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CASE STUDY-MCGCOMPUTERS

McGComputers was founded in 1986 by Jason McGinley. It is an independent firm specialising in the sale and repair of computers, operating from a premises fronting onto the main street of a large town. Jason had worked a standard five-day week in his previous job, as a qualified engineer, with a transnational computer company. a) What is the meaning of transnational?

[2] b) Identify the type of business organisation being referred to in the text. [1] c) State two reasons why would Jason want to start his own business. Reason 1 Reason 2 [4]

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The new venture forced him to adjust to working long and irregular hours, and to manage with limited financial resources. The change also meant a review of his commitments to health and life plans, and the provision of his home as security. While his formal bookkeeping skills were limited, he maintained details of all customers and their transactions. d) With reference to the text above identify two problems faced by Jason while running his own business. Problem 1

Problem 2 [4] e) Identify two possible sources of finance available to Jason could use start his own business. Source 1

Source 2 [4] Responding to published official forecasts and trade publications, Jason recruited sales people and qualified technicians to serve the client base and expand the product range of the firm. He encouraged the staff to engage with customers and to note their reactions to new ideas and products. His reliance on trust in the staff has been successful in that only one employee has had to be dismissed for theft. f) Identify and explain three factors that Jason should consider when recruiting new sales people to his firm. Factor 1 Explanation

Factor 2 Explanation

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Factor 3 Explanation [6] g) Jason follows a democratic leadership style. Do you think that Jasons leadership style will motivate his employees? Justify your answer.

[6] [27 marks]

Teachers Comments

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