Practice Exam 3
VCE Business Management Units 3 & 4 | 15 minutes reading time, 2 hours writing time
✎ Complete ALL questions on paper before opening the Model Answers lesson. No notes permitted. This paper has two sections: Section A (short-answer and extended-answer questions, 50 marks) and Section B (short-answer and extended-answer questions based on a case study, 25 marks). Total marks: 75. Aim for approximately 1 minute per mark.
SECTION A — 50 MARKS
Question 1 (4 marks)
Explain the concept of corporate culture and describe two factors that can shape the corporate culture of a large-scale organisation.
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Management Styles (a)
Question 2 (3 marks)
Distinguish between an autocratic management style and a consultative management style.
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Management Styles (b)
Question 3 (3 marks)
Explain two factors that would influence a manager’s choice of management style in a given situation.
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Management Skills (a)
Question 4 (3 marks)
Explain the management skill of communication and why it is important for effective management.
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Management Skills (b)
Question 5 (3 marks)
Explain the management skill of delegation, including one risk associated with poor delegation.
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Question 6 (4 marks)
Explain how adopting a participative management style could improve decision-making and employee motivation within a team.
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Question 7 (4 marks)
Explain the relationship between management style and corporate culture, using an example to illustrate your answer.
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Question 8 (4 marks)
Identify and explain the interests of two internal stakeholders of a large-scale organisation, and explain how a manager’s management style could affect their satisfaction.
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Question 9 (4 marks)
Explain how a manager could apply Locke’s Goal Setting Theory when setting performance goals for their team.
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Need for Change (a)
Question 10 (3 marks)
Explain one internal pressure for change that could lead an organisation to reconsider its management style.
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Need for Change (b)
Question 11 (3 marks)
Explain one strategy a business could use to reduce employee resistance when changing its management approach.
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Question 12 (2 marks)
Briefly explain how a strong corporate culture can support a business’s differentiation strategy.
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Question 13 (10 marks)
Evaluate the effectiveness of a large-scale organisation transitioning from an autocratic to a consultative management style in response to high staff turnover. In your response, consider the likely impact on corporate culture, employee motivation and the risk of resistance to change.
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SECTION B — CASE STUDY — 25 MARKS
Case Study — Rossi Bakehouse
Industry: Food manufacturing and retail (artisan bakery chain)
Rossi Bakehouse is a family-owned artisan bakery business founded in 1985 by Maria Rossi, who opened her first shop in Brunswick, Melbourne. Over three decades, Maria grew the business into a chain of 14 stores across Victoria, employing 180 staff, known for traditional sourdough and Italian-style pastries. Maria managed the business personally for most of its history, making all major decisions herself, closely supervising store managers and expecting staff to follow her instructions precisely. In 2025, Maria’s daughter, Elena Rossi, who holds a business degree and previously worked as an operations manager for a national retail chain, was appointed CEO. Elena wants to modernise the business by introducing formal HR policies, delegating greater authority and decision-making to store managers, setting performance-based KPIs for each store, and building a more open, collaborative corporate culture ahead of a planned national expansion. Elena believes this will support Rossi Bakehouse’s strategy of competing on premium quality and customer experience rather than price. However, several long-serving store managers and staff who are accustomed to Maria’s hands-on, directive style have reacted with scepticism, and two senior staff members have privately indicated they may resign if greater store autonomy leads to what they see as reduced consistency and control.
Question 14 (4 marks)
Referring to the case study, identify and explain the interests of two stakeholders of Rossi Bakehouse affected by Elena’s proposed management changes.
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Management Style Transition (a)
Question 15 (3 marks)
Referring to the case study, distinguish between Maria’s management style and the management style Elena intends to introduce.
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Management Style Transition (b)
Question 16 (3 marks)
Referring to the case study, explain two factors Elena should consider when determining an appropriate management style for the transition.
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Question 17 (5 marks)
Using Lewin’s Force Field Analysis, identify one driving force and one restraining force evident in the case study, and explain how each affects Rossi Bakehouse’s proposed change.
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Question 18 (4 marks)
Referring to the case study, explain one low-risk strategy Elena could use to reduce resistance among long-serving staff to the new management approach.
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Question 19 (6 marks)
Evaluate whether Elena’s plan to build a more participative corporate culture is likely to support Rossi Bakehouse’s strategy of competing through premium quality and customer experience as it expands nationally. Refer to specific details from the case study.
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✓ Finished? Open the next lesson – Model Answers – to mark your work.
