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Question 1

HLPaper 3

LuminaCare

Resource 1 – Company profile and financial context LuminaCare is a Ghana-based, for-profit social enterprise that manufactures solar-powered medical devices for rural clinics and maternal health centers across Sub-Saharan Africa. Its flagship product is a solar fetal heart monitor, which allows midwives to detect complications during pregnancy without relying on grid electricity. The company raised seed capital from impact investors but has now reached an inflection point: demand has grown by 300%, and LuminaCare must decide whether to pursue a $2.5M Series A equity round or take on $1.2M in concessional debt from a development bank.

Resource 2 – CFO’s internal memo (Finance)

“Our burn rate is steady, but we’ve reached our credit limit with suppliers. We operate on 90-day payment terms with clinics, so cash flow is always tight. Series A equity gives us the scale to meet demand and build a second facility—but would dilute founder control and introduce board-level oversight. The concessional loan is low-interest and non-dilutive but comes with covenants: quarterly EBITDA targets, strict capex limits, and donor-style reporting. Any miss could trigger loan restructuring or early repayment.”

Resource 3 – HR performance dashboard (Q1–Q2 2025)

Metric	Value
Staff turnover (last 6 months)	22%
Time to fill technical roles	49 days (↑ 24%)
% of roles with formal job descriptions	58%
Managerial span of control	Avg. 12 direct reports
Avg. team engagement score	67/100 (↓ from 78)
The head of HR notes that burnout and unclear career paths are leading to attrition, especially among product engineers and field deployment staff.

Resource 4 – Marketing team proposal

“Clinics love our mission—but most have no idea who we are until we show up at trade shows. We need to invest in inbound marketing, including a multilingual website, CRM tools, and a referral rewards program for midwives. More crucially, we’re perceived as a donor-funded nonprofit, not a serious tech company. To attract hospital procurement officers and larger buyers, we must reposition the brand to emphasize product quality, not just affordability and ethics.”

Resource 5 – Email thread: CEO to CFO and Marketing Lead

Resource 6 – Feedback from key field partners

“We rely on LuminaCare’s devices, but their response time for repairs has worsened.” “Sometimes we get different pricing from different reps. There’s no standard process.” “I love the mission—but our procurement officer wants a brand that feels serious. A logo change isn’t enough.”

1.

With reference to Resource 3, describe one HR issue that may be impacting LuminaCare’s ability to scale sustainably.

[2]

2.

Explain one financial challenge and one marketing challenge LuminaCare may face if it accepts the concessional loan.

[6]

3.

Using all the resources provided and your knowledge of business management tools and theories, recommend a possible plan of action for LuminaCare over the next five years.

[17]

Question 2

SLPaper 2

VerdeLeaf

VerdeLeaf is a worker co-operative that produces compostable packaging for small food businesses. All employees are members who share in profits and help make decisions. As the business grew, VerdeLeaf introduced a more formal functional organisational structure, which has created friction between departments.

The business’s original objective was to remain local and values-driven, but it has recently started supplying national chains. While some members support this shift, others worry it goes against VerdeLeaf’s founding purpose. Recent feedback suggests rising demotivation in the production team, especially due to poor communication across departments and inconsistent involvement in decision-making.

The finance team has provided partial data for Q1 2024 and tasked a trainee to complete the statement of profit or loss.

Table 1: Financial data for VerdeLeaf – Q1 2024

Item	Amount ($)
Units sold	4,000
Selling price per unit	6.50
Variable cost per unit	2.10
Salaries (production + sales)	38,000
Marketing and promotion	14,000
Office rent and overheads	16,000
Tax rate	25%
Dividends paid to members	12,000

Figure 1: Statement of profit or loss (partially completed)

VerdeLeaf Statement of profit or loss
for the quarter ended 31 March 2024

Item	$
Sales revenue	__________
Cost of sales	__________
Gross profit	__________
Expenses:
- Salaries	(38,000)
- Marketing and promotion	(14,000)
- Office rent and overheads	(16,000)
Profit before tax	__________
Tax (25%)	__________
Profit for period	__________
Dividends	(12,000)
Retained profit	__________

1.

Outline one challenge VerdeLeaf may face as it grows from a local co-operative to a national supplier.

[2]

2.

Identify one external stakeholder and who may be interested in VerdeLeaf’s current situation.

[2]

3.

Using the data in Table 1, calculate the blanks in the profit and loss account shown in Figure 1. Show all your working.

[2]

4.

Explain what the profit and loss account suggests about VerdeLeaf’s cost and revenue structure.

[2]

5.

Suggest one way VerdeLeaf could improve internal communication to support motivation among staff.

[2]

Question 3

HLPaper 2

SkyGen Ltd.

SkyGen Ltd. is a software company that previously operated using a traditional hierarchical structure with centralized decision-making. After losing several talented developers, the company began restructuring project teams and moving toward a flatter matrix system.

SkyGen has also updated its performance appraisal process and begun introducing self-managed development plans. The HR director is piloting new methods for evaluating staff performance while linking role enrichment to innovation output.

Table 1. Statement of Financial Position: SkyGen Ltd. (as at 31 December 2023) (All figures in $m)

Description	$m
Property, plant and equipment	1,800
Accumulated depreciation	(600)
Non-current assets	1,200
Cash	300
Debtors	450
Stock	250
Current assets	1,000
Total assets	2,200
Trade creditors	200
Short-term loans	200
Current liabilities	400
Long-term borrowings	300
Total liabilities	700
Net assets	1,500
Retained earnings	1,500
Total equity	1,500

Additional information:

The PP&E figure includes $900m of specialized hardware expected to last 6 years.
In 2023, that equipment was used to produce 15,000 units out of an expected 90,000-unit lifetime.
Annual sales = $3,600m, of which 50% are credit sales.
SkyGen previously used top-down summative appraisals but now trials peer-led feedback and project-based self-evaluations.

1.

Calculate units-of-production depreciation for the year

[2]

2.

Calculate SkyGen Ltd.’s debtor days.

[2]

3.

Distinguish between summative and self-appraisal, using SkyGen Ltd. as context.

[2]

4.

Explain how job enrichment and delayering might support SkyGen Ltd.’s move to a matrix structure.

[2]

5.

Identify one limitation of bureaucracy in SkyGen’s previous structure

[2]

Question 4

HLPaper 3

SolvoHealth

Resource 1 – Business model and service offering SolvoHealth is a rapidly growing mobile health company based in Vietnam. It operates a network of telehealth pods—solar-powered kiosks placed in rural communities that allow patients to consult doctors remotely, order basic diagnostics, and schedule medicine delivery. Each pod includes a screen, smart diagnostic tools, and a local “health navigator” who guides users. SolvoHealth employs: 40 health navigators (frontline staff) 15 remote doctors (contracted) 30 staff at its operations HQ in Ho Chi Minh City (marketing, product, supply chain, HR) SolvoHealth positions itself as affordable, hyper-local, and technology-enabled. The leadership team now plans to launch 60 pods in Indonesia and Bangladesh over the next 18 months.

Resource 2 – Internal HR report “Navigator turnover remains high at 28% annually. Interviews cite poor training, emotional fatigue, and a disconnect between field roles and central ops decisions. Navigators receive basic onboarding but no career pathway or local adaptation in training. They also report being treated more as hardware support than as care professionals. Headquarters recently introduced a CRM-linked performance bonus system based on call completion and upsell conversions—but this has increased pressure on already fatigued staff.”

Resource 3 – Weekly Ops Brief (March 2025)

Metric	Vietnam (live)	Indonesia (pilot)
Avg. pod uptime	94%	71%
Avg. medicine delivery time	26 hours	61 hours
Navigator-reported escalations	9.2/week	18.4/week
Inventory out-of-stock events	3.1/week	7.5/week

Visual suggestion: This operations table can be converted into a bar chart or dashboard screenshot to test interpretation skills.

Resource 4 – Brand perception audit (external) In Vietnam, SolvoHealth scores high for accessibility and usefulness, but low for empathy and personalisation. Many patients feel “talked to” by doctors, not “heard.” In Indonesia (pilot), users were confused by medical terms and unable to complete video sessions. 47% believed the navigator was “just a receptionist.” A competitor, SehatNow, offers similar services but invests heavily in navigator-patient relationship-building and community health workshops to build trust.

Resource 5 - Email from Head of Marketing to CEO

Resource 6 – Slack thread @Linh (HR): “One navigator resigned mid-shift—said she felt like a vending machine operator.” @Dara (Marketing): “How are we still pushing bonuses on upsells when trust is crumbling?” @Tung (Ops): “I’ll review the KPIs. But we can’t rebuild loyalty with posters.” @Dara: “Maybe not. But we can’t scale a service that feels robotic either.” *Note Slack is an internal team communications tool

1.

With reference to Resource 2, describe one HR issue that may impact SolvoHealth’s service performance.

[2]

2.

Explain one marketing challenge and one operations challenge SolvoHealth may face as it expands across Indonesia and Bangladesh.

[6]

3.

Using all the resources provided and your knowledge of business management tools and theories, recommend a possible plan of action for SolvoHealth over the next five years.

[17]

Question 5

HLPaper 3

Global Solar Solutions (GSS)

Resource 1 – Background of the social enterprise Three years ago, electrical engineer and entrepreneur Nadira Khan founded Global Solar Solutions (GSS) as a social enterprise in Morocco. Her goal was to provide affordable, modular solar lighting kits to off-grid rural communities. These kits, manufactured at GSS’s urban facility, include rechargeable LED lights and mobile charging ports. GSS reinvests 100% of profits into R&D and local hiring. GSS operates in partnership with local NGOs and community councils. Its workforce includes 40 technicians and 20 community trainers who educate households about solar usage and maintenance. GSS applies lean production, Kaizen, and maintains a strong internal emphasis on quality control and after-sales support.

Resource 2 – Recent internal report on workforce issues "High staff turnover and trainer burnout have increased over the past 12 months. Trainers, who work in remote villages for weeks at a time, report fatigue and a lack of recognition. Some have requested additional health support and clearer promotion opportunities." The HR department suggested non-financial incentives such as increased job rotation and monthly feedback sessions but reported mixed engagement.

Resource 3 – Email from the Director of Rural Development (DRD) To: nadira.khan@GSS.org Subject: Expansion proposal Dear Ms. Khan, We are impressed by GSS’s impact. The Ministry would like to propose a contract to expand the solar program to 80,000 homes across North and West Africa over five years. Your team would need to train local technicians and build capacity in three new countries. Please note, the contract requires local sourcing of at least 60% of parts. We will require an initial trial rollout in 5,000 homes and evidence of social impact. Regards, Director, DRD

Resource 4 – Extract from a marketing audit summary GSS currently relies on word-of-mouth and NGO referrals. Its brand is associated with trust and affordability. However, a 2024 brand perception survey in new markets revealed low awareness and concerns about product durability compared to larger multinationals such as SolarX. GSS’s marketing team is small (3 staff) and has no formal digital strategy. There is also no localized messaging for francophone West African markets.

Resource 5 – Operations update from the Head of Production Our current facility is operating at 92% capacity. To meet a major scale-up, we would need to either expand production or outsource subassembly. We have identified two regional partners with experience in sustainable component manufacturing. However, we are concerned about quality assurance if we lose full process control.

Resource 6 – Excerpt from a local newspaper article “Access to solar power has transformed daily life in remote villages. Children now study at night, families charge phones to access mobile banking, and kerosene usage has dropped. However, NGOs report that replacement parts for some GSS kits have been slow to arrive, creating frustrations in isolated regions.”

1.

With reference to business management motivation theory, describe one need that GSS satisfies for rural households requiring solar lighting.

[2]

2.

Explain one human resource challenge and one operations challenge GSS may face if it accepts the DRD expansion contract.

[6]

3.

Using all the resources provided and your knowledge of business management tools and theories, recommend a possible plan of action for GSS over the next five years.

[17]

Question 6

SLPaper 2

GlowBar

GlowBar is a newly opened skincare business run by two friends. The business offers handmade soaps and facial products using natural ingredients. Before launching, the owners conducted primary market research by interviewing potential customers at local health food stores.

GlowBar’s co-founders use a democratic leadership style, encouraging their small team to participate in decisions. To keep staff motivated, they offer flexible working hours and recognition for good performance.

To finance the launch, the owners used their own savings and borrowed money from a microfinance provider.

Table 1 shows GlowBar’s financial data for its first month.

Table 1: Financial data for GlowBar (Month 1)

Item	Amount ($)
Fixed costs	4,000
Variable costs	3,000
Revenue	12,000

1.

State two features of a democratic leadership style.

[2]

2.

Identify two non-financial methods of motivation used at GlowBar.

[2]

3.

Calculate GlowBar’s profit for the first month.
Show all your working.

[2]

4.

Identify two elements of the marketing mix that GlowBar used when launching its products.

[2]

5.

State one primary and one external source of finance mentioned in the case.

[2]

Question 7

HLPaper 3

FreshFusion Ltd

Resource 1 - Industry Article “FreshFusion Tackles High Turnover in the Health Food Sector”

Resource 2 - Balance Sheet (2023) FreshFusion Ltd. Balance Sheet - As of December 31, 2023

Item	Amount
Cash	£500,000
Inventory	£250,000
Property, Plant & Equipment	£3,000,000
Other Current Assets	£100,000
Total Assets	£3,850,000

Item	Amount
Accounts Payable	£1,000,000
Accrued Salaries	£200,000
Long-Term Debt	£2,500,000
Shareholders’ Equity	£1,150,000
Total Liabilities & Equity	£3,850,000

FreshFusion’s equity has steadily increased, thanks to its brand appeal and expanding customer base. However, accrued salary expenses reveal the strain on payroll, and accounts payable remains high, indicating potential cash flow challenges in meeting obligations.

Resource 3 - Excerpt from Employee Satisfaction Survey (2023) Summary of Employee Feedback: Positive Comments: Employees appreciate FreshFusion’s commitment to sustainability, especially through using local suppliers and eco-friendly packaging. They feel aligned with the company’s values and are proud of their work. Negative Comments: Concerns were raised about long hours, inconsistent scheduling, and lack of growth opportunities. Employees express a need for career progression and better work-life balance.

Resource 4 - Social Media Post (Instagram) @FreshFusionUK:

Resource 5 - Market Report Excerpt "Health Food Retailers Face Staffing Struggles in Competitive Market" Health food retail is a high-turnover sector, with 35% of employees leaving within their first year. Companies like FreshFusion are encouraged to adopt new employee-centric strategies, such as internal promotions, career development programs, and employee wellness initiatives, to remain competitive. The report highlights that companies with lower turnover rates have successfully implemented flexible scheduling and robust training programs to build a committed workforce.

1.

Using an appropriate business management theory, describe a human need that FreshFusion fulfills for its employees.

[2]

2.

Explain two challenges FreshFusion faces in managing its human resources effectively. Support your answer using information from the case study and resources provided.

[6]

3.

Using all the resources provided and your knowledge of business management, recommend a strategic plan to improve employee retention at FreshFusion over the next three years. Your response should consider employee development, scheduling flexibility, wellness initiatives, and compensation.

[17]

Question 8

HLPaper 3

UrbanEats Ltd.

Resource 1 - Excerpt from Company Website

Resource 2 - Balance Sheet (2023) UrbanEats Ltd. Balance Sheet as of December 31, 2023 Assets Current Assets

Item	Amount
Cash	£1,200,000
Inventory	£600,000
Accounts Receivable	£800,000
Total Current Assets	£2,600,000

Non-Current Assets

Item	Amount
Property, Plant & Equipment	£3,000,000
Intangible Assets	£200,000
Total Non-Current Assets	£3,200,000

Liabilities Current Liabilities

Item	Amount
Accounts Payable	£700,000
Short-term Debt	£300,000
Total Current Liabilities	£1,000,000

Non-Current Liabilities

Item	Amount
Long-term Debt	£1,500,000
Total Non-Current Liabilities	£1,500,000

Total Assets | £5,800,000 | Total Liabilities | £2,500,000 | Equity

Item	Amount
Shareholder Equity	£3,300,000
Total Liabilities & Equity	£5,800,000

Despite recent revenue growth, UrbanEats’ increasing liabilities raise concerns about long-term financial sustainability.

Resource 3 - Email from CFO to CEO

Resource 4 - Interview Excerpt with the CEO In a recent interview with Finance Today, CEO Maya Simmons shared her vision for UrbanEats. “We are excited about our growth but know we must be strategic to maintain profitability. Our commitment to sustainability and affordability is essential, but we also recognize the importance of financial health. Exploring franchising is one option, though I want to ensure it aligns with our brand values.”

Resource 5 - Social Media Post by UrbanEats (Instagram)

1.

Identify a human need that UrbanEats Ltd. fulfills through its mission of providing plant-based and sustainable meals. Explain how UrbanEats addresses this need through its products and initiatives.

[2]

2.

Discuss two significant challenges UrbanEats Ltd. faces in maintaining profitability and competitive advantage in the fast-casual dining sector. Use relevant resources from the case study to support your answer.

[6]

3.

Based on the resources provided and your knowledge of business management principles, outline a strategic plan for UrbanEats Ltd. to enhance its financial performance and market positioning over the next five years. Your plan should include recommendations on product differentiation, digital marketing strategies, consumer engagement initiatives, and adaptability to market trends.

[17]

Question 9

HLPaper 3

Alpha Robotics – Optimizing HR and Operations for Growth

Resource 1 – News Article Alpha Robotics Struggles with HR and Operational Efficiency Alpha Robotics, a technology firm specializing in AI-powered industrial robots, is experiencing rapid expansion as demand for automation increases globally. The company was founded in 2015 and has since grown to 2,500 employees across four locations: the United States, Germany, Japan, and India. Key Challenges: (1) HR management issues – Employees complain about unclear leadership, poor communication, and lack of motivation due to a highly hierarchical structure. (2) Production inefficiencies – The company’s batch production method is increasing lead times and reducing product quality. (3) Location challenges – With rising costs in the US and Germany, Alpha Robotics must decide whether to expand in India (lower labor costs) or develop a new R&D facility in Singapore. CEO Daniel Carter is considering the following strategic changes: (1) Restructuring the organization to improve communication and motivation. (2) Shifting to lean production and just-in-time (JIT) inventory management. (3) Relocating part of production to India or Singapore while maintaining efficiency.

Resource 2 – Internal HR Survey Results

Issue	Percentage of Employees Concerned
Lack of leadership clarity	42%
Poor communication from managers	38%
Low motivation and workplace morale	45%
Limited career advancement	41%

Key Insights: (1) Employees feel disconnected from leadership, affecting productivity. (2) A lack of career growth opportunities is reducing motivation and increasing turnover. (3) Middle management struggles with effective communication due to a rigid hierarchical structure.

Resource 3 – Cost-Benefit Analysis for Production Relocation Alpha Robotics – Cost Analysis for Facility Expansion

Location	Labor Costs per Hour ($)	Setup Costs ($M)	Expected Efficiency Gains
India	12	30	10% increase
Singapore	22	50	18% increase

Key Considerations: (1) India offers lower costs, but efficiency gains are lower compared to Singapore. (2) Singapore provides greater efficiency but has significantly higher setup costs.

1.

Using an appropriate business management theory, describe an HR challenge that Alpha Robotics is facing.

[2]

2.

Explain two operational challenges Alpha Robotics faces in improving production efficiency.

[6]

3.

Using all the resources provided and your knowledge of business management, recommend a possible plan of action to improve both HR and operations management at Alpha Robotics.

[17]

Question 10

SLPaper 2

PureGlow Ltd (PG)

PureGlow Ltd (PG) is a cosmetics company founded in France, specializing in natural skincare products. Due to steady success domestically, PG is planning significant international expansion into the markets of the United States and Japan, becoming a multinational company (MNC).

PG has historically relied on a centralized communication approach. However, the recent rapid growth and evolution of the company have caused communication breakdowns between senior management and regional teams, leading to employee frustration and signs of demotivation.

Management acknowledges that maintaining employee motivation is essential for successful expansion. They also recognize that detailed market research in the new markets is crucial to inform their product offerings and promotional strategies effectively.

1.

Define the term ‘market research’.

[2]

2.

Outline two advantages for PG of becoming a multinational company (MNC).

[4]

3.

Explain two ways poor communication might demotivate PG’s employees during expansion.

[4]

4.

Explain two reasons why PG should conduct market research before entering new markets.

[4]

5.

Analyze whether PG should decentralize its communication approach to support international growth, considering employee motivation and effective market research.

[10]

2.4 Motivation and demotivation Questionbank