Practice Exam 6
VCE Business Management Units 3 & 4 | Section A: 40 marks, Section B: 35 marks | Total: 75 marks
✎ 15 minutes reading time. 2 hours writing time. There are two sections. Section A (40 marks): answer all questions. Section B (35 marks): a case study is provided – answer all questions based on it. Complete ALL questions on paper before opening the Model Answers lesson. No notes permitted. Aim for approximately 1 minute per mark.
SECTION A
Question 1 (4 marks)
Explain two on-the-job methods of training and development a large organisation could use to develop its employees’ skills.
✎ Write your answer on paper
Question 2 (4 marks)
Using Locke’s goal-setting theory, explain how setting specific and challenging goals can improve employee performance.
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Question 3 (4 marks)
Explain the concept of lean management and outline one type of waste (muda) a manufacturing business could aim to minimise.
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Question 4 (4 marks)
Identify two Key Performance Indicators (KPIs) a business could use to review the effectiveness of a change initiative, and explain what each indicator measures.
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Question 5 (4 marks)
Using Lewin’s Force Field Analysis, distinguish between a driving force and a restraining force in the change process. Give an example of each.
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Question 6 (10 marks)
Evaluate the effectiveness of low-risk strategies compared with high-risk strategies for implementing change in a large-scale organisation experiencing employee resistance.
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Extended Response 1: Managing Resistance to Change
Question 7 (6 marks)
Extended Response 1: Managing Resistance to Change (a)
Explain two reasons why employees may resist organisational change, and outline one low-risk strategy management could use to address each reason.
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Extended Response 1: Managing Resistance to Change
Question 8 (4 marks)
Extended Response 1: Managing Resistance to Change (b)
Discuss why a manager might choose to use a high-risk strategy, such as explicit coercion, to implement change despite the potential for damage to employee relations.
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SECTION B — CASE STUDY
Case Study – Read carefully before answering Section B
Bloom & Co
Industry: Artisan Bakery & Cafe Retail
Bloom & Co is a Melbourne-based bakery chain with 18 stores, known for handmade sourdough, pastries and specialty coffee sold at premium prices. For a decade, Bloom & Co built a loyal customer base by emphasising artisan quality, distinctive in-store design and highly trained baristas. In the past 18 months, however, two new competitors have entered its suburban markets: a discount bakery franchise offering bread and pastries at almost half of Bloom & Co’s prices, and a national cafe chain offering fast, standardised coffee and food at high speed and low cost. Bloom & Co’s sales growth has slowed for the first time since it was founded, and market research shows some price-sensitive customers are switching to the discount franchise, while time-poor commuters are choosing the faster national chain. The Board has commissioned a strategic review to decide how Bloom & Co should reposition itself. Some directors favour investing further in premium ingredients, exclusive recipes and a redesigned in-store experience to justify Bloom & Co’s prices, while others argue the business should introduce a lower-cost ‘grab and go’ range to compete directly with the new entrants in select high-traffic locations. The CEO has asked management to consider Porter’s Generic Strategies before recommending a new direction, alongside the organisational changes that would be required to support it.
Question 9 (5 marks)
Explain Porter’s Generic Strategies of cost leadership and differentiation, referring to how each could apply to Bloom & Co.
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Question 10 (6 marks)
Recommend which of Porter’s Generic Strategies Bloom & Co should adopt in response to its new competitors, and justify your recommendation using evidence from the case study.
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Question 11 (6 marks)
Analyse two internal or external pressures described in the case study that are driving the need for change at Bloom & Co.
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Extended Response: Implementing Bloom & Co’s New Strategy
Question 12 (10 marks)
Extended Response: Implementing Bloom & Co’s New Strategy (a)
Using Lewin’s Force Field Analysis, identify two driving forces and two restraining forces Bloom & Co is likely to encounter when implementing its chosen strategy, and explain how management could strengthen the driving forces to support successful change.
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Extended Response: Implementing Bloom & Co’s New Strategy
Question 13 (8 marks)
Extended Response: Implementing Bloom & Co’s New Strategy (b)
Recommend a change management strategy Bloom & Co could use to implement its new strategic direction, and evaluate the Key Performance Indicators the Board should monitor to determine whether the repositioning has been successful.
✎ Write your answer on paper
✓ Finished? Open the next lesson – Model Answers – to mark your work.
