Business exam questions

To what extent is an increase in market share the main motive of a takeover or merger? Use examples from your research to support your answer. 40 marks. 

Despite many businesses struggling to integrate successfully following a takeover or merger, many CEO's still aim to expand the businesss via external rather organic growth. With reference to your research discuss the issues that a business may face when integrating with antoerh binsess and whether these can always be overcome to ensure that the corporate aim is achieved. 40 marks. 

To what extend is the success of a takeover or merger reliant on how well the culutres of the two businesses are integrated. 40 marks. 

The happiness of stakeholders is key to sucess during and following a takeover or merger. With reference to your research discuss whether you agree with this view. 40 marks.

To what extent is an increase in market share the main motive for takeovers and mergers? Use examples from your research to support your answer. 40 marks. 

With reference to organisations or industries that you know, to what extent do you think that recent changes in the UK economy will have inevitably damaged the long-term profits of businesses that operate in this country? 40 marks. 

Whereas Business Secretary, Vince Cable, says that the state-owned Royal Mail will become privatly owned by 2012, he also favours interventionist measures such as forced separatation of retail from investment banking operations. Does government intervention create opportunities or threats for UK-based businesses? Use contemporary business examples to support and justify your arguments. 40 marks 

WIth reference to business that you know of, to what extent should businesses take responsibility for the welfare of thier customers? 40 marks. 

Bp is a multiinational energy business that has 92,000 employees and operates in 100 countries. When a new chief executive was recruited interally at BP, he promised to improve the company's dissapointing performance by quickly changing its culture to become more innovative and more responsive to its customers. How easiy do you think it is for a new chief executive to change the culture of an organisation quickly? Justify your answe with reference to BP and other businesses that you know. 40 marks.

Many large businesses have made bad decisiosn at some point. Fro example Microsoft was slow to realise the opportunities created by the internet whilst M+S had to close many of the stores it had opened abroad. What do you think are the main reasons for big businesses sometimes making bad decisions? 40 Marks.

The UK bottled water market has been dominated by firms such as Nestle and Danone for many years. Coca-Cola, the soft drinks producer, recently entered the bottled water market in a number of countries, including the UK, with brans such as Malvern and Glaceau. What do you think is the best strategy for existing businesses to adpot in response to the entry of a new large competitor? 40 marks. 

Future demographic change in the UK will include growth of overall population and a further increase in the proportion of the population aged over 55. To what extent does demographic change in the UK represent more of an opportunity than a threat to UK businesses? 40 marks. 

The Intel Corporation produces microprocessors that are used in computers. It has a market share of over 75% and has been praised for its highly innovative culture. Do you think that an innovative culture can be relied on to guarantee the future success of a business. 40 marks. 

Explain how a change in interest rates might affect KFC or Subway and their ability to meet their expansion aims in the next 3-5 years. Refer to other businesses. 40 marks. 

Using your own examples, to what extent can companies such as Nissan that manufacture cars in the UK benefit from government intervention. 40 marks. 

To what extend did Kraft's decision to buy Cadbury benefit Cadbury's key stakeholders? 40 marks.

Do you agree that the most important factor that determines the success of a takeover or merger is whether the cultures of the two businesses are compatible? 40 marks. 

Do you agree that a takeover will inevitably fail if the acquirer pays a significant premium for the target business? 40 marks. 

What extend does a recession present a growth opportunity for retailers who are prepared to invest in new products and locations? 40 marks. 

To what extent do you agree that it is essential for firms operating in slow-growth economies and markets to take the risk of expanding into emerging markets? 40 marks.

To what extent do you agree that a firm whose culture does not embrace technological change will inevitably find that its competitive position is damaged in the long term. 40 marks.

Do you agree that, in a period of rapid technological change, it is essential that a business should aim for fast-decision making in order to remain competitive? 40 marks. 

To what extent does technological change pose more of a threat than an opportunity for a multinational business like Sony?

To what extent do you agree that culture is the most important factor in a firm's success? 40 marks. 

Do you agree that successful strategic change can only be achieved if the leadership of a business gains the support of key stakeholders? 40 marks. 

According to KPMG, the primary motive behind takeovers and mergers is increasing market share. To what extent do you agree with this? 40 marks. 

When a firm makes a takeover bid, management often justified the price being paid by pointing to potential 'synergies'. To what extent is this true? 40 marks. 

To what extent do you agree that a takeover is unlikely to succeed if it takes place during an economic downturn. 40 marks.

To what extent do you agree that a cross-border takeover is likely to fail unless the culture of the acquiring firm is imposed on the target? 40 marks. 

To what extent does a recession present a growth opportunity for retailers who are prepared to invest in new products and locations? 40 marks.

Do you agree that successful strategic change can only be achieved if the leadership of a business gained the support of key stakeholders? 40 marks.

To what extent do you agree that a takeover of, or merger with a close competitor is the most successful way to grow market share?

Do you agree that a takeovers and mergers are more likely to succeed as part of a strategy or horizontal integration than vertical integration?

To what extent do you agree that the rewards from cross-border takeovers and mergers rarely outweigh the risks involved?

To what extent is it inevitable that a government will intervene if a takeover or merger is expected to significantly reduced competition in an industry?

To what extent do you agree that takeovers or mergers designed to increase a firm's capabilities are the most likely to succeed?

Takeovers by private equity investors are more likely to succeed than those by corporates because they focus on improving financial performance. Do you agree?

To what extent is the use of takeovers and mergers an essential part of the growth strategy of any business that wished to become a market leader? 

Do you think that a firm that wants to diversify will inevitably use takeovers and mergers rather than reply on organic growth.

To what extent do you agree that most takeovers and mergers are motivated by the personal objectives of senior management rather than strategic motives? 

To what extent do you agree that businesses with strong track records of organic growth do not need to engage in takeovers and mergers?

Do you agree that takeovers and mergers are the most effective way for a business to respond to the impact of rapid technological change in its market?

Do you agree that it is in the best interests of shareholders to accept the takeover bid if their business is not delivering acceptable returns? 

Do you agree that takeovers and mergers are the best option for businesses that seem to have run out of organic growth opportunities? 

To what extent are takeovers and mergers best suited for firms that want to expand internationally rather than in domestic markets? 

To what extent do you agree that the best way to create competitive advantages through economies of scale is to take over or merge with competitors?

To what extent do you agree that the main lesson a business should learn from the history of takeovers and mergers is simply - "don't do them"?

Do you agree that a takeover is the best way for a business to gain a significant share of a new market?

Do you agree that the most important factor that determines the success of a takeover or merger is the speed which the acquiring company integrates the acquisition into its own business?

Hostile takeovers are rarely successful because of the resentment they cause among management and employees of the acquired business. Do you agree?

To what extent do you agree that the success of a takeover or merger is mainly determined by the price that is paid for the target business?

To what extent do you agree that a takeover or merger involving firms with different corporate cultures will inevitably result in failure?

The less a firm knows about a takeover target, the less likely that the takeover will be successful. Do you agree?

To what extent do you agree that the most important factor determining the success of a takeover or merger is the leadership provided by the acquiring firm?

A successful takeover or merger requires a clear focus on hard issues such as cost reductions and systems integration rather than soft issues such as communication and cultural compatibility. Do you agree?

To what extent do you agree that the success of a takeover or merger is mainly determined by what happens before the deal rather than what happens after?

To what extent do you agree that the view that the first 100 days after a takeover or merger determine the success of a transaction?

To what extent do you believe that corporate culture is the most important factor in determining the eventual success  or failure of a takeover of merger?

To what extent do you agree that the easiest part of takeovers and mergers is doing the deal, whereas the hardest part is making the deal work?

Do you agree that a takeover or merger between two close competitors will inevitably damage the interest of customers and employees?

To what extent do you agree that, in order for a takeover or merger to succeed, it must have the support of employees and customers?

Do you agree that a takeover or merger can only be successful if it results in significant cost savings?

To what extent do you agree that a takeover or merger is least likely to succeed if it takes place during an economic downturn?

Do you agree that the best way to make a takeover or merger a success is to focus on cost synergies rather than revenue synergies?

Do you agree that employees of an acquired business inevitably lose as a result of a takeover or merger?

Governments should intervene to block the takeover of businesses which are of strategic importance to a country regardless of the benefits to shareholders. Do you agree?

Do you agree that it is the sole responsibility of a company's shareholders to decide whether to approve a takeover or merger, and not that of other stakeholders?

Do you agree that it should be up to the free market to decide whether a takeover or merger should proceed? 

With reference to the item above and your own research, to what extent do you think that cutting costs is the best strategy for businesses to adopt in a recession? 

 With reference to the item above and your own research, to what extent do you think that the UK motor industry deserves government financial support more than other industries?

With reference to the item on Sony and your own research, to what extent do you think that a business strategy of targeting emerging markets is a good one?

With reference to the item on Sony and your own research, to what extent do you think that low levels of income per person are likely to be the main barrier to businesses achieving their objectives in emerging markets?

With reference to organisations or industries that you know, to what extent do you think that recent changes in the UK economy will have inevitably damaged the long-term profits of businesses that operate in this country?

Steve Jobs, the founder of Apple, was asked to come back as Chief Executive in 1997 when the business was making a loss.  Jobs was appointed to provide a clearer vision for the business and to improve its profitability.  How easy is it for a Chief Executive to change a struggling business into a more successful one?  Justify your answer with reference to Apple and/or other organisations you know.

With reference to your own research and the item above, do you think that the ability of a business to act successfully in a socially responsible manner is mainly determined by the products it produces?

The business world is becoming increasingly global.  As a result of this, many companies, such as Costa Coffee and Dyson, have changed their strategies in relation to the markets they target or where they produce.  Does the increasingly global nature of business mean that all organisations need to change their strategies significantly to achieve higher profits?  Justify your answer with reference to Costa Coffee, Dyson and/or other organisations that you know. 

Some analysts claim that the achievements of chief executives, such as Terry Leahy  at Tesco and Philip Green at Arcadia, show the difference a leader can make to the  performance of a business.  To what extent do you think that a leader can make a  significant difference to the long-term success of an organisation?  Justify your answer with reference to Tesco, Arcadia and/or other businesses or leaders that you know.

 The Chief Executive of Samsung Electronics recently told its employees that, “We must begin anew.  Most of Samsung’s flagship businesses and products will become obsolete within ten years.”  This corporate strategy of reinvention would inevitably involve significant change for employees.  Do you think that resistance from employees is likely to be the biggest problem for a business that wants to reinvent itself?  Justify your answer with reference to Samsung Electronics.

With reference to your own research and the item above, to what extent do you think that  social reporting is now essential for businesses? 

With reference to the item above and your own research, to what extent do you think that the amount of profits earned by a business in a recession depends entirely on the industry in which it operates? 

 With reference to the item above and your own research, to what extent can a recession improve relations between a business and its stakeholders?

Greater access to the internet has enabled buyers to search more easily for information about potential suppliers of goods and services.  This has significantly affected many industries, such as insurance, banking, retailing and travel.  To what extent do you think that increased internet usage inevitably reduces producers’ profits?  Justify your answer with reference to organisations and/or industries that you know.

Richard Branson set up the first Virgin music store in 1971 and is well known for his entrepreneurial approach.  The Virgin group now includes many different organisations, such as an airline, a train company and a mobile phone business.  To what extent will the performance of a business such as Virgin inevitably decline after the retirement of its founder?  Justify your answer with reference to Virgin and/or other organisations that you know.