## ZIMBABWE SCHOOL EXAMINATION COUNCIL

General Certificate of Education Advance Level

PAPER 2

JUNE 2014 SESSION                                                                                              3 hours

Time 3 hours

INSTRUCTIONS TO CANDIDATES

• Answer all questions in Section A and any three  in Section B.
• If you use more than one sheet of paper, fasten the sheets together.

INFORMATION TO CANDIDATES

The number of marks is given in brackets

[] at the end of each question or part question.

You are advised to spend not more than 45 minutes on Section A.

The businesses described in this paper are entirely fictitious.

You are reminded of the need for good English and clear presentation in your answers.

Calculators may be used.

### Questions [Page 2 of Paper]

Section A: Data Response [25 Marks]

Agachi Furniture is a business that manufactures classic kitchen furniture and modern bedroom suites for middle income households and local furniture outlets throughout Zimbabwe. It was started by Agatha, a qualified wood designer, after she failed to secure

formal employment in the furniture industry.

Currently, Agachi Furniture has factories in Harare, Mutare and Bulawayo. The business has fifty employees well skilled in their lines of duty. The workers are all committed to producing quality furniture. Quality has become Agachi Furniture’s unique selling point.

As a result of this reputation the market for Agachi Furniture products grew rapidly up to the year 2010. At the end of 2010, the market share stood at 30%. However, in 2011, this optimistic picture began to decline as showin in the table below:

 Year Industry Sales (\$) Agachi Sales (\$) 2011 200 000 50 000 2012 210 000 40 000 2013 215 000 30 000

The decline in sales was a result of changes in market conditions. Consequently, the market share declined and management decided to explore foreign markets in Botswana, South Africa and Swaziland.

(a) Define the term market share as used in the passage. [3]

(b) (i) Calculate Agachi Furniture’s market share for the three years 2011

to 2013. [3]

(ii) Suggest possible reasons for the decline in Agachi Furniture’s market

share. [3]

(c) Explain how Agatha might segment the market for the furniture. [6]

(d) To what extent are foreign markets useful in reviving Agachi Furniture’s

market share? [10]

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