Sports Direct Homework Feedback

Evaluate whether Sports Direct and its contractors would be more profitable treating their staff as an asset rather than a cost. [20]

Staff as an asset v's staff as a cost.

Definition of treating staff as an asset:

Staff will be valued because employers recognise that their efforts will make the organisation perform more effectively.

This might include:

Acceptable remuneration.

Reasonable holidays and pensions.

Training.

Job security.

Opportunities for promotion.

Opportunities to solve problems, work in teams and be creative

Staff as a cost:

An approach which has the aim of maximising profit (TR minus TC). 

In a business like Sports Direct the wage bill would be a significant cost.

Paying the minimum wage.

Using zero hours contracts.

Neglecting investment in training.

Having minimal 'employee rights'.

Why Sports Direct choose to treat staff as a cost:

It gives the business considerable flexibility to respond to customer demand. 

Workers can be told to come in or not to come in at very short notice. 

This is beneficial to the business because at very busy times in retail such as Black Friday or Christmas there can be plenty of people available in store to serve customers. 

People do not like waiting to be served so this will improve the customer experience and may lead to repeat business.

Also in the warehouse internet orders can be processed quickly. 

The benefit of this to Sports Direct is........

Also treating staff as a cost keeps the wage bill down.

As a consequence it allows Sports direct to maximise profits. 

These profits can be used to help the business grow or returned to the owners of the business (the shareholders). 

The benefits of using profits to help the business grow would be....

Treating staff as an asset.

Write a paragraph that is relevant to this business with at least two 'connectives'.

Recommendation:

In the short run treating staff as a cost has allowed the business to grow rapidly and become very profitable. 

This has been 'good' for the owners of the company. 

However in the long run......

Can you finish this concluding paragraph?

A/S Business Homework for 22.01.20

Click on the picture.

Evaluate whether Sports Direct and its contractors would be more profitable treating their staff as an asset rather than a cost. [20]

AS Business Homework for 10.12.19

AS Business Homework for 4th December

AS Business Homework for 19.11.19

Innocent Drinks Homework Feedback

1) Distinguish between quantitative and qualitative market research. Which method did Innocent use at the music festival? [4]

Excellent responses to this question. Well done.

2) Assess whether a more in depth approach to market research would have been appropriate before launching Innocent Drinks. [10]    

Definition: All of you provided a detailed and accurate definition. How will you remember these definitions for the exam?

1:

    

2:       

     3:

A more in depth or qualitative approach to market research would have been more appropriate for Innocent Drinks because of the obvious bias in asking peoples opinion at a music festival. People attending music festivals are not a true reflection of the population as a whole. This is important because the implications of giving up well paid jobs to start the business could be wide ranging for the Innocent Drinks entrepreneurs. The entire project may have failed if their recipes or pricing points were not acceptable with consumers.

As mothers are likely to be a targeted market segment it would have been appropriate to hold some focus group sessions to gather opinions about the smoothies, packaging and possible prices. This is important because business start ups are likely to have limited finances and cannot afford to waste money on unused or unsold stock. Although there would be an initial expense with holding a focus group, in the long run they will benefit from producing a product which will hopefully be in demand in the market place.

On the other hand, by taking the decision at the music festival using simple quantitative research the entrepreneurs were able to enter the market quickly. This was important because first mover advantage is a powerful advantage in business. The entrepreneurs were able to build a brand and become established in the minds of the consumer. This is important because it can lead to customer loyalty and repeat purchases. Also by relying on this simple research and launching the product it made it much more difficult for rival firms to enter the market. This was important because......                    

A/S Business Homework for 22.10.19

A Level Business  (Year 1)

Homework for 22.10.19

Assess whether the manufacturing process is the main way Tyrrells 'add value' to their potato snack. [10]

The following video may help: 

Homework for 8th October

Assess whether Free-From Ltd should continue to only produce in the niche market of allergen-free foods. [10]

Free-From Homework Feedback

Assess whether Free-From Ltd should continue to only produce in the niche market of allergen-free foods. [10]

Always start your answer with a definition.

A niche market is a small, specialized market for a particular product or service.

Yes:

Operating in a niche market could be seen as a low-risk strategy. 

The price of allergen-free food is up to 250% higher than similar standard products that contain gluten or dairy. 

This leads to better profit margins, which means it may not be risky as they’ll only need to sell a small number of products to break even. 

Moreover, the niche market of allergen-free goods is price inelastic, which means as they increase prices then there will be a proportionally smaller fall in sales. 

This is good, as if Free-From Ltd want to increase revenue they know they can increase the prices further. 

This makes it a much lower risk option than competing with the bigger companies in the mass market. 

On the other hand the fact Free-From Ltd only operates in a niche market could be considered a big risk. 

Due to the successful growth of the gluten-free market it has now attracted the attention of large firms such as Wall’s and Premier Foods. 

This is bad news for Free-From Ltd as these larger firms can utilise economies of scale on a massive level, which allows them to offer much cheaper prices, as buying in bulk lowers the average cost per unit. 

These savings can be passed on to customers, which makes the larger companies much more competitive in premium-priced markets.

This may lead customers away from Free-From Ltd, as cheaper alternatives that offer the same benefits would be an attractive proposition for customers.

This will decrease revenue and pose a major risk to the company. 

In conclusion, Free-From Ltd supplying the niche market is a risky decision to a relatively small extent.

Being in a niche market means they can charge prices up to 250% higher and this coupled with the fact that demand is price inelastic is the most important point that puts the business in a strong position. 

However, it depends on how cheap competitors like Wall’s and Warburtons will offer the products. 

If the competition increases then the benefits Free-From Ltd currently receives will surely go as prices are squeezed and demand becomes more price elastic.

Homework 3 for 1st October

Approved Foods Homework Feedback

Assess the importance of profit maximisation to a business like Approved Foods.

Profit maximisation is achieved when the difference between total revenue and total cost is at its greatest.

YES profit maximisation is important to a business like Approved Foods because.....  

Profits may have been used as a source of finance to expand from market trader to ‘the largest online retailer’.
↓ 
They may need to expand further as orders grow and may need profit to achieve this, rather than rely on bank loans, which incur interest. 
↓
Not having to pay interest gives more finance to spend within the business, perhaps for sourcing a wider range of food products to make the business more attractive to online customers.

Profit is a measure of success, therefore important for a new business to attract investors. 

On the other hand.....

Increased customer satisfaction and building a loyal customer base may be more important than profit maximisation, given that they have grown from a market stall to ’60,000 sq ft warehouse’.

↓

This will be particularly important if the business is faced with increased competition. 

↓

Satisfied customers are unlikely to shop elsewhere for these types of products and may infact tell other people about the business saving marketing costs.

Also, they are offering large discounts ‘ 60-70% on each shop’, so gross profit margins are likely to be small; sales revenue maximisation may be more important. 

There are high levels of competition in the food and drinks market and there has been an expansion in the number of shops selling discounted foods, therefore survival might be more important than profit maximisation.

Homework 2 for 24th September

A/S Business Homework 2: Franchising (Due Tuesday 24th September)

                   

  1.Visit: http://www.franchisedirect.co.uk/video/ or click on the picture below and choose two franchise opportunities from the ‘Start by Industry’ button on the left. 

Provide a brief description of the types of businesses being advertised.

  2. Visit: www.mollymaid.co.uk or click on the picture below:

    Assess the advantages and disadvantages of buying a Molly Maid franchise rather than starting up a cleaning business on your own.

[10 marks]

Start with a definition of ‘franchise’.

Identify two advantages and explain them in separate paragraphs. 

Now do the same for disadvantages.

Remember to make your answer relevant to Molly Maid.

Finish with an overall conclusion where you make a judgement based on the previous points. 

This homework is available on Ian’s A/S Business Blog, access this through Moodle or Google it.

A/S Business Studies Homework 2 Feedback

Molly Maid

Discuss the advantages and disadvantages of buying a Molly Maid franchise rather than starting up a cleaning business on your own. 

Always start with a definition:

A franchise is business based upon the name, logos and trading method of an existing, successful business.

To obtain a franchise requires the payment of an initial fee and the payment of royalties based on a percentage of revenues.

Advantage 1:

Molly Maid is a well known brand in the home cleaning industry.

The benefit of this is…

It will hopefully be easier to build a customer base. 

This is because Molly Maid are responsible for marketing and running a professional website.

The consequences of this are.......

You explain the consequences of the points you make. 

Look at the picture below. 

Think about the arrows as the development of a chain of analysis. 

Phrases for analysis here.

Advantage 2:

Customers are likely to be more comfortable dealing with a well established company.

A consequence of this is…………..

The benefit of this would be........

Disadvantage 1:

The need to pay an initial fee and royalties.

This may be a disadvantage because….

Disadvantage 2:

The actions of another franchisee may damage the reputation of the brand.

For example, if a franchisee mixes the wrong cleaning products and a customer is poisoned by the chemical reaction.

This will be a disadvantage because….

The consequences of this may be.......

Evaluation / Judgement

This is where you give your opinion. 

Looking back at the question which of the points you made do you think was the most important and why? 

Phrases for evaluation here.

A/S Business Homework 1 for 17.09.19

Homework 1: Dragons Den

For Tuesday 17th September

Click on the picture and play the video of Levi Roots making his 'pitch' to the dragons.
Or visit: http://www.bbc.co.uk/programmes/p00b3zk4 

‘Assess whether it was Levi Roots passion and enthusiasm which convinced the Dragons' that he would be a successful entrepreneur’.

Your written answer should be at least one side of A4 paper.

Start with a brief definition of 'entrepreneur’.

Your answer needs to be 'two sided'.

Start your opposing paragraph with 'On the other hand.....'

For a conclusion, which of the points you have identified is the most important and why?

This homework question is available on Ian's A/S Business Blog. Available through Moodle or Google it.

A/S Business Studies Homework 1 Feedback

‘Assess whether it was Levi Roots passion and enthusiasm which convinced the Dragons' that he would be a successful entrepreneur’.

Always start with a definition.

'An entrepreneur is someone who is willing to take risks in starting a new business, usually with the aim of making a profit.'

Your answer needs to be two sided and always in the context of the case study - in this case Levi Roots.

So.....

An entrepreneur should be passionate about their business idea.
↓
Levi was clearly passionate as he had written a song about the brand and he had made his sauce, together with his family, for a number of years. He also talked in a way that showed his real enthusiasm for the product. This is important because he needed financial and other support in developing his business. 
↓
By being passionate it was much more likely that he would gain the support he needed.
↓
Lenders and other investors are going to be more supportive if they feel that the entrepreneur has a real commitment to their business idea.
↓
By being passionate and communicating a real enthusiasm for his product Levi will be in a much stronger position than someone who has difficulty explaining a potential business idea.

'On the other hand' other entrepreneurial skills are useful:

An entrepreneur such as Levi needs to be creative.

Can you add four arrows?

Final paragraph: Which is the most important point?

Why?

Here you are demonstrating evaluation.

AS Business Homework for 06.12.17

Our 'Feel Great' mission

At Abokado, we’re on a mission to lead happier and healthier lives. Are you on board?

A message from Mark & Lindsay —

Abokado was born out of a dream. A dream of being masters of our own destiny. A dream of creating something we could be proud of. And a vision to change the way we and other people ate. Here’s our story…

It was 2002 and I had piled on the pounds while working long hours in the City, while Lindsay had got disillusioned with her work (and fed up with letting out my trousers!).

We’d recently got married and thought ‘to hell with it’, let’s go see the world. We sold our flat, got a couple of round-the world tickets and hit the road.

Half way through our trip we landed in Sydney and were amazed to find it crammed with great value sushi, juice and noodle bars. We ate nothing else for the next week.

We thought back to our boring mayonnaise-filled sandwich lunches in London and thought - why can’t we bring this amazing food back home?

So we bid farewell to the Southern Hemisphere and returned to the UK. After many late nights, some sweat, blood and more than a few tears, we proudly opened our first shop in Covent Garden in the spring of 2004.

Our first shop had a kitchen the size of a postage stamp, no AC and a basement that regularly flooded. It was boiling hot in the summer, freezing in the winter and seemed to be a magnet for all the petty thieves in London. But for the next two years it was home. We began to build a loyal following for our unique range of food and the crazy dream started to turn into reality.

We now have around 30 shops spread across the City and West End and are supported by a passionate and hard working team of whom we’re extremely proud.

Our plan is to continue growing the business by doing what we have always done – continually focusing on quality, value and staff training through a comprehensive staff induction programme.

Our vision is to make our Feel Great menu accessible to more and more people so everyone can lead happier and healthier lives.

Thanks for your support and welcome on board!

Mark & Lindsay Lilley

Adapted from: http://abokado.com/mission/

Assess whether Abokado should only rely on a comprehensive staff induction programme for the training needs of their staff. [10]