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UNIVERSITY OR COLLEGE OF CAMBRIDGE INTERNATIONAL ASSESSMENTS General Qualification of Education Advanced Level

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May/June 2012 3 hours

BUSINESS STUDIES Paper a few CASE STUDY

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Additional Materials:

Answer Booklet/Paper

BROWSE THESE GUIDANCE FIRST If you are given a response Booklet, follow the instructions within the front cover of the Report. Write the Centre amount, candidate amount and brand on all of the checking you hand in. Write in dark green or dark pen. You might use a smooth pencil for just about any diagrams, chart or hard working. Will not use favorites, paper movies, highlighters, glue or modification fluid. Section A Solution all questions. Section B Answer one problem. The businesses explained in this question paper are entirely fictitious. You are advised to spend forty minutes upon Section B. At the end with the examination, fasten all your job securely with each other. The number of signifies is given in brackets [ ] by the end of each question or portion question.

This document consists of 6 printed pages and 2 blank pages. DC (RCL (JDA)) 48734/3 В© UCLES 2012

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a couple of Global Conglomerate Company (GCC) Global Conglomerate Company (GCC) is one among Asia's most effective growing conglomerates. 30 years before the Hussein brothers began selling used motor autos and they quickly acquired a preexisting city hub car merchant. This was accompanied by many other mergers and takeovers. GCC is actually a generally diversified conglomerate with subsidiary businesses in the steel, car, transport, submitting, construction, education and foodstuff processing companies. GCC is a large general public limited organization and the Hussein brothers now own less than 50% with the total stocks and shares. However , a pair of the siblings are still within the Board of Directors. Shareholders unhappy with returns Previous month's Gross annual General Getting together with was not a fairly easy one to get the owners. The Board's strategy is definitely ‘investing intended for long term growth' to achieve the aim of ‘long term shareholder value'. This was rebuked by a huge group of investors. Two responses from investors at the meeting were normal: • ‘Investing for the future by using this year's income leaves significantly less capital to pay out in dividends in the short term. ' • ‘With the gross yield and price profits ratio dropping, why should I actually keep my shares in GCC? ' Shareholders applied an extract from the balances to support their views (see Appendix 1). The administrators asked for more hours for their strategy to achieve outcomes and improve returns to shareholders. The Chairman Leo Hussein said: ‘Profits happen to be unlikely to become higher next year. We would not know that a global economic downturn could occur just as we were beginning our ‘investing for permanent growth' technique. I am sure that in 3 to 4 years' time the gross and share value will go up'. After a long debate the directors decided to look at minimizing retained profits to increase dividends in 2013 or offering off a division of the corporation to raise money for a ‘special' dividend payout. Communication problems The global distributed of GCC means that that now works from 63 locations with 162 500 employees. This has led to the utilization of many different kinds of communication. There are barriers to effective connection, such as the make use of many 'languages' and differences in attitudes of workers and managers. Gatherings of elderly managers happen to be difficult to organise due to miles between business subsidiaries. Crucial communications coming from business subsidiaries are often not really received quickly enough by simply directors by Head Office. Removing one part of administration in the motor unit car split did increase communication, but other partitions have not delayered their organisational structure. Your Resources Representative believes that information and communication technology is the response to these complications. He would like all staff and managers to be granted with lightweight, Internet-linked personal computers. These would allow receipt of messages and sending of quick replies....