Y12 Models 3/4

Question 1

What is the Boston Matrix, and the 4 sections?

Answer 1

The Boston Matrix, analyses products according to relative market share and relative market growth rate

Star - high growth, high share
Dog - low growth, low share
Cash Cow - low growth, high share
Question mark (problem child) - high growth, low share

Question 2

What are the characteristics of the 4 sections of the Boston Matrix

Answer 2

Star - Hold, Prioritise and Expand
Dog - Divest, Kill
Cash Cow - Cash generating, harvest/milk
Question Mark - Cash absorbing, build, invest or divest

Question 3

Why Use Boston Matrix, and Evaluations

Answer 3

Process of analysing the product portfolio to inform decision making - for l/t success, large product portfolio w/ lots of cash-cows.

Good as:
+ Analyse investment opportunities
+ Plan for future
+ Inform product portfolio decisions

But, depends on…
- Only snapshot of current situation
- No environmental consideration
- Doesn’t show declining markets

Question 4

What is the equation for income-elasticity of demand?

Answer 4

%change in demand/%change in income

A number of 4 means that for every 1% change in income… demand (sales) changes 4 x as fast

Question 5

Differentiate between Normal and Inferior goods, according to income-elasticity

Answer 5

Normal goods = +ve relationship. Higher income = higher demand and sales volume, lower income = lower demand and sales volume

Inferior goods = -ve relationship. Higher income = less demand and sales volume. Lower income = high demand and sales volume

Question 6

According to income-elasticity, what are the 4 types of products/services, and what are their figures?

Answer 6

Luxury (normal elastic) - +1 to + infinity. Demand (sales) increase More than proportional to rise in income.

Normal (normal inelastic) - 0-+1. Demand (sales) increase less than proportionally to rise in income.

Inferior inelastic - 0 to -1. Demand (sales) decrease less than proportionally to rise in Income.

Inferior elastic - -1 to -infinity. Demand (sales) decrease more than proportionally to rise in income.

Question 7

What is the formula for Price-Elasticity of Demand?

Answer 7

%change in demand/%change in price

A number of -0.4 means that for every 1% change in price…demand (sales) changes 0.4 times as much

Question 8

What are the two figures for PED, and characteristics?

Answer 8

0 to -1 = Demand (sales) decrease/increase less than proportionally to a change in price, influencing revenue (inelastic)

-1 to -infinity = Demand (sales) increase more than proportionally to a change in price, influencing revenenue (elastic)

Question 9

What are the 5 elements of the promotional mix?

Answer 9

Sales promotion

Personal selling

Advertising

Public relations

Direct marketing

Question 10

What are key influences on the design of the promotion mix?

Answer 10

The type of promotion and Where its going, e.g., print, television.

Then…:

• Setting an appropriate budget
• Developing a profile of target audience

Question 11

What are the 5 forms of Digitial marketing

Answer 11

Viral Marketing (new to spec) - Uses existing social media networks to promote, consumers spread info with others.

Influencer Marketing - Impact depends on how many ‘followers’.

Search Engine Optimisation - Vital for business to be found by potential customers

Online advertising - Dominated by social media networks and large search engines

Email marketing - most widely used, broadcasting of emails

Question 12

What does the impact of Viral marketing depend on?

Answer 12

Visual Appeal

Emotional Appeal

Novelty and creativity

Question 13

What is primary research and why is it used in business?

Answer 13

Primary research involves collecting new, first-hand data (e.g. surveys, focus groups, interviews). It is tailored to the business’s exact needs, current, and ideal for new product launches or exploring customer motivations.

Question 14

What is secondary research and why is it used in business?

Answer 14

Secondary research uses existing data (e.g. ONS, industry reports, competitor websites). It is fast and low-cost, useful for market overviews, benchmarking, and supporting strategic planning.

Question 15

Evaluate the advantages and disadvantages of primary research.

Answer 15

✅ Specific, current, and insightful for decision-making
❌ Expensive, time-consuming, and risks small/unreliable samples if poorly executed

Question 16

Q: Evaluate the pros and cons of secondary research.

Answer 16

✅ Quick and cost-effective for understanding trends
❌ May be outdated, not tailored to the business, or collected for different objectives

Question 17

Why is sampling used in market research?

Answer 17

Sampling reduces time and cost by collecting data from a smaller group that reflects the wider population. It makes research more practical and manageable while still offering insights for decision-making.

Question 18

What is random sampling and why is it used?

Answer 18

Random sampling gives every member of the population an equal chance of selection. It minimises selection bias, useful in general markets, but may be unrepresentative unless the sample is large and diverse.

Question 19

What is quota sampling and why is it used in research?

Answer 19

Quota sampling segments the population (e.g. age/gender) and selects participants to meet quotas. It’s quick and cost-effective but prone to selection bias if the recruiter chooses respondents non-randomly.

Question 20

What is stratified sampling and why is it considered more accurate?

Answer 20

A: Stratified sampling divides the population into relevant strata (e.g. age groups) and randomly selects a proportionate number from each. It increases representativeness but is time-consuming and expensive to design.

Question 21

Q: How can sampling errors affect the reliability of research?

Answer 21

Poorly chosen samples (e.g. too small or not representative) distort findings. This can lead to flawed strategies, incorrect targeting, or missed demand — increasing business risk.

Question 22

Evaluate the effectiveness of sampling in research.

Answer 22

A: Sampling reduces research costs and time while giving useful insights. But biased methods can mislead strategy. Combining with qualitative data or triangulating with secondary sources improves accuracy.

Question 23

What are the key principles of Taylor’s Scientific Management?

Answer 23

Taylor argued that workers are motivated by money. He promoted specialisation, time–motion studies, close supervision, and piece-rate pay to improve productivity and reduce inefficiency.

Question 24

How is Taylor’s theory applied today?

Answer 24

Used in output-focused roles (e.g. warehouses, call centres), where measurable performance and tight control are valued. Works best in structured environments with routine tasks.

Question 25

Evaluate Taylor’s theory in modern business contexts.

Answer 25

✅ Boosts efficiency in repetitive roles ❌ Ignores social/psychological needs; unsuitable for creative or knowledge-based jobs

Question 26

What are Maslow’s five levels of needs and their workplace links?

Answer 26

Physiological – Wages, breaks Safety – Contracts, H&S policies Social – Teamwork, positive culture Esteem – Recognition, promotions Self-actualisation – Autonomy, training, meaningful work

Question 27

How can a firm use Maslow to motivate employees?

Answer 27

By offering fair pay, job security, collaboration, development opportunities, and recognition. Meeting each level supports stronger engagement.

Question 28

Evaluate Maslow’s hierarchy in real business use.

Answer 28

✅ Holistic view of employee needs ❌ Not all employees value the same things, and the hierarchy may not be linear or universal

Question 29

What are Herzberg’s two types of factors?

Answer 29

Hygiene factors: Pay, job security, working conditions — prevent dissatisfaction Motivators: Achievement, recognition, responsibility — create satisfaction and drive performance

Question 30

How should firms apply Herzberg’s theory?

Answer 30

Address hygiene first (fair wages, safe conditions), then focus on motivators (job enrichment, praise, autonomy) to engage staff long term.

Question 31

Evaluate Herzberg’s theory.

Answer 31

✅ Encourages meaningful motivation, useful in skilled roles ❌ May not apply in repetitive or low-skill jobs where motivators are limited

Question 32

There are non-financial motivators. What is job rotation and how does it motivate?

Answer 32

Job rotation involves regularly changing tasks to reduce monotony and improve flexibility. Useful in operational or production environments.

Question 33

Compare job enlargement and enrichment as non-financial motivators.

Answer 33

Enlargement: Adds variety at the same level — combats boredom Enrichment: Adds responsibility/challenge — promotes engagement and personal growth

Question 34

What is empowerment and how does it affect motivation?

Answer 34

Empowerment gives employees decision-making power. It improves trust, responsibility, and satisfaction — especially in knowledge or creative roles.

Question 35

How does team working improve employee motivation?

Answer 35

Promotes belonging, collaboration, and shared goals — meets social needs (Maslow) and improves morale, communication, and innovation.

Question 36

Evaluate non-financial motivation strategies.

Answer 36

✅ Reduce reliance on bonuses, boost engagement ❌ Not all employees want responsibility; overuse can increase pressure

Question 37

What is the Tannenbaum and Schmidt continuum of leadership?

Answer 37

A model showing leadership styles from leader-centred (autocratic) to subordinate-centred (democratic), based on how much authority is retained or delegated.

Question 38

What are the stages in the continuum?

Answer 38

Tells – Leader decides Sells – Leader persuades Consults – Seeks views, retains decision Joins – Shares decision-making Delegates – Gives full responsibility Abdicates – Minimal involvement (laissez-faire)

Question 39

How do leadership styles map onto the continuum?

Answer 39

Autocratic = Tells Paternalistic = Sells (makes decisions in employee interest) Democratic = Consults/Joins Laissez-faire = Abdicates

Question 40

What are pros and cons of autocratic and paternalistic leadership?

Answer 40

✅ Quick decisions, clear structure ❌ Demotivates skilled staff, limits creativity Useful in crisis or with inexperienced teams.

Question 41

What are pros and cons of democratic and laissez-faire leadership?

Answer 41

✅ Encourages innovation, engagement ❌ Slower decisions, unclear direction Best for experienced, motivated teams in dynamic sectors.

Question 42

Evaluate the usefulness of the Tannenbaum and Schmidt model.

Answer 42

✅ Encourages flexible leadership ❌ Doesn’t account for culture, personality, or urgency Most useful when combined with context-based models like Blake Mouton.

Question 43

What is the Blake Mouton Managerial Grid and what are its two axes?

Answer 43

The Blake Mouton Grid is a model that identifies leadership styles based on a manager’s concern for people and production. It helps assess how leadership approach impacts motivation and output. The grid uses two axes: Horizontal: Concern for production (task focus) Vertical: Concern for people (employee welfare)

Question 44

What are the five leadership styles in the Blake Mouton Grid?

Answer 44

Impoverished (1,1) – Low concern for people and production: ineffective leadership. Country Club (1,9) – High people, low production: friendly but unproductive. Task Management (9,1) – High production, low people: efficient but demotivating. Middle-of-the-Road (5,5) – Moderate concern for both: compromises effectiveness. Team Management (9,9) – High concern for both: ideal leadership, motivates and delivers.

Question 45

How can the Blake Mouton Grid be applied and what are its strengths/limitations?

Answer 45

Application: Helps managers reflect on their leadership style and adjust to improve team performance. Strengths: Simple visual tool; promotes balanced leadership; highlights importance of both task and people. Limitations: Overly simplistic; doesn’t consider external factors like industry context or team competence.