UNIVERSITY OF CAMBRIDGE INTERNATIONAL EXAMINATIONS General Certificate of Education Advanced Level
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9707/32
May/June 2012 3 hours
BUSINESS STUDIES Paper 3 CASE STUDY
* 1 2 4 3 0 0 6 3 4 8 *
Additional Materials:
Answer Booklet/Paper
READ THESE INSTRUCTIONS FIRST If you have been given an Answer Booklet, follow the instructions on the front cover of the Booklet. Write your Centre number, candidate number and name on all the work you hand in. Write in dark blue or black pen. You may use a soft pencil for any diagrams, graph or rough working. Do not use staples, paper clips, highlighters, glue or correction fluid. Section A Answer all questions. Section B Answer one question. The businesses described in this question paper are entirely fictitious. You are advised to spend 40 minutes on Section B. At the end of the examination, fasten all your work securely together. The number of marks is given in brackets [ ] at the end of each question or part question.
This document consists of 6 printed pages and 2 blank pages.
DC (RCL (JDA)) 48734/3 © UCLES 2012
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2 Global Conglomerate Company (GCC) Global Conglomerate Company (GCC) is one of Asia’s fastest growing conglomerates. 30 years ago the Hussein brothers started selling used motor cars and they quickly acquired an existing city centre car retailer. This was followed by many other mergers and takeovers. GCC is now a widely diversified conglomerate with subsidiary businesses in the steel, car, transport, publishing, construction, education and food processing industries. GCC is a large public limited company and the Hussein brothers now own less than 50% of the total shares. However, two of the brothers are still on the Board of Directors. Shareholders unhappy with returns Last month’s Annual General Meeting was not an easy one for the directors. The Board’s strategy is ‘investing for long term growth’ to achieve the aim of ‘long term shareholder