1. TEST CODE OI24OO32
JANUARY 2O1OFORM TP 2010027
CARIBBEAN EXAMINATIONS C OUNCIL
SECONDARY EDUCATION CERTIFTCATE
EXAMINATION
PRINCIPLES OF BUSINESS
Paper 03/2 - General Proficiency
7 hour
Answer ALL the questions.
In addition to the t hour. candidates are allowed
15 rú"utes to read through this paper. Writing
MAY begin during this time.
DO NOT TURN THIS PAGE UNTIL YOU ARE TOLD TO DO SO.
Copyright @ 2009 Caribbean Examinations Council@.
All rights reserved.
OI24OO32IJANUARY/ F 20 10
2. This paper consists of a case study and a
case to complete the business plan.
.,
template for a business plan.
CASE STUDY
Use the information from the
CASE: 66Say
What You Want" Language School
Mr. Say conducted market research to determine whether there is a need for a foreign language school in his
country. From the research, Mr. Say realized that in order to provide foreign language services he would need
to identify a pool of teachers for the languages that will be offered. Additionally, students would require one-
on-one classes, group classes, and cultural activities.
Since students might have to travel long distances from their home to stay in the host town, and there would
also be the need for accommodation. While the school would not own the accommodations, it would need to
negotiate prices with families and the owners of the accommodations with whom the school would associate.
Mr. Say intends to affiliate his language school with an established educational institution in his country and
also apply for a license from the Ministry of Education. He would not need to provide the building and furnish
classrooms but would need to purchase a van, hire teachers, a marketing agent, an administrative asssistant and
a driver, as well as market the school. His first year of expenses has been forecasted at $399 000. Mr. Say has
$i50 000 of his own money to invest and has sourced two partners who will provide $75 000 each. In addition,
he has accessed an overdraft facility of $50 000 from a local bank for recurrent expenses.
Mr. Say will be the managing director of the language school. He will need to identify novel ways to market
the school locally and internationally.
The forecast for the year in numbers of students is 500 with some programmes having higher enrollments
than others. Mr. Say estimates that enrollment will grow by 100 students each year for the next 10 years. It
is estimated that each student on average will stay two weeks and will pay $500 per week. This will generate
an income of $500 000 for the first year for the school.
Mr. Say is concerned with getting students to attend the school given the global economic downturn, but he
is hopeful that the need will drive the demand for the language services that "Say What You'Want" Language
School will offer.
0r240032t TJANUARY tF 20 tO
GO ON TO THE NEXT PAGE
3. -f
-3-
ORGANIZATIONAL PRINCIPLES
BUSINESS PLAN
OPERATIONAL PLAN
Nature and Type of Business
( 2 marks)
Internal Structure or Oreanization
( 2 marks)
Management Functions
( 2 marks)
Ethical fssues
( 2 marks)
Executive Summarv
( 2 marks)
Total 10 marks
GO ON TO THE NEXT PAGE
O I24OO32I J ANUARY/ F 20 1 O
4. À
---
PRODUCTION AND MARKETING
MARKETING PLAN
Market Research
( 2 marks)
Industry Trend
( 3 marks)
Size of Market
( L mark)
Target Market
( 2 marks)
Pricing Strategies
( 4 marks)
or240032t I JANUARY/F 20 1 0
GO ON TO THE NEXT PAGE
5. -l
-5-
Promotional Strategies
( 4 marks)
Distribution Stratesies
( 2 marks)
Executive Summary
( 2 marks)
Total 20 marks
FINANCE AND INTRODUCTION TO ECONOMICS
FINANCIAL PLAN
Sources of Finance
( lmark)
Forecast of Expense and Income
( 2 marks)
GO ON TO THE NEXT PAGE
O T24OO32I J ANUARY/ F 20 1 O
6. -6-
Capital Instruments
( 1. mark )
Potential for Growth
( 2 marks)
Government Regulations
( Lmark)
Ethical Issues
( Lmark)
Executive Summary
( 2marks)
Total 10 marks
END OF TEST
OT24OO32I J ANUARY/ F 20 1 O
