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Transcription of this question: 5.Rox and Inclusive Music (IM)Rox was a music band managed by Michel Mbappe_ The band enjoyed considerable commercialsuccess thanks to Michel’s autocratic leadership style. He personally made all decisions. Rox hadgiven generously to local schools and Other non-profit organizations. The band received manyawards for their acts Of corporate social responsibility. Their last CD “Action Not Words” hadbrought them considerable fame.In June 2010, Michel was asked to help finance the start-up Of a new non-profit music school called”Inclusive Music” (IM). IM’s aim was to support young musicians from low income families. Atfirst, Michel was very enthusiastic and prepared a business plan. Unfortunately, he realized that Roxcould not afford to finance IM fully. External sources Of finance Other than contributions from Roxwould be needed for IM to grow. Until then IM would only have a limited budget for marketing andmarket research.In June 2011, IM opened with the mission statement “Action not words”. TO support its mission, itoffered free lessons and allowed students to borrow musical instruments. Michel asked a popularformer singer, Louis Marsaud, to be the school’s director Louis adopted a laissez-faire leadershipstyle, hoping it would allow creativity among students. Initial student attendance was lower thanexpected and quickly worsened. Within three months, many instruments had gone missing and manystudents were no longer attending music lessons.IMS finances were deteriorating, and Louis could not attract external sources Of finance.Michel took action and organized a concert by Rox to promote IM. He also examined IM’s accountsand discovered a significant liquidity problem. Without consulting anyone, he dismissed Louis.In the music media, Michel received much criticism for dismissing Louis. Journalists argued thatthe two main problems were, IM S vague mission statement and poor marketing. However, Michelaimed to ensure that IM became sustainable in the long term.(a)(b)(c)(d)(e)IC International Baccalaureate Organization, 2013]Define the term corporate social responsibility.Identify two possible causes Of a liquidity problem.Explain how the following may have contributed to IA’S financial problems:(i) its mission statement.(ii) its limi ted marketing budget.Analyse the appropriateness Of Michel’s autocratic leadership style, for therunning Of an organization such as IM.Discuss two possible medium- to long-term external sources Of finance that IMcould use to help solve its financial problems.[2 marks/[2 marks/[3 marks/[3 marks/[6 marks][9 marks]

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