Business management · 2011 · May · Paper 2 · HL · Question paper

M11/3/BUSMT/HP2/ENG/TZ0/XX BUSINESS AND MANAGEMENT HIGHER LEVEL PAPER 2 Friday 20 May 2011 (morning) I NST r U c TI o NS T o ca N d I da TES  d o not open this examination paper until instructed to do so.  Section a: answer one question.  Section B: answer two questions. 2 hours 15 minutes 2211-5012 9 pages © International Baccalaureate organization 2011 2 2 1 1 5 0 12 M11/3/BUSMT/HP2/ENG/TZ0/XX 2211-5012 – 2 – SECTION A Answer one question from this section. 1. Strider Retail Strider Retail is a chain of shops that import and sell electrical appliances, including plasma (screen) televisions. The sale of plasma televisions is seasonal, in particular when major sporting events are being held. Plasma televisions are expensive. Research has indicated that with improvements in technology the cost of importing new models has fallen significantly. Strider Retail expects this to continue into the future. The following information shows Strider Retail’ s purchases and sales of plasma televisions over a six month period from July 2010 to December 2010. Opening stock of plasma televisions on 1 July 2010: 150 @ US$900. Month (2010) Stock purchased (units) Stock sold (units) July 120 August 100 @ US$900 90 September 75 @ US$850 75 October 60 @ US$825 40 November 75 @ US$800 100 December 100 @ US$800 120 Strider Retail has conducted additional secondary research, which reveals that the product life cycle for electrical appliances, such as plasma televisions, is getting shorter with new models being produced every three months. This research has suggested that Strider Retail may have to reduce its selling prices much more often. With so many sporting events being shown on