Business management · 2012 · Paper 2 · SL · Question paper

N12/3/BUSMT/SP2/ENG/TZ0/XX BUSINESS AND MANAGEMENT STANDARD LEVEL PAPER 2 Friday 9 November 2012 (morning) INSTRUCTIONS TO CaNdIda TES  d o not open this examination paper until instructed to do so.  Section a: answer one question.  Section B: answer two questions.  a calculator is required for this examination paper.  a clean copy of the Business and Management formulae sheet is required for this examination paper.  The maximum mark for this examination paper is [60 marks]. 1 hour 45 minutes 8812-5014 9 pages © International Baccalaureate Organization 2012 8812501 4 N12/3/BUSMT/SP2/ENG/TZ0/XX 8812-5014 – 2 – SECTION A Answer one question from this section. 1. Wavin’ Surfboards (WS) Wavin’ Surfboards (WS ) manufactures surfboards. The business was founded in 1978 by Brent Bass who operated it as a sole trader. In 1991, after years of sales growth and employing many employees, Brent changed WS into a private limited company. The growth in scale of operation was a challenge for Brent, who had a laissez-faire leadership style. He loved surfing and as a young person he started producing and selling surfboards at his home. He had not received any business training. As the business grew Brent struggled to develop the business and management skills necessary to operate the business. Due to the high quality and popularity of the surfboards, sales continued to increase. Brent’s accountant believes that the company will need a new larger building in two years. The span of control within the company is currently wide, and increasing the number of units (surfboards) produced would require employing more managers. For Brent, this would mean spending more time supervising managers and less time producing and promoting surfboards. Brent would also have to decide whether to recruit the new managers internally or externally. Brent’s accountant prepared a comparison of the current and proposed new scale of operation. Current building Proposed new building Actual units produced per year Maximum capacity units produced per year Initial forecasted units produced per year Maximum capacity units produced per year Sales in units 2400 3000 3300 6000