Leaving Certificate Business

1

• Leaving Certificate Business
• Section A Sourcing Applied Business Questions
• Section B Methods of Correcting Business Tests
• Jerry Mc Carthy,
• De La Salle College,
• Macroom,
• Co. Cork.
• BSTAI National Conference,
• Athlone, November 2009.

2

• Sourcing Applied Business Questions (ABQs) in
  Leaving Business
• The Applied Business Question (ABQ) consists of
  a single practical Business Question, 80 marks
  are available.
• The text of the case study and the questions
  are based each year on three specified units of
  the syllabus, out of a total of 7.
• In 2010 the ABQ will be based on Units 2, 3, 4
  the same as 2000 and 2005 that is, a five year
  cycle.
• There are a number of sources of ABQs for use
  with a Leaving Certificate class, some of these
  are listed below.

3

• Sources of ABQs for use with the class of
  2009/2010
• Leaving Certificate Exam Papers 2000 and
  2005. (2)
• Additional ABQs in set of exam papers. (15)
• Textbooks/workbooks (4)
• BSTAI meetings/John O Connor (5)
• Mock/Pre Exam Papers (2)
• Amending the L.C. 1999,2001,2004,2006,2009 (5)

4

• We will now examine the type of questions that
  have been asked in the Leaving Certificate ABQs
  Examination on Units 2, 3, 4 as these are units
  relevant for the 2010 examination.
• A question has been asked on each relevant unit
  each year, i.e. one question on Unit 2, one on
  Unit 3 and one on Unit 4.
• All these additional ABQs should be judged with
  reference to these types of questions.
• Unit 2 Enterprise
• 2009 (A) Illustrate, using examples from the
  above text, four enterprising characteristics/skil
  ls shown by Liam. (20 marks)
• 2005 (A) Explain, using examples, the
  enterprising characteristics/skills shown by Tom.
  (20 marks)

5

• 2004(A) Explain with illustrations from the
  above information, four enterprising skills
  and/or characteristics shown by Peter. (20
  marks)
• 2000(A) Illustrate, from the above information,
  the enterprising characteristics shown by Paddy.
  (20 marks)
• 1999 (A) Outline the enterprise skills employed
  by Barry and Marion in the above situation. (20
  marks)
• 1999Sample (A) Explain the enterprise
  characteristics that you recognize in Patricia
  from the above information. (20 marks)

6

• Learning Outcomes Business Syllabus
• 1. Define enterprise
• 2. Identify the importance of enterprise skills
  in areas such as home, school, local community,
  Government departments, and business start-up
• 3. Explain the basic enterprise skills
• 4. Identify the characteristics of enterprising
  people
• 5. Analyse the importance of enterprise in
  business and the community (HL)
• 6. Identify enterprise skills, opportunities,
  risks and rewards from given data (HL).

7

• Unit 3 Management 1
• 2009 (B) Discuss three types of management
  control that you would recommend Liam put in
  place to secure the future of RES Ltd. (30
  marks)
• 2006 (A) Discuss how management activities can
  help Ruth improve the performance of the
  business. (30 marks)
• 2005 (C) What advice on management activities
  would you give to Tom in relation to the new
  network installation department? Make relevant
  assumptions where necessary. (30 marks)
• 2004 (C) Evaluate Peters management skills with
  a view to his improving his business and
  lifestyle. Support your answer with reference to
  the above text. (30 marks)
  

8

• 2001 (A) Illustrate two areas of control that you
  would recommend to be put in place immediately in
  the business. Outline one reason in each case and
  refer to the above text in your response.
  (30 marks)
• 2000 (B) Analyse the management activities used
  by Paddy in the running of his successful
  business. Refer to the above text in your
  answer. (20 marks)
• 1999 (C) Evaluate how the couple might succeed
  better in the business if they improved their
  management skills. (40 marks)
• 1999 Sample (C) Analyse the contribution to the
  business that would result from an improvement in
  Patricias management activities. (40 marks)

9

• Learning Outcomes Business Syllabus
• 1. Define management
• 2. Identify the importance of management skills
  in areas such as home, school, local community,
  Government departments and business start-up
• 3. List the characteristics of managers
• 4. Explain the basic management skills
• 5. Explain the central role of communications in
  business and management
• 6. Identify and explain the main barriers to
  effective communications
• 7. Demonstrate business data in the following
  written forms memos, reports, and business
  letters draft a visual presentation from given,
  data
• 8. Identify the duties of a chairperson and
  secretary and draft an agenda and minutes of a
  meeting
• 9. Distinguish between the methods of
  communication
• 10. Discuss the importance of general
  communication skills (HL)
• 11. Differentiate between enterprise and
  management (HL)
• 12. Explain the contribution of both managers and
  entrepreneurs to business (HL)
• 13. Discuss the nature of management activities
  and their linkages (HL).

10

• Unit 4 Managing 2
• 2007(B) Describe the types of insurance
  appropriate to the context described above.
  (30 marks)
• 2006(B) Advise Ruth on the strategies that will
  help her manage the changes that have to take
  place if the business is to succeed. (20
  marks)
• 2005(B) Evaluate Toms effectiveness as a Human
  Resource Manager. (30 marks)
• 2002(A) Analyse the importance of good
  employer/employee relationships in the running of
  companies such as Inell Limited. Refer to the
  central role of the Human Resource Department in
  the process. (30 marks)
• 2001(B) Discuss strategies that Aileen could use
  to successfully manage the change process in the
  business. Explain your answer fully. (30
  marks)
• 2000(C) Paddy often said that good Human Resource
  Management was the key to his success. Would you
  agree with his view? Using the information
  available about Stone Products Ltd., explain your
  answer fully. (40 marks)

11

• Learning Outcomes Business Syllabus
• 1. Outline the differences between managing a
  household and managing a business
• 2. Explain the importance of finance, insurance
  and tax implications for business
• 3. Identify activities common to managing a
  business and a household, including completion of
  relevant forms
• 4. Understand the similarities and differences
  between these activities in a household context
  and in a business context
• 5. Calculate and interpret the main profitability
  and liquidity ratios and debt/equity
• 6. Explain the key functions of human resource
  management
• 7. Explain the changing role of a manager from
  controller to facilitator
• 8. Understand the importance of employee
  participation
• 9. Understand how technology changes the role of
  management
• 10. Understand the relationship between employers
  and employees and the role of trade unions
• 11. Understand the central role of human
  resources in management(HL)
• 12. Identify the strategies for managing change
  (HL)
• 13. Discuss the importance of total quality
  management (HL)
• 14. Understand the importance of accountancy and
  business data in the monitoring of the business
  enterprise (HL).

12

• ABQ 2006(units 3, 4, 5)
• Ruth Cavanagh became Managing Director of
  Stylish Décor Ltd., a retail and wholesale
  business, one year ago. She took over the paint,
  wallpaper and tiling business when her father
  Paddy retired. Paddy had been a popular employer
  locally but the business had not grown and kept
  pace with developments in technology, marketing
  or human resource management. The companys
  premises is based in an expanding town within a
  one-hour commuting distance of Dublin and is in
  need of modernisation.
• The town has seen a large increase in new house
  building over the last few years and its
  development plan provides for further housing and
  industrial units. Ruth is ambitious. Her aim is
  to become a market leader. Research has convinced
  her of the benefits of adding a Do-It-Yourself
  (DIY) department to the existing business and
  setting up a second shop in a town less than
  twenty-kilometres away. These initiatives will
  require an increase in staff, a retraining
  programme for existing staff, incentives, and
  capital investment, if the business is to
  succeed.
• Ruth is a Business graduate and understands the
  importance of marketing for the success of a
  business. Her enterprises market share and
  turnover are below those of comparable
  businesses. Ruth intends to penetrate the market
  by a further fifty-percent within the next five
  years, to improve the expertise of staff, the
  quality of customer service and the product
  range. The fact that a major multiple is due to
  open a new hardware and gardening outlet with
  good parking just four kilometres away has
  concentrated her mind. Stylish Décor Ltd. has
  not, up to now, invested in marketing activities.
  She also intends to introduce clearly defined
  lines of responsibility for staff in the areas of
  purchasing, sales/marketing and offer employees
  rewards for achieving targets. She wants to make
  changes and respond to customer needs quickly but
  she is facing strong opposition from her staff.

13

• (A) Discuss how management activities can help
  Ruth improve the performance of the
  business. (30 marks) (B) Advise
  Ruth on the strategies that will help her manage
  the changes that have to take place if the
  business is to succeed. (20 marks)
• (C) Illustrate, using the above text, how
  applying the Price and Promotion elements of the
  marketing mix can contribute to achieving Ruths
  ambitions. (30 marks)
• NEW (C) Explain, using examples, the
  enterprising characteristics/skills shown by
  Ruth. (30 marks)
• Relevant characteristics/skills could include
• Innovative adding a DIY department
• Decisiveness She took over when her father
  Paddy retired
• Goal Setting Ruth intends to penetrate the
  market by a further 50"
• Risk Taker setting up a second shop in a town
  less than twenty kilometers away

14

• Renewable Energy Solutions (RES) Ltd(2009)(units
  1,2,3)
• Liam Best, an electrical engineer, established
  Renewable Energy Solutions (RES) Ltd ten years
  ago. The business imports, supplies and installs
  energy efficient solar panels that are used to
  heat homes and businesses. While attending a
  Trade Fair in Germany on behalf of his previous
  employer, Liam identified a niche in the market
  for an Irish supplier of solar panels. With
  twenty years experience in the heating and
  plumbing supplies business and with no
  opportunity for promotion, he decided to start
  his own business. Impressed with Liams knowledge
  and belief in his product, Liams bank manager
  and a number of private investors were happy to
  provide the necessary finance. The business grew
  rapidly and by the end of 2007 had a turnover of
  30 million and a workforce of thirty.
• The past year, however, has been difficult for
  the business. As the construction of new houses
  has fallen, there has been a steady decline in
  the sales of solar panels. Costs are rising and
  the business is finding it more difficult to pass
  on price increases to customers. Cash flow is
  tight and Liam is particularly concerned by the
  fact that two of his largest customers have not
  paid their bills on time. In addition, the
  company is finding it difficult to raise short
  term finance due to the current credit squeeze.
  Rising stock levels in the warehouse are also
  causing problems. A number of customers have
  recently returned solar panels, as a result of
  damage caused while in storage in the warehouse
  or in transit.
• Liam is confident that the demand for green
  energy sources in Ireland will increase again. He
  believes that the governments new Building
  Energy Rating (BER) regulations, combined with
  the increasing demand for more cost effective and
  environmentally friendly heating systems, will
  provide opportunities for his business.
• However, Liam has e-mailed all staff informing
  them that action will need to be taken swiftly if
  the business is to survive the current downturn
  in the economy. To avoid the introduction of
  compulsory redundancies, Liam explains in his
  e-mail that it will be necessary to implement a
  10 pay cut, with immediate effect for all
  workers. The staff contacted their trade union to
  express their concerns about the proposed pay
  cuts. A trade union meeting has been organised to
  discuss staff concerns and agree a response to
  the pay cut proposed by Liam.

15

• Illustrate, using examples from the above text,
  four enterprising characteristics/skills shown by
  Liam. (20 marks)
• (B) Discuss three types of management control
  that you would recommend Liam put in place to
  secure the future of RES Ltd. (30 marks)
• (C) (i) Describe, using the above text, one
  possible non-legislative and one legislative
  solution for the industrial relations problem
  facing RES Ltd.
• (ii)In your view how should Liam have dealt
  with the issue to lessen the likelihood of an
  industrial relations conflict? (30 marks)

16

• However, Liam has e-mailed all staff informing
  them that action will need to be taken swiftly if
  the business is to survive the current downturn
  in the economy. To avoid the introduction of
  compulsory redundancies, Liam explains in his
  e-mail that it will be necessary to implement a
  10 pay cut, with immediate effect for all
  workers. The staff contacted their trade union to
  express their concerns about the proposed pay
  cuts. A trade union meeting has been organised to
  discuss staff concerns and agree a response to
  the pay cut proposed by Liam.
• Amendment to text of ABQ new paragraph four
• However, Liam knows that to ensure the business
  survival, changes will have to be made. Over his
  twenty years experience in the heating and
  plumbing business he saw a lot of changes
  introduced especially in the areas of ICT, work
  practices and customer service. Change always
  caused difficulties but Liam feels the best
  approach is to communicate with staff to tackle
  the challenges. The people in RES Ltd are some of
  the most talented and committed in the green
  energy industry.

17

• New (C) Discuss strategies that Liam could use to
  successfully manage the change process in the
  business. Explain your answer fully. (30 marks)
• Relevant Strategies would include
• Total commitment by senior management to the
  changes proposed , Over his twenty years
  experiencehe saw a lot of changes introduced
• Consultation with trade unions/employee
  representatives, Liam feels the best approach is
  to communicate with staff ..
• Adequate funding for all stages of the change
  process, The business grew rapidly and by the of
  2007 had a turnover of 30 million

18

• Sources of ABQs for use with the class of
  2009/2010
• Leaving Certificate Exam Papers 2000 and
  2005. (2)
• Additional ABQs in set of exam papers. (15)
• Textbooks/workbooks (4)
• BSTAI meetings/John O Connor (5)
• Mock/Pre Exam Papers (2)
• Amending the L.C. 1999,2001,2004,2006,2009 (5)

19

• Section B
• Method of Correcting Business Tests
• The aim of this part of the talk is to outline a
  number of points that could be used to encourage
  best practice by our pupils. Thereby maximise
  their performance.
• The principle purpose is to try and eliminate the
  weaknesses in answering as found by correctors in
  state examinations.
• In the Chief Examiners Report on the Leaving
  Certificate Business Examination of 2005 the
  following weaknesses were identified
• Not reading the question properly
• Failing to respond appropriately to the verbs
  used in the question/part, especially evaluate
  and explain.
• Lack of neatness in, and unclear layout of,
  answer books
• Failure to expand on points made

20

• Recommendations
• 1.Students must be conscious of the Outcome Verb
  used. It is very important to read the question
  carefully particularly looking for outcome verbs
  such as Illustrate and Evaluate. Students often
  jump in without reading the full question.
• In an examination situation the outcome verbs-
  Describe, Outline, Explain, Discuss and Analyse
  should be taken to mean the relevant points must
  be STATED and DEVELOPED using textbook knowledge.
• Students must give relevant examples, diagrams,
  graphs to satisfy the requirement of the outcome
  verb Illustrate.

21

• Evaluate is an outcome verb that students find
  most difficult. The Chief Examiner stated that
  in questions where candidates are asked to
  evaluate some attempt must be made to give an
  opinion/judgment on the issues covered in the
  answer.
• These difficulties could be overcome by
  encouraging students
• (a) To write a heading evaluation in the answer.
• (b) Answer the question using It is good
  because. or It is bad because..
• (c) A different colour ink could be used to
  clarify that an evaluation has been made.
• Teachers could emphasis the outcome verbs by
  underlining them in house exams.
• Teachers should rephrase the questions using a
  different verb. This will assist the students to
  discriminate between the differing requirements.

22

• A. Outcome Verb Illustrate
• 2009 Q5
• (A) (i) Explain the term business alliance.
• (ii) Illustrate the advantages of an
  alliance as a form of business expansion.
  (20 marks)
• Marking Scheme
• (A) (I) Explain the term Business Alliance 5
  Marks (23)
• (ii) Advantages of an alliance as a form of
  business expansion
  3 _at_ 5 Marks (23)
• Illustration required.
• Notes
• Examples Oneworld Airlines Alliance, Postbank

23

• B. Outcome Verb Evaluate
• 2009 Q1
• (C) (ii) Evaluate the role of the Director of
  Equality Investigations in resolving complaints
  of discrimination in the workplace.
• Marking Scheme
• (C) (ii) Role of DEI 10Marks(2_at_5 Marks (23))
• Evaluation Required 5 Marks(23)
• Notes
• Decisions provide a strong foundation of case law
  to assist in the elimination of unlawful
  discrimination/ power to direct that practices
  shown to be discriminatory should cease.
  Decisions are made available to the widest
  possible audience to foster an awareness of what
  constitutes discrimination and to help prevent
  future discrimination.

24

• C. Changing Outcome Verb.
• 2009 Q2
• (A) Evaluate franchising as a form of business
  ownership for a new enterprise. (20 marks)
• (A) Illustrate franchising as a form of
  business ownership for a new enterprise. (20
  marks)
• (A) Explain franchising as a form of business
  ownership for a new enterprise. (20 marks)
• (A) Discuss franchising as a form of business
  ownership for a new enterprise and use an example
  to support your answer.(20 marks)

25

• 2.Students must always be conscious that the
  marking scheme will require a certain number of
  points. e.g. 30(5_at_6)
• The quantity of the answer required is indicated
  by the marks allocated to each section and the
  outcome verb used.
• The number of points required in an answer will
  be stated in some of the exam questions. It is
  essential to obey this instruction.
• However, where the number of points is not
  stated, to give some idea to the pupils, it may
  be useful to assume five marks are allocated for
  each point. For example, if a part is worth 30
  marks then give six points if possible.
• Teachers could encourage students to devise a
  marking scheme for an answer and use this to
  correct and grade their own or a colleagues
  work.
• Teachers can reinforce the numbers points
  required by showing the marks awarded in each
  part as a fraction of the total available e.g.
  22/30, 10/30.

26

• 3.Students must always be conscious that the
  marking scheme will expect an expansion of the
  points to be made at higher level.
• If there are 5 marks for a point it could be
  split into 2 plus 3.
• The Chief Examiner stated where they are asked
  to explain it is expected that relevant
  definitions will be given with a full and clear
  exposition of the points and issues raised.
• Teachers can emphasise this by clearly indicating
  to the pupil what part of their work is being
  rewarded. Underline the relevant work and record
  the mark awarded.

27

• 4.Students should be encouraged to present their
  answers in point form either by numbering them or
  the use of bullet points.
• This will greatly improve the layout.
• It will also ensure they are aware of the number
  of points in their answer.

28

• Marks can be recorded as follows on the test.
• The target market is young people. They do not
  have jobs. The manager has to take this into
  consideration when setting the price. The price
  cannot be too expensive as the target market will
  not purchase the product but it cannot be too
  cheap as the company wants to make profit.

2
3
29
Recording of marks on Tests 2009 Q7(C) Describe
the factors that the Marketing Manager of
Olympian Ltd should consider when deciding on the
selling price of their new range of Hoodie
Tracksuits. (20 marks)
2

• Price mark-up. The company will want to make a
  profit so they add on a certain percentage to
  original costs to make a profit.
• Premium pricing. Charging a high price for high
  quality products e.g. charging expensive prices
  for designer clothing.
• Costs of production. The firm has to make a
  profit off the product. They have to ensure
  income is greater than costs.

3
2
3
30
2

• The target market is young people. They do not
  have jobs. The manager has to take this into
  consideration when setting the price. The price
  cannot be too expensive as the target market will
  not purchase the product but it cannot be too
  cheap as the company wants to make profit.
• Price mark-up. The company will want to make a
  profit so they add on a certain percentage to
  original costs to make a profit.
• Premium pricing. Charging a high price for high
  quality products e.g. charging expensive prices
  for designer clothing.
• Costs of production. The firm has to make a
  profit off the product. They have to ensure
  income is greater than costs.

3
2
3
2
3
15/20
31
Summary

• Students must be conscious of the Outcome Verb
  used. It is very important to read the question
  carefully particularly looking for outcome verbs
  such as Illustrate and Evaluate.
• Students must always be conscious that the
  marking scheme will require a certain number of
  points. e.g. 30(5_at_6)
• Students must always be conscious that the
  marking scheme will expect an expansion of the
  points to be made at higher level.
• Students should be encouraged to present their
  answers in point form either by numbering them or
  the use of bullet points.