ES1940
THE UNIVERSITY OF WARWICK
First Year Examinations: January 2018
INTRODUCTION TO ENGINEERING BUSINESS MANAGEMENT
Candidates should answer all FOUR compulsory questions.
Time Allowed: 2 hours.
Only calculators that conform to the list of models approved by the School of Engineering
may be used in this examination. Standard graph paper and the Examination Case Study will
be provided.
Read carefully the instructions on the answer book and make sure that the particulars required are
entered on each answer book.
, ES1940
_______________________________________________________________________________
In your answers assume that it is January 2018.
_______________________________________________________________________________
1. Michael Porter identified five competitive forces that shape business strategy. Consider the
Case Study company and conduct an analysis of its place and influence in the industry sector
in which it operates using Porter’s ‘5 Forces’ model. For each ‘force’, illustrate your findings
with information from the Case Study, state your conclusions and how the company’s strategy
could benefit from this analysis. Total 25 Marks
_______________________________________________________________________________
2. Considering the Case Study company’s product portfolio, use the ‘5Ps of the Marketing Mix’
model to analyse the relevant aspects of the marketing strategy. Clearly explain what each
component of the model refers to and how it applies to these products, suggesting
improvements or points for note as appropriate. Total 25 Marks
_______________________________________________________________________________
3. a) Briefly explain the reasoning behind the Break-Even equation as shown below; what
does it tell us and how does it achieve that (in other words, how is it derived)?:
=( (Equation Q3)
)
Your answer should clearly identify what is indicated by each variable and what the
term in the denominator is called. (5 marks)
b) Calculate the Break-Even points for bike models A, B and C. (10 marks)
c) If the forecast of annual sales quoted for each model prove to be accurate, will the target
profit specified by the Finance Director be achieved? (5 marks)
d) The company decides that to launch the new bike models they will invest in a £250,000
advertising campaign. Assuming this results in a proportional boost in sales for each
model A, B and C, how many more of each bike will need to be sold in order to still
achieve the Finance Director’s target profit but in addition, cover the cost of the
advertising campaign? (5 marks)
Total 25 Marks
_______________________________________________________________________________
CONTINUED
2
THE UNIVERSITY OF WARWICK
First Year Examinations: January 2018
INTRODUCTION TO ENGINEERING BUSINESS MANAGEMENT
Candidates should answer all FOUR compulsory questions.
Time Allowed: 2 hours.
Only calculators that conform to the list of models approved by the School of Engineering
may be used in this examination. Standard graph paper and the Examination Case Study will
be provided.
Read carefully the instructions on the answer book and make sure that the particulars required are
entered on each answer book.
, ES1940
_______________________________________________________________________________
In your answers assume that it is January 2018.
_______________________________________________________________________________
1. Michael Porter identified five competitive forces that shape business strategy. Consider the
Case Study company and conduct an analysis of its place and influence in the industry sector
in which it operates using Porter’s ‘5 Forces’ model. For each ‘force’, illustrate your findings
with information from the Case Study, state your conclusions and how the company’s strategy
could benefit from this analysis. Total 25 Marks
_______________________________________________________________________________
2. Considering the Case Study company’s product portfolio, use the ‘5Ps of the Marketing Mix’
model to analyse the relevant aspects of the marketing strategy. Clearly explain what each
component of the model refers to and how it applies to these products, suggesting
improvements or points for note as appropriate. Total 25 Marks
_______________________________________________________________________________
3. a) Briefly explain the reasoning behind the Break-Even equation as shown below; what
does it tell us and how does it achieve that (in other words, how is it derived)?:
=( (Equation Q3)
)
Your answer should clearly identify what is indicated by each variable and what the
term in the denominator is called. (5 marks)
b) Calculate the Break-Even points for bike models A, B and C. (10 marks)
c) If the forecast of annual sales quoted for each model prove to be accurate, will the target
profit specified by the Finance Director be achieved? (5 marks)
d) The company decides that to launch the new bike models they will invest in a £250,000
advertising campaign. Assuming this results in a proportional boost in sales for each
model A, B and C, how many more of each bike will need to be sold in order to still
achieve the Finance Director’s target profit but in addition, cover the cost of the
advertising campaign? (5 marks)
Total 25 Marks
_______________________________________________________________________________
CONTINUED
2
