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Principles &Amp; Practice Of Management(Buss 110) Question Paper

Principles &Amp; Practice Of Management(Buss 110) 

Course:Business Administration

Institution: Kenya Methodist University question papers

Exam Year:2010



TIME : 2 HOURS
INSTRUCTIONS Answer Question ONE and any Other TWO Questions

Question 1
Timbuk 2 There is a job that few have the stamina or agility to do, especially in cities with a lot of hills like San Francisco. However, bicycle messengers perform an important service, hauling bulky loads swiftly from location to location. Their bags have to be tough, water proof light-weight, and functional-and it''s nice if they look great too! Rob Honeycutt knows well what bike knapsacks need to be- he was a messenger once himself. Today, his company, Timbuk2 Designs, manufactures bags that appeal to the "hip, young, wacky nuts on bikes."
Honeycutt started the company in 1989 and its annual revenues are around $3.5 million. The company has grown in spurts-for instance, one year it was 10 percent and Another year it was 70 percent. Such erratic growth has created definite management challenges for Honeycutt. But one thing that hasn''t been a challenge is the company’s commitment to making the best possible products.

Many bike messenger services claim that Timbuk 2 bags are the best and most popular. The company offers what none of its competitors do: a three-panel constructed 13 colours, giving them 2,197 possible color combinations. And Timbuk 2’s bag cost no more than the mass-produced ones. Honeycutt wanted to do what Toyota Motor Corporation did with cars – mass customization or make cars to customers’ orders. He thought it might work because manufacturing bags is much simpler than making cars. However, things didn’t quite work out until workers began experimenting with something Honeycutt had seen at a trade show demonstration. That something was the Toyota Sewing System, which calls for each sewing operator to move down a row of task-specific sewing machines instead of performing a single task and passing parts to the next sewing operator. This approach cuts labor costs because no floor assistants are needed to carry partially completed inventory from one machine to the next. A so, Timbuk2 has been able to keep its inventory costs low because it buys only a week''s worth of material and ships out completed bags daily. In addition, it has discovered that mass customization cuts waste because mistakes are caught along the way.

Work begins early-6:00 A.M.-at Timbuk2. A dozen women, most of them Chinese immigrants sew colorful strips of canvas together and add snaps and shoulder straps. By the end of each workweek, the workers will have finished a total of 400 bags. The company pays its employees more than other apparel makers and offers full medical benefits. When the company needed financing, it turned to Silicon Valley Community ventures (SVCV), a funding source with a unique twist. SVCV invested money in Timbuk 2 with the understanding that it would pay a living wage of at least $11 an hour and develop a pay incentive program that rewarded employees for learning new skills. This investment in employees seems to be paying off.

Although there are many things the company is doing right, Timbuk 2 continues to refine its system, relying heavily on employee’s suggestions and ideas. In 1993 it took 144 minutes (almost 2½ hours) to make one bag. Today, using employees’ suggestions and automated machines, it has reduced that time to 12 minutes. Labor costs are about 16 percent of total cost and the goal is whittling that down to 12 percent. In early 2000, Honeycutt decided to create an online buying process. Timbuk 2 hired 15 people to create a Website and to add to production. The Website turned out to be a good decision, especially as the economy took a downturn. It started generating sales in October 2000 and today brings in almost half of Timbuk 2’s revenues.

a) Define the term management in relation to the role of Rob in Timbuk 2 (5marks)
b) Describe Timbuk 2 as a system (10marks)
c) What characteristics and management practices does this company exhibit that might be important for managers in the twenty – first century (10marks)
d) With specific examples, explain five ways in which Timbuk has fulfilled social responsibility (5marks)

Question 2
a) Fredric Taylor is regarded as the father of scientific management .Discuss the fundamental principles of management Taylor. (10 marks)
b) Staffing involves engaging new people in the organization promoting them and making sure they work for the organization .Briefly explains the functions staffing. (8marks)

Question 3
a) Using examples of your own choice, explain the various benefits that an organization can leap from motivating it workforce (8 marks)

b) All manager perform the functions but with different emphasis because of their positions in the company. In most companies management group has several levels of managers whose titles depend on the organization and the job they perform. In line with this, discuss the management levels. Clearly outlining the functions of each level. (15 marks)

Question 4
a) Explain how the manager can use PESTLE analysis to enhance the achievement of the organizational goals (12marks)
b) How can the use of TECHNOLOGY aid leadership and management in execution of their duties and obligations (8 marks)

Question 5
a) “Planning is not a substitute for executive judgment but merely an aid to it.” Highlight the limitations to effective planning that most managers face today. (10 marks)
b) “A manger is hired to make decisions in an organization”. The success of contemporary organization depends on the quality of decisions made by the manger running the organization, which must constantly plan and ensure that the organization is moving in the right direction. In the light of this statement, briefly explain the various types of decisions made by managers. (10marks)






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