Internal operations of a large business

Practice

Recall it first, then use it — testing yourself builds the memory, where rereading the notes above only feels easier.

Recall and application shuffled together — you have to work out what each item wants before you can answer it, which is the part the exam actually tests. Both kinds feed the same spacing schedule, so anything you miss comes back sooner.

Say the answer out loud before flipping — that attempt is where the learning happens, even when you get it wrong.

Exam-style only. Instant feedback, shuffled each attempt, best score saved on this device.

What actually comes up

One task, four parts (a)–(d), every year, built around a real (or your own studied) large business. Part (a) is a shorter one- or two-part warm-up on a financial or operational idea; parts (b) and (d) run the full three-step ladder — advantage, disadvantage-plus-impact, then justify against two named criteria; part (c) forces a SWITCH to a second large business and always covers financial reports. A Māori business concept (rangatiratanga or pūtake) is defined in a box most years and must be applied to the scenario, not just recited.

Across 4 years

The pattern — what to prepare

The 2025 paper ↗ Marking schedule ↗

Part (a) — Policies and procedures

Kōwhai Grove introduced strict policies and procedures so its crop-monitoring drones would not capture or keep footage of neighbouring properties.

• a(i) Using an example, explain the difference between policies and procedures. Achieved
• a(ii) Using an example, explain why it is important to implement policies and procedures, and how this could positively impact a business. Merit

Part (b) — Leadership styles

Recruiting and retaining experienced seasonal workers is difficult; how they are treated and led affects whether they return next season.

• b(i) Identify a leadership style and explain why it could be an advantage to a business. Achieved
• b(ii) Why could this leadership style be a disadvantage to a business, and how might this have an impact on employee motivation? Merit
• b(iii) Referring to brand reputation and maintaining standards, justify whether the leadership style identified would be more appropriate for the business than another leadership style. Excellence

Part (c) — Financial reports (switch business)

Investing in drone technology requires financial information — budgets, variance analysis, or monthly revenue and cost reports — to guide the decision. Students must name a SECOND large business, not Kōwhai Grove.

• c(i) Select a financial report from the list above and explain why it will aid managers in their decision-making. Achieved
• c(ii) When investing in technology, explain what might cause a business to experience an unfavourable variance and how a business could correct this to ensure that it remains profitable. Merit

Part (d) — Under-used capacity and efficiency

Kōwhai Grove is considering converting a vacant onsite building into a retail store and information centre.

• d(i) Using a specific example, explain an advantage of using parts of a business that are under-used. Achieved
• d(ii) Explain why operating at capacity could be a disadvantage and how this could negatively impact the business. Merit
• d(iii) Referring to competitiveness and profits, justify the importance of efficiency for the long-term financial viability of a business. Excellence

The 2024 paper ↗ Marking schedule ↗

Part (a) — Economies of scale

Rising fuel prices have pushed up freight charges on CeeGee's imported suits, in an already competitive, declining-sales retail market.

• a(i) Explain why an increase in freight charges will impact the economies of scale of a business. Achieved
• a(ii) Explain how a business may respond to increases in freight charges while remaining profitable. Merit

Part (b) — Production process

Customers want more customised suits than CeeGee's currently offers; management is considering a local manufacturer using batch and job production with a design app.

• b(i) Identify a production process being used, and explain why it could be an advantage for a business. Achieved
• b(ii) Why could this production process be a disadvantage for a business, and how might this have a negative impact on employees? Merit
• b(iii) With reference to brand loyalty and economic sustainability, justify, with TWO reasons, why this production process is more appropriate than another production process for a business. Excellence

Part (c) — Financial reports and rangatiratanga (switch business)

The owner uses a monthly revenue and cost report to make strategic decisions. The paper defines rangatiratanga in full and asks it to be applied. A SECOND large business must be named, not CeeGee's.

• c(i) Why is preparing monthly revenue and cost reports an advantage to the business in a competitive market? Achieved
• c(ii) Using a part of the definition of rangatiratanga, explain how management may choose to change the strategic direction of the business, after analysing its monthly revenue and cost reports. Merit

Part (d) — Shamrock structure

CeeGee's runs a shamrock structure: permanent in-store staff, outsourced finance/HR/marketing, and part-time weekend and peak-time staff.

• d(i) Explain why using a shamrock organisational structure could be an advantage to a business. Achieved
• d(ii) Explain why using a shamrock organisational structure could be a disadvantage to a business, and how it could impact the ability of a business to maintain high levels of customer service. Merit
• d(iii) Justify, with TWO reasons, whether using a shamrock organisational structure would be more effective than another organisational structure. Excellence

The 2022 paper ↗ Marking schedule ↗

Part (a) — A leadership skill

WLB Furniture makes convertible, stowable home-office desks; demand surged unpredictably due to the COVID-19 pandemic, and managers are struggling with the resulting uncertainty.

• a(i) State a skill that is important for a business leader or manager to have. Achieved
• a(ii) Referring to the skill identified in (i), explain why leaders or managers should demonstrate this skill. Achieved
• a(iii) How would this leadership skill improve the ability of the business to operate in times of uncertainty? Merit

Part (b) — Flat organisational structure

WLB Furniture uses a flat organisational structure with a short chain of command and a wide span of control.

• b(i) Explain why using a flat organisational structure could be an advantage to the business. Achieved
• b(ii) Explain why using a flat organisational structure could be a disadvantage to the business, and how it could restrict the business from operating effectively. Merit
• b(iii) Justify, with TWO reasons, whether using a flat organisational structure would be better than another organisational structure for dealing with uncertainty. Excellence

Part (c) — Capacity issues and stakeholders

Unpredictable demand for the workstation desk is creating stock-level problems in the warehouse, affecting suppliers, employees, customers and creditors.

• c(i) Select a stakeholder and explain why capacity issues with the business can create problems for that stakeholder. Achieved
• c(ii) How will capacity issues with the business impact on the stakeholder's relationship with that business? Merit

Part (d) — Budgets (switch business)

Rising prices and ongoing capacity issues mean businesses need budget information to aid decision-making. A SECOND large business must be named, not WLB Furniture.

• d(i) Explain why using a budget aids this business in its short-term decision-making. Achieved
• d(ii) Explain why budgets can be of limited use, and how this limitation could create long-term problems for the business. Merit
• d(iii) Justify, with TWO reasons, whether preparing a budget will help the business achieve its objectives. Excellence

The 2023 paper ↗ Marking schedule ↗

Part (a) — Variance analysis

Management identified unfavourable variances: fuel costs

• a(i) Explain why using variance analysis could be an advantage to the business. Achieved

Part (b) — Leadership styles and rangatiratanga

Staff model a "hands-off / laissez-faire" leadership style so students, on their wilderness experience, take ownership and practise being effective future leaders (rangatira). Rangatiratanga is defined in full.

• b(i) Explain why it might be appropriate for a business to adopt a laissez-faire leadership style to promote the personal growth of future leaders. Achieved
• b(ii) Explain why this type of leadership style might be inappropriate to develop future leaders, and how this could lead to poor decision-making. Merit
• b(iii) Referring to the business and TWO elements of the definition of rangatiratanga, justify whether one type of leadership style would be more effective than another. Excellence

Part (c) — Policies and procedures for health and safety (switch business)

Policies and procedures keep a business running safely and in an orderly manner. A SECOND large business must be named, not Tohunga o waho.

• c(i) Explain ONE policy that your chosen business has in place to maintain the health and safety of employees. Achieved
• c(ii) Explain ONE health and safety procedure that your chosen business has in place to protect customers. How would the business be impacted if this procedure is not followed? Merit

Part (d) — Social responsibility and pūtake

Limited staff supply is pushing Tohunga o waho toward higher staff-to-student ratios, creating tension between growth, staff wellbeing, and its pūtake (reason for being) of providing the best wilderness experience. Pūtake is defined in full.

• d(i) Using a specific example, explain why it is in the best interests of the business to be socially responsible. Achieved
• d(ii) Explain why being socially responsible could be a disadvantage, and how this disadvantage might impact the future of the business. Merit
• d(iii) Justify, with TWO reasons, whether it is important for the business to be both socially responsible and economically sustainable. You should refer to the concept of pūtake in your answer. Excellence

The 2023 variance-analysis figures are transcribed exactly from the resource table; all other scenario details are paraphrased from each paper's own printed background. Grades are read from each part's position in the Achieved/Merit/Excellence ladder the paper itself sets out, not from the (unpublished per-part) marking schedule allocations.

Past exams & resources

⏱ Timed opens the paper and starts a countdown matching the exam length. Official NZQA PDFs. If a link 404s, that year’s paper may sit under a slightly different code: browse the NZQA subject page.