MGTA03 – Winter 2010
March 5th Mid-Term Test – ModelAnswers
Question 1 5 marks
Part 1. Identify the degree of competition that exists in the Canadian banking industry.
Answer: The Canadian banking industry is an Oligopoly 1 mark
Part 2 You must explain and justify your response by listing four features of this degree of
Answer Award up to 4 marks, 1 mark for each relevant characteristic
Because the Canadian Banking industry has the following characterisitics:
1. Small number of suppliers dominate the market (6 main banks = 95% market
2. Each bank is large (100s of branches, thousands of employees, $ billions of
3. There are barriers to entry: large capital needs
economies of scale
4. There are barriers to exit (once you are up and running, it's hard to close down
5. They watch each other's actions closely, and quickly match each others'
prices/rates Question 2 6 marks
TheAmerican Psychologist David McLelland developed the "needs motivation" theory.
McLelland's theory suggests that every person possesses one of three basic motivational needs. According
to Mclelland's theory, depending on which of these motivational needs each of us possess, we are likely to
pursue a kind of career or work environment..
a) Identify and briefly explain (in one or two sentences) each of the three basic human motivators
identified by Mclelland,
David McClelland's 3 motivational needs
Need for power (n-pow)
These people are 'authority motivated'. They need to be influential, and to make an
impact. Produces a need to lead and for their ideas to prevail. These people need personal
status and prestige.
Need for affiliation (n-affil)
These people need friendly relationships and are motivated toward interaction with other
people. Produces a need to be liked and held in popular regard. These people are team
Need for achievement (n-ach)
These people seek achievement, and attainment of realistic but challenging goals.
Produces a strong need for feedback as to achievement and progress, and for a sense of
b) For each of the three motivational needs, suggest an example of a job or career that might be pursued
by someone people who possess each type of motivational need.
Need for power (n-pow): job or career in a command and control environment, for
example the military, or the police. Possibly a large corporation, with many clearly
defined layers of hierarchy
Need for affiliation (n-affil): job or career that involves working with people and
helping them. Likely or suitable jobs for people with a high n-Aff would be: teacher,
social worker, doctor or nurse, minister, etc.
Need for achievement (n-ach): Any job that involves lots of individual challenges, and
requires goal setting. Most likely a person with a high n-Ach would become self-
employed, or start their own business as an entrepreneur. Question 3 4 marks
David is a Master Baker, with over 20 years experience as Bakery Manager for a