173-OCR_F297_June_2011_Mock_Paper_2 - 0.7 700,000 limited...

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OCR F297 June 2011 Mock Paper 2 BPL have the “possibility of purchasing a 25 hectare parcel of land which adjoins the northern boundary of the park” (lines 48-49). Data available on the day of the exam: The land can be put directly into use for agricultural purposes with little additional investment. The additional cost of setting up the land for Shooting is estimated as £20,000 Off-roading is estimated as £60,000 Option Probability Estimated return Buy land: agricultural use very successful 0.6 £75,000 limited success 0.4 £62,500 Buy land: use for shooting very successful 0.8 £600,000 limited success 0.2 £400,000 Buy land: use for off-roading very successful
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Unformatted text preview: 0.7 700,000 limited success 0.3 500,000 1 a) Using decision tree analysis, calculate the EMV for the three options in the table. [13] b) Discuss the extent to which decision tree analysis could be helpful guide to BPL in determining whether to buy the land and apply for planning permission. [18] 2. Evaluate the impact of BPLs business culture on its performance as a business. [18] 3. Discuss the extent to which the concepts of business ethics and corporate social responsibility are relevant to BPLs operations. [18] 4. Recommend a marketing strategy to address Wilhelms objective of reversing the decline in revenue and net profit margin. [23]...
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