Practice Exam 7
VCE Business Management Units 3 & 4 | Section A: 50 marks, Section B: 25 marks | Total: 75 marks
✎ 15 minutes reading time. 2 hours writing time. There are two sections. Section A (50 marks): answer all questions. Section B (25 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 the difference between a persuasive management style and a consultative management style, and identify one situation in which a consultative style would be most appropriate.
✎ Write your answer on paper
Question 2 (4 marks)
Explain the recruitment process a large organisation would follow when filling a vacancy through external recruitment.
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Question 3 (4 marks)
Using Maslow’s hierarchy of needs, explain how a business could address employees’ social needs in the workplace.
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Question 4 (4 marks)
Identify two Key Performance Indicators a business could use to review its operational performance, and explain what each measures.
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Question 5 (4 marks)
Distinguish between quality control, quality assurance and Total Quality Management (TQM) as approaches to managing quality.
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Question 6 (10 marks)
Evaluate the effectiveness of lean management principles, including waste minimisation, in improving the efficiency of a large-scale manufacturing business.
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Extended Response 1: Total Quality Management
Question 7 (8 marks)
Extended Response 1: Total Quality Management (a)
Explain how a business could implement Total Quality Management (TQM) across its operations, referring to the role of employees, management and continuous improvement.
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Extended Response 1: Total Quality Management
Question 8 (6 marks)
Extended Response 1: Total Quality Management (b)
Discuss two types of waste identified in lean management (for example, overproduction, waiting, defects or unnecessary inventory) that a business could aim to minimise, and explain the benefit of reducing each.
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Extended Response 2: Quality Control vs Quality Assurance
Question 9 (4 marks)
Extended Response 2: Quality Control vs Quality Assurance (a)
Explain the difference between quality control and quality assurance.
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Extended Response 2: Quality Control vs Quality Assurance
Question 10 (2 marks)
Extended Response 2: Quality Control vs Quality Assurance (b)
Identify two consequences for a business of failing to manage the quality of its products or services effectively.
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SECTION B — CASE STUDY
Case Study – Read carefully before answering Section B
TerraFresh Produce
Industry: Organic Grocery Retail
TerraFresh Produce is a fast-growing chain of organic grocery stores that has expanded from 6 to 22 stores across Victoria in three years. To keep pace with demand, TerraFresh introduced a new automated warehouse and lean inventory system designed to reduce food waste and improve delivery speed to stores. While the changes have reduced spoilage rates by 18% and improved on-time deliveries, warehouse and store staff have reported that new standardised procedures leave little room for individual judgement, and rostering software has increased the frequency of split shifts. Staff turnover in TerraFresh’s warehouses has risen from 12% to 27% in the past year, and several long-serving employees have raised concerns at team meetings that efficiency improvements are being pursued at the expense of working conditions. Store managers have also reported a rise in customer complaints about out-of-stock items during peak periods, despite the new inventory system. The General Manager of Operations wants to continue improving efficiency and reducing waste, but the HR Manager has warned that continued staff dissatisfaction could undermine the quality gains TerraFresh has achieved and increase recruitment and training costs.
Question 11 (4 marks)
Identify two Key Performance Indicators referred to in the case study that TerraFresh Produce could use to review its performance, and explain what each indicates about the business.
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Question 12 (5 marks)
Explain how TerraFresh Produce’s new inventory system reflects lean management principles, and identify one type of waste it has helped to minimise.
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Question 13 (6 marks)
Analyse the impact of TerraFresh Produce’s operational changes on its employees as stakeholders, referring to specific evidence from the case study.
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Extended Response 3: Balancing Efficiency & Employee Wellbeing
Question 14 (6 marks)
Extended Response 3: Balancing Efficiency & Employee Wellbeing (a)
Recommend a strategy TerraFresh Produce could implement to reduce staff turnover in its warehouses without abandoning its efficiency gains.
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Extended Response 3: Balancing Efficiency & Employee Wellbeing
Question 15 (4 marks)
Extended Response 3: Balancing Efficiency & Employee Wellbeing (b)
Discuss why it is important for TerraFresh Produce’s management to balance operational efficiency with the wellbeing of its employees.
✎ Write your answer on paper
✓ Finished? Open the next lesson – Model Answers – to mark your work.
