AQA Business Studies BUSS2 - 21th May 2012

TQM and cash flow were probably the hardest two questions, unfortunately they were the last two which was a bit annoying. Had to rush cash flow one a bit but managed two fors, one against and a conclusion, just not as in-depth as my other answers. :frown:

Reply 101

Benny100

2

TQM question was fine I thought, I said about the premium price of £500 so the TQM would be an advantage. However I said about the high initial costs with the current financial situation.

Looks like I got the calculation wrong, looked through my calculator history and for some reason done 2500/60 :redface:

Reply 102

dan94adibi

14

Original post by HeyyImRyan

TQM and cash flow were probably the hardest two questions, unfortunately they were the last two which was a bit annoying. Had to rush cash flow one a bit but managed two fors, one against and a conclusion, just not as in-depth as my other answers. :frown:

Talked about the outstanding loan and said about sales picking up and start from 2013. Overall i said probability is going to increase in long term and prices and demand is likely to increase. And said that cash flow is more important since sufficient cash could lead them to enter the event of insolvency.

Reply 103

mainac1912

Original post by Kellyy :)

Me too

yh i feel the same way, the way it is marked is just so subjective to what the examiner thinks is right or not

Reply 104

dan94adibi

14

Original post by Benny100

TQM question was fine I thought, I said about the premium price of £500 so the TQM would be an advantage. However I said about the high initial costs with the current financial situation.

Looks like I got the calculation wrong, looked through my calculator history and for some reason done 2500/60 :redface:

Yh said about premium prices in TQM question.

Reply 105

lidiya

Original post by dan94adibi

Yh I said that too about Mayo and mentioned the £1m
I said it will bring employees together and they'll see their efforts are making a difference and also talked about quality assurance and alternative and the award they can get but I evaluated they should use TQM despite high costs it will be good in long term as TQM will create a good social working condition and related to mayo and howmitmcould improve productivity.

YEsssss i said that they should use it too.. and i said about quality assurance that they must do it in this way as it will increase productivity and responsibility or something like thatt.. :smile:

)

Reply 106

wastry

2

It was all going so well... then check the clock to see I have 18 minuates to get 28 marks (last two questions)! Managed to get everything mentioned on here so far, premium prices, motivating staff etc. but didn't lay it out in the clearest way so hopeing for a kind marker. I've heard though running out of time is a common theme with BUSS2 so hopefully should slightly help bring down grade boundraies. However I remember feeling the sameway after BUSS1 which turned out well so hopefully will still get a good grade :smile:

Last question was horrible imo. very little to talk about was more of an evalutaion question regarding LT VS ST imo.

Reply 107

dan94adibi

14

Original post by lidiya

YEsssss i said that they should use it too.. and i said about quality assurance that they must do it in this way as it will increase productivity and responsibility or something like thatt.. :smile:

)

Oh thank god :smile:

Reply 108

Benny100

2

I did some extra calculations on the cash flow question and it worked out that sales would not finance the companies expenditure so I made a point of that the business was not going to be profitable hence they should be more worried about profability.

Reply 109

College_Dropout

21

Original post by Benny100

I did some extra calculations on the cash flow question and it worked out that sales would not finance the companies expenditure so I made a point of that the business was not going to be profitable hence they should be more worried about profability.

I used that argument for the product quality thing, saying they should have waited until they were established in Europe and making a profit before they invested the £1m into it.
Cashflow question - I put cashflow is important for short term and profitability is better for long term. Therfore he is right to focus on cashflow while they are starting off in europe as thats were 85% of the sales are.

Reply 110

Forza-Milan2011

I think it was easier than unit 1 for sure!

Unfortunately rushed the last question which i didn't do that well though :frown:

Reply 111

HP348

2

Does this sounds alright for the cash flow vs profitability question. ( very brief just main points)

yes cash flow the bank loans with cash flow problems * detailed explanation*
No profitability cash flow situation can be easily managed through leasing less land, reduced labour force, and another factor that i cant remember. Therefore it is better to focus on a strategy ready for when product can be sold to market.

Conclusion: Vital sort term for cash flow * explain * in order to be profitable needs investment in advertising and promotion to establish brand name and reputation abroad which can't be achieved with a bad cash flow.

Reply 112

Missemmat

Original post by College_Dropout

I used that argument for the product quality thing, saying they should have waited until they were established in Europe and making a profit before they invested the £1m into it.
Cashflow question - I put cashflow is important for short term and profitability is better for long term. Therfore he is right to focus on cashflow while they are starting off in europe as thats were 85% of the sales are.

I put a similar response in terms of that cash flow is important short term and profitability is better long term. Although I hope I emphasised the point.

Reply 113

mattbr123

Original post by lidiya

for the TQM was it about that would the business feel better for using it rite?
Well if so, I said that firstly they would have to invest a lot of money..well they did.. then I said that it will reduce its competitiveness.. But on the other hand the workers would be meeting their social needs (Mayo) and then said it will increase producivity :smile:

)

The cost of the TQM was £1 mil. If you read the figures that were provided it said that ensuring a high quality would generate an extra £500 per tonne. 2014 was supposed to have an output level of just over 4000 I beleive.

4000 x 500 = 2mil. Therefore you were supposed to write that although it would be costly for them to impliment the TQM strategy with the training e.c.t it would be benefitial in the long term as they were generate a much higher revenue and therefore have a higher net profit margin.

:smile:

Reply 114

yaboy

i mentioned mayo but forgot to specifically mention the hawthorne effect will that effect me too much?