| Date | November 2016 | Marks available | 2 | Reference code | 16N.1.SL.TZ0.4 |
| Level | Standard level | Paper | Paper 1 | Time zone | Time zone 0 |
| Command term | Calculate | Question number | 4 | Adapted from | N/A |
Question
The Indian manufacturer has made a test batch of 100 IBAT lenses and these are being checked by Falit.
Didi has further investigated costs and Emma has conducted market research to identify potential customers. Didi is concerned at how many IBATs Medimatters would need to sell for the venture to be worthwhile. He forecasts the following:
- Fixed costs: $9000 per month.
- Variable costs: $50 per IBAT.
- Sales price: $80 per IBAT.
Ahmed considered his role as leader.
- He has consulted widely on a draft business plan and has discussed and agreed the mission and vision statements because he wants to involve everyone.
- The group are all very enthusiastic about IBAT, although some are anxious about the risks involved and have asked for more guidance.
- He spends a lot of time keeping everyone informed of project developments in addition to coordinating all of their efforts.
- Emma has many ideas about expanding into new markets, however, Didi does not agree and has argued with Emma.
- He is prepared to make urgent decisions himself. For example, without consultation he decided that Medimatters should become a private limited company.
Define the term vision statement.
Refer to case study: Medimatters
Calculate the forecasted break-even quantity per month for the IBAT (show all your working).
Refer to case study: Medimatters
Calculate the forecasted monthly profit or loss if Medimatters sells 400 IBATs per month (show all your working).
Refer to case study: Medimatters
Explain two relevant secondary market research methods (sources) that Emma could have used to identify potential customers.
Refer to case study: Medimatters
“Ahmed considered his role as leader.” Recommend an appropriate leadership style for Ahmed.
Refer to case study: Medimatters
Markscheme
The vision statement is a sentence that refers to the ultimate goal of an organisation, what it wants to achieve in the future. It is expressed as a long-term aspiration.
Candidates are not expected to word their definition exactly as above.
Award [1] for a basic definition that conveys partial knowledge and understanding.
Award [2] for a full, clear definition that conveys knowledge and understanding similar to the answer above.
Break-even quantity =
=
=
= 300 IBATS
Award [1] for the correct answer and [1] for working, award a maximum of [2].
Award only [1] if wrong units stated (but allow no units).
Do not award any mark for the formula alone.
This would be 100 IBATs per month more than break even, so profit would be 100 x $30 = $3000
OR
Profit or loss = sales revenue – (fixed cost – variable cost)
= 32 000 – 9000 – 20 000
= $3000
Award [1] for the correct answer and [1] for working, award up to a maximum of [2].
Award only [1] if wrong units stated or no units.
Possible methods (sources) of secondary market research include:
- medical journals
- lists of pharmacies
- lists of medical professionals, hospitals etc
- government publications relating to medical/pharmaceutical issues.
Note: the word “internet” alone is not a research method.
Mark as 2+2.
Award [1] for each method (source) identified and award [1] for a relevant explanation of that advantage.
Non-contextual answers award a maximum of [2] in total.
Evidence in the additional stimulus material suggests he:
- is prepared to be autocratic where necessary
- likes to hear other peoples’ views
- puts effort into keeping people informed
- consults widely
- acted decisively at times.
In addition:
- he has experience with project management
- manages a talented and committed group of people
- the group have chosen him
- people within the group seem to have clearly defined roles
- some of the group need guidance.
It would seem, therefore, that:
- autocratic management would not be appropriate except in situations where immediate decisions are required
- democratic leadership might be appropriate, both in terms of the team he manages and his own personal qualities
- laissez faire might mean issues do not get resolved such as disagreements, sense of direction.
The best style of leadership is likely to be to adjust to circumstances and people ie, situational leadership.
There are three aspects to this choice; the nature of the tasks, the nature of his colleagues, his own personal qualities.
Marks should be allocated according to the paper 1 markbands for May 2016 forward.
Purely theoretical answers or with no effective use of stimulus material in range [3] to [4] with better answers award a maximum of [4].
If only one leadership style is considered award a maximum of [4].
Two or more styles considered with more than one aspect, but limited use of evidence award a maximum of [6].
Two or more styles considered, good use of evidence, particularly from Section B, but limited contrast award a maximum of [8].
For full marks two or more styles contrasted, aspects, evidence, particularly from section B, used effectively.
