2

1 (a) Explain four barriers to communication for a business.

Barrier 1: ...........................................................................................................................

...........................................................................................................................................

...........................................................................................................................................

...........................................................................................................................................

Barrier 2: ...........................................................................................................................

...........................................................................................................................................

...........................................................................................................................................

...........................................................................................................................................

Barrier 3: ...........................................................................................................................

...........................................................................................................................................

...........................................................................................................................................

...........................................................................................................................................

Barrier 4: ...........................................................................................................................

...........................................................................................................................................

...........................................................................................................................................

........................................................................................................................................... [8]

© UCLES 2023 06_0986_21_2023_1.2

 3

(b) Consider the following two ways VP can purchase its inventory. Which way should it use?
Justify your answer.

• Head Office purchases the inventory for all the restaurants.

• Restaurant Managers purchase their own inventory from local suppliers.

Head Office purchases the inventory for all the restaurants: ...........................................

...........................................................................................................................................

...........................................................................................................................................

...........................................................................................................................................

...........................................................................................................................................

...........................................................................................................................................

...........................................................................................................................................

...........................................................................................................................................

Restaurant Managers purchase their own inventory from local suppliers: .......................

...........................................................................................................................................

...........................................................................................................................................

...........................................................................................................................................

...........................................................................................................................................

...........................................................................................................................................

...........................................................................................................................................

...........................................................................................................................................

Recommendation: ............................................................................................................

...........................................................................................................................................

...........................................................................................................................................

...........................................................................................................................................

...........................................................................................................................................

...........................................................................................................................................

...........................................................................................................................................

........................................................................................................................................... [12]

© UCLES 2023 06_0986_21_2023_1.2 [Turn over

 4

2 (a) Explain two advantages and two disadvantages of VP’s Restaurant Managers delegating
tasks to their Assistant Managers.

Advantage 1: ....................................................................................................................

...........................................................................................................................................

...........................................................................................................................................

...........................................................................................................................................

Advantage 2: ....................................................................................................................

...........................................................................................................................................

...........................................................................................................................................

...........................................................................................................................................

Disadvantage 1: ................................................................................................................

...........................................................................................................................................

...........................................................................................................................................

...........................................................................................................................................

Disadvantage 2: ................................................................................................................

...........................................................................................................................................

...........................................................................................................................................

........................................................................................................................................... [8]

© UCLES 2023 06_0986_21_2023_1.2

 5

(b) Using Appendix 2 and other information, consider the two countries VP could choose to locate
its new restaurants. Which country should VP choose? Justify your answer.

Country A: .........................................................................................................................

...........................................................................................................................................

...........................................................................................................................................

...........................................................................................................................................

...........................................................................................................................................

...........................................................................................................................................

...........................................................................................................................................

...........................................................................................................................................

Country B: .........................................................................................................................

...........................................................................................................................................

...........................................................................................................................................

...........................................................................................................................................

...........................................................................................................................................

...........................................................................................................................................

...........................................................................................................................................

...........................................................................................................................................

Recommendation: ............................................................................................................

...........................................................................................................................................

...........................................................................................................................................

...........................................................................................................................................

...........................................................................................................................................

...........................................................................................................................................

...........................................................................................................................................

........................................................................................................................................... [12]

© UCLES 2023 06_0986_21_2023_1.2 [Turn over

 6

3 (a) Explain two possible reasons why VP wants to expand.

Reason 1: .........................................................................................................................

...........................................................................................................................................

Explanation: ......................................................................................................................

...........................................................................................................................................

...........................................................................................................................................

...........................................................................................................................................

...........................................................................................................................................

...........................................................................................................................................

Reason 2: .........................................................................................................................

...........................................................................................................................................

Explanation: ......................................................................................................................

...........................................................................................................................................

...........................................................................................................................................

...........................................................................................................................................

...........................................................................................................................................

........................................................................................................................................... [8]

© UCLES 2023 06_0986_21_2023_1.2

 7

(b) Consider the benefits and limitations of the following two ways VP can enter a new market in
another country. Which way should VP choose? Justify your answer.

• Joint venture
• Franchising

Joint venture: ....................................................................................................................

...........................................................................................................................................

...........................................................................................................................................

...........................................................................................................................................

...........................................................................................................................................

...........................................................................................................................................

...........................................................................................................................................

...........................................................................................................................................

Franchising: ......................................................................................................................

...........................................................................................................................................

...........................................................................................................................................

...........................................................................................................................................

...........................................................................................................................................

...........................................................................................................................................

...........................................................................................................................................

...........................................................................................................................................

Recommendation: ............................................................................................................

...........................................................................................................................................

...........................................................................................................................................

...........................................................................................................................................

...........................................................................................................................................

...........................................................................................................................................

...........................................................................................................................................

........................................................................................................................................... [12]

© UCLES 2023 06_0986_21_2023_1.2 [Turn over

 8

4 (a) Explain, using an example, one reason why VP might need:

• short-term finance
• long-term finance.

Short-term finance: ...........................................................................................................

...........................................................................................................................................

...........................................................................................................................................

...........................................................................................................................................

...........................................................................................................................................

...........................................................................................................................................

...........................................................................................................................................

...........................................................................................................................................

Long-term finance: ............................................................................................................

...........................................................................................................................................

...........................................................................................................................................

...........................................................................................................................................

...........................................................................................................................................

...........................................................................................................................................

...........................................................................................................................................

........................................................................................................................................... [8]

© UCLES 2023 06_0986_21_2023_1.2

 9

(b) Using Appendix 3 and other information, consider how the following three changes in country
Z may affect VP. Which change is likely to have the greatest effect on VP's profits? Justify
your answer.
• Increase in interest rates.
• Depreciation of country Z’s exchange rate.
• New legal controls which require all restaurants to list the ingredients in their meals.

Increase in interest rates: .................................................................................................

...........................................................................................................................................

...........................................................................................................................................

...........................................................................................................................................

...........................................................................................................................................

...........................................................................................................................................

Depreciation of country Z’s exchange rate: ......................................................................

...........................................................................................................................................

...........................................................................................................................................

...........................................................................................................................................

...........................................................................................................................................

...........................................................................................................................................

New legal controls which require all restaurants to list the ingredients in their meals: .....

...........................................................................................................................................

...........................................................................................................................................

...........................................................................................................................................

...........................................................................................................................................

...........................................................................................................................................

Conclusion: .......................................................................................................................

...........................................................................................................................................

...........................................................................................................................................

...........................................................................................................................................

...........................................................................................................................................

........................................................................................................................................... [12]

© UCLES 2023 06_0986_21_2023_1.2