tag:blogger.com,1999:blog-319713712024-03-13T20:14:41.732-07:00Business Studies for Students and other LifeformsA site for students to check on ideas and tips about business, that Mr Walter comes across and may occasionally point out in order to emphasize ideas. It will contain questions, quotes, revision tips, case studies, news and links etc, that will provide a holistic approach while you are with him and beyond...... hopefully! ; )Unknownnoreply@blogger.comBlogger32125tag:blogger.com,1999:blog-31971371.post-30549755731720663282011-06-01T11:44:00.000-07:002011-06-01T11:46:14.653-07:00Reach out Revision GuideREACH OUT<br /><br /><br /><br /><br /><br />IB Revision Booklet for the May 2011 examination<br /><br />Created by Eavan Zora & Andrew Mackenzie<br />Version one<br /><br /><br /><br /><br /><br /><br /><br /><br />Contents Page<br />Pages Content<br />3-4 Key terms & issues to revise<br />5-7 Characters<br />8 Timeline<br />9-10 Swot analysis<br />11-12 Steeple analysis<br />13-31 Topic 1 – intro to org<br />32-44 Topic 2 - HR<br />45-52 Topic 3 – finance<br />53-61 Topic 4 – marketing<br />62-65 Topic 6 – bus strategy<br />66-70 Top tips for paper 1<br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br />Reach Out – Key Terms and Issues to Revise<br /><br />Key Terms Issues to Revise<br /><br />Unethical Business ethics<br />Private sector Autism<br />Social marketing Social marketing<br />Part time Types of business sectors<br />Public sector<br />Public-private partnerships Public-private partnerships<br />Self-employed Working from home (teleworking)<br />Start up businesses Start up businesses<br />Charity Charity<br />Business plan<br />Budget<br />STEEPLE Analysis<br />SWOT Analysis<br />Start up costs<br />Sources of finance Sources of finance<br />Short term loan<br />Community grant<br />Directors<br />Performance related pay Monetary and non monetary rewards<br />Non profit making organization Non profit making organizations<br />Vision statement Vision statement<br />Mission Statement Mission Statement<br />USP<br />Subsidize<br />Surplus (retained profit)<br />Revenue<br />Unqualified therapists<br />Goodwill<br />PR Motivation<br />Informal communication Communication<br />Flexible working patterns Flexible working patterns<br />Training Workforce Planning<br />Workforce Planning Motivation<br />Laissez Faire Leadership Styles<br />Decision making<br />Logo Product portfolio analysis:<br />Ansoff matrix (option 2)<br />Product portfolio<br />Break Even Break Even Analysis<br />Sponsorship Sponsorship<br />Market research Market research<br />CSR CSR<br />Marketing objectives<br />Branding Branding<br />The 3 options<br />Appendices<br /><br /><br />Tasks<br />1. Define all the key terms<br />2. Set up revision notes for all the issues to revise – these should be split into 2 sections (theory and application to case study)<br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br />Characters in Reach Out<br />Laura Chan • Set up an informal social network site for families with children who have autism. (Online support forum)<br />• She set up a blog, describing her daily successes and difficulties with Toby – which received thousands of visits daily.<br />• Her blog became a medium for social networking.<br />• This was too much for her – as she worked as a part time supermarket cashier and was looking after Toby. Then she got a phone call from Neil.<br />• They met and quickly realised they could complement each other<br />• They met and discussed how Laura can become self employed and work from home on a flexible schedule. She could use her knowledge and first-hand experience of families affected by autism.<br />• She was passionate and had many ideas.<br />• Despite the many difficulties they faced as a start-up business, they decided to set up a charity for children with autism called Reach Out.<br />• Both Laura and Neil would be employed part time as joint directors with equal responsibility<br />• Laura’s title – Director – Communication & Networking<br />• Laura’s salary would be fixed - $2000 per month. Laura would the security of a financial income<br />• Both were determined that Reach out would remain a non profit organization with the primary ethical objective of helping children with autism<br />• Laura wrote a mission statement for Reach Out.<br />• Laura wanted to further develop the blog and produce and sell PECS cards at a low price – this was a project close to her heart.<br />• A monthly average of $200 was received as donations from Laura’s blog – which she donated to the business.<br />• Laura contacted the local university and created a database of interested students who had studied how to support children with autism. She matched these students with local families. Despite Neil’s objections with this, Laura was impatient and pursued her ideas. She insisted that everyone would benefit. By May 2010, she had organised 20 families supported by trainee teachers – Reach Out Therapists.<br />• Laura and Neil were delighted with the initial success of Reach out but it was becoming too time consuming to supervise the trainee teachers. So they decided to hire a part time manager to supervise the therapists.<br />• Laura and Neil appointed Andrew.<br />• But due to his condition, Andrew experiences difficulties with some social situations. Despite Neil’s concern, Laura was delighted. She was confident that Andrew’s appointment would generate PR opportunities and goodwill towards Reach Out.<br />• Most communication between the 3 was informal<br />• Laura was away when complaints about Andrew and trainees happened. When she returned, she dismissed Neil’s idea of dismissing Andrew and did not regard these problems as serious. She felt that Andrew’s difficulties could be overcome by further training and support.<br />• He was becoming increasingly irritated by her laissez faire leadership style and her decision making methods, which were solely based on her intuition and limited experience. Neil preferred to be more analytical and scientific.<br />• Laura has ethical principles – she didn’t like option 1<br />• Laura did not like any of the 3 options presented by Neil for different reasons. Although she did see long term advantages in branding. She felt that her control over the charity’s future was in jeopardy and she was unsure about the future growth of Reach out.<br />Her son Toby • Was 3 years old when he was diagnosed with autism in December 2009.<br />Neil Johnson • Had previously worked in the public and private sector as an educational consultant.<br />• Now retired and still acted as an advisor for several public-private partnerships<br />• He had read Laura’s blog and was moved by her story and wanted to help.<br />• They met and quickly realised they could complement each other<br />• Neil also saw the business potential in Laura’s blog.<br />• Neil has the business experience to run and set up a business.<br />• Despite the many difficulties they faced as a start-up business, they decided to set up a charity for children with autism called Reach Out.<br />• He insisted that Reach Out be organised to a professional standard.<br />• When the business was set up, Neil decided to donate $10,000 himself to cover the costs of the business.<br />• Both Laura and Neil would be employed part time as joint directors with equal responsibility<br />• Neil’s title – Director – Finance and Strategy<br />• His reward package would be based on performance related pay – a commission of 10% of the total cash receipts. He liked the financial motivation to make Reach Out successful<br />• Both were determined that Reach out would remain a non profit organization with the primary ethical objective of helping children with autism<br />• Neil was hesitant about the risks of using unqualified staff – he thought it was unethical. (legal issues, health and safety, child protection)<br />• Laura and Neil were delighted with the initial success of Reach out but it was becoming too time consuming to supervise the trainee teachers. So they decided to hire a part time manager to supervise the therapists.<br />• Neil would have to train the new part time manager. But the appointment would allow him to concentrate on finance and strategy.<br />• When Andrew was appointed, Neil was concerned that Andrew did not have enough experience of working with adults.<br />• Most communication between the 3 was informal<br />• After a few weeks into his role, a number of complaints were emailed to Reach Out’s central office. Neil investigated this through a fishbone diagram.<br />• Neil was worried that these complaints would lead to families withdrawing from the scheme. Which would lead to a drop in revenue.<br />• He confronted Andrew but there were barriers to effective communication.<br />• During their confrontation, Neil thought Andrew was not listening and making excuses.<br />• He also discovered that Andrew was lying and didn’t know how to use a computer.<br />• When Laura returned, Neil told her about the issues and wanted to dismiss Andrew and outsource the therapist scheme management role to an independent freelancer.<br />• Neil had always been impressed by Laura’s determination but was now seeing it as a weakness for Reach Out.<br />• He was becoming increasingly irritated by her laissez faire leadership style and her decision making methods, which were solely based on her intuition and limited experience. Neil preferred to be more analytical and scientific.<br />• When Laura was away on vacation, Neil came up with 3 ways to increase revenue.<br />• After discussions with Laura, Neil realised that she did not support any of the options. Rather than increase tension with Laura, he decided to agree to her wishes and began researching and began conducting market research into the prices of 3 publishing companies.<br /><br />Andrew Grandin • Scheme manager would start – to be managed by both Laura and Neil. Responsible for overseeing the scheme and managing the therapists.<br />• A salary of $1000 per month<br />• Andrew was quite a character.<br />• At the age of ten, he was diagnosed with Asperger’s Syndrome, a well known form of autism.<br />• He was fascinated with trampolines and had gone onto become an Olympic silver medallist.<br />• His empathy with the vision of Reach out and his celebrity status had become key factors in his appointment.<br />• But due to his condition, Andrew experiences difficulties with some social situations.<br />• Most communication between the 3 was informal<br />• After a few weeks into his role, a number of complaints were emailed to Reach Out’s central office.<br />• Complaints were about Andrew failing to reply to message or confirm appointments.<br />• When Neil confronted Andrew, he simply gave excuses and Neil felt that he wasn’t listening.<br />• Andrew argued that although they were willing to work for $20 an hour, they needed more flexible working patterns in order to attend university lectures.<br />• Andrew also felt it was unfair that they had to pay transport fees to go to therapy session.<br />• During their confrontation, Neil discovered that Andrew was lying and didn’t know how to use a computer.<br /><br />Trainee teachers • One of Laura’s ideas was to involve trainee teachers to work with children with autism.<br />• Students training to become school teachers needed experience working with children with autism as part of their qualification.<br />• Laura created a database of interested students who had studied how to support children with autism.<br />• Although they were not qualified therapists, they would be able to help the children and their families.<br />• By May 2010, 20 families received support from trainee teachers – Reach Out Therapists. £25 per hour – they would receive $20 and $5 goes to Reach Out.<br />• This revenue model worked well initially – little liaising, mentoring and monitoring of therapists.<br />• Andrew was appointed to supervise the therapists.<br />• Some complaints came about their attendance and punctuality<br />• Andrew argued that although they were willing to work for $20 an hour, they needed more flexible working patterns in order to attend university lectures.<br />• Andrew also felt it was unfair that they had to pay transport fees to go to therapy session.<br />• Option 1 – increase price families’ pay – could remotivate the trainees.<br /><br /><br />Reach Out Timeline<br />December 2009 Laura’s life changed dramatically when he son was diagnosed with autism<br />March 2010 By now Laura had set up an informal social network support using Facebook and twitter for families in the same situation.<br />By now her blog was set up and had received thousands of visits every day.<br />1st May 2010 Reach Out was formally launched.<br />End of May 2010 Reach out Therapists - Laura had organised for 20 families to receive support from trainee teachers.<br />1st August 2010 Scheme manager would start – to be managed by both Laura and Neil. Responsible for overseeing the scheme and managing the therapists.<br />After a few weeks Complaints about Andrew and trainees<br />Neil draws up a fishbone diagram and confronts Andrew while Laura was on vacation<br />Laura returns – does not support Neil’s 3 options<br />Neil and Laura clash – Neil agrees to her idea.<br />Appendix 1 – pre-start up to August 2010<br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br />Reach Out – SWOT ANALYSIS<br />Strengths Weaknesses<br /><br />- Reach out became a regionally well known brand. Reach Out well-known regionally (line 125)<br />- Laura has the skills and knowledge in autism –first-hand experience. She has the knowledge, passion and determination.<br />- Neil has the skills and knowledge in setting up and managing a business.<br />- Neil’s experience as an educational consultant and advisor (lines 20-22)<br />- Neil’s skills and expertise to set up and run a business (line 28)<br />- Owned by two directors who share the same vision and have different skills and abilities. Both highly committed to the success of Reach Out.<br />- Selling PECS cards at lower prices acted as a USP.<br />- Business was based on a simple business model that covered costs and allowed the organization to create a surplus.<br />- Healthy initial cash flow. Steady surplus being made (Appendix 1) Initial success. High initial revenue. Number of families asking for support was doubling in the first 6 months.<br />- The appointment of Andrew – a real character and a Olympic Silver medallist. Brought about PR opportunities.<br />- Laura’s informal network created through social networking sites such as Facebook and Twitter (lines 10-11)<br />- Laura’s popular blog (line 14)<br />- No debts<br />- Good supply of cheap labour (lines 61-63)<br />- Demand for therapist scheme rising rapidly - doubled every month for the first 6 months (lines 77-79)<br />- Andrew’s empathy and celebrity status (lines 89-90) - The therapists she hires are not qualified (line 65)<br />- Andrew does not have much experience and has difficulty with some social situations (line 92)<br />- Complaints regarding the punctuality of therapists and Andrew failing to confirm appointments (line 98-99)<br />- Therapists are not properly supervised (appendix 2)<br />- Therapists have to pay for their own public transport (appendix 2)<br />- Students cannot always attend therapy sessions because slots clash with their university lectures (line 104)<br />- Andrew does not know how to use a computer (line 107)<br />- Laura’s decision making methods rely on her intuition and limited experience (line 117)<br />- The company has not started selling the PECS cards which is a vital part of the mission statement and a source of income (line 160)<br />- Neil and Laura have different visions of where they want the company to go (line 115)<br />- Reliance on informal communication (line 94)<br />- Communication barriers between Andrew and Neil (lines 101-102)<br />- Conflict between Neil and Laura (lines 109-118)<br />- Problems with communication systems (Appendix 2)<br />- Problems with management systems (Appendix 2)<br />- Problems with staffing (Appendix 2)<br /><br /><br /><br />Opportunities Threats<br /><br />- Andrew’s appointment generates public relations opportunities and goodwill (line 93)<br />- Charge higher fees to re-motivate the students (line 121)<br />- Develop a family brand that includes a new portfolio of products (line 125)<br />- Obtain sponsorship from N-pharma (line 133)<br />- PECS cards USP - lower prices (line 52)<br />- Option 1: Modify the pricing strategy of the therapist scheme (lines 121-124)<br />- Option 2: Develop a family brand for Reach Out (lines 125-132)<br />- Option 3: Obtain sponsorship (lines 133-141)<br /><br /><br /><br /><br /><br /><br /><br />- Legal issues: Health and Safety/child protection legislation could prevent the company using unqualified therapists (line 66)<br />- Competitors who already sell the PECS cards will already have market share and experience in this market.<br />- Other private sector companies provide qualified therapists to their customers (line 5)<br />- Economic recession – impact on donations and therapist scheme (line146)<br />- Changes in teaching course requirements could negatively impact<br />- labour supply<br />- Families might withdraw from the scheme because of issues with Andrew and some therapists (lines 98-99)<br />- Laura’s unsure about her control and the future growth of Reach Out (lines 156-159)<br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br />Reach Out – STEEPLE ANALYSIS<br /><br />SOCIAL TECHNOLOGICAL<br /><br />- The increasing use of social media has enabled Laura to increase awareness of Reach Out.<br />- The increasing awareness concerning issues like autism has meant more resources are being allocated to such issues. For example trainee teachers are studying the effects of autism.<br /><br /><br /><br /><br /><br /><br />- It all began with the use of technology social networking sites such as Facebook and Twitter.<br />- Blog was a great success. Laura’s blog became a medium for social marketing.<br />- Laura wanted to develop the blog further by adding video clips and podcasts – to make it a professional looking website.<br />- Database was used for the trainee students.<br />- The internet has enabled Laura to first write her blog, and then launch Reach Out using sites such as Facebook and Twitter. It also allows Reach Out to keep marketing costs down. Email is used extensively as a method of communication.<br />ECONOMIC POLITICAL<br /><br />- The current economic recession may cut future donations and reduce demand for the therapist scheme, but may attract more people to the subsidized PECS cards (should they be launched).<br />- During times of economic recession, Laura did not like option 2 – increasing prices – some families could not afford it. It would go against Reach Out’s ethical image.<br /><br /><br /><br /><br />- Government provided very little help to families of children with autism.<br />- Legal issues of using unqualified trainee teachers. (child protection, health and safety)<br />- The increasing use of social media has enabled Laura to increase awareness of Reach Out.<br />- The increasing awareness concerning issues like autism has meant more resources are being allocated to such issues. For example trainee teachers are studying the effects of autism.<br />- Community grants are a potential source of finance, although they were not used in the start up of Reach Out.<br />LEGAL ETHICAL<br />• Health and safety and child protection legislation may have an impact on the use of unqualified therapists by Reach Out.<br />- Neil and Laura starting this charity to help families of children with autism.<br />- Unethical issues of using unqualified trainee teachers<br />- Laura is highly ethical<br />- Laura considers the fees charged by private sector therapists as unethical.<br />- Neil is worried that the use of unqualified therapists could be perceived as unethical.<br />- N-Pharma is looking to sponsor Reach Out as part of its CSR programme.<br />-<br />THERE ARE NO ENVIRONMENTAL ISSUES STATED IN THE CASE STUDY<br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br />REACH OUT TOPIC 1<br /><br /> Difference between private and public sector<br /> NPOs<br /> Public private partnerships<br /> Stakeholders<br /> Business Start-ups<br /> SWOT & PEST (Done)<br /> Business plan<br /> Business objectives<br /> Mission and vision statements<br /> Business ethics & CSR<br /> Decision making frameworks<br /> Fishbone model (done)<br /> Ansoff matrix<br /> Force Field Analysis<br /> Organizational Planning Tools<br /><br />Private Sector<br /><br />The private sector includes all businesses set up by individuals or groups of individuals. Most business activity is in the private sector. Can be incorporated or unincorporated:<br /><br />Incorporated: no legal difference between owners and the business (sole traders/partnerships)<br /><br />Unincorporated: separate legal identity from its owners (LTDs and PLCs)<br /><br />Public Sector<br /><br />A sector made up of organizations which are owned and controlled by central or local government or public corporations. They are funded by the government or from their own trading or surplus.<br /><br />Difference between the two sectors Main aim of private sector businesses is to make a profit, public sector businesses mainly aim to provide a service. Public sector businesses usually operate to provide essential services that would be inefficiently provided or not provided by private sector. The public sector exists to ensure everyone has access to basic services.<br />Reach Out<br />Line 4 – the government provided very little help to families with children with autism.<br />Line 5 – there was no system of free medical support. Private therapists could charge up to $100 per hour for a visit to a newly diagnosed child.<br />Line 7 – Laura felt it was unethical that private sector companies were taking advantage of some families. Result – some children with autism being excluded from early treatment.<br />Line 20 – Neil worked for both private and public sector. He was now retired but still acted as an advisor for several public-private partnerships such as schools and colleges.<br /><br />Public Private Partnerships<br />Public-private enterprises take place when governments create partnerships with the private sector in the provision of certain services.<br />The Japanese refer to such businesses as operating in the Daisan sector (or third sector)<br />Such sectors benefits from the dynamics and efficiency of the private sector along with the benefits of public sector funding and support. E.g. WHO.<br />Therefore, Neil’s background shows that he has good experience of both the private sector and the public sector.<br />Ideally this is more efficient than straight public provision. Private sector firms can bring specialist skills, experience, and efficiency to public projects.<br />Success rate has varied; some have worked efficiently, others not so. Clash of objectives, public sector = public service, private sector = profit motive, can cause conflict. Government has, on occasions, had to provide additional funding at taxpayers’ expense.<br /><br />Reach Out is an NPO with the primary ethical objective of helping children with autism (Line 43). “no child with autism will be left behind” – mission statement. (Line 45)<br />It is an organization run in a professional and business-like manner but without profit being the main objective. Instead, Reach Out aims to provide an essential service for children with autism. They also aim to promote this important cause.<br /><br />It still makes a profit but called surplus. Profit is the reward that is distributed to its owners or investors in return for risking their money (Neil) and resources in the business.<br />NPOs return this “profit” surplus back into the business for the benefits of its members and in order to enhance its facilities (e.g. Therapists and PECs Cards). Such an organization is still required to meet the needs of its stakeholders.<br />NPO’s tend to struggle with obtaining finance because they often have limited sources of finance available, i.e. can’t sell shares, difficulty in obtaining bank loans.<br />NPO is suitable for Reach Out because profit is not a primary objective rather the ethical objective of helping children with autism. Its surplus is to be used to achieve its goal.<br /><br />Stakeholders<br />A stakeholder in a business is any individual or group which is affected by the business and so has an interest in its activities. Has a direct interest in the business and is affected by its activities. Charles Handy argues that it is in the best interests of an organization to listen to the needs of its stakeholders. Stakeholders can be internal or external. Reach out’s stakeholders:<br />Laura – Owner<br />Neil – Owner<br />Customers – families and children with autism/could also be considered an SIG – Special Interest Groups.<br />Employees – therapists & Andrew<br />General Public for donations<br />Suppliers of PECS cards<br />TASK: Write a list of each of their needs as stakeholders using your textbook page 60 and don’t forget to make notes on SIGs<br />HL: Using the stakeholder map on page 69 – label them according to reach Out’s stakeholders.<br />What are these stakeholders’ needs?<br />Laura – ethical business activity<br />Neil – success/structure<br />Therapists – financial rewards, subsidized transport, flexible working hours, experience<br />Customers – affordable therapy/good service<br />Andrew – good pay and benefits. Training.<br />Stakeholders’ conflict a Reach Out<br />Tension between Laura and Neil – different leadership and management styles. Clashed over the future growth of Reach Out.<br />As these different stakeholders have varied needs and interests, it is likely that conflict will arise. Reach out may have to make certain decisions that addresses the interests of some its stakeholders but at the expense of not being able to meet the needs of other groups. If a stakeholder group is not catered for, disruptions and problems can occur.<br /><br />Business Start-Ups<br /><br />Neil and Laura faced many risks when starting their business Reach Out. Many new businesses fail due to mismanagement and underestimating challenges, insufficient demand.<br />Neil and Laura had to go through a decision-making process to decide where the firm wants to be, how it is going to get there and how success will be monitored.<br />Why did they start this business?<br />Laura had the personal experience from her child. She wanted to provide a service to families with children with autism<br />Neil liked the idea and wanted to make it financially successful. He did it for the challenge and the personal achievement.<br />What costs did they face as a business?<br /> Office equipment and computer facilities for Laura/converting her bedroom into an office.<br /> Communication resources – PECS cards<br /> Maintaining the website and blog<br /> Therapists’ salaries<br /> Laura and Neil’s salaries<br /> Andrew’s salary<br /> Market research<br />Using pages 24-26 what possible problems did they face as a start-up? Make notes.<br /><br /> Lack of financial capital.<br /> Cash flow problems and financial working capital.<br /> Budgetary problems<br /> Marketing problems<br /> Un-established customer base<br /> People management problems<br /> Legalities<br /> Production problems<br /> Poor location<br /> External influences<br />(The bold are related to Reach Out!!)<br />Important reading – page 19-20 Raffo Book<br /><br />The Business Plan<br />A plan of how the business will develop overtime; how a new business sets out to achieve its aims and objectives. This is a useful tool for managing financial, marketing and production plans for a new business. A business plan is crucial to the success of a start-up business. A good business plan has to be:<br />Comprehensive and well researched<br />Realistic<br />Coherent<br />What are the advantages and disadvantages of a business plan? Pages 96-98<br /><br />Advantages of Business Plans<br /> Helps owners to align the goals of the business with its operations<br /> It considerable reduces the risks of failure because it identifies potential problems and opportunities.<br /> Forces entrepreneurs to look at every aspects of their future business.<br /> Allows it to plan ahead and forecast potential problems and then take steps to overcome them.<br /> Gives the business an initial competitive edge.<br /> Can be used to gain money from lenders.<br /><br />Disadvantages of Business Plans<br /><br /> Business plans take a long time to produce and they are only a plan/prediction/forecast<br /> External factors may make this plan wrong/inaccurate<br /> The quality of the plan depends on the skills of the entrepreneur writing the plan<br /> It may reduce the risk of failure but it does not eliminate it.<br /><br />What is included in a business plan? Make notes page 97<br /><br />Business Objectives<br />Why are setting business objectives important?<br />Without clear aims and objectives, organizations have no sense of direction or purpose.Give a business a sense of unity and can help to unify and motivate management and workers.<br />They form the foundation for business decision making. Organizations can then create strategies to achieve these goals.<br />They help to encourage strategic thinking i.e. Planning for the long term.<br />They provide the basis for measuring and controlling the performance of the workforce, management and the business as a whole. To control – to motivate – to direct<br />What is the difference between aims and objectives?<br />What is the difference between tactical and strategic objectives?<br />Give examples of each for Reach Out.<br />Examples of Tactical Objectives<br /><br /> Add podcasts and have a professional looking website.<br /> Survive in the current market<br /> Affordable PECS cards – subsidize them to make them more affordable.<br /><br />Examples of Strategic Objectives<br /><br /> Remain non profit organization<br /> Increase surplus<br /> Make the charity financially sustainable<br /> Ethical objectives – help each child with autism<br /> Obtain more sources of finance for the 3 options<br /> 3 options – growth objectives. Esp. option 2: brand/product development<br /><br />Vision and Mission Statements<br /><br />A vision statement expresses a desired future outcome that an organization wishes to achieve. Outlines a business’ aspirations (where it wants to be) in the future.<br /><br />A mission statement states the overall purpose of an organization. It explains what the business is trying to achieve and outlines its values.<br /><br />Having a vision means to have an image of an ideal situation in the future.<br /><br />Having a mission means to have a clear purpose.<br /><br />A mission statement outlines how a vision statement will be achieved.<br /><br />Differences<br /> Vision statements focus on the long term, mission statements focus on the medium or long term.<br /> So mission statements are updated more frequently than vision statements<br /> Vision statements do not have actual targets on them.<br /> Mission statements highlight the values of the business, its beliefs and guiding principles. This sets the tone for how managers and employees behave on a day to day basis.<br /><br />Reach Out<br /><br />Reach Out’s vision statement is “no child with autism will be left behind” (lines 44-45).<br />Reach Out’s mission statement is “to provide online support for families of children with autism and to offer them communication resources at a greatly reduced price” (lines 45-47).<br /><br />Effectiveness?<br />Depends on the clarity of the vision/mission statement. Reach Out’s vision/mission statements seem very clear and easy to understand.<br />Depends on who is involved in writing the vision/mission statement. Reach Out’s vision/mission statements have been written by Laura. They are likely to be more representative of her vision/mission rather than the organization as a whole. This could be linked to the conflict over Neil’s suggested marketing objectives proposed later in the case.<br />Disadvantages<br /> Time consuming<br /> Depends on the skills of the writer<br /> Can be seen as a PR marketing ploy<br /> May not be supported by all employees.<br /> Difficult to draft a statement that caters for all the dynamics of a business.<br /><br />Important reading – Raffo pages 602-614<br /><br />Business Ethics<br />Business Ethics – the business values and moral beliefs that underpin business decision making.<br />All businesses have to make many ethical decisions. Ethical objectives can be explicit (e.g. Not test on animals) or implicit (corporate culture)<br />What are the advantages and disadvantages of ethical behaviour? Page 49-50<br />Benefits of ethical behaviour<br /> Increased sales revenue and profitability<br /> Increased custom from ethical customers<br /> It improves the business’ image/reputation<br /> It reduces pressure from pressure groups<br /> It can be used for marketing purposes.<br /> Cost cutting at times e.g. reducing packaging.<br /> Improved staff motivation<br /><br />Drawbacks of ethical behaviour<br /> It can raise costs.<br /> Takes up management time<br /> Can cause tension/conflict between stakeholders and their interests, e.g. Reach Out.<br /> It can reduce revenue.<br /> Can be seen as a marketing ploy.<br /> Unqualified therapists (reduced quality) seen as unethical.<br /><br />Reach Out Laura felt it was unethical that private sector businesses were taking advantage of families with children with autism. Laura and Neil wanted the primary objective for Reach Out to be an ethical one – to help children with autism. Neil was hesitant about the unqualified therapists – felt it was unethical.<br /><br />Option 1 – increase prices – went against Laura’s ethical objectives. Her ethical principle was to charge families as little as possible. She felt that charging high prices during economic recession would give Reach Out a bad image.<br /><br />Option 3 – Laura did not want to be linked to N-Pharma – who would see CSR as a PR exercise<br /><br />Reach Out’s Ethical Objectives<br />Ethical objectives are likely to receive positive attention because they are seen as benefiting society. Ethical objectives can motivate employees because some are motivated by sound business ethics therefore employee retention is likely to improve.<br /><br />As an NPO it is suitable for Reach Out to have an ethical objective. The objective itself is simple and easy to understand.<br /><br />Important Reading – CSR Pages 51-56 – make summary notes<br /><br />CSR<br /><br />Self-regulation aiming to ensure that an organization behaves ethically. N-Pharma has offered to sponsor Reach Out as part of its CSR programme. Considering ethical and environmental issues before making decision can improve reputation because consumers are concerned over these issues.<br />An effective CSR programme can motivate employees because they may also share the same concerns therefore increasing employee loyalty and reducing labour turnover. It may also help recruit high quality individuals.<br />CSR is seen by some as a PR exercise and, therefore, may not be a cost effective process. Depends on whether the CSR programme is implemented and communicated effectively. It requires the commitment of the entire organization to be effective.<br /><br />Organizational Planning Tools<br /><br />At the heart of B&M is decision making. There are 3 levels of decision making in an organization:<br />Operational decisions (routine, day to day decisions)<br />Tactical decisions (regular/short term decisions e.g. Pricing decisions<br />Strategic decisions (high level long term decisions. By SMT)<br />Planning tools that aid decision making:<br /><br /> Business plans<br /> SWOT Analysis<br /> Decision making frameworks<br /> Decision trees (HL: revise this it could come up as a HL question)<br /> Fishbone model<br /><br />Tools used to aid business planning, normally used before start-up or expansion. Organizational planning tools aid planning and monitoring because they provide a guide for managers to follow.<br />They allow for monitoring of business performance and are useful when applying for external finance.<br />Decision-making is likely to be more accurate because organisational planning tools encourage analysis and reflection.<br /><br />Organizational Planning Tools<br /><br />Depends on accuracy of business planning tools. Neil is very experienced increasing the chances of accuracy, however Reach Out is new, and so making accurate predictions is likely to be difficult.<br /><br />Neil: Scientific decision making (HL)<br /><br />Decisions are made objectively on the basis of following a formal and prescribed procedure. Decisions are made on quantifiable facts and evidence rather than based on subjective opinions, past experience feelings or intuition.<br /><br />Benefits: decisions are made rationally and logically. Reduced risks involved.<br /><br />Laura - Intuitive decision making (HL)<br /><br />Based on a person’s beliefs perceptions, instincts and gut feelings. Decision making is quicker and less expensive. Considers issues not necessarily quantifiable such as the impact of decisions on employees or local community. They will also consider ethical issues.<br /><br />Which one is right?<br />Depends on:<br /> The scale of the decision (tactical, operational or strategic)<br /> Current and future climate<br /> Knowledge and past experience<br /><br /><br />Decision Making Framework<br />A systematic process of dealing with business problems, concerns or issues in order to make the best decision.<br />Using page 101 – copy the 7 steps of decision making...<br /><br />Decision making model<br /><br /> Identify the business problem, concern or issue<br /> Gather sufficient data and information in order to make rational decisions<br /> Analyse data and information to produce possible options.<br /> Assess the consequences in terms of costs and benefits<br /> Select the most favourable option and the one most realistically achievable<br /> Communicate this decision to staff<br /> Review and evaluate the outcome.<br /><br />Decision Making Frameworks<br />Make notes on the decision making frameworks using pages 101-102.<br />Carry out a force field analysis for each of the 3 options.<br /><br />Reach Out and Ansoff Matrix<br />Reach out’s option 2 includes developing a portfolio of products. Strategy known as product development<br /><br />Product development Product development is the name given to a growth strategy where a business aims to introduce new products into existing markets.<br /><br />This strategy may require the development of new competencies and requires the business to develop modified products which can appeal to existing markets.<br /><br />A product development strategy may be appropriate if the firm's strengths are related to its specific customers rather than to the specific product itself.<br /><br />In this situation, it can leverage its strengths by developing a new product targeted to its existing customers.<br /><br />Similar to the case of new market development, new product development carries more risk than simply attempting to increase market share.<br /><br />Market penetration<br />Market penetration is the name given to a growth strategy where the business focuses on selling existing products into existing markets.<br />Market penetration seeks to achieve four main objectives:<br /><br /> Maintain or increase the market share of current products – this can be achieved by a combination of competitive pricing strategies, advertising, sales promotion and perhaps more resources dedicated to personal selling<br /> Secure dominance of growth markets<br /> Restructure a mature market by driving out competitors; this would require a much more aggressive promotional campaign, supported by a pricing strategy designed to make the market unattractive for competitors<br /> Increase usage by existing customers – for example by introducing loyalty schemes<br /> A market penetration marketing strategy is very much about “business as usual”. The business is focusing on markets and products it knows well. It is likely to have good information on competitors and on customer needs. It is unlikely, therefore, that this strategy will require much investment in new market research.<br /><br />Market development<br />Market development is the name given to a growth strategy where the business seeks to sell its existing products into new markets.<br />There are many possible ways of approaching this strategy, including:<br /><br /> New geographical markets; for example exporting the product to a new country<br /> New product dimensions or packaging: for example<br /> New distribution channels<br /> Different pricing policies to attract different customers or create new market segments.<br /><br />Diversification<br />Diversification is the name given to the growth strategy where a business markets new products in new markets.<br />This is an inherently more risk strategy because the business is moving into markets in which it has little or no experience.<br /><br />For a business to adopt a diversification strategy, therefore, it must have a clear idea about what it expects to gain from the strategy and an honest assessment of the risks.<br /><br />Reach Out – Option 2<br /><br />Creating a brand that is consistent with the mission/vision of the organization, includes name, logo, etc. Selling new products.<br /><br />Option 2: Develop a family brand is a combination of brand development and product development to existing markets.<br /><br />Brand Development/Product development<br />Brand development can help improve brand recognition therefore increasing revenue.<br />Product development can help boost revenues because it increases the product mix of the organization.<br />Significant because this is one of Neil’s suggestions to increase revenue. However, it is expensive, $100,000 for an NPO that has only been generating positive cash flow for 3 months. Also, Laura is against the idea of brand and product development.<br /><br />Fishbone model<br /><br />Created by Kaoru Ishikawa. Also known as the cause-effect diagram. The fishbone diagram is a management tool used to identify the root causes of a problem. Used for dealing with a problem that has several elements or root causes. Usually use 4 Ms – Management, Manpower, Machines, Materials.<br />In Reach Out, they used Communication Systems, Management Systems, Staffing 1 and Staffing 2.<br /><br />A diagram intended to establish the causes of a particular issue/problem. Neil uses a fishbone (Ishikawa) diagram to identify the causes of the complaints from Reach Out customers.<br /><br />Fishbone Diagrams<br />Fishbone diagrams can improve decision-making because they encourage a scientific approach to establish cause and effect therefore making it easier to solve the problem of complaints from customers.<br />Fishbone diagrams are a good visual aid therefore they are easy to understand. Fishbone diagrams can be time-consuming and subject to bias therefore making them redundant.<br />Depends on the quality of research and the impartiality of the individual who creates the fishbone diagram. Neil is experienced and scientific in his approach to decision-making therefore he is more likely to produce an accurate diagram. However the diagram has no other input other than Neil’s, so could be subject to bias.<br /><br />Force Field Analysis<br />Developed by Kurt lewin. Examines forces for and against a decision<br />Driving forces – advantages of implementing a decision<br />Restraining forces – limitations or disadvantages of the decision<br />Aim – to strengthen the driving forces and reduce the impact of the restraining force<br /><br />Force Field Analysis<br />For each option, complete a force field analysis<br />Consider ALL parts of the case study in your answer.<br />An analysis of the 3 options<br />Remember, Neil set up these 3 options with the aim of increasing revenue<br />Option One<br /><br /><br />Laura’s Reaction:<br /><br />It seems sensible to assume that the students will be reimbursed from the additional revenue<br />Reach out is a one incident away from facing serious litigation since despite the fact that they are dealing with very delicate children, the care being given is not fully trained.<br />Besides the student therapist are not committed their work as they miss sessions arbitrarily. Laura refuses to handle the problem and Neil is too scared of rocking his financial nest.<br />Revenue from Therapists<br />20 families. $25 per hour for one to one session. ($20 to therapist, $5 to Reach out).<br />On the basis of 20 hours per month per family:<br />What is the total revenue received from each family per month?<br />20 hours * $25 = $500 dollars in total received from each family.<br />What is the total revenue received from all families per month?<br />$500 * 20 families = $10,000 total income received from this.<br />Per year?<br />10,000 * 12 = $120,000<br />How much revenue goes towards Reach out from each family per month?<br />20 hours * $5 = $100 goes to Reach Out from each family<br />How much revenue goes towards therapists from each family per month?<br />20 hours * $20 = $400 towards therapists.<br />Are these figures realistic?<br />I have consulted one of the authors of the case study, who reported to me that the figures that Reach Out is forecasting are entirely realistic. This assessment is based upon the experience of the families who were consulted by the case study authors when they wrote it. Some families and therapists would argue that the figures understate the true position considerably. Some therapists would argue that 20 hours a month would not be considered excessive (and, off the record, they would argue that 20 hours a month would be ineffective).<br /><br />Families with a child with autism have significant financial hardship if they decide to undergo a period of managing the condition with the use of outside therapists (given that subsidized public sector provision is not available in many countries).<br />Why have Autism organizations not noticed Reach Out and their model - surely using untrained treatment for such a complex disorder would draw comment from professionals? Autistic people are known for wanting order and stability and above all structure - therapists changing and not turning up would cause havoc with this<br /><br /><br />Pros<br />Increase Reach Out’s revenue – double<br />Helps to motivate the students as they will receive more money<br />Making good use of cheaper alternative to therapy.<br />Can overcome existing problems faced as a result of motivation problems faced by therapists.<br />Cons<br />Goes against their ethical image of charging lower prices to customers<br />Gives a poor image of the charity<br />Some families may not be able to afford it and be unhappy.<br />Autism is a complex cognitive disorder and, for example like dyslexia, is a basket of symptoms with a myriad of demands so therapists must be trained in many aspects. We have no evidence these therapists can cover all this?<br />Complaints about therapists may mean families would not want to use them again.<br />Do they need to further train if they are going to charge more? Need to provide a better service.<br /><br />Option Two<br /><br />Laura’s reaction<br /><br /><br />Option Two<br /><br />Pros<br />Widen the charity’s product portfolio<br />Reduce the risk of relying on a small range of products/services<br />More recognition and awareness. Can help to raise profit and revenue in the long term<br />Advantages of branding.<br />Strengthens the name and image of Reach Out to help boost its sales through continued brand extension strategies.<br />Gives Reach out a brand identity, customer trust and loyalty.<br /><br />Cons<br />Inappropriate for a charity to have such marketing objectives.<br />Opportunity cost: the PECS cards<br />Expensive - $100,000 in total. Reduced surplus.<br />Does carry risks with it.<br />Bad publicity for one product can lead to problems for others – has to maintain consistency in quality<br />Brand development can help improve brand recognition therefore increasing revenue. Product development can help boost revenues because it increases the product mix of the organization. Significant because this is one of Neil’s suggestions to increase revenue. However, it is expensive, $100,000 for an NPO that has only been generating positive cash flow for 3 months.<br />Family branding can increase the success rates on new product launches because consumers are already aware of the name and are, therefore, more willing to purchase the product.<br />If one product fails within a family brand then this can have negative effects on the reputation of other products within the family because they all share the family name.<br />Depends on the strength of the family brand. Reach Out is new and only regional therefore the benefits of family branding are likely to be fairly small.<br />Very Important...<br />Write down a list of advantages and disadvantages of branding page 512, brand development page 516 and family brand page 517!!!<br />Option Three<br /><br /><br /><br />Laura’s reaction<br /><br /><br />Pros<br />Increased revenue<br />Both organizations would benefit. Increased funding and support. $10,000 can help Reach Out with PECS cards at a reduced price and have the USP.<br />Commonly used in charities. A good form of below the line promotion. Increased brand recognition.<br />Can use N-Pharma’s knowledge and research on autism for its own purposes.<br />Marketing benefits – Laura’s blog could become more well known<br /><br /><br />Cons<br />Laura’s concerns about being linked to a multinational that may only be concerned about PR rather than the cause itself<br />Negative publicity by this multinational could impact on Reach Out and its own image – brand association.<br /><br />FINALLY...<br /><br /><br /><br /><br />Topic 2: HRM At Reach Out<br /><br />Leadership<br /> Leaders need to be visionaries<br /> Leaders need to be good at carrying out the process of change and respond to it.<br /> Leaders need to motivate<br /> Leaders need to be able to get to the core of the problem<br /> They need to be creative and innovative<br /><br />Things to note:<br />Neil donated the £10,000 himself so he has a personal interest in this business. (line 36)<br />Whilst Laura’s salary was fixed, Neil’s reward package was based on PRP (line 40)<br />Laura had the security of a steady income, but Neil had the financial motivation to make Reach Out successful At first, they thought they would complement each other, but after time, they clashed.<br /><br />Laura<br />Task – what are Laura’s strengths and weaknesses according to the case study?<br />Laura’s Strengths<br />Keen to raise awareness about autism – wants to be ethical. Has knowledge and first-hand experience of the needs of families with autism (line 24). She was passionate and had many ideas (line 27). This is a project close to her heart. Determined to keep Reach out as a NPO with primary ethical objective of helping children with autism (Line 43). She developed a successful website<br />Laura’s weaknesses<br /> She was impatient and pursued her own ideas (line 67)<br /> Dismissed Neil’s concerns about Andrew.<br /> Informal communication with Andrew and Neil<br /> Neil had always been impressed with Laura’s determination, but was now seeing it as a weakness. (Line 114)<br /> Poor decision making methods, based on intuition and limited experience. (Line 117)<br />Laissez Faire Leadership Style<br />One who prefers to have minimal direct input into the work of the employees.<br />Allow employees to carry out activities freely within broad limits<br />Leave subordinates to make their own decisions and to complete tasks in their own way. The result is a relaxed atmosphere.<br />This leader will set objectives but it is upto the employees to decide how best to achieve the objectives using the resources available to them.<br />‘Let it be’ – the leadership responsibilities<br />are shared by all<br />Can be very useful in businesses<br />where creative ideas are important<br />Can be highly motivational,<br />as people have control over their working life<br />Can make coordination and decision making<br />time-consuming and lacking in overall direction<br />Relies on good team work<br />Relies on good interpersonal relations<br />Laissez Faire Leadership Style<br />Name one advantage and one disadvantage of this laissez faire leadership styly<br />Advantages - Laissez Faire Leadership Style<br /> This leads to high levels of motivation as staff feel trusted and highly valued by their employer.<br /> Relaxed atmosphere.<br /> Employees feel they have control over their own work and can contribute to the success of the organization.<br /> It is suitable in situations where creativity is required<br />Disadvantages - Laissez Faire Leadership Style<br /> There is lack of supervision or direction<br /> Decision making and coordination is slow and time consuming<br /> Relies heavily on people’s goodwill and teamwork to achieve the organization’s goals.<br /> This also encourages slack – when people choose to be less proactive as they know they are not being directly monitored by senior management.<br /> Can demotivate as there are few incentives to work hard.<br />Disadvantages - Laura’s leadership style<br /> Lack of direction for Andrew<br /> Lack of supervision has caused customer complaints as a result of Andrew’s work<br /> Decision making skills causing problems for Neil, as based on intuition and limited experience.<br /> Informal communication with Andrew not helping<br /> Did not liaise monitor and mentor the therapists – left them to it. This caused problems in motivation and lack of direction.<br />Final Notes<br />A laissez-faire approach can cause problems because inexperienced staff can lack the necessary skills therefore increasing the risk of mistakes.<br />Depends on the individual. Laura’s personality seems to suit a laissez-faire approach where as Neil likes more control. However Andrew clearly needs more guidance thus a laissez-faire approach is probably unsuitable in this instance.<br />Activity<br />Now write a list of Neil’s characteristics as a leader…<br />Draw a table and compare and contrast Neil’s leadership style with Laura’s<br />Neil<br />He worked previously in public and private sector – has business experience.<br />Has educational experience<br />Has a personal interest in the charity as he put in the $10,000 himself.<br />Has a controlling personality.<br />Ethical – hesitant about using unqualified staff.<br />Forward looking leader<br />Problem – solver – likes to look at problems and consider ways to solve this.<br />He preferred to be more analytical and scientific.<br />Very professional – carried out SWOT, STEEPLE and business plan.<br />Willing to go through any measures to ensure the success of the charity. Even willing to allow Laura to make final decisions.<br />HL – Reading<br />Fiedler – Page 253<br />Contingency theory – page 256<br />Charles Handy – Page 261<br />Peter Drucker – Page 262<br />Leadership and management – Page 258<br />Make notes on the above and identify how you can apply them to Reach Out.<br />Communication at Reach Out<br />Issues:<br />Informal communication<br />Website used to communicate with customers.<br />Communication barriers between Neil and Laura<br />Email is used extensively as a method of communication<br />Fishbone diagram – communication systems<br />Communication Facts<br />Reach Out has made effective use of the internet – social networking sites and the website to communicate to customers.<br />Laura has communicated to parents through her blog and through emails<br />These methods of communication allowed her to work from home (Line 25)<br />Andrew has difficulties with social situations (Line 92)<br />Most communication between Laura, Neil and Andrew was informal.<br />When Neil confronted Andrew about the complaints, there were barriers to effective communication. (line 101)<br />Andrew not knowing how to use the computer would cause further communication problems. (line 107) as they rely on this heavily for communication.<br />Fishbone Diagram Analysis of Communication<br />Write a summary of what you think the fishbone diagram shows about communication<br />Fishbone Theory – Page 106<br />Created by Kaoru Ishikawa. Also known as the cause-effect diagram<br />The fishbone diagram is a management tool used to identify the root causes of a problem.<br />Used for dealing with a problem that has several elements or root causes<br />Usually use 4 Ms – Management, Manpower, Machines, Materials.<br />In Reach Out, they used Communication Systems, Management Systems, Staffing 1 and Staffing 2.<br />HL - Fishbone Diagram Analysis of Communication HL<br />Make notes on the theory behind a fishbone diagram page 107<br />What are the advantages and disadvantages of using this tool? Page 108<br />Communication<br />Why is good communication important?<br />• It helps to manage the business effectively<br />• It reduces customer complaints<br />• It motivates staff – everyone knows what they have to do<br />• Everyone has a sense of direction and planning is effective.<br />• Effective communication needs a balance of both formal and informal.<br />Informal Communication<br />Informal communication refers to all unofficial channels of communication that exist in the business.<br />These are non-approved channels.<br />This can both help and hinder formal communication.<br />Information that is gained “through the grapevine” can become distorted<br />But formal communication SHOULD be supported by informal channels.<br />The informal communication at Reach out has caused a breakdown in communication between management and employees, and between the business and its customers.<br />Barriers to effective communication<br />Between Neil and Andrew:<br />Effective communication will only take place if the message is received and understood by the receiver.<br />Barriers to effective communication<br />Barriers include:<br /> Form of the message<br /> Jargon<br /> Skills of sender and receiver<br /> Choice of communication channel/medium<br /> Incorrect target for the message<br /> Stereotypes, perceptions and attitudes<br /> Layers in the hierarchy<br /> Breakdown of the channel<br /> Lack of common sense and purpose<br /> Use of ICT<br /> Over reliance on written communication<br /> Intermediaries<br />The bold apply to Reach Out<br />Neil and Andrew..<br />Andrew unskilled or unwilling to communicate<br />Communication ICT<br />Internet<br />Useful for external communication<br />Can have lots of information about the business<br />Can be used to effectively communicate with customers<br />But needs skills to operate the computer<br />Email<br />Allows for immediate communication<br />Long documents can be sent immediately<br />Again needs sender/receiver to be skilled with using this technology<br />Can cause problems if technological breakdowns.<br />Working from home<br />Laura works from home on a flexible schedule<br />Her bedroom was turned into an office and equipped with better computer facilities.<br />What are the advantages and disadvantages for this for Laura and for the business?<br />Laura working from Home Pros<br /> Technology will allow her to communicate from home and still be with her son and look after him<br /> Motivating for her – allows her to have a flexible working structure<br /> Saves time and money with travelling<br /> She can enjoy autonomy in decision making as working practises tend to be less formal.<br /> She also has the choice in how to organise her work.<br /> Her working hours will be flexible. This means customers can communicate with her during different times of the day. Useful for her job in dealing with parents/carers.<br />Laura working from Home Cons<br /> It does rely heavily on good communication and ICT – which is a concern for Reach Out.<br /> Laura may get distracted from her work<br /> She will work in isolation and the office atmosphere is missing<br /> Causes communication problems between Laura and Neil and Andrew. If she is away from work she does not see what is going on as much.<br /> High set up costs for Neil $10,000 (line 33)<br /> Less control for both Neil and Laura<br /> Can face technological breakdowns,<br /> Encourages Laura’s laissez faire leadership style as it takes her away from the office.<br />The Therapists<br />“Reach Out Therapists” – Facts<br />From the beginning, Laura had initial plans of involving trainee teachers working with children with autism (line 27)<br />These are students training to become school teachers<br />They had studied how to support children with autism<br />They needed experience of working with children with autism.<br />Although they were not qualified, they would be able to help the children and their families.<br />Laura matched them with families who had emailed her asking for affordable therapists, qualified or not.<br />Neil was hesitant – ethical issues of using unqualified staff, legal issues, health and safety and child protection.<br />Laura insisted everyone would benefit: children, families, trainee teachers and charity itself.<br />By 2010, 20 families were supported by the therapists.<br />Initially this was a success.<br />Therapists paid $20 per hour.<br />More families were contacting Reach Out to ask about the therapists scheme. (line 77)<br />Then Andrew was hired to oversee therapists. Neil needed to train him in workforce planning<br />After a few weeks – complaints included:<br /> Punctuality<br /> Not turning up at all<br /> Andrew failing to confirm appointments/reply to messages<br />Therapists were willing to work for $20 per hour<br />They needed more flexible working patterns in order to attend lectures<br />Many had to pay for public transport to go to therapy sessions.<br />Andrew felt this was unfair<br />Task<br />Write a list of the advantages and disadvantages of using these unqualified therapists for A) the charity<br />B) the therapists themselves.<br />Advantages of “Reach Out Therapists”<br /> They need the experience of working with children with autism<br /> Gives them first-hand experience of autism and they get paid for it. Good for their Cv.<br /> Young, energetic and have the first hand theory as they are currently studying it<br /> It allows Reach Out to cater for more families<br /> The families did want affordable therapists – qualified or not<br />Disadvantages of “Reach Out Therapists”<br /> Unethical concerns for the charity of hiring unqualified therapists. (H&S, CPO) It depends on whether customers are made aware of them being unqualified.<br /> They cannot be fully committed to this charity because of their university commitments<br /> They are unhappy about the money to pay for transport<br /> They need more flexible working hours to attend uni lectures<br /> They have been left to it by Laura and Neil from the start. Initially with little liaising, mentoring and monitoring (line 74)<br /> Managed by Andrew who has difficulties with social situations. Andrew was not monitored himself. Communication problems between Andrew and the therapists.<br /> This flexible and informal structure caused them to lose control, focus and become demotivated. They have no sense of direction and need proper management.<br /> Result: complaints, punctuality, absence…<br /> Their failings are having an impact on the charity, its goodwill, its revenue, its image etc.<br />Therapists – Fishbone Analysis<br />HL - Fishbone Diagram Analysis of Therapists<br />Solution 1<br />Reach Out could switch to private therapists – could charge upto $100 per hour for a visit to a newly diagnosed child. (Line 5)<br />However this is costly.<br />Solution 2<br />Provide better supervision and training for Andrew which should improve management of the therapists. And should make them more motivated.<br />Time consuming and costly.<br />Solution 3<br />Motivate the therapists by offering them more flexible working patterns and paying for their transport.<br />Increases costs and may delay launch of PECS Cards.<br />Contingency plan needs to be developed to cover absent/late therapists<br />Solution 4<br />Outsourcing suggested by Neil<br />Flexible working patterns<br />Will improve flexibility in the charity. They have consequences for the charity’s workforce planning. This Allows therapists to work hours that suits their needs. Such flexible working hours is needed for these students who need to balance this work with their uni life. According to Handy’s shamrock organization, they would be classified as peripheral workers – reading page 198.<br />Flexible working patterns<br />These therapists will be motivated by the pay they receive and the work they are doing with the children. But they want flexible hours and subsidized transport. They are not 100% loyal to the charity because this is not their first priority. So why have flexible working patterns?<br />Advantages<br /> It can allow Reach Out to expand and respond to changes in demand<br /> Cheaper for Reach Out as qualified therapists cost a lot of money.<br /> More flexible than permanent staff<br /> If trained well and supervised well, can allow Reach out to operate efficiently and increase demand.<br />Disadvantages<br /> Therapists have less loyalty to Reach Out<br /> Quality of their work has not been supervised. No guarantee they will perform their job well. Perhaps Neil was right to have ethical concerns, H&S and CP concerns.<br /> Damaging Reach Out’s reputation<br /> Communication problems occur<br /> Lack of stability at Reach Out.<br />Relevant motivational theorists<br />Taylor – therapists rewarded with salary only.<br />Maslow – therapists unable to satisfy security needs<br />McClleland – Neil (need for achievement) Laura (need for affiliation?)<br />Herzberg – hygiene factors for therapists. Lack of motivators for therapists.<br />Vroom – outcome of the effort for the therapists.<br />Outsourcing<br />Neil wants to dismiss Andrew and outsource the therapist scheme management role to an independent freelancer<br />What would be the advantages and disadvantages of this?<br />Outsourcing<br />The act of moving non core activities away from internal operations by finding an external party to perform such functions.<br />Outsourcing Benefits<br /> To reduce costs and eliminate the problems faced as a result of hiring Andrew (would not need to train or supervise him)<br /> Freelancer would have the knowledge, experience and skills to tackle this job head on.<br /> They would be able to solve problems of therapists as they have the skill to do so.<br />Outsourcing Problems<br /> This would not be their priority – work for several employers<br /> Requires effective two-way communication<br /> Loss of control for Neil and Laura<br /> Quality of the work produced or service provided would be an issue<br /> Effective workforce planning needed – costly and time consuming,<br /> Expensive.<br />Workforce Planning<br />The process of determining the labour needs of the business now and in the future.<br />Including the no. of workers and their skills and ways of achieving labour targets.<br />Neil would have to train Andrew in workforce planning<br />Reading page 168-173 IBO & Reading page 430-434 Raffo<br />Salary & PRP<br />Laura has a fixed salary $2000 per month<br />Therapists paid on a salary basis $20 per hour session<br />Reading – Page 281<br />Neil – PRP. A commission of total cash receipts.<br />Reading page 282-284<br /><br />Methods of financial rewards<br />Neil is motivated by this rewards package. He is rewarded by meeting certain goals. It creates an incentive for him to work harder. Develops a performance culture for Neil, where he strives to achieve targets. This can cause security problems for Neil. It directly links performance with pay. He is worried that targets won’t be met with Laura’s leadership style.<br />Final reading<br />Training – types of training<br />Motivation chapter – theorists and financial and non financial rewards.<br />Leadership chapter<br />Corporate Culture (esp. Handy)<br />Recruitment and selection – especially interviews<br />It is important that you read these chapters well and have good revision notes on them…<br /><br /><br /><br /><br /><br /><br />Finance At Reach Out<br />Issues to revise<br />• Sources of finance<br />• Cash flow forecast<br />• Budgeting<br />Financial Facts<br />When they first started, Neil insisted that the organization is set up in a professional manner. He set up a budget and a simple system for their final accounts. He calculated the start-up costs to be $10,000.<br />He considered sources of finance such as a short term loan from a bank or a government grant from the local public authorities. Neil decided to fund and donate the $10,000 himself. Neil liked the financial motivation to make Reach Out successful. Laura’s goal was to produce and sell PECS cards for a reduced price. USP. Using surplus to subsidise PECS cards. First she had to establish the charity and make it financially sustainable.<br />Reach out was based on a simple business model that covered costs and allowed the organization to create a surplus. (line 55).<br />Laura has a fixed salary – a more stable salary compared to Neil.<br />Therapists charged $25 per hour for sessions.<br />A monthly average of $200 was received from donations by readers of Laura’s blog. She donated this to Reach Out.<br />The unqualified therapists would benefit the charity as they were cheaper than qualified therapists (who charged $100 per hour).<br />In the beginning, Reach Out’s revenue model worked very well and its six month statement of financial activities was healthy with a small surplus.<br />Initially the revenue ensured a success of several thousand dollars.<br />Sources of Finance<br />Neil used personal funds for setting up Reach out. This is an internal source of finance. He did consider a short term loan and a community grant...<br />Write down one advantage and one disadvantage of each.<br />Short term Loan<br />External source of finance. He would have had to pay interest charges on the loan meaning increased business costs. He would have to pay it back over regular instalments. Money would have been obtained straight away and used immediately. He could have managed the payments in agreement with the bank. He possibly didn’t want to commit to owing so much at the start which is why he funded the start-up costs himself.<br />Don’t forget that they may not have been granted this loan after applying for it. Reach Out could be seen as a risky business as it is new and small.<br />Community grant<br />From the local public authorities – non repayable. Government often offers financial aid to support business activities. This can be for small business start-ups, Offered as one lump sum – one off payment. Received immediately and can be used straight away. Hard to obtain, but Reach Out would have possibly been eligible considering the type of organization it is. Doesn’t have to be repaid, so better than a loan as it reduces costs for Reach Out.<br />Reach Out Is an NPO. Hard to obtain finance. Uses surplus to achieve goals. Limited sources of funding available.<br />What other sources of finance are available for reach Out?<br /> Overdraft<br /> Family and friends<br /> Sponsorship<br /> Government subsidies<br /> Donations<br /> Venture capitalists and business angels<br />For each of the above, write down one advantage and one disadvantage from page 337 in IBO book.<br />Overdraft<br />Although overdrafts can demand a relatively high rate of interest, they are usually more cost effective than bank loans.<br />An overdraft provides flexibility for a business that may face cash flow problems from time to time; therefore, it may not be appropriate for Neil’s brand and product development plan.<br />Loan Capital<br />This is a medium to long term source of finance that would be able to generate enough capital to support the brand and product development plan. However, a loan will require interest payments and this may cause Reach Out to be a highly geared company; thus, lowering prospects for future sources of finance.<br />Personal Funds<br />Personal funds from Neil - This would be an easy way to get additional capital that would avoid interest payments. However, Neil already supplied the start-up capital for Reach Out and he may not want to expose himself to additional risk nor may have additional capital to give.<br />Family and Friends<br />Family and Friends – This is also an easy way to get additional capital and both Neil and Laura could ask their friends and family thus spreading the liability. However, this source of finance may not be sufficient to fund Neil’s product and brand development scheme and borrowing from family and friends often provokes arguments and fallouts<br />Government Grants<br />Government Grants – Grants do not have to be paid back; however, they are often hard to obtain. However, given the societal benefit of Reach Out’s organizational objectives, a grant could be a viable source of finance.<br />Government Subsidies<br />These are often given to organizations that provide essential products/services in order to keep prices down for the consumer. Reach Out may be able to obtain a subsidy for their therapist scheme and use the cost savings to fund the brand and product development plan.<br />Sponsorships<br />The pharmaceutical company, N-Pharma, has already offered to sponsor Reach Out. This could amount to a sizable amount of money. However, Reach Out may not want to be affiliated with N-Pharma if they have engaged in unethical business practices in the past.<br />Choosing the right source of finance depends on...<br /> Cost<br /> Use of funds<br /> Status and size<br /> Financial situation<br /> Gearing<br />Reading: page 179 of Raffo book.<br />Surplus<br />Retained profit for a charity. Retained profit: value of profits that the business keeps hold of to use within the business. Benefits of using this is that the business does not rely on borrowing and interest payments. It can be accessed immediately. Not distributed to the owners therefore can be used to expand Reach Out. But it may not be sufficient enough for Reach Out to conduct its business, so other sources may still be needed.<br />Goodwill<br />This is the value of an organization’s image and reputation. It may also include the value of a firm’s customer base and its business connections. For example: A firm that treats its workers well is likely to receive a lot of goodwill from its staff.<br />Goodwill is the sum of customer and staff loyalty and can provide a major competitive edge for a business.<br />Line 93 – Laura was hopeful that Andrew’s appointment will generate goodwill towards Reach Out.<br />Goodwill increases the value of an organization therefore businesses seek to increase goodwill. Goodwill can increase customer loyalty because the public is likely to have a positive view of the organization. NPOs seek to improve goodwill through PR and other means because it is likely to increase the success of the organization.<br />However goodwill can be significantly reduced if the organization acts in an unsatisfactory manner. For example, Reach Out’s goodwill could be reduced by the failings of the therapists.<br />Write a list of non-financial facts that have had an impact on Reach Out’s financial situation<br /><br />Cash Flow<br /><br />Calculations<br />Cash Receipts Monthly cash receipts have increased by 636% from May 2010 to August 2010.<br />Expenses Monthly cash expenses have increased by 88% from May 2010 to August 2010.<br />Net Cash Flow Monthly cash inflow has increased by $11,600 from May 2010 to August 2010.<br /><br /><br />Comments<br />Substantial increase, but only for four months. Impossible to ascertain whether growth will continue at such a<br />high rate.<br />Charity contributions remain stable, but could fall due to economic recession.<br />Sales of PECS cards yet to start (future source of revenue).<br />Increase, but minimal compared to rise in cash receipts.<br />Costs and salaries remain stable (with the exception of Neil’s commission). This should aid future planning.<br />Production costs of PECS cards still unknown.<br />Solid increase resulting in a small surplus. However difficult to make an accurate judgment as records are only<br />for 4 months and the sale and production of PECS cards has yet to start.<br /><br />Cash flow<br />Effective financial management will mean that businesses have enough cash when it is needed.<br />• Cash flow is one of the most important aspects of any business.<br />• Cash flow should not be confused with profit - they are different concepts!<br />• Cash flow shows the money flowing into a business from sales, interest payments received, and any borrowings and the amount of money flowing out of a business through paying for wages, rent, interest owing, paying back loans, buying raw materials and so on.<br />Poor Cash Flow<br />• If the cash flowing into a business does not meet the cash flowing out, then eventually a company will be unable to meet its debts and could be forced out of business.<br />• Poor cash flow - represented by more cash flowing out than in - is the single biggest reason why many businesses, especially new business ventures, fail.<br />• The product or service they are providing may be excellent and the business could be sound in every other way but if cash flow is not managed, the business could disappear.<br />Causes of cash flow problems<br />• Overtrading<br />• Investing too much in fixed assets<br />• Stockpiling<br />• Allowing too much credit<br />• Taking too much credit<br />• Overborrowing<br />• Underestimating inflation<br />• Unforeseen expenditure<br />• Unexpected changes in demand<br />• Seasonal factors<br />• Poor financial management<br />Solutions to cash flow problems<br />• Controlling cash<br />• Obtaining maximum possible credit for purchases – delay payments of bills to allow time for receipt of income from customers.<br />• Getting goods to customers quickly and ensuring quick payment (collecting payment efficiently)<br />• Control debtors and improve credit control. Early payment should be encouraged.<br />• Minimise spending on fixed assets and keep cash in the business.<br />• Control costs e.g. Administrative and production costs.<br />• Sell some fixed assets for cash<br />• Borrow money (short term loans)<br />• Raise more share capital<br />• Only make essential purchases.<br />Page 339 of Raffo for other ways to resolve liquidity problems.<br />Reach Out’s cash flow<br />According to the extract from Reach Out’s monthly cash flow (Appendix 1) Reach Out is likely to achieve a reasonable surplus in its first year due to the increasing positive monthly net cash flow figures.<br />• There is a positive closing balance pre-start-up<br />• May has a negative closing balance.<br />• It is positive after that, highest closing balance in August.<br />• Monthly cash receipts have increased by 636% from May 2010 to August 2010.<br />• Substantial increase, but only for four months. Impossible to ascertain whether growth will continue at such a high rate.<br />• Charity contributions remain stable, but could fall due to economic recession.<br />• Sales of PECS cards yet to start (future source of revenue).<br />Expenses<br />• Monthly cash expenses have increased by 88% from May 2010 to August 2010.<br />• Increase, but minimal compared to rise in cash receipts.<br />• Costs and salaries remain stable (with the exception of Neil’s commission). This should aid future planning.<br />• Production costs of PECS cards still unknown.<br />Net cash flow<br />• Monthly cash inflow has increased by $11,600 from May 2010 to August 2010.<br />• Solid increase resulting in a small surplus. However difficult to make an accurate judgment as records are only for 4 months and the sale and production of PECS cards has yet to start.<br />Note: Do revise profit and loss accounts – this could come up!!<br /><br /><br />Budgets (HL)<br />A Budget is a financial plan for expected revenue and expenditure for an organization or a department within an organization. A budget is prepared in advance for a period of time, usually on a monthly, quarterly or annual basis<br />• Sales budgets<br />• Staffing budgets<br />• Production budgets<br />• Marketing budgets<br />• Zero-budgeting<br />• Flexible budget<br />Summarise each of these and their meaning using pages 378-379<br />Advantages of Budgeting<br />• Informs managers if they are going in the right direction, financially.<br />• Helps to measure objectives<br />• Helps to anticipate future problems before they arise<br />• Helps companies to set a contingency fund<br />• Provides guidance for decision-making<br />• Motivating for budget-holders – a sense of empowerment<br /><br />Disadvantages of Budgeting<br />• Unforeseen circumstances can cause a large difference between actual and budgeted figures<br />• Budget holders often over-estimate their budgets. This increases expenditure<br />• Time consuming: planning, setting, controlling, monitoring and reviewing.<br />• Ignores qualitative factors that can affect the financial performance of a business. E.g. CSR, motivation, brand development<br />• Can be considered inflexible.<br />Variance = actual outcome – budgeted outcome<br />The difference between the budgeted figure and the actual outcome<br />Favourable Variances (F) – beneficial to the organization. E.g. Actual costs are lower than estimated costs. Or sales outcome exceeds estimated sales.<br />Unfavourable Variances (A)– (known as adverse) financially detrimental to the organization. E.g. When costs are higher than expected or sales lower than estimated.<br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br />Reach Out Marketing<br />E-Commerce and Internet Technology<br /><br />• Blogs: Facebook and Twitter<br />• Podcasts<br />• Websites<br />• Emails<br />• Video clips<br /><br />E-commerce<br /><br />What are the advantages and disadvantages of using e-commerce to Reach Out and their customers (clients).<br />Advantages to Reach out<br /><br /> Give Reach Out the opportunity to raise additional revenue by selling advertising space e.g. sponsorship link.<br /> Respond to new competitors entering the market.<br /> Increase distribution by adding a ‘registration form’ for students interested in joining Reach Out.<br /> Advertising costs are reduced.<br /> The internet offers convenience and up to date information.<br /> Remove the need for a marketing agent.<br /> Blog: spreads word of mouth marketing (Viral marketing).<br /><br />Advantages to Customers<br /><br /> Gives the students the opportunity to develop learning beyond their time spent in Reach Out (virtual learning environment)<br /> Access to resources: “to provide online support for families of children with autism and to offer them communication resources at a greatly reduced price”.<br /> Reduced transport costs, constant access 24/7, locate away from Reach Out.<br /><br />Drawbacks of Ecommerce for Reach Out and customers<br /><br /> Set-up and running costs: ISP, paying for a professional web developer<br /> Laura is not a professional web developer.<br /> Spam, viruses, hackers, hardware and system failures, fraud, and customers might have limited access and understanding to technology.<br /> Less control over the information and messages sent to customers.<br /><br /><br />E-commerce (E-business) and the marketing mix<br /><br />What is the effect of e-commerce on the marketing mix?<br /><br />E-commerce and the Marketing Mix<br /><br />Price: competitive pricing is required as the PECS systems can be copied by many providers.<br /><br />Promotion: rely on e-mail to alert customers about its promotional activities<br /><br />Product: highlighting PECS as a clear Unique Selling Point.<br /><br />Place: Reach Out’s customers can access material from any place.<br /><br />Question<br />How feasible is it for Reach Out to rely on e-commerce?<br /><br />Feasibility of using ecommerce<br /><br /> Reach Out cannot rely on e-commerce as students need direct support and training.<br /> Reach Out could develop distance learning for students and helpers.<br /><br />Neil’s Marketing Plan<br /><br /> Neil has created three marketing options using a positioning strategy for Laura to consider.<br /><br /> This analytical tool ranks Reach Out’s business activities in relation to others in the market.<br /><br /> Positioning is used to determine whether Reach Out’s products, and services, are a high or low quality. (Position maps)<br /><br />1) Identify<br /><br />Identify the competitive advantage:<br /><br /> PECS are used as a Unique Selling Point (product differentiation) to make their business stand out from those offered by competitions.<br /><br /> Reach Out has achieved cost leadership by offering low prices for the PECS cards, which Laura makes herself.<br /><br /> A positive image has been created from Reach Out’s charitable status, community projects and Laura’s effective use of internet courage (Facebook blogs, twitter).<br /><br /><br />2) Decide<br /><br />Decide on which marketing technique should be marketed from the Neil’s options.<br /><br /><br />Option 1 (New Price Structure)<br />Modify pricing structure:<br /><br />Charging students higher fees ‘could’ be an example of prestige or psychological pricing as Reach Out is trying to associate itself with a high quality service.<br /><br />Also, contribution pricing is used in this strategy as it covers any future spending plans: employing professional therapists or building new facilities.<br /><br />However, this might generate negative PR as it conflicts with Reach Out’s ethical principles.<br /><br />Option 2 (Creating a Family Brand)<br />Brand and product development:<br />What is meant by family branding?<br /><br />Discuss the extent to which family branding is likely to be successful for Reach Out?<br /><br />Family Branding<br /><br />A brand is a name, term, symbol or design that allows consumers to identify the good and services of a business.<br />Reach out!<br /><br />Family brand is where a business has a brand which includes a number of different products, for example, the therapist scheme and accessories (T-shirt, mugs and computer mouse mats).<br />Discuss the extent to which family branding is likely to be successful for Reach Out?<br /><br /><br />Benefits of family branding:<br /><br /> Create brand loyalty (demand becomes price inelastic).<br /> Differentiate Reach Out’s business activities from its competition (brand extension strategy).<br /> Greater flexibility when making pricing decisions, Reach Out can still achieve its current commitment to sell the PECS cards at lower prices by charging premium prices for the therapy sessions, and accessories.<br /> To help recognition of Reach Out’s products and services, eventually increasing its market share.<br /> Create a barrier to entry will make it difficult for other businesses to enter the same market.<br /><br />Problems with family branding:<br /><br /> It will be hard to brand PECS which is a generic brand.<br /> Establishing a successful brand will cost $100,000.<br /> Brand development conflicts with the Reach Out’s vision and mission statements to offer resources at a reduced price.<br /> Consistent quality will have to be maintained across the different products. Bad publicity for one product can lead to problems for all products and services.<br /><br />Option 3 Obtain Sponsorship:<br /><br />As part of any sponsorship deal Reach Out would have to add a link from Laura’s blog to N-Pharma’s website. This deal connects to the Corporate Social Responsibility area of the syllabus and gives N-Pharma the opportunity to morally recognise and act towards their different stakeholders. However, Laura regards this sponsorship as a shallow PR exercise from an established Multi-National.<br /><br />3) Implementation<br /><br />Laura has rejected these options, considering branding as a long term option. However, she is considering the following:<br /><br /> The PECS cards will still be subsidized.<br /><br /> Neil has start market research into the prices of three publishing companies that were currently using PECS.<br /><br /> Michael porter suggested that a firm cannot provide cost leadership and high quality simultaneously.<br /><br />However, it is important that Laura identifies a strategic focus and develop key areas of Reach Out.<br /><br />The following business tools might help:<br /><br />Ansoff<br />Porters<br />Perception Maps<br />SWOT<br />STEEPLE<br />Five Forces Analysis<br /><br />Additional Strategies<br /><br />1) Asset-led marketing<br /><br />Focus on Reach out’s core competencies or key strengths:<br /><br /> Specialist teaching<br /> PECS cards<br /> Andrew Grandin (Silver medallist)<br /> Good leadership and practice<br /> Laura’s Blog<br /> Laura’s enthusiasm to make Reach Out successful<br /><br />2) Social Marketing<br />Kotler defines social marketing as "differing from other areas of marketing only with respect to the objectives of the marketer and his or her organization. Social marketing seeks to influence social behaviours not to benefit the marketer, but to benefit the target audience and the general society.”<br />3) Social Marketing and Product<br /><br />People have identified the need for advice and information about autism, and the lack of free medical care has created a genuine problem. Laura’s blog is seen as good solution for that problem.<br /><br />4) Social Marketing and Price<br /><br />"Price" refers to what the consumer must do in order to obtain the social marketing product. If the benefits are perceived as greater than their costs, chances of trial and adoption of the product is much greater. Laura has offered free advice, subsidized PECS cards and competitively priced therapy sessions.<br /><br />5) Social Marketing and Place<br /><br />"Place" describes the way that the product reaches the consumer.<br /><br />For a tangible product, this refers to the distribution system—PECS cards, therapy sessions delivered at Reach Out’s premises.<br /><br />For an intangible product, place is less clear-cut, but refers to decisions about the channels through which consumers are reached with information or training, e.g. Laura’s blog.<br /><br />6) Social Marketing and Promotion<br /><br />Finally, the last "P" is promotion. Promotion consists of the integrated use of advertising, public relations, promotions, media advocacy, personal selling and community promotion campaigns.<br /><br />7) Ethical Marketing<br /><br />Ethical marketing refers to the application of ethics into the marketing process. Laura has rejected N-Pharma’s sponsorship offer, which is a company accused of using animal research.<br /><br />Laura, probably, feels that a multi – national company could exploit her vulnerable target market. Laura’s blog is helping an ethical cause and society.<br /><br />Researching Publishing Companies<br /><br />Neil is researching the prices of three publishing companies, A, B and C, that were currently selling PECS cards.<br /><br />List any additional types of data that Neil might need to consider before choosing a publishing company.<br /><br />Additional Research Data<br /><br /> Style, shape, form and colour of the PECS cards (developing new product ideas).<br /><br /> Whether or not the customers would want products offered by publisher A, B and C (assessing their reaction).<br /><br /> What people are prepared to pay for PECS cards.<br /><br /> Information about the consumers targeted for PECS (consumer profiling: income, spending habits, attitudes, lifestyles).<br /><br /> The price of PECS cards offered by Reach Out’s competitors.<br /><br /> Forecast sales levels (market trends).<br /><br /> Location of the publishing companies (deliver costs)<br /><br /><br /><br /><br /><br /><br />Research Methods<br /><br />Secondary Research<br /><br />Information that already exists:<br /><br />Internal data: existing company reports and materials provided by the publishers selling PECS on their websites.<br /><br />External data: general publications (yellow pages) or internet pages recommending a particular publisher.<br /><br />Primary Research<br />Finding information which did not exist before research began:<br /><br />Conduct interviews with representatives from publishing companies.<br /><br />IT based research through email correspondence.<br /><br />Observations and focus groups could be used to collect feedback from customers (people with autism).<br /><br />Questionnaires could be used to collect the opinions from professionals, therapists, carers and students<br /><br />Questionnaires<br /><br />Open Questions<br />For Example:<br /><br />What do you feel is the best thing about the PECS cards provided by company A?<br /><br /> Elicit or obtain “rich” qualitative data<br /> Encourage thought and freedom of expression.<br /> May discourage responses from less literate respondents.<br /> Take longer to answer and may put some people off.<br /> Are more difficult to analyse – responses can be misinterpreted.<br /><br /><br /><br /><br /><br /><br />Closed Questions<br /><br />For Example:<br />How often do you use PECS products?<br />Weekly __ Monthly __ Three times a year __ Never__<br /><br /> Elicit to obtain quantitative data<br /> Can encourage ‘mindless’ replies<br /> Are easy for all literacy levels to respond to.<br /> Are quick to answer and may improve your response rate.<br /> Are easy to ‘code’ and analyse<br /><br />Market Research<br /><br />What are the benefits and problems of Neil conducting market research?<br /><br />Benefits of Market Research<br /><br /> An aid to decision making to help Laura and Neil identify the best way forward.<br /> Reduces the risk of failure.<br /> Estimates the size of the potential market for Reach Out’s services.<br /><br />Problems of Market Research<br /><br /> Human behaviour – responses of consumers might be unpredictable or dishonest.<br /> Sampling and bias – not all the views of the consumers can be collected in the market place.<br /><br />Research Sampling<br /><br /> Random Sampling: gives each member of a group a chance of being chosen.<br /><br /> Stratified Sampling: sample is divided into segments (high and low income earners).<br /><br /> Quota Sampling: the population being segmented into a number of groups (age and gender).<br /><br /> Cluster Sampling: separating population in different geographical areas.<br /><br /><br /><br />Marketing Mix (7 Ps)<br /><br />Product<br /><br /> Tangible Products: PECS<br /> Intangibles: therapy services, blog (information and advice exchange).<br /><br />Price<br /><br /> PECS cards and unqualified therapists: marginal Cost Pricing, penetration pricing (loss leader) and discount pricing.<br /><br />Promotion<br /><br />List the above-the-line and below-the-line promotional techniques mentioned so far.<br />Can you identify any additional promotional strategies that could be used by Reach Out.<br /><br />Promotional Techniques<br />ATL:<br />The Internet<br />BTL<br />Public Relations: Sponsorship.<br />Merchandizing: T-shirts, mugs, mouse mats<br />Direct mailing and email<br /><br />Extension Strategies<br /><br />ATL<br />Newspapers: teaching and education publications.<br />Local Radio Stations.<br />Posters.<br />BTL<br />Direct mailing.<br />Exhibitions and Trade Fairs.<br />Public Relations: support autistic students in local school<br /><br />Place<br /><br /> Laura’s production of PECS cards: Zero level distribution channel.<br /> Laura’s blog: Business to customer or website (B2C).<br /><br />People (Customer Relations Management)<br /><br /> Laura’s blog has created a positive reputation for Reach Out, using word by mouth promotion.<br /> However, the quality of Reach Out’s service has been effected by unqualified therapists<br /><br />Process<br /><br /> Providing cheap PECS cards to help their customers during a time of recession.<br /> Additionally, the company is helping community based projects<br /><br />Physical Evidence<br /><br />Can Reach Out’s facilities, services and products justify their fees charged to customers?<br /><br />Revise marketing Objectives and social marketing.<br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br />Reach Out – Topic 6<br />There are 3 stages to Business Strategy<br /><br />Stage 1: Strategic Analysis – Determining the current position of the organization<br />Stage 2: Strategic Choices – Determining where the organization is headed.<br />Stage 3: Strategic Implementation – Determining how the organization should get there.<br /><br />Stage 1: Strategic analysis—Where is the business now?<br /><br />Consider Reach Out’s position by analysing its internal and external situation. This analysis will dictate the nature of its future strategy. The opportunities and threats faced will vary according to the nature of the business.<br /><br />Question: Identify two strengths and two weaknesses of the present “product” strategy.<br /><br />The “Product” strategy<br />Strengths<br />PECS cards are a good choice because they satisfy the needs of the target market.<br />The service aspect of Reach Out complements and supports their business objectives.<br />Weaknesses<br /><br />PECS – cost a lot to produce, need start-up capital to finance the production of cards.<br /><br />SERVICE – Vulnerable and exposed because of reliance on knowledge and expertise of staff.<br /><br />Stage 2: Strategic choice—Where is the business aiming to be?<br /><br />Consider Reach Out’s objectives in the short, medium and long term. To achieve this, the business must examine market opportunities and threats, and then plan for the future.<br /><br />Question<br /><br />Explain how continuing a “Single Brand” strategy might improve Reach Out competitive position?<br /><br />The Single Brand Strategy<br /><br />Messages can be communicated more easily and accurately to Reach Out’s consumers in its target market. This can help establish the firm’s brand image and the goodwill it requires from potential customers to expand. Therefore, this can have the effect of raising sales in the future.<br /><br />A single brand might also have the effect of increasing the brand’s quality image. This can give the impression of a more prestigious charity organization amongst its customers. This can augment/increase the levels of donations given to Reach Out.<br /><br />Single, unified brands also allow Reach Out to better differentiate its services from other charitable organization and gives it a unique selling point that which would increase sales.<br /><br />Stage 3: Strategic implementation—how is the business going to achieve its objectives?<br /><br /><br />Question: Applying suitable tools such as Ansoff’s growth matrix and Porter’s generic strategies, and using information contained in the case study, evaluate the Option 1, Option 2 and Option 3 growth strategies available to Reach Out.<br /><br />Firstly, identify Reach Out’s objectives:<br /><br /> To survive, to make enough revenue to sustainable surplus.<br /> To provide a service to the autistic community.<br /> To promote support for the plight of families of autistic children.<br /> To provide learning materials at a cheaper price.<br />Each Option should be evaluated by considering some the following areas:<br /><br /> Risk<br /> External factors: recession, competitive market, growth opportunities<br /> Meeting stakeholders needs: Community<br /> Target market: Autistic people and carers<br /><br />Consider the Growth Strategies for each strategy:<br /><br />PECS – (USP) makes Reach Out’s products stand out from other providers in the market.<br /><br />Blog – Laura’s blog is seen as having “first mover advantage” in the market. She has established a good reputation and loyal customer base.<br /><br />Market Leadership - offering competitive fees for therapy session and subsidized PECS cards might create market leadership.<br /><br />Branding – creates recognition for Reach Out’s products and an opportunity for growth.<br /><br />Product Development – whereby Reach Out aims at selling new products to existing markets.<br /><br /><br />a) Ansoff provides four strategic opportunities for enlarging a business. Reach Out can use:<br /><br />Market Penetration – focusing on the existing products offered by Reach out. Subsidizing the PECS cards and offering affordable fees for therapy sessions is a risk growth strategy.<br /><br />Product Development – offering t-shirts, mugs and mouse mats strategy is a medium-risk growth strategy or brand extension strategy (family brand).<br /><br />b) Strategic Alliance<br /><br />An affiliation with N-Pharma allows Reach Out to share costs of product development, operations and marketing (using sponsorship money).<br /><br />Affiliated businesses remain independent.<br /><br />c) Porter’s<br /><br />Bargaining power of suppliers – Reach Out can conduct technical research to find competitively priced accessories<br /><br />Bargaining power of buyers – Reach Out’s customers might switch to a different company or substitute their products/service.<br /><br />Threat of new entrants – strong brand, subsidize PECS cards.<br /><br />Substitutes – a new ‘ebusiness’ might provide PECS at a competitive price.<br /><br />Rivalry among existing firms – offering therapy sessions at lower price compared to existing companies.<br /><br />Finally, analyse the constraints of implementing any decision:<br /><br />Reach Out might not have the resources to achieve its organizational aims and objectives. For example, Reach Out will require additional finance if they decide to employ qualified therapists and improve the quality of their service.<br /><br />Stakeholder interests might conflict with Neil’s plans, e.g. the local community and multinational corporations<br /><br />Strengths (and weaknesses) to be developed, for example, the quality of Andrew Grandin’s performance and management decisions at Reach Out need improvement with additional support and training. Using quality management strategies will help Reach Out with these issues.<br /><br />Reach Out will need to plan for any changes in the long-term, for example, new entrants into the market or a recession or review the external business environment (e.g. the state of the economy). Cost control will present an important part of any future strategy.<br /><br />Customers demand better quality products and services at competitive prices. Customers may also change their tastes and habits, such as the desire to purchase additional support material to help their autistic children.<br /><br /><br /><br />Further reading: Change and Management of Change, P.Huoang, Pages 138 to 150<br /><br />Topic 5 & Reach Out<br />Topic 5 is not included in this revision booklet. We will have a lesson on quality which you should read over.<br />We also recommend you revise the chapter on break even and contribution. We will have a break even lesson – this could come up too.<br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br /><br />Top tips for the upcoming B&M exams<br />By Paul Hoang<br /><br />Here is the first of several top tips for tackling the exams in May 2010…<br /><br />Top Revision Tips<br />“Proper preparation prevents poor performance” - The 5 P’s of effective exam preparation<br />Tip #1 – Learn the command terms<br />It is crucial that command words are read properly in the examinations. Each command word in a question indicates to students the skill level that is being tested. Hence, if asked to calculate the break-even point for a business, there is no need to define or to explain the concept of break-even. Refer to the Syllabus Guide (pages 74 to 76) for an explanation and example of each of these command words.<br />There are 4 skills levels for all Group 3 subjects. Do you know the skills level for each of these command terms? If not, ask your teacher!<br />• Analyse<br />• Comment on<br />• Classify<br />• Justify<br />• Examine<br />• Define<br />• Explain<br />• Outline<br />• Recommend<br />Note: if using past examination questions for your revision, the word ‘assess’ is no longer a command term in the new B&M syllabus (first examination in 2009).<br /><br />The Paper 1 Examination<br />Paper 1 is ‘difficult’ in that it seeks extensive analytical and critical thinking skills. The Reach Out case study paper will assess a student’s skills of problem identification, data handling and analysis, critical thinking, judgemental ability, logical reasoning and justified decision making.<br />The guidelines here should enable students to be better prepared to tackle the Paper 1 questions in the exam. It is by no means an exhaustive set of guidelines and alternative or additional approaches can be used, as suggested by your teachers.<br />What to do with the Reach Out Case Study<br />1. Make a copy of the case study - one as an original reference and one to write notes on. You may want to photocopy this on A3 paper so that there is more space for you to make notes at the sides. Key theories, decisions, constraints, opportunities or problems can be written in the margins for future reference.<br />2. Read through the Reach Out case study carefully to get an overall feeling and idea about the business, the people involved and the problems the business faces. Do this twice!<br />3. Make sure that you understand all the issues arising from the case study. Use a dictionary to look up key terms or words that you do not understand.<br />4. Use one copy of the case study to highlight all possible key terms. Make sure that you can define each and every one of these terms in the context of the Reach Out case study. Definition questions will appear in the examination.<br />5. Try answering some of the Practise Questions from past exam papers (in the context of the Reach Out case study). Your teachers can download some sample ‘mock’ exam papers for Reach Out on the OCC resources section.<br />Whilst answering P1 questions, it is important to remember the following:<br />• Avoid copying large chunks of the Reach Out case study, even if these are in quotation marks, as this wastes time and does not really reveal a candidate’s level of understanding.<br />• Information and quantitative data presented in the case study should be used to support written answers.<br />• Refer to the mark allocations for each question when writing your answers.<br />Source: adapted from Business and Management – for use with the IB Diploma Programme, by Paul Hoang, IBID Press, ISBN: 978-1-876659-63-9<br /><br /><br />Reach Out – Top 10 activities to prepare for the case study<br />The second blog entry on teaching and learning strategies for the pre-seen case study 2010…<br />Top 10 Preparation Activities for Reach Out<br />1. Identify and define all the key terms in the case study (there are over 80 key terms in this case study and any of these can be asked in the actual exam!)<br />2. Produce a time line of events (read the case to produce a chronological list of events and the people involved).<br />3. Produce a personnel profile of all people mentioned in Reach Out: who they are, their roles, their strengths/weaknesses and so forth.<br />4. Assess the liquidity position of Reach Out using ratio analysis and comment on your findings.<br />5. Produce a stakeholder map (see Unit 1.4) for Reach Out. Try to distinguish between Reach Out’s internal and external stakeholders.<br />6. List all the problems faced by Reach Out, under the headings of either: Finance, Personnel, Marketing or Production. Alternatively, the problems could be classified as internal and external constraints/problems. For HL students, consider the sources of conflict at Reach Out and produce a force field analysis (Unit 1.8) for Reach Out.<br />7. Conduct a fully applied SWOT analysis for Reach Out. To test your understanding, you could produce another jumbled up version of the SWOT analysis to see if you can place the points in the correct category (strengths, weaknesses, opportunities or threats).<br />8. Conduct an overall PEST analysis for Reach Out by examining the opportunities and threats outlined in the case study. This will involve an analysis of the data in the appendices.<br />9. Produce a podcast of the Reach Out case study. You can then listen to the case study on your media player; ideal for auditory learners.<br />10. Apply relevant Business & Management theory to the Reach Out case study. You could examine the strategic options available to Reach Out using Ansoff’s Matrix, Five Forces analysis or Porter’s generic strategies (see Unit 1.7).<br />Finally, HL students should note that Section C of the Paper 1 examination will come with additional (unseen) information and data in order to address the compulsory question on Business Strategy.<br />Good luck with the preparations!<br /><br />Top tips for the upcoming B&M exams #2<br />Here is the second of several top tips for tackling the exams in May 2010 - Tip #2 – Learn the structure of the exam papers…<br />Due to the intertwining topics in Business & Management, pre-issued case studies are useful in promoting a holistic approach to the study of the subject. Paper 1 assesses all six topics (five for SL students) of the Business & Management syllabus and also carries the largest component weighting in the examination (for HL students). It is based on a pre-issued case study about a hypothetical business. The Paper 1 examination consists of the following structure:<br />• Section A (HL and SL) - answer any two out of three structured questions (30 marks)<br />• Section B (HL and SL) – answer the one compulsory, evaluative structured question (20 marks)<br />• Section C (HL only) – answer the one compulsory strategic decision-making question using extension material (30 marks)<br />© IBO, 2007<br />The Paper 1 Examination:<br />Level Total Marks Weighting (%) Timing (hours)<br />SL 50 35 1 ¼<br />HL 80 40 2 ¼<br />The Paper 2 examination consists of the following structure:<br />• Section A (HL and SL) - answer any one out of two questions based on a quantitative aspect (25 marks for HL, 20 marks for SL)<br />• Section B (HL and SL) - answer two out of three structured questions (50 marks for HL, 40 marks for SL)<br />Level Total Marks Weighting (%) Timing (hours)<br />SL 60 40 1 ¾<br />HL 75 35 2 ¼<br />Top tips for the upcoming B&M exams #3<br />Here is the third of several top tips for tackling the exams in May 2010 - Top Tip #3: Plan your revision carefully…<br />“Unless commitment is made, there are only promises and hopes; but no plans.” Peter F. Drucker, Management guru (1909 - 2005)<br /><br />Trying to learn the whole Business & Management syllabus without a proper plan is not going to work. A more effective technique is to revise sections of the syllabus in manageable sessions, following a well structured revision timetable. For example, you might want to revise Finance and Accounting in one particular revision session, perhaps focusing on one or two aspects, such as cash flow forecasting (Unit 3.3) or sources of finance (Unit 3.1).<br />The HL B&M Internal Assessment requires students to propose an Action Plan (as part of the Research Proposal)’; producing a revision schedule is a similar process. Whatever you do, don’t leave everything until the last minute – you simply cannot revise the entire B&M curriculum in one or two nights. Without a plan, you simply don’t know where you’re going and how you’re going to get there. This means valuable revision time is likely to be wasted. Remember the famous saying that failing to plan is planning to fail – and we don’t want that! Below is a list of some of the things you could try as part of your revision plan:<br />• Draw up a revision plan for each week – and stick to it! Some flexibility might be necessary but remain focused and disciplined.<br />• Use the B&M syllabus as a starting point when planning your revision.<br />• Take careful note of the “Learning Outcomes” in the syllabus – examiners use these when setting questions!<br />• Allocate more time to the topic areas that you find most difficult.<br />• Build in time for sufficient rest breaks and recreation – a refreshed mind is a more productive one.<br />• Practice, practice, practice using past exam papers.<br />• Don’t procrastinate – turn off your mobile phone, home entertainment systems and the Internet (personally, I think Facebook and YouTube are great – but they must be the world’s best procrastination tools!)<br />Finally, it is vital to build in revision time to learn your quantitative methods. There are plenty of formulae to learn – not all of them are given in the Formulae Booklet, including:<br />• Payback period (Unit 3.2)<br />• Average costs (Unit 5.2)<br />• Break-even output (Unit 5.3)<br />• Margin of safety (Unit 5.3)<br />• Closing balance (Unit 3.3)<br />• LIFO / FIFO (Unit 3.5)<br />• Net profit (Unit 3.5)<br />• Full costing (Unit 4.4)<br />• Reducing balance depreciation (Unit 3.5)<br />• Variance (Unit 3.4)<br />Good luck with the planning!Unknownnoreply@blogger.com15tag:blogger.com,1999:blog-31971371.post-65321090632575569272008-06-07T16:45:00.000-07:002008-06-07T16:46:35.848-07:00New Committee for 2008/9 Peruvian Cricket Federation<table class="MsoTableGrid" style="border: medium none ; border-collapse: collapse;" border="1" cellpadding="0" cellspacing="0"> <tbody><tr style=""> <td style="border: 1pt solid windowtext; padding: 0in 5.4pt; width: 108.05pt;" valign="top" width="144"> <p class="MsoNormal"><b style=""><span style="">Position<o:p></o:p></span></b></p> </td> <td style="border-style: solid solid solid none; border-color: windowtext windowtext windowtext -moz-use-text-color; border-width: 1pt 1pt 1pt medium; padding: 0in 5.4pt; width: 108.05pt;" valign="top" width="144"> <p class="MsoNormal"><b style=""><span style="">Nominee<o:p></o:p></span></b></p> </td> <td style="border-style: solid solid solid none; border-color: windowtext windowtext windowtext -moz-use-text-color; border-width: 1pt 1pt 1pt medium; padding: 0in 5.4pt; width: 108.05pt;" valign="top" width="144"> <p class="MsoNormal"><b style=""><span style="">Nominated by:<o:p></o:p></span></b></p> </td> <td style="border-style: solid solid solid none; border-color: windowtext windowtext windowtext -moz-use-text-color; border-width: 1pt 1pt 1pt medium; padding: 0in 5.4pt; width: 108.1pt;" valign="top" width="144"> <p class="MsoNormal"><b style=""><span style="">Seconded by:<o:p></o:p></span></b></p> </td> </tr> <tr style=""> <td style="border-style: none solid solid; border-color: -moz-use-text-color windowtext windowtext; border-width: medium 1pt 1pt; padding: 0in 5.4pt; width: 108.05pt;" width="144"> <p class="MsoNormal"><span style="">President<o:p></o:p></span></p> <p class="MsoNormal"><span style=""><o:p> </o:p></span></p> </td> <td style="border-style: none solid solid none; border-color: -moz-use-text-color windowtext windowtext -moz-use-text-color; border-width: medium 1pt 1pt medium; padding: 0in 5.4pt; width: 108.05pt;" width="144"> <p class="MsoNormal"><b style=""><i style=""><span style="">Jorge Pancorvo<o:p></o:p></span></i></b></p> </td> <td style="border-style: none solid solid none; border-color: -moz-use-text-color windowtext windowtext -moz-use-text-color; border-width: medium 1pt 1pt medium; padding: 0in 5.4pt; width: 108.05pt;" width="144"> <p class="MsoNormal"><span style="">John Bell<o:p></o:p></span></p> </td> <td style="border-style: none solid solid none; border-color: -moz-use-text-color windowtext windowtext -moz-use-text-color; border-width: medium 1pt 1pt medium; padding: 0in 5.4pt; width: 108.1pt;" width="144"> <p class="MsoNormal"><span style="">Tony Sanford<o:p></o:p></span></p> </td> </tr> <tr style=""> <td style="border-style: none solid solid; border-color: -moz-use-text-color windowtext windowtext; border-width: medium 1pt 1pt; padding: 0in 5.4pt; width: 108.05pt;" width="144"> <p class="MsoNormal"><span style="">Chairman<o:p></o:p></span></p> <p class="MsoNormal"><span style=""><o:p> </o:p></span></p> </td> <td style="border-style: none solid solid none; border-color: -moz-use-text-color windowtext windowtext -moz-use-text-color; border-width: medium 1pt 1pt medium; padding: 0in 5.4pt; width: 108.05pt;" width="144"> <p class="MsoNormal"><b style=""><i style=""><span style="">Chris Abbott<o:p></o:p></span></i></b></p> </td> <td style="border-style: none solid solid none; border-color: -moz-use-text-color windowtext windowtext -moz-use-text-color; border-width: medium 1pt 1pt medium; padding: 0in 5.4pt; width: 108.05pt;" width="144"> <p class="MsoNormal"><span style="">Harry Hildebrand<o:p></o:p></span></p> </td> <td style="border-style: none solid solid none; border-color: -moz-use-text-color windowtext windowtext -moz-use-text-color; border-width: medium 1pt 1pt medium; padding: 0in 5.4pt; width: 108.1pt;" width="144"> <p class="MsoNormal"><span style="">Miles Buesst<o:p></o:p></span></p> </td> </tr> <tr style=""> <td style="border-style: none solid solid; border-color: -moz-use-text-color windowtext windowtext; border-width: medium 1pt 1pt; padding: 0in 5.4pt; width: 108.05pt;" width="144"> <p class="MsoNormal"><span style="">Secretary<o:p></o:p></span></p> <p class="MsoNormal"><span style=""><o:p> </o:p></span></p> </td> <td style="border-style: none solid solid none; border-color: -moz-use-text-color windowtext windowtext -moz-use-text-color; border-width: medium 1pt 1pt medium; padding: 0in 5.4pt; width: 108.05pt;" width="144"> <p class="MsoNormal"><b style=""><i style=""><span style="">Harry H<o:p></o:p></span></i></b></p> </td> <td style="border-style: none solid solid none; border-color: -moz-use-text-color windowtext windowtext -moz-use-text-color; border-width: medium 1pt 1pt medium; padding: 0in 5.4pt; width: 108.05pt;" width="144"> <p class="MsoNormal"><span style="">Chris Abbott<o:p></o:p></span></p> </td> <td style="border-style: none solid solid none; border-color: -moz-use-text-color windowtext windowtext -moz-use-text-color; border-width: medium 1pt 1pt medium; padding: 0in 5.4pt; width: 108.1pt;" width="144"> <p class="MsoNormal"><span style="">Vivian Ash<o:p></o:p></span></p> </td> </tr> <tr style=""> <td style="border-style: none solid solid; border-color: -moz-use-text-color windowtext windowtext; border-width: medium 1pt 1pt; padding: 0in 5.4pt; width: 108.05pt;" width="144"> <p class="MsoNormal"><span style="">Treasurer<o:p></o:p></span></p> <p class="MsoNormal"><span style=""><o:p> </o:p></span></p> </td> <td style="border-style: none solid solid none; border-color: -moz-use-text-color windowtext windowtext -moz-use-text-color; border-width: medium 1pt 1pt medium; padding: 0in 5.4pt; width: 108.05pt;" width="144"> <p class="MsoNormal"><b style=""><i style=""><span style="">Tony Sanford<o:p></o:p></span></i></b></p> </td> <td style="border-style: none solid solid none; border-color: -moz-use-text-color windowtext windowtext -moz-use-text-color; border-width: medium 1pt 1pt medium; padding: 0in 5.4pt; width: 108.05pt;" width="144"> <p class="MsoNormal"><span style="">Julian Walter<o:p></o:p></span></p> </td> <td style="border-style: none solid solid none; border-color: -moz-use-text-color windowtext windowtext -moz-use-text-color; border-width: medium 1pt 1pt medium; padding: 0in 5.4pt; width: 108.1pt;" width="144"> <p class="MsoNormal"><span style="">Alex Bayly<o:p></o:p></span></p> </td> </tr> <tr style=""> <td style="border-style: none solid solid; border-color: -moz-use-text-color windowtext windowtext; border-width: medium 1pt 1pt; padding: 0in 5.4pt; width: 108.05pt;" width="144"> <p class="MsoNormal"><span style="">Committee member<o:p></o:p></span></p> </td> <td style="border-style: none solid solid none; border-color: -moz-use-text-color windowtext windowtext -moz-use-text-color; border-width: medium 1pt 1pt medium; padding: 0in 5.4pt; width: 108.05pt;" width="144"> <p class="MsoNormal"><b style=""><i style=""><span style="">Julian Walter<o:p></o:p></span></i></b></p> </td> <td style="border-style: none solid solid none; border-color: -moz-use-text-color windowtext windowtext -moz-use-text-color; border-width: medium 1pt 1pt medium; padding: 0in 5.4pt; width: 108.05pt;" width="144"> <p class="MsoNormal"><span style="">Alex Bayly<o:p></o:p></span></p> </td> <td style="border-style: none solid solid none; border-color: -moz-use-text-color windowtext windowtext -moz-use-text-color; border-width: medium 1pt 1pt medium; padding: 0in 5.4pt; width: 108.1pt;" width="144"> <p class="MsoNormal"><span style="">Tom Jolly<o:p></o:p></span></p> </td> </tr> <tr style=""> <td style="border-style: none solid solid; border-color: -moz-use-text-color windowtext windowtext; border-width: medium 1pt 1pt; padding: 0in 5.4pt; width: 108.05pt;" width="144"> <p class="MsoNormal"><span style="">Committee member<o:p></o:p></span></p> </td> <td style="border-style: none solid solid none; border-color: -moz-use-text-color windowtext windowtext -moz-use-text-color; border-width: medium 1pt 1pt medium; padding: 0in 5.4pt; width: 108.05pt;" width="144"> <p class="MsoNormal"><st1:personname st="on"><b style=""><i style=""><span style="">Giresh Chugani</span></i></b></st1:PersonName><b style=""><i style=""><span style=""><o:p></o:p></span></i></b></p> </td> <td style="border-style: none solid solid none; border-color: -moz-use-text-color windowtext windowtext -moz-use-text-color; border-width: medium 1pt 1pt medium; padding: 0in 5.4pt; width: 108.05pt;" width="144"> <p class="MsoNormal"><span style="">Viv Ash<o:p></o:p></span></p> </td> <td style="border-style: none solid solid none; border-color: -moz-use-text-color windowtext windowtext -moz-use-text-color; border-width: medium 1pt 1pt medium; padding: 0in 5.4pt; width: 108.1pt;" width="144"> <p class="MsoNormal"><span style="">Chris Abbott<o:p></o:p></span></p> </td> </tr> <tr style=""> <td style="border-style: none solid solid; border-color: -moz-use-text-color windowtext windowtext; border-width: medium 1pt 1pt; padding: 0in 5.4pt; width: 108.05pt;" width="144"> <p class="MsoNormal"><span style="">Committee member<o:p></o:p></span></p> </td> <td style="border-style: none solid solid none; border-color: -moz-use-text-color windowtext windowtext -moz-use-text-color; border-width: medium 1pt 1pt medium; padding: 0in 5.4pt; width: 108.05pt;" width="144"> <p class="MsoNormal"><b style=""><i style=""><span style="">Miles Buesst<o:p></o:p></span></i></b></p> </td> <td style="border-style: none solid solid none; border-color: -moz-use-text-color windowtext windowtext -moz-use-text-color; border-width: medium 1pt 1pt medium; padding: 0in 5.4pt; width: 108.05pt;" width="144"> <p class="MsoNormal"><span style="">Harry Hildebrand<o:p></o:p></span></p> </td> <td style="border-style: none solid solid none; border-color: -moz-use-text-color windowtext windowtext -moz-use-text-color; border-width: medium 1pt 1pt medium; padding: 0in 5.4pt; width: 108.1pt;" width="144"> <p class="MsoNormal"><span style="">Nick Appleyard<o:p></o:p></span></p> </td> </tr> <tr style=""> <td style="border-style: none solid solid; border-color: -moz-use-text-color windowtext windowtext; border-width: medium 1pt 1pt; padding: 0in 5.4pt; width: 108.05pt;" width="144"> <p class="MsoNormal"><span style="">Committee member<o:p></o:p></span></p> </td> <td style="border-style: none solid solid none; border-color: -moz-use-text-color windowtext windowtext -moz-use-text-color; border-width: medium 1pt 1pt medium; padding: 0in 5.4pt; width: 108.05pt;" width="144"> <p class="MsoNormal"><b style=""><i style=""><span style="">John Bell<o:p></o:p></span></i></b></p> </td> <td style="border-style: none solid solid none; border-color: -moz-use-text-color windowtext windowtext -moz-use-text-color; border-width: medium 1pt 1pt medium; padding: 0in 5.4pt; width: 108.05pt;" width="144"> <p class="MsoNormal"><span style="">Chris Abbott<o:p></o:p></span></p> </td> <td style="border-style: none solid solid none; border-color: -moz-use-text-color windowtext windowtext -moz-use-text-color; border-width: medium 1pt 1pt medium; padding: 0in 5.4pt; width: 108.1pt;" width="144"> <p class="MsoNormal"><span style="">Vishy </span><span style="font-size: 9pt;">Sethuraman</span><span style=""><o:p></o:p></span></p> </td> </tr> <tr style=""> <td style="border-style: none solid solid; border-color: -moz-use-text-color windowtext windowtext; border-width: medium 1pt 1pt; padding: 0in 5.4pt; width: 108.05pt;" width="144"> <p class="MsoNormal"><span style="">Committee member<o:p></o:p></span></p> </td> <td style="border-style: none solid solid none; border-color: -moz-use-text-color windowtext windowtext -moz-use-text-color; border-width: medium 1pt 1pt medium; padding: 0in 5.4pt; width: 108.05pt;" width="144"> <p class="MsoNormal"><b style=""><i style=""><span style="">Viv Ash<o:p></o:p></span></i></b></p> </td> <td style="border-style: none solid solid none; border-color: -moz-use-text-color windowtext windowtext -moz-use-text-color; border-width: medium 1pt 1pt medium; padding: 0in 5.4pt; width: 108.05pt;" width="144"> <p class="MsoNormal"><span style="">Chris Abbott<o:p></o:p></span></p> </td> <td style="border-style: none solid solid none; border-color: -moz-use-text-color windowtext windowtext -moz-use-text-color; border-width: medium 1pt 1pt medium; padding: 0in 5.4pt; width: 108.1pt;" width="144"> <p class="MsoNormal"><span style="">Tony Sanford<o:p></o:p></span></p> </td> </tr> <tr style=""> <td style="border-style: none solid solid; border-color: -moz-use-text-color windowtext windowtext; border-width: medium 1pt 1pt; padding: 0in 5.4pt; width: 108.05pt;" width="144"> <p class="MsoNormal"><span style="">Committee member<o:p></o:p></span></p> </td> <td style="border-style: none solid solid none; border-color: -moz-use-text-color windowtext windowtext -moz-use-text-color; border-width: medium 1pt 1pt medium; padding: 0in 5.4pt; width: 108.05pt;" width="144"> <p class="MsoNormal"><b style=""><i style=""><span style="">Kashyap Nansi<o:p></o:p></span></i></b></p> </td> <td style="border-style: none solid solid none; border-color: -moz-use-text-color windowtext windowtext -moz-use-text-color; border-width: medium 1pt 1pt medium; padding: 0in 5.4pt; width: 108.05pt;" width="144"> <p class="MsoNormal"><span style="">Tony Sanford<o:p></o:p></span></p> </td> <td style="border-style: none solid solid none; border-color: -moz-use-text-color windowtext windowtext -moz-use-text-color; border-width: medium 1pt 1pt medium; padding: 0in 5.4pt; width: 108.1pt;" width="144"> <p class="MsoNormal"><st1:personname st="on"><span style="">Giresh Chugani</span></st1:PersonName><span style=""><o:p></o:p></span></p> </td> </tr> </tbody></table>Unknownnoreply@blogger.com7tag:blogger.com,1999:blog-31971371.post-69529592565903639812008-06-02T12:57:00.000-07:002008-06-02T12:58:14.451-07:00How to write your CVGuys here is a really short article that allows you to write a CV really easily.<br />Cheers.Unknownnoreply@blogger.com2tag:blogger.com,1999:blog-31971371.post-67776113122682785612007-10-19T08:23:00.000-07:002008-12-09T11:03:37.872-08:00GLADRAGS - RATIO ANALYSIS<a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="http://3.bp.blogspot.com/_twT_m0UbYYM/RxjNvuD6D-I/AAAAAAAAABk/Uts_xbeEU10/s1600-h/body_sm_ratios.jpg"><img style="margin: 0pt 0pt 10px 10px; float: right; cursor: pointer;" src="http://3.bp.blogspot.com/_twT_m0UbYYM/RxjNvuD6D-I/AAAAAAAAABk/Uts_xbeEU10/s200/body_sm_ratios.jpg" alt="" id="BLOGGER_PHOTO_ID_5123070795835903970" border="0" /></a><br /><a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="http://images.google.com.pe/imgres?imgurl=http://www.intmath.com/Numbers/beautyMath/body_sm_ratios.jpg&imgrefurl=http://www.intmath.com/Numbers/mathOfBeauty.php&h=314&w=300&sz=10&hl=en&start=11&sig2=ip1aCforw-WmefVAE9rbNQ&um=1&tbnid=j2cYW-mkIYtcEM:&tbnh=117&tbnw=112&ei=i8wYR73YD5GoeMnjqYgJ&prev=/images%3Fq%3DRATIOS%26svnum%3D10%26um%3D1%26hl%3Den%26client%3Dfirefox-a%26rls%3Dorg.mozilla:en-US:official%26sa%3DN"><img style="margin: 0pt 0pt 10px 10px; float: right; cursor: pointer; width: 200px;" src="http://images.google.com.pe/imgres?imgurl=http://www.intmath.com/Numbers/beautyMath/body_sm_ratios.jpg&imgrefurl=http://www.intmath.com/Numbers/mathOfBeauty.php&h=314&w=300&sz=10&hl=en&start=11&sig2=ip1aCforw-WmefVAE9rbNQ&um=1&tbnid=j2cYW-mkIYtcEM:&tbnh=117&tbnw=112&ei=i8wYR73YD5GoeMnjqYgJ&prev=/images%3Fq%3DRATIOS%26svnum%3D10%26um%3D1%26hl%3Den%26client%3Dfirefox-a%26rls%3Dorg.mozilla:en-US:official%26sa%3DN" alt="" border="0" /></a><br /><span style="font-family:arial;"><span style="font-weight: bold;">GROSS PROFIT</span><br />Gross Profit / Sales Turnover x 100 (expressed as a percentage)<br />2004: 640 / 2590 x 100 = 24.7%<br />2006: 575 / 2650 x 100 = 21.7%<br /><br /><span style="font-weight: bold;">NET PROFIT</span><br />Net Profit / Sales Turnover x 100 (expressed as a percentage)<br />2004: 300 / 2590 x 100 = 11.5%<br />2006: 200 / 2650 x 100 = 7.5%<br /><br /><span style="font-weight: bold;">RETURN ON CAPITAL EMPLOYED</span><br />Operating Profit / Capital Employed x 100 (expressed as a percentage)<br />2004: 300 / 1380 x 100 = 21.7%<br />2006: 200 / 1585 x 100 = 12.6%<br /><br /><span style="font-weight: bold;">CURRENT ASSET RATIO</span><br />Current Assets / Current Liabilities (expressed as a ratio)<br />2004: 1185 / 675 = 1.75 : 1<br />2006: 985 / 600 = 1.64 : 1<br /><br /><span style="font-weight: bold;">ACID TEST RATIO</span><br />Current Assets - Stock / Current Liabilities (expressed as a ratio)<br />2004: 1185 - 475 / 675 = 1.05 : 1<br />2006: 985 - 550 / 600 = 0.725 : 1<br /><br /><span style="font-weight: bold;">TRADE COLLECTION PERIOD</span><br />Debtors / Sales x 365 (expressed in days)<br />2004: 410 / 2590 x 365 = 57 days<br />2006: 325 / 2650 x 365 = 45 days<br /><br /><span style="font-weight: bold;">GEARING</span><br />Long term Liabilities / Capital Employed x 100 (expressed as a percentage)<br />Gearing can’t be calculated as Long term liabilities are not shown.<br /><br />From all the figures above we can see that Gladrags overall financial situation is worse in 2006 than in 2004. Gross Profit shows what proportion of of turnover is left after costs of production have been paid. Although there have been more sales the profits have diminished. This could be due to economic conditions such as inflation or the cost of production increasing.<br />Net profit margin shows what proportion of turnover is left after all costs, including overheads have been deducted. As in the gross profit it has diminished. Costs of production should be analysed.<br />ROCE is taken from both the balance sheet and the profit and loss account. This figure shows the profit in the year against the money invested in the company. Almost a 10% drop is very worrying indeed,.<br />The acid test ratio, which is a short term ratio, analyzing current assets and liabilities , is particularly worrying because in the liabilities exceed their assets. They need to sort this problem out immediately. Without being able to compare gladrags account with other companies it is difficult to establish whether the ratios and percentages are healthy or unhealthy in comparison with other companies.<br /><br /></span>Unknownnoreply@blogger.com3tag:blogger.com,1999:blog-31971371.post-65515985919368683412007-10-01T19:36:00.000-07:002008-12-09T11:03:38.073-08:00Gladrags - the word according to Andrea Solano<a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="http://2.bp.blogspot.com/_twT_m0UbYYM/RwGvIOD6D9I/AAAAAAAAABc/7wj6z9X9gjM/s1600-h/Gladrags_complete.gif"><img style="cursor: pointer;" src="http://2.bp.blogspot.com/_twT_m0UbYYM/RwGvIOD6D9I/AAAAAAAAABc/7wj6z9X9gjM/s200/Gladrags_complete.gif" alt="" id="BLOGGER_PHOTO_ID_5116563207417892818" border="0" /></a><br />just click on it and it grows.... man.....Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-31971371.post-19324139341190660482007-05-17T06:43:00.000-07:002007-05-17T07:57:22.106-07:00Gladrags is coing to town<a href="http://im.rediff.com/movies/2006/apr/11poster1.jpg"><img style="float:right; margin:0 0 10px 10px;cursor:pointer; cursor:hand;width: 200px;" src="http://im.rediff.com/movies/2006/apr/11poster1.jpg" border="0" alt="" /></a><br />CLICK ON THE TITLE TO DOWNLOAD YOUR COPY OF THE CASE STUDY<br /><br />Check back here for potential questions on the case.<br /><br />Thanks and goodluckUnknownnoreply@blogger.com0tag:blogger.com,1999:blog-31971371.post-72653939547731324002007-05-15T09:40:00.000-07:002007-05-15T09:49:36.273-07:00Glossary of Command Words Part Two - SUBJECT SPECIFIC COMMAND TERMS<a href="http://www.silentmajority.co.uk/eurorealist/HMQLetter/images/kitchener.jpg"><img style="float:right; margin:0 0 10px 10px;cursor:pointer; cursor:hand;width: 320px;" src="http://www.silentmajority.co.uk/eurorealist/HMQLetter/images/kitchener.jpg" border="0" alt="" /></a><br /><br /><br /><br />Advise: Offer suggestions/recommendations for a potential course of action.<br />Example: Advise the human resources manager on the use of both monetary and non-monetary rewards to improve staff motivation at XYZ Ltd.<br /><br />Apply: Use an idea, principle or theory in relation to a problem or issue.<br />Example: Applying Maslow’s motivation theory, suggest a new rewards package for employees of company X.<br /><br />Calculate: Give a precise numerical answer.<br />Example: Calculate the acid test ratio for company X in 2008.<br /><br />Classify: Arrange or order by class or categories.<br />Example: Classify the range of products sold by line range and mix.<br /><br />Comment: Write an explanation of, or commentary on, the information given in relation to a problem or issue.<br />Example: Comment on the profitability, liquidity and efficiency of the firm.<br /><br />Complete: Add missing information/data.<br />Example: Complete the critical path diagram by calculating the earliest starting time and latest finishing time for each activity.<br /><br />Construct: Present a variety of information in a diagrammatic or tabular form.<br />Example: Based on the information given, construct a break-even chart for company X.<br /><br />Formulate: Express precisely, clearly and in a systematic manner the relevant concept(s) or argument(s).<br />Example: Formulate an appropriate promotional mix for company X.<br /><br />Interpret: Use knowledge and understanding to explain and, where appropriate, draw inferences from a given situation, problem or issue.<br />Example: (Calculate and) interpret the value of the sales variance for XYZ Ltd.<br /><br />Outline: Give a brief explanation and/or summary of the issues, principles, or arguments stated in the question.<br />Example: Outline two advantages and disadvantages of working from home.<br /><br />Prepare: Put given data or information into a suitable business format.<br />Example: Prepare a cash-flow forecast for company X for January, February and March 2010.<br /><br />Recommend: Present an advisable course of action with appropriate supporting evidence/reasons, in relation to a given situation, problem or issue.<br />Example: Recommend a suitable growth strategy for company X.Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-31971371.post-4586086991674672952007-05-14T20:19:00.000-07:002008-12-09T11:03:38.201-08:00HOW THE STOCK MARKET WORKS<a href="http://1.bp.blogspot.com/_twT_m0UbYYM/Rkkm2orn2VI/AAAAAAAAAAU/WS2seosQW_M/s1600-h/Bull.jpg"><img id="BLOGGER_PHOTO_ID_5064621976030009682" style="FLOAT: right; MARGIN: 0px 0px 10px 10px; CURSOR: hand" alt="" src="http://1.bp.blogspot.com/_twT_m0UbYYM/Rkkm2orn2VI/AAAAAAAAAAU/WS2seosQW_M/s200/Bull.jpg" border="0" /></a> The stock market is a creature in and of itself. At times it makes sense and at other times, no one can explain why it acts the way it does. What is clear is that, over the long run, the stock market will climb and climb faster than almost any other traditional investment. With that said, there are also moments (that sometimes last years) when the value of the stock market gets out of whack with the underlying companies and with the economy.<br /><br /><strong>HOW THE STOCK MARKET WORKS</strong><br /><br />The stock market is driven by supply and demand. The number of shares of stock dictates the supply and the number of shares that investors want to buy dictates the demand. It's important to understand that for every share that is purchased, there is someone on the other end selling that share (or vice versa). The stock market is really just a big, automated superstore where everyone goes to buy and sell their stock. The main players in the stock market are the exchanges. Exchanges are where the sellers are matched with buyers to both facilitate trading and to help set the price of the shares. The primary exchanges are the Nasdaq, the New York Stock Exchange (NYSE), all of the ECNs (electronic communication networks) and a few other regional exchanges like the American Stock Exchange and the Pacific Stock Exchange. Years ago, all of the trading was done through the traditional exchanges (like the NYSE, American and Pacific Exchanges) but now almost all of the trading is done through the Nasdaq, which uses ECNs and thousands of other firms with access to the Nasdaq to facilitate trading.<br /><br />Here's an example of one of the many ways that the stock market works:<br /><br />You open an account with E*Trade. You send E*Trade a check for $1,000. E*Trade deposits the check into a trading account that is listed under your name. You log onto E*Trade and place an order to buy 100 shares of a stock in Company A, which is currently trading at $5. E*Trade uses it's network to tell the Nasdaq and all of it's related networks that there is demand for 100 shares of Company A's stock. The Nasdaq finds someone who is willing to sell 100 shares of Company A and, instantaneously, they execute the trading of stock between you and the person selling the shares. The trade information is sent to a clearinghouse where the information is processed and the shares will now be registered to you. Basically, the clearinghouse will designate 100 shares of Company A to E*Trade and E*Trade will designate those 100 shares as yours. The actual stock certificates are typically held "in street name" and never really need to exchange hands (although you could request that the stock certificates be transferred to your name).<br /><br />In a nutshell, that's how the stock market works. The stock market is really just like any other marketplace - it facilitates the exchange of goods between interested parties and works to reduce distribution costs and set prices.<br /><br /><strong>HOW STOCKS ARE VALUED</strong><br /><br />Stocks have two types of valuations. One is a value created using some type of cash flow, sales or fundamental earnings analysis. The other value is dictated by how much an investor is willing to pay for a particular share of stock and by how much other investors are willing to sell a stock for (in other words, by supply and demand). Both of these values change over time as investors change the way they analyze stocks and as they become more or less confident in the future of stocks. Let me discuss both types of valuations.<br /><br />First, the fundamental valuation. This is the valuation that people use to justify stock prices. The most common example of this type of valuation methodology is P/E ratio, which stands for Price to Earnings Ratio. This form of valuation is based on historic ratios and statistics and aims to assign value to a stock based on measurable attributes. This form of valuation is typically what drives long-term stock prices.<br /><br />The other way stocks are valued is based on supply and demand. The more people that want to buy the stock, the higher its price will be. And conversely, the more people that want to sell the stock, the lower the price will be. This form of valuation is very hard to understand or predict, and is often drives the short-term stock market trends.<br /><br /><strong>WHY THE STOCK MARKET IS A GOOD INVESTMENT (IN THE LONG TERM)<br /></strong><br />It’s all about risk and return, and because your money is at more risk in the stock market than if you park it in a savings or CD (by the way, the money you invest in a CD is probably reinvested by the company offering the CD), the potential return is higher. It’s true that the gyrations in the stock market can cause both large losses and large gains, but if your investment time horizon is long enough, these short-term fluctuations will result in relatively high returns. It is generally accepted, that the average long term return from investing in stocks is 10-12%. This is much higher than the average CD or savings rate of 4-6%.<br /><br />WHY THE STOCK MARKET GETS OUT OF WHACK WITH REALITY<br /><br />Over the long term, the stock market is driven by underlying economic, financial and global growth. But in the short run, the market is driven by simple greed and fear, which are dictated by human emotions. During periods of prosperity, the stock market often rises faster than underlying earnings. During tough economic times, political uncertainty, and low consumer confidence, the stock market often performs worse than the underlying fundamentals predict.<br /><br /><strong>RECOMMEND WAYS TO INVEST IN THE STOCK MARKET</strong><br /><br />Don’t try to time the market.<br />As tempting as it is to try, it is not possible to time the stock market. People have written millions of pages of research on this topic and NO ONE has ever found a legitimate way to determine its trends.<br /><br />Use cost averaging.<br />By buying stocks on a periodic basis (like once a paycheck, once a month or even once a year), you will always be buying at an average price. If you try to time the market, you may be buying at a high or low valuation.<br /><br />Take taxes into account.<br />When you buy stocks, try to hold them for more than one year so you get taxed at the long term capital gains rate, which is currently 18%. If you sell your stock before one year, you will be taxed at your ordinary income tax rate, which is almost always higher than 18%, sometimes twice as high.<br /><br />. Put as much as you can into these tax deferred investments.<br /><br /><strong>Diversify your investments.<br /></strong><br />Don't just invest in stocks. It is better if you diversify your investments into other asset classes including real estate (a house), cash (savings account or CD) and maybe even bonds. That way, if one asset class really under performs, you will have some exposure to the better performing assets.<br /><br /><strong>Diversify your stocks (mutual funds).<br /><br /></strong>When investing in the stock market, don't load up on just one or two stocks. Diversify your investments across many stocks. If your portfolio is not large enough to buy 15 or more different stocks, you should consider purchasing one or more mutual funds to ensure diversification.<br /><br /><br />WITH THANKS TO LAUREN CRAWFORDUnknownnoreply@blogger.com0tag:blogger.com,1999:blog-31971371.post-83055974187280348942007-05-14T13:56:00.000-07:002007-05-14T14:40:22.938-07:00SIX QUESTIONS TO ASK YOURSELF BEFORE MAKING AN INVESTMENT.1. Am I willing to take a smaller return in exchange for a smaller risk?<br />2. Am I willing to take a greater risk in exchange for a greater?<br />3. Will I spend time about worrying about whether my investment is safe?<br />4. Am I depending on the investment to fund a known future expense?<br />5. Can I afford to lose all the money I am investing?<br />6. Do I have enough information about the investment to make an informed decision.Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-31971371.post-43468804891170724092007-03-09T07:12:00.000-08:002007-03-09T08:19:14.275-08:00Exam Practice - Model Answer P.12<a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="http://tbn0.google.com/images?q=tbn:xo3UVHJTWmE56M:http://www.precisionmarketing.co.uk/Assets/GetAsset.aspx%3FliAssetID%3D288841"><img style="margin: 0pt 0pt 10px 10px; float: right; cursor: pointer; width: 200px;" src="http://tbn0.google.com/images?q=tbn:xo3UVHJTWmE56M:http://www.precisionmarketing.co.uk/Assets/GetAsset.aspx%3FliAssetID%3D288841" alt="" border="0" /></a><br /><br /><br /><br />Name: Julian Walter <br />Exam Practice: Doing your business in public<br />Date: 09/03/07<br /><br />1. Q.Explain what is meant by privatisation. (2)<br />A. Privatisation is the sale of public sector organizations to the private sector. An example of this would be the sale the National electricity company Electro Peru to Chilean private investors.<br />(ALWAYS GIVE EXAMPLES)<br /><br />2.Q. In what sector of <span style="font-weight: bold;">industry</span> would you put railtrack?(2)<br /><div style="text-align: justify;"> A. Railtrack belongs to the private sector, as in the text it says 'some experts arguing it should have remained under state control, which in other words means it used to belong to the public sector and was run by the government. (JUSTIFY YOUR ANSWERS, BACK UP WHAT YOU SAY, SHOW THE EXAMINER WHAT YOU UNDERSTAND)<br /></div><br />3.Q. What are Public-Private Partnerships?<br /><div style="text-align: justify;"> A. PPP's are partnerships between the government and one or more companies from the the private sector. They are set up inorder to add funding to expensive, generally national, projects. An example of this would be the construction of the Trans-American Interoceanica from Brazil to Peru, which is being built by the Peruvian government and Brazilian private roadbuilders. (ALWAYS GO THE EXTRA MILE IN ANSWERING YOUR QUESTIONS)<br /><br />4.Q. Explain how a rail operator might attempt to add value to its products.<br />A. A rail operator might add value by looking to provide a more comfortable service, with better seats. They could offer free drinks or magazines for the customers to read. They might also want to provide high class food in the buffet car. It is important that the customer perceives that they are receiving value for money and that the people working within the company are providing value added services.<br /><br />5.Q. What might the advantages and potential drawbacks of selling Royal Mail to the private sector?<br />A. If the Royal Mail is privatised then there will obviously be both advantages and disadvantages. I will begin the potential advantages first. Firstly there will be an incentive to make the company more efficient as the company will then be profit orientated. Investors will have to make it more efficient, so hopefully customers will receive their post more quickly. From a customers point of view, with the arrival of competition, prices should hopefully be brought down in price.<br />Drawbacks could include the removal of essential yet loss making services that were previoulsy arranged by the Rail Mail. As has happened in privatisation, the price of the service may actually increase. Shareholders interests will now become more important than before because they, the private investors, will be looking to get a return on their investment.<br />In conclusion there are many advantages and disadvantages but in my opinion if the Royal Mail is to progress with the current trend in global business then it would probably be a good idea to privatise as they will become more compeitive and might be in danger of being overtaken by more efficient companies such as DHL.<br /><br />TRY AND GIVE A BALANCED ANSWER, ALWAYS COUNT THE NUMBER OF POINTS IN THE QUESTION.<br />A GOOD RULE OF THUMB IS THAT YOU SHOULD MENTION AT LEAST ONE PIECE OF INFORMATION PER TWO POINTS.<br />THIS SHOULD HELP YOU IN THE FUTURE<br /></div>Unknownnoreply@blogger.com2tag:blogger.com,1999:blog-31971371.post-14667923736155207782007-03-08T10:14:00.000-08:002007-05-15T09:40:05.714-07:00Glossary of Command Words Part OneStudents. in Business as in any subject you are learning you need to understand what certain academic words mean. If you can understand them then this will allow you to answer the question more completely or on the other hand not answer the question in such detail as you may have thought.<br />Here are a list of the words that you will see timea nd time again in your exams and preparation for the IB. Really Really understand these words and you will find that the academic universe will not seem so big. I broke it down into two parts so as not to bore the socks off you or me.<br /><br /><br />Analyse: Break down in order to bring out the essential elements, structure, any underlying assumptions and any interrelationships involved.<br />Example: Analyse the impact of external opportunities and threats on the business strategy of company A.<br /><br />Compare: Describe two (or more) situations and present the similarities between them.<br />Example: Compare the benefits of adopting LIFO with those of FIFO.<br /><br />Contrast: Describe two (or more) situations and present the differences between them.<br />Example: With reference to the impact on profit, contrast the FIFO method of stock valuation with the LIFO method of stock valuation.<br /><br />Define: Give a clear and precise meaning of a given word, term or concept.<br />Example: Define the term “stakeholder”.<br /><br />Describe: Present the characteristics of a particular topic.<br />Example: Describe company X’s corporate culture.<br /><br />Discuss: Offer a considered and balanced review of a particular topic. Opinions or conclusions should be presented clearly and supported by empirical evidence and sound argument.<br />Example: Discuss how the introduction of an employee share-ownership scheme could affect motivation for employees of company X.<br /><br />Distinguish: Make clear the differences between two or more concepts/terms.<br />Example: Distinguish between variable costs and fixed costs.<br /><br />Evaluate: Make an appraisal by weighing up the strengths and limitations of different evidence and arguments.<br />Example: Evaluate the option of accelerating company X’s overseas development through the use of franchising or joint ventures.<br /><br />Examine: Consider an argument or concept in a way that uncovers the assumptions and interrelationships of the issue.<br />Example: Examine company X’s present marketing approach in the light of changes in the external environment.<br /><br />Explain: Describe, giving reasons.<br />Example: Explain why company X has changed its pricing strategy.<br /><br />Identify: Recognize and state briefly a distinguishing fact or feature.<br />Example: Identify two reasons why the owner has chosen a particular method of investment appraisal.<br />Justify: Provide evidence to support or defend a choice, decision, strategy or course of action.<br />Example: Justify your reasons for introducing an extension strategy for product X.<br /><br />To what extent: Evaluate the success or otherwise of an argument or concept. Opinions and conclusions should be presented clearly and supported with empirical evidence and sound argument.<br />Example: To what extent was the marketing strategy of company X successful?Unknownnoreply@blogger.com7tag:blogger.com,1999:blog-31971371.post-44595921232841193832007-03-08T08:05:00.000-08:002008-12-09T11:03:45.811-08:00INTERNAL ASSESSMENT CHECK LIST<a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="http://2.bp.blogspot.com/_twT_m0UbYYM/RfBinf3aDWI/AAAAAAAAAAM/P6CPchok8Xw/s1600-h/100_1192.JPG"><img style="margin: 0pt 0pt 10px 10px; float: right; cursor: pointer;" src="http://2.bp.blogspot.com/_twT_m0UbYYM/RfBinf3aDWI/AAAAAAAAAAM/P6CPchok8Xw/s200/100_1192.JPG" alt="" id="BLOGGER_PHOTO_ID_5039636413735898466" border="0" /></a><br /><span style="font-family:arial;">Your assignment should check with the following information:<br />You have each of these marked off perfectly your teacher should give you 20 out of 20.<br />If you follow everything to the letter, the teacher has no option but to give you the marks<br />It's all about rubrix, our lives are all about rubrix. Can <span style="font-weight: bold;">you fit in this box????</span><br /><br /><span style="font-weight: bold;">RESEARCH</span><br /><br />1. TOPIC RELEVANT TO PRESCRIBED LIST<br />2. IS THERE A RELEVANT RESEARCH QUESTION?<br />3. IS IT CLEAR AND FOCUSED?<br />4. IS THE WRITTEN ASSIGNMENT SET IN THE CONTEXT OF A REAL ISSUE OR PROBLEM?<br />5. HAVE ISSUES OF CONFIDENTIALITY AND ETHICS BEEN DISCUSSED?<br />6. IS THE RESEARCH RELEVANT TO THE RESEARCH QUESTION?<br />7. IS THERE SUFFICIENT BACK GROUND DATA?<br /><br /><span style="font-weight: bold;">B: CHOICE AND APPLICATION OF BUSINESS THEORY TOOLS AND TECHNIQUES, IS THERE EVIDENCE OF:<br /><br /></span>1. A GOOD CHOICE OF EXAMPLES<br />2. EFFECTIVE APPLICATION FOR THE ANALYSIS<br /><br /><br /><span style="font-weight: bold;">C: ANALYSIS & EVALUATION</span><br /><br />1. IS THERE EVIDENCE OF PROBING ANALYSIS AND EVALUATION<br />2. IS THE INTEGRATION OF IDEAS AND ISSUES: A)LOGICAL; B)COHERENT;<br />C)ORGANIZED<br />3. IS THERE EVIDENCE OF CRITICAL AND REFLECTIVE THINKING?<br /><br /><br /><span style="font-weight: bold;">D: CONCLUSIONS AND RECOMMENDATIONS<br /><br /></span>1. ARETHECONCLUSIONS AND RECOMMENDATIONS CLEAR<br />A) CLEAR?<br />B) CONSISTENT WITH THE EVIDENCE PRESENTED?<br />C) DIRECTLY RELEVANT TO THE RESEARCH QUESTION?<br />2. ARE ANY UNANSWERED QUESTIONS FULLY ACKNOWLEDGED WITH PROPOSALS FOR FUTURE ACTION?<br /><br /><span style="font-weight: bold;">E: OVERALL IMPRESSION</span><br />1. IS THE ASSIGNMENT IN THE REQUIRED FORMAT (INCLUDING WORD LIMIT 1000 -1500)<br />2. ARE THERE APPENDICES?<br />3. IS THE INFO USED IN THE APPENDICES APPROPRIATE TO THE WRITTEN ASSIGNMENTS<br />4. IS REFERENCING ACCURATE CONSISTENTLY USED AND IN A RECOGNIZED FORMAT?<br />5. IS THE WRITTEN ASSIGNMENT PRESENTED TO A HIGH STANDARD?<br />6. IS THERE EVIDENCE OF:<br />COMMITMENT AND ENGAGEMENT<br />DEPTH OF UNDERSTANDING AND FLAIR<br />and finally<br />HAS THE RESEARCH QUESTION BEEN ANSWERED?<br /><br /></span>Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-31971371.post-1172854241747591782007-03-02T08:31:00.000-08:002007-03-02T09:02:31.056-08:00Welcome Back IB1 & IB2 Business<a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="http://s162.photobucket.com/albums/t245/julianwalter3/?action=view¤t=100_0577.jpg"><img style="margin: 0pt 10px 10px 0pt; float: left; cursor: pointer; width: 200px;" src="http://s162.photobucket.com/albums/t245/julianwalter3/?action=view¤t=100_0577.jpg" alt="" border="0" /></a><br /><span style="font-weight: bold;">Good day to you reading this blog for the first time and welcome back those who have before</span><br />I will quickly go over what the aim is here.<br />I would like you to consider this as another tool in which Mr W may aid you in achieving the maximum grade in the subject, most poular in the school.<br />I will be going over the syllabus as we go through the course.<br /><br /><span style="font-weight: bold;">IB1</span><br /><br />In IB1 we are discussing an introduction to Business, and what is added value?<br />Why do you pay more for a pair of Levis jeans than a pair from topytop.<br />Remember, what I told you about in class, this year we will not only be learning Business, but also English as well as how to Learn how to Learn. <span style="font-weight: bold;">BUSINESS ENGLISH LEARNING</span> is how I want you to think of the course. If your English improves then your understanding of the course improves and the ability to think more clearly also. Also, if you understand why you are learning then you can understand the actual value of the lesson your teacher is hopefully giving you.<br /><br />Please feel free to send me comments and suggestions on ways in how we can improve the course itself, I am always open to suggestions as its your time as well as mine in the classroom so don't forge that.<br /><br />I gave you the outline of the course this term, start thinking about a product you want to set up and sell at the Kermesse which is the same time as last year. End of June, Fathers day time.<br />I want to do better than last year, and there is no reason that we can't.<br /><br /><span style="font-weight: bold;">IB2</span><br /><br />Hi chaps and chappesses<br /><br />Good to have you back from your long holiday. This is your big year to show what geniuses you are to the whole world. You have the opportunity to do this so don't waste it.<br />This is the way the first 4 weeks of the term are going to work. Half the week (on Mondays)we will be doing the internal, each week you will receive a commitment grade, indicating the level of work you have done for the assignment. The first week you have an excuse after that there is none. <span style="font-weight: bold;">If you bring nothing new to your assignment, your grade will be a 5.</span>..... The more you contribute the higher your grade will be.<br /><a href="http://ibbizstudies.blogspot.com/2006/07/internal-assessment-layout-and-rubric.html">Internal Assessment Requirments </a><br />here will direct you to what you should be looking at.<br />Failure to finish the final draft by the end of March ensures you will not be taking the IB exam.<br />Make Mr W a happy man and complete your work, the earlier the better I can correct it and give it back to you for corrections.<br />Remember to organize yourself well this year, and learn to get loads of sleep, as you will need it in the runup to the exams in November.<br />Suerte!<br />Mr WUnknownnoreply@blogger.com0tag:blogger.com,1999:blog-31971371.post-1156367047735168682006-08-23T13:56:00.000-07:002006-08-23T14:11:36.303-07:00TIPS ON HOW TO WRITE THE BEST EXTENDED ESSAYS IN BUSINESS<a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="http://photos1.blogger.com/blogger/4800/3154/1600/bard.gif"><img style="margin: 0pt 10px 10px 0pt; float: left; cursor: pointer;" src="http://photos1.blogger.com/blogger/4800/3154/320/bard.png" alt="" border="0" /></a><br /><ol> <li>· Supervisors should advise candidates to choose a question that will enable them to carry<br />out personal research rather than summarising various secondary sources.<br /></li> <li>Supervisors should discourage candidates from using very long bullet-pointed lists. </li> <li>Supervisors should advise candidates not to throw away marks unnecessarily on the abstract and presentation criteria. </li> <li>Supervisors should advise candidates to choose focused titles, which would allow more of the business criteria to be met. </li> <li>Supervisors should ensure that candidates identify relevant theoretical aspects before starting their research and ensure that candidates concentrate on one specific theory or a very small range of theories. </li> <li>Supervisors should encourage candidates to use focused, simple research questions. </li> <li>Supervisors should encourage candidates to base their research question on a problem or issue that is currently being faced, instead of one that has already been addressed. </li> <li>Supervisors should advise candidates - before they begin their extended essays - that the research question should be based upon an organisation that is willing to cooperate and provide information and, if the data is too difficult to obtain, an alternative research question should be considered. </li> <li>SWOT analyses should be used and opportunities should be external. </li> </ol>Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-31971371.post-1156344890640109782006-08-23T07:53:00.000-07:002006-08-23T07:54:50.653-07:00If Meditation is difficult to come byAugust 23<br /><br />If you find that meditation does not come easily in your city room,<br /><br />be inventive and go out into nature. Nature is always an unfailing<br /><br />fountain of inspiration. To calm your mind, go for a walk at dawn in<br /><br />the park, or watch the dew on a rose in a garden. Lie on the ground<br /><br />and gaze up into the sky, and let your mind expand into its<br /><br />spaciousness. Let the sky outside awaken a sky inside your mind.<br /><br />Stand by a stream and mingle your mind with its rushing; become one<br /><br />with its ceaseless sound. Sit by a waterfall and let its healing<br /><br />laughter purify your spirit. Walk on a beach and take the sea wind<br /><br />full and sweet against your face. Celebrate and use the beauty of<br /><br />moonlight to poise your mind. Sit by a lake or in a garden and,<br /><br />breathing quietly, let your mind fall silent as the moon comes up<br /><br />majestically and slowly in the cloudless night.Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-31971371.post-1156284316002623352006-08-22T15:01:00.000-07:002006-08-22T15:05:16.023-07:00Most Expensive Cities to live in<table border="1" cellpadding="0" cellspacing="2" width="300"> <tbody><tr><td bg="" style="color: rgb(170, 170, 170);" width="70"><div align="center"> <span style=""><span style=";font-family:Arial;font-size:85%;" ><b>Rank</b></span></span></div> </td> <td bg="" style="color: rgb(170, 170, 170);" width="150"> <div align="center"> <span style=""><span style=";font-family:Arial;font-size:85%;" ><b>Cities</b></span></span></div> </td> <td bg="" style="color: rgb(170, 170, 170);" width="70"> <div align="center"> <span style=""><span style=";font-family:Arial;font-size:85%;" ><b>Index</b></span></span><span style=""><span style=";font-family:Arial;font-size:85%;" ><b><br /> </b></span><span style="font-family:Arial;"><b> (incl rents)</b></span></span></div> </td> </tr> <tr> <td width="70"> <div align="center"> <span style="font-family:Arial;">1 </span></div> </td> <td bg="" style="color: rgb(170, 170, 170);" width="150"><span style="font-family:Arial;"><b>London</b></span></td> <td width="70"><span style="font-family:Arial;">105.5</span></td> </tr> <tr> <td width="70"> <div align="center"> <span style="font-family:Arial;">2 </span></div> </td> <td bg="" style="color: rgb(170, 170, 170);" width="150"><span style="font-family:Arial;"><b>New York</b></span></td> <td width="70"><span style="font-family:Arial;">100.0</span></td> </tr> <tr> <td width="70"> <div align="center"> <span style="font-family:Arial;">3 </span></div> </td> <td bg="" style="color: rgb(170, 170, 170);" width="150"><span style="font-family:Arial;"><b>Oslo</b></span></td> <td width="70"><span style="font-family:Arial;">94.6</span></td> </tr> <tr> <td width="70"> <div align="center"> <span style="font-family:Arial;">4 </span></div> </td> <td bg="" style="color: rgb(170, 170, 170);" width="150"><span style="font-family:Arial;"><b>Tokyo</b></span></td> <td width="70"><span style="font-family:Arial;">93.4</span></td> </tr> <tr> <td width="70"> <div align="center"> <span style="font-family:Arial;">5 </span></div> </td> <td bg="" style="color: rgb(170, 170, 170);" width="150"><span style="font-family:Arial;"><b>Zurich</b></span></td> <td width="70"><span style="font-family:Arial;">87.3</span></td> </tr> <tr> <td width="70"> <div align="center"> <span style="font-family:Arial;">6 </span></div> </td> <td bg="" style="color: rgb(170, 170, 170);" width="150"><span style="font-family:Arial;"><b>Copenhagen</b></span></td> <td width="70"><span style="font-family:Arial;">86.3</span></td> </tr> <tr> <td width="70"> <div align="center"> <span style="font-family:Arial;">7 </span></div> </td> <td bg="" style="color: rgb(170, 170, 170);" width="150"><span style="font-family:Arial;"><b>Geneva</b></span></td> <td width="70"><span style="font-family:Arial;">85.8</span></td> </tr> <tr> <td width="70"> <div align="center"> <span style="font-family:Arial;">8 </span></div> </td> <td bg="" style="color: rgb(170, 170, 170);" width="150"><span style="font-family:Arial;"><b>Dublin</b></span></td> <td width="70"><span style="font-family:Arial;">84.3</span></td> </tr> <tr> <td width="70"> <div align="center"> <span style="font-family:Arial;">9 </span></div> </td> <td bg="" style="color: rgb(170, 170, 170);" width="150"><span style="font-family:Arial;"><b>Chicago</b></span></td> <td width="70"><span style="font-family:Arial;">82.2</span></td> </tr> <tr> <td width="70"> <div align="center"> <span style="font-family:Arial;">10 </span></div> </td> <td bg="" style="color: rgb(170, 170, 170);" width="150"><span style="font-family:Arial;"><b>Los Angeles</b></span></td> <td width="70"><span style="font-family:Arial;">80.6</span></td></tr></tbody> </table><br />Most Expensive Cities. The index is based upon measurements of 95 goods and 27 services. London being the most expensive.<br />Lima is the 68th Mostexpensive city in the world.<br />What doyou think makes Lima acheaper city and what makes it a more expensive city?<br />Think about travel, food etc.<br /><table border="1" cellpadding="0" cellspacing="2" width="300"> <tbody><tr><td width="70"><div align="center"> <span style="font-family:Arial;">68 </span></div> </td> <td bg="" style="color: rgb(170, 170, 170);" width="150"><span style="font-family:Arial;"><b>Lima</b></span></td> <td width="70"><span style="font-family:Arial;">35.9</span></td></tr></tbody> </table><br />Below are a list of the various things that are measured when establishing the cost of living in cities<br /><table align="center" width="80%"> <tbody><tr><td width="40%"><p><span style=";font-family:Verdana,Helvetica;font-size:78%;" ><strong>Food at Home</strong></span></p></td> <td width="40%"> <p><span style=";font-family:Verdana,Helvetica;font-size:78%;" ><strong>Domestic Services</strong></span></p></td></tr> <tr> <td> <p><span style=";font-family:Verdana,Helvetica;font-size:78%;" ><strong>Alcohol and Tobacco</strong></span></p></td> <td> <p><span style=";font-family:Verdana,Helvetica;font-size:78%;" ><strong>Utilities</strong></span></p></td></tr> <tr> <td> <p><span style=";font-family:Verdana,Helvetica;font-size:78%;" ><strong>Household Supplies</strong></span></p></td> <td> <p><span style=";font-family:Verdana,Helvetica;font-size:78%;" ><strong>Food away from Home</strong></span></p></td></tr> <tr> <td> <p><span style=";font-family:Verdana,Helvetica;font-size:78%;" ><strong>Health and Personal Care</strong></span></p></td> <td> <p><span style=";font-family:Verdana,Helvetica;font-size:78%;" ><strong>Transportation</strong></span></p></td></tr> <tr> <td> <p><span style=";font-family:Verdana,Helvetica;font-size:78%;" ><strong>Clothing and Footwear</strong></span></p></td> <td> <p><span style=";font-family:Verdana,Helvetica;font-size:78%;" ><strong>Sports and Leisure</strong></span></p></td></tr></tbody> </table><br /><br />Other aspects that will be measured, will be air travel, education, incomes.<br />Can you think of any others?Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-31971371.post-1156181220178279492006-08-21T10:18:00.000-07:002006-08-21T10:27:02.133-07:00GDP in Emerging Markets<a onblur="try {parent.deselectBloggerImageGracefully();} catch(e) {}" href="http://photos1.blogger.com/blogger/4800/3154/1600/TAB10.gif"><img style="margin: 0pt 10px 10px 0pt; float: left; cursor: pointer;" src="http://photos1.blogger.com/blogger/4800/3154/320/TAB10.png" alt="" border="0" /></a><br />GDP is Gross domestic product. For a region, the GDP is "the market value of all the goods and services producted by labor and property located in" the region, usually a country. It equals <a href="http://economics.about.com/library/glossary/bldef-gnp.htm">GNP</a> minus the net inflow of labor and property incomes from abroad.<br />What we can see here is how GDP has been changing in emerging markets, of which Peru is one. We can see that Peru will continue to grow. This is due to two main factors, firstly mining of which Peru has been a beneficiary of rising metal ore prices plus also the agricultural industry which has seen over 208% in the last year alone.Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-31971371.post-1156175101249646392006-08-21T08:36:00.000-07:002006-08-21T08:45:01.260-07:0013 FINANCIAL TIPS FOR STUDENTS1. Use Credit Cards Sparingly.<br />2. Pay ALL Credit Cards in Full.<br />3. Get the best deal on a checking account.<br />4. Keep Track of your spending.<br />5. Set a Limit on Entertainment.<br />6. Shop at second hand shops.<br />7. Keep an eye out for free money.<br />8. Get a part time job with tips.<br />9. Walk or ride - Don't drive.<br />10. Look out for Student discounts.<br />11. Don't eat out all the time.<br />12. Avoid tax on stupidity.<br />13. START SAVING.<br /><br />ENOUGH SAID.....<br />13.Unknownnoreply@blogger.com1tag:blogger.com,1999:blog-31971371.post-1155070408631483442006-08-08T13:52:00.000-07:002006-08-08T13:53:28.640-07:00Adverts for Teenagers NightmaresUnknownnoreply@blogger.com1tag:blogger.com,1999:blog-31971371.post-1154968844813492402006-08-07T09:33:00.000-07:002006-08-07T09:40:44.823-07:00Semester 3: First Week Homework for Business<span style="font-family: arial;">IB2: PAGE 201, BEATEN BY THE GERMANS AGAIN</span><br /> <br /> <span style="font-family: arial;">IB1: PAGE 88, MARKS & SPENCER</span><br /> <br /> <span style="font-family: arial;">HANDIN DATE FIRST CLASS OF WEEK 2, BEGINNING 14th AUGUST 2006</span>Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-31971371.post-1154697183944609032006-08-04T06:03:00.000-07:002006-08-04T06:13:03.956-07:00Giving a Great Presentation<span style="font-family: arial;"></span><span style="font-family: arial;">Presentations are a vital part of business. It doesn’t matter if you are giving a presentation to 5 or 500 people, there are some basic ground rules which I am going to go through. If you apply the following to your presentations people will be impressed.</span><br /> <br /> <span style="font-family: arial; font-weight: bold;">1. Choose the right style</span><br /> <span style="font-family: arial;">Find out as much as possible about your audience before you give your presentation, forewarned is forearmed. What is the purpose of your speech? Is it formal or informal?</span><br /> <br /> <span style="font-family: arial; font-weight: bold;">2. Check the venue</span><br /> <span style="font-family: arial;">Make sure that all your equipment is working, is the projector working, does the microphone work. Go through your PowerPoint quickly to see if it all fits.</span><br /> <span style="font-family: arial;">Do you have a glass of water ready?</span><br /> <br /> <span style="font-family: arial; font-weight: bold;">3. Check your appearance</span><br /> <span style="font-family: arial;">Appearances go a long way with your audience. If you are scruffy it will detract from the quality of your presentation. Check your tie, shoes and general dress. </span><br /> <br /> <span style="font-family: arial; font-weight: bold;">4. Establish your precence</span><br /> <span style="font-family: arial;">Once you have been introduced, pause. Take a deep breath, look at the audience, make eye contact, and acknowledge their presence. Relax your body and stand tall. Smile!</span><br /> <br /> <span style="font-family: arial; font-weight: bold;">5. Establish who you are</span><br /> <span style="font-family: arial;">Explain the reason you are there. Confirm what the audience expects of you by explaining what you are going to speak about.</span><br /> <br /> <span style="font-family: arial; font-weight: bold;">6. Involve your audience</span><br /> <span style="font-family: arial;">Get the audience involved immediately with a visual aid or something unexpected. Taking attention away from yourself often helps with stage fright.</span><br /> <br /> <span style="font-family: arial; font-weight: bold;">7. Let your personality show</span><br /> <span style="font-family: arial;">Feelings not facts convince people. Show your emotions, your audience will appreciates that.</span><br /> <br /> <span style="font-family: arial; font-weight: bold;">8. Use positive body language</span><br /> <span style="font-family: arial;">Stand tall, don’t slouch, don’t play with your hair, tie or jewellery. Move around naturally and use your hands for emphasis. Use ordinary facial expressions and where appropriate, smile.</span><br /> <br /> <span style="font-family: arial; font-weight: bold;">9. Control your voice</span><br /> <span style="font-family: arial;">Project your voice through standing straight and breathing deeply. Speak clearly and more slowly than usual. Avoid hesitation and watch your speech mannerisms, avoid over-repetition of expressions and don’t’ ‘um’ or ‘er’.</span><br /> <br /> <span style="font-family: arial; font-weight: bold;">10. Build on your rapport with your audience</span><br /> <span style="font-family: arial;">Keep eye contact and play to your cheerleaders, keep your audience involved all the time.</span><br /> <br /> <span style="font-family: arial; font-weight: bold;">11. Introduce Humour</span><br /> <span style="font-family: arial;">If you are confident, use humour to lighten the mood, but don’t abuse anyone in the crowd.</span><br /> <br /> <span style="font-family: arial; font-weight: bold;">12. Face up to the unexpected</span><br /> <span style="font-family: arial;">Don’t be fazed by anything unexpected that happens, take it in your stride and use it to your advantage if you can.</span><br /> <br /> <span style="font-family: arial; font-weight: bold;">13. Improvise</span><br /> <span style="font-family: arial;">If the presentation is coming across as too dry, change your presentation a little to suit your audience.</span><br /> <br /> <span style="font-family: arial; font-weight: bold;">14. Conclude</span><br /> <span style="font-family: arial;">Be brief, and end on a high in tone, energy and content.</span><br /> <br /> <span style="font-family: arial; font-weight: bold;">15. Be positive when taking questions</span><br /> <br /> <br /> <span style="font-family: arial; color: rgb(51, 51, 255);">DO’S AND DON’TS</span><br /> <br /> <span style="font-family: arial; color: rgb(51, 102, 255);">DO:</span><br /> <span style="font-family: arial;">Be yourself</span><br /> <span style="font-family: arial;">Start and finish on time</span><br /> <span style="font-family: arial;">Use Handouts </span><br /> <span style="font-family: arial;">K.I.S.S……</span><br /> <br /> <span style="font-family: arial; color: rgb(51, 102, 255);">DON”T:</span><br /> <span style="font-family: arial;">Try to cover too much in your speech</span><br /> <span style="font-family: arial;">Use humour appropriately</span><br /> <span style="font-family: arial;">Use too much technology, it detracts from the message</span><br /> <br /> <br /> <span style="font-family: arial; color: rgb(153, 51, 153);">"Success - To laugh often and much; to win the respect of intelligent people and the affection of children; to earn the appreciation of honest critics and endure the betrayal of false friends; to appreciate beauty; to find the best in others; to leave the world a bit better, whether by a healthy child, a garden patch or a redeemed social condition; to know even one life has breathed easier because you have lived; this is to have succeeded."</span><br /> <span style="font-family: arial; color: rgb(153, 51, 153);">Bessie A Stanley (1803) Housewife</span><br /> <br /> <br /> <br /> <br /> <span style="font-family: arial;"> </span><br /> <br /> <br /> <br /> <span style="font-family: arial;"> </span>Unknownnoreply@blogger.com1tag:blogger.com,1999:blog-31971371.post-1154573981504352002006-08-02T19:58:00.000-07:002006-08-02T21:25:33.956-07:00The four things Peter Drucker, the world's most eminenent Business Guru, learnt in life:<div style="text-align: justify;">1. The first one, I call <span style="font-weight: bold;">Harry Truman's maxim</span>. Which I heard him say many times. If it has to be explained, it won't work. It will only work if it's so simple that everybody says it's obvious.<br /><br />2. And second, <span style="font-weight: bold;">say "please" and "thank you," manners matter</span>. They are the lubricating oil of human intercourse. They make it possible for people to work with one another.<br /><br />3. Third, one that applies to me, as a professional writer, but it applies to anybody. If a sentence doesn't gel, don't rewrite it. It's not that the sentence is not right, your thoughts are not clear or not thought through.<br /><br />4. And finally, <span style="font-weight: bold;">never ask who's right. Start out by asking what is right</span>. And you find that out by listening to dissenting, disagreeing opinions</div>Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-31971371.post-1154564223912922932006-08-02T17:07:00.000-07:002006-08-02T20:31:17.520-07:00SWOT Analysis - Example - Sungen Ltd<span style="font-weight:bold;">Strengths:</span><br /><br />• Solar equipment is a niche market in Australia.<br />• JIT(Just In Time) production method and hence minimum risk.<br />• Sungen Ltd estimates it has 65 % of the market.<br />• Desirable product range.<br />• Products produced per customers’ specification.<br />• Eco-friendly company image.<br />• Strong sales growth.<br />• Departmental specialists to carry out the specialist functions.<br /><br /><span style="font-weight:bold;">Weaknesses:</span><br /><br />• Unreliable suppliers.<br />• Demotivated employees.<br />• Conflicting management styles (Catherine & Tony)<br />• Unclear leadership.<br />• Delayed delivery.<br />• Weak financial situation (Negative gross profit margin, net profit margin and ROCE)<br />• Little working capital.<br />• Quality problems.<br />• <br /><br /><span style="font-weight:bold;">Opportunities:</span><br /><br />• Potential High market growth.<br />• Weak distribution channels.<br />• Market research says that 45 % of those questioned would consider fitting some sort of renewable energy generation system.<br />• Opportunity to enter new market segment.<br />• If the government accepts Sungen Ltd proposals (lines 88-90), it may lead to good business opportunity.<br />• Increasing consumers’ awareness (Global warming and rising energy prices)<br /><br /><span style="font-weight:bold;">Threats:</span><br />• Trade union is threatening strike action.<br />• Unstable state of economy.<br />• Housing prices are set to fall.<br />• Increasing inflation and decreasing GDPUnknownnoreply@blogger.com2tag:blogger.com,1999:blog-31971371.post-1154553184791044742006-08-02T11:40:00.000-07:002006-08-02T14:18:46.850-07:00SWOT: Everything you wanted to know about SWOT but you were too afraid to ask.....A SWOT Analysis is a great way to begin to analyse early stages of development and change in a business. It can also be used as a personal tool for self-development. It can help you decide where you might want to go in the future. <br /><br />SWOT stands for <br /><br />S = Strengths<br />W = Weaknesses<br />O = Opportunities<br />T = Threats<br /><br />Strengths and Weaknesses include the INTERNAL elements of the company.<br />Opportunities and Threats are the EXTERNAL factors affecting the company.<br /><br />PRO’S<br /><br />• Good Framework for identifying the above<br />• A simple framework for developing suitable strategies and tactics<br />• Assesses Core Capabilities of Businesses<br />• Provides evidence for Change<br />• Allows for people outside normal decision makers to participate<br /><br />CON’S<br /><br />• Can generate long lists<br />• Relies on descriptions rather than analysis<br />• Ignores prioritisation<br />• Can be overlooked or forgotten in further stages of development<br /><br />STRENGTHS<br /><br />Typical Strengths normally relate to public relations and perceptions, market share, or people. Other people strengths include:<br />• Happy, friendly, communicative staff<br />• Training and personal development<br />• Trusting company<br /><br />‘Organizational’ strengths include:<br />• Customer loyalty<br />• Capital investment<br />• Strong Balance Sheet<br />• Efficient systems and well-developed social responsibility<br /><br />WEAKNESSES<br /><br />This should not be used as an opportunity to be really critical about the situation, but to be a more honest appraisal of how things are going. Below are aspects that could be questioned:<br />• Poor communications<br />• Inadequate leadership<br />• Obstacles preventing growth<br />• Elements of the business that require strengthening<br />• Who is complaining?<br />• What are the weak links in the chain?<br />• Lack of new products or services<br />• Declining market for your business<br />• Poor competitiveness<br />• High prices<br />• Is the staff aware of the mission, objectives, and policies<br />• Absenteeism<br />• Absence of systems to monitor progress? <br /><br />OPPORTUNITIES<br /><br />This is where you need to analyze the socio-economic, political, environmental, and demographic factors. You might include:<br />• New markets<br />• New technology<br />• New legislation and government<br />• Preferential change in interest rates<br />• Increase in GDP, peoples spending power<br />• Growing popularity in your sector <br />• Population age<br />You will want to know how you can deal with these opportunities.<br /><br />THREATS<br /><br />This would be simply analysing the external market in reverse to the way you look at opportunities. All those mentioned above can have an inverse effect on your company or service. Other threats could include:<br />• Unemployment levels<br />• Political uncertainty<br />• Exchange rate fluctuations<br />You should consider worse case scenarios, i.e. in Peru for example, if terrorism returned to Peru.<br />An interesting point to consider is that opportunities and threats are very much challenges that can be perceived as either an opportunity or threat by the workforce and as a result, one can see how high moral is through this analysis.<br /><br />OBJECTIVES VERSUS SWOT<br /><br />Now you need to assess whether the SWOT ties in with the company objectives. You need to prioritize the list that the SWOT shows. Some things can be removed as not being relevant. Make sure that you take action on the SWOT analysis, otherwise it is a pointless, time consuming exercise.<br /><br />DO’S & DON’TS<br /><br />DO:<br /><br />• Be Analytical and Specific<br />• Record ALL thoughts and ideas<br />• Take a wide-ranging review of the external aspects<br />• Be selective in your final report<br /><br />DON’T:<br /><br />• Try to disguise weaknesses<br />• Merely list errors and mistakes<br />• Use the SWOT to blame other peoples mistakes<br />• Ignore the outcomes at the later stages of the planning processUnknownnoreply@blogger.com0tag:blogger.com,1999:blog-31971371.post-1154486563543517372006-08-01T19:37:00.000-07:002006-08-01T19:42:43.553-07:00Case Study Examination Techniques ContinuedRevise, revise revise – if you have revised properly then you will be more relaxed about the exam and you should therefore perform better. <br /><br />Make revision notes yourself and do not simply rely on your teacher’s handouts. <br /><br />Read the questions very carefully – many students answer a different question to the one set, so the examiner cannot apply the mark scheme to your answer. <br /><br />Take your time choosing your questions – do not rush into a question and then realise that you cannot answer the whole question. This will waste time and make you rush your answer. <br /><br />Write your answers in context. Your case study is based on a Electrical wholesale company. So when you answer questions always bear this in mind. E.g. If asked to write a marketing strategy for Sungen Ltd if must be specific to the company and not a strategy that can be used for any company. Use examples where you can. <br /><br />Write neatly and clearly – if the examiner cannot read your answer he will not be able to mark it. In your case this is very important.<br /><br />Draw large clear diagrams (be bold, brave and beautiful) – an examiner can only mark what he can read. Therefore a small cramped diagram will not gain many marks. Try and use a ruler and pencil and remember to label all the axes. <br /><br />Never cross an answer out. If you cross out an answer, the examiner will not mark it. Many times students cross out answers that are actually worth marks and begin new questions, which they then answer badly, and are worth less than the original answer.<br /> <br />Remember exam technique is an extremely important skill that should be practiced in the weeks before an exam. A student with a good exam technique will greatly improve their mark, and will usually out-perform a student who has simply spent their time ‘revising’. <br /><br />Always be aware of the marks available for each question and try to match your answer accordingly. A question worth 6 marks can not be answered in one or two sentences.Unknownnoreply@blogger.com0