ES1940
THE UNIVERSITY OF WARWICK
First Year Examinations: January 2019
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 2019.
_______________________________________________________________________________
1. In March 2019 the United Kingdom (UK) is scheduled to leave the European Union (EU) – so-
called ‘Brexit’. This event is likely to have significant implications for many companies such
as the one identified in the Case Study, trading in the UK and EU.
a) Conduct a short PEST (Political, Economic, Social and Technical) analysis for the Case
Study company. You should identify and briefly discuss three external opportunities or
threats faced by the company in each of the four PEST categories. (12 marks)
b) Conduct a short SWOT (Strengths, Weaknesses, Opportunities and Threats) analysis of
the Case Study company. Identify one point under each category and briefly explain why
it classifies as either a Strength, Weakness, Opportunity or Threat. Note that you may
appropriately use some of the points raised in the PEST analysis conducted in Q1 part (a)
in this analysis as well. (8marks)
c) As a result of the analyses conducted in Q1 parts (a) and (b), provide a recommendation
(with suitable explanation) for the Case Study company’s strategy for the next 12 months.
(5 marks)
Total 25 Marks
_______________________________________________________________________________
CONTINUED
2
,ES1940
_______________________________________________________________________________
2. With regard to the Case Study company:
a) i) Identify three stakeholders in the company and briefly identify what their key
measures of success might be. (6 marks)
ii) Which of the stakeholders identified in Q2 part (a)(i) would, in your opinion, have
the greatest influence on the company’s strategy and why? (2 marks)
b) Discuss, making use of appropriate diagrams, the following models:
i) The Boston Consulting Group (BCG) Matrix (4 marks)
ii) The Product Life Cycle (4 marks)
iii) Select two of the company’s products presented in the Case Study and identify
where they would be placed on each of the two models mentioned above, briefly
explaining your decision in each case. (4 marks)
c) The Case Study company identifies itself as a market leader. Should the company adopt
a strategy to be a market pioneer or a market follower? Explain your recommendation
with reference to the models discussed in part (b), above. (5 marks)
Total 25 Marks
_______________________________________________________________________________
CONTINUED
3
, ES1940
_______________________________________________________________________________
3. Consider the two products identified in the Case Study as ‘Product A’ and ‘Product B’:
a) Review the market for each of the two products. In each case, do you think the market
structure is closest to perfect competition, monopolistic competition, oligopoly
competition or a monopoly? Remember to justify your answers by describing the
characteristics of each product and the competition faced. (10 marks)
b) For each product (A and B) discuss whether their demand should be considered to be
price elastic or price inelastic. In each case, recommend how the total revenue may be
maximised by showing on a diagram relating price to demand how the total revenue may
be manipulated. (12 marks)
c) As a result of the discussions in Q3 parts a) and b) above, what would you suggest the
Case Study company’s strategy should be with regard to the production and pricing of
products A and B? (3 marks)
Total 25 Marks
_______________________________________________________________________________
CONTINUED
4
THE UNIVERSITY OF WARWICK
First Year Examinations: January 2019
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 2019.
_______________________________________________________________________________
1. In March 2019 the United Kingdom (UK) is scheduled to leave the European Union (EU) – so-
called ‘Brexit’. This event is likely to have significant implications for many companies such
as the one identified in the Case Study, trading in the UK and EU.
a) Conduct a short PEST (Political, Economic, Social and Technical) analysis for the Case
Study company. You should identify and briefly discuss three external opportunities or
threats faced by the company in each of the four PEST categories. (12 marks)
b) Conduct a short SWOT (Strengths, Weaknesses, Opportunities and Threats) analysis of
the Case Study company. Identify one point under each category and briefly explain why
it classifies as either a Strength, Weakness, Opportunity or Threat. Note that you may
appropriately use some of the points raised in the PEST analysis conducted in Q1 part (a)
in this analysis as well. (8marks)
c) As a result of the analyses conducted in Q1 parts (a) and (b), provide a recommendation
(with suitable explanation) for the Case Study company’s strategy for the next 12 months.
(5 marks)
Total 25 Marks
_______________________________________________________________________________
CONTINUED
2
,ES1940
_______________________________________________________________________________
2. With regard to the Case Study company:
a) i) Identify three stakeholders in the company and briefly identify what their key
measures of success might be. (6 marks)
ii) Which of the stakeholders identified in Q2 part (a)(i) would, in your opinion, have
the greatest influence on the company’s strategy and why? (2 marks)
b) Discuss, making use of appropriate diagrams, the following models:
i) The Boston Consulting Group (BCG) Matrix (4 marks)
ii) The Product Life Cycle (4 marks)
iii) Select two of the company’s products presented in the Case Study and identify
where they would be placed on each of the two models mentioned above, briefly
explaining your decision in each case. (4 marks)
c) The Case Study company identifies itself as a market leader. Should the company adopt
a strategy to be a market pioneer or a market follower? Explain your recommendation
with reference to the models discussed in part (b), above. (5 marks)
Total 25 Marks
_______________________________________________________________________________
CONTINUED
3
, ES1940
_______________________________________________________________________________
3. Consider the two products identified in the Case Study as ‘Product A’ and ‘Product B’:
a) Review the market for each of the two products. In each case, do you think the market
structure is closest to perfect competition, monopolistic competition, oligopoly
competition or a monopoly? Remember to justify your answers by describing the
characteristics of each product and the competition faced. (10 marks)
b) For each product (A and B) discuss whether their demand should be considered to be
price elastic or price inelastic. In each case, recommend how the total revenue may be
maximised by showing on a diagram relating price to demand how the total revenue may
be manipulated. (12 marks)
c) As a result of the discussions in Q3 parts a) and b) above, what would you suggest the
Case Study company’s strategy should be with regard to the production and pricing of
products A and B? (3 marks)
Total 25 Marks
_______________________________________________________________________________
CONTINUED
4
