Setting Functional Objectives: Marketing, Operations, Finance, HR - Worksheets, Questions and Revision

11 original exam-style questions - 2 pages of questions with a full mark scheme - free printable PDF.

Download PDF Jump to mark scheme (page 3)Setting Functional Objectives: Marketing, Operations, Finance, HR revision guide

This topic is chapter 8 of A Level Business: Decision making to improve performance and global business Practice Book.

BUS.AL30 Setting Functional Objectives: Marketing, Operations, Finance, HR

AQA 7132 · Calculators not allowed · about 60 minutes

Total Marks

Name: _______________________________ Date: ____ / ____ / ______

Answer ALL questions. Write full sentences for questions worth 3 marks or more. Use the case contexts given in prompts where provided. Show working for any numerical reasoning.

Identify which functional area is most likely to set a target of 'reduce machine downtime by 15% this year'.

A) Finance
B) Operations
C) Marketing
D) Human resources

(Total for Question 1 is 1 mark)

Identify which functional area is most likely to set a cash-flow target such as 'maintain monthly net cash inflows of at least £10,000'.

A) Human resources
B) Marketing
C) Finance
D) Operations

(Total for Question 2 is 1 mark)

State two internal factors that will shape HR functional objectives when aligning with corporate strategy.

(Total for Question 3 is 2 marks)

Identify which functional area would set a target stated as 'reduce overtime hours by 20% to control labour costs'.

A) Marketing
B) Finance
C) Operations or HR
D) Research and development

(Total for Question 4 is 1 mark)

State two typical functional objectives that the marketing department might set to support a corporate growth strategy.

(Total for Question 5 is 2 marks)

Which one of the following STEEPLE factors is most directly likely to affect a finance department's objective to 'maintain a low cost of borrowing'?

A) Social trends
B) Technological change
C) Economic interest rate movements
D) Legal employment regulations

(Total for Question 6 is 1 mark)

Explain one example of a conflict between a marketing functional objective and a finance functional objective, and state the consequence of that conflict for the business.

(Total for Question 7 is 3 marks)

Explain one advantage to a finance department of using SMART objectives, for example 'improve net cash inflow to at least £12,000 per month within six months'.

(Total for Question 8 is 3 marks)

Analyse how a corporate objective to 'improve net profit margin by 8% within 12 months' should influence a finance department objective such as 'improve return on capital employed (ROCE) by 5 percentage points'.

(Total for Question 9 is 6 marks)

Case: Clearwater Drinks plc's corporate objective is 'grow UK market share by 6 percentage points in two years'. Analyse how this corporate objective should shape a specific operations functional objective such as a capacity utilisation target.

(Total for Question 10 is 6 marks)

Evaluate how a business should resolve the conflict between marketing wanting to increase advertising spend to gain market share and finance insisting on strict cost control to protect profit margins. Make a justified conclusion and show the trade offs you consider.

(Total for Question 11 is 16 marks)

Mark scheme · BUS.AL30 Setting Functional Objectives: Marketing, Operations, Finance, HR

Question 1

B1 B cao
Answer: B

Question 2

B1 C cao
Answer: C

Question 3

B1 available HR budget or financial resources
B1 existing workforce skills and current staff numbers or organisational structure
Answer: Any two, for example: the HR budget and the current skills mix or staff numbers in the organisation.

Question 4

B1 C cao
Answer: C

Question 5

B1 increase market share by a stated percentage or points
B1 grow sales revenue by a target amount or percentage, or increase brand awareness metrics
Answer: Any two, for example: increase market share by a specified percentage; increase sales revenue or brand awareness by a stated target.

Question 6

B1 C cao
Answer: C

Question 7

B1 identifies a conflict, e.g. marketing wants increased advertising spend to grow market share while finance wants to cut costs
B1 develops the conflict, e.g. increased spending reduces short-term profits or cash available to finance
B1 links to a consequence, e.g. potential underfunding of other areas, missed profit targets or delayed investments
Answer: For example, marketing may push for higher advertising spend to grow market share while finance seeks cost cuts; this reduces short-term profit or cash and can lead to underfunding of other projects or missed profit targets.

Question 8

B1 identifies an advantage, e.g. provides clear, measurable targets for monitoring cash performance
B1 develops the point, e.g. the finance team can produce monthly cash forecasts and compare actuals to the target
B1 links to an outcome, e.g. this allows early corrective action such as arranging short-term finance if targets are missed
Answer: A SMART cash-flow target gives clear measurable criteria so finance can forecast monthly cash, compare actuals to the target and take corrective action, such as arranging short-term finance, if the target is missed.

Question 9

B1 identifies link between corporate profitability target and finance objective to improve ROCE
B1 explains contributions to ROCE such as increasing profit or reducing capital employed
B1 analyses possible measures, e.g. cost control, asset disposal or pricing changes to raise profit margin and ROCE
B1 analyses constraints or risks, e.g. cutting investment or assets may harm long-term capacity or competitiveness
B1 applies to the case by specifying how a 5 point ROCE target supports the 8% margin improvement, with examples
B1 concludes with cross-functional implications, e.g. need to coordinate with operations and marketing to avoid harming revenue while improving margins

Question 10

B1 identifies a relevant operations objective, e.g. raise capacity utilisation from current level to a higher percentage to meet increased demand
B1 explains how higher market share increases demand and so operations must expand throughput or improve utilisation
B1 analyses constraints, e.g. limited plant capacity, labour availability or lead times may limit how fast utilisation can increase
B1 analyses trade offs, e.g. pushing utilisation up may raise maintenance costs or defect rates if production is overstretched
B1 applies to the case by suggesting a quantified operations target, e.g. increase utilisation by X percentage points or add one shift, linked to the 6 point market share target
B1 concludes with implications, e.g. notes need for investment or coordination with marketing and HR to recruit/training staff

Question 11

Level 1 (1-4): Provides simple or one-sided points about the conflict with little application, no evaluation and no clear conclusion.
Level 2 (5-8): Demonstrates some application and analysis of the conflict, outlines options to resolve it, but evaluations are underdeveloped and the conclusion is weak or unsupported.
Level 3 (9-12): Analyses multiple ways to resolve the conflict, weighs benefits and drawbacks with application to the scenario, and reaches a reasoned conclusion though the judgement may lack full justification.
Level 4 (13-16): Thorough evaluation that balances costs and benefits of realistic options, integrates cross-functional implications, considers short and long term effects, and arrives at a clear, justified recommendation.
Indicative content:
- Set out the conflict: marketing argues extra advertising will increase market share and long-term revenue, while finance warns increased spend reduces short-term profit and may harm cash flow.
- Options to resolve: phased advertising increase with measurable milestones; reallocate budget from lower-return activities; use lower-cost digital campaigns; seek temporary external finance for targeted campaigns; or set conditional spend tied to sales performance.
- Costs and benefits: higher ad spend may raise customer acquisition and lifetime value, justifying the cost, but risks include poor ROI, cash-flow pressure and possible need to cut other functions.
- Cross-functional implications: operations may need to raise capacity utilisation if campaigns succeed; HR may need to recruit or train staff; finance must model cash-flow and ROI scenarios to set acceptable spend limits.
- Short term versus long term: short-term cost control protects margins and liquidity, long-term investment can build market share and pricing power; the business must balance timing and risk tolerance.
- Measurement and control: propose SMART metrics, A/B testing of campaigns, agreed review points, and a contingency to pause spend if key performance indicators are not met.
- Equity of trade offs: when aligned metrics show acceptable payback or customer lifetime value, limited and monitored ad investment is justified; otherwise finance-led restraint is appropriate.
- Judgement example: recommend a phased, measurable marketing pilot funded by a small dedicated marketing budget or short-term finance, with clear ROI targets and monthly reviews, so marketing and finance share responsibility and risk.

Setting Functional Objectives: Marketing, Operations, Finance, HR - Worksheets, Questions and Revision

Related topics

BUS.AL30 Setting Functional Objectives: Marketing, Operations, Finance, HR

Question 1

Question 2

Question 3

Question 4

Question 5

Question 6

Question 7

Question 8

Question 9

Question 10

Question 11

Mark your answers

Question 1

Question 2

Question 3

Question 4

Question 5

Question 6

Question 7

Question 8

Question 9

Question 10

Question 11