above

26. Pricing strategy where a firm beats down its pri~e of product in relation to its competitors is' referred to as .......................... . ................ .. ......... ..

A. Cost leader's strategy B. Cost leadership strategy C. Cost value strategy D. Value chain E. Price cutting strategy


(l r . 27. Low cost approach guards firm's from the following except

A. Rivalry firms B. Potential entrants C. Substitutes of the same product D. Increase the dividends of shareholders E. Clients with higher bargaining power

28: What low cost approach can a firm undertake in order to reduce the expenditure it incurs on its workforce?

A. Providing bonus B. Extending working hours C. Replacing permanent workers with contract workers D. Employing more resourceful workers E. None of the above

29. When firms are operating in an industry where the products are substitutes, a strategic pricing strategy is an appropriate strategic choice for firms to adopt.

A. TRUE B. FALSE

30. When firms are operating in an industry where the products are differentiated a strategic pricing strategy is an appropriate strategic choice for firms to adopt.

A. TRUE B. FALSE

31. When a firm is able to identify various needs of its customers and produces varying product to satisfy them, then the firm has explored which strategy approach?

A. Low cost approach B. Differentiation C. Niche strategy D. Product identification E. Diversification

32. Diversification strategy is when a firm adds value to a product by producing the same product as its competitors.

A. TRUE B. FALSE


q;2 33. The following are all the advantage of us in!:) the differentiation strategy

except. .. .. .......... . ......... . .. .. .. A. It leads to brand loyalty on the part of customers B. It leads to technical breakthrough C. Differentiation leads to good management skill D. It reduces cost E. It improves a firm's competitiveness

34. The strategy that allows for concentrating on a section of the market than the entire market can be referred to as ...................................... .

A. Low cost approach B. Market Differentiation C. Niche strategy D. Product identification E. Market Diversification

35. Differentiation strategy makes effective use of branding.

A. TRUE B. FALSE

Use the following case study to answer Q36- Q40

ABC firm has resourceful management and a capital worth 50 000 Ghana Cedis. It is producing

good X in an industry where the government has decided to exempt them from taxes to enable that particular industry to be promoted. Due to the above government intervention, other ne\y firms are now motivated to move and diversify into that industry. However, the industry is experiencing decline in the market share as a result of high prices caused by smugglers, who smuggle to neighboring countries. From the case:

36. Identify the strength of firm ABC?

37. Identify the weakness of firm ABC?

38. Identify the opportunity available to ABC?

Examiner: Dr. Damoah Obi Berko Page 9 of19

Q'6 39. Identify the threat that ABC is likely to face?

40. Propose one of the competitive strategies a flml can adopt in order to survive in that 'industry?

41. Identifying a market niche where buyers have distinct preferences is an example of what strategy?

A. Low cost approach B. Market Differentiation C. Focus strategy D. Product identification E. Market Diversification

42. All these are examples of factors that make a segment attractive for focusing except? A. When the segment can increase the profit level of the firm B. When the segment is not profitable to competitors C. When the needs of the segment cannot be differentiated from the rest of the market D. When the segment promises profit potential E. All of the above

43. Niche strategy works best when firm's resources ........................ .. A. Meet the entire market B. Cannot meet the entire market C. Rivals are already involved in the segment D. When the industry focuses on only a portion of the market E. None of the above

44. A firm can reduce cost by alhhi following except .......... ~ : -.~ ......... :' .......... : .. A. Getting favourable access to sources of supply B. Providing safety training for all employees C. Relocating to cheaper areas where possible D. Using a less cost efficient mode of production E. All of the above


45. Policy monitoring is keeping an eye ~ !f:! ............. ........ on a .......... ..... ....... . ...... . A. Performance indicators, one time basis B. Strategic indicators, continuous basis c. Performance indicators, continuous basis D. Activities, continuous basis E. Activities, one time basis

State any two monitoring tools used in policy monitoring?

46 ... ... ... .................. ......................................... .. ......................................... .

47 ....... ...... .... ............................. . .. . ......... . ............................................... ... . .

48. Why are performance review carried out by organizations? A. To help check the significance of key performance indicators B. To help eliminate obsolete performance indicators C. To help adjust performance indicators to suit current situations D. It assures whether the performance indicators meet industry standards E. All of the above

49 ............. ..... indicates how task should be done more efficiently A. Method study B. Systems analysis C. Value chain D. Task inspection E. Activity sampling

50 ...................... is a cost reduction technique whose purpose is to identify unnecessary cost elements in an item.

A. Method study -B. Systems analysis C. Value chain D. Task inspection E. Activity sampling


~S! 51 .... ... ....... . . . .. . implies the process of examining procedures, all activities, and inputs

expected in operational settings. A. Method study B. Systems analysis C. Value chain D. Task inspection E. Activity sampling

52. Which monitoring technique is more efficient to use if the work is repetitive and directly observable?

A. Method study B. Systems analysis C. Value chain D. Task inspection E. Activity sampling

53 . Task inspection becomes complicated when .................. . .............. . A. There is a wide variety of work being done B. Large number of people are involved in the work C. A long time is required to study a single 'cycle' of the work D. The work is infrequent E. All of the above

54 ........... ... . . ... . .......... implies taking a number of observations during the work cycle to observe and monitor.


55. Which of the following techniques requires a scientific ways of selection in order to avoid biases when monitoring?


-Examiner: Dr. Damoah Obi Berko Page 12 of 19

· (16 56. Time sheets are appropriate monitoring tecbque used for activities that are quantitative in

nature. A. TRUE B. FALSE

57. Personal observation is common monitoring tool used at University of Ghana during examinations

C. TRUE D. FALSE

58. Reports are appropriate monitoring technique used for activities that are of qualitative in nature.

E. TRUE F. FALSE

59. All these are examples of qualitative activities except ..................................... . A. answering phones, B. talking to supervisors, C. supervision D. Running errands. E. manufacturing ten pens a day

,60. Operational data used by organization can be used as a source for monitoring activities in , the organization.

A. TRUE B. FALSE

61. Watching operations as they are carried out or delegating such monitoring to a trained observer is ................. . ..... . ..... .

A. Reporting B. Observation C. Task operation D. Monitoring


62. In monitoring process, the following questioj!to~be asked to serve as a guideline except . . . ...... . . . . . . ... . .

A. What changes has environmental factors had on performance of the firm B. What strategic plans have competitors taken C. What changes have occurred in the industry that affects firm's performance D. What changes have occurred in the company's profit level E. None of the above

From 63 - 65 state three output indicators at University of Ghana Business School.

63 .......... . ... .. ....... .. .. .. .. .. . .. ....... . .............. . . . ....... . ... . ...... . .......... . ....... ~ . . .

64 ............... .. ..... ..... .. ........... .. ....... .... ..... ... .. ............ ......... ............. .... .

65 .... . ... ... .. ... .... . .. . ... ........... .... .. ...... .. .... . .. . .... . ... . ............... ............. .. ... .

66. A business policy is characterized by all of the following e'xcept?

A. Longterm B. Based on a clear purpose for the organization C. Developed and controlled by top management D. Involve huge financial outlay E. All of the above

67. The Business Policy Course was taught for .. . . ... . ..... . .. weeks A. 13 B. 14 C. 10 D. 12 E. 11

68 ............. .. ... . . precedes all the other management activities because if it is not done properly, the others will probably fail.

A. Function B. Directing C. Planning D. Controlling E. Implementing


al . 69. A public owned company like the Electricl~ company of Ghana will have all the goals

identified below except?

A. Efficiency B. Profitability C. Effectiveness D. Customer focus E. Quality improvement

70. In drawing up a business plan, issues of competitive business strategy may include all

except? A. Pricing B. Advertising & promotion

C. Market segment D. Managing sales and promotion

71. Objectives are the ... . ..... . ............. outcomes that an organization wishes to achieve by

carrying out its activities. A. Specific

B. General

C. Strategic

D. Precise

E. Personalized

72. For what purposes can a small business plan be used internally or externally? A. To set the direction and targets of the business B. To gain support C. To raise funds D. To monitor performance E. All the above

73. Civil society organisations are regarded as the third sector of every economy ... .. . . - .. - . -.. . -

True ................. False ........................... .


74. Organic growth is the means by which a firiH l'hooses to grow internally True, . ... .. .. . .. . .. ... , ... . .. ..... . ..... False . .. . ........ . . . ..... . .. ................ . ... .

\

75. The philosophy driving the university of Ghana strategic plan is the freewheel True .. .. ..... .. . . ...... ... ..... . ... False ............... . ................. ................... . ... .

76. Purchasing of goods and materials which the organization needs is termed as ... . ..... . A. Procurement B. Research and development C. Production D. Marketing E. Buying and selling

77 .................... is the application of original study to develop new products and systems. A. Procurement B. Research and development C. Production D. Marketing E. Buying and selling

78 . . ................ plans, organizes, directs and controls activities to provide products and servIces. A. Procurement B. Research and development C. Production D. Marketing E. Strategy

79 ............. ........ . is the management process that identifies, anticipates and supplies customer requirements efficiently and profitably. A. Procurement B. Research and development C. Customer service D. Marketing E. Strategy

Examiner: Dr. Darnoah Obi Berko Page 16 of 19

80 ............................ is about managing people in ways that integrate individual needs and objectives with those of the organization in an effective and flexible manner.

A. Recruitment and selection B. Research and development C. Training D. Human resource E. Strategy

81. All the following are functions of the purchasing department except ................. .

A. Acquiring raw materials B. Finding appropriate suppliers to deal with C. Providing up to date information on purchasing alternatives D. Maintaining stock E. Purchase what is convenient for themselves

List two component of the purchasing mix 82 ....................................... . ............................................................. .

83 . ... ................................................................................................. .

84. Which of these is not a function of the research and development function? A. Research on existing product of the organization B. Propose new products to the organization C. Provide organization with knowledge of current opportunities D. Investigate into appropriate technology the organization can use E. Participate purely academic research

85 .................. is when a product is being made to a customer's special order (often a 'one-off product that is unlikely to be repeat~~)~ _ ___ . ____ . __

A. Job production B. Normal production C. Batch production D. Flow production E. None of the above


10t 86 ...... .. . .... ... .. is the production of a large quantity of the same product which is not intended

for a sale to a single customer or where the product is being made at regular interval in specific quantities. A. Job production B. Normal production C. Batch production D. Flow production E. None of the above

87 ..... . ...... . . . . . .... . .. . . is the term used when a product is made on a continuous basis, without any interruptions in the production process. A. Job production B. Normal production C. Batch production D. Flow production E. None of the above

88. Marketing role in any organization is limited to sales. A.TRUE B.FALSE

89. The major reason for segmenting the market is to allow organizations identify wealthy clients or customers. A TRUE B. FALSE

90. A market can b e segmented by age, sex geographical location and love. A TRUE B. FASLE

91. All these are objectives of Human Resource department except ................ . A meet organizational social and legal responsibilities B. maintain good relationship among workers C. to develop their human resource D. selecting and recruiting employees E. none of the above

Examiner: Dr. Damoah Obi Berko Page 18 of19

I 1'02-92 ............. . .............. is to ensure that replacements are available for key members of staff

due to leave or through retirement, whether these replacements are developed internally or recruited from outside. A. Succession planning B. Mentoring planning C. Replacement planning D. Coaching planning E. None of the above

93 ....................... involves all aspects of the monetary dealings of an organization, from attracting new investors to expenditure of office stationery.

A. Procurement B. Research and development C. Production D. Financial management E. Buying and selling

94 .......... .is a temporary endeavor undertaken to create a product/result/service.

95. Internal analysis is part of the implementation process in the business policy model

True .................. . ........................... False ................................................ ..

96. Project cycle has 5 processes ....................................................... ........................................................

From 97 -100, state the three main components of policy control

97 ............................................................................................... ~: ... : .. -.......... .

98 . .................................. . ........................................................................... .

99 ........ . . . ........... . ........................................................................................ .

100 Th . . e project cost management is one of the core areas. True ............. False .............. ..


Documents

ID NO . IIII ID ~LL , I · 2018. 11. 7. · TIME ALLOWED: TWO HOURS AND FIFTEEN MINUTES (2 HOURS & 15 MINS.) SECTION A QUESTION 1 Business Policy Ltd., a limited liability company