Examiners’ commentaries 2017

Examiners’ commentaries 2017

MN2177 Core management concepts

Important note

This commentary reflects the examination and assessment arrangements

for this course in the academic year 2016–17. The format and structure
of the examination may change in future years, and any such changes
will be publicised on the virtual learning environment (VLE).

Information about the subject guide and the Essential reading

references
Unless otherwise stated, all cross-references will be to the latest version
of the subject guide (2016). You should always attempt to use the most
recent edition of any Essential reading textbook, even if the commentary
and/or online reading list and/or subject guide refer to an earlier
edition. If different editions of Essential reading are listed, please check
the VLE for reading supplements – if none are available, please use the
contents list and index of the new edition to find the relevant section.

General remarks
Learning outcomes
At the end of the course, and having completed the Essential reading and
activities, you should be able to:
• demonstrate understanding of core management concepts
• apply these concepts to specific business situations
• analyse and evaluate managerial tools such as balance sheets and
marketing plans
• explain the relevance of social science to business practice.

Examination advice
The examination will be a three-hour unseen written examination covering
all aspects of the syllabus. In the examination you will be asked to:
• reproduce some knowledge. This will get you close to a pass, but you
will also need to be able to apply this knowledge to the question
• apply knowledge to new situations. This will lift you to high lower-
second or low upper-second marks, provided you get the answers right
• make new connections between topics and concepts. This will enable
you to gain a first-class mark.
In the examination you must read the questions carefully to make sure you
have understood them, choose the questions you wish to answer from the
list available and manage your time carefully. You should always check the
instructions on the examination paper before you begin and follow them
carefully.

1
MN2177 Core management concepts

General comments
Candidates who do well in this examination show an ability in five areas:
1. Identifying and making use of the correct content in the subject guide
Your capacity to draw on relevant material in the subject guide is central
to being able to construct an answer worthy of a good mark. Here you
need to do two key activities. First, make use of the essential material in
the subject guide that could illuminate the question. For example, if you
are asked a question about Mintzberg’s structure in fives, then this is the
material to focus on. Second, make sure that you discuss only the issues
that are relevant to the question at hand. For example, if you are asked
to talk about why employers agree to negotiate with unions, a detailed
account of the history of unions is surplus to requirement. You will not
get a good mark if you simply repeat the material from the subject guide.
You must understand it and put it in the correct order and format for the
question.
2. Clearly and fully answering the question that is being asked
This is an issue not only of identifying the correct content, as above, but
also being clear on how the question is asking you to use it. For example,
if you are asked to ‘compare and contrast the Hawthorne Studies with
Scientific Management’, we would be looking for an answer that spends
roughly half its time on each of the theories, looking for similarities
and differences. If you were asked to ‘Critically evaluate the Hawthorne
Studies in terms of their relevance for today’s workplace’, you would
be spending at least 75 per cent of your answer looking at these studies
before perhaps bringing in Taylor, and/or another approach to workplace
management, to explore other ways of operating.
Another key area in which you can gain marks is by responding fully to
the question. For example, if it specifically says you need to use examples
and/or theories to justify your answer, then you should do so.
Note that none of the questions ask you to perform calculations, or specify
that you need to draw diagrams, or write out balance sheets or income
statements. Therefore you should bear in mind that there are likely to be
few marks available for doing so before you spend your time on this.
3. Drawing on a range of sources to support your answer and demonstrate your
knowledge
This is a wide ranging module, and as such we are not expecting you
to spend your revision time memorising long lists of theorists. You have
enough to do in remembering the 15 or so key ones (for example, Porter,
Mintzberg, Barney, Kahneman) alongside the large syllabus. What we
do want to see is that you have engaged with the detail of the subject
guide and the key readings, and as such have specific, useful evidence
and information with which to support your answer. We know that
lecturers always say it, but it can be very useful indeed to try to gather a
range of relevant examples from news websites over the course of your
studies and jot them down in your notes. If you are unsure as to whether
something works as an example, why not post it on one of the module
discussion boards or ask another student who is studying this subject or a
similar one?
The key resources that you will want to draw on when looking for ways to
support your answer are:
a. The subject guide
You will find a vast array of theories, evidence and sources with which to

2
 Examiners’ commentaries 2017

support your answer in the subject guide. Draw on these heavily. This is
probably where around 80 per cent of evidence to support your answer
will come from.
b. The key readings
In many cases, particularly where the key reading is Willman, there will
be heavy overlap between the subject guide and the reading. However,
there are still plenty of additional examples, ideas and theories in the key
readings that you can make use of.
c. Further readings
We are not suggesting that you all have the time to find and complete
all the further readings. But even if you only make use of three or four
over the course of the module, if you are careful which you choose (for
example, perhaps choosing some that are focused on principal-agent
theory, or Scientific Management, or rationality, or another topic that
is examined under more than one heading), you will be able to make
judicious use of these in your answers. Used well, these will show us
that you have really made an effort to understand and engage with the
materials.
d. Examples
As you can tell from the question wordings, we are big fans of examples.
We think that using them to support your answer really shows that you
are able to see how these theories apply to the real world. Sometimes
the example will not quite fit and it is fine to say that. Other times, you
might decide to use an example that disproves a theory. For example, in
the Principal-Agent question this year, some of the really good answers
used examples in line with the Human Relations approach and/or the
Hawthorne Studies to show how it is too narrow to assume that managers
will always act in their own best interests and are motivated solely by
money. Such candidates pointed out how, in a company they worked in,
managers worked hard for low pay because they believed in what they
were doing. What a great way of showing us that they understood the
limitations of Principal-Agent Theory.
4. Spending an equal amount of time on all four questions
This is another recommendation that even the ageing examiners
remember being offered up time and again when we were taking exams:
divide your time evenly across the marks. In this exam, that is nice and
easy to do: answer four questions, taking 45 minutes to do each. While
it is possible to get a borderline pass on this subject by doing well on
three questions, most candidates find it exceptionally difficult to get
anything above the high 40s. And, if you can answer three questions to
that standard, then if you were to do a little less on each of those three
questions and spend a quarter of your time on a fourth question, you
are likely to get a higher grade. It often takes a student a lot of extra
writing to get from 15 out of 25 to 17 out of 25, and even more to get to
18 or 19 out of 25. However, if you get 15 out of 25 on four questions,
you are then getting 60 per cent overall. This is definitely a more sensible
exam strategy. Trust us. We mark papers which adopt a range of different
timekeeping approaches: where students have clearly split their time over
the four questions, they almost always come away with a higher grade.
5. Giving your answer an effective structure
There are a range of actions you should take to organise your answers that
will help the examiners to see what you are trying to do and award you
marks accordingly.
3
MN2177 Core management concepts

a. Write an introduction
Introductions are most effective when they demonstrate how you intend to
answer the question. The examiner instantly knows what you are planning
to do and can then read your answer looking for this clear, logical
structure.
b. Break your answer into paragraphs (and sections)
Breaking your text up into paragraphs makes it much easier to read. The
points you are trying to make are illuminated more clearly in your answer.
This works even better if you can try to use the first sentence of your
paragraph to signpost what this paragraph is going to do. For example,
if you are writing an essay talking about why employers negotiate with
unions, and you have just presented all the reasons why it can help
organisational performance, you may then want to start a section about
the industries where it is not so beneficial. You might begin this with the
signpost sentence, ‘However, there are a range of industries in which
negotiating with unions can reduce firm performance but managers have
little choice’. You have made it clear to the reader what the paragraph is
going to talk about and you can now go on to elaborate.
c. Plan the main body of your essay
Time can feel tight in the exam, but there is usually a benefit to spending a
minute at the beginning of each question sketching out a very rough plan
for your question. It is particularly important for questions with multiple
parts because it will make sure that you do not get carried away with
writing and totally forget about the second half of what you are being
asked to do.
d. Use subheadings
It is also perfectly acceptable in this module to use subheadings to divide
up your answer. Because we often set candidates questions that have two
or three components, organising your answer by using these as headings
can show that you have covered all the key points. These subheadings
might be the same as the main sections you identify you need to cover in
your plan.
e. Conclusion
Even if it is only a couple of sentences, making sure that you provide
a conclusion to your answer, which offers a very brief answer to the
question, is essential.

Feedback on the exam this year

We have been pleased that in comparison to last year there has been a
marked increase in comprehension with the more challenging parts of
the syllabus. Candidates are now engaging with a wider range of material
more confidently and we are pleased to see knowledge from a wide range
of sources being included in a number of answers, particularly in relation
to marketing, finance and unions.
However, the improvement in level has not been seen in the more
straightforward areas of the syllabus, such as Taylorism, the Hawthorne
Studies, the Resource Based View and Porter’s Five Forces. Candidates
appear to be struggling to push themselves up to the next level of
performance, but following the advice above should help with this
Additionally, we would like to see more scores of 60s and 70s overall.
The necessary level of knowledge does seem to be there, but it is not being
applied to the questions in a way that allows us to reward candidates with
4
 Examiners’ commentaries 2017

these higher marks. For example, candidates clearly know a lot about
unions, but are not able to marshal their knowledge to provide a specific
and well-measured answer to the question. Again, following the advice
above should help.
With the questions based on management science, finance and accounting
(chapters 7–12 in the online text), candidates too often spend a lot of time
producing ‘fake’ accounts or complicated calculations to show us that they
know what they are doing. We are not looking for this. We are looking for
discussion to show us that you know what you are talking about. While
it is fine to put in a few numbers, or a really short worked example, this
should only be as a supplement to the text, not instead of writing an essay.
You cannot get across the sort of discursive ideas and points that we want
to give you marks for without writing an essay.

Examination revision strategy

Many candidates are disappointed to find that their examination

performance is poorer than they expected. This may be due to a
number of reasons, but one particular failing is ‘question spotting’,
that is, confining your examination preparation to a few questions
and/or topics which have come up in past papers for the course. This
can have serious consequences.
We recognise that candidates might not cover all topics in the syllabus
in the same depth, but you need to be aware that examiners are free
to set questions on any aspect of the syllabus. This means that you
need to study enough of the syllabus to enable you to answer the
required number of examination questions.
The syllabus can be found in the Course information sheet available
on the VLE. You should read the syllabus carefully and ensure that
you cover sufficient material in preparation for the examination.
Examiners will vary the topics and questions from year to year
and may well set questions that have not appeared in past papers.
Examination papers may legitimately include questions on any topic
in the syllabus. So, although past papers can be helpful during your
revision, you cannot assume that topics or specific questions that have
come up in past examinations will occur again.
If you rely on a question-spotting strategy, it is likely
you will find yourself in difficulties when you sit the
examination. We strongly advise you not to adopt this
strategy.

5
MN2177 Core management concepts

Examiners’ commentaries 2017

MN2177 Core management concepts – Zone A

Important note

This commentary reflects the examination and assessment arrangements

for this course in the academic year 2016–17. The format and structure
of the examination may change in future years, and any such changes
will be publicised on the virtual learning environment (VLE).

Information about the subject guide and the Essential reading

references
Unless otherwise stated, all cross-references will be to the latest version
of the subject guide (2016). You should always attempt to use the most
recent edition of any Essential reading textbook, even if the commentary
and/or online reading list and/or subject guide refer to an earlier
edition. If different editions of Essential reading are listed, please check
the VLE for reading supplements – if none are available, please use the
contents list and index of the new edition to find the relevant section.

Comments on specific questions

Section A
Answer two questions from this section.

Question 1
Critically assess the extent to which the principal-agent model provides an
accurate account of the employment relationship.
Reading for this question
Most relevant sections of the subject guide: Chapter 6.
See also Willman, P. Understanding management: social science foundations.
(Oxford: Oxford University Press, 2014) [ISBN 9780198716921] Theme 2.
Learning outcomes being examined
• Explain the agency problem, using examples
• Critically assess whether the agency problem can be solved through
contracts.
Approaching the question
• The answer needs to outline a number of the eight key assumptions
explained in Chapter 6 of the online subject guide.
• We were then expecting candidates to use some of these assumptions
(but not all – there is not time to engage with all of them) to question
whether or not the principal-agent model actually provides an accurate
account of the employment relationship or not.
• Candidates will likely have argued that in some ways it does, for
example, assuming that utility maximisation can be a key motivator for
individuals and that managers are required to guard against workers
always acting in their own self-interests.
6
 Examiners’ commentaries 2017

• Candidates will likely have argued in some ways it does not – for
example, pure profit maximisation is not always the motivation of
employees or managers, as the Hawthorne Studies show.
• Candidates may also have used behavioural economics to show how
the belief that people are always effective and well-informed as they
try to maximise their utility are unfounded. For example, prospect
theory shows that people who have lost money are more focused on
getting it back than on maximising the utility of what they have left.
• Evidence and examples would help candidates to provide justifications
of points for/against the accuracy of the account of the employment
relationship that PA theory provides. For example, they might use a
theory (such as prospect theory) or an example (such as a real life
or fictitious company example) to show that a belief that people are
always aiming to optimise their utility to be misguided.
A satisfactory answer would:
• Outline the key tenets of PA theory with a good level of accuracy
• Use examples to show how PA theory does OR does not work
• Make brief consideration of the alternative perspective (for example,
if the main thrust of the candidate’s argument is that it is accurate,
then the answer would make at least brief recognition that it is not
accurate. OR, if the argument is that it is not accurate, then the answer
would at least make brief recognition that it is accurate).
An excellent answer would:
• Recognise that Principal-Agent theory is only accurate to an extent
• Use evidence, such as the findings of the Hawthorne Studies or
behavioural economics, to explain how taking a view in which
everyone aims only to maximise their utility leads to an overly
simplistic and potentially problematic view of the world.
Where candidates could have done better
• Weaker answers addressed the question in a very one-sided way,
arguing only for it being accurate OR inaccurate, and not considering
that it could be accurate to some extent, or in some circumstances,
but not in others. It i important to realise that, if a question asks you
to ‘critically assess the extent to which…’ it is saying that the theory is
likely to be relevant only to an extent, and it would like you to explain
to what extent it is relevant and where it begins to be problematic.
• Principal-agent theory is an area which links well with other aspects of
the syllabus. It would have been really useful for candidates to bring in
a wider range of theories to expand their discussions. If, for example,
candidates had looked at how the Human Relations approach
recognises individual motivation, they would have done well as they
would have shown their ability to be critical. Or if they had explored
how behavioural economics shows the purely rational approach to
be very limited in its application to real people, they would have also
impressed the examiners because they would be recognising that PA
theory is only relevant to an extent.
• When answering a question on principal-agent theory, candidates
need to strike the balance between spending their whole time laying
out the key assumptions, which leaves no space for criticality, and
not looking at enough of the key assumptions, which does not allow
them to demonstrate their knowledge. The best approach is to group
some together, or to look at what you feel are the most important
7
MN2177 Core management concepts

assumptions to allow you to answer the question. A really useful

sentence to remember in any exam question is, ‘I’ll be focusing on the
most important elements of the theory in relation to this question’.

Question 2
Explain why workers join unions and why employers agree to negotiate with
unions. Use relevant examples to justify your answer.
Reading for this question
Most relevant sections of the subject guide: Chapter 4.
See also Freeman, R. and Medoff, J. What do unions do? (New York:
Basic Books, 1984) [ISBN 9780465091324] Chapter 11; Wilman (2014)
Chapter 3; Wilman (2014) Theme 3.
Learning outcomes being examined
• Outline the key features of the history of labour unions
• Describe the potential benefits of unions to firms and employees
Approaching the question
• We were expecting answers to explain clearly what the motivations
are for a worker to join a union and then to look at why employers are
willing to negotiate with unions, making use of the specific arguments
and research outlined in Chapter 4 of the subject guide to structure
their answers.
• We wanted candidates to avoid common sense explanations (that
is, the idea that unions always lead to a reduction in profitability for
companies).
• Answers needed to recognise that there were different motivations and
outcomes in different industries and countries.
• Answers also should have recognised how union membership has
changed over time with the increase in employee protection through
labour laws.
• We were expecting examples throughout the answer, in terms of
companies, industries and motivations. There are lots of these in the
subject guide and in the Willman reading that students could make use
of.
• We were expecting the answer to be weighted roughly equally between
points addressing why workers join unions and why employers agree
to negotiate with unions.
A satisfactory answer would:
• Provide reasonable explanations of why workers join unions, making
use of the theories covered in the subject guide
• Provide reasonable explanations of why employers agree to negotiate
with unions, likely making direct reference to Freeman and Medoff
• Draw on relevant elements of historical development to explain both
parts of their answer
• Use examples, although perhaps only briefly.
An excellent answer would:
• Go into detail regarding why employers negotiate with unions, making
reference to Freeman and Medoff and possibly other theorists
• Extend the argument by comparing different industries and/or
countries to explore why union membership and arrangements are
different
8
 Examiners’ commentaries 2017

• Provide an explanation of how things have changed more recently,

with less unions and less negotiation with unions, due to the
improvement in labour laws protecting the individual worker.
Where candidates could have done better
• This was one of the better handled questions on the paper, perhaps
reflecting the very good resources that are in the subject guide and
the readings on this subject. Most students were able to convey the
underlying explanations, even if these were not always as explicit as
the reasons set out in the subject guide.
• However, the major problem in this question was so many students
used the exact structure of the chapter in the subject guide rather than
directly responding to the question. This meant that there was a lot of
irrelevant content, not marshalled to answer what was asked.
• Also, it was better when candidates gave explanations of why workers
join unions that were based on the theories themselves, rather than
the sorts of common sense explanations that unions are always a
problem for employers because they benefit only workers.

Question 3
Evaluate the value of the M-Form structure for contemporary organisations. Use
examples to illustrate how an organisation’s size, industry or other contextual
factors might influence whether the M-Form is an appropriate structure.
Reading for this question
Most relevant section of the subject guide: Chapter 15.
See also Willman (2014) Chapter 5.
Learning outcomes being examined
• Outline the key features of a range of organisational forms
• Provide a critical evaluation of particular structural forms
• Describe the impacts that structures may have on the practice of
organisations and their managers.
Approaching the question
• Answers needed to define the M-Form organisation and highlight
briefly when it is most commonly used.
• Occasions when candidates may have recognised the M-Form to be
particularly helpful may have included: high levels of accountability
needed, lots of products/services, not too much overlap between the
work of different divisions.
• Times when the M-Form might have been more problematic could
have included: when it is hard to divide up responsibility and
accountability, where there are lots of different ways to divide up
responsibility.
• Other contextual factors which might be argued to be important
could have included geography, autonomy, managerial experience
and others. We were very open as to the way that candidates chose
to answer this question, as long as they were logical in what they
suggested.
• Diagrams/organograms/organisational charts (probably simplified
and fictitious: no extra marks would be rewarded for memorising
something complex and real) could have been used to help explain the
structure in a number of answers.

9
MN2177 Core management concepts

• As long as diagrams are used to support, as opposed to replace,

a textual argument, we feel they can be an excellent resource for
candidates to use to help manage their time and to demonstrate their
understanding.
A satisfactory answer would:
• Give good evaluation of the M-form structure as a sensible structure
(or not)
• Cover a range of issues around diversity of product/size/industry,
probably making use of examples to illustrate their answer
• Recognise the U/J form and compare M-form to it, where it is relevant
for their answer.
An excellent answer would:
• Give a very good evaluation of the M-form structure as a sensible
structure, or not, probably weighing up the two extremes of this
argument
• Cover a decent range of issues around diversity of product/size/
industry, making use of decent examples to illustrate their answer.
Where candidates could have done better
• This question relied upon candidates being able to identify what an
M-Form structure is, when it is used and what characteristics it has.
A lot of candidates struggled to do this. It is obviously better to have a
go at answering in some way if there really is no other question on the
paper that a candidate feels comfortable with, but in this case it may
be that candidates are not revising enough of the syllabus and thus
are not prepared for the range of questions that could come up. It is
really important to revise most of the syllabus, as anything could be
examined and two topics could certainly be combined in one question.
• Generally candidates struggled to give examples on this question
and to bring in the contemporary context. It is absolutely fine for
the examples to be hypothetical, that is, for candidates to make up
companies or situations that allow them to illustrate their point.
What we are looking for in a question such as this is a candidate’s
ability to apply the theory to possible alternatives, and it is fine if
these alternatives are created to demonstrate the theory, rather than
being ‘real’.

Question 4
How can the income statement be used for managerial decision making?
Provide examples to illustrate your answer.
Reading for this question
Most relevant section of the subject guide: Chapter 10.
See also Willman (2014) Chapter 8; Weetman, P. Financial accounting:
an introduction. (Harlow: Pearson, 2013) sixth edition [ISBN
9780273789253] Chapter 7.
Learning outcomes being examined
• Describe the purpose of and differences between the income
statement, cash flow statement and balance sheet
• Explain how the income statement, cash flow statement and balance
sheet can be used to inform managerial decision making.

10
 Examiners’ commentaries 2017

Approaching the question

• The purpose of this question is to get students to link the entries that
typically appear in the income statement to the ways in which those
lines might be used to make decisions by/for managers.
• As such, answers needed to highlight key figures on in the income
statement and explain how managers might use those figures to make
decisions.
• We were expecting answers not only to highlight how those raw
figures might be used, but also how they could be turned into ratios,
for example using earnings to work out earnings per share.
• Once they had identified figures, candidates should have spent the
bulk of their answers talking about how those figures/ratios could be
used in decision making. For example, with Earnings per Share (EPS):
a. They could be used for benchmarking across companies in the
same industry.
b. Because the figure is used by shareholders to make their decisions,
managers could try to work in a way that alters the EPS year on
year to impress or reassure shareholders.
c. Managers might want to provide commentary in the accounts as to
why EPS has gone up or down. For example, if it has gone down,
it may be because the managers have decided to reinvest profits to
allow for substantial growth that will benefit the shareholders in
future years. If it has gone up, the managers may then decide to
warn shareholders that this pattern would not easily continue.
d. There are plenty of other ways it could affect managerial decisions.
• The conclusion to this answer is likely to recognise how the figures
on the income statement are part of a much larger set of numbers on
which managers make decisions, including non-financial figures in, for
example, the balanced scorecard, such as staff turnover for the year.
A satisfactory answer would:
• Engage with the idea of using the figures to make managerial decisions
• Make some mention of using raw figures, providing examples
• Make some mention of using ratios, providing examples
• Look at one or more other ways in which managers can use the
information in the income statement to inform decision making.
An excellent answer would:
• Provide a wide range of ways in which the income statement can be
used to inform decision making, making good use of the syllabus to
talk about ratios and absolute figures
• Suggest further ways that these figures might help decision making,
such as being fed into the balanced scorecard, or being used to
benchmark across industries or departments, or compare with previous
years.
Where candidates could have done better
• The answers were quite polarised on this question, with many weaker
answers focusing on setting out the income statement or laying out
lists of ratios, as opposed to linking information to types of decisions.
Remember that this is a module that requires essay-style answers and
discussion throughout. Therefore laying out the income statement
will gain far fewer marks than using the time to discuss a couple of
11
MN2177 Core management concepts

entries on the income statement and how they can be used for decision
making.
• If a question asks for examples, it is important to use them repeatedly
in your answer, as it means we are looking for your ability to apply the
examples to the theories/tools to show that you understand how they
work in practice. They do not have to be examples of real companies,
but can be hypothetical examples. For example, I could say ‘The CEO
of a travel agency could be very concerned about the profitability of
her division this year, as she has had significant outlays on new office
equipment. By working out the profitability ratios for the business
and benchmarking them to others in the industry, she can see if
they have underperformed the rest of the sector in part as a result
of this expenditure’. This is not a real example, but it allows me to
demonstrate that I know how this information is used.

Section B
Answer two questions from this section.

Question 5
Evaluate the different types of information an investor might use to try to
compile an efficient investment portfolio.
Reading for this question
Most relevant section of the subject guide: Chapter 12.
See also Willman (2014) Chapter 8; D. Hillier, M. Grinblatt and S. Titman.
Financial markets and corporate strategy. (Maidenhead: McGraw-Hill
Higher Education, 2011) [ISBN 9780077129422] Chapter 4.
Learning outcomes being examined
• Describe the process of constructing a balanced portfolio and its
significance for managers
• Evaluate the different types of efficient market hypothesis, focusing on
their impact on investment decisions
Approaching the question
• This question required candidates to evaluate a range of different
information types that an investor might use if he or she were trying to
compile an investment portfolio. Candidates needed to define what the
term ‘efficient investment portfolio’ means, using the efficient portfolio
frontier covered in Chapter 12.
• Answers needed to include description of what a portfolio is and how
it can help to spread risk, for example by buying shares with opposing
cyclical patterns, or by balancing something very high risk with
something much lower risk to make an average level of risk.
• We were also expecting candidates to use other materials from
Chapter 12, including Sharpe’s ratio and efficient market hypotheses.
• We thought that candidates might make suggestions of information
aside from these types, such as non-financial information. We were
receptive to answers that talked about other information types such
as these, particularly where they recognised that this required a wider
definition of the term ‘efficient’ than just maximum return for a set
level of investment and/or risk.
• Conclusions were likely to say that there were a range of information
types that could be used, and that a manager will want to make use of

12
 Examiners’ commentaries 2017

quite a few in order to make a balanced decision. Conclusions might

also have pointed out that financial analysis is just one part of the
picture and any information about how a company is run or what it is
planning to do in the future might also shape decisions.
A satisfactory answer would:
• Provide a good basic analysis of information that might be used to
construct an efficient investment portfolio
• Give some consideration of wider factors aside from those used to do
portfolio efficiency calculations
• Make reference to one or more of the theories/models covered in the
chapter, such as Sharpe.
An excellent answer would:
• Provide a high quality analysis of a range of issues that might have an
impact
• Recognise that portfolio efficiency is only one measure that an investor
will want to take into account if he or she is trying to construct a
suitable portfolio.
Where candidates could have done better
• Candidates who were not familiar with the key material did not score
particularly well. Again, it is important that candidates revise almost
the whole syllabus as any part could come up, alone or in conjunction.
• Covering a range of issues is more useful than talking about one
element in detail, as you are showing the examiners that you have a
wider understanding of the syllabus.
• Candidates who performed too many calculations in preference
to undertaking discussion did less well. We really are looking for
discussion throughout. We like to see candidates showing their
knowledge of equations, diagrams, etc., but they still need to be
explained in the text so that we can see your skills of arguing,
analysing, synthesising, etc.

Question 6
Critically assess the contribution of the resource based view to our
understanding of organisations, making reference to complementary models.
Reading for this question
Most relevant section of the subject guide: Chapter 14.
See also Whittington, R. What is strategy – and does it matter? (Ontario:
Thomson International, 2000) second edition [ISBN 9781861523778]
Chapter 2; Willman (2014) Chapter 7.
Learning outcomes being examined
• Describe the resource based view (RBV) of the firm and its
implications for strategy
Approaching the question
• We were expecting candidates to outline the key tenets of the resource
based view (VRIO).
• Answers should show how the RBV contributes to our understanding
of organisations through its structured focus on internal resources.
• However, as the answer is asking candidates to ‘critically assess’, we
wanted to see the other side of the argument too, with the RBV’s

13
MN2177 Core management concepts

weaknesses also highlighted. These might have included (a) its failure
to look externally; (b) the fact that it is hard to falsify; (c) the fact
that it is focused on ex post analysis rather than prediction; (d) the
problem with using the approach in dynamic environments.
• Answers should then have considered other strategic models that
could be used in conjunction to help deal with at least some of
the weaknesses. For example, Porter’s Five Forces could be used in
conjunction to include an external focus; dynamic capabilities could be
used in conjunction to tackle problems with dynamic environments.
• The question is posed in such a way that the conclusion is likely to
say that RBV is useful, but more useful when used in conjunction with
other models. However, we were receptive to other conclusions if they
were well argued.
A satisfactory answer would:
• Outline the resource based view, focusing on the four key areas
• Identify some problems with it
• Suggest alternative or complementary approaches, for example P5F or
SWOT.
An excellent answer would:
• Explain the RBV in reasonable detail
• Give a detailed, balanced critique of the model
• Suggest models such as Porter’s Five Forces and/or Dynamic
Capabilities that could be used in conjunction.
Where candidates could have done better
• We were happy to see lots of reasonable answers to this question, but
perhaps not as many really good ones as we might have hoped for,
considering this is often one of our candidates’ favourite parts of the
syllabus.
• Key to doing well on this question was time management –
descriptions of the RBV needed to be succinct enough to leave time
to discuss its strengths and weaknesses and to present other theories
as complements/alternatives. It reiterates the need to write out an
essay plan, so that you can see how much time, roughly, you should
be spending on each part of the question. Some of the better answers
said just enough about the RBV to allow us to be confident that they
were clear on what it included, and then moved on to the more critical
aspects of the question.
• Remember: being critical, and suggesting alternatives, are both the
sort of higher level skills for which we can award higher marks.
Ensuring that you spend enough time on those can be critical to
achieving marks in the 60s and 70s.
• It is certainly a waste of time to spend pages outlining Porter’s Five
Forces as the first part of an answer, and then presenting RBV as an
alternative to it. It could be the way that some of our students have
been taught the material, but it is not what the question is asking for.
Always be completely responsive to the question.

14
 Examiners’ commentaries 2017

Question 7
Evaluate the role of heuristics in business decision making, using appropriate
examples.
Reading for the question
Most relevant section of the subject guide: Chapter 17.
See also Bazerman, M. Judgment in managerial decision making. (New
York: Wiley, 2002) fifth edition [ISBN 9780471398875] Chapter 2;
Bromiley, P. The behavioural foundations of strategic management. (Oxford,
Blackwell, 2005) [ISBN 9781405124706] Chapter 1; Willman (2014)
Theme 4.
Learning outcomes being examined
• Discuss the impact of biases and heuristics on managerial decision
making
Approaching the question
• We were expecting answers which firstly identified what heuristics are,
using one or more examples to do so.
• Candidates were then likely to evaluate the positive and negative roles
that heuristics can play in business decision making, making use of the
language from the decision making chapter, including specific biases
and relevant examples.
• We felt it was important that answers did not just focus on the
negative elements of heuristics. We need heuristics so that we do
not have to routinely rediscover the world. They are the sort of
mental shortcuts that allow us to function at the speed and in the
ways expected of us. Making assumptions about someone’s ability to
do a job based on the way they walk into an interview room can be
problematic, but they can also save us a lot of time in that we can use
all the information about how they are dressed, how they walk, how
they shake hands, how they talk, to try to work out if they might fit
our company culture.
• However, we wanted candidates to recognise that, on the negative
side, they can lead to suboptimal decision making. Again using the
interview example, there might be someone who would be amazing
for our company and really fit the culture, but who is very nervous in
interviews, or who ruined their best interview suit on the way to the
interview and has had to run into the nearest shop to buy a new one,
which does not fit very well.
• Heuristics and thus biases can be particularly problematic for
managers who are routinely judged on the basis of their decisions and
their outcomes.
• A good conclusion would be likely to balance the positive and negative
aspects of heuristics.
A satisfactory answer would:
• Make attempts to outline what heuristics are
• Attempt to use examples to elaborate on answers
• Recognise that heuristics can have both positive and negative
consequences for managers and managerial decision making (see
above, Approaching the question).

15
MN2177 Core management concepts

An excellent answer would:

• Give a good description of what heuristics are
• Use useful examples to elaborate on answers, using the language (for
example naming biases or discussing prospect theory in detail) of the
key readings for this topic.
Where candidates could have done better
• Answers that made good use of examples to show how heuristics affect
business decision making (negatively and/or positively) did very well.
This is because, if a question specifies that it would like you to use
examples, you will be awarded marks for doing so.
• There were some big misunderstandings in the weaker answers
regarding the implications of heuristics. It is important to remember
that heuristics have positive, as well as negative, consequences, for
example saving us time and preventing us from constantly having to
rediscover basic aspects of the world. In a business context, building
up a knowledge base is critical to success.
• Weaker answers did not grasp that we often use heuristics
unconsciously; we do not necessarily ‘choose’ to use them. It is
important, even with the more difficult aspects of the syllabus, to make
sure that you have a good grasp on the complexities. It can be really
good to try to explain the complex aspects of the syllabus to a friend
and see if you can do this.

Question 8
What is a marketing plan and how is it used? Illustrate your answer with
appropriate examples from a company with which you are familiar.
Reading for this question
Most relevant sections of the subject guide: Chapter 20 (and to a lesser
extent Chapter 19).
See also Kotler, P. and G. Armstrong. Principles of marketing. (Harlow:
Pearson Education Ltd, 2016) sixteenth global edition, Chapter 8: sections
on ‘Brands’, pp.274–84; ‘What is a product?’ and ‘Product and service
decisions’, pp.256–68; Chapter 2: ‘Marketing strategy and the marketing
mix’, pp.74–9; Chapter 10, ‘What is price?’ and ‘Major pricing strategies’,
324–33; Chapter 16, section on ‘Advertising’, pp.474–90.
Learning outcomes being examined
• Explain the importance of a marketing plan and its relationship to
organisational strategy
• Populate a typical marketing plan with its key elements.
Approaching the question
• We were expecting answers which outlined what a marketing plan
was, focusing on the key elements of a marketing plan.
• Candidates were primarily expected to make use of the content in the
subject guide and readings to do so, but as many candidates study a
full marketing module alongside this module we were expecting some
answers to deviate from this content and were open to this.
• Some of the sections or purposes they could have considered include:
outline of marketing strategy and/or plans in a practical sense,
aligning marketing strategy with the rest of the business, establishing
sensible pricing, working out which sorts of products or services to sell,
to who, at what price, branding, which markets to target, etc. This is
16
 Examiners’ commentaries 2017

not an extensive list, and we were very open to sensible answers

outside of the above.
• We expected answers to use the same one example throughout, as
if they were writing a real marketing plan for an organisation. The
question clearly asks for this.
A satisfactory answer would:
• Outline what a marketing plan is and what it includes
• Give examples from one single company, as requested.
An excellent answer would:
• Outline the marketing plan, looking at a range of aspects (not limited
to the 4/7Ps)
• Recognise the organisational purpose of the marketing strategy, as a
tool to align marketing activities with the wider organisation
• Give examples from one company, well chosen to illustrate the points
being made.
Where candidates could have done better
• Candidates were generally well versed on the 4/7Ps, but did not
recognise on the whole that a marketing plan can have a wider
range of sections and therefore purposes than this. Candidates are
encouraged to look at the way in which the subject guide for this
subject talks about the marketing plan, and in particular the variety of
sections it could have, and to try to make use of these in future.
• If a question asks for one example to be used throughout, then this is
important. The reason we sometimes specify this is to make the task
more realistic. By asking for a marketing plan focused entirely upon
one company, it is more in keeping with what might be undertaken
in the real world. This helps candidates by showing them that some
sections are easier/harder for some companies, and therefore provides
more to be critical of and/or discuss.
• The usual problem – that some candidates went through the relevant
chapter in order rather than specifically responding to what they were
being asked for in the question – emerged again. It is really important
to respond to what the individual question is asking, as this is how
the highest marks can be achieved. Familiarising yourself with old
exam papers, and thus seeing some of the more typical formulations of
question that we ask, can be really helpful here.

17
MN2177 Core management concepts

Examiners’ commentaries 2017

MN2177 Core management concepts – Zone B

Important note

This commentary reflects the examination and assessment arrangements

for this course in the academic year 2016–17. The format and structure
of the examination may change in future years, and any such changes
will be publicised on the virtual learning environment (VLE).

Information about the subject guide and the Essential reading

references
Unless otherwise stated, all cross-references will be to the latest version
of the subject guide (2016). You should always attempt to use the most
recent edition of any Essential reading textbook, even if the commentary
and/or online reading list and/or subject guide refer to an earlier
edition. If different editions of Essential reading are listed, please check
the VLE for reading supplements – if none are available, please use the
contents list and index of the new edition to find the relevant section.

Comments on specific questions

Section A
Answer two questions from this section.

Question 1
Critically assess the extent to which the principal-agent model provides an
accurate account of the employment relationship.
See Zone A.

Question 2
Why might organisations choose to use the balanced scorecard to help with
performance measurement? What are the problems with it?
Reading for this question
Most relevant section of the subject guide: Chapter 9.
See also Willman (2014) Theme 5; Kaplan, R. and A. Atkinson. Advanced
management accounting. (Harlow: Pearson Education, 1998) third edition
[ISBN 9780130802200] Chapter 8.
Learning outcomes being examined
• Critically evaluate key financial methods for performance
measurement that are used by organisations, giving examples where
appropriate
• Explain the benefits to managers of using both financial and non-
financial performance measures
• Explain the impact of performance measurement systems on
management behaviour and performance.

18
 Examiners’ commentaries 2017

Approaching the question

• We were expecting candidates to spend the first part of their answer
talking about the advantages that using the balanced scorecard to help
with performance measurement, before outlining the problems.
• Major advantages candidates could have discussed included: (a) the
blend of financial and non-financial measures, balancing short-
term concerns with longer-term success; (b) the range of business
perspectives it can consider (financial, customer, learning and
innovation, and internal business processes); (c) the wide business
perspective it takes; (d) the fact that it encourages conversation and
collaboration between departments that might otherwise perceive
themselves as separate.
• Major disadvantages candidates could have discussed included:
(a) the difficulties of coming up with the measures – costly and
time-consuming; (b) the difficulties of relating the measures to one
another – coming up with a small group, all of which are critical,
but at the exclusion of other factors that might be important but
have been forgotten about or are unknown; (c) people ‘playing up’
to the measures which are selected, focusing on improving those
at the expense of other business areas; (d) over time good and bad
performers converge as everyone tries to play the game, making it
harder to distinguish good and bad performance. In such a situation
new measures need to be created (called the ‘running down’ of
performance measures in the subject guide, where it is covered in
some detail).
• We expected most conclusions to say that the balanced scorecard is a
useful invention, but that it is not without its problems. Some of these
can be solved through combinations and alterations, but the costs and
time consuming nature of the BSC are unavoidable.
A satisfactory answer would:
• Be able to explain what the balanced scorecard is and identify three
or more of the sections, with examples of the types of things they can
include
• Identify one or two significant problems with the BSC
• Be aware that BSC tries to address short-termism in having some
longer-term foci, and should have financial and non-financial factors.
An excellent answer would:
• Identify a range of significant problems with the BSC, using relevant
terminology (for example, running down) and getting across the key
points
• Give some sense of how to solve some of the problems, perhaps with
reference to combining it with other measures such as ROI or ‘use it
and lose it’
• Recognise that alternative approaches have their own problems too.
Where candidates could have done better
• The foundational elements of the tool were generally well covered,
although a number of answers focused largely on comparisons with
other measures, such as ROI / EVA, without providing an overview
of the four sections. In order to show an understanding of BSC,
reasonable detail as to what it is (a paragraph or two) is needed.
Alternatively, this recognition needs to be woven in to the argument
overall.
19
MN2177 Core management concepts

• Very few answers used relevant terminology when discussing problems

with the tool or plausible explanations for how these could be solved.
On this module, as candidates are being asked to think as a manager,
we are very receptive to ideas about how to solve problems identified,
even if these are not specifically asked for in the question.
• In the main reasons to explain the ‘running down’ of performance
measures were not particularly well covered. It is important for
candidates to get to grips with the more complex areas of the subject
guide, as generally demonstrating a decent understanding of these will
help candidates to achieve higher marks.

Question 3
Explain why workers join unions and why employers agree to negotiate with
unions. Use relevant examples to justify your answer.
See Zone A.

Question 4
Compare and contrast the main findings of Scientific Management and the
Hawthorne Studies, and provide and justify an opinion on which is most relevant
to today’s workplace.
Reading for this question
Most relevant section of subject guide: Chapter 3; candidates may also
have drawn upon materials from Chapters 5 and 6.
See also Willman (2014) Theme 2.
Learning outcomes being examined
• Describe the main elements of Taylor’s approach
• Discuss the strengths and limitations of scientific management
• Explain the main elements of the human relations approach.
Approaching the question
• We were expecting the answers to provide a historic account of the
Hawthorne Studies, showing them as a counterpoint to Taylorism.
We were then expecting answers to explore how the Hawthorne
Studies, in their rejection of the idea that workers are only motivated
by money, to pave the way to Human Relations approaches to
management, work and motivation today.
• There were a range of differences that candidates could highlight.
Here we have laid out some of the more common ones as they are not
explicitly compared in the subject guide:
Scientific management focuses on the individual; Hawthorne
Studies’ findings recognised the important of groups.
Scientific management treats people as being motivated solely
by money; Hawthorne Studies see people as motivated by social
activity as well, not just money, and that sometimes the money is
less important to them than a sense of belonging.
Scientific management spawned management science and
a scientific way of thinking about management. Hawthorne
Studies spawned a softer approach that could be linked to the
human relations approach, and ultimately the formation of HRM
departments in organisations.

20
 Examiners’ commentaries 2017

Scientific management believed that getting the best out of people

was as a simple as constructing the task so ‘any idiot could do it’.
The Hawthorne Studies showed that getting the best out of people
was more complicated and involved social and psychological
processes.
Scientific management presents a manager’s main job as being to
find the one best way to do a task and making sure that people
do it that way. Hawthorne Studies saw that a manager may
need decent people skills to get the most out of people, and a
recognition that task efficiency is not the only aspect of achieving
good performance.
Scientific management is criticised for making work dull and
meaningless. Hawthorne Studies are criticised for being too soft
and not paying enough attention to efficiency.
• Importantly, a question that asks you to compare and contrast is not
only interested in differences; it is fine to highlight similarities too.
In relation to SM and HS, some of their similarities (again set out here
because they are not made explicit in the subject guide) are:
They both started from an interesting in ‘one best way’
They are both interested in how to get the most out of people at
work
They are both fundamental theories in the field of management,
from which whole schools of thought (and paradigms, and
management approaches, and ways of working) have emerged
They have both been subject to a number of criticisms (that is,
they are not perfect theories).
• There is no right answer, obviously, on which is the most relevant
to today’s workplace, but what candidates should do is come to
an answer and justify it. Most good answers will tend to recognise
that both have a place, even if they argue for the relevance of one
more than the other. It is absolutely critical for candidates to reach a
position, though, and justify it, as this is specifically asked for in the
question. We are looking for skills of argument and your abilities to
use evidence and theory to justify your answer in this regard.
A satisfactory answer would:
• Lay out some key areas of scientific management
• Lay out some areas of Hawthorne Studies
• Say which is the most relevant today, including some examples/
explanations to justify their reasoning as to which is more relevant, or
to what degree each is relevant (it is fine to say they both are, and in
fact most of the better answers did exactly this).
An excellent answer would:
• Compare and contrast scientific management and the Hawthorne
Studies, highlighting some similarities and some differences
• Reflect on both approaches, saying how they are/are not relevant for
today’s workplace
• Conclude on which is more relevant, but probably acknowledge that
both are, giving good examples to justify this standpoint.

21
MN2177 Core management concepts

Where candidates could have done better

• Candidates were generally competent at setting out the main
principles of both, but with a significant leaning towards Taylorism
in terms of content/quantity. Considering that the question asked
for ‘compare and contrast’, there were many answers that gave no
comparison at all. If a question asks for comparison and contrast
between two approaches, the answer needs to be largely weighted
evenly between the two.
• Many of the weaker answers also struggled to provide a robust
argument concerning what was appropriate today. Many students
thought of one company they knew, for example McDonalds, and
used that to argue that Taylorism, for instance, was therefore the most
useful, ignoring all the counter-evidence. It is really important to come
into the exam prepared with examples of the major theories of the
module in practice, for example an example of Taylorism being used
today and an example of Human Relations approaches being used
today. In other subjects this could be an example of how RBV could be
used today, how prospect theory could be used today, and so on.

Section B
Answer two questions from this section.

Question 5
Critically assess two of Mintzberg’s five-fold classification of organisations,
providing examples of when each might be used.
Reading for this question
Most relevant section of subject guide: Chapter 15.
See also Willman (2014) Theme 6; Willman (2104) Chapter 5.
Learning outcomes being examined
• Outline the key features of a range of organisational forms
• Provide a critical evaluation of particular structural forms
• Describe the impacts that structures may have on the practice of
organisations and their managers.
Approaching the question
• We were expecting answers to explain briefly what Mintzberg’s five-
fold classification of organisations, as laid out in Chapter 15.
• However, in Chapter 15, they are just simple summaries. Here we
were looking for candidates to use their own independent thinking
to add detail to these simple summaries. They could draw upon what
they know about organisations more generally from this chapter and
elsewhere in the subject guide to provide strengths and weaknesses of
the two of the five forms, and to say under what sorts of circumstances
each might be used.
• It seemed logical to expect that candidates would choose two forms
that they could talk about in sufficient detail, and possibly that they
could think of real examples of companies which largely used that
form.
• It was important to choose just two of the organisational structures to
allow sufficient time to talk about each in enough detail to gain the
relevant marks.

22
 Examiners’ commentaries 2017

A satisfactory answer would:

• Lay out the two structures that have been chosen in line with the
summaries in the book, highlighting some of the key features and
drawing on content from Chapter 14 more widely to answer the
question
• Provide examples of when they could be used, even if these are just
drawn straight from the subject guide
• Undertake some sort of comparison/contrast between the two forms,
using details from the subject guide as well as wider knowledge of
organisations and what the implications of using a particular structure
might be.
An excellent answer would:
• Clearly describe the two structures, possibly making use of other
aspects of ‘Structure in Fives’, such as the Mechanisms, which might
have a relationship to the structures
• Provide useful examples, drawn from other areas of the syllabus, their
classes, or their own research, thoughts or experiences
• Provide some critique of the value of the Structure in Fives theory
(strengths, weaknesses or both).
Where candidates could have done better
• This was one of the least popular questions and certainly one of
the worst answered. The reason may be because candidates are not
always engaging with the wider reading required of them to do well
in the module, and so were not well prepared to answer this question.
Candidates should remember that it is important to revise everything
in the Essential readings, which therefore includes Willman’s
discussion of Mintzberg in the textbook.
• It may also have been unpopular as it covered only a small corner of
the syllabus, and so candidates were worried that they would not have
enough to say. In fact, those candidates who really threw themselves
at this question and provided good examples of real companies, as
well as undertaking some critique of the structures and/or models, did
very well.

Question 6
Evaluate the different types of information an investor might use to try to
compile an efficient investment portfolio.
See Zone A.

Question 7
Conduct a Porter’s Five Forces analysis of an industry you are familiar with.
Evaluate the model’s value as a strategic tool.
Reading for this question
Most relevant section of subject guide: Chapter 13.
See also Porter, M. E. ‘The five competitive forces that shape strategy’,
Harvard Business Review, January 2008, pp.78–93; Willman (2014)
Chapter 6.

23
MN2177 Core management concepts

Learning outcomes being examined

• Describe the main elements of the Porter framework
• Outline the strengths and limitations of the approach
• Discuss the core concepts of business strategy.
Approaching the question
• We were expecting candidates to open with a brief description of the
Five Forces model, recognising that it is a strategic tool concerned with
industry position.
• Students are then likely to work through each of the Five Forces,
before outlining the strengths and weaknesses of the model. The
strengths are easy to derive and might include:
Very influential
A recognition that industry structure can have an impact on firm
structure, which in turn influences conduct and then performance
A simple enough model of competitive advantage
Well known
Easy to understand
Analysing the five forces allows an estimate of current profit
possibilities
Analysing the five forces opens up the possibility that a firm can
alter its industry position to its own advantage
Can be used as an indicator of what to protect and where the
competitive risks lie
For the diversified firm, it points towards effective portfolio
management, guiding market entry as well as exit considerations
• The demerits are clearly outlined in the subject guide in Chapter 13,
Section 13.3.3 and needed discussing in at least as much detail as the
strengths
• A conclusion, stating the value of the Five Forces model as argued in
the earlier parts of the question, was then required
A satisfactory answer would:
• Identify the Five Forces and make reasonable attempts to link them to
one or more companies
• Give an overview of the model’s value, looking at two or more reasons
why it has value
• Give some sense of the model’s issues, looking at one or more reasons
why it is problematic
• We would hope that satisfactory answers would not confuse the nature
of substitutes. We recognise that candidates often look ‘in industry’
when they think about substitutes – for example, in the canned fizzy
drinks industry, talking about Pepsi as a substitute for Coke (both
products in the canned fizzy drinks industry) rather than considering
a substitute for using the industry, such as drinking coffee or water.
It is a common mistake, but one which we would prefer not to see
candidates making.

24
 Examiners’ commentaries 2017

An excellent answer would:

• Identify all forces and make good attempts to link them to the one
specific company requited in the question, providing decent insight
into how Porter’s Five Forces is a strategic tool and therefore how it is
used
• Give good quality evaluation of the model’s value as a strategic tool,
able to give some detail and provide balance to the argument
• Make more extensive suggestions as to how other models and
strategic approaches can be used to round out the use of Porter’s Five
Forces, for example making use of RBV, dynamic capabilities or core
competencies.
Where candidates could have done better
• There were significant misunderstandings of substitutes in a lot of
cases, with this being a fairly good indicator of whether the students
understand it fully or not (see above, ‘Approaching the question’ for
more information). Remember that substitutes need to be from outside
the industry, not from inside the industry.
• Describing the tool without applying the description to an industry is
not answering the question. Remember that if candidates are asked to
use an industry, or to give a specific example, that many of the marks
for the question will be coming from this component; if you omit it
you will, in essence, be putting a cap on how many marks you can get.
You should always make sure you read the question and get a clear
sense of how you are going to answer each part before you start. Most
candidates also find that an essay plan, even if it’s just four or five
bullet points, helps to keep them on track.
• It seemed relatively rare for candidates to carry out a full analysis and
find time to critique the tool. Remember that examiners are realistic
about what you can achieve in 45 minutes. If a question seems big,
then it is fine not to go into lots of detail on everything. A quick
summary of each force, and how it applies to the industry, is ample
here. You can then save yourself some time to talk about the problems
with the model.

Question 8
Evaluate the role of heuristics in business decision making, using appropriate
examples.
See Zone A.

25