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    Cambridge Ordinary Level

    Uploaded by

    Syeda Fiza Kazmi

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    © All Rights Reserved
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    Cambridge Ordinary Level

    Uploaded by

    Syeda Fiza Kazmi
    34 views4 pages

    Original Title

    7115_s15_in_21

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    Copyright:

    © All Rights Reserved
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    34 views4 pages

    Cambridge Ordinary Level

    Uploaded by

    Syeda Fiza Kazmi

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    You are on page 1of 4

    Cambridge International Examinations

    Cambridge Ordinary Level

    BUSINESS STUDIES 7115/21


    Paper 2 May/June 2015
    INSERT
    1 hour 30 minutes
    *0167491319-I*

    READ THESE INSTRUCTIONS FIRST

    This Insert contains the case study material.


    Anything the candidate writes on this Insert will not be marked.

    This document consists of 3 printed pages and 1 blank page.

    DC (RW) 109040
    © UCLES 2015 [Turn over
    2

    Delicious Delights (DD)

    David is a successful entrepreneur. He set up Delicious Delights (DD) as a private limited company
    10 years ago in country X. David invested all of his own savings when he set up DD and he is still
    the major shareholder. David is the Managing Director and works 7 days a week. The company has
    increased profits every year as David develops a new range of cakes each year. David has appointed
    managers to control each department (see Appendix 1) and the company employs 125 people.

    DD employs many employees for the production of cakes. Large ovens are used to bake the cakes.
    David wants to increase production efficiency. He is considering the following two options.

    Option A
    Provide more training for the existing production employees. This would involve on-the-job training
    provided by the most experienced employees. David estimates efficiency would increase by 10%.

    Option B
    Change the production process to an automated production line. This would require an investment
    of $8m and only 10 employees would be required to operate the machinery. The other production
    employees would be made redundant. Off-the-job training would be required for the remaining
    10 employees.

    Appendix 1

    Organisational structure of DD

    David (Managing Director)

    Operations Finance Marketing Human Resources


    manager manager manager manager

    100 cake production 10 finance 8 marketing 3 human resources


    employees employees employees employees

    © UCLES 2015 7115/21/INSERT/M/J/15


    3

    Appendix 2

    Financial information from DD Balance Sheet ($ 000)

    2013 2014

    Non-current (fixed) assets 100 000 100 000


    Current assets 1000 1000
    Inventories (stock) 500 300
    Current liabilities 500 600
    Current ratio 2 ?
    Acid test ratio 1 ?

    Appendix 3

    To: Marketing Manager


    From: David
    Date: 10 May 2014
    Re: Increasing cake sales

    Hi

    I have been looking at our sales figures for cakes and I am constantly thinking of new ways of selling to
    customers. Customers usually buy our cakes from large supermarkets and small food shops, but I think
    we could start to sell our cakes directly to customers using e-commerce. There are many cost savings
    to be made from using e-commerce but would this be a suitable method for our cakes?

    We have a large number of loyal customers in country X. However, our competitors are starting to sell
    cakes in large quantities to supermarkets in other countries. Would this be a better way of increasing
    sales than using e-commerce?

    Let me know what you think.

    © UCLES 2015 7115/21/INSERT/M/J/15


    4

    BLANK PAGE

    Permission to reproduce items where third-party owned material protected by copyright is included has been sought and cleared where possible. Every reasonable
    effort has been made by the publisher (UCLES) to trace copyright holders, but if any items requiring clearance have unwittingly been included, the publisher will
    be pleased to make amends at the earliest possible opportunity.

    To avoid the issue of disclosure of answer-related information to candidates, all copyright acknowledgements are reproduced online in the Cambridge International
    Examinations Copyright Acknowledgements Booklet. This is produced for each series of examinations and is freely available to download at www.cie.org.uk after
    the live examination series.

    Cambridge International Examinations is part of the Cambridge Assessment Group. Cambridge Assessment is the brand name of University of Cambridge Local
    Examinations Syndicate (UCLES), which is itself a department of the University of Cambridge.

    © UCLES 2015 7115/21/INSERT/M/J/15

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