W1-2-60-1-6
JOMO KENYATTA UNIVERSITY
OF
AGRICULTURE AND TECHNOLOGY
University Examinations 2014/2015
FIRST YEAR FIRST SEMESTER EXAMINATION
FOR THE DEGREE OF BACHELOR OF COMMERCE
HBC 2102: INTRODUCTION TO BUSINESS
DATE: AUGUST 2014 TIME: 2 HOURS
INSTRUCTIONS: ANSWER QUESTION ONE (COMPULSORY) AND ANY OTHER TWO QUESTIONS
Question One (30 Marks)
Audiotech Electronics, founded in 1959 by a father and son, currently operates a 35,000 square – foot factory with 75 employees. The company produces control consoles for television and radio stations and recording studios. It is involved in every facet of production – designing the systems, installing the circuits in its computer boards and even manufacturing and painting the metal cases housing the consoles. The company’s products are used by all major broadcast and cable networks. The firms newest products allow television correspondents to simultaneously hear and communicate with their counterparts in different geographic locations. Audiotech has been very successful meeting its customers’ needs efficiently.
Audiotech sales have historically been strong in the United States, but recently growth is stagnating. Even though Audiotech is a small family-owned firm, it believes it should evaluate and consider global expansion.
Required:
a) What are the key issues that need to be considered in determining global expansion? (12 Marks)
b) What are some of the unique problems that a small business might face in global expansion that larger firms would not? (11 Marks)
c) What options are there for Audiotech in its desire to go global? (7 Marks)
Question Two (20 Marks)
a) Discuss what it means to practice good business ethics and highlight three factors that influence ethical behaviour. (16 Marks)
b) Analyze the kind of operations that are conducted in businesses that are classified according to their level of activity. (4 Marks)
Question Three (20 Marks)
a) You have received a bank loan you applied for 2 months ago. Your intention is to start a business. After evaluating all other options, you decide to be a sole proprietor. What advantages and disadvantages are you going to face in this kind of business? (10 Marks)
b) With the help of a diagram, illustrate how the forces of supply and demand operate to determine the price of commodities. (10 Marks)
Question Four (20 Marks)
a) Evaluate the social and legal concerns in e – commerce. (10 Marks)
b) Pricing decisions are very critical to any business. Critically analyze these decisions. (10 Marks)
Question Five (20 Marks)
a) Discuss the various types of distribution channels in business. (10 Marks)
b) As a marketing manager, what strategy would you apply in differentiating products of your company using the marketing mix? (10 Marks)
