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NIO/3/BUSMT/SP1 88105013 BUSINESS AND MANAGEMENT STANDARD LEVEL PAPER 1 Thursday 18 November 2010 (afternoon) 1 hour 15 minutes INSTRUCTIONS to candidates 0 not open this examination paper until instructed to do so. Do Read the case study carefully. Section A: answer two questions. Section B: answer the compulsory question. 8810-5013 3 pages International Baccalaureate Organization 2010 -2- SECTION A Answer two questions from this section.

N-Pharma is now a successful business, but it initially struggled: “poor cash flow eant that the early years were financially challenging” (lines 6-7). Outline two problems that Yukio Nakamura’s business start-up may have faced. [4 marks] (b) Construct a fully labelled Ansoff matrix to show N-Pharma’s possible growth strategies. 14 marks] Analyse the value of “social and environmental audits” (line 107) to N-Pharma. [7 marks] 2. Define the following terms: span of control (line 60) [2 marks] (it) empowerment (line 64). b) Comment on the effectiveness of Susan James’ leadership style in the Canadian subsidiary of N-Pharma. Analyse the appropriateness of a cost-based pricing strategy (line 29) for N-Pharma’s drugs. / marks] 3. Tadashi Agi has been appointed to the new post of “director of corporate social responsibility’ (line 101). Outline two methods of recruitment that could have been used in this appointment. (b) Explain how Tadashi Agi could use new technologies within N-Pharma to communicate his ethical vision effectively with stakeholders (lines 105-106).

Tadashi Agi is now writing a “Charter of Ethics”, setting ethical objectives for N- Pharma (lines 102-103). Examine the reasons why organizations consider setting ethical objectives. SECTION B Answer the compulsory question from this section. 4. Outline two alternative strategies that could have been used to deal with the liquidity problem at the USA subsidiary of N-Pharma (line 1 11). (b) Explain the importance of quality assurance and quality control (lines 26-27) for N-Pharma. N-Pharma already sells some of its drugs in China, especially through business-to- usiness (82B) operations with private clinics” (lines 137-138). Explain the benefits for N-Pharma of using 82B operations compared to business-to-customers (B2C). (d) N-Pharma subsidiaries have a double role: they “are responsible for both production and distribution of N-Pharma drugs in their national markets” (lines 18- 19). Discuss the advantages and disadvantages of such a double role. [8 marks] Additional information There is no additional information in this paper for Sections A and B.

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